Food Business News - Jul 11, 2006 - (Page 1)

FoodBusinessNews ® July 11, 2006 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Hispanic market key to General Mills cereal growth Rosenfeld's return viewed as positive in the long term 22 Senate rejects F.D.A. budget cuts 26 Fruitful additions for health 54 MARKET WATCH NEW YORK - While generally positive in their views of the new chief executive officer of Kraft Foods, Inc., Wall Street analysts warned that no "instant turnaround" should be expected with Irene Rosenfeld at the reins of the nation's largest packaged foods company. Kraft announced June 26 that Ms. Rosenfeld had been named c.e.o., replacing Roger Deromedi, who is leaving the company. Ms. Rosenfeld had spent 22 years at Kraft, most recently as president of the company's North American businesses. She left Kraft in July 2003 and reemerged in the food industry in September 2004 as chairman and chief executive officer of the Frito-Lay, Inc. division of PepsiCo, Inc. "Irene has a strong marketing background, which may be the needed ingredient to turn this ship around," said David Nelson, a research analyst with Credit Suisse First Boston, Chicago. "Mr. Deromedi has many talents but came from an operating and financial background." Andrew Lazar, an analyst with Lehman Brothers, New York, focused on other qualities he believes Ms. Rosenfeld holds. He noted that her last assignment at Kraft, overseeing Continued on Page 20 THIS PHOTO COURTESY OF CORNELL UNIVERSITY Exposition floor ranks high in fiber content Ingredient innovations at I.F.T. focus on barley, water-holding traits Seasonal ice cream demand pushed prices up 18%. ORLANDO, FLA. - Fiber's place in the health and wellness movement appears solid judging by the number of booths promoting fiber-rich ingredients at the Institute of Food Technologists' Annual Meeting and Food Expo. Figures developed by Frost & Sullivan, Palo Alto, Calif., back up the possibility, too. The dietary fiber market in the United States stood at $192.8 million in 2004 and may grow to $470 million by 2011, according to the market research company. Barley looks poised to play a role in the fiber market growth. Japan-based Barley Fermentation Technologies, Inc. introduced its fermented barley extract at the I.F.T. event and is setting up a U.S. office in Los Angeles. The natural prebiotic fiber is rich in amino acids/peptides, oligosaccharides, dietary fiber, nucleic acids, polyphenols, gamma-aminobutyric acid (GABA) and citric acid. The barley extract also has a positive taste, according to the company. Sanwa Shurui Co., the parent company of Continued on Page 28

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Food Business News - Jul 11, 2006