Milling & Baking News - April 25, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods More time for I.B.C. to reorganize; ups and downs in efforts so far KANSAS CITY - Interstate Bakeries Corp. said the U.S. Bankruptcy Court for the Western District of Missouri has extended through Sept. 22 the exclusivity period under which I.B.C. may file a reorganization plan. The company will have through Nov. 21 to solicit acceptance of a reorganization plan. Previously, I.B.C. was to have until May 18 to file a plan of reorganization and until July 17 to solicit acceptance of a plan. I.B.C. made its latest request for an extension on March 30, at which point the Kansas City-based maker of Twinkies and Wonder bread said the "sheer size and complexity of the debtors' cases alone justifies an extension of the exclusive periods." (See Milling & Baking News of April 11, Page 14.) The extra time will be used to formulate and test a long-term business plan, I.B.C. said. In particular, the company said it would explore the impact on its financial results of various factors, including operational changes to the company's profit centers, rising costs of materials, union contract negotiations, new marketing initiatives and improvements in manufacturing Continued on Page 11 Whole Grains Council to add gram content to stamp program BOSTON - Beginning in May, the Whole Grains Council will introduce a revised Whole Grain Stamp that will include the number of grams of whole grain ingredients included in each serving of a product. In addition, the stamp will continue to remind consumers that 48 grams or more of whole grains are recommended daily under the Dietary Guidelines for Americans 2005. "Consumers need to have a sense that they're making progress in meeting the Dietary Guidelines," said Jeff Dahlberg, chairman of the W.G.C. "This new stage in our Whole Grain Stamp program will help consumers make wise choices at the supermarket." K. Dun Gifford, president of Oldways Preservation Trust, the parent organization of the W.G.C., said the Council will keep the best elements of Continued on Page 12 Be ready to re-reformulate Story on Page 23 inside APRIL 25, 2006 / LATE NEWS NORTHFIELD, ILL. - Firstquarter earnings jumped 41% at Kraft Foods Inc., as a favorable tax benefit, higher prices and cost savings from an ongoing two-year restructuring boosted the bottom line for the nation's largest food company. Net income in the first quarter ended March 31 was $1,006,000,000, equal to 61c per share on the common stock, up from $713,000,000, or 42c per share, in the same period a year ago. However, the company's sales increased only fractionally to $8,123,000,000 from $8,059,000,000, and volume Continued on Page 10 Tax benefit boosts Kraft net N.G.F.A. opposes railroad proposal on track abandonment WASHINGTON - The National Grain and Feed Association (N.G.F.A.), in a statement filed April 12 with the federal Surface Transportation Board (S.T.B.), expressed concern over a proposal that would allow shortline and regional railroads - designated Class II and III carriers - to abandon track simply by notifying the S.T.B. At issue is a petition filed with the S.T.B. by Class II and III railroads that would make small carriers eligible to abandon lines by invoking a notice procedure. The notices would consist of relevant commercial and engineering information about the line to be abandoned and would be published in local newspapers and national Continued on Page 14 THIS WEEK Krispy Kreme delays '06 filing 14 Ingredient Bill Mead, former head of Campbell Taggart, dies C.P.I. rises for baked foods, cereals 19 21 Week sponsored by 42

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Milling & Baking News - April 25, 2006