Milling & Baking News - January 13, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JANUARY 13, 2009 / NEWS Industry shares fall 21% in 2008; smaller tumble than overall market I Pizza Hut introduces The Natural; crust made with whole grains Story on Page 11 LATE NEWS Kellogg to raise cereal prices Jan. 18 BATTLE CREEK, MICH. - The Kellogg Co. announced it will raise the prices on most of its cereal brands as well as Pop-Tarts toaster pastries beginning Jan. 18. "The effective price increase across our product portfolio is in the low-to-mid single digits," said Susanne Norwitz, a spokeswoman for Kellogg. Ms. Norwitz said the company's All-Bran and Special K brands are not part of the price increase. Kellogg, which most recently raised the prices of certain cereals in June and January 2008, said it expects higher costs on sugar, rice and packaging to continue in 2009. General Mills, Inc., which is Kellogg's biggest Continued on Page 8 n a year marked by the worst stock market performance since the 1930s, share prices of grain-based foods companies declined broadly in 2008. The Grain-Based Foods Share Index, calculated by Milling & Baking News, ended the year at 9,146.77, down 21%. For the G.B.F. index, the performance in 2008 was the second worst since the index was created by Milling & Baking News in 1988. Only in 1999 did the index lose more ground, falling 28%. The 21% drop last year compared with a 1% advance in 2007, a 19% gain in 2006 and an 11% decline in 2005. By a number of significant comparative measures, though, the Grain-Based Foods Share Index performance in 2008 was not all bad. The 21% decline in 2008 compared with significantly wider declines for broad market indexes. The Dow Jones average of industrial shares was down 34% in 2008, the S&P 500 fell 39% and the Nasdaq index dropped 41%. The wide outperformance by grain-based foods shares versus the S&P 500 (17 percentage points in 2008) was consistent with earlier bear market experiences. For instance in 2001, after the Internet bubble burst, the Grain-Based Foods Share Index outperformed the S&P by 14 percentage points and then outperformed by 27 points in 2002. While the financial sector of the stock market was hit hardest by the Wall Street selloff in 2008, every other sector of the economy also lost ground. In fact, of the Continued on Page 18 Sara Lee adding 'Nutritional Spotlight' to Soft & Smooth bread line DOWNERS GROVE, ILL. - Sara Lee North American Fresh Bakery has launched a new nutrition labeling program for its bread, bun and bagel products. The program, which will begin this month on the company's Soft & Smooth bread line, complements the Nutrition Facts Panel currently required on all food products. The company said it is providing the information to help consumers "make fast, informed decisions" about Sara Lee baked foods they buy. "We know individuals want convenient, nutritious choices when shopping at their grocery stores," said Tim Zimmer, vice-president of Sara Lee North American Fresh Bakery. "The Nutritional Spotlight helps individuals quickly identify Sara Lee products that contain the nutrients most important to them and their families." The Nutritional Spotlight highlights: * Calories, total fat, sodium and sugars Continued on Page 9

Table of Contents for the Digital Edition of Milling & Baking News - January 13, 2009


Milling & Baking News - January 13, 2009