Milling & Baking News - February 22, 2005 - (Page 1)

Theinewsweeklyiofigrain-basedifoods BREAD product perspective BREAD product perspective In transition A fter a year in which the anticarbohydrate storm swept through their industry, baking companies are retooling for "the next big thing." Girded by the revised whole grains-friendly Dietary Guidelines for Americans, many bakers are aggressively reshaping their bread portfolios to adjust for major changes seen emerging in the marketplace. In many respects, baking companies were not well rewarded for their increased innovation last year. With a few prominent exceptions, 2004 featured an unusually small percentage of new product successes. Companies devoted an overwhelming percentage of tight research and development budgets to producing reduced-carbohydrate bread varieties, most of which are no longer on the market. Viewed negatively, the year 2004 could be considered a "lost year" for baking research and development in view of this chase to counter a potentially devastating trend just as the fad was rapidly retreating. Baking managements hardly have pulled in their horns in response to last year's stumbles. Rather than returning to baking's historically restrained, if not timid, attitude toward innovation, many companies are stepping up their efforts to find new or reformulated products that tap into consumer trends. While a scattering of new products have been introduced in recent months, many of the baking company executives interviewed by Milling & Baking News indicated that additional Continued on Page 21 Flour production in 2004 drops 1.6%; smallest total since 1995 WASHINGTON - Production of wheat flour by U.S. mills in 2004 decreased 1.6% from 2003, according to data issued by the Bureau of the Census of the U.S. Department of Commerce. Output for the past year totaled 389,865,000 cwts, down 6,350,000 cwts from 396,215,000 in 2003 and 31,405,000 below the record output of 421,270,000 in 2000. It was the smallest annual output since 1995, when mills produced 388,689,000 cwts. The total includes semolina, which, according to the Census Bureau, was 28,893,000 cwts in 2004, compared with 29,691,000 cwts in 2003. The semolina decrease of 798,000 cwts proved to be only a fraction of the 6,350,000 overall output reduction between Continued on Page 39 inside FEBRUARY 22, 2005 / Restructuring expense, Entenmann's charges depress Weston net TORONTO - Restructuring charges and an impairment review of the production assets employed by Weston Foods' Entenmann's business in the United States contributed to a 63% decline in operating income at Weston Foods in the year ended Dec. 31. Operating income for the year totaled C$138 million ($111.6 million), down from C$374 million in fiscal 2003. In line with the Entenmann's review, Weston Foods recognized a non-cash impairment charge of 31c per share in the year. The company realized a further charge of 27c per share related to restructuring and exit activities and accelerated depreciation for other Weston Foods bakery facilities. Net sales in the year eased 4.2% to C$4,335 million ($3,507 million) at Weston Continued on Page 45 LATE NEWS DIEMEN, THE NETHERLANDS - In an effort to boost the profitability of its U.S. bakery distribution operations, CSM on Feb. 17 announced plans to restructure its BakeMark business. Four BakeMark East distribution centers will be sold - at Buffalo and Saratoga Springs, N.Y.; St. Louis; and New Orleans. CSM will close BakeMark East headquarters, in Schaumburg, Ill. Remaining BakeMark activities will be merged with BakeMark West, which will be renamed Continued on Page 10 CSM to streamline BakeMark THIS WEEK Whole grains stamp on bread packages 16 MGPI contends with ingredient stockpiles 42 Ingredient Data show U.S. flour exports vaporizing 56 Week sponsored by 46

Table of Contents for the Digital Edition of Milling & Baking News - February 22, 2005


Milling & Baking News - February 22, 2005