Milling & Baking News - September 14, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods Equity firm agrees to buy Cinnabon chain from AFC ATLANTA - Cinnabon, the leading bakery chain specializing in cinnamon rolls, soon will have a different owner. Roark Capital Group, an Atlanta-based private investment firm with stakes in several franchise and consumer brand businesses, announced last week it will acquire the chain from AFC Enterprises. AFC, also based in Atlanta and operator of the Popeyes and Church's restaurant chains, had sought a buyer for Cinnabon since April, when the company said it wanted to "sharpen" its strategic focus. The transaction also will include Roark's purchase of AFC's Seattle's Best Coffee International business, which operates in 150 locations, including military bases, Hawaii and 11 countries. Roark and AFC did not disclose terms of Continued on Page 12 LATE / NEWS ST. GEORGE'S, GRENADA - Hurricane Ivan, a deadly storm that was pummeling the Caribbean late last week, caused serious damage at the St. George's flour mill of ADM Milling Co. Jack Cwach, group commercial manager at ADM, said the mill's roof sustained serious damage. "It looks as though elevator legs have collapsed as well," he said. Mr. Cwach said it was too early to tell how long it would take to repair the mill or how much the repairs will cost. While the Grenada mill is down, customers will Continued on Page 10 Hurricanes disrupting flour mills W.T.O. rules United States cotton subsidies illegal; appeal looms GENEVA - In a decision with potential implications extending beyond cotton, the World Trade Organization last week confirmed an earlier ruling declaring $3.2 billion in subsidies to U.S. cotton farmers illegal under world trade rules. The Bush administration has 60 days, or until Nov. 8, to file an appeal. U.S. Trade Representative Robert B. Zoellick said the U.S. will appeal the W.T.O. decision. "The facts do not show that U.S. farm programs have distorted trade and caused low cotton prices," Mr. Zoellick said. "Moreover, some aspects of the panel report belong in negotiation and not litigation, namely, in the Doha Development SEPTEMBER 14, 2004 Formal approval from F.D.A. for omega-3 claim WASHINGTON - Formalizing a practice it essentially approved earlier this year, the Food and Drug Administration last week announced it will allow manufacturers to attach a qualified health claim to food products containing omega-3 fatty acids. Typically found in oily fish but also added to a variety of foods, omega-3 fatty acids have shown evidence of warding off cardiovascular disease and other heart ailments. The decision could provide a boost to suppliers of flaxseed and fish oil seeking to gain a stronger foothold for those ingredients in grain-based foods. The F.D.A.'s decision to keep the claim "qualified" means that although such research has proved credible, it has yet to prove conclusive. "While the F.D.A. has concluded these Continued on Page 14 Sweeten the deal Agenda negotiations. We believe the Appellate Body will agree." Brazilian trade officials, reacting to the W.T.O. ruling, suggested it would be beneficial in current efforts to negotiate U.S. policy reforms. The W.T.O. ruling was made in response to a complaint by Brazil, Australia and Thailand. Brazil had accused the United States of depressing world cotton prices and unfairly expanding or maintaining export shares. Brazil also had stated that U.S. export credit guarantees for all commodities in effect confer export subsidies. The trade panel agreed that some U.S. farm Continued on Page 13 inside Story on Page 29 THIS WEEK Ingredient Panera effort focuses on offices, groups Gary Jensen to executive post at Roman Meal Marty Vanier to head bioterror initiative Week 11 18 22 54

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Milling & Baking News - September 14, 2004