Milling & Baking News - June 3, 2008 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
JUNE 3, 2008

bakingbusiness.com / foodbusinessnews.net

Flowers net up 26%; major executive
changes to adapt operating structure

NEWS

The 2007 farm
bill: better late
than never?
Story on Page 40

LATE NEWS

International group sees
further price strength
PARIS - While projected to decline
from recent peaks, agricultural commodity prices over the next 10 years
are expected to exceed above averages of the past decade, according
to an Agricultural Outlook from
the Organization for Economic Cooperation and Development and the
United Nations' Food and Agriculture Organization released last week.
In comparing averages of the coming
decade with those of the past decade,
real prices are projected to increase,
including less than 10% for rice
and sugar; less than 20% for wheat;
about 30% for butter, coarse grains
and oilseeds; and more than 50% for
Continued on Page 8

THOMASVILLE, GA. - Net income
at Flowers Foods, Inc. rose 26% in the
first quarter ended April 19 versus the
same period a year ago, while sales
were up 11%. In addition to its financials, Flowers Foods announced several key management appointments
as well as a realignment of its operating structure.
Net income of Flowers Foods
in the quarter ended April 15 was
$35,783,000, equal to 39c per share on
the common stock, which compared
with $28,493,000, or 31c per share,
during the first quarter last year.
Net sales in the first quarter were
$676,707,000, up from $609,947,000 in
the same period a year ago.
George E. Deese, chairman, president
and chief executive officer, said the

company, in the face of serious challenges, enjoyed unit growth of 2.6%
in the quarter with increased sales to
quick-service restaurants helping offset
lighter sales to casual dining providers.
"We continue to face the most dramatic cost increases the baking industry has ever experienced, but our
team remains focused on executing
our strategies, further improving
our efficiencies, taking costs out of
our business wherever possible, and
maintaining the quality and value of
our products," he said.
Updating its guidance for the full
year, Flowers projected earnings of
$1.15 to $1.23 per share, up from earlier
guidance of $1.07 to $1.17. Its updated
sales guidance was raised to $2,220
Continued on Page 12

Executive Strategies: Purchasing

Charles A. Stroda, Snyder's of Hanover:

A passion that's in his blood

o Charles A. Stroda, director of purchasing at
Snyder's of Hanover,
Hanover, Pa., work for a grainbased foods company was
anything but an arbitrary career choice. Instead, with wheat industry involvement
beginning when he
was a small child,
Mr. Stroda said his

passion for the business courses
through his veins.
"I really think it's in the blood,
growing up around it my entire life," he said. "You
find it difficult to let
go, once it's there."
A native of Herington, Kas., just
east of Salina,
Mr. Stroda was
raised on a
wheat farm. But
his most enduring wheat memories from his childhood do not emanate from the Strodas' cultivation of the crop.
"Our family also had a large custom harvesting operation," he said. "I
worked for nine years every summer
harvesting wheat, from when I was 14
Continued on Page 33

http://www.bakingbusiness.com http://www.foodbusinessnews.net

Milling & Baking News - June 3, 2008

Table of Contents for the Digital Edition of Milling & Baking News - June 3, 2008