Milling & Baking News - May 23, 2006 - 11

B U S I N E S S

I.B.C. sustains $15 million loss
in period ended April 1
KANSAS CITY - A month after cutting
its loss in half, Interstate Bakeries Corp.
saw its losses once again mount, rising
from $10,049,307 in the four-week period
ended March 4 to $15,193,537 in the fourweek period ended April 1, according to
an 8-K filed May 17 with the Securities
and Exchange Commission.
Sales in the period ended April 1 were
$224,868,134, up 1% from $222,006,839
in the previous four-week period.
Operating
expenses
finished
at
$116,754,318, up 9% from $107,204,925 in
the previous four-week period. Ingredients,
packaging and outside purchasing costs
rose 2% to $55,778,847, while direct and indirect labor costs gained 4% to $42,638,547.
Restructuring and reorganization expenses during the most recent period
included charges for professional fees of
approximately $2,420,088, adjustments to
lease rejection expense of $146,274, and

Sara Lee gets new ad
agency, looks to grow
brand recognition
DOWNERS GROVE, ILL. - Sara Lee
Food & Beverage said it has enlisted
TBWA\Chiat\Day, Los Angeles, as its
advertising agency of record for the
Sara Lee brand. The agency will be responsible for all advertising - television, radio, print and outdoor.
Chiat\Day, whose list of clients include Adidas, Apple, Mars, Sony PlayStation and The International Olympic
Committee, will assist in strategic development and execution of advertising in the United States for Sara Lee
brand products, including fresh bread
and bakery products, frozen desserts
and baked goods, and deli lunchmeats,
cheeses and condiments.
"We are looking forward to a creative partnership with Chiat\Day to
drive continued growth for one of
the most recognized and respected
consumer food brands in the world,"
said Kim Feil, senior vice-president
and chief marketing officer of Sara
Lee Food & Beverage. "Sara Lee has a
great lineup of innovative new products and strong heritage products.
Advertising is an important element
of our marketing efforts and will be
fully integrated with all of our marketing programs, including in-store
point-of-sale consumer communications and execution." MBN

bakingbusiness.com / world-grain.com

KERP and restructuring bonus plans of
$72,419. The expenses were partially offset

Interstate Bakeries
Corp.
Year-to-date results
Net sales
$2,547,214,357
EBITDA
($20,120,713)
Restructuring and reorganization
charges
$12,098,375
Net loss
($134,783,943)
by a gain of $258,710 in interest income and
$208,105 in overall restructuring expenses.
In the S.E.C. filing, I.B.C. said capital expenditures for the four-week period ended
April 1 totaled approximately $1 million,

bringing year-to-date capital spending
through April 1 to $26.3 million.
"These expenditure levels are significantly lower than historic capital spending levels prior to the commencement of
the pending bankruptcy reorganization
proceedings," the company said.
As of April 1, I.B.C. had not borrowed
under its $200 million debtor-in-possession credit facility, which is subject to a
borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves.
I.B.C. said the credit facility was used to
support the issuance of letters of credit
primarily in support of the company's
insurance programs.
Also as of April 1, there were $90.2 million of letters of credit outstanding, which
were partially collateralized by $76.7 million of restricted cash as shown on the
monthly operating report. The amount of
the credit facility available for borrowing
was $89.9 million as of April 1. MBN

Mrs Baird's opens Topeka distribution routes
FORT WORTH, TEXAS - Mrs Baird's Bread,
one of the country's largest wholesale baking
companies, is opening new distribution routes in
the Topeka, Kas., area. The expansion will bring
Mrs Baird's products to stores in the Kansas markets of Topeka, Lawrence, Manhattan and Junction City, marking the first time the brand will
be available in this area. Earlier this month, Mrs
Baird's made its entrance into the Wichita, Kas.,
area, taking its products to stores in Hutchinson, El
Dorado, Newton, Augusta, Derby and Andover.

The routes will deliver Mrs Baird's products, including the company's Harvest Selects
line, Whole Grain White bread and buns and
the company's line of sweet goods.
Mrs Baird's Bread is a subsidiary of Bimbo
Bakeries USA. Bimbo Bakeries USA operates
13 bakeries and distributes brands such as
Mrs Baird's, Oroweat, Thomas', Entenmann's,
Tia Rosa, Bimbo and Marinela. They serve approximately 3,000 sales routes and have approximately 7,000 U.S. employees. MBN

ConAgra to make Ultragrain flour blend available
at retail under Healthy Choice brand
CHICAGO - ConAgra Foods, Inc. on May 8 unveiled plans to launch a family flour blend
involving Ultragrain flour. Previously, Ultragrain was available only to commercial bakers and
other food manufacturers.
Healthy Choice's new All-Purpose Flour Blend will begin rolling out in late June at select
Wal-Mart stores in Texas, Virginia and North Carolina. ConAgra expects to release further
news about expanded availability later in the summer.
The new flour blend for retail bakes and tastes like white flour and also has 9 grams of whole grains
per serving. The flour is made with 30% Ultragrain flour blended with
an enriched wheat flour. It will be available at $2.29 for a 5-lb bag.
"For home chefs in kitchens across the country, it will offer a
flavorful, fun way to serve up the whole grains we all need, in the
foods we all love," said David Palfenier, president of ConAgra
Foods Grocery Foods, when ConAgra unveiled its plans at the
F.M.I. Show at Chicago's McCormick Place. "From grandma's
cookies to flapjacks and oven-fried chicken, Americans will be
flipping for whole grains as never before."
About 94% of flour purchased today is white flour and 6% is
whole grain. However, 48% of Americans are adding more whole
grains to their menus, according to a new survey conducted by
Ipsos U.S. Express on behalf of Omaha-based ConAgra Foods.
Several baking companies already are using Ultragrain in their
products. Sara Lee's Soft & Smooth Made with Whole Grains White
Bread and Pepperidge Farm Goldfish Crackers are two examples. MBN
Milling & Baking News, May 23, 2006 / 11

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Milling & Baking News - May 23, 2006

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