House OKs Child Nutrition Act
People on the Move
Calories Count
Hood Clinches Acquisition
All Stars
Deromedi Back Home
CALENDAR

The U.S. House of Repre­sentatives last month voted 419-5 to adopt the Child Nutrition Improvement and Integrity Act, legislation roundly supported by dairy industry groups.

House Resolution 3873 seeks to update components of the country’s child nutrition programs, such as the National School Lunch Program. The legislation includes two major provisions that would increase milk’s availability in schools as ways of fostering the healthy growth and development of American schoolchildren.

Schools would be granted new flexibility in offering all varieties of milk — including flavored and lactose-free varieties — on school lunch lines. Also, schools would be given the authority to offer milk any time throughout the school day and anywhere on school premises. This would prevent restrictions on milk sales sometimes included in beverage vending contracts with schools.

When the bill was called for a vote, U.S. Rep. Bennie Thompson, D-Miss., a member of the House Committee on Education and the Workforce and a leader in the Congressional Black Caucus, strongly supported the pro-milk language. “Among its many important provisions, this legislation will promote the consumption of milk in our nation’s schools,” Thompson said. “Under the child nutrition bill before us, milk will continue to be offered with every school meal. Schools will be able to offer a variety of fat levels. Schools will also be encouraged to offer a variety of flavors, as well as lactose-free milk for children who may be lactose intolerant. And regardless of any so-called ’exclusivity sales’ contract, schools will be able to sell milk anytime, anywhere on school property or at school events.”

U.S. Rep. Ron Kind, D-Wis., echoed Thompson’s support. “This bill makes significant strides in combating child obesity by giving kids more nutritious options and also works to strengthen America’s dairy industry by increasing the availability of milk in schools,” said Kind, the education committee member who authored the bill’s provisions that encourage milk consumption in schools. “With 90 percent of teenage girls and 70 percent of teenage boys currently not getting enough calcium, it is imperative to provide increased availability of milk products in schools. This legislation is necessary in light of recent stories about school districts being pressured to remove milk vending machines at a time when kids need milk more than ever.”

The International Dairy Foods Association and National Milk Producers Federation will continue to work with Congress as the bill moves to the Senate in order to make sure that milk is as widely available as possible to American schoolchildren.

Dean Foods Inc. —Jim Greisinger, president of Green Bay, Wis.-based Dean Specialty Foods Group, has retired. He has been succeeded by Blake Anderson, formerly senior vice president of marketing.

Land O’Lakes Inc. — The Arden Hills, Minn.-based cooperative has elected Pete Kappelman as 2004 board chairman. A dairy producer from Two Rivers, Wis., Kappelman is the ninth board chairman in the company’s 83-year history.

Organic Valley — Sonny Luehrmann has joined the LaFarge, Wis.-based cooperative as regional manager of the Midwest region.

ABB Group — Fred Kindle will replace Jürgen Dormann as chief executive officer of the Swiss company. Kindle, CEO of Swiss company Sulzer AG, will join ABB in September and formally assume CEO duties in January 2005. Dormann will be chairman of the board of directors.

B&H Labeling Systems — Bill McCann has been appointed regional sales manager for the Ceres, Calif.-based labeler. He will be responsible for the company’s northeastern U.S. territory.

DCI Inc. — The St. Cloud, Minn.-based manufacturer of tanks and components has named two new sales staffers. Darin Wallace has been named technical sales manager. Steve Bairett has been promoted to sales coordinator to work with customers on tank and equipment quotations in the dairy, food and pharmaceutical industries.

Elopak Inc. — Rick Beckman has been promoted to area manager for the New Hudson, Mich.-based company. He will be responsible for filling equipment and systems sales, including cartons, screw caps and materials handling, in the Southern United States.

Shuttleworth Inc. — The Huntington, Ind.-based conveyor systems manufacturer has announced a number of personnel changes. Promotions include Todd Eckert to packaging program manager, responsible for global packaging issues; Jeffrey Follis to field service manager, to oversee field service and service technicians; and Bill Toth to customer service manager, to handle existing customers and oversee parts and service. Bret Ranc has been named technical operations manager, succeeding Steve Hart, who recently retired. Joining the company are Greg Stroud as controls engineering manager, responsible for electrical systems and software; and Rick Whale as automotive market segment manager in the marketing department.

Chr. Hansen — Linda Sweek joins the Milwaukee-based dairy ingredients company as manager of communications and public relations. She will manage public relations, advertising and promotional programs and communications in North America.

D.D. Williamson — Peter Comline has joined the Louisville, Ky.-based ingredients company as European sales manager. He will focus on customers in the United Kingdom, France, Belgium, the Netherlands, and Luxembourg from the company’s U.K. office.

