Milling & Baking News - July 27, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 27, 2010 / FEATURE Strong whole wheat flour production in 2009-10 breaks two-year lull The natural sweetener requires a bulking agent, preferably a natural one Story on Page 25 LATE NEWS Nestle donates to whole grains study GLENDALE, CALIF. - The Nestle Research Center in Lausanne, Switzerland, has donated $500,000 to Cleveland Clinic's Lerner Research Institute for a collaborative study to examine the effects of a diet rich in whole grains on body composition and energy metabolism. The 26-week study will enroll 40 to 50 people who will eat meals provided by the Nestle Prepared Food Co.'s facility in Solon, Ohio. During the first phase, one group will eat a diet in which most of their carbohydrates come from whole grains while another group will eat a diet in which most of their carbohydrates come from refined Continued on Page 8 cwts in 2008-09 from the year before and was considerably larger than 513,000 cwts in 2007-08. The past Whole wheat flour production year-to-year change (in cwts) Crop year ended Stevia needs a partner in baking WASHINGTON - Production of whole wheat flour in 2009-10 reached an estimated 18,597,000 cwts, up 2,317,000 cwts, or 12%, from a revised 16,280,000 cwts in 2008-09 (years ended May 31). The jump in 200910 marks a renewal of rapid growth for U.S. whole wheat flour production following two lackluster years in 2007-08 and 2008-09. This estimate is based on data gathered from 23 flour milling companies with a combined daily capacity of 1,483,000 cwts, or 92%, of total U.S. flour milling capacity, according to the 2010 Grain & Milling Annual published by Sosland Publishing Co. The year-to-year increase of 2,317,000 cwts was more than five times greater than the gain of 433,400 2004 2005 2006 2007 2008 2009 2010 2,257,000 1,100,000 2,813,000 2,651,000 513,000 433,400 2,317,000 year 's increase was nearly as great as the jumps of 2,651,000 cwts in 200607 and 2,813,000 in 2005-06, the latter attributed to heightened emphasis on Continued on Page 18 Amid media speculation, analyst sees obstacles in Sara Lee sale DOWNERS GROVE, ILL. - Despite mounting speculation that Sara Lee Corp. is exploring the sale of its fresh baking business, a Wall Street analyst whose comments in May helped spur the speculation warned that "separating the Sara Lee bread brand from Sara Lee Corporation will be messy." The analyst, Robert Moskow of Credit Suisse, issued the comments July 20 in the midst of a flurry of press reports stating that Sara Lee has hired an investment banker to explore the possibility of selling the baking unit. Contacted by Milling & Baking News last week, Sara Lee declined to comment on the reports that it has hired an investment banker or that its baking business is for sale. "We think this is the right strategic move for Sara Lee," Mr. Moskow said of the possibility the baking business could be on the block. "The bread business is low margin, zero-growth, and Continued on Page 9

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Milling & Baking News - July 27, 2010