Milling & Baking News - November 30, 2004 - (Page 1)

Theinewsweeklyiofigrain-basedifoods / NOVEMBER 30, 2004 Weston: White bread decline will not be fully offset by whole grains TORONTO - Growth in sales of whole grain products is not expected to fully offset declines in baked goods that are made from white flour in the near term, according to George Weston Ltd. The dark outlook was presented in connection with financial results for the company's third quarter ended Oct. 9. Approximately C$44 million ($37.1 million) in restructuring charges to close baking plants in Illinois, New York and Ontario depressed earnings. Net fell 22% to C$168 million ($141.5 million), equal to C$1.24 per share on the common stock, down from C$213 million, or C$1.55 per share, a year ago. Sales in the third quarter of 2004 totaled C$9,317 million ($7,850 million), up from C$8,768 million in the third quarter of fiscal 2003. Weston Foods, which includes Canadian baking and dairy businesses as well as the U.S. baking operation, posted operating income of C$51 million ($43 million) in the third quarter, down 55% from the third quarter last year. Results included the restructuring and exit costs associated with cost reduction initiatives. Elaborating on the results, the company said sales have been helped by products targeting health and wellness trends. "Overall volume increased by approximately 1% for the third quarter supported Continued on Page 11 Kellogg sues General Mills over Cinnamon Toast trademark DETROIT - The Kellogg Co. has sued General Mills, Inc. in an effort to keep General Mills from receiving a trademark "Cinnamon Toast Crunch" name for a cereal-based food bar. General Mills has sold Cinnamon Toast Crunch cereal for more than 16 years. Kellogg, based in Battle Creek, Mich., LATE filed the lawsuit Nov. 12 in the U.S. District Court, Eastern District of Michigan, Southern Division, in Detroit. Kellogg claims for an extended period of time it has advertised, promoted, used and continues to use the phrase "cinnamon toast." The company, for example, ran an Continued on Page 9 NEWS AUSTIN, TEXAS - The U.S. Bankruptcy Court for the Western District of Texas, San Antonio, has approved Schlotzsky's, Inc.'s plan to sell virtually all of its assets via an auction that will be held place Dec. 7. Investors wishing to submit qualified bids equal to or greater than the reserve price of $25 million must do so by Dec. 6. The court will conduct a sale approval hearing Dec. 8, and the transaction must close by Dec. 31. Schlotzsky's said more than 10 new potential investors have come Continued on Page 8 Court okays Schlotzsky's sale plan inside London's last miller Story on Page 21 Corn Products to take fourth-quarter charge as it plans plant closings WESTCHESTER, ILL. - Corn Products International, Inc. said last week it will close two of its corn processing plants permanently as it realigns its manufacturing operations. The world's largest maker of dextrose and a leading high fructose corn syrup and starch producer, Corn Products currently operates 37 plants in 19 countries. But the company said it plans to close its starch plant in Guadalajara, Mexico, the smallest of its four facilities in Mexico, and one of its plants in South America's Andean region by the end of the year. The company said it will shift production from the Guadalajara plant to its three remaining corn plants in Mexico and will shift output from the Andean plant to its recently expanded facility in Cali, Colombia. Corn Products said it would take a Continued on Page 10 THIS WEEK Ingredient Pepperidge unit at Campbell growing Malcolm Baldrige award to Bama 10 13 Oops: Death rate from obesity overstated Week 18 35

Table of Contents for the Digital Edition of Milling & Baking News - November 30, 2004


Milling & Baking News - November 30, 2004