May 26, 2004

Dean to incur $9.4 million in closure-related charges...Protein Ingredient Technologies seeks expansion grant...Carvel Corp. sets world record...Baskin-Robbins promotes "Shrek 2" tie-ins...Dairy Distribution Deals...Bi-Lo supermarkets rev-up image...Wal-Mart seeks Chicago sites...Nash-Finch to shed 21 supermarkets...Odds-and-Ends...Stock Market Ticker...More news at www.idfa.org.

DAIRY BUSINESS BRIEFS

Plant closings, workforce reduction and company restructuring are expected to result in $9.4 million in one-time charges for Dallas-based Dean Foods Co., according to a Securities and Exchange Commission (SEC) report filed by the dairy company earlier this month. About $6 million in charges are attributed to plant closings, with another $2.5 million in costs to scale back the number of employees, and $900,000 to buy-out lease obligations. The costs are in addition to the $7.6 million in first quarter facility closings. Part of the company's plans call for a payout of $38.3 million in bonuses to White Wave soy milk subsidiary employees if they achieve performance goals.
     Meanwhile, Dean reports that it is involved in discussions with the SEC to settle potential civil action stemming from inflated income for grocery distributor Fleming Cos.; Kraft Foods Inc. and Frito-Lay Inc. were also targeted in the SEC investigation, which was announced in late 2003. (The Dallas Morning News)

With the help of federal grant dollars, Protein Ingredient Technologies hopes to add whey protein isolate to processing capabilities at its Norfolk, Neb., plant and headquarters. The company has applied for a $415,000 federal grant to add equipment to the former Leprino Foods facility. (Associated Press)

As part of its 70th anniversary celebration this year, Carvel Corp. built a 19-foot-long, 12,096-lb. ice cream cake to top the previous record verified by The Guinness Book of World Records. The May 25th construction took 75 minutes and 54 people to assemble. Atlanta-based Carvel operates 460 franchised and foodservice locations, and sells its ice cream cakes and novelty products in more than 6,300 supermarkets. (Company report)

Baskin-Robbins is bringing back its Shrek's Swirl Sherbet as part of its "Shrek 2" themed tie-in promotion with DreamWorks Pictures. Randolph, Mass.-based Baskin-Robbins reports that the "Shrek 2" promotion will build on the success of its tie-in to the original "Shrek" animated film. (Company report)

DAIRY DISTRIBUTION DEALS

Middle East dairy concern SADAFCO will distribute Ultimate Slammers milk to more than 17,000 stores in the Middle East in a new deal with Bravo! Foods International Corp., North Palm Beach, Fla. The vitamin-fortified milk will have initial distribution in Saudi Arabia, Kuwait, Bahrain, Qatar and United Arab Emirates. Stateside, the five-flavor line of 16-ounce, ESL Ultimate Slammers is available in 22 retail chains. (Company report)

A new distribution deal with U.S. 7-Eleven convenience stores will raise the profile for CoolBrands International Inc.'s licensed frozen novelties. The Toronto-based CoolBrands reports that 2,295 7-Eleven stores in southern California, Texas, Utah, Colorado, Delaware, New Jersey, Pennsylvania and New York will carry the Eskimo Pie Giant King Size Vanilla Ice Cream Bar with Dark Chocolate Coating. In addition, 767 stores in southern California will carry the company's Atkins Endulge Chocolate Fudge Swirl and Vanilla Milk Chocolate ice cream bars.

