Milling & Baking News - December 23, 2003 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / I.B.C. preparing super premium, reduced-carbohydrate bread lines KANSAS CITY - Interstate Bakeries Corp. is preparing to introduce a line of super premium bread varieties as well as a reducedcarbohydrate bread, said James R. Elsesser, chairman and chief executive officer. "The super premium category has an approximate 27% dollar share of the fresh bread category and volume has grown approximately 3% over the last year," Mr. Elsesser said in a Dec. 18 quarterly conference call. That robust sales performance contrasts with a 2.9% decrease in unit bread volume at I.B.C. in the second quarter ended Nov. 15. Combined with a 6.2% decline in sweet SPECIALTY BREAKFAST product perspective goods unit volume in the quarter, company sales decreased 1.1%. The reduced sales volume, and higher energy and employe-related costs, resulted in net income slipping 39% in the quarter. "We expect to enter the super premium bread category before the end of our current fiscal year," Mr. Elsesser said. The line should be in full distribution within two months after its introduction to the retail trade in January, he said. Introduction of the super premium bread line is not expected to affect the company's joint venture with Pepperidge Continued on Page 13 G.M.A. cautions on need for realistic food labeling changes WASHINGTON - Changes to the Nutrition Facts box in packaged food labeling should reflect realistic dietary patterns for healthy Americans, the Grocery Manufacturers of America said in response to a report from the Institutes of Medicine calling for an update of food nutrition labeling. "Setting overly restrictive nutrition standards could discourage Americans from making simple improvements to their diets," Alison Kretser, director of scientific LATE nutrition policy at the G.M.A., said of the National Academy of Sciences' report on nutrition labeling in the United States and Canada (see Milling & Baking News of Dec. 16, Page 8). "Revisions to the Nutrition Facts box - along with the U.S. Dietary Guidelines and the Food Guide Pyramid - represent an opportunity for the federal government and the food industry to help consumers Continued on Page 17 NEWS Kellogg ups guidance, to take charges BATTLE CREEK, MICH. - Kellogg Co. on Dec. 18 raised its earnings guidance for the year ending Dec. 30 to $1.90 to $1.92 per share. The new range is 1c per share higher than previous guidance. The announcement followed by one day the lowering of earnings guidance by General Mills, Inc. (See related story on Page 12.) At the same time, Kellogg said it will incur charges of 7c to 9c per share in the fourth quarter in various Continued on Page 10 inside DECEMBER 23, 2003 NEW A GENERATION Story on Page 27 Management shuffle leaves Deromedi as sole Kraft c.e.o. NORTHFIELD, ILL. - Roger K. Deromedi has been named the sole chief executive officer of Kraft Foods Inc., revamping a management structure in which he had shared the c.e.o. position with Betsy D. Holden. According to Kraft, Ms. Holden will remain with the company in an unspecified "global leadership position" and will retain her spot as a member of the Kraft board of directors. In addition to losing her co-c.e.o. title, Ms. Holden no longer will be president of Kraft Foods North America. Because her new position was not detailed and no new president of Kraft North America was named, the announcement last week fueled speculation that further restructuring will be forthcoming. The nation's largest food company, Kraft Foods has struggled financially in recent months. In the third quarter ended Sept. 30, the Continued on Page 20 THIS WEEK Parmalat may sell U.S. cookie business 11 Ingredient Strong wheat exports cut into carryover David E. Gardner dies; headed Nickles Week 14 18 34

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Milling & Baking News - December 23, 2003