Food Business News - August 30, 2011 - (Page 17)

civil penalties included in the F.S.M.A., Mr. Levitt said there are fees included that may have a significant impact on some companies. “The new rule is the first inspection is on Uncle Sam and the second inspection is on you,” he said. “So your goal is to never have a second inspection caused by the first. It is very simple.” The re-inspection process will be triggered if, during the initial inspection, the F.D.A. finds issues that require official action. The F.D.A. recently published a notice that stated its fee schedule will include an hourly rate of $225 per hour. “It is not uncommon for F.D.A. to send in a team and it is not uncommon for them to take four or five days,” Mr. Levitt said. “It is always common for them to have to travel there and back. If they have to take samples they will send them to the lab. Those lab people work by the same hourly rate. “Well, if you just do the math for a week of four people for five days that is $28,000. Add in the lab time and you are adding $10,000, $15,000 or $20,000. So for a re-inspection you could suddenly find yourself with a $25,000 to $50,000 bill.” FBN General Mills, Batter Blaster win G.M.A. innovation awards or more in sales for the development, launch and use of its oat hulls biomass burner at its Fridley, Minn., facility The biomass unit burns oat hulls left over from the milling process to produce about 90% of the steam needed to heat the plant and produce oat flour used in making Cheerios and other products. According to the G.M.A., the burner nearly eliminated the need for natural gas at the plant for steam and heat beginning in December 2010. “Our biomass burner addressed two compelling business needs — saving money and reducing our footprint on the environment for years to come,” said Ken Powell, chairman and c.e.o. of General Mills. “We’ve sharpened our focus on building sustainability into every step, from seed to spoon, and this project is one of the most recent and visible successes from this journey. Accomplishments such as the biomass burner inspire and challenge all General Mills employees to dream big when developing creative solutions to make General Mills an even more sustainable company.” John Hellweg, manufacturing manager at the Fridley facility, said that almost a third of the oats General Mills take in end up as hulls and that the company has spent many years trying to determine the best use for them. “We went through a whole line of ideas in getting from there to here,” he said. “We looked at plastics, other agriculture uses and its use as a feed stuff. But they never had too much value until the price of energy started to go up.” Through testing General Mills learned that oat hulls have a high BTU value, almost as high as bituminous coal. “We started looking at how we can use oat hulls as an energy source to replace natural gas in the refining industry,” Mr. Hellweg said. “It is used by a steel company here in Minnesota and we started working with them, but shipping costs were high. Then we started looking at (natural) gas costs in Fridley.” As with any innovation, the back story is complicated. A lot of infrastructure work went into developing the biomass burner and integrating it into the Fridley facility’s energy supply system, Mr. Hellweg said. “We had to look at things like emissions permitting, we had to tie the biomass system into the present steam system and integrate it with our natural gas system,” he said. The capital outlay for the biomass burner was $3.3 million, according to General Mills, and, as a result, the only natural gas the company uses at the facility is when the biomass burner is shut down for inspection and maintenance, which occurs once per year. COLORADO SPRINGS, COLO. — General Mills, Inc. and Batter Blaster received the 2011 C.P.G. Award for Innovation and Creativity from the Grocery Manufacturers Association and its Associate Member Council. The award, which was presented at the 2011 G.M.A. Executive Conference held at The Broadmoor hotel in Colorado Springs, is given annually to companies that have demonstrated creativity, innovation, and have made a significant impact on the industry knowledge base. “This award celebrates industry creativity and innovation, and these winners have proven to be exemplary in both,” said Pamela G. Bailey, president and chief executive officer of the G.M.A. “General Mills and Batter Blaster have found creative ways to provide consumers with healthier, more sustainable products at a time when consumers are demanding both innovation and value during today’s challenging economy.” The G.M.A. said it received a record number of entries and evaluated applications in two manufacturer divisions — those from companies with total sales of less than $3 billion and those from companies with $3 billion or more in sales. Pancake batter in a can Based in Austin, Texas, and founded in 2007, Batter Blaster won the award for companies with total sales of less than $3 billion with Batter Blaster’s Organic Original Pancake and Waffle Batter. The product, served in a patent-pending, pressurized can, has changed the morning breakfast routine for families across the board, the G.M.A. said. “We’ve certainly learned that innovation takes guts — it’s not the path of least resistance,” said Sean O’Connor, founder and c.e.o. of Batter Blaster. “It requires massive changes in consumer behavior and the education and awareness to gain that mindshare. But innovation can change even the oldest of categories. Readymade pancake mix has been around since 1889. Batter Blaster is still shaking up that category more than 120 years later, adding new consumers and growth to a typically traditional category.” Speaking with Food Business News, Mr. O’Connor elaborated on some of the Burning oat hulls Minneapolis-based General Mills received the award for companies with $3 billion August 30, 2011 FOODBUSINESS NEWS ® 17

Table of Contents for the Digital Edition of Food Business News - August 30, 2011

Food Business News - August 30, 2011
Web Contents
Editorial - Food itself plays major role in demand for food
Private equity group acquires Minnesota-based candy company
F.D.A. seeks more comments on phytosterols
MegaMex acquires Fresherized Foods
Nestle updates nutrition labeling system
OpenGate Capital to acquire Dean Foods facility
Walgreens launches Nice! store brand
Hormel Foods earnings up 15% in quarter
With charges, Heinz income down 6% in quarter
Consumers dissatisfi ed with frozen meal portions
Kraft cutting coffee prices 6%
California Pizza hires G.J. Hart as president, c.e.o.
Accountability at the heart of new food safety law
General Mills, Batter Blaster win G.M.A. innovation awards
Rowland acquisition boosts Smucker earnings
Coca-Cola, partners to invest $4 billion in China
July milk production up 0.8%
Washington - ' Fit for Life' bill targets childhood obesity
Soaring egg prices, egg products still rising
Health and Wellness - From digestive health to weight management
Ingredient Innovations - Tropical assistance
New Product Trends - Natural, low-calorie refreshment
New Food Products
INGREDIENT MARKET TRENDS - Statistics Canada forecasts record canola crop
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News
Feature - Hormel Foods earnings up 15% in quarter
Feature - Natural, low-calorie refreshment
Feature - Soaring egg prices peaking, egg products still rising

Food Business News - August 30, 2011