Wednesday, 16 May 2001

Morningstar Foods to Market Folgers Jakada in Response to Growing Demand for Ready-To-Drink Coffee Beverages

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Wednesday, 16 May 2001

DALLAS–(BUSINESS WIRE)–May 16, 2001–Morningstar Foods Inc., a
subsidiary of Dallas-based Suiza Foods Corporation (NYSE: SZA), and
The Procter & Gamble Company (NYSE: PG) today announced a licensing
agreement pursuant to which Morningstar Foods will develop and market
a new coffee beverage under the Folgers(R) brand name.

The new product, Folgers Jakada(TM), is the first chilled coffee
drink made from Mountain Grown(R) Folgers coffee and lowfat milk.
Under this new licensing agreement Morningstar will produce, promote
and distribute Folgers Jakada. P&G will share in revenue generated
from all future Folgers Jakada sales while retaining rights to the
Folgers trademark.

“Our agreement with P&G is the next logical step in our organized
effort to foster cooperation with companies known for bringing unique
and exciting goods to the marketplace,” said Bing Graffunder,
president and chief operating officer of Morningstar Foods. “With the
dramatic growth in the ready-to-drink coffee category, we have the
ideal opportunity to develop a distinctive coffee beverage with
America’s No.1 brand of coffee to help expand this market and reach
new coffee drinkers.”

Graffunder added, “There has been a 25 percent increase in the
number of 18-24 years olds who are discovering sweeter, milkier,
coffee-tasting products(a). Clearly, this younger demographic is
looking for a product like Folgers Jakada, and we plan to make sure
they can get this product anywhere, anytime.”

P&G’s Corporate Licensing team selected Morningstar because of
their leadership and depth of consumer understanding in food and
beverage specialty markets. Under this agreement Morningstar will
bring their commitment of high quality and consumer understanding to
the Folgers Jakada specialty beverage line.

“Morningstar Foods brings a strong expertise in dairy distribution
and manufacturing that will help P&G extend the reach of Folgers to
new consumers in new places,” said Mike Griffith, P&G’s Vice President
responsible for its coffee business. “We’re counting on our
relationship with Morningstar to be mutually productive and long

About The Procter & Gamble Company

Procter & Gamble markets approximately 300 brands to nearly five
billion consumers in over 140 countries. These brands include Tide(R),
Pampers(R), Crest(R), Vicks(R), Sunny Delight(R), P&G’s, Folgers(R),
Millstone(R), and Iams(R). Based in Cincinnati, Ohio, USA, P&G has
on-the-ground operations in over 70 countries.

P&G is seeking business agreements with outside parties to
maximize the value of its intellectual property assets. For this
reason, the company has charged its External Business Development &
Corporate Licensing Organization with the task of selling, licensing
and, in some cases, donating its “treasure trove” of technologies to
other companies and universities. The unit also is responsible for
licensing select P&G brand trademarks. For more information, visit

About Morningstar Foods Inc.

Morningstar Foods Inc. is a subsidiary of Suiza Foods Corporation,
the nation’s leading dairy processor and distributor, producing a full
line of company-branded and customer-branded products. Some of
Morningstar Foods brands include International Delight(R) coffee
creamer, Sun Soy(TM) soymilk, Hershey(R)’s Milk and Second Nature(R)
eggs. For more information, visit

(a) Source: Beverage Marketing Corporation, The National Coffee

Market, 2000


CONTACT: BSMG Worldwide, Dallas
Julie deVore, 972/830-2740
Global Licensing, P&G
Ed Bastian, 513/945-6202
Food and Beverage Media Relations, P&G
Margaret Swallow, 513/945-6294

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