Milling & Baking News - November 29, 2005 - 10

B U S I N E S S

Flowers Foods ups repurchase
plan, elects Deese chairman
THOMASVILLE, GA. - The board of
directors of Flowers Foods, Inc. on Nov.
18 increased the company's common
stock share repurchase authorization by
4 million shares. The additional share
repurchase authorization, combined
with the 2.4 million shares remaining
available for repurchase under the prior
authorization, represents approximately
10% of the shares of Flowers Foods common stock currently outstanding.
The board of directors also declared
a dividend of 10c per share for the third
quarter of 2005. This action renews the
annual dividend rate of 40c. The dividend is payable on Dec. 16 to shareholders of record as of Dec. 2.
"Our business continues to be strong,
as evidenced by our double-digit sales
increase and our
cash generation
through the third
quarter of 2005,"
said George E.
Deese, president
and chief executive officer. "The
increased authorization in the
stock repurchase
program gives us Deese
continued flexibility to maximize shareholder value over
the long term. Our strategy for use of cash
continues to include paying dividends,
making capital investments, making strategic acquisitions, and opportunistically
buying in the company's stock."
Since inception of the stock repurchase
plan in 2002 through the third quarter of
2005, the company has acquired approximately 8.9 million shares of its common
stock for $169.2 million, an average of $19
per share. The revised plan authorizes the
company to repurchase up to 15.3 million
shares of common stock. Under the plan,
the company may repurchase Flowers
Foods common stock in open market or
privately negotiated transactions at such
times and at such prices as determined to
be in the company's best interest. These
purchases may be commenced or suspended without prior notice depending on then
existing business or market conditions.
In a separate announcement detailed
last week, Flowers Foods said that consistent with the company's management
succession plan established by the board
of directors five years ago, Mr. Deese,
currently president and c.e.o., has been
elected to the additional position of
chairman of the board effective Jan. 1,
2006. Amos R. McMullian, chairman of
10 / Milling & Baking News, November 29, 2005

the board since 1985, has been named
chairman emeritus and will continue as
a member of the board.
"Flowers Foods is fortunate to have
George Deese at the helm of the company, and we are pleased he has accepted
the chairmanship position," Mr. McMullian said. "George has played a vital role
in helping to build the company and
develop its operating plan and strategic
direction. He has a keen intellect, unquestionable character, and exceptional
leadership ability. The company and the
board are in good hands."
Mr. Deese said he looks forward to
continuing to work with the board and
the management team to build on Flowers Foods' success.
"Our company is well equipped to
perform for its shareholders, as well as its
customers, consumers, and employees,"
he said. "We have invested in our bakeries, our distribution networks, our products, our brands, and our employees to
create the competitive strengths our company has today. All of us recognize that
our most important job is to create value
for our shareholders. We remain focused
on growing our business, on driving out
costs, and on creating value."
Mr. Deese noted that it is unusual in
corporate America for a company to
have one leader at its helm for more
than four decades.
"Flowers is fortunate to have benefited
from Amos' vision and leadership since before the company listed publicly in 1968,"
Mr. Deese said. "As Flowers grew from a
small, family-owned bakery into one of
the most respected baking companies in
the country, Amos was part of shaping our
philosophy and growth strategies. Only
one other individual in our company has
held the title of chairman emeritus and
that was the late William Howard Flowers Jr. I am certain that Mr. Flowers would
agree that Amos' contribution over his 43

years in leadership and his 20 years as
chairman merit his appointment to chairman emeritus. We are pleased that we
will continue to have Amos' guidance as a
member of the board."
Mr. Deese, 59, has been a well-respected leader at Flowers and in the
baked foods industry. He joined Flowers' sales department in 1964 and, in
the ensuing years, held increasingly
senior-level positions. From 1983 until
2002, Mr. Deese was president and chief
operating officer of Flowers Bakeries,
the company's core business. He was
elected president and c.o.o. of Flowers
Foods in 2002, president and c.e.o. of
the company in 2003, and to the company's board of directors in 2004.
Mr. Deese is a member of the board of
directors for the Grocery Manufacturers
Association and is a member of the board
of trustees for the Georgia Research Alliance. Mr. Deese is past chairman of the
American Bakers Association and was on
the A.B.A. board and executive committee. He also was on the board of Quality
Bakers of America
for 15 years, five
of those as vicechairman of the
board.
Mr. McMullian,
68, joined Flowers
in 1963 after serving three years in
the U.S. Marine
Corps and graduMcMullian
ating from Florida State University. He held successive leadership positions within the company, was elected
to Flowers' board of directors in 1975,
and was named president and c.o.o. in
1976. In 1981, he was named c.e.o. and
in 1984 vice-chairman of the board and
chairman of the executive committee.
In 1985, he was elected chairman of the
board. Mr. McMullian retired as c.e.o. in
2003 and will continue as non-executive
chairman of the board of Flowers Foods
until Dec. 31, 2005. MBN

ADM plans new cocoa processing
plant in mid-Atlantic U.S.
DECATUR, ILL. - Archer Daniels Midland Co. has unveiled plans to build a
new cocoa processing facility located in the mid-Atlantic region of the United
States. The company is in the process of selecting a site for the facility, which is
expected to be operational in mid-2007.
"ADM is furthering its leadership position in the cocoa marketplace with this
state-of-the-art facility," said Mark Bemis, president of ADM Cocoa. "ADM's
investment illustrates our commitment to our customers' growing needs for
premium cocoa ingredients."
ADM is a global leader in cocoa processing with plants in North and South
America, Europe, Asia and Africa. MBN

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Milling & Baking News - November 29, 2005

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