Milling & Baking News - November 13, 2012 - (Page 22)

Business  Flowers acquiring Bimbo assets in California, Oklahoma THOMASVILLE, GA. — Flowers Foods Inc. has announced an agreement under which the company will acquire baking assets in California and Oklahoma from Grupo Bimbo S.A.B. de C.V. Financial terms of the transactions, which have been approved by the U.S. Department of Justice, were not disclosed. Under terms of the transaction, Thomasville-based Flowers will gain perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced bread, buns and rolls in California, a business with annual sales of about $134 million. In Oklahoma, Flowers will gain perpetual, exclusive and royalty-free license to market the Earthgrains brand for a wide range of fresh baked foods in the Oklahoma City market area. Flowers said the transactions will be completed in phases, with the Oklahoma deal to be completed shortly and the California transaction to close by the end of March 2013. “The acquisition strengthens our market presence in California, adding about 14.5 million people to the 70% of the U.S. population that currently has access to our fresh breads and rolls,” said George E. Deese, chairman and chief executive officer. “This moves us closer to our goal of reaching 75% of the U.S. population through our direct-store delivery system by 2016.” Flowers first entered into the Southern California market with the 2008 acquisition of Holsum Bakery, Inc., based in Phoenix. In late October 2011, Mexico City-based Bimbo and the D.O.J. reached an agreement under which Bimbo was allowed to acquire the North American fresh baking business of Sara Lee Corp. Under the agreement, Bimbo was required to divest the brands in the markets named in the Flowers transactions as well as smaller brands in the Harrisburg/Scranton region of Pennsylvania and the Kansas City and Omaha metropolitan areas. The smaller brands include Sara Lee’s EarthGrains brand and B.B.U.’s Mrs Baird’s brand in the Kansas City area; Sara Lee’s EarthGrains and Healthy Choice brands in the Omaha area; and Sara Lee’s Holsum and Milano brands in the Harrisburg/Scranton area. The divestitures also will include associated manufacturing, distribution and marketing assets needed “to compete effectively in the sale of those brands in those areas,” the D.O.J. said. Details of those assets were not offered by Flowers in its announcement. Earlier this year, Pan-OGold Baking Co., St. Cloud, Minn., and Schmidt Baking Co., Baltimore, were approved as buyers of brands Bimbo was required to divest in Omaha (Pan-O-Gold) and Harrisburg and Scranton (Schmidt). As a result, only Kansas City remains among Bimbo’s required divestiture markets. MBN 11,000 cwts of wheat flour and 10,000 cwts of semolina. Horizon has not announced how much capacity will be added with the whole wheat addition. Horizon said the expansion will allow the company to “help U.S. schools meet the new U.S. Department of Agriculture rules that require all grains served in school meals to be whole grain-rich within two years.” The company noted 32 million lunches and 12 million breakfasts are served to children at school each day. In addition to offering traditional whole wheat flour, Horizon also offers GrainWise wheat aleurone and WheatSelect white spring whole wheat flour. MBN Baker’s Pride produces a complete portfolio of frozen ready-to-finish and ready-to-sell bulk and pre-packaged donuts for in-store bakery, food service and convenience stores. The company’s donut products have no trans fat and include yeast raised rings, varieties of filled donuts, cake donuts, as well as holes and mini/ gems in a range of flavors and toppings. The entire donut portfolio is available in a variