Milling & Baking News - January 15, 2008 - 4

Contents

January 15, 2008 Vol. 86, No. 23

NEWS FEATURE

NEWS Comment

Story on Page 1

Share prices in 2007
reflect impact of
dramatic ingredient
price surge

10

Recession threat
offers chance to
regain stature

Harlan Bakeries to acquire
Krispy Kreme facility

Harlan Bakeries, Inc. agrees to buy a mix
manufacturing and distribution plant from
Krispy Kreme Doughnuts, Inc. for $11.8 million,
which Krispy Kreme will use to pay down debt.

16
ADM joins effort to study
use of tropical plant in
biofuels
Story on Page 14

DEPARTMENTS
7 Editorial
10 Business
18 Industry Activities
19 Financial Results
20 Corn Wet Milling
30 Washington
32 People
33 Ingredient Week
41 Supplier Innovations
46 Archive

COMPANIES IN THIS ISSUE
Ahold ........................................29
Alexandria Flour........................29
American Italian Pasta Co. ........26
American Sugar Refining, Inc. ...28
Archer Daniels Midland Co. ... 14, 22
Associated British Foods ...........26
AWB Ltd. ...................................28
Bayer CropScience AG ...............14
Bunge Ltd..................................22
Bunge Oils, Inc. .........................14
The Campbell Soup Co. .............26
Cargill .......................................41
Carr's Milling Industries P.L.C. ...28
Cereal Ingredients, Inc...............41
The Coca-Cola Co. .....................20
ConAgra Foods, Inc. ..................26
CSM n.v. ....................................28
Daimler AG................................14

4 / January 15, 2008

Representatives of the Grain Foods Foundation
and the March of Dimes ring the closing bell of
the New York Stock Exchange in celebration of
Folic Acid Awareness Week.

18

Defining 'natural' not
on F.D.A. radar screen

The Sugar Association and the American Bakers
Association voice their disappointment when
a Food and Drug Administration official says
defining natural is not a priority.

19

I.B.C. sustains $13.4
million loss in period

Interstate Bakeries Corp. loses $13,401,611
in the four weeks ended Nov. 17, which
compares with a loss of $18,059,734 in the
previous four-week period. Sales drop 5% to
$207,187,594.

31

A.B.A. calls farm bill
a missed opportunity

The U.S. Senate turns back the clock on federal
farm policy by ignoring food inflation in its
farm bill, says Robb MacKie, president and
chief executive officer of the American Bakers
Association.

Danisco A/S ...............................29
DKSH .........................................41
DSM ..........................................29
Ebro Puleva S.A. ........................29
Egyptian Starch .........................29
E.I. du Pont de Nemours and Co....14
Einstein Noah
Restaurant Group, Inc. ...........32
Ethnic Cuisine Ltd......................28
First Baking ...............................29
Flour Mills Nigeria P.L.C. ...........29
Flowers Foods, Inc. ....................23
G.C. Hahn & Co. ........................28
General Mills, Inc. ...............26, 32
George Weston Ltd....................26
Goodman Fielder Ltd. ................28
GraceLinc ..................................41
GrainCorp Ltd............................28

Milling & Baking News

N.Y.S.E. closing bell part
of foundation effort

Granoleo S.A. ............................29
Greencore Group.......................28
Greggs P.L.C. .......................19, 28
Groupe Danone S.A. ............26, 28
Grupo Bimbo S.A. de C.V. ..........23
Harlan Bakeries, Inc...................10
IAWS Group ..............................28
ITW Food Equipment Group ......10
Indofood ...................................29
Interstate Bakeries Corp. .....19, 24
J&J Snack Foods Corp................26
The Kellogg Co. .........................26
Kerry Group ...............................28
Kraft Foods Inc. ...................24, 28
Krispy Kreme Doughnuts Inc....10, 24
Main Street Ingredients.............32
Maple Leaf Foods, Inc................23
Marks & Spencer .......................28

Grain-based foods as well as the entire
food industry have little to show that would
contravene the rising volume of forecasts
America will experience a recession in
2008. While unit volume of baking has held
up well in the face of climbing retail prices,
pronounced pressure on margins due to
soaring ingredient and other input prices
has made the current period extremely
difficult. Experiencing conditions not unlike
those of a severe business downturn is the
lot of many food manufacturers as well as
their equally hard-pressed suppliers.
Negatives weighing on the economy
- credit crunch, housing price weakness,
slow job growth - are cited as causes
of slower consumer spending. The latter
has been the business mainstay. The most
immediate impact is expected in the
second and third quarters, when demand
for autos, electronics and other hard goods
is predicted to be faced with a fairly sharp
setback. As a result, the stock market has
begun this year with the sharpest declines
ever registered in its opening week.
Based on history, it is wrong to assume
such a cutback by consumers would
be felt in grain-based foods. While the
industry recently showed less resistance
to recessions than in the mid years of the
last century, this doesn't mean individual
companies as well as the industry at large
are lacking in resources or abilities needed
to counter an economic downturn. It looks
increasingly certain 2008 will provide the
opportunity to regain the positives that
once made grain-based foods unique. MBN

Mars Inc. ...................................14
McCormick & Co., Inc. ...............29
MGP Ingredients, Inc. ..........14, 25
Middle and West
Delta Flour Co. .......................29
Molinos Rio Plata ......................29
Natur Research Foods, Inc. ........41
Nestle S.A..................................29
Nippon Flour Milling .................29
Nisshin Seifun ...........................29
Nissin Food Products .................29
North Cairo Flour ......................29
Northern Foods P.L.C. ................26
Ohaus Corp. ..............................41
Panera Bread Co........................25
The Peerless Group....................10
Penn Traffic Co...........................12
PepsiCo, Inc. ........................20, 23

PureCircle..................................41
Quinenco...................................29
Ralcorp Holdings, Inc.................23
Sainsbury, P.L.C..........................28
Sara Lee Corp. .....................18, 26
Seaboard Corp...........................26
South Cairo & Giza Flour Mills ...29
S&M NuTec, L.L.C. .....................14
Tate & Lyle P.L.C. .......................28
Tereos of France ........................28
Tesco .........................................28
Tiger Brands Ltd. .......................29
Turano Baking Co. .....................18
Unilever.....................................28
Verenium Corp. .........................14
Yamazaki Baking.......................29

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Milling & Baking News - January 15, 2008

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