Milling & Baking News - May 31, 2011 - 10

Business 

Flowers Foods completes cash acquisition of Tasty Baking

THOMASVILLE, GA. — Flowers Southwest and introduce our Nature’s Foods, Inc. has completed its cash Own soft variety breads through purchase of Tasty Baking Co. for $175 Tasty’s distribution area in the heart million, which includes a payoff of of the Northeast Corridor. With the addition of Tasty’s distribution Tasty debt. The closing of the transaction, plans for which were first Flowers board declares three-for-two stock split announced by the companies April 11, resulted in the THOMASVILLE, GA. — The board of directors of Flowers Foods Inc. has declared a three-fordelisting of Tasty Baking shares two split of the company’s stock by means of a 50% stock dividend. The board also increased on Nasdaq. With the purchase, the annual cash dividend by 10c, which equates to a 12.5% increase over the previous dividend Tasty has become a whollyrate. Both the stock split and the dividend are payable on June 24, 2011, to shareholders of owned subsidiary of Flowers record on June 10, 2011. and will be integrated into the Following the split, Flowers said its shareholders will own three shares for every two shares company’s direct-store delivery they held on the record date and their quarterly dividend rate will be 15c per share, or 60c per segment. share on an annualized basis. Flowers said the acquisition “The board believes Flowers Foods is in an excellent position to reward our shareholders “creates a larger business with a with an increased dividend, allowing our investors to continue participating in the company’s complementary portfolio of high success over the long term,” said George E. Deese, chairman and chief executive ofﬁcer. “In quality bakery products and addition, the stock split will increase the liquidity of our stock and attract new shareholders.” deepens Flowers’ penetration Mr. Deese said Flowers is conﬁdent in the future and remains committed to its strategy of of the estimated $4 billion snack investing cash to build value for its shareholders. cake category.” “We anticipate delivering good results in 2011 and in the years to come, even as we “We extend a warm welcome manage through near-term volatility in commodity markets and continued pressure from to Tasty’s team members and a weak economy,” he said. “Our business continues to generate substantial cash ﬂow that independent sales distributors,” funds dividends to our shareholders, capital improvements, and share repurchases, as well said George E. Deese, chairman as growth through market expansion and strategic acquisitions. Our balance sheet is strong and chief executive officer of and our operating strengths are evident. We announced a new $500 million credit facility that Flowers. “Working together we substantially improves our capital structure. This provides a solid debt capital base and source can bring the Tastykake brand of liquidity as we continue to execute our new ﬁve-year growth plan.” MBN to consumers in the South and

network, Flowers now has access to 61% of the U.S. population through direct-store delivery.” Mr. Deese said Tastykake production would continue at Tasty Baking’s plants in Philadelphia and Oxford, Pa., “using the same recipes and local ingredients that have created such strong consumer loyalty for the Tastykake brand.” MBN

Companies, associations join HFCS lawsuit
LOS ANGELES — Two trade associations and five more individual sugar companies have joined a lawsuit that claims a marketing campaign for high-fructose corn syrup is false and misleading in stating that HFCS is corn sugar. The Sugar Association and the American Sugar Cane League have joined the lawsuit as have American Sugar Refining, Amalgamated Sugar Co., Imperial Sugar Co., Minn-Dak Farmers Cooperative and the U.S. Sugar Corp. “The attempted name change is an intentional effort to deceive consumers and, most disingenuously, it’s being done under the guise of consumer clarity,” said John Sheptor, president and chief executive officer of Imperial Sugar Co. “We are taking a stand to challenge this marketing ploy for what it is.” The Washington-based Corn Refiners Association, a defendant in the lawsuit, has said it stands by the message in the marketing campaign and the science behind the message. Other defendants include Archer Daniels Midland Co., Cargill, Corn Products International, Inc., Penford
10 / May 31, 2011 Milling & Baking News

Products Co., Roquette America, Inc., and Tate & Lyle Ingredients Americas, Inc. The Corn Refiners Association on Sept. 14, 2010, petitioned the U.S. Food and Drug Administration to allow manufacturers the option of using “corn sugar” as an alternative name for highfructose corn syrup. Western Sugar Cooperative in Colorado, Michigan Sugar Co. and C&H Sugar Co. originally filed the lawsuit

April 22 in a U.S. district court in Los Angeles. The lawsuit says a marketing campaign aims to change consumer perception of HFCS by equating it with sugar, especially after some food and beverage companies have substituted sugar for HFCS in their products because of consumer perception of HFCS. The lawsuit cites Internet advertising, exhibitions at professional organizations, TV commercials, print advertisements and the web site www.sweetsurprise.com. MBN

Kraft launches Chips Ahoy! Chewy Gooey cookies
EAST HANOVER, N.J. — Kraft Foods Inc. has added to its Chips Ahoy! cookies line with the launch of two new varieties: Chips Ahoy! Chewy Gooey Chocofudge and Chips Ahoy! Chewy Gooey Megafudge. Chocofudge is a soft chocolate chip cookie made with chocolate chips filled with a layer of fudge. Megafudge is a soft, brownie-like chocolate chip cookie with white chocolate chips filled with a layer of fudge. MBN
bakingbusiness.com / world-grain.com

http://www.sweetsurprise.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - May 31, 2011

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