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December 1, 2004

CoolBrands reports 80 percent revenue jump...Wells' Dairy, Kemps settle yogurt brand lawsuit...Kraft sells N.Y. plant to cheese-box factory...Farmers, milk hauler charged in alleged milk scam...Marketing Mix...Hannaford buys Victory Super Markets...Ahold posts net loss for quarter...Organic To Go sells organic milk, cheese...Odds-and-Ends...Stock Market Ticker...More news at www.idfa.org.

DAIRY BUSINESS BRIEFS

CoolBrands International, the Markham, Ontario-based maker of Eskimo Pies and other frozen snacks, reports $642.8 million in revenues for fiscal 2004, up 80 percent from fiscal 2003. Net earnings for 2004 increased 54 percent to $48.8 million while fourth-quarter profits dipped slightly to $14.7 million, down from $14.8 million in the same period last year. The company reports revenues were hurt by a weaker U.S. dollar converted into stronger Canadian currency. Revenue growth for 2004 was attributed to Americana Foods LP, Eskimo Pie Frozen Distribution, and Super Premium Dreamery, Godiva and Whole Fruit pints. In other news, CoolBrands secured four new brand licenses for frozen treats it plans to distribute in the United States next year. The new brands include Care Bears, DC Comics' Justice League (including Superman, Batman and Wonder Woman), No Pudge! and Snapple. (Company reports)

Wells' Dairy, Le Mars, Iowa, and Minneapolis-based Kemps LLC settled a legal battle over the names of their nonfat yogurt products. A federal lawsuit filed in Sioux City, Iowa, claimed that the name of Kemps Light 80 yogurt infringed on the trademarked name for Wells' nonfat yogurt, Lite 85. Wells' also took issue with Kemps' claim that its Light 80 was the lowest-calorie 6-ounce product on the market. A Kemps spokesperson said a settlement had been reached. (Associated Press)

Kraft Foods, Northfield, Ill., sold its Canton, N.Y., cheddar cheese plant to Bristol Manufacturing, a Springfield, Mo., company that had sold Kraft cheese containers. The plant, which Kraft closed in July, will manufacture and recondition bulk cheese containers for Kraft under the name of St. Lawrence County Manufacturing and Properties. Earlier, Kraft agreed to assume debt on sewage treatment improvements made to the plant in the 1990s in order to pave the way for the sale. The new plant will employ up to 15 people, offsetting a few of the 65 jobs lost as a result of the Kraft closing. Officials expect the plant to be operational in the second quarter of 2005. (Watertown Daily Times, Watertown, Wis.)

Seven Wisconsin dairy farmers and one milk hauler face criminal charges for allegedly watering down milk sold to a cheese company. The men are accused of defrauding Mullins Cheese Inc., Mosinee, Wis., by charging premium prices for diluted milk. Each man faces at least one count of theft, though some face up to six counts. The alleged scam was found after Mullins began picking up milk on what had been the route of milk hauler David Searer, the driver charged in the case. Investigators estimate Mullins lost up to $571,000. One farmer, Thomas J. Boor of Stetsonville, Wis., admitted adding water to his milk, a practice he said he started in 1966. Mullins found that Boor's milk was almost 28 percent water. (Wausau Daily Herald, Wausau, Wis.)

MARKETING MIX

Friendly Ice Cream Co., Wilbraham, Mass., hopes to learn more about kids' tastes and preferences with its latest marketing initiative. Friendly seeks 8- to 12-year-olds to be part of Friendly's Fab 50 panel. Kids in the Boston and Springfield, Mass.; Hartford, Conn; Philadelphia and Albany, N.Y., areas can log onto a website to submit an essay on why being part of the Fab 50 panel would be the "Coolest Job in the World." The pre-teen group will provide input on new menu items and product development. Panelists receive a savings bond, a supply of Friendly's ice cream, Fab 50 gear and a Friendly's gift card. This is the second year for the Fab 50 program. (Company report)

Ben & Jerry's Homemade, South Burlington, Vt., found an unusual way to market its ice cream and help the homeless in Amsterdam at the same time. A group of Augustine nuns had the idea to use corporate advertising to raise money for their charity and supply homeless people with warm coats for the winter. Ben & Jerry's donated an undisclosed sum to the nun's cloister; in exchange, 50 homeless people agreed to wear jackets with the Ben & Jerry's logo displayed on the back. (Associated Press)

The dairy industry's resurgence is attracting mainstream media attention. The Milwaukee Journal Sentinel published an extensive feature on milk's "flashy makeover." The article, which was picked up by papers in other major markets, outlined the industry's efforts to make milk a more dazzling drink: colorful plastic bottles, kid-friendly flavors, and distribution in fast-food restaurants and school vending machines. The story also pointed out the success of these efforts, including the increase in milk sales at Wendy's and McDonald's restaurants that account for 150 million pounds of fluid milk a year. (Milwaukee Journal Sentinel)

