Milling & Baking News - June 12, 2012 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JUNE 12, 2012 bakingbusiness.com / foodbusinessnews.net FEATURE Flowers broadening Northeast penetration with Lepage Bakeries THOMASVILLE, GA. — Flowers Foods, Inc. has entered into a definitive agreement to acquire Lepage Bakeries, Inc., of Auburn, Maine, for $370 million in cash and stock. Lepage Bakeries operates three baking plants — two in Lewiston, Maine, and one in Brattleboro, Vt. — and has regional brands in Country Kitchen and Barowsky’s as well as a distribution system serving retail and food service customers throughout the Northeast. Founded in 1903, Lepage is expected to expand Flowers’ presence in New England and New York by providing a broader variety of bread, buns and rolls to Flowers. Additionally, Lepage’s direct-store delivery platform is expected to accelerate penetration of Flowers’ Nature’s Own and Tastykake brands in the Northeast. Lepage generates approximately $166 million in net sales annually. “The Lepage name is one of the oldest and most respected in the baking industry, and we are fortunate to combine this fine organization with Flowers Foods,” said George E. Deese, chairman and chief executive officer of Flowers. “Lepage has operating strategies similar to Flowers’ and the Lepage team is known for its innovation and quality. We believe the addition of Lepage supports our strategy as it will bring efficient bakeries with available production capacity, access to markets in the Northeast, new products and Continued on Page 11 Horizon Milling at 10: Great success never a foregone conclusion Story on Page 24 LATE NEWS F.A.O. food price index tumbles in May ROME — Diminished tightness in the world supply/demand balance, signs of global economic weakness and a stronger U.S. dollar contributed to sharp declines in global food prices, the Food and Agriculture Organization of the United Nations said on June 7. Issuing its monthly food price index, the F.A.O. said the benchmark fell 4% in May to 204 points, down 9 points from April. The drop left the index at the lowest level since September 2011, down 14% from the high of 238 in February 2011. “Crop prices have come down sharply from their peak level but they remain still high Continued on Page 8 Starbucks to acquire La Boulange, strengthening baked foods focus SEATTLE — Starbucks Coffee Co. has agreed to acquire San Francisco-based Bay Bread, L.L.C. and its La Boulange bakery brand for $100 million from management and an i nvestment group, Next World Group. According to the company, the move will further heighten focus on baked foods at Starbucks coffee shops and will make the Seattle-based company a major player in the bakery-cafe business. La Boulange operates 19 French style retail locations in the Bay Area and sells baked goods, pastries, salads and sandwiches in a casual, sit-down setting. The transaction, which also includes the hiring of renowned French baker Pascal Rigo, is part of Starbucks’ larger effort to expand its food business. “This acquisition will mark a significant next step in an important investment Continued on Page 12 Marking nine decades in partnership with grain-based foods http://www.bakingbusiness.com http://www.foodbusinessnews.net

Table of Contents for the Digital Edition of Milling & Baking News - June 12, 2012

Milling & Baking News - June 12, 2012
Late News - F.A.O food price index tumbles in May
Starbucks to acquire La Boulange, strengthening baked foods focus
Flowers broadening Northeast penetration with Lepage Bakeries
Table of Contents
News/Comment - Interpreting upbeat disposition at 35th Purchasing Seminar
Editorial - India offers dramatic contrasts in milling
Late News - Baker’s Pride to add donut facility in Iowa
Late News - Sosland debuts Sweetener Report
Late News - Kraft transferring stock listing to NASDAQ
Late News - Cargill to buy grain storage assets in Colorado
Business - Viterra shareholders approve acquisition by Glencore
Business - S.&P.: Flowers Foods ratings and outlook not affected by Lepage
Late News - Dakota Specialty Milling buys CHP Blenders
Late News - N.D. Mill & Elevator to add rail track
Business - ConAgra Mills discontinuing 100-lb flour bags
Business - Marubeni to expand in U.S. with $3.6 billion Gavilon acquisition
Business - Cargill to open new baking facility in Oregon in August
Business - N.D. Mill gains certification for ISO 22000 and ISO 9001
Financial Results - Sales for sweeteners, co-products boost Tate & Lyle results
Financial Results - Aryzta North American food sales rise 12%
I.A.O.M. Review - I.A.O.M. annual gathering features largest expo since 2001
I.A.O.M. Review - Ken Ball of Star of the West honored as Milling Operative of the Year
I.A.O.M. Review - I.A.O.M. gathers in Spokane for 116th annual meeting
Signature Interview - Horizon Milling at 10
Industry Activities - Stoufer: Relationships, innovation vital to whole grain acceptance
Industry Activities - Whole grain industry given glimpse of supply chain landscape
Industry Activities - Pepperidge recognized for packaging innovation
Industry Activities - A.B.A. urges Senate to vote for sugar reform
Industry Activities - Analysts consider prospects for Black Sea wheat futures
Weather Outlook - China, Russia and U.S. crops teeter on increased dryness
Supplier Innovations
Ingredient Market Trends
Ingredient Week
Classifieds
Marketplace Business Network
Ad Index
Archive

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