Milling & Baking News - October 26, 2004 - 1

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LATE

NEWS
HERSHEY,
PA.
-
Announcing
record sales and
earnings
during
the third quarter
ended Oct. 3, Hershey Foods Corp.
on Oct. 21 revealed plans to
enter the U.S. cookie market.
In December, the company will
begin shipping a four-variety
line of single-serve "premium
indulgent" cookies. The line is
based on four of Hershey's best
known confectionery brands
- Reese's, Hershey, Almond Joy
and York Peppermint. Richard H.
Lenny, Hershey's president and
chief executive officer, noted that
the premium cookie segment is
profitable and growing. He said
Continued on Page 8

Hershey
to enter
cookie market

With a new name,
foundation launches
national media blitz
NEW YORK - The Grain Foods Foundation, newly renamed from the Foundation for the Advancement of Grain Based
Foods, on Oct. 21 launched a national
media tour highlighting a clinical review
exploring the prevailing scientific view of
carbohydrates.
In interviews with news organizations
such as CNN, members of the foundation's
medical advisory board said the review
showed that grain-based foods, including
bread and rolls, "provide myriad benefits in achieving and maintaining optimal
health and wellness."
The panel was led by Glenn Gaesser of
Continued on Page 10

bakingbusiness.com / world-grain.com

OCTOBER 26, 2004

Examination of grain foods intake
shift brings whole grains to fore
MINNEAPOLIS - Viewed from many
angles, grain-based foods consumption
changes have been in the recent past and
will continue to be driven by health and
wellness issues.
That was the conclusion of a wide range
of speakers at "Understanding Demand
Shifts for Grain-Based Foods," a Sept. 28
workshop hosted by the Economic Research Service of the U.S. Department of
Agriculture.
While nutrition long has been viewed
as a leading influence in changing food
consumption trends affecting grain-based
foods, other factors in the past have been
viewed as factors equal to or even more

important. Among these influences are
convenience, new product innovation,
demographics, and changing channels of
distribution (and the growing percentage
of meals eaten away from home).
While presenters touched on several of
these other factors, health and wellness
leapt out as the primary force addressed in
most of the presentations.
Even more specifically, whole grains
foods consumption was a central subject
in many presentations, even as the speakers acknowledged that 85% to 90% of
grain-based foods consumed in the United
States contain no whole grains and that the
Continued on Page 12

New products boost cookie,
frozen pizza sales for Kraft
NORTHFIELD, ILL. - An influx of new
cookie and frozen pizza products helped
boost overall sales at Kraft Foods Inc. but
failed to spur a year-over-year gain in net
income for the third quarter, the company
said last week in detailing its results for the
period ended Sept. 30.
Net income in the quarter totaled $779
million, equal to 46c per share on the com-

mon stock, down 4% from $810 million, or
47c per share, in the third quarter of fiscal
2003. Kraft pointed to higher commodity
costs and restructuring expenses as factors adversely affecting earnings in the
quarter.
Net sales, buoyed by strong sales of
new pizza products, climbed to $7,831
Continued on Page 23

Nimble giant
ADM Milling, Beech Grove, Ind.

Story on Page 25

inside

THIS WEEK

Objections
from I.B.C.
shareholder
group

Ingredient

Speirs, Byom
to MGP
Ingredients
board

Small
gain in
grain-based
food prices

Week
47

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - October 26, 2004

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