June 2, 2004

WestFarm Foods labor dispute ends .... USDA reverses decision on organic guidelines .... Purdue set to study teen weight moderation .... New Product Scanner .... New leadership, plans for Fresh Brands .... Wal-Mart expands in Oklahoma City market .... Washington Conference .... Odds-and-Ends...Stock Market Ticker...More news at www.idfa.org.

DAIRY BUSINESS BRIEFS

The nine-month labor dispute between WestFarm Foods and its union employees ended as the processor began calling back workers over the Memorial Day weekend. More than 200 workers were locked out of WestFarm processing plants in Seattle and Issaquah, Wash., on Aug. 31, 2003, following contract rejection by Teamsters Local 66. The new three-year contract was approved by a vote of 101-43. A federal mediator helped create the deal, which cuts wages and allows WestFarm to hire non-union workers. WestFarm will continue to carry the majority of costs associated with health insurance, while the union will withdraw all "unfair labor practices" charges. Negotiations originally began on June 10, 2003, to replace a contract that expired July 31, 2003. (The Seattle Times)

Responding to criticism from consumer and organic food groups, the U.S. Department of Agriculture (USDA) rescinded changes to the organic food standards that were announced in April by USDA's Agricultural Marketing Service (AMS). Critics of the changes charged that AMS did not consult with the National Organic Standards Board, the appointed advisory panel, as required by law. Specifically for dairy, the changes would have allowed dairy cows that had been treated with antibiotics or other drugs to remain on an organic farm; producers would have been required to wait 12 months before marketing the treated cow's milk as organic. In addition, the rule changes would have allowed some pesticide use and livestock feed containing non-organic fish meal. (The New York Times)

During its upcoming "Camp Calcium" teen program, Purdue University plans to conduct the first controlled-diet study investigating the role of calcium and dairy products in teen body weight moderation. The summer program has taken place at the West LaFayette, Ind., college since 1990 to investigate various aspects of calcium metabolism in girls aged 12-14 and boys aged 13-15. Participants are supervised around the clock, and everything they eat is weighed. The teens live in student resident halls during the two three-week sessions and participate in various recreational activities. Researchers specifically want to determine whether calcium alone, or calcium in the form of dairy foods, plays a role in managing body weight. Data from previous camps has been used to establish the Institute of Medicine's Dietary Reference Intake (DRI) calcium requirements for adolescents and is part of a forthcoming surgeon general's report on osteoporosis and bone health. (Purdue)

NEW PRODUCT SCANNER

Silhouette Brands has launched its Skinny Carb ice cream sandwiches nationally with the help of Wal-Mart. With seven net grams of total carbs, the novelties reportedly carry about 70% fewer digestible grams of carbohydrates than other ice cream sandwiches. The four-pack of sandwiches is available in chocolate or vanilla. The new distribution builds on the New York company's success of other recent Skinny Carb products, including Chocolate Peanut Butter Bars and Vanilla Caramel Pecan Bars. (Company report)

In the beverage market, Dr. Pepper/Seven Up Inc. is planning to introduce 7 UP PLUS, a carbonated beverage fortified with calcium, vitamin C, real fruit juice and sweetened with Splenda. Marketing for the new caffeine-free product will include the traditional 7 UP positioning as the "uncola". A 12-oz. serving contains about 10 calories and three grams of carbohydrates. The Plato, Texas-based company is currently finalizing marketing and distribution plans for the launch. Dr. Pepper/Seven Up Inc. is the largest beverage division of London-based Cadbury Schweppes plc. (Company report)

CUSTOMER CLIPS

At its annual meeting last week, grocery store operator Fresh Brands Inc. announced the promotion of Louis Stinebaugh to president and COO. Stinebaugh had served as Fresh Brands' executive vice president of operations since December; he previously served as president of Sentry Foods. Former company president Elwood Winn left Fresh Brands in November after the company posted a string of disappointing financial results. At the meeting, Stinebaugh stated that he plans to make the Sheboygan, Wis.-based chain competitive with Wal-Mart and other retailers. The company has 24 corporate and 77 franchised supermarkets under the Piggly Wiggly and Dick's Supermarkets banners. Fresh Brands recently reported a first-quarter net loss of $1.7 million, compared with net income of $1.9 million in the first quarter of 2003. Much of the loss was attributed to the closing of some underperforming stores. The company's first-quarter sales were $200.6 million, a 14.8% increase over the previous year; part of the boost was due to an accounting method change. Comparable store sales for the company's owned and franchised supermarkets increased 3.2% over the same period one year ago. (Milwaukee Journal Sentinel, Milwaukee Business Journal)

