Milling & Baking News - July 14, 2009 - 10

Business 

Stella D'oro to close Bronx
bakery following lengthy strike
BRONX, N.Y. - Stella D'oro Biscuit
Co., a manufacturer of cookies, breakfast foods, biscotti and breadsticks, is
planning to close its Bronx bakery operations in October. The announcement
was made a day before the company
extended an offer to the 136 bakery
workers who have been on strike since
last August to return to work on July 7.
"Since the strike began almost a year
ago, the company has been actively
evaluating strategic alternatives to its
high cost of production in the Bronx
facility," Stella D'oro said in a July 6
statement. "In light of the alternatives
currently under review, the company
feels confident it can close the Bronx
bakery operations in approximately
90 days, and still assure a continuing
supply of high quality Stella D'oro
products (during this transition and
for the long term) to its retail partners
and distributors that have stood by the
company during this difficult period."
In an official statement, the company did not disclose how it intends
to supply its products once the bakery
closes in October. A company executive
reached by Milling & Baking News said
options other than outsourcing production were under strong consideration
but declined to comment further.

The July 7 decision by Stella D'oro
to invite workers back followed
a June 30 judgment by a National
Labor Relations Board administrative
law judge ordering the company to
reinstate the workers at pay and benefit levels in effect before the strike
began. While Stella D'oro called the
judge's decision "completely flawed"
and vowed to challenge the recommendation before the full N.L.R.B.,
the Bakery, Confectionery, Tobacco
Workers and Grain Millers International Union Local 50 representing
the striking workers said the decision
"vindicates the struggles and sacrifices of our members at Stella D'oro."
According to the B.C.T.G.M. Local
50, the strike was triggered by an illegal refusal to provide information
necessary to good faith bargaining by
Stella D'oro. The B.C.T.G.M. is in the
process of considering its next actions.
Stella D'oro said the decision to close
the Bronx bakery was not made in
haste or without significant planning.
"What the union leadership has
failed to grasp is that any business
that cannot operate profitably must
seek changes that will enable it to do
so," Stella D'oro said. "Where labor
costs are a significant component of

Cereal Ingredients honored as
Kansas exporter of the year
OVERLAND PARK, KAS. - Cereal Ingredients Inc. was honored June 25 as the
winner of the Kansas Governor's Exporter
of the Year. The honor was presented at
the annual Kansas Cavalry Encampment
at Johnson County Community College in
Overland Park.
The award was presented by Governor Mark Parkinson. Also honored by
the governor was BTI Wind Energy of
Greensburg, Kas.
"We are honored to present BTI of
Greensburg and Cereal Ingredients of
Leavenworth with the state's top business
awards," Mr. Parkinson said. "These companies embody Kansas ingenuity and values, and they illustrate what a great place
Kansas is to live, work and do business."
According to the Kansas Department of
Commerce, C.I.I. exports nearly 30% of its
products to 19 countries and increased export sales by 76% between 2005 and 2008.
"The majority of the company's products
are specially formulated to fit individual
10 / July 14, 2009 Milling & Baking News

customer needs," the department said.
C.I.I. specializes in the production of
food particulates that add flavor, texture
and color to baked foods and ready-to-eat

the cost of goods, as they are in the
baking business, a restructuring of
labor costs is essential to business
recovery. When such a labor cost restructuring cannot be achieved, management must look to other alternatives to maintain the business. By
refusing to compromise and insisting on maintaining a high labor cost
structure, the union leadership has
ensured that the jobs that they were
trying to protect would eventually
disappear from the Bronx forever."
Stella D'oro, which was established
by Joseph Kresevich and his wife,
Angela, in 1930, was acquired by
private equity firm Brynwood Partners V, LP from Kraft Foods Global,
Inc. in January 2006. Since that time,
Stella D'oro said Brynwood has
made "substantial" investments in
the Bronx bakery operations in an effort to return it to profitability.
"Since purchasing the company, the
owners have continually supported
the company and have funded approximately $6 million of capital to
fund working capital, operating losses, and new equipment purchases,"
Stella D'oro noted. "The company's
expectation was that with the owner's
willingness to continue to invest in the
business, together with some negotiated labor concessions, the company
could get the Bronx bakery operations
back on track to profitability." MBN

cereals. Other food applications include ice
cream, nutritional foods, streusel and other
crunches and toppings.
Other finalists for the exporter award
included two other companies with grainbased foods links - Research Products Co.,
Salina; and Great Western Manufacturing,
Inc., Leavenworth. MBN

