Milling & Baking News - December 1, 2009 - 10



Weisser lays out Bunge ambitions
to grow in global sugar market
Continued from Page 1

low production cost and higher energy conversion ratio per unit of
input "bode well for its growth in
the Brazilian and international markets," he said.
"Long term, our goal
is to be a world leader
in sugar," Mr. Weisser
said. "Today we have
three active sugar mill
projects in Brazil. Within the next three to four Weisser
years, we should have
approximately 13 million tonnes of
milling capacity.
"We also are an active marketer
and trader of sugar worldwide. Last

year we purchased the trading unit
of Tate & Lyle, which provides us
great capabilities in these areas. This
year we are already trading around 5
million tonnes of sugar."
Asked by an audience member whether Bunge may become a
player in corn wet milling by constructing capacity, Mr. Weisser said
such an approach was not under
consideration.
"This would have to be in the form
of an acquisition, and you remember that last year we tried to merge
with Corn Products (International),"
he said. "It didn't work, but it stays
in our view that one day we hope
to be able to do that."

General Mills to eliminate some
products in U.S. retail unit
MINNEAPOLIS - General Mills,
Inc. plans to exit certain manufacturing products in its U.S. retail segment,
according to a Nov. 24 filing with the
Securities and Exchange Commission.
The company said the move reflects
a desire to rationalize capacity for more
profitable items, and it will include
products that generated approximately
$35 million in net sales in fiscal 2009.
"As a result of our decisions, we
recorded a $24.1 million non-cash restructuring, impairment and other
exit charge against the related longlived assets in the second quarter of
fiscal 2010 ending Nov. 29, 2009," the

company said. "There were no employees affected by these actions."
General Mills said it expects to record an additional $2.5 million in other
exit costs related to the actions by the
end of the second quarter of fiscal 2011.
Additionally, the company said the
fiscal 2010 second-quarter charge is in
line with its 2010 full-year guidance,
which includes approximately $30
million in restructuring, impairment
and other exit costs. General Mills
said it expects its second-quarter 2010
earnings per share to be at least $1.43,
which is the current ThomsonReuters
mean consensus estimate. MBN

 Sara Lee to close Greenville, S.C., bakery
GREENVILLE, S.C. - Sara Lee Corp. on Nov. 19 said it will halt operations at its Greenville frozen dough manufacfuring plant, a move that will
eliminate 200 jobs. The facility also is a
bagel bakery.
"This decision is related to the loss of
a major frozen dough customer," said
Mike Cummins, a spokesperson for Sara
Lee. "Due to its loss of volume, we determined that we wouldn't be able to operate the facility at a level that is
consistent with its financial expectations."
Mr. Cummins said Sara Lee has not decided when it will close the facility,
but noted that the timing depends on when the remaining bagel and frozen
dough production will be transferred to other facilities.
Sara Lee acquired the Greenville facility in 1984 from King's Hawaiian
Bakery. The plant produces frozen dough and bagels for the food service
industry across the company's Sara Lee and Jimmy Dean brands.
Sara Lee is providing severance packages and outplacement assistance to
employees who lose their jobs, he said. MBN

bakingbusiness.com / world-grain.com

Business

Mr. Weisser began his presentation
offering macro observations about
worldwide food demand. He noted
United Nation figures suggesting a
doubling of world food production
will be needed by 2050. Trade will
be critical to meet demand going forward, he said.
"The world's arable land and population are not distributed evenly," he
said. "Growing populations in places
like Asia, the Middle East and Northern Africa will increase their reliance
on countries in the Americas and Eastern Europe to supply greater quantities of agricultural commodities.
"Customers will require products
year round from all over the world
with high quality, safety and reliability. As a result, trade linkages will need
to handle greater volumes with more
efficiency, flexibility and security." MBN

Mission Foods expanding New
Brighton, Minn., tortilla plant
IRVING, TEXAS - Mission Foods Corp. is expanding its tortilla plant in New Brighton, Minn.,
by 45,000 square feet, to 145,000 square feet.
The new space is expected to be used for additional dry and refrigerated product storage.
In addition to the expansion, Mission Foods
intends to refurbish about 20,000 square feet of
office space and upgrade the facility's heating
and cooling systems.
The project is expected to be completed later
this month.
The New Brighton plant was built in the
1970s and was acquired by Mission Foods a
little more than four years ago. MBN

Grupo Bimbo prepays
$300 million in debt
MEXICO CITY - Grupo Bimbo S.A.B. de C.V.
has prepaid $300 million toward its $600 million revolver facility due July 2010. Following
the prepayment, Grupo Bimbo said its debt will
total NP37 billion ($2.87 billion) with a total
debt to EBITDA ratio of 2.5 times.
"We are very pleased that our operations
continue to generate healthy and strong free
cash flow, particularly following the expansion
of our U.S. business," said Guillermo Quiroz,
chief financial officer. "This enables us to fulfill
our commitment of maintaining a healthy credit profile while sustaining sufficient flexibility
in our balance sheet. As we outlined earlier in
the year following our acquisition in the United
States, we remain focused on disciplined execution and strict cash management."
Grupo Bimbo completed its acquisition of
the U.S. fresh bakery business of Weston Foods,
Inc. in January of 2009. MBN
Milling & Baking News December 1, 2009 / 11

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Milling & Baking News - December 1, 2009

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