Milling & Baking News - March 30, 2004 - 11

B U S I N E S S

Kerry Group makes another foray
into U.S. with more acquisitions
TRALEE, IRELAND - Kerry Group
P.L.C. said last week it has acquired two
more U.S. businesses.
The flavoring and ingredients marketer announced it has purchased Oregon
Chai, Inc., a Portland-based supplier of
Chai tea latte mixes, concentrates and
related products.
The company said it also bought Las

Vegas-based Extreme Foods, a developer
and marketer of fruit smoothies and coffee frappes for the food service industry.
Extreme's brand names include JetTea
and JetCafe.
Combined, Kerry said it paid $96 million for the businesses, which it sees fitting with two other recent acquisitions.
"The acquisition of Oregon Chai and

Extreme Foods complement the Group's
acquisitions of Stearns and Lehman
and Da Vinci Gourmet in fast-growing
segments of the U.S. branded beverage
food service and natural foods sectors,"
said Hugh Friel, Kerry Group's chief
executive. "With increasing demand
for health-conscious, natural, lifestyle
beverages, the addition of market-leading brands is a further significant step
in building Kerry's portfolio in the dynamic U.S. food service and all-natural
beverage sectors." MBN

I.B.C. details more financial woes
as downward sales trend continues
Continued from Page 1
earnings fell 39% as sales dipped 1%. (See
Milling & Baking News of Dec. 23, Page 1.)
If I.B.C.'s quarterly estimates prove correct, it would mark the sixth straight quarter in which its revenue was below the year
earlier results. Profits declined in each of the
company's past five fiscal quarters through
November 2003; the projected loss for the
recently completed quarter would mirror
a loss of $5.75 million in last year's fiscal
third quarter.
Having initiated a company-wide reorganization in mid-October aimed at
boosting sales of branded products, I.B.C.
also remains focused on cutting costs. The

company closed its Grand Rapids, Mich.,
plant in December and recently announced
plans to close its San Pedro, Calif.,
bakery.
In addition, Mike Powers,
I.B.C.'s general manager of sales
in Maine, confirmed to the Bangor
(Maine) Daily News last week that
the company April 3 will close its
distribution center in Aroostook
county, comprising the cities of
Presque Isle, Caribou and Houlton
along the Canadian border.
Meanwhile, I.B.C. recently introduced a low-carbohydrate bread
line and will unveil a new super

Kansas City Southern wins ruling
in Mexican rail acquisition case
Continued from Page 1
City Southern Railway, now may secure
remedies and damages in the matter. Arbitrators also will determine those issues.
K.C.S., already a minority owner of Grupo Transportacion Ferroviaria Mexicana,
S.A. de C.V. (Grupo T.F.M.), announced
plans last year to buy out its partners and a
20% interest in Grupo T.F.M. owned by the
Mexican government.
Once the deal concluded, K.C.S. planned
to change its name to NAFTA Rail, reflecting the combination of its lines with Grupo
T.F.M., which would create a commonly

owned rail network from the Midwest
through central Mexico.
However, shareholders of Grupo T.M.M.,
the majority owners of T.F.M., voted against
the complex deal in late August. Analysts
surmised that T.M.M., needing money to
pay defaulted loans, wanted to renegotiate
the deal to obtain more of a value-added
tax refund owed to T.F.M. by the Mexican
government. (See Milling & Baking News of
Aug. 26, Page 34.)
Terms of the deal call for K.C.S. to pay
$200 million in cash to T.M.M., which
would retain a 20% voting right in the

CanAmera Foods changes name to Bunge
Canada to reflect connection with parent
ST. LOUIS - Bunge North America, the
North American operating division of Bunge
Ltd., said its Canadian operation, CanAmera
Foods, will change its legal and operating
name to Bunge Canada, effective March 29.
The name change comes nearly two years
after Bunge's acquisition of CanAmera
bakingbusiness.com/world-grain.com

Foods in 2002 as part of Bunge's purchase
of Cereol S.A.
"Bunge Canada more accurately reflects
our connection with Bunge, the world's
leading oilseed processor," said Carl Hausmann, president and chief executive officer,
Bunge North America. "Creating a common

premium bread brand, Baker's Inn, in April.
Last week's announcement sent the company's shares lower. Shares fell as much as
14%, or $2.12, to $13.46 per share in trading
March 25, the day I.B.C. revealed its quarterly projections. MBN

newly formed NAFTA Rail. T.F.M. received
a NP2.1 billion ($204 million) certificate of
payment for the disputed value-added tax
in January from the Mexican government,
which later determined that the rail line's
documentation supporting the tax did not
meet government requirements.
K.C.S. had planned to help pay for the
Mexican government's stake in T.F.M. with
its share of the value-added tax refund,
which the company once estimated at $475
million to $500 million.
Despite last week's ruling, Grupo T.M.M.
said it still thinks that any transaction cannot occur without approval of its shareholders, adding that the arbitration panel
did not reach a conclusion on that specific
issue. MBN

brand with our parent and sister companies will allow us to take advantage of the
worldwide strength of Bunge while still enabling us to provide our customers with the
local, personalized customer service they've
come to expect from us."
CanAmera Foods is Canada's largest oilseed processor with five crushing plants and
eight state-of-the art processing and packaging plants located across Canada. MBN
Milling & Baking News, March 30, 2004 / 11

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Milling & Baking News - March 30, 2004

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