AMSTERDAM – CSM, the world's largest bakery products supplier, may sell up to one third of its recession-hit European business, hurt by weak consumer spending and high prices for key ingredients such as wheat and sugar.
The Dutch food group, which swung to a surprise net loss for 2011 on Tuesday, is pinning recovery hopes on its more profitable Purac unit. This makes lactic acid, used in a range of goods from salad dressings and beverages to household detergents.
CSM said it plans to restructure or divest as much as 30 percent of its European bakery supplies division this year.
"The economic downturn in the United States and Europe and the ongoing financial crisis have weakened demand," CSM said.
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