Milling & Baking News - February 28, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods BREAD product perspective BREAD product perspective Blending bonanza Bread market rebounds as new products feature both whole grain flour and white flour S urprisingly enough, wholesale bakers particularly took aim at consumers of white bread when they promoted the health benefits of whole grains over the past year. It appears their marketing messages were heard, too. Blending whole grain flour and white flour became a trend, the success of it perhaps most evident in the sales of Sara Lee Soft & Smooth Made with Whole Grain White Bread. Such blending played a vital role as the retail fresh bread market continued its recovery from the low-carbohydrate trend of 2004. Recent ACNielsen statistics suggest consumers will pay more for value-added bread such as bread made with whole grain flour. U.S. fresh bread sales at food, drug and mass merchandisers, not including Wal-Mart, were $6,063,750,622 for the 52 weeks ended Dec. 31, 2005, which compared with $5,945,846,829 for the previous 52-week period. During that time, however, unit volume dropped to 3,374,459,104 from 3,460,760,818. The focus on innovation involving whole grains took priority once the government's MyPyramid food guide released in 2005 encouraged consumers Continued on Page 27 Industry pleased F.D.A. acting on whole grains but wary of guidance WASHINGTON - Even after recent draft guidance from the federal government, many important questions remain to be answered about whole grains labeling, according to leading grain-based foods organizations. The groups commented in the wake of the guidance issued Feb. 15 by the Food and Drug Administration. The agency offered a definition of whole grains and identified a number of products (for example, legumes) that may not be called whole grain (see Milling & Baking News of Feb. 21, Page 1). If baking and other companies are to effectively market whole grains to consumers, considerably more guidance will be needed from the F.D.A., said Lee Sanders, senior vice-president of government relations and public affairs for the American Bakers Association. "The A.B.A. is glad that F.D.A. is addressing this key issue for the baking industry and will have the opportunity to comment on F.D.A.'s draft guidance for industry and F.D.A. staff on whole grain Continued on Page 12 inside FEBRUARY 28, 2006 / Flour production in 2005 nearly steady, with some data rising WASHINGTON - Production of wheat flour by U.S. mills in 2005 decreased 0.2% from 2004, according to data issued by the Census Bureau of the U.S. Department of Commerce. Statistically, it could be argued that 2005 output was slightly up from the prior year since six-day operations in 2005 totaled 307 days while 2004 aggregated 308 because of the leap year and the difference between the two years was less than the average for a single day of flour production. Output for the past year totaled 393,129,000 cwts, down 796,000 cwts from Continued on Page 20 LATE NEWS MEXICO CITY - U.S. sales for Grupo Bimbo S.A. de C.V. were NP13,545 million ($1,292 million) for the fiscal year ended Dec. 31, 2005, a 2.8% increase from NP13,173 million in the previous fiscal year, the Mexico City-based company said last week. U.S. sales accounted for 24.1% of Grupo Bimbo S.A. de C.V.'s companywide sales of NP56,102 million for the fiscal year ended Dec. 31, 2005. The companywide sales were a 6.8% increase from sales of NP52,574 in the previous fiscal year. The U.S. segment reported operating profit of NP75 million for the fiscal year ended Dec. 31, 2005, which compared Continued on Page 10 Bimbo's U.S. sales climb nearly 3% THIS WEEK Rules force change in E.U. sugar market Slow sales stymie J.M. Smucker income 14 17 Ingredient Rich Products founder dies at 92 54 Week sponsored by 58

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Milling & Baking News - February 28, 2006