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Baker slicing production

The maker of Wonder Bread is closing its Southland bakeries amid changing tastes and falling sales.

FOOD

August 29, 2007|Jerry Hirsch, Times Staff Writer

The company is also in the midst of labor problems. One of the company's unions called Interstate's closure plans "a back-stabbing double cross."

"They never identified Southern California as a particular problem area, and if they will reconsider we will sit down to see if we can get something done," said Richard Volpe, director of the Teamsters' bakery and laundry division.


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Otherwise the Teamsters might consider a strike, which could shut down production of Interstate's profitable Twinkies and other snack cakes, Volpe said.

Workers could strike because the company currently is in contract talks with the unions representing employees at its Southern California bread bakeries, including the Teamsters and the Bakery, Confectionery, Tobacco and Grain Millers union. Almost all of the employees losing their jobs are members of the two unions.

Volpe said Interstate's union workers had already made significant wage and health benefit concessions to keep the company afloat during its financial reorganization.

"Any labor activity would only compound the company's problems and reinforce the Teamsters' lack of concern for our employees and our membership," said Interstate spokeswoman Sandra Sternberg. There are no plans to reverse the decision to close the bakeries, she said.

Interstate said it would continue to seek union concessions on health benefits and more flexible work rules nationwide.

Wonder Bread was first sold more than 80 years ago in Indianapolis and has been offered in Southern California since at least the 1940s.

Interstate acquired the brand when it bought Continental Baking Co. from Ralston Purina Co. in 1995 for $461 million in stock and cash.

In fiscal year 2007, which ended June 2, Interstate posted a net loss of $112.8 million on sales of $2.9 billion.

Wonder Bread has seen its share of the bread business slide in recent years, according to Packaged Facts, a market research firm.

Although it is still one of America's most recognized bread brands, it accounted for only 3.4% of the market in 2005, according to Packaged Facts' latest study. That was down from 4% in 2001.

Interstate has lost ground in recent years to fast-growing brands such as Oroweat, a unit of Mexican baker Grupo Bimbo, and Sara Lee Fresh Bread.

Once America's most popular bread, white bread's share of the market has dropped dramatically in recent years. Consumers now divide their preferences about equally between white and whole wheat, according to Packaged Facts.

Johnson, the Seal Beach mother of four, said she would rely on other brands to feed her family's white-bread habit. "I know it might not be that good for you, but it sure is good."

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jerry.hirsch@latimes.com

Times staff writer Martin Zimmerman contributed to this report.

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