CUSTOMER CLIPS

Hannaford Bros. Co., Scarborough, Maine, completed its purchase of Victory Super Markets for $175 million. Hannaford now owns Victory's 17 stores in central and southeastern Massachusetts and two in southern New Hampshire. Hannaford will rename the stores in February. They join 123 other stores under the Hannaford corporate umbrella. Victory's store employees will retain their jobs, but its corporate office in Leominster, Mass., will close and the 40 employees there will lose their jobs. They have been invited to apply for open positions with Hannaford stores. (Associated Press)

Netherlands-based Royal Ahold, the Dutch parent of Giant Food Inc. and Stop & Shop grocers, reported a net loss of $218.8 million in the third quarter, down from a loss of $132 million in the third quarter last year. The company attributed the loss to continued strong competition from Wal-Mart and other nontraditional food sellers. Third-quarter operating income from U.S. retail operations plummeted 57.5 percent from the same period a year ago. Quarterly revenue totaled $15.8 billion, a dip of 8 percent from the previous year. Business divestitures and the falling value of the dollar against the euro contributed to the decline. Despite the sobering financials, the company says it will meet profit projections for the next year. (Baltimore Sun)

Organic To Go, Issaquah, Wash., introduced a new concept in grocery retailing in November. The store sells and delivers ready-to-eat and other prepared meals made from all-natural and mostly organic ingredients. The store also sells organic milk and cheese as well as artisan breads and natural meats. The menu includes ham and cheese sandwiches, panini sandwiches and the "O" club sandwich, a combination of turkey, bacon, gorgonzola cheese and Swiss cheese. Founder Jason Brown hopes to turn the company into a national chain. Two more stores are planned, one in downtown Seattle and another in Bellevue, Wash. (King County Journal, South Kent, Wash.)

IDFA NEWS

Hotel Deadline for Dairy Forum is Friday
Dairy Forum's hotel deadline is this Friday, December 3, for guaranteed rooms at the Disney Yacht & Beach Club! Be sure to reserve your spot now for the 2005 Dairy Forum, set for January 9-12 in Orlando. Hotel reservations must be made directly with the Disney Yacht & Beach Club (407-934-3372). After Friday, the hotel will only take reservations if space allows. Then, be sure to click here to register for the program!

ODDS-AND-ENDS

Nearly a year's worth of cheese production at Orb Weaver Farm in Monkton, Vt., was ruined by vandalism. Vandals punctured about 237 wheels of cheese in the farm's production house sometime between Nov. 17-19. The cheese can no longer be eaten or sold. A cash award has been posted for information leading to an arrest. (Associated Press)...The average herd size of U.S. dairy farm operations increased to 105 dairy cows per farm in 2003; and 2003 saw increased sales of cheese (0.7%) yogurt (10.7%), cottage cheese (3.8%) and ice cream (5.2%). These are just a few of the hundreds of stats contained in IDFA's new Dairy Facts booklet now available at www.idfa.org...Angry dairy producers protested in the streets of Montreal...along with their cows. About 100 farmers corralled 15 cows in a pen in a downtown park to protest the financial losses brought on by the mad cow crisis and the government's response to it. The producers claim they have lost $241 million despite government assistance. They say they are victimized by the United States' decision to close the border to live Canadian cattle after mad cow disease was detected in one cow in Alberta in May 2003. U.S. officials are considering ending the ban. The "joint cowcus" had a leader-a 1,400-pound cow named after Prime Minister Paul Martin. (The Canadian Press)...In passing: M. Elizabeth Sullivan, 94, former executive director of the Dairy Council of Milwaukee, died Nov. 27, 2004. She served as executive director from 1945-52 and from 1964-71; shortly thereafter the association became the Dairy Council of Wisconsin. (Milwaukee Journal Sentinel)

STOCK MARKET TICKER

As of 11/30/04, market close.

Company/Symbol		Last Trade		Change over Previous Close		Change over Previous 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		31.67 80.23 45.49 17.80 51.80 12.79 34.20 16.18 21.81 19.28 34.60 31.59 37.01 38.40 13.79 04.00		-0.08 +0.08 +0.33 -0.26 -0.61 +0.18 -0.55 -0.05 -0.22 +0.13 +0.10 -0.01 -0.24 -0.69 +0.03 -0.41		-1.01 +0.08 +0.35 +0.26 -0.24 +0.54 -0.38 -0.37 +0.16 -0.48 +0.22 -0.30 +0.71 -0.02 -0.91 +0.09
Source: Yahoo! Finance

* Due to observance of the Thanksgiving holiday last week, the "Change Over Previous D-Brief" column compares stock prices to the Nov. 17 issue.

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