Milling & Baking News - August 31, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods LATE NEWS WINSTON-SALEM, N.C. - The share price of Krispy Kreme Doughnuts, Inc., tumbled Aug. 26, after the company announced second-quarter earnings down 56% from the second quarter in fiscal 2004. Krispy Kreme shares fell 10%, closing at $13.77 the day the results were released. At the early morning low of $12.75, shares were down 71% from the 52-week high of $44.59. Net income of Krispy Kreme in the quarter ended Aug. 1 was $5,764,000, equal to 9c per share Continued on Page 10 Krispy Kreme profits, shares fall Autumn daze: Grain shippers again will encounter rail delays KANSAS CITY - Perhaps not for lack of trying, but large U.S. railroad carriers that had a tough time handling last year's fall U.S. corn and soybean harvest may not improve their performance much this year. With the height of the Midwest harvest still more than a month away, many grain shippers and handlers already have taken steps to combat railcar shortages and expected shipping slowdowns. The two largest U.S. grain carriers, Burlington Northern Santa Fe and Union Pacific Corp., also have added staff, locomotives and rail cars in an attempt to keep grain moving at a reasonable pace. Nonetheless, both the economic recovery of the past year, which has increased traffic on all U.S. rail lines, and an expected Continued on Page 35 AUGUST 31, 2004 / A.B.A. says pyramid should remain nation's healthful eating symbol WASHINGTON - In comments submitted Aug. 23 to the U.S. Department of Agriculture, the American Bakers Association said the Food Guide Pyramid should not be jettisoned as the graphic depiction of the Dietary Guidelines for Americans. In a letter from the group's president Paul C. Abenante, the A.B.A. said replacing the graphic would be viewed incorrectly as an admission that the Food Guide Pyramid's eating recommendations are unhealthy. The letter was sent to Eric J. Hentges of the Center for Nutrition Policy and Promotion in response to a request for comments on the pyramid. The request was pub- lished in the July 13 Federal Register. The A.B.A. letter was structured as a series of answers to specific requests for comments on several topics: * the relative merits of the pyramid and other shapes; * the usefulness of proposed strategies to build awareness; * the pros and cons of a plan to offer individual eating guidance; * the value of emphasizing core messages rather than the graphic as the principal communication vehicle for guidance; * what is needed for interactive tools to Continued on Page 11 Bakers gain glimpse into scope of product promotion campaign LAS VEGAS - Having kept its plans under tight wraps for many months, the Foundation for the Advancement of Grain Based Foods put its firepower on full display at an Aug. 16 membership meeting of the American Bakers Association. Through a series of presentations, an increasingly clear picture emerged of the pending public relations program, highly targeted to polish the image of grain-based foods and to reverse declining consumption trends. The two-hour, multimedia program was BREAD industry perspective presented at the Las Vegas Convention Center in conjunction with the 2004 International Baking Industry Exposition. Facing a barrage of negative publicity, the grain-based foods industry has been as vulnerable as an unarmed fencer, said Jennifer A. Burke, an account director for Mullen, the firm that is creating the p.r. campaign. "There is a television commercial for the Olympics right now that shows an unprepared athlete, a fencer with no sword and no armor," Ms. Burke said. "That's Continued on Page 17 BREAD industry perspective Story on Page 25 inside THIS WEEK I.B.C. closing Buffalo baking plant 12 Ingredient Durum milling capital projects Larger crop forecast for Canada 14 37 Week 38

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Milling & Baking News - August 31, 2004