Milling & Baking News - March 30, 2004 - 15

I N D U S T R Y

A C T I V I T I E S

Prince certain baking's difficulties
will result in positive changes

cookie and cracker manufacturer, specializing in Girl Scout cookies, private
label and contract manufacturing, and
Norse Dairy Systems makes products
Continued from Page 1
1800s. "Weston is a committed baker," for the frozen novelties business.
change in the next two years. You would Mr. Prince said. "Weston's commitment
Through much of the 1990s, the
think with consumption falling that certainly has helped build my commit- Maplehurst business did not perform up
wheat prices would decline, but that ment."
to expectations, prompting Mr. Prince
hasn't been the case. Exports to China
A native of Ottawa, Mr. Prince spent to direct a restructuring of the business
are up sharply. In energy, natural gas the first 20 years of his career in Canada in 1998. Within a year, he was able to
prices are strong. All these forces are with Weston, and headed the company's speak hopefully about Maplehurst,
coming together at the same time, which baking business there from 1984 until suggesting that its simplified structure
is unprecedented in my experience. 1994. When Weston named Mr. Prince and reduced product portfolio would
Consumption pressures, changes in the president of Stroehmann Baking Co. in position the business for growth. The
retail landscape, these are also unprec- 1994, it was clear Mr. Prince had a con- strategy has worked, Mr. Prince said
edented. The stage is set for more and siderable challenge before him. "When at the A.B.A. meeting. Maplehurst has
more change.
I arrived the business was doing poorly, enjoyed growth even while the in-store
"If you look at aggregate baking in- and we were deciding between staying bakery business has not been growing,
dustry earnings, my guess is that the in the business in the U.S. and leaving," and while the food service sector has
total is less than half of
struggled. Expanding into
10 years ago. The industhe latter business has been
try has never had strong
a key. "I'm very pleased
margins, it's a cash flow
with our frozen business,"
industry, and even that is
he said. "It has enjoyed
being challenged."
double-digit growth. We
Narrow EBIT margins
have new products and
represent the most glarnew customers. We have
ingly persistent challenge
a new management team,
facing the entire industry,
an energized management
Mr. Prince said. "Let's
team. We've been listening
face it, I think our earnto customers. I have high
ings as an industry are
hopes for that business.
poor and getting poorer,"
We are broadening our
he said. "We as an indusproduct portfolio beyond
try should be targeting
its focus on cakes and dothe 15% margins that
nuts."
are the standard of the
Mr. Prince was less effood industry. Until we
fusive about Interbake.
get there, we're not goCookie sales have not been
ing to like the results. I Gary J. Prince, right, president of Weston Foods, Horsham, Pa., is the immune to the widely pubdon't even see many 10s new chairman of the American Bakers Association. At the March 17 licized woes expressed by
or 11s out there. For the A.B.A. board of governors' meeting, Mr. Prince paid tribute to George Kellogg Co. over Keebler
most part, multinational E. Deese, left, who completed a two-year term as A.B.A. chairman. Mr. and Kraft Foods over
companies have exited Deese is president and chief executive officer of Flowers Foods, Inc., Nabisco. "Interbake is a
baking because earnings Thomasville, Ga.
great business, but the
were poor."
cookie category is strugWhile dependence on private label as he said. "We had lost our way in the gling, and we're struggling with it,"
a means to utilize excess capacity has early 1990s. We decided to go to work Mr. Prince said. Steps the company has
been a factor weighing on earnings, the and make it work."
taken to improve business include the
capacity problem must be faced sepaIf Weston Foods is to prosper going introduction of sugar-free products. In
rately, Mr. Prince said. "Excess capacity forward, the company needs success addition, Weston expects to eliminate
is a fundamental issue," he said. "I ex- in more than one baking category, Mr. trans fatty acids in all products except
pect more old bakeries will close in the Prince said. "We compete at breakfast, donuts before the end of 2004.
next three years than the total for the lunch and dinner, as well as a large snack
Asked about his perspective on its
entire past decade.."
category," he said. "It isn't a choice for us Bestfoods Baking acquisition, Mr. Prince
That a struggling baking business has to win at breakfast and lose at lunch or was generally positive. But he also said,
the potential to turn around is an idea snacks. We can't win in bagels and lose "Acquisition is the toughest kind of
very familiar to Mr. Prince in his own in bread."
work anyone will take on. It's energizcareer, especially in the past 10 years.
The businesses Mr. Prince oversees ing. It makes ones career work more
A relative newcomer to U.S. baking, include Weston Bakeries, which bakes interesting, but it's tough, tough work.
Mr. Prince has spent his entire 30-year and distributes products under multiple I'm pleased that we have our integration
baking career with George Weston Ltd., brands - Brownberry, Arnold, Frei- of Bestfoods Baking pretty much behind
the Toronto-based parent of Weston hofer's, Thomas', Stroehmann, Boboli us. Our cultures are getting merged.
Foods. He said he has found consider- and Entenmann's. Maplehurst Bakeries,
"In the bread business we experienced
able appeal in a company that has a rich Inc., another division, supplies frozen tremendous growth. We haven't had
heritage in baking. He noted that the baked goods to in-store and food service enough capacity and have had to outcompany's roots in baking date to the customers. Interbake Foods Inc. is a source a lot of our growth. That's why
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Milling & Baking News - March 30, 2004

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