Milling & Baking News - March 27, 2007 - 4

Contents

MARCH 27, 2007 Vol. 86, No. 2

NEWS FEATURE

NEWS Comment

Story on Page 21

Grocer urges bakers
to aim for consumer
'mind share'

Many markets
to track in
sweeteners
Polyol growth and ethanol demand
add volatility to sweetener prices.

13

AIPC amends credit facility,
retires some debt

American Italian Pasta Co. now has until Dec.
31 to file fiscal 2005 and fiscal 2006 financial
statements with no increased interest charges.
The company also retires $10 million of debt.

Florida bound
Baking professionals prepare to
travel to Orlando for I.B.I.E. 2007

Story on Page 34

DEPARTMENTS
9
12
14
16
39
39
40
41
44
45
56
62

Editorial
Business
Financial Results
Data
Merchandising
Washington
International
Education and Research
Industry Activities
People
Supplier Innovations
Archive

COMPANIES IN THIS ISSUE
ACH Food Companies ............................................56
Altria Group, Inc. ....................................................12
American Italian Pasta Co. .....................................13
Archer Daniels Midland Co......................... 12, 22, 33
Briess Malt & Ingredients Co..................................28
Canada Bread USA.................................................12
Caravan Ingredients ...............................................33
Cargill ....................................................................21
ConAgra Foods, Inc. .................................................1
Corn Products International, Inc.............................21
Country Home Bakers, Inc. .....................................39
CSM n.v. .................................................................40
DSM ......................................................................56
4 / March 27, 2007

Milling & Baking News

18

C.P.I. for baked foods,
cereal jumps 4%

The Consumer Price Index increase in February
marks the largest year-over-year increase in more
than 10 years. The index for Cereals and Bakery
Products stands at 219% of the 1982-84 average.

19

National average price
of wheat rises 12c

The preliminary national average price received
by farmers for all wheat in February is $4.66 per
bu, up 12c from January and $1 more than in
February 2006. The price for winter wheat is up
9c from January.

39

I.B.C. has 'Happy Feet' in
Hostess promotion

Interstate Bakeries Corp. and Warner
Home Video team up to feature Emperor
Penguins from the animated film "Happy
Feet" on Hostess products Twinkies, Cup
Cakes and HoHos.

41

Study: Whole grain cereal
reduces heart disease risk

Physicians who eat a whole grain breakfast cereal
seven or more times per week are less likely by
28% to develop heart failure than physicians who
never eat such cereal, according to a new study.

Ebro Puleva ............................................................15
Flowers Foods, Inc. .................................................34
The Freedonia Group, Inc........................................21
General Mills, Inc. ....................................................1
George Weston Foods Ltd. .....................................40
Good Stuff Bakery ..................................................40
Goodman Fielder Ltd. .............................................40
Gum Technology.....................................................33
IAWS Group P.L.C. ..................................................15
Interstate Bakeries Corp. .................................. 12, 39
Kaeser Compressors, Inc.........................................56
Kerry Ingredients ....................................................27
Mastertaste ............................................................27
Menu Foods, Inc. ....................................................12
MGP Ingredients, Inc. .............................................12

Advice to focus on capturing "mind share,"
not "market share," was one of the highlights
of last week's meeting of the American Bakers
Association. Held at the La Quinta Resort in
the California desert, the convention heard a
highly regarded former retail food executive,
Allan S. Noddle of Royal Ahold, caution against
"fixating on market share." He pointed out
this approach does nothing to solve baking's
longtime problem of convincing consumers
grain-based foods are nutritious. The solution
lies, he declared, in stepping up the Grain
Foods Foundation effort to win "mind share."
Mr. Noddle's advice to bakers about
industry strategy came as part of a
presentation in which he predicted further
consolidation among food retailers. Covering
the total universe of supermarkets, drug stores,
convenience stores,dollar stores andWal-Mart,
he examined the fast-changing landscape and
how it should best be addressed by bakers
and the baking industry. His warning against
market share fixation came just as several
large consumer goods companies came near
to failing after acknowledging the mistake of
strategy focused on market share without
regard for margins.
This grocer's support for the Grain
Foods Foundation reinforced the report
to the A.B.A. telling of great success in
media coverage and progress in improving
consumer attitudes. A highly cheering note
for the convention was provided in the
Foundation's disclosure that it is fleshing
out a future program that is meant to put it
"on the offensive," and perhaps marginalize
those who would disparage the nutritional
benefits of grain-based foods. MBN

National Starch Food Innovation ...................... 30, 56
Ocean Spray Ingredient Technology Group.............33
Pasta USA ..............................................................13
Perten Instruments .................................................56
Philadelphia Macaroni Co. .....................................13
P.L. Thomas.............................................................33
Risoil S.A. ...............................................................12
River Mill Bakeries .................................................40
Rondo Doge ...........................................................56
Sara Lee In-Store Bakery ........................................13
Sensient Colors Inc. ................................................33
SK Food International.............................................33
SPI Polyols ..............................................................21
Tasty Baking Co......................................................15
Tate & Lyle P.L.C. ....................................................24
bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - March 27, 2007

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