Milling & Baking News - May 3, 2005 - (Page 1)

Theinewsweeklyiofigrain-basedifoods I.B.C. to close Miami bakery, consolidate Florida operations KANSAS CITY - Interstate Bakeries Corp. last week said that, as part of its previously announced operational and financial restructuring and subject to bankruptcy court approval, it plans to consolidate operations in its Florida Profit Center (P.C.) by closing its bakery in Miami and consolidating routes, depots and thrift stores in Florida and Georgia, where it maintains regional facilities. The company said it expects to complete the consolidation of the Florida P.C. by July 15. The consolidation is expected to affect approximately 600 workers in the Florida P.C. I.B.C. will continue to service the marketplace from its bakeries in Columbus, Ga., and Jacksonville and Orlando, Fla. The actions are part of the company's LATE latest efforts to address continued revenue declines and its high-cost structure, I.B.C. said. Monthly consolidated operating reports filed with the bankruptcy court show that net sales for the third quarter (16 weeks ended March 5) were $1,003 million, representing a 1.7% decline from the comparable period a year ago. "In light of continuing revenue challenges, we are taking steps to rationalize and refocus our underperforming operations into a sustainable, ongoing business that can operate outside of bankruptcy protection," said Tony Alvarez II, chief executive of I.B.C. and co-founder and co-chief executive of Alvarez & Marsal, a global corporate Continued on Page 12 Kraft sees whole grain snacks as key to meeting growth targets EAST HANOVER, N.J. - Innovation opportunities, including whole grain cookies, crackers and cereals, and trans-fatfree original Oreos, offer Kraft Foods Inc. the potential to deliver on its Sustainable Growth Plan, the Northfield, Ill.-based company said last week at its annual stockholders meeting. Providing an overview of the company's progress on its Sustainable Growth Plan, Roger K. Deromedi, chief executive officer, said several areas for higher growth potential exist within the company's product line in 2005, including whole grain products, proprietary milk preparation and fortification technologies, and products that fit into the nutritional requirements of the South Beach Diet. "In whole grain snacks, we will be adding Continued on Page 13 N E W S F E AT U R E Kroger first with 'Bread. It's Essential' promotion Story on Page 27 inside MAY 3, 2005 / NEWS WA S H I N G T O N - A new report from the Institute of Medicine of the National Academies has proposed a number of changes to the Special Supplemental Nutrition Program for Women, Infants, and Children that among other things would encourage participants to consume more whole grains. The I.M.N.A. report recommended that breakfast cereals that have been a key part of the WIC program should be whole grain varieties only. In addition, the report recommended that for the first time food purchases for women and children in the program be allowed 1 or 2 lbs of bread a month. "This is a great day for the baking industry as it further illustrates the vital role Continued on Page 10 More whole grains seen for WIC Hershey to expand cookie effort after record earnings HERSHEY, PA. - Aided by strength in its new premium indulgent cookie line, along with success in its Hershey's SmartZone balanced nutrition bars, The Hershey Co. on April 21 reported record sales and earnings for the first quarter ended April 3. Net income in the first quarter was $118,221,000, equal to 49c per share on the common stock, up 10% from $107,147,000, or 42c per share, in the first quarter of 2004. Net sales for the first quarter were $1,126,414,000, compared with Continued on Page 32 THIS WEEK Team USA triumphs at World Cup of Baking 14 Group forms to protect trade with Cuba 18 Ingredient Sara Lee net up on restructuring savings 34 Week sponsored by 38

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Milling & Baking News - May 3, 2005