Baking & Snack - September 2017 - 16

Mondelez not yet 'back to normal' from cyber attack
While the impact of a June malware attack on Mondelez
International, Deerfield, IL, was severe, the 2.3% impact on sales
was smaller than the 3% projected by the company earlier in July.
The cost from the attack was estimated at just over $150 million in
lost sales and incremental expenses, but Mondelez said recovery
work will continue into the second half of the year.
In its second-quarter earnings announcement, Mondelez offered
additional detail about the attack and associated financial costs.
"The malware affected a significant portion of the company's
global Windows-based applications and its sales, distribution and
financial networks across the company. During the last four days
of the second quarter and early third quarter, the company executed business continuity and contingency plans to contain the
impact and minimize the damages from the malware and restore
its systems. This allowed the company to service customer needs
and continue sales and production at a reduced capacity while progressing recovery activities. Based on the nature of the malware
and its impact to the company's technology, the company did not
expect nor has it found to date any instances of company or personal data released externally.

Mondelez

"Although the company believes it has now largely contained
the disruption and restored a majority of its affected systems, the
company anticipates additional work during the second half of
2017 as it continues to recover and further enhance the security
of its systems. For the second quarter, the company estimates
that the malware incident had a negative impact of 2.3% on its
net revenue growth and 2.4% on its organic revenue growth. The
company also incurred incremental expenses of $7.1 million as a
result of the incident."
- Josh Sosland, Milling & Baking News

J&J Snack Foods acquires Labriola Baking
J&J Snack Foods Corp., Pennsauken, NJ, purchased Labriola
Baking Co., Alsip, IL, a producer of artisan bread products
and soft pretzels. Financial terms of the transaction were not
disclosed.
Labriola Baking was founded as a local Chicago-area bakery in 1993 and has grown into a national supplier of prebaked
breads, rolls and soft pretzels for instore bakery and foodservice
channels.
"The Labriola Baking Co. was built upon high quality, authentic products," said Jerry Law, senior vice-president, J&J Snack
Foods. "We have been a longtime admirer of the company, and
we're eager to have Labriola join our J&J Snack Foods family of
brands and bakeries. We look forward to marrying Labriola's
quality product offerings with our current portfolio, thus providing additional opportunities for our customers and consumers."

Labriola Baking

The deal follows J&J Snack Foods' December 2016 acquisition of Hill & Valley, Inc., Rock Island, IL, a producer of
pre-baked cakes, cookies, pies, muffins and other desserts for
instore bakeries.

Flowers Foods closing North Carolina plant

Flowers Foods, Inc., Thomasville, GA, will
shut down its snack cake plant in WinstonSalem, NC. Flowers said the decision to close
the plant was made "to improve the profitability of its warehouse segment."
According to the company, sweet baked
foods production at Winston-Salem would
be shifted to "more efficient Flowers snack
cake bakeries," and employees affected by the closing would be
offered a severance package.

16 Baking & Snack September 2017 / www.bakingandsnack.com

Flowers Foods operates 49 bread and
cake plants in the US (a figure that includes the Winston-Salem plant). Other
Flowers Foods' sweet goods plants include
locations in Oxford and Philadelphia and
Cleveland, TN.
Flowers said it expects costs associated with
the closing of the Winston-Salem plant to be
between $4 million and $6 million.
- Josh Sosland, Milling & Baking News

http://www.bakingandsnack.com

Baking & Snack - September 2017

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