Food Business News - Aug 17, 2010 - (Page 1)

August 17, 2010 FOODBUSINESS NEWS NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Sara Lee earnings climb 39% during fiscal 2010 CHICAGO - Boosted by strength in North American Retail and International Beverage segments, net income for Sara Lee Corp. for the fiscal year 2010 was up 39%. Net income for the year ended July 3 was $506 million, equal to 74c per share on the common stock, which compared with income of $364 million, or 52c per share, during the previous year. Sales for the year were $10,793 million, down slightly from $10,882 million during the previous year. "Sara Lee concluded a very strong year, highlighted by robust earnings-pershare growth, an increase in cash flow and higher adjusted operating segment income in most of our ongoing business Continued on Page 10 INSIDE Energ drink market Energy needs to diversify CHICAGO - While energy drink sales climbed 136% between 2005 to 2009, manufacturers are having difficulties attracting new customers, according to Mintel International. Seventy-four per cent of the respondents Mintel surveyed said they don't consume energy drinks/shots, and 69% of the non-users said they are not interested in trying them. "Sales of energy drinks and shots have remained relatively strong for the Continued on Page 27 Story on Page 22 Russian export ban injects volatility into wheat market Drought slashes production estimates; trade awaits more restrictions KANSAS CITY - First rumors, then confirmation in early August that Russia would ban grain exports from Aug. 15 through the end of 2010 due to extreme drought sent U.S. wheat futures prices skyrocketing, then plunging back to earth with limit losses in the same week, somewhat reminiscent of the extreme volatility seen in 2008 when many grain and oilseed prices soared to record highs. While the Russian situation appears the most severe, several other key wheat producing areas are being watched, including Europe, and have seen crop prospects diminish. Most reports have indicated the drought in Russia to be the worst in 100 to 130 years, and some even suggested it is the worst in 1,000 years. So far the heat, fires and stifling smoke and smog have resulted in thousands of deaths. The drought also has devastated the nation's crops and drastically reduced export prospects, especially for wheat. The prolonged drought also has raised concerns about production of winter crops for harvest in 2011. Seeding typically starts in August. Sources from within Russia estimate winter crop seeding could be reduced by a third, although the area likely would Continued on Page 21

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Food Business News - Aug 17, 2010