Milling & Baking News - November 13, 2012 - (Page 13)

and BakeMark were all able to improve their EBITA in a market impacted by lower consumer spending,” he said. Overall, CSM EBITA was €20.9 million ($27.1 million) in the third quarter of fiscal 2012, down 26% from €28.3 million in the same period a year ago. Excluding one-off costs, EBITA in the most recent quarter was €40.4 million ($52.3 million), up 33% from €30.3 million. Sales were €834.2 million ($1,079.7 million), up 6% from €784.8 million. Mr. Hoetmer described the performance of the “future CSM,” which will consist of Purac and Caravan Ingredients, as “satisfactory” against a background of ongoing tough market situation. “EBITA at both Purac and Caravan Ingredients increased in Q3 compared to Q3 2011,” he said. “We have covered most of our raw materials for the remainder of 2012. We will continue to respond to changing consumer preferences towards lower cost/better value products. Our Relevance restructuring program is on track and is contributing to the improved results. As announced previously, savings in full year 2012 will exceed the original target of €30 million of savings in 2012.” MBN Morning foods wake up at Kellogg BATTLE CREEK, MICH. — After sustaining a year-over-year sales decline of 1.7% in the first quarter of fiscal 2012 and only 1.2% growth in the second quarter, the U.S. Morning Foods & Kashi segment at The Kellogg Co. posted strong returns in the third quarter, as internal net sales increased 5.4%. At $946 million, net sales for the segment, which includes U.S. cereal, Pop-Tarts, health and wellness, and Kashi businesses, were up from $939 million in the second quarter of fiscal 2012 and $941 million in the first quarter, and compared with $897 million in the third quarter of fiscal 2011. In a Nov. 1 conference call with analysts, David Denholm, vice-president of Kellogg and president of U.S. Morning Foods & Kashi, said the recovery owes much of its success to Kellogg’s cereal business. “The cereal category responds to brand building, innovation and nutrition, and we are seeing the benefits of our actions as we’ve progressed through the year,” Mr. Denholm said. “For cereal, the volume declines that we experienced early in the year, in response to previous price increases, certainly had the most significant impact in the first two quarters, although obviously the situation has improved sequentially as pricing moderated as we’ve moved through the year.” Mr. Denholm said cereal posted net sales growth of 6% during the third quarter, driven by innovation, an increase in the level of brand building and an easier shipment comp. He said the company’s cereal innovation strategy involves having the right level of pressure each year, even as Kellogg works to improve the “stickiness” of its launches. “Our share of innovation is now 50% of the category, with the next biggest / competitor at 35%,” he said. “Our innovation has been performing well this year, and Krave, which we introduced in January, continues to hold almost a share point of the category. That represents a strong start for just two (stock-keeping units) and shows that both trial and repeat have been strong since introduction. “In addition, we re-launched Special K Protein at mid-year to appeal to those consumers looking for increased protein in their diet. Although it’s early, we are pleased with the results so far as this innovation has also been well received, and trial rates have been strong.” Heading into 2013, Kellogg has another strong lineup of cereal introductions scheduled, Mr. Denholm said. Planned product launches include Special K Chocolate Strawberry, Cinnamon Jacks and Mini-Wheats Crunch. Kashi innovation will focus on expanding the brand’s all-family offerings with the launch of Berry Fruitful, while two s.k.u.s of Bear Naked Fit also will be introduced. Another area of strength at Kellogg in the third quarter was in Pop-Tarts, which posted a 6% gain in net sales while increasing its share position by 0.5 percentage points. “This gain was driven by strong retail execution, brand building behind the ‘Crazy Good’ advertising campaign, and programs such as the summer concert tour,” Mr. Denholm said. He said Pop-Tarts next big innovation will take place in January, when Kellogg rolls out two s.k.u.s of Oatmeal Delights. For the quarter ended Sept. 29, Kellogg had income of $296 million, equal to 83c per share on the common stock, which compared with income of $290 million, or 81c per share, during the same quarter of the previous year. MBN  Financial Results Turning product ideas into profits to s it take hat doe duct ideas W -pro turn new e? enu into rev answer: ow the n ng , we k ion experts, on Milli At Horiz ology and nutrit umer ns hn ge of co food-tec knowled ts that make n sightful in nt die indulge nd ingre trends a ealthier or more d h ad products And when you th! e mix, — or bo pabilities to th recipe. ill’s ca Carg inning ot the w you’ve g form rans ou t 6. elp y sit n h . Vi -450 e ca -742 ts ow w to profi ll 1-800 h in ca over Disc ct ideas .com or du ing pro onMill z Hori © 2012 Cargill Incorporated. Milling & Baking News November 13, 2012 / 13

Table of Contents for the Digital Edition of Milling & Baking News - November 13, 2012

Milling & Baking News - November 13, 2012
Change agent at General Mills, NAMA chairman celebrates ‘noble’ industry
Countering higher input costs, B.B.U. to raise prices in November
Late News - Flat Flowers earnings after one-time charge
Table of Contents
News/Comment - Lack of focus on farm issues likely to change
Editorial - Many milling positives in tough environment
Late News
Data - January-September flour output reaches new record high
Financial Results - Mondelez earnings down 29% in third quarter, sales fall 2%
Oreo, belVita buoy biscuit business at Mondelez
CSM B.S.N.A. unit performs well in tough market
Morning foods wake up at Kellogg
Industry Activities - Millers in ‘deep dive’ exploring possible vitamin D fortification
Meyer elected vice-chair of NAMA; two honorary memberships named
Merchandising - Winners in America’s Best Raisin Bread Contest crowned
Business - Bakers look to resume operations in wake of Hurricane Sandy
Flowers acquiring Bimbo assets in California, Oklahoma
With Wisconsin project, Horizon doubling whole wheat capacity
Baker’s Pride opens new donut plant
Wind farm built to supply power to Bimbo in Mexico begins operating
Strikes may be looming at Hostess Brands baking plants
Mondelez to close Mr. Christie cookie plant in Toronto
Red Star, Lesaffre to raise yeast prices
ADM opens sweetener transfer terminal in Chattanooga
Nutrition and Health - Whole Grain Stamp success spans participating companies of all sizes
Food Ingredient Solutions - Indulge in extras
Milling Technology - ADM Milling expanding Beech Grove flour mill
The Andersons agrees to major grain facility acquisition
Gavilon opens grain facility in South Dakota
POET-DSM buys equipment for cellulose production
Washington - Breaking Washington gridlock
Weather Outlook - In marked change, world weather pattern transitioning to ‘normal
Washington - Elections may bring little change to Senate ag committee
Farm bill fate uncertain in lame duck session of Congress
U.S.D.A. offers assistance to hurricane victims
People - With Cargill c.f.o. resignation, David MacLennan to fill in
Brad Pederson named supply chain manager at Caravan Ingredients
ADM taps two for management positions
Transportation and Distribution - N.G.F.A. seeks easier path to contest ‘unreasonable’ rail rates
Nutrition and Health - Initiative shows gains in nutrition content in children’s cereal
Ingredient Market Trends - U.S.D.A. raises forecasts for U.S. and world 2012-13 wheat ending stocks
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - November 13, 2012