Baking & Snack - March 2009 - 16

Post-bankruptcy IBC introduces
'natural' bread
Fresh off emerging from bankruptcy
last month, Interstate Bakeries
Corp., Kansas City, MO, announced its first complete line of
bread products to be introduced in
several years. Nature's Pride bread
is being billed by IBC as the "first
100% natural brand of bread
available across the country." The
bread contains no artificial flavors or colors, no high-fructose
corn syrup, no trans fats and no
artificial preservatives.
"The popularity of natural
food products continues to increase as more and more consumers look for wholesome and healthy foods
that they can feel good about feeding their
families," said Stan Osman, vice-president
of marketing for IBC. "Nature's Pride
promises to deliver what these consumers
want - a 100% natural brand of healthy,
great tasting breads. Consumers can be
sure that if the label says Nature's Pride it
must be 100% natural."
While several bread brands on the market are natural, most are limited to specific
regions of the country or are part of product lines that also include varieties with
artificial ingredients.
Nature's Pride bread is available in Premium Hearty Bread and Traditional Soft
Bread. The Premium Hearty Bread is pack-

aged in 24-oz loaves in eight varieties:
100% Whole Wheat, 12-Grain,
Healthy Multi-Grain, Country
White, Double Fiber, Stone Ground
Whole Wheat with Honey, Country Potato and Butter Milk. The
Traditional Soft Bread is packaged in 20-oz loaves in the two
varieties: 100% Whole Wheat
and Honey Wheat.
Rich Seban, chief marketing
officer for IBC, said the launch
is exciting given its significance
as IBC hopes to begin "a new
chapter of success" following
its emergence from bankruptcy.
IBC said it will support the new product
launch with a national advertising campaign that touts the brand's promise of
"Nothing less than 100%."

IBC moves headquarters
IBC announced in February that it is
moving its headquarters to Dallas, TX,
from Kansas City, MO. The transition
will take place gradually over the next
several months and will involve about
10 top executives and their support
staff. IBC said approximately 600
employees will remain in the Kansas
City area, including 200 at the
company's existing headquarters.

Kellogg sets $1 billion cost-savings goal
The Kellogg Company, Battle Creek, MI,
set a goal of achieving $1 billion in cost
savings over the next three years through
a series of initiatives ranging from a
complete review of the company's indirect
procurement and purchasing to implementation of K-LEAN, a program which
stands for Lean, Efficient, Agile, Network.
Speaking at the Consumer Analyst
Group of New York Conference in Boca
Raton, FL, David Mackay, president and
c.e.o. at Kellogg, said the company hopes
to have $1 billion of annual savings in 2011
that it currently does not have in 2009.
To achieve this, Kellogg plans to draw

from K-LEAN, which is being rolled out in
North America, Europe and Latin America
and is focused on process optimization,
asset utilization and waste management.
"We had always seen our manufacturing
facilities as being world-class," he said. "We
didn't think there were real savings opportunities there. We brought in some external
consultants to really challenge whether
that was actually true or not, and I'd have
to say that we've been quite surprised at
some of the opportunities that they've
identified with our workforce to actually
go for significant benefits over and above
what we thought were possible."

Kraft highlights
turnaround, unveils
new logo
Kraft Foods, Inc. unveiled a new corporate logo and brand identity during the
Northfield, IL-based company's presenta-

tion to the Consumer Analyst Group of
New York Conference in Boca Raton, FL.
The announcement was delivered by Irene
Rosenfeld, Kraft Foods chairman and c.e.o.
The new logo features seven "flavor
bursts," that represent different divisions
of Kraft's business, as well as the slogan
"Make today delicious." It will appear on
the back and side panels of Kraft foods.
"'Make today delicious' defines, unites
and inspires us," Ms. Rosenfeld said. "During the past two years, we've built a solid
foundation by reinvesting in our brands,
putting a new organization in place and
improving our cost structure. As the next
step in our turnaround, we're adding three
new ingredients to our recipe for success
- a higher purpose that acts as a common
call to action, values in action that guide
our behavior and a new look and feel to
visually depict our renewed energy."
Ms. Rosenfeld highlighted the company's solid momentum as it enters the
final year of its 3-year turnaround. First,
she said general managers, who have been
given more responsibility as part of the
turnaround, are reacting faster to market
changes and delivering improvements in
revenues, operating income and cash flow.
Second, efforts to reframe categories
have lived up to expectations and helped
revitalize new product growth. A third
strategy, investing in sales as a sustainable
competitive advantage, also has gone well.
Finally, Ms. Rosenfeld said the company's restructuring program that included
streamlining operations through the
closing of 36 manufacturing facilities has
delivered $1.1 billion in savings to date
with an additional $200 million in
incremental savings expected in 2009.
March 2009 / BAKING & SNACK

Baking & Snack - March 2009

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