Baking & Snack - February 2009 - 15

NEWSFRONT
Recalls continue to grow in
Salmonella outbreak

A recall of peanut butter linked to a
foodborne illness outbreak of Salmonella typhimurium has spread widely as
food companies that bought peanut
butter paste from the Peanut Corporation of America (PCA) continue to recall
products that may contain ingredients
manufactured at the supplier's facility
located in Blakely, GA.
As of Jan. 28, more than 400 products have been recalled from a wide
variety of companies producing cookies, crackers, cereal, candy, ice cream
and pet food. The Food and Drug Administration (FDA) is working to ensure
companies that received the product
from PCA have issued recalls of their
products. The agency is focused on identifying how the PCA's products became
contaminated and continues to trace
where the products were sold throughout the food manufacturing supply chain.
As the investigation continued, officials
with FDA and the Centers for Disease
Control and Prevention reported findings that PCA's manufacturing plant had

identified the presence of Salmonella on
12 different occasions during 2007 and
2008. Despite the findings, investigators
said the company continued to ship
product to customers. On Jan. 29, PCA
voluntarily recalled all peanuts and peanut products processed at the Blakely,
GA, facility since Jan. 1, 2007. The long list
of product recalls included some of the
industry's largest companies.
"The food industry upholds certain
operating standards, and we are proud
that we exceed these standards in our facilities," said David Mackay, president and
c.e.o. of Kellogg. "Events of the last week
suggest there was a breach in a supplier's
process that is unacceptable to Kellogg,

our customers and our consumers."
A searchable database at FDA's Web
site (www.FDA.gov) is available for
consumers to use to ensure they are
not in possession of potentially contaminated products.
In addition, the number of companies
announcing they are not a part of the
recall continues to grow. J.M. Smucker Co.,
Orrville, OH; Lance, Inc., Charlotte, NC; Tasty
Baking Co., Philadelphia, PA; Frito-Lay,
Plano, TX; Snyder's of Hanover, Hanover,
PA, The Hershey Co., Hershey, PA; Quaker
Oats North America, Chicago, IL; Barbara's
Bakery, Petaluma, CA; and ExtendSnacks,
St. Louis, MO; have all issued statements
noting they do not source product from
PCA. Also, both bakers of Girl Scout cookies - Virginia-based ABC Bakers and
Kentucky-based Little Brownie Bakers -
said all peanut butter Girl Scout cookies
are safe to eat.
More than 500 people have been
infected with the outbreak strain of Salmonella, according to the CDC, and eight
deaths have been linked to the outbreak.

IBC emerges from bankruptcy
Nearly 4½ years after filing for Chapter 11
bankruptcy protection, wholesale baker Interstate Bakeries Corp., Kansas City, MO,
on Feb. 3 finally emerged from bankruptcy
after successfully concluding its financial
reorganization with the unanimous support of union locals and secured creditors.
"Today marks a new beginning for Interstate Bakeries," said Craig Jung, c.e.o.,
IBC. "We are now a stronger and more
competitive company. With this period
behind us, we can now unleash and empower 22,000 IBC employees to better
serve our consumers and customers,
revitalize our core brands, and launch
product innovation that will profitably
grow our business."
Mr. Jung thanked IBC's employees for
their sacrifices and union leaders for their
commitment to saving jobs during the
proceedings. "Their actions made possible
BAKING & SNACK / February 2009

the financing required to execute a business plan that will build competitive advantage and secure our company's future,"
he said. Mr. Jung also thanked Ripplewood
Holdings LLC, a private equity firm, for
its significant investment in the company,
as well as all the other companies who
are participating in IBC's new financing,
including GE Capital, J.P. Morgan, McDonnell Investment Management LLC,
Monarch Alternative Capital LP and Silver
Point Finance, LLC.
John Cahill and Greg Murphy, industrial partners of Ripplewood who will
now serve on IBC's board of directors,
said they were pleased to have closed the
transaction. "IBC has outstanding brands
in the major bread and snack cake categories that we believe best position the company for future success," Mr. Cahill and
Mr. Murphy said.

Top 3 Ways Consumers
are Cutting Costs
1. Relying on food staples and
value items
2. Cooking from scratch rather
than buying more expensive
prepared items
3. Buying private label or
store brands
The Nielsen Co.

http://www.FDA.gov

Baking & Snack - February 2009

Table of Contents for the Digital Edition of Baking & Snack - February 2009