Milling & Baking News - April 10, 2007 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
APRIL 10, 2007

bakingbusiness.com / foodbusinessnews.net

Whole wheat flour production
surges 74% over three years

INSERT

AIB International
2007
A special report in Milling &
Baking News
LATE NEWS

General Mills issues
convertible notes
MINNEAPOLIS - General Mills Inc.
has priced a private placement of $1
billion aggregate principal amount of
floating rate convertible senior notes
due 2037. The company said the notes
will have interest at a floating rate
equal to one month LIBOR (London
Interbank Offered Rate) minus 0.07%
and subject to monthly reset and payable quarterly in arrears. The initial
conversion rate will be 10 shares of
General Mills' common stock per
Continued on Page 10
Ingredient Week Sponsored by
Story on Page 38

KANSAS CITY - In what marks the
first time data on the most dynamic
segment of grain-based foods have
been aggregated, whole wheat
flour production in 2005-06
(year ended May 31) has
been estimated by Milling & Baking News at
12,386,000 cwts,
up 26% from
9,844,000 cwts the
year before.
This estimate is
based on production
figures and guidance provided proprietarily to Milling &
Baking News by 19 of the largest flour
milling companies in the United States,
accounting for more than 90% of U.S.
flour milling capacity. Total whole wheat
flour production figures are estimated
based on the data assembled for the fouryear period ended May 31, 2006.
The data help answer two of the most
frequently posed questions in grain-

based foods in recent years: How fast is
demand for whole wheat foods growing,
and how large is the market overall?
The 26% growth in whole wheat
flour production measured for
2005-06 represented an extraordinary pace of
increase for as mature an industry as
grain-based foods.
That
expansion
appeared to confirm assessments
of whole wheat
advocates that whole
wheat products were
rapidly capturing the buying focus of consumers, as well as being
offered in increasing volume by manufacturers of grain-based consumer foods.
The 26% upturn estimated for 2005-06
followed similarly strong rates of growth
in 2004-05 (15%) and 2003-04 (20%).
Flour millers offering preliminary
Continued on Page 36

Kuchuris details East Balt move
to new countries, customers
CHICAGO - While fresh baking companies generally focus on domestic
rather than international opportunities
for expansion, a second look outside
the borders of the United States is warranted, said Mark Kuchuris, executive
vice-president, East Balt Europe and
Africa, part of East Balt, Inc., Chicago.
In a presentation March 7 before
the American Society of Baking, Mr.
Kuchuris described the path East Balt

has taken to begin baking beyond the
shores of the United States and also
discussed the company's shift from
a baking company that supplies only
McDonald's Corp. to one that is supplying other food service customers
and is exploring relationships with
other baked foods buyers.
The presentation was part of BakingTech 2007 held March 4-7 at the Chicago Marriott.
While crediting his grandfather Lou
Kuchuris with establishing a relationship with McDonald's founder Ray
Kroc that launched East Balt, Mr. Kuchuris said his grandfather would be
"shocked, and I'm sure very proud"
by the company's growth under the
second generation leadership of Frank
Continued on Page 18
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Milling & Baking News - April 10, 2007

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