At a June 25 ceremony in which Cereal Ingredients Inc. was honored as the Kansas Exporter
of the Year, were, from left, John Harper, C.I.I. international customer service manager, and
his wife, Misty Harper; Kim Bledsoe of C.I.I.; Kansas Governor Mark Parkinson; and Robert W.
Hatch, chief executive officer of C.I.I.
bakingbusiness.com / world-grain.com


http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - July 14, 2009

Table of Contents for the Digital Edition of Milling & Baking News - July 14, 2009

Contents
Milling & Baking News - July 14, 2009 - 1
Milling & Baking News - July 14, 2009 - 2
Milling & Baking News - July 14, 2009 - 3
Milling & Baking News - July 14, 2009 - Contents
Milling & Baking News - July 14, 2009 - 5
Milling & Baking News - July 14, 2009 - 6
Milling & Baking News - July 14, 2009 - 7
Milling & Baking News - July 14, 2009 - 8
Milling & Baking News - July 14, 2009 - 9
Milling & Baking News - July 14, 2009 - 10
Milling & Baking News - July 14, 2009 - 11
Milling & Baking News - July 14, 2009 - 12
Milling & Baking News - July 14, 2009 - 13
Milling & Baking News - July 14, 2009 - 14
Milling & Baking News - July 14, 2009 - 15
Milling & Baking News - July 14, 2009 - 16
Milling & Baking News - July 14, 2009 - 17
Milling & Baking News - July 14, 2009 - 18
Milling & Baking News - July 14, 2009 - 19
Milling & Baking News - July 14, 2009 - 20
Milling & Baking News - July 14, 2009 - 21
Milling & Baking News - July 14, 2009 - 22
Milling & Baking News - July 14, 2009 - 23
Milling & Baking News - July 14, 2009 - 24
Milling & Baking News - July 14, 2009 - 25
Milling & Baking News - July 14, 2009 - 26
Milling & Baking News - July 14, 2009 - 27
Milling & Baking News - July 14, 2009 - 28
Milling & Baking News - July 14, 2009 - 29
Milling & Baking News - July 14, 2009 - 30
Milling & Baking News - July 14, 2009 - 31
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Milling & Baking News - July 14, 2009 - 35
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Milling & Baking News - July 14, 2009 - 37
Milling & Baking News - July 14, 2009 - 38
Milling & Baking News - July 14, 2009 - 39
Milling & Baking News - July 14, 2009 - 40
Milling & Baking News - July 14, 2009 - 41
Milling & Baking News - July 14, 2009 - 42
Milling & Baking News - July 14, 2009 - 43
Milling & Baking News - July 14, 2009 - 44
Milling & Baking News - July 14, 2009 - 45
Milling & Baking News - July 14, 2009 - 46
Milling & Baking News - July 14, 2009 - 47
Milling & Baking News - July 14, 2009 - 48
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https://www.nxtbook.com/sosland/mbn/2016_09_27
https://www.nxtbook.com/sosland/mbn/2016_09_13
https://www.nxtbook.com/sosland/mbn/2016_08_30
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https://www.nxtbook.com/sosland/mbn/2016_08_02
https://www.nxtbook.com/sosland/mbn/2016_07_19
https://www.nxtbook.com/sosland/mbn/2016_07_05
https://www.nxtbook.com/sosland/mbn/2016_06_21
https://www.nxtbook.com/sosland/mbn/2016_06_07
https://www.nxtbook.com/sosland/mbn/2016_05_24
https://www.nxtbook.com/sosland/mbn/2016_05_10
https://www.nxtbook.com/sosland/mbn/2016_04_26
https://www.nxtbook.com/sosland/mbn/2016_04_12
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https://www.nxtbook.com/sosland/mbn/2016_03_01
https://www.nxtbook.com/sosland/mbn/2016_02_16
https://www.nxtbook.com/sosland/mbn/2016_02_02
https://www.nxtbook.com/sosland/mbn/2016_01_19
https://www.nxtbook.com/sosland/mbn/2016_01_05
https://www.nxtbook.com/sosland/mbn/2015_12_22
