Milling & Baking News - February 1, 2005 - 1

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bakingbusiness.com / world-grain.com

Signs of progress at AIPC
send share price surging

E D I T O R I A L

After the Guidelines:
An industry agenda

KANSAS CITY - A return to profitability, improved sales of
Mueller's pasta and early indications that a price increase was not
encountering customer resistance sent share prices of American
Italian Pasta Co. soaring on Jan. 26.
Following more than a year of steadily worsening financial
news, the beleaguered pasta maker's shares rose $4.50 on Jan.
26, closing at $25.45. The 21.5% gain made it the leading gainer
Jan. 26 on the New York Stock Exchange. While company executives cautioned last week that the current environment for pasta
demand was still highly volatile, the market move appeared to
suggest mounting confidence that the consumers' flight from
pasta was ending.
Net income of AIPC in the first quarter ended Dec. 31 was
$2,097,000, equal to 12c per share on the common stock, down
73% from $8,127,000, or 45c per share, in the first quarter last year.
The first-quarter $2 million profit contrasted with a loss of $12.2
million in the fourth quarter of fiscal 2004.
Net sales in the first quarter were $99,121,000, down 2.4% from
the first quarter the previous year.
"We are encouraged by the progress we made in the first quarter
and our return to profitability, given the challenging industry environment and the restructuring activities of last year," said Timothy
S. Webster, AIPC president and chief executive officer. "While we
made significant improvements on a number of important operational and strategic fronts, we still have a lot to accomplish over the
remainder of the year. Our production and manufacturing cost
efficiencies continue to improve after the implementation of our
restructuring and rightsizing program, and we expect to achieve
Continued on Page 15

s it good for grain-based foods? A considered look at the recently-issued 2005 Dietary Guidelines for Americans yields
no simple answer to this question. Instead, careful examination produces reasons for the industry being relieved, if not
pleased, with the outcome, which turned out to be much better
than the grimmest expectations. Yet, there's also no reason for
satisfaction with the federal government telling Americans they
should reduce the amount of grain-based foods they eat and also
should radically change the kinds of grain foods in their diets.
The "key recommendation" calling for a diet balanced 50-50
between whole grains and enriched grains generally has been
painted as a positive for the industry since it appears to maintain
the centrality of grain-based foods in what the government says
people should eat. Not to be overlooked on the negative side,
though, is the wording within the Dietary Guidelines that is critical of "refined grains." Still worse is the recommended reduction
of one or two servings per day in the quantity of grain-based
foods eaten. From what the 2000 guidelines recommend, this is a
suggested consumption decrease of as much as 22 per cent.
As important as it may be to ruminate over what has happened and what it means, the industry does not have the luxury
of letting time pass while it considers long-term implications of
the recommendations. It is impossible to overstate the importance for grain-based foods of ensuring the soon-to-be released
food guide graphic, which is likely to replace the Food Guide
Pyramid, has the more benign tone of the Dietary Guidelines'
key recommendation than the sneering attitude toward refined
grains incorporated into the body of the text.
Beyond the need to address this hugely important immediate concern, there is no shortage of other actions the industry
must take in the wake of publication of the Dietary Guidelines.
Ten suggested action steps for grain-based foods, as individual
companies and as an industry, follow:

N E W S F E AT U R E
Science
Experiment:

1. Don't let up with the government. The industry produces
healthful products, and it should continue working to have its
voice heard on this matter. It should step back, critique its
failings in arguing its case last year, and get back at it. In the
1930s, legislation was brought before Congress that would have
Continued on Page 7

Baking labs in schools
seen as way to reach youth
Story on Page 23
inside

FEBRUARY 1, 2005

THIS WEEK

Ingredient

Flowers
to air
Super Bowl
TV spot

Blast
damages
ADM mill
at Enid

Adjustment
sought for
trans-fat
labeling date

Week

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Milling & Baking News - February 1, 2005

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