Milling & Baking News - April 10, 2007 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 10, 2007 / Whole wheat flour production surges 74% over three years INSERT AIB International 2007 A special report in Milling & Baking News LATE NEWS General Mills issues convertible notes MINNEAPOLIS - General Mills Inc. has priced a private placement of $1 billion aggregate principal amount of floating rate convertible senior notes due 2037. The company said the notes will have interest at a floating rate equal to one month LIBOR (London Interbank Offered Rate) minus 0.07% and subject to monthly reset and payable quarterly in arrears. The initial conversion rate will be 10 shares of General Mills' common stock per Continued on Page 10 Ingredient Week Sponsored by Story on Page 38 KANSAS CITY - In what marks the first time data on the most dynamic segment of grain-based foods have been aggregated, whole wheat flour production in 2005-06 (year ended May 31) has been estimated by Milling & Baking News at 12,386,000 cwts, up 26% from 9,844,000 cwts the year before. This estimate is based on production figures and guidance provided proprietarily to Milling & Baking News by 19 of the largest flour milling companies in the United States, accounting for more than 90% of U.S. flour milling capacity. Total whole wheat flour production figures are estimated based on the data assembled for the fouryear period ended May 31, 2006. The data help answer two of the most frequently posed questions in grain- based foods in recent years: How fast is demand for whole wheat foods growing, and how large is the market overall? The 26% growth in whole wheat flour production measured for 2005-06 represented an extraordinary pace of increase for as mature an industry as grain-based foods. That expansion appeared to confirm assessments of whole wheat advocates that whole wheat products were rapidly capturing the buying focus of consumers, as well as being offered in increasing volume by manufacturers of grain-based consumer foods. The 26% upturn estimated for 2005-06 followed similarly strong rates of growth in 2004-05 (15%) and 2003-04 (20%). Flour millers offering preliminary Continued on Page 36 Kuchuris details East Balt move to new countries, customers CHICAGO - While fresh baking companies generally focus on domestic rather than international opportunities for expansion, a second look outside the borders of the United States is warranted, said Mark Kuchuris, executive vice-president, East Balt Europe and Africa, part of East Balt, Inc., Chicago. In a presentation March 7 before the American Society of Baking, Mr. Kuchuris described the path East Balt has taken to begin baking beyond the shores of the United States and also discussed the company's shift from a baking company that supplies only McDonald's Corp. to one that is supplying other food service customers and is exploring relationships with other baked foods buyers. The presentation was part of BakingTech 2007 held March 4-7 at the Chicago Marriott. While crediting his grandfather Lou Kuchuris with establishing a relationship with McDonald's founder Ray Kroc that launched East Balt, Mr. Kuchuris said his grandfather would be "shocked, and I'm sure very proud" by the company's growth under the second generation leadership of Frank Continued on Page 18

Table of Contents for the Digital Edition of Milling & Baking News - April 10, 2007


Milling & Baking News - April 10, 2007