Baking & Snack - February 2015 - 16

Dairy, commodities temper outlook for 2015
Executives from leading middle market food
and beverage companies - those with sales
ranging from $10 million to $1 billion - said
the industry continues to enjoy growth but
expressed concerns about an increasing cost
structure driven by rising commodity prices,
according to a survey by GE Capital, Chicago.
"From our customers' standpoint, they feel
really good about what is going on in the US,
in general," said Chris Nay, senior managing
director of food and beverage for GE Capital.
"Many said they're worried about more government regulation, more people telling them
how to run their business. But from a consumer
perspective, they're comfortable where the consumer is."
Issues addressed included commodity costs,
improving operating efficiencies, and understanding the changes taking place among retailers and food service operators.
"Commodity pricing is still a concern," Mr.
Nay said. "The big standout is dairy. That's one
that has been creating havoc inside operating
budgets. It's a category where you are controlling

costs and you know you can't pass it on to retailers as fast as it has gone up.
"Another inflationary commodity is sugar. The
good news is grain-based [commodities] seem
to have been mellow for the past 18 months."
More than half of the companies surveyed said
they plan to improve efficiencies in the next 12
months by increasing automation, reducing waste
and replacing old equipment.
"There is an aging infrastructure out there to
feed all of us," Mr. Nay said. "The market is going
through an update period. We see a strong investment in plant expansion, whether it is for food
safety or to improve efficiency."
Mr. Nay outlined the three tiers of efficiency he
sees taking place in the market.
"Most people think about efficiency around
a three-year payback," he said. "Three to five
years is the middle ground. This is where the
issue of food safety pushes the investment.
North of five years, then it is a discussion;
here you are talking about expansion, a significant investment."
-Keith Nunes, Food Business News

Benton becomes Flowers' chief
manufacturing officer
Robert L. Benton, currently senior vice-president of manufacturing and operations support
at Flowers Foods, has been promoted to senior
vice-president and chief manufacturing officer at
the Thomasville, FL-based company..
Mr. Benton succeeds Michael A. Beaty, who will
retire this spring. Until he steps down, Mr. Beaty,
who was executive vice-president of supply chain,
will serve as executive vice-president and will oversee special projects
for the company. His tenure at Flowers dates back nearly half a century.
In his elevated role, Mr. Benton will oversee all production facilities
and associated capital expenditures, leading the company's manufacturing and engineering teams. He will have responsibility for all major
capital projects, including new baking plant start-ups and expansions,
which the company described as "an area of focus." He also will oversee
regulatory/quality assurance and safety/environmental affairs.
Since 1980, Mr. Benton has held local, regional, and corporate manufacturing roles for the company. He was promoted in 2011 to senior
vice-president of manufacturing and operations support. He also has
served in leadership roles with a number of industry groups, including
the American Institute of Baking, Baking Equipment Manufacturers
and Allied, and the American Society of Baking, where he was chairman from 2008-09.

16 Baking & Snack February 2015 / www.bakingandsnack.com

Monterrey, Mexico-based
Gruma S.A.B. de C.V. has
unveiled plans to invest $50
million in a new plant in
Moscow that will produce
wheat tortilla wraps, tortillas
and tortilla chips. It will be
able to make 31,500 tons of
product per year.
Food and Drug
Administration (FDA) gave
Jan. 1, 2018, as the uniform
compliance date for food labeling regulations issued between Jan. 1, 2015, and Dec.
31, 2016. An FDA-proposed
rule to make changes to the
Nutrition Facts Panel potentially may become a final rule
during that two-year time
period, but the rule would
not automatically have a Jan.
1, 2018, compliance date.

People
Ken Cotich joined Labriola Baking
Company, Alsip, IL, as the company's CEO.
Dunbar Systems, Inc., Lemont, IL, has
named Doug Hale vice-president of operations, Jim Diver director of sales, Mike
Dunbar CEO and Mark Dunbar president.
BakeRite Systems LLC, Richmond,
KY, hired William G. Grutter as
vice-president.
DuPont, Wilmington, DE, named Matthias
Heinzel president of DuPont Nutrition &
Health. He is succeeding Craig F. Binetti,
who is retiring after 38 years of service.
Jeffrey J. Counsell, Scott Delphey and
Adam Ratajski announced the formation of
Global Food Properties Inc., Chicago and
Los Angeles.
Reading Bakery Systems, Robesonia, PA,
promoted Jim Warren to vice-president of
Exact Mixing.

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Baking & Snack - February 2015

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