Arkansas-based Wal-Mart plans to add its tenth Neighborhood Market grocery unit to the Oklahoma City area. The mega-retailer initially launched the smaller-store concept to Oklahoma shoppers in 1999 with a three-store rollout. (The Journal Record-Oklahoma City)

IDFA NEWS

Hotel Deadline is This Friday for Washington Conference
If you haven't already, be sure to reserve your spot now for the Washington Conference, set for June 23-24 in Washington, D.C. This valuable program will include updates on the latest dairy policy issues, a preview of how the November elections could affect the dairy industry, and opportunities to meet and network with the elected officials who decide federal policies that directly impact dairy companies. Hotel reservations must be made directly with the Washington Court Hotel (202-628-2100) by Friday, June 4, in order to guarantee a room. It's particularly important to take advantage of IDFA's room block now, since hotels fill up quickly with the summer influx of tourists to our nation's capital. Be sure to mention "IDFA's Washington Conference" to receive a special room rate. Then, click here to register for this program, which is complimentary for IDFA members!
http://www.idfa.org/meetings/washconf2004_agenda.cfm

ODDS-AND-ENDS

Kemps Dairy recently partnered with the Minnesota Timberwolves basketball team in order to promote the ongoing Kemps "Give 'em Five" milk cap collection challenge to schools across the Midwest. Located in Brainerd, Minn., the winning school collected 16,764 caps and received a Timberwolves prize pack consisting of upper-level tickets to a home game, recognition during the game and a $500 school supply donation. Kemps has donated more than $425,000 to hundreds of schools via the promotion, which redeems milk caps and proof-of-purchase symbols from Kemps gallon and half-gallon milk containers for schools supplies -- up to $10,000 per year per school. (Company report) .... An Associated Press (AP) article released over the holiday weekend highlighted the ability of Athens, Tenn.-based Mayfield Dairy to evolve over its 92 years. The national feature story outlines the company's ongoing family leadership, its 1990 acquisition by Dean Foods and such product innovation as its low-carb ice cream. Mayfield's distribution includes Alabama, Georgia, Florida, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee and Virginia. The dairy hosts about 100,000 annual visitors total at its Athens and Braselton plants. (Associated Press) .... The annual and ancient tradition of the chasing of the cheese took place in England's Gloucestershire region earlier this week. Competitors race headlong down a steep slope to capture the grand prize -- the somewhat dented wheel of Gloucester cheese. (The Guardian-London)

STOCK MARKET TICKER

As of 6/1/04, 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		27.94 35.06 79.09 45.78 34.44 88.31 10.92 29.90 16.57 20.77 22.62 32.59 30.94 38.35 34.10 16.00 06.33		-0.18 -0.24 +0.09 -0.27 -0.13 -0.42 +0.26 +0.04 -0.12 +0.21 +0.06 -0.16 -0.08 -0.09 -0.05 -0.04 +0.00		-0.32 +0.66 +0.13 +0.13 +0.43 +0.28 +0.16 +0.02 +0.07 +0.41 +1.00 +0.49 +0.20 +1.36 -0.88 +0.01 -0.12
Source: Yahoo! Finance

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ABOUT D-BRIEF

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.

D-brief is sponsored by Polytainers, Curwood and TIC Gums. Polytainers is a leader in the design, production and printing of thinwall rigid plastic containers for the dairy and food industries. Learn more about this sponsor at www.polytainersinc.com. Curwood develops and manufactures high-performance, high-barrier, polymer-based packaging materials. For more information about Curwood products, visit www.curwood.com. TIC Gums is America's oldest supplier of hydrocolloids to food, pharmaceutical, cosmetic and industrial companies worldwide. To learn more about this sponsor, visit www.ticgums.com.

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