Milling & Baking News - December 6, 2005 - 11

B U S I N E S S

U.S. Foodservice reorganizes,
divides into two companies
AMSTERDAM, THE NETHERLANDS -
Ahold has reorganized U.S. Foodservice, a
subsidiary, into two operating companies.
The "Broadline" company provides a
line of food and related products and services to independent restaurants, health
care providers, hospitality customers,
governmental entities, educational institutions and other food service customers.
The "Multi-Unit" operating company,
which received its own brand identity,
provides food and related products to
large chain restaurants with multiple
units, primarily in the "quick-service"
and "casual theme" restaurant segments.
Ahold also said it plans to reduce total
U.S. Foodservice administrative costs by
$100 million, with more than half of the
reductions coming in 2006 and the rest in
2007 and 2008. Ahold gave the new U.S.
Foodservice plans on Nov. 29, or one day
after it agreed to pay $1.1 billion to settle
a class action lawsuit brought by U.S.
shareholders.
"Our management team has accomplished a major organizational overhaul
at U.S. Foodservice during the past two
years, integrating the past acquisitions,
strengthening the operations, improving

internal controls, enhancing corporate
governance and restoring employee
pride," said Anders Moberg, chief executive officer for Amsterdam-based Ahold.
"U.S. Foodservice's financial performance

is recovering, and the plan we are presenting today details the strong opportunities for pursuing profitable growth and
creating a more valuable and transparent
business for Ahold shareholders."
U.S. Foodservice, based in Columbia,
Md., recorded net sales of $18.8 billion in
fiscal year 2004 and had net sales of $14.2

AGP will expand St. Joseph, Mo.,
soybean plant by 2008 harvest
OMAHA - Ag Processing Inc. said it will
expand crushing capacity by 60% at its soybean processing plant in St. Joseph, Mo.
The expansion will increase crushing
capacity to 120,000 bus per day, making it one of the largest AGP soybean

processing plants in the Midwest, the
company said. The project, scheduled for
completion by the fall harvest of 2008,
includes installation of new processing
equipment, additional soybean storage capacity, expanded rail siding and

Pioneer Hi-Bred International introduces 22
new soybean varieties for 2006
DES MOINES, IOWA - Pioneer Hi-Bred International, Inc., has introduced 22 new
"M-Series" soybean varieties for the 2006 planting season.
Included are new varieties with resistance to soybean cyst nematode and Phytophthora root rot as well as tolerance to sudden death syndrome and iron chlorosis, the
company said. They range in maturity from northern to southern areas and carry the
Roundup Ready gene.
"The 2006 offering fills a continued need to manage today's insect and disease challenges," said Don
Schafer, soybean product line manager for Pioneer.
"Our 'M-Series' varieties combine these traits with outstanding yield potential."
Additionally, Pioneer 93M01, a new early variety that displays strong tolerance to
Phytophthora and sudden death syndrome, is a low-linolenic soybean that will be
available in select areas for contract production only in 2006, the company said.
Pioneer Hi-Bred International, a subsidiary of DuPont, provides access to advance
plant genetics, crop protection solutions and quality crop systems to customers in
about 70 countries. MBN

12 / Milling & Baking News, December 6, 2005

billion through the first nine months of
fiscal year 2005.
The "Broadline" operating company
represents more than 85% of U.S. Foodservice's net sales. It had net sales of $12.4
billion through the first nine months of
2005 and an operating margin of 0.5%.
The Broadline company has set goals of
compound annual net sales growth of at
least 5% over the next three years and an
operating margin of at least 3% for 2008.
A new organization, named Monarch
Foods, will be responsible for the entire
private brands value chain. Robert Aiken, currently executive vice-presidentsales/marketing and supply chain of
U.S. Foodservice, is scheduled to become
president of Monarch Foods on Jan. 1.
The "Multi-Unit" company had net
sales of $1.9 billion through the first
three quarters of 2005 and an operating
margin of a negative 0.9%. The company
has goals of becoming profitable within
the next two years.
Company-wide, Ahold reported net
sales of €10.2 billion ($12 billion) for the
third quarter ended Oct. 9, which was a
0.7% increase from the third quarter of
fiscal year 2004. A net loss of €239 million compared with a net loss of €134
million in the third quarter of 2004.
The settlement of the securities class
action impacted third-quarter results. MBN

upgrades to truck unloading facilities.
"This project will enhance the long-term
competitiveness and viability of our soy
processing and vegetable oil refining facility at St. Joseph, one of the largest single-site
refineries in the nation," said Marty Reagan,
chief executive officer.
"While there are some final negotiations
that are critical to the viability of this project, we expect to reach a successful conclusion to our ongoing discussions with local
and state economic development agencies
and the local utility," said Cal Meyer, AGP
group vice-president, processing, refined
vegetable oils and industrial products.
AGP also said it planned to build a new
coal-fired energy center to produce steam
for its corn ethanol plant, soybean processing plant and newly expanded vegetable oil
refinery at its Hastings, Neb., industrial business complex. The project also was subject
to obtaining the necessary new construction
permits and successful completion of a longterm agreement with Hastings Utility.
AGP is a regionally federated soybean marketing cooperative that owns
and operates soybean processing plants,
vegetable oil refineries, a biodiesel plant
and a corn ethanol plant. It also conducts
grain merchandising, specialty grain and
oilseed contracting, livestock feed and
integrated poultry production. MBN
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Milling & Baking News - December 6, 2005

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