Milling & Baking News - June 29, 2010 - 12

Business 

American Italian Pasta Co. share price
(per share)

$60
$50
$40

From the March 2008 low of $4.26, AIPC shares have climbed 1,140%

$30
$20
$10
$0
Jan. Mar. May July Sept. Nov. Jan. Mar. May July Sept. Nov. Jan. Mar. May
2008
2009
2010
David P. Skarie, co-c.e.o. and president.
Reminding analysts of the significant
market share losses sustained by Post
since its April 2009 acquisition from
Kraft, Mr. Skarie said good progress has
been made in the company's efforts to
"reestablish our competitive position,"
both with customers and consumers.
Citing scanner data, he said volume market share grew nearly two
full points in the 11 months ended
in May 2010.
"Unfortunately, the cereal category
dynamics have become increasingly
competitive as the frequency of promotion, always high in the category
to begin with, has increased," he said.
In addition to the frequency of activity, the depth of activity has increased, Mr. Skarie said, adding that
"no material changes in the competitive environment are anticipated."
Because of the heightened promotional activity, the gap between

brand and private label prices has
narrowed or completely disappeared, Mr. Skarie said.
"Our private label cereal volume,
while significantly higher than two
years ago, has fallen below our expectations for the quarter," he said.
He said that Ralston Foods profitability also is suffering, primarily
because of volume shortfalls.
In questions and answers following prepared remarks by the executives, several analysts pressed the
Ralcorp executives over whether
pasta sales growth will be sustained.
Mr. Hunt noted possibilities for
cross merchandising Ralcorp products between categories.
"We are in the pasta sauce business," Mr. Hunt said. "We are seeing significant trends with our retail customers, particularly in this
kind of an economic environment
to promote, merchandise meal solution opportunities. So we see

New Horizons Baking to receive
grant for expansion
NORWALK, OHIO - NH Acquisition Corp., owner of New Horizons
Baking Co., Genesis Baking Co., and
Metraco Transportation, will receive
a $25,000 Rapid Outreach Grant from the
Ohio Department of
Development to offset costs associated
with the acquisition
of new machinery
and equipment in support of the
company's expansion project in
Norwalk. In addition to the acquisition of machinery and equipment,
the company said it will expand its
existing 68,000-square-foot building
12 / June 29, 2010 Milling & Baking News

to house a new English muffin production line.
Earlier this year New Horizons Baking received a $1 million grant under
the American Recovery and Reinvestment
Act's State Energy
Program for energyefficient upgrades.
New Horizons supplies sandwich buns
and English muffins to fast-food restaurants, including hamburger buns
to McDonald's. New Horizons operates a facility in Norwalk and another
one in Fremont, Ind. A third facility is
planned for Cleveland. MBN

pasta being such a base of that.
"Really I think the way that we
view the business is on its own. The
dynamics are very, very strong."
Pressed further on the possibility
that recent strong growth in the pasta
category could stall or even reverse,
the Ralcorp executives were adamant.
"Again, I would say that if you
look at the past three, four, five
years, even before the economy began to have its issues, the pasta category was demonstrating, good, good
growth," Mr. Hunt said. "So this is
not just driven by the economy.
"The other thing I would say is that,
as we have mentioned, there is an opportunity here in terms of new products that are oriented around more of a
health and wellness positioning."
Scott Monette, Ralcorp vice-president, treasurer and corporate development officer, added, "From a
strategic standpoint, I cannot think
of a stronger acquisition for us." MBN

DeBruce Grain expanding
Kansas elevator
KANSAS CITY - DeBruce Grain,
Inc. has acquired three flats adjacent to its Wichita, Kas., elevator.
DeBruce said the new addition
will have a storage capacity of
7,250,000 bus, which will expand
the total Wichita storage capacity to
29,709,000 bus.
"The new space will be connected
to our existing elevator, returning
to its original state with spouts
and drags," said Paul DeBruce,
chief executive officer of DeBruce
Grain, Inc. "We plan to have the
first phase finished in late June
and look forward to having the
entire project completed by the
end of August." MBN
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Milling & Baking News - June 29, 2010

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