Food Business News - Feb 21, 2006 - (Page 1) February 21, 2006 FoodBusinessNews NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY F.D.A. offers guidance on use of term 'whole grain' in food Starbucks and PepsiCo team up on new beverage 10 Long live lycopene 19 Sweetener Colloquium draws crowd 47 MARKET WATCH WASHINGTON - In a step aimed at clarifying what food products may or may not be labeled as "whole grain," the Food and Drug Administration on Feb. 15 issued draft guidance on the term. In the document, the agency said it considers whole grain to include cereal grains that consist, either intact, ground, cracked or flaked, "of the fruit of the grains whose principal components - the starch endosperm, germ and bran - are present in the same relative proportions as they exist in the intact grain." As examples, the agency cited barley, buckwheat, bulgur, corn, millet, rice, rye, oats, sorghum, wheat and wild rice. While the guidance gives the okay for calling quick oats "whole grains," because the product contains the bran, germ and endosperm, other widely used products may not meet the whole grain definition. The agency said it does not consider products derived from legumes (e.g., soybeans), oilseeds (sunflowerseed) or roots (arrowroot) to be whole grain. "The draft guidance specifically recommends that pizza only be labeled as 'whole Continued on Page 15 Sugar market outlook to remain volatile Production could be the highest since 1999. KANSAS CITY - Lower domestic sugar production and rising world sugar prices have increased the level of uncertainty and anxiety about the availability of sugar to U.S. users as the year progresses, while debate about the U.S. sugar program add mystery to the longer-term supply/demand situation. Speakers at the International Sweetener Colloquium Feb. 5-8 in Hollywood, Fla., forecast continued strong domestic and world sugar prices, along with price volatility, for the rest of 2005-06 (October-September), and into the next year as well. At the same time, potential change to the U.S. sugar program in the next two to four years was a key topic at the meeting. Refined sugar prices in the coming year should range from the mid-thirties to the midforties (cents per lb), said Steve Vuilleumier, senior vice-president, McKeaney-Flavell Co., Inc., Oakland, Calif. With additional significant sugar beet storage problems, a situation in sugar similar to last fall would become possible, he said at the colloquium. In the final quarter of the 2004-05 marketing year sugar supplies tightened, and prices shot to their highest levels in about two Continued on Page 22

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Food Business News - Feb 21, 2006