Milling & Baking News - December 23, 2003 - 11

B U S I N E S S

Parmalat Finanziaria said ready
to sell its U.S. cookie business
PARMA, ITALY - Parmalat Finanziaria
S.p.A. has retained an investment bank
to sell its U.S. bakery business, news
wire services reported last week amid
extensive media coverage of the Italian
company's financial problems.
Early last week the Parmalat board of
directors accepted the resignation of Calisto Tanzi, company founder, as chairman. All but one of the board members
- Stefano Tanzi, a son of Calisto Tanzi
- also resigned.
In commenting on news reports that
the U.S. baking business of Parmalat

- which includes Mother's Cookies
and Archway - would be sold, David
Nelson, an analyst
with Credit Suisse First
Boston, noted that Parmalat's dollar share of
the U.S. cookie category
has declined steadily
since 1999.
"It now has a 7 share with
Archway at 3.4% and Mother's
at 2.8%," Mr. Nelson said. He placed the
company's sales at about $200 million.
In announcing the management

changes last week, Parmalat's new
chairman, restructuring expert Enrico
Bondi, said Lazard & Co. Ltd. and Mediobanca would advise the company on
a financial restructuring plan. A report
on the company's status and on restructuring guidelines will be
presented by the end of
January, he said.
Speculation
about
Parmalat's finances arose
after it said it would be
unable to redeem a €150million ($180-million) bond
issue. A last-minute bank loan and the accelerated reimbursement of tax credits by
the Italian treasury saved Parmalat from
default, the Financial Times said. MBN

Hardee's, Carl's Jr. chains marketing
low-carbohydrate hamburgers without the bun
CARPINTERIA, CALIF. - The Hardee's
and Carl's Jr. restaurant chains of CKE Restaurants, Inc. last week introduced low-carbohydrate hamburgers without buns.
Hardee's, which operates 2,134 outlets,
said its "Low Carb Thickburger" contains
5 grams of carbohydrates, or 3 net grams of
carbohydrates (carbohydrates less fiber and
sugar alcohols).
The "sandwich" is served in a paper
"half wrap" and comes in its own cardboard carton, "both of which make eating
a lettuce-wrapped, bun-less burger a much
easier task than would be the case with typi-

cal fast-food packaging," CKE Restaurants
said.
Brad Haley, executive
vice-president of marketing for Hardee's,
said the company
introduced the
bun-less hamburger
after
learning
that
"about 32 million Americans
are currently reducing carbohydrates in their di-

Talks in southern California grocery labor
dispute resume after mediator's request
WASHINGTON - Negotiations in the
southern California grocery store labor
dispute were scheduled to resume late last
week, ending an 11-day recess that began
when talks broke off Dec. 7.
Peter J. Hurtgen, director of the Federal
Mediation and Conciliation Service, planned
to mediate the discussions after striking and
locked out workers and management of
Kroger Co.'s Ralphs division, Safeway Inc.'s

Vons division and Albertson's, Inc., agreed
to return to the bargaining table.
"Our goal in the mediation process is to
build understanding and to move the parties toward an agreement," Mr. Hurtgen
said. "In this case, we are dealing with particularly difficult issues."
Mr. Hurtgen helped negotiate a late October settlement in a similar grocery store
labor dispute in the St. Louis area. Another

ets, and that number is growing every day."
Suggested retail price of the product is
$2.89.
At the 1,003 Carl's Jr. restaurants, the lowcarbohydrate hamburger is being sold as
"The Low Carb Six Dollar Burger," with 55 fewer grams of
carbohydrates than the
original version. The
lettuce-wrapped
burger contains
6 grams of carbohydrates and
4 grams of net
carbohydrates.
The suggested
retail price is
$3.95. MBN

strike by 3,300 workers of 44 Kroger stores
in West Virginia, Ohio and Kentucky ended
Dec. 11 when members of the United Food
and Commercial Workers Local 400 ratified
a new contract.
The two-month old southern California
work stoppage, affecting about 70,000
U.F.C.W. workers and 859 stores, has
proved particularly divisive as management and union members battle over health
care, wages and other issues. Federal mediators began facilitating negotiations in
mid-November. MBN

Cargill launches bid for
Romanian grain company

Bunge issues notes in
order to reduce debt

BUCHAREST, ROMANIA - Cargill, Inc. launched a public tender to
purchase the shares of Comcereal S.A. Alexandria, a Romanian grain
silo company. According to Cargill, the acquisition will strengthen
the company's investments in Romania from its two existing grain
silos to include Comcereal S.A. Alexandria's comprehensive network
of grain storage facilities in the Romanian grain belt.
The public tender of the shares will close Jan. 14, at which point
the deal will be subject to approval by Romanian regulatory authorities, Cargill said. MBN

WHITE PLAINS, N.Y. - Bunge Ltd. announced it has priced an
offering pursuant to Rule 144A and Regulation S of the Securities Act of 1933, as amended, of $500 million aggregate principal
amount of 4.375% senior notes due 2008.
The senior notes will be issued by Bunge's wholly own subsidiary, Bunge Limited Finance Corp., and guaranteed by Bunge.
Bunge said it intends to use the net proceeds from the offering
to reduce outstanding indebtedness. MBN

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Milling & Baking News, December 23, 2003 / 11

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Milling & Baking News - December 23, 2003

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