Milling & Baking News - September 22, 2009 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 22, 2009 / NEWS Census finds lackluster growth for commercial bakeries in 2002-07 Agriculture and climate change Story on Page 34 LATE NEWS Sara Lee set to launch new bread and bun NEW YORK - Bread containing DHA omega-3 fatty acids and thin whole wheat buns will be launched by Sara Lee Fresh Bakery "in the near term," said James Nolan, an executive vice-president of Sara Lee Corp. and chief executive officer of the Fresh Bakery business. Mr. Nolan spoke Sept. 16 in New York at the company's "Meet the Management Analyst Day." Soft & Smooth with DHA Omega 3 reflects "the growing awareness of DHA omega-3 and the positive effects it can have on childhood development," Mr. Nolan said. In the next few weeks, Sara Lee is launching EarthGrains 100% natural Continued on Page 8 WASHINGTON - Limited growth was achieved by the commercial bakeries industry in 2007 versus 2002 according to quinquennial data published by the U.S. Bureau of the Census in the 2007 Economic Census. At the same time, several key baking categories, including bread, enjoyed solid growth during the period. Total value of shipments from the commercial bakeries industry was $25,642,661,000 in 2007, up 8% from $23,814,681,000 in 2002, equating to a simple average of 1.6% annual growth during the period. By a number of measures, the pace of growth in the early and mid-2000s was uncharacteristically sluggish. In the previous five Census reports dating back to the early 1980s, five-year growth in value of shipments ranged from a low of 11% to a high of 42%. The growth from 2002 to 2007 was modest compared to most other major categories in grainbased foods and food processing generally. Within grain-based foods, the value of shipments growth for commercial bakeries at 8% eclipsed only cookies and crackers, at 4%, and dry pasta at 7%. Fastest growing in grain-based foods was tortillas, at 71%. Despite the slower growth, commercial bakeries remained by far the largest segment of the grain-based foods Continued on Page 25 McDonald's v.p. highlights central baking role in new product success CHICAGO - "Baking is the star," when it comes to new products at McDonald's, said Bob Marshall, a vice-president at McDonalds' Corp., Oak Brook, Ill. Mr. Marshall spoke Sept. 11 at the 2009 Long Co. annual conference at the Peninsula hotel in Chicago. "When you look at snack wraps, our new Angus products, and McGriddles, baking has been the star with the most successful new products at McDonald's," Mr. Marshall said. "There are many exciting things happening, and baking will remain the star." Data supporting importance of baked foods to McDonald's were compelling. In addition to more than 500 million bagels per year, Mr. Marshall said McDonald's currently sells 612 million biscuits, 512 million McGriddles, 500 million fruit pies and 465 million dozen buns each year. Sixteen different baking companies currently supply McDonald's. The optimism expressed about baking and successful products may have seemed far-fetched earlier in the decade. Mr. Marshall acknowledged that the company was "not in great shape" in 2001. With investments in external restaurant Continued on Page 36

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Milling & Baking News - September 22, 2009