Milling & Baking News - October 19, 2010 - 10

Business 

Corn Refiners Association casts
doubt on HFCS-free sales
LAS VEGAS - The Corn Refiners
Association has brand sales data that
question the success of products reformulated to include sugar instead of
high-fructose corn syrup. Sales charts
were presented Sept. 28 during the
International Baking Industry Exposition in Las Vegas.
According to The Nielsen Co., U.S.
sales of products promoted for being
free of HFCS reached $1.51 billion
for the 52 weeks ended June 12, 2010,
which was up nearly 32% from $1.14
billion in the previous 52-week period.
The sales covered U.S. food stores with
$2 million and over in annual sales, excluding supercenter items.
While overall sales and claims of HFCS-free products may be up, the Corn
Refiners Association countered individual brands may not have benefitted from the switch in sweeteners. The
association also turned to The Nielsen
Co. and gathered data for five products
in the four categories of canned soup,
barbecue sauce, fresh bakery bread and
ready-to-drink tea. The data indicate
brands that had products reformulated
from HFCS to sugar did not increase
consumer retail purchases.

Audrae Erickson, president of the Corn
Refiners Association, speaks Sept. 28 at
the International Baking Industry Exposition in Las Vegas.

"With table sugar costing significantly more than high-fructose corn
syrup, and lacking in many of the
beneficial properties of this natural
corn sweetener, reformulating can be
a costly decision," the association said.

Judge dismisses lawsuit tied to I.B.C. insurers
KANSAS CITY - U.S. District Judge
Howard F. Sachs on Oct. 4 dismissed a
$56 million lawsuit filed by U.S. Bank,
which was a trustee for the unsecured
creditors in Interstate Bakeries Corp.'s
bankruptcy proceedings, against insurers
of the former I.B.C. (now known as Hostess Brands, Inc.).
According to the Oct. 4 filing, claims
well in excess of $100 million were asserted against Paul E. Yarick, former

treasurer of I.B.C., for alleged breach
of fiduciary duties. The claims against
Mr. Yarick were subsequently settled
for $56 million, and as part of the settlement, Mr. Yarick was promised that,
upon assignment of his insurance coverage rights, he would not be pursued
for payment. Mr. Yarik's work was insured through an employment agreement with I.B.C.
In a case filed in March by U.S. Bank,

Bunge to expand Altona canola processing plant
ST. LOUIS - Bunge North America, the
North American operating arm of Bunge
Ltd., plans to more than double the capacity of its canola processing plant in Altona, Man. The expansion, which would
increase the facility's capacity to 2,500
tonnes per day from 1,100 tonnes currently, is part of a multi-year expansion
program under way across Bunge's four
Western Canada processing plants.
"Canada remains a very important
region to Bunge's growth strategy because of the increasing global demand
10 / October 19, 2010 Milling & Baking News

for canola oil and meal and the growth
potential of canola seed production in
Canada," said Soren Schroder, president and chief executive officer of
Bunge North America. "We are committed to expanding our presence in Canada and this project will improve efficiencies along a fully integrated chain
from farmers, to food and feed manufacturers."
In addition to the capacity expansion
Bunge said it plans to add a new deodorizer to fully process the oil.

Product formula changes from
HFCS to sugar occurred in October of
2006 for a whole wheat bread brand,
in September of 2008 for ready-toserve soup, in June of 2008 for barbecue sauce, in March of 2009 for readyto-drink tea, and in April of 2009 for
another whole wheat bread brand. For
all the products, Nielsen data through
Jan. 23, 2010, showed no gains in increased market share.
"Consumers are voting with their
dollars," said Audrae Erickson, president of the C.R.A.
The Washington-based association on Sept. 14 petitioned the Food
and Drug Administration to allow
manufacturers the option of using
"corn sugar" as an alternative name
for high-fructose corn syrup. Highfructose corn syrup is not higher in
fructose when compared with other
commonly used nutritive sweeteners,
according to the association. The food
and beverage industry has supported
the name change, Ms. Erickson said.
She added the association is not looking to hide high-fructose corn syrup on
the ingredient label from consumers.
The association is publicizing its efforts
to allow for an alternate name, she said.
"We're not hiding it," Ms. Erickson
said. "We're out there being transparent." MBN

Federal Insurance Co. and several other
insurers named in the case argued that
because Mr. Yarik did not suffer a loss
based on the settlement, the insurance
coverage would not allow U.S. Bank to
collect the $56 million. In his most recent
ruling Judge Sachs agreed.
"Because of that restriction in the
agreement and ensuing judgment I conclude that Yarick has suffered no 'loss,' as
defined in the policy, and thus there is no
insurance coverage under Missouri law,"
Judge Sachs said. MBN
"Canola is an attractive crop to the
Canadian farmer, and both acreage and
yields will increase especially around
Altona making it a logical first place to
expand our Canadian operations," said
Rick Watson, Bunge's country manager
in Canada. "From Altona, we can serve
most of Bunge's oil packaging plants and
major food manufacturers as well as efficiently transport meal to key dairy states
in the upper Midwest."
In addition to Altona, Bunge has processing plants in Nipawin, Sask.; Hamilton, Ont.; Fort Saskatchewan, Alta.; and
Harrowby, Man. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - October 19, 2010

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