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February 23, 2005

CoolBrands, Weight Watchers settle dispute ... Washington State University Creamery to expand... Tillamook bans rBST use among its producers ... St. Albans Co-op financials ... Blue Bell expands reach to Arizona ... Franchise Scoop ... Winn-Dixie files bankruptcy ... U.S. 7-Eleven's new owners to be its Japanese counterpart ... HACCP short course ... Odds-and-Ends ... Stock Market Ticker ... More news at www.idfa.org.

DAIRY BUSINESS BRIEFS

Toronto-based CoolBrands International Inc. will no longer manufacture, sell, market or distribute ice cream and frozen novelty products using Weight Watchers and Smart Ones trademarks as of May 1. The move is part of a litigation settlement agreement between CoolBrands and Weight Watchers International Inc. after a dispute about the termination of the licensing arrangement under which CoolBrands had been selling frozen products using the brands. LeMars, Iowa-based Wells' Dairy is now the exclusive licensee for the extensive line of ice cream and frozen novelties sold under the Weight Watchers brand. (Associated Press, CBC News)

The Washington State University Creamery, Pullman, Wash., will double the size of its refrigerated storage with the addition of a 6,300-square-foot cooler, set to be completed by December. Sales have driven 10% annual increases in the university's cheese production in recent years. WSU already holds the claim of having the largest university creamery in the country; on Jan. 1, the creamery began purchasing 100% of the milk produced in the WSU dairy program. Construction on the cooler expansion will be funded in part by cheese sales, with the remainder from a university loan. (Daily Evergreen/University Wire)

Oregon's Tillamook County Creamery Association (TCCA) has asked its 147 member producers to stop using recombinant bovine somatotropin (rBST) on their herds. TCCA reports that the decision was based on customer requests and a company preference for "traditional" practices; the co-op will not change its cheese product labels. In May 2004, TCCA's board approved a policy that requires all of the co-op's milk producers as of April 1, 2005, to certify that their milk is from cows not supplemented with rBST. The co-op has stated that St. Louis, Mo.-based Monsanto Co. is supporting a group of TCCA members aiming to lift the ban. A special meeting of all TCCA members is expected to be scheduled in coming weeks to vote on the issue. (Associated Press, TCCA)

Bolstered by high milk prices in 2004, the St. Albans Cooperative Creamery in Vermont reported a 32% increase in 2004 revenue over 2003. The co-op's dairy product sales topped $236 million. (The Burlington Free Press, Vermont)

Brenham, Texas-based Blue Bell Ice Cream recently began distribution in the Phoenix-metro area via Wal-Mart Stores Inc.'s Supercenters, Neighborhood Markets and Sam's Clubs. Blue Bell is seeking additional retail outlets in the state and plans to build a $1.5 million, 10,000-sq.-ft. distribution facility to serve the market. In the meantime, the company is operating from temporary warehouse space in Tolleson, Ariz. The Blue Bell brand is now distributed in 16 states. (The Arizona Republic)

FRANCHISE SCOOP

Scottsdale, Ariz.-based Cold Stone Creamery plans to become the best-selling ice cream brand in the country by the end of 2009, CEO Doug Ducey reported in a recent speech at the Economic Club of Phoenix. In coming months, the company will announce plans to expand into Asian markets as well as details on a prospective partnership with Target stores. In addition, the company's scoop shops will start selling packaged ice cream for take-home consumption; Ducey noted that the company does not plan on expanding into supermarket sales. Cold Stone Creamery's system-wide revenues were $285 million in 2004, up 83% from $156 million in 2003. The company now has 930 stores in 47 states marketing its superpremium ice cream; in 2004, Cold Stone Creamery opened 362 new stores nationwide, with another 414 slated to open in 2005. (East Valley Tribune, Arizona; company report)

The first Michigan franchisee for Oberweis Dairy has signed on to be part of the company's plan to open 20 Oberweis Dairy stores in the Detroit metro area. By 2007, Michigan franchisee Cass Casucci plans to open three stores, one each in Birmingham, Troy and Rochester. Illinois-based Oberweis is aiming to open 300 dairy stores in seven midwestern states over the next five years. Stores are reminiscent of old-fashioned scoop shops, selling ice cream, glass-bottled milk and other dairy products. (The Detroit News)

Minneapolis-based International Dairy Queen Inc. is building on the successful June 2004 launch of its MooLatte line of frozen blended coffee beverages. Caramel MooLatte will join the current line-up of Mocha, French Vanilla and Cappuccino flavors beginning March 1. In addition, DQ will add the 'mega Moo' 24-oz. size (SRP $3.59) to the current 16.-oz size (SRP $2.99). In other news, DQ celebrates the 20th anniversary of its icon Blizzard brand with plans for new flavors, special events and promotions, and an online Blizzard fan club. (Company report)