GTC Nutrition — Will Gorman, founder of NutraOne Ingredients, has been named exclusive sales representative in the Eastern United States for Golden, Colo.-based GTC; Gorman is based in Maryland. Ken Bender of Pacwest Ingredients has been named exclusive account manager in the Western United States. He is based in California.

Jana’s Classics — The ice cream ingredients company in Tualatin, Ore., has appointed two new directors. Frank Nance has been named director of sales; Doyle Baker has been named director of operations.

QUESTION: How has the upswing in the economy affected plans for
capital improvements or expansion?

Gary Hanman, president and CEO, Dairy Farmers of America: “The economic upswing didn’t have any effect on us. We’re more driven by the how the dairy economy looks and what product lines are going to be successful. We do not have any major product line changes in the works for next year as far as plants are concerned.”

Jeff Sterne, executive director, All Star Dairy Association: “I would have to think our plants are going to spend money not only on assets but also for their employees, for bringing out new products, a whole myriad of things that will improve just simply because they feel good about the growth in the economy.”

Rick Beaman, chief operating officer, Southwest Region, Dean Foods Co.: “We just have to stay lean and mean, and stay where we can reinvest and have those profits to put back in the organization ... because that’s the only way we’re going to survive and do well.”

Poor diet and inactivity are poised to become the leading preventable cause of death. More than 30 percent of the 64 percent of overweight Americans are obese. About 15 percent of all children and teens are overweight, almost double the rate of 20 years ago.

All of these startling facts were revealed in a new study from the Centers for Disease Control and Prevention which points to an obesity epidemic. To help Americans battle the bulge, U.S. Health and Human Services Secretary Tommy Thompson last month unveiled a new national education campaign to encourage Americans to take small steps to fight obesity and a new obesity research strategy.

Focusing on the message that “Calories Count,” Thompson said the Food and Drug Administration (FDA), which regulates many foods and their labeling, can take action to enable consumers to make smart choices about their diet and maintain a healthy weight.

A report by FDA’s Obesity Working Group includes recommendations to strengthen food labeling, educate consumers about maintaining a healthy diet and weight and encourage restaurants to provide calorie and nutrition information. The report also recommends enforcing that food labels accurately portray serving size, revising and reissuing guidance on developing obesity drugs and strengthening coordinated scientific research to reduce obesity and develop foods that are healthier and lower in calories.

“Counting calories is critical for people trying to achieve and maintain a healthy weight,” Thompson said. “This new report highlights FDA’s overall strategy for getting consumers accurate, helpful information that allows them to make wise food choices at home, supermarkets and restaurants. Taking small steps to eat a more balanced diet and to stay physically active can go a long way to reversing the epidemic of obesity that harms far too many Americans.”

The FDA initiative includes a wide range of recommendations that could significantly impact the food and dairy industry, such as changing the nutrition facts panel on food labels, expanding the use of health claims and dietary guidance, encouraging restaurants to launch consumer education programs and enhancing enforcement of labeling regulations on serving sizes.

“It’s apparent that there will be a tidal wave of FDA rulemaking coming up regarding food labeling, and we’ll be thoroughly reviewing and commenting on each proposal that impacts dairy,” said Cary Frye, vice president of regulatory affairs at the International Dairy Foods Association.

Eating lowfat dairy products may help protect consumers from gout, according to the New England Journal of Medicine. Researchers found a diet rich in meat and seafood is to blame and dismissed the idea that high-protein vegetables such as beans and peas caused the disease. There was no link between gout, a form of inflammatory arthritis, and high-fat dairy products. The study was based on health and nutritional records of more than 50,000 male health professionals.

Children who avoid milk and don’t get enough calcium-rich substitutes may face an increased risk of breaking a bone, according to a New Zealand study in the Journal of the American Dietetic Association. Researchers found that 16 of 50 children studied suffered at least one bone fracture by age 9 — and they tended to have inadequate calcium intakes and low bone density regardless of whether they broke a bone. The forearm was the most common fracture site and most of the kids who broke their forearms were overweight.

Dairy calcium might “temper the trots,” according to AARP magazine, reporting on research out of the Netherlands. Thirty-two men were put on a three-week diet of either 1,100 milligrams of dairy calcium (three cups of milk and a cup of milk-based custard) or low-calcium milk products. The men were then treated to a weak form of E.coli bacteria. Diarrhea lasted two days for those on the 1,100-mg diet and three days for those on the low-calcium diet. AARP says calcium consumption through dairy products may prevent E.coli from taking hold in the intestines.

