Milling & Baking News - May 31, 2005 - 1

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Sanger: Whole grains awareness
up, but more education needed
MINNEAPOLIS - If phone interviews, e-mail correspondence and supermarket studies are any indication,
consumer knowledge about whole
grains is growing but incomplete, said
Stephen W. Sanger, chairman and chief
executive officer of General Mills, Inc.
Mr. Sanger spoke May 20 to participants
at the "Whole Grains & Health: A Global
Summit" in Minneapolis.
"Most consumers still do not fully understand what whole grain is all about at
this time," Mr. Sanger said, adding that
General Mills has used advertising as a

I A O M REVIEW

vehicle to educate consumers and has been
relating the benefits of whole grains since
Wheaties was introduced in 1924.
He said General Mills receives hundreds
of comments, questions and inquiries on a
daily basis about whole grains.
"Consumers are blunt and they're to
the point, even though they might not
always be technically accurate," he said.
In regards to whole grains, he said some
consumers are praising the company while
others are asking General Mills to do more.
"But I think a large number of them seem
Continued on Page 12

Baking and Snacking performance
headlines Campbell Soup results
CAMDEN, N.J. - Third-quarter profits of
Campbell Soup Co. were lifted by strong
growth in its fresh bakery segment and
cookie business.
The company's Baking and Snacking
division, which includes the Pepperidge
Farm business in the United States and
Arnott's in Australia and the Asia/Pacific
region, had operating earnings of $36 million in the three months ended May 1, up
33% from $27 million in the third quarter

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MAY 31, 2005

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last year. Sales were $421 million, up 8%.
The quarterly and longer term performance prompted Douglas R. Conant, president and chief executive officer of Campbell
Soup, to describe the Pepperidge cookie
business as the best performing biscuit business in the U.S. and possibly the world.
Pepperidge experienced strength across
categories beyond cookies, beginning with
fresh bread and baked products. Sales
Continued on Page 14

NEWS
LONDON -The 2005-06 wheat crop forecast was raised
slightly in data issued May 26 by the International Grains
Council. The I.G.C. forecast wheat production at 604 million
tonnes, up 2 million tonnes from its April projection. The
crop would be smaller than the 625 million tonnes harvested
in 2004-05 but would be larger than crops of 555 million
tonnes and 566 million the previous two years. "Higher figures for the United States, Iran, China and Pakistan were only partly offset
Continued on Page 8

Improved
world wheat
outlook

inside

Story on Page 19

Sara Lee to launch
'transitional' bread with
whole grain goodness
ST. LOUIS - Sara Lee Bakery Group has
announced plans to introduce a new bread
that looks and tastes like white bread but
delivers a good source of whole grains.
Sara Lee Soft & Smooth Made with
Whole Grain White Bread is a transitional
bread that has the taste, texture, appearance and economy of white bread, while
providing a good source of whole grains
per serving, the company said. The bread
is made from a 70/30 blend of enriched
wheat flour and whole grain flour and
contains 8 grams of whole grains per twoslice serving (4 grams per slice).
The move could be likened to last
year's reformulation by General Mills,
Inc. of its breakfast cereals. While all Big
G cereals contain whole grains, several
- such as Cocoa Puffs, Cinnamon Toast
Crunch and Cookie Crisp - are made
Continued on Page 9

THIS WEEK

I.B.C.
closing
N. England
baking plant

Fuel
surcharge
proposal
fuels anger

Ingredient
New
president at
Minneapolis
exchange

Week
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Milling & Baking News - May 31, 2005

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