CUSTOMER CLIPS

Jacksonville, Fla.-based Winn-Dixie Stores Inc. has filed for Chapter 11 bankruptcy protection from creditors. The company and 23 of its U.S. subsidiaries filed earlier this week in U.S. Bankruptcy Court for the Southern District of New York. At press time, trading of Winn-Dixie's shares had not been re-opened. The company's 920 Winn-Dixie stores in eight states (mostly in the Southeast and the Bahamas) remain open; it previously closed 150 stores. (Associated Press)

U.S. convenience store chain 7-Eleven will become a subsidiary of its Japanese unit in a $1.14 billion restructuring deal by Japanese retailer Ito-Yokado Co. A spokesperson for the Dallas-based chain stated that the move was an internal business transaction that does not change how the chain will operate. Under the terms of the deal, Ito-Yokado will sell its majority 37.6% stake in the U.S. chain to subsidiary 7-Eleven Japan, which is controlled by Ito-Yokado; 7-Eleven Japan will then own 73.8% in the U.S. chain. The sale and reorganization is part of a push at Ito-Yokado to cut operating costs. (Bloomberg, Dallas Business Journal)

IDFA NEWS

HACCP Course for Dairy and Juice Plants Set for March 22-24
Back by popular demand, IDFA's Advanced HACCP Short Course for the Dairy and Juice Industries will be held March 22-24, 2005, at the Hotel Madera in Washington, D.C. Upon completion of the workshop and an examination, plant operators are certified through the IDFA HACCP Certification Program to create HACCP plans for their operations. Many processors are moving toward HACCP as their preferred food safety system, particularly since HACCP became required for juice processors in 2002 and was approved by the Food and Drug Administration in 2004 as a voluntary alternative to the traditional Pasteurized Milk Ordinance procedures. For short course details or to register, click here.

ODDS-AND-ENDS

As part of the consolidation of Keller's Creamery with Kansas City, Mo.-based Dairy Farmers of America, 23 of 57 positions will be cut from the butter company's Harleysville, Pa.-based headquarters and distribution center. (Morning Call, Allentown, Pa.) ... Kentucky State Sen. Joey Pendleton (D-Hopkinsville), a former dairy farmer, has proposed a bill naming milk as Kentucky's official drink. He stated that the measure is designed to support the state's dairy industry as well as to promote healthier lifestyles. (Associated Press) ... In other state news, legislation introduced this week in Minnesota's legislature is designed to provide milk to low-income children and seniors through the state's six Second Harvest food banks. The bill appropriates $1.25 million to purchase fluid milk for distribution through food banks, food shelves, soup kitchens and shelters. (Second Harvest Heartland report) ... In Passing: Donald R. Barbary, 76, died of cancer on Feb. 8 at his home in York, S.C. The retired dairy executive began his career as a manager at Sealtest and worked at its operations in Chambersburg, Pa., Philadelphia and New York City; in 1978 he joined Great Atlantic and Pacific Tea Co. as vice president for coffee and dairy operations. He retired in 1984 as general manager for dairies for Southland Corp.'s 7-Eleven stores. (The Baltimore Sun)

STOCK MARKET TICKER

As of 2/22/05, market close.

Company/Symbol		Last Trade		Change over Previous Close		Change over Last Week's D-brief
Dean Foods/DF Dreyer's/DRYR General Mills/GIS Groupe Danone/DA Hershey Foods/HSY Ingles Markets/IMKTA Kraft Foods/KFT Kroger/KR Ruddick Corp./RDK Safeway/SWY Saputo/SAP.TO Supervalu/SVU Unilever PLC/UL Weis Markets/WMK Wimm Bill Dann/WBD Winn-Dixie/WIN		33.85 80.56 50.75 19.35 61.86 13.05 33.03 17.65 22.96 18.10 37.10 31.38 38.39 36.75 16.40 01.47		-0.53 +0.03 -0.99 -0.01 +0.25 +0.00 -0.42 -0.33 -0.91 -0.49 +0.10 -0.92 -0.28 -1.20 +0.03 +0.00		-1.03 -0.02 -1.90 +0.48 -0.46 +0.00 -0.58 -0.24 -1.22 -0.95 +0.45 -1.57 -0.38 -1.19 -0.40 -0.28
Source: Yahoo! Finance

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D-brief is written by Dairy Field magazine, a Stagnito Communications Inc. publication, www.dairyfield.com. It is provided for the benefit of the industry by the International Dairy Foods Association (IDFA), www.idfa.org.

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