News

Harlowton group buys cereal firm

A development group in Harlowton is planning to buy Cream of the West, the Billings-based cereal
maker, and move operations to Harlowton.

BY BECKY BOHRER
Associated Press

Wheatland County Ag Development has signed a letter of intent to buy the company, Richard Moe, a
member of the nine-person group, said Wednesday. Members hope to complete the deal by the end of the year
and begin operations in Harlowton early in 2003.
"It’s not a big business but it’s a positive step," said Moe, a county commissioner. "We think it will lead to
more businesses."

Cream of the West has been in Billings since 1915 and has just three full-time employees. Its cereals are
made from grains grown in the state and the company has expanded its product line and distribution area
under the leadership of Bud Leuthold. But, after 15 years, Leuthold said he has taken the business as far as he
cares to and is ready to retire.

"I don’t know why they couldn’t easily double it in size," he said. "It’s the kind of business where you just let
your imagination roam. I have no qualms about sending it up there."
The development group has not yet decided how the project will be organized – if it will be a producer
cooperative, for example – and funding sources are still being looked at, officials said. But the parties involved
said they expected the purchase to go through as planned.

"We don’t expect any snags," Moe said. "We looked with our accountant at cash flow projections and don’t
foresee real big problems raising enough money to get us underway."
Officials are considering whether to build a new building in Harlowton or remodel an old flour mill, said
group member Dan DeBuff. Work would include packing and processing.
"The psychological effect is going to be considerable," DeBuff said. "And the fact that a group like this can
get together to make this happen is going to be a significant morale booster."

Leuthold, who had not advertised the business for sale, said several potential buyers expressed interest in
buying, both from in Montana and elsewhere. Ag Development, he said, stepped forward first.
DeBuff said he and other group members are determined to help revitalize their community. The group has
held meetings about once a week since last January, brainstorming and planning.

"These small communities are not going to be ‘saved’ by some big company coming in with a lot of
employees. They’re going to be saved by small projects, small companies, a few jobs at a time and building on
that," DeBuff said.

Copyright 2002 Associated Press. All rights reserved. This material may not be published, broadcast,
rewritten, or redistributed.

Copyright © The Billings Gazette, a division of Lee Enterprises

http://www.billingsgazette.com/index.php?id=1&display=rednews/2002/08/29/build/local/72-cereal.inc

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