https://www.nxtbook.com/sosland/mbn/2015_12_08
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https://www.nxtbook.com/sosland/mbn/2015_06_09
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https://www.nxtbook.com/sosland/mbn/2015_04_28
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https://www.nxtbook.com/sosland/mbn/2015_03_31
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https://www.nxtbook.com/sosland/mbn/mbn/2015_03__03
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https://www.nxtbook.com/sosland/mbn/2015_01_20
https://www.nxtbook.com/sosland/mbn/2015_01_06
https://www.nxtbook.com/sosland/mbn/2014_12_23
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https://www.nxtbook.com/sosland/mbn/mbn_2014_11_25
https://www.nxtbook.com/sosland/mbn/2014_11_11
https://www.nxtbook.com/sosland/mbn/2014_10_28
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https://www.nxtbook.com/sosland/mbn/214_08_19
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https://www.nxtbook.com/sosland/mbn/2014_07_22
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https://www.nxtbook.com/sosland/mbn/2014_03_18
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https://www.nxtbook.com/sosland/mbn/2014_02_18
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https://www.nxtbook.com/sosland/mbn/2014_01_21
https://www.nxtbook.com/sosland/mbn/2014_01_07
https://www.nxtbook.com/sosland/mbn/2013_12_24
https://www.nxtbook.com/sosland/mbn/2013_12_10
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https://www.nxtbook.com/sosland/mbn/2013_09_17
https://www.nxtbook.com/sosland/mbn/2013_09_03
https://www.nxtbook.com/sosland/mbn/2013_08_20
https://www.nxtbook.com/sosland/mbn/2013_08-06
https://www.nxtbook.com/sosland/mbn/2013_07_23
https://www.nxtbook.com/sosland/mbn/2013_07_09
https://www.nxtbook.com/sosland/mbn/2013_06_25
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https://www.nxtbook.com/sosland/mbn/2013_05_28
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https://www.nxtbook.com/sosland/mbn/2013_03_19
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https://www.nxtbook.com/sosland/mbn/2013_01_22
https://www.nxtbook.com/sosland/mbn/2013_01_08
https://www.nxtbook.com/sosland/mbn/2012_12_25
https://www.nxtbook.com/sosland/mbn/2012_12_11
https://www.nxtbook.com/sosland/mbn/2012_11_27
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https://www.nxtbook.com/sosland/mbn/2012_09_18
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https://www.nxtbook.com/sosland/mbn/2012_08_21
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https://www.nxtbook.com/sosland/mbn/2012_01_24
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https://www.nxtbook.com/sosland/mbn/2011_12_27
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https://www.nxtbook.com/sosland/mbn/2011_03_22
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https://www.nxtbook.com/sosland/mbn/2011_02_22
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https://www.nxtbook.com/sosland/mbn/2010_03_23
https://www.nxtbook.com/sosland/mbn/2010_03_09
https://www.nxtbook.com/sosland/mbn/2010_02_23
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https://www.nxtbook.com/sosland/mbn/2010_01_26
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https://www.nxtbook.com/sosland/mbn/2004_08_17
https://www.nxtbook.com/sosland/mbn/2004_08_10
https://www.nxtbook.com/sosland/mbn/2004_08_03
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