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    Success Story - A leading tomato processing company protects their natural gas exposure with Pricelock

    Company enters second decade of price protection as it becomes an important component of their business strategy


    Processing tomato paste is highly energy intensive and requires large amounts of natural gas to operate steam boilers. For Ingomar, natural gas is one of its largest operating costs. Because Ingomar negotiates fixed prices upfront with many of its clients, it's crucial for the company to protect its margins by reducing its exposure to natural gas price fluctuations.

    Ingomar began price protecting a small portion of its natural gas spend in 2000. As Ingomar experienced the benefits of hedging firsthand, the company steadily increased its protection to cover a significant majority of its natural gas budget. "Hedging minimizes our risk and has become an important tool for us," said Danny Green, Director of Human Resources, who oversees Ingomar's commodities risk management activities.

    Over the years, Ingomar has worked with several risk management experts. When some of these key experts joined Pricelock, Danny and his team wanted to work with Pricelock to protect their natural gas exposure "because of the prior success we've had with these experts." Danny further commented, "These experts have consistently provided timely guidance that has been reliable–enabling us to focus on growing our business."

    Pricelock worked closely with Danny and his team to structure and execute a protection plan that best aligned with the company's business goals and risk objectives. "Overall, I am very happy that we are working with Pricelock," said Danny. "We are now looking to Pricelock to help us minimize our exposure to other energy fuels that we use in our operations."
    Ingomar Packing Company
    Ingomar Packing Company
    Based in Los Banos, California, Ingomar is the fifth largest tomato processing company in the world. The company produces tomato paste and diced tomatoes for leading, multinational retail brands.
    "Hedging minimizes our risk and has become an important tool for us."
    Danny Green
    Oversees commodities risk
    Ingomar


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