Milling & Baking News - August 25, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS AUGUST 25, 2009 / Signature Interview  NEWS Simple solutions to 'Mission Impossible' K. Dun Gifford embraces straightforward approach to change eating behaviors W Sustainability surveys Story on Page 26 LATE NEWS Folgers integration boosts Smucker net ORRVILLE, OHIO - The integration of the Folgers coffee business continued to drive a profit surge at the J.M. Smucker Co., as earnings in the first quarter ended July 31 climbed to $98,063,000, equal to 83c per share on the common stock, up from $42,291,000, or 77c per share, in the same period a year ago. Sales for the quarter increased 58% to $1,051,526,000. Segment profit and sales in the U.S. retail consumer unit rose 6% and 12%, respectively, in the first quarter. Sales were driven by a 7% volume gain led by Jif peanut butter, Smucker's fruit spreads, and Hungry Jack Continued on Page 8 hen it comes to rising rates of obesity and associated health problems, there is no shortage of diagnosticians. Large numbers of educators, politicians, scientists and others are quick to cite terrifying data about the number of Americans who are overweight and the consequences of overeating. Against this backdrop, K. Dun Gifford is an anomaly. For the past Gifford 20 years, the president and founder of Boston-based Oldways has pursued simple solutions to America's thorny eating challenges. Measured by one indicator, the proliferation of the Whole Grain Stamp, the most visible outgrowth of his efforts, Mr. Gifford is making a difference. Less than five years after its introduction, the stamp now appears on more than 2,600 products with billions of dollars of sales. The stamp is emblematic of the Oldways approach seeking positive eating changes with positive messages. Still, Mr. Gifford's mission easily could be viewed as toward its beginning - the race for a tortoise and not a hare. Certainly, many signs suggest the rising rates of obesity have not reversed. From Mr. Gifford's perspective, changing eating behaviors is a difficult task, and one that requires patience and perseverance. Twenty years is a mere blip in the timeline of American dietary patterns, and Mr. Gifford's initiatives all seek to increase awareness. Toward that end, the Mediterranean Foods Continued on Page 20 Boosted by gain, Flowers earnings up 27%; sales forecast trimmed THOMASVILLE, GA. - Success of strategic acquisitions combined with improved efficiencies helped drive a sharp earnings gain at Flowers Foods, Inc. in the second quarter ended July 18. Reflecting weakness in the food service sector as well as the vending cake business, the company lowered its sales growth guidance for 2009 but held its earnings forecast steady. Net income in the second quarter was $30,341,000, equal to 33c per share on the common stock, up from $23,949,000, or 26c per share, in the same period a year ago. The most recent quarter included a $3,013,000 gain on acquisition related to the Cedar Rapids, Iowa, bread mix plant acquired from General Mills, Inc. in May. Net sales were $614,448,000, up 14% from $540,656,000 in the second quarter of fiscal 2008. The jump in sales was attributed to a 10.6 percentage point gain from acquisitions and a 4.7 point boost from favorable pricing/mix, partially offset by a 1.7 point decline in volume. Flowers said the strong sales reflected strength in its branded retail business, which grew 10.7% in the quarter. "Our team continues to deliver good Continued on Page 27

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Milling & Baking News - August 25, 2009