Milling & Baking News - February 24, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 24, 2009 / NEWS U.S. flour output down 0.6% in '08, still third largest on record Cargill Healthy Cookie Base shows whole grains can work in schools Story on Page 40 LATE NEWS PepsiCo to launch new snack for women BOCA RATON, FLA. - PepsiCo, Inc. last week detailed plans for the introduction of Smartfood popcorn clusters, its first snack targeted specifically at women. Speaking at the Consumer Analyst Group of New York Conference in Boca Raton, John Compton, chief executive officer of PepsiCo Americas Foods, said the snacks sold under the Frito-Lay banner "will be the right combination of sweet and salty and will be an excellent source of fiber and calcium." In addition, the snacks, which will roll out in March, will not have any artificial colors, flavors or preservatives, and will be packed in 120-calorie Continued on Page 8 WASHINGTON -Production of wheat flour by U.S. mills in 2008 decreased 0.6% from 2007 but still turned out to be the third largest total of record, according to preliminary data issued by the Census Bureau of the U.S. Department of Commerce. Output in the 2008 calendar year amounted to 416,284,000 cwts, down 2,552,000 from 418,836,000 cwts in 2007. It also was down 4,986,000, or 1.2%, from the record of 421,270,000 cwts set in 2000. The past year's output decrease was the first reduction in four years. It followed a recovery in flour production that began with a rise of hardly 1 million cwts in 2005 and continued in 2006 with a larger gain. These three years of increases reversed a period of years in which flour output had been on a downward course. Output in 2008 was up 21,584,000 cwts, or 5.5%, from the Bread Product Perspective recent low of 394,700,000 in 2002. Along with a small decrease in flour output, grind of wheat and production of millfeed in 2008 recorded significant reductions. The North American Millers' Association provides funding to the Census Bureau in support of the compilation of these statistics. Production in only seven years has exceeded the 400-million-cwt mark. In addition to the 2000 production peak at 421,270,000 cwts and second place 2007 at 418,836,000, 2008 was at 416,284,000, 1999 at 411,968,000, 2001 at 404,521,000, 1997 at 404,143,000 and 2006 at 403,391,000. The year 1998 followed at 398,914,000. The decrease of 2,552,000 cwts in 2008 was the sharpest since 2002 when output dropped 9,821,000. In contrast, the 2007 increase of 15,445,000 cwts was the Continued on Page 18 X Looking for Mr. Goodloaf T he past year could hardly be characterized as uneventful for the bread market. Reacting to record high baking ingredient prices and stunning market volatility, baking companies strove mightily to keep bread prices in line with costs. Later in the year, the industry encountered a very different environment with ingredient costs retreating (though remaining far above historical averages) but the economy turning sour. Looking back, a number of clear trends emerged in the macro bread market. Unit prices moved higher an average of 10% in the year ended Dec. 28, 2008, based on data from Information Resources, Inc., with private label up 13% and branded bread up 6% to 13%. Additionally, unit sales in outlets measured by I.R.I. declined for almost every company, while dollar sales were sharply higher. Against this backdrop of turmoil, new product innovation in 2008 probably was Continued on Page 29

Table of Contents for the Digital Edition of Milling & Baking News - February 24, 2009


Milling & Baking News - February 24, 2009