Milling & Baking News - February 15, 2005 - 9

B U S I N E S S

Krispy Kreme eliminates 125 jobs,
jettisons airplane to conserve cash
WINSTON-SALEM, N.C. - Krispy Kreme
Doughnuts, Inc. last week announced it
will eliminate 125 jobs and divest a corporate airplane in an effort to conserve cash.
The
announcement
marks one of the first major decisions from the company's new management
team, which was brought in
last month after former chief executive
officer Scott Livengood stepped down
under pressure from Krispy Kreme's
board of directors.
By eliminating roughly one quarter of
the workers at its corporate headquarters, mix plant, equipment manufacturing and distribution facilities, Krispy
Kreme expects to realize an annual pre-

tax savings of approximately $7.4 million
and a cash restructuring charge of about
$600,000 in the first fiscal quarter.
The divestiture of the corporate jet,
which was subject to an operating lease, is expected to result
in an annual pre-tax savings
of approximately $3 million
but will involve a cash charge of
about $300,000 in the first fiscal quarter.
"Krispy Kreme is a great brand, and we
are working very hard to help the company rediscover its potential," said Steve
Panagos, president and chief operating
officer. Mr. Panagos, along with Stephen
F. Cooper, the company's chief executive,
were hired in January to help turnaround
the Winston-Salem-based company (see

Deal between Kellogg, Martek
involves potential omega-3 applications
COLUMBIA, MD. - The Kellogg Co. and
Martek Biosciences Corp. have entered
into a 15-year agreement that may lead to
a Kellogg's launch of fortified products, according to a filing Martek made with the Securities and Exchange Commission Feb. 4.
Kellogg will develop foods containing
Martek's D.H.A., an omega-3 fatty acid, under the non-exclusive docosahexaenoic acid
(D.H.A.) license and supply agreement.
Kellogg, based in Battle Creek, Mich.,
must purchase, subject to certain excep-

tions, almost all of its D.H.A. needs from
Martek, based in Columbia, for products
in the United States and other designated
territories.
Kellogg also must display the Martek
D.H.A. logo on all product packages, print
advertisements and certain other promotional materials. The agreement has no
minimum purchase requirements or other
financial commitments to Martek.
Kellogg is exploring possibilities with Martek, but the food company has no confirmed

Louisiana union ratifies three-year
contract with Imperial Sugar
SUGAR LAND, TEXAS - The Imperial Sugar Co. has announced that union workers
at its Gramercy, La., sugar cane refinery ratified a new three-year contract that extends
through Feb. 1, 2008.
The refinery, operated through a wholly-owned subsidiary of Imperial, has about
190 employes represented by the United Food and Commercial Workers Union, AFLCIO, Local 1167-P. Terms of the new agreement were not released.
"We are pleased that we have been able to reach an amicable agreement with the
union representing our associates in Louisiana," said Robert Peiser, president and
chief executive officer, Imperial Sugar. "Not only are the results satisfactory to both
sides, but also the process demonstrated the mutual respect and partnership between
the company and the union, which has developed over the years."
Lloyd Kliebert, president of Local 1167-P, said the union's experience in the negotiations was "very positive."
Imperial Sugar, with headquarters in Sugar Land, also operates a cane sugar refinery in Savannah, Ga., sugar beet processing plants in Brawley and Mendota, Calif.,
and a packaging and distribution facility in Tracy, Calif. Products from the Louisiana
facility are geared to consumer and industrial markets, especially its Imperial and
Dixie Crystal brands, the company said.
Imperial also markets sugar products nationally under the Pioneer, Spreckels and
Holly brands. MBN

10 / Milling & Baking News, February 15, 2005

Milling & Baking News of Jan. 25, Page 1).
Additionally, Krispy Kreme said it will
need more credit to fund operations and
capital expenditures by March 25, the
date on which an event of default would
occur because of the company's failure to
deliver financial statements to the lenders
for the quarter ended Oct. 31, 2004.
Krispy Kreme last week said that "There
can be no assurance that the company will
be able to reach any agreement with the
banks or that funding will be available
when and in the amounts needed."
As of Oct. 31, Krispy Kreme had borrowed about $91 million under the credit
line, but last month agreed not to borrow
any more cash without its lenders' consent.
Shares of Krispy Kreme fell 73c, or
more than 9%, to close at $7.21 Feb. 9 on
the New York Stock Exchange. Less than
two years ago, the same shares were
trading near $50. MBN

product offering at this time, Kellogg spokesperson Kimberley Goode said in the Feb. 8
issue of The Battle Creek (Mich.) Enquirer.
The American Heart Association has recommended consuming omega-3 fatty acids,
including D.H.A., for good cardiovascular
health. D.H.A. is a long-chain omega-3 fatty
acid that supports brain, eye and cardiovascular health.
"Like the infant formula companies, food
companies are recognizing the importance
of D.H.A. to human nutrition and are looking for superior delivery solutions," said
Henry Linsert Jr., chairman and chief executive officer for Martek. MBN

ADM increases cash
dividend by 1c per share
DECATUR, ILL. - The board of directors
of Archer Daniels Midland Co. on Feb. 7 declared a cash dividend of 8½c per share on the
company's stock, payable March 10 to shareholders of record Feb. 17. The payout rate is
up 1c per share from the previous dividend.
It marked the 313th cash dividend and
293rd consecutive quarterly payment. As
of Dec. 31, 2004, 655,557,660 shares of ADM
stock were outstanding. MBN

Corn Products offers
repurchase program
WESTCHESTER, ILL. - Corn Products International, Inc. may purchase up to 4 million
shares of its issued and outstanding common
stock under a stock repurchase program authorized by its board of directors Feb. 9.
The program runs through Feb. 28, 2010.
It replaces the company's previous stock repurchase program that expired on Jan. 20. MBN
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Milling & Baking News - February 15, 2005

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