Yogurt is among 14 “superfoods for eternal health,” according to a California doctor who says consumption at least four times a week will slow aging and help people live longer. The 13 other foods are beans, blueberries, broccoli, oats, oranges, pumpkin, salmon, soy, spinach, green and black tea, tomatoes, turkey and walnuts. Plastic surgeon Dr. Steven Pratt compiled the list after studying patients’ eating habits for more than 20 years. Pratt says these foods have the highest levels of vitamins, fiber and disease-fighting chemicals and keep the skin taut and glowing. Eating these foods will help protect against obesity, diabetes and prostate, breast and bowel cancer.

Chelsea, Mass.-based HP Hood has completed its acquisition of Crowley Foods and Marigold Foods from National Dairy Holdings, as outlined in the March 2004 issue of Dairy Field.

The new company, to be known as HP Hood LLC, will be led by John Kaneb, president and chairman. The acquired companies will continue to be led by their existing management teams. Jim Green, president and chief executive officer of Marigold, and Marty Margherio, president and CEO of Crowley, will report to Kaneb.

Hood, Crowley and Marigold will continue to manufacture and distribute their branded and licensed products as they did before the acquisition, according to a statement released by Hood.

Based in Binghamton, N.Y., the century-old Crowley manufactures fluid milk, juices and drinks, cultured products, frozen desserts and extended-shelf-life products under various brand names including Crowley, Heluva Good, PennMaid, Green’s and Hagan. Crowley boasts annual sales of some $600 million.

Minneapolis-based Marigold sells products under the Kemps brand name, including fluid milk, frozen desserts and cultured products. With annual sales of $550 million, the company also produces private label products for retailers and foodservice.

Founded in 1846, Hood distributes dairy products throughout the United States, with annual sales of about $1 billion. Its lines are category leaders in its home territory of New England. Hood also markets branded and licensed products in super-regional and national markets.

All Star Dairy Association Inc. handed out numerous awards at its 46th annual convention last month in Key Biscayne, Fla.

Byrne Dairy, Syracuse, N.Y., won the Dairy of the Year Award and Milkco Inc., Asheville, N.C., won the Purchas­ing Award.

Quality Assurance Awards were given to Louis Trauth Dairy, Newport, Ky., Best Fluid Plant; Turner Dairy, Pittsburgh, Best Culture Plant; Southwest Foods, Tyler, Texas, Best Ice Cream Plant; and Readington Farms, Whitehouse, N.J., “Doc Lawrence” Most Improved Plant.

The Supplier of the Year “Thorough­bred Award” was given to Equistar Chemical Co., Houston.

The $5,000 John D. Utterback Annual College Scholarship awards were distributed evenly to member employees or dependents to be used toward a food science degree: Christie Collins, Milkco, Inc., Asheville, N.C., Clemson Univer­sity; Kari Gorsuch, Kemps Dairy, Rapid City, S.D., South Dakota State Uni­versity; Daniel Mink, Louis Trauth Dairy, Newport, Ky., University of Kentucky; Ximena del Campo, Valley Rich Dairy, Roanoke, Va., Virginia Tech; and Elisabeth Gorevski, Upstate Milk, Buffalo, N.Y., Clarkson University.

Newly elected board members were Carl Colteryahn III of Colteryahn Dairy, Pittsburgh; Larry Kurz of Readington Farms, Whitehouse, N.J.; Robert Mertz of Schneider-Valley Farms, Whitehall, Pa.; John Bedrosian of Unified Western Grocers, Commerce, Calif.; and Brian Perry of Perry’s Ice Cream, Akron, N.Y.

A record 279 people attended the convention. Lexington, Ky.-based All Star Dairy Association was established in 1955 and has 188 member companies representing 258 plants in 43 states.

Roger Deromedi, chief executive officer of Kraft Foods Inc., is back at home in Connecticut after being hospitalized for nearly two weeks for what was initially described as an “undiagnosed medical condition.”

Deromedi, 50, “is in the process of making a complete recovery” from what was eventually
diagnosed as a “viral infection accompanied by acute dehydration,” according to a statement released by Kraft on April 13.

Louis Camilleri, chairman of the Northfield, Ill.-based company, stepped in to run Kraft pending Deromedi’s recovery and return to work, which is expected May 10. Camilleri is chairman and CEO of Kraft parent Altria Group Inc.

Deromedi was made Kraft’s sole CEO in December after a management shake-up that ended Deromedi’s shared leadership with Betsy Holden, who has been put in charge of Kraft’s global marketing efforts.

In January, Deromedi unveiled a plan to save $400 million in annual costs over the next three years by closing up to 20 plants and eliminating about 6,000 jobs. An aged-cheddar plant in Canton. N.Y., and a Farmdale, Ohio, cultured plant are earmarked for closure, and a 1,000-employee office in Rye Brook, N.Y., has been closed.