CUSTOMER CLIPS

The Bi-Lo grocery chain will sponsor the Bi-Lo 200 Busch Series NASCAR race at South Carolina's Darlington Raceway on Nov. 13. In addition, Greenville, S.C.-based Bi-Lo will sponsor the Aug. 24 debut of night racing at Darlington. Events will include a free exhibition and a Q&A session with top race car drivers Jeff Gordon, Cale Yarborough and David Pearson. (Associated Press)

Chicago is the latest urban market targeted by Wal-Mart for expansion. Today the city council will vote on zoning to open Wal-Mart stores within the Chicago city limits; if passed, Wal-Mart plans to build two 150,000-sq.-ft. stores. Unions and community groups protested at the initial planned vote meeting and are expected again at today's vote. Supercenters are not on the drawing board, but most Wal-Mart units stock food and dairy items. Chicago's mayor supports the addition of the new stores and recouped sales tax revenues—Chicago residents spend an estimated $500 million a year at 53 Wal-Marts and Sam's Clubs in Chicago suburbs.
     Wal-Mart's attempt to enter the Inglewood, Calif., market with a supercenter unit was rejected by voters in an April referendum. Meanwhile, Wal-Mart may face troubles in Vermont; a national preservation group designated the state of Vermont one of the 11 "most endangered historic places" in the country. The National Trust for Historic Preservation has voiced concerns about expansion of the chain's presence in the state from the existing four Wal-Mart units because additional stores have the potential to put small rural retailers that Vermont is known for out of business. (Chicago Tribune, USA Today)

By mid-June, Nash Finch Co. plans to close or sell 21 underperforming supermarket units to focus on its more profitable wholesale business. The company will close five Buy-n-Save discount stores in Minnesota, nine EconoFoods stores in Iowa, Minnesota and South Dakota and a Sun Mart store in Scottsbluff, Neb. In addition, the company will close three Hispanic market-target Avanza supermarkets in Chicago and Pueblo, Colo. The company will seek a buyer for three other Avanza stores in Denver, Colo. (Associated Press)

IDFA NEWS

IDFA Offers FMD Response Manual for Dairy Plants
An outbreak of Foot-and-Mouth Disease (FMD) in this country could wreak havoc on the milk supply and create distribution and public relations headaches for dairy companies within just a few days. To help companies plan ahead, IDFA has carefully prepared a new publication to serve as an off-the-shelf crisis manual, with specific instructions on how dairy corporate headquarters, plant operations, and milk haulers will be forced by state and federal government regulations to respond if FMD hits. The manual also provides guidance on what dairy companies should be doing today to soften the blow of an outbreak and includes a crisis communications section, which may be helpful in any type of plant emergency. Each manual is just $95 for members, $145 for nonmembers; volume discounts are available. To order copies for your company's plants, contact publications@idfa.org, or click here. http://store.idfa.org/

ODDS-AND-ENDS

A nine-month lock-out of 200 union workers at Seattle-based dairy concern WestFarm Foods continues. Union members have ratified two contract proposals, but did so before WestFarm agreed on the terms of the proposals. (Seattle Times)...Robert Ingle II has been elected chairman of the board of directors of southern retailer Ingles Markets Inc. He succeeds company founder and his father Robert Ingle, 70, who will remain CEO and chairman of the board's executive committee. Ingle II, 35, joined the family business in 1985, serving as vice president of operations since 1996 and as a director of Ingles since 1997. (Company report)...In Passing: Horace L. Mitten Jr., 85, of Glen Ellyn, Ill., died May 11. Over the course of more than 30 years, the former CEO and president of Crepaco Inc., a Chicago area manufacturer of food-processing equipment, applied his dairy technology doctorate to help hundreds of companies develop and produce ice cream products. (Chicago Tribune)

STOCK MARKET TICKER

As of 5/25/04, market close.

Company/Symbol		Last Trade		Change over Previous Close		Change over Last Week's D-brief
ConAgra Foods/CAG 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		28.26 34.40 78.96 45.65 34.01 88.03 10.76 29.88 16.50 20.36 21.62 32.10 30.74 36.99 34.98 15.99 06.45		+0.26 +0.76 +0.04 +0.12 +0.43 +0.13 +0.07 -0.07 +0.30 +0.26 +0.55 -0.34 +0.21 +0.25 +0.68 +0.09 +0.28		+0.10 +0.55 +0.02 -0.16 +0.81 -1.35 +0.17 -0.73 -0.10 -0.03 +0.29 +0.09 +0.27 -0.64 +1.86 +0.42 +0.45
Source: Yahoo! Finance

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