Briefs: Interstate Bakeries, GM bread, Duchy US

By Charlotte Eyre

- Last updated on GMT

Related tags Jpmorgan chase

Interstate Bakeries Corporation files for bankruptcy, GMO bread is
removed from shelves and Prince Charles's Duchy biscuits may expand
to the US.

Royal biscuits looks to the US Duchy originals, an organic food company set up by the Prince of Wales, is looking to increase market share by expanding into the US market, according to the Financial Times.

Duchy Originals chairman Andrew Cosslett told the FT that the company is looking to sell its organic biscuits, bread, jam and beverages in the US.


We've been growing between 20 and 30 per cent for the last three or four years and we're seeing that level off this year because, as you appreciate, there have been a lot of people coming in," he told the newspaper.

"So, our share is levelling off

but we think we will surge again as we go into new products and new areas in the future."

Last year, Duchy Originals reported a profit of £1.2m on annual sales of £53m, and has generated £7m in profits since its operations first turned a profit in 1999, the FT said.

Duchy Originals was established in 1990 to promote sustainable farming and food production, with all profits donated to the Prince of Wales's Charitable Foundation.

Its best selling products to date include its Oaten biscuits and Highland Shortbread, both manufactured by Walkers Shortbread.

US baker files for bankruptcy Interstate Bakeries Corporation (IBC) announced yesterday it requested authorisation from the US bankruptcy court for a $400m deal that will help pull the company out of its financial difficulties.

The company's proposed plan of action involves a funding agreement with JP Morgan Chase Bank, McDonnell Investment Management LLC, Quadrangle Master Fund Ltd, and Silver Point Capital. IBC, baker of Twinkie and Wonder Bread brands, did not say why it had filed the claim, however the company has been having financial difficulties for some time.

In 2005, the company closed seven bakeries in the US, blaming a combination of declining bread sales as a result of low-carb diets, higher costs for ingredients and energy, excess industry capacity and rising employee healthcare and pension costs.

Earlier this year, Mintel also accused to company of failing to adapt to new trends in the baked goods market, saying that it had "not offered much" in way of premium or healthy choices.

Snack Attacks withdraws bread over GM fears Bread products from bakery company Snack Attacks have been withdrawn from Carrefour hypermarkets in Romania over accusations that they contained unlabelled genetically modified organisms (GMO), local news reports stated.

According to the Romanian news portal Hot News, the bread was removed from shelves after Greenpeace argued that the presence of GMOs was not indicated on the label, and so the products are illegal.

"State authorities were taken aback by the decision but said that they would meet with both Greenpeace officials and Snack Attack representatives on Tuesday to analyse the situation," the news portal said.

However, France-based supermarket Carrefour said it will stop selling all Snack Attacks bread products until the situation is clarified.

Related topics Business

Related news

Follow us


View more