Food Business News - January 17, 2012 - 1

January 17, 2012

FOODBUSINESS NEWS
NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY

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Hostess Brands ﬁles for bankruptcy again
IRVING, TEXAS — Hostess Brands, Inc., the maker of Wonder Bread and Twinkies, once again has ﬁled for reorganization under Chapter 11 bankruptcy protection. The company said its current cost structure is not competitive due to legacy pension and medical beneﬁt obligations and restrictive work rules. Those factors combined with the economic downturn and a more difﬁcult competitive landscape led to the need for reorganization, the company said. The proceedings affect all of the company’s subsidiaries, and the company said with the ﬁling and court approval, it will receive a commitment Continued on Page 8

Orange juice futures set, then retreat from record highs on frost, fungicide concerns
Story on Page 18

ADM to cut global workforce by 3%
DECATUR, ILL. — Archer Daniels Midland Co. has unveiled plans to streamline its organizational structure, including reducing its global workforce by about 3% to enhance the cost structure of the company. Approximately 1,000 positions, primarily salaried, will be eliminated, the company said. To help achieve the reduction, ADM said it will offer a voluntary early retirement incentive in the United States. ADM said it expects the job cuts and early retirement incentive, in concert with other targeted cost reductions, will reduce its annual pre-tax expenses Continued on Page 13

The gluten-free quandary
he availability of gluten-free products may be mainstream, but with only 1% of U.S. consumers actually having celiac disease, one expert believes the grain-based foods industry needs to step up efforts to educate consumers about the reality of the diet. Suzy Badaracco, president of Culinary Tides, an Oregon-based market research ﬁrm, attributed celebrity endorsements, mistaken perceptions of weight loss

and spillover effect from other lowcarbohydrate diets to the popularity. But even the Food and Drug Administration states on its web site there is no nutritional advantage for those without celiac disease to go gluten-free and it is not meant to be a diet craze. “Consumers are looking for ways to be healthier and gravitating to whatever they see … but it’s not always driven from a dietitian or a medical perspective,” said Beth Peta, marketing manager for Cargill, Minneapolis. Some growth in the diet may be seen from those who use the diet for other medical conditions such as multiple sclerosis, rheumatoid arthritis and autism, said Beckee Moreland, director of glutenfree industry initiatives for the National Foundation for Celiac Awareness. She also said some doctors have recommended breastfeeding mothers use the diet. Through it all, the U.S. market grew to Continued on Page 22

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Food Business News - January 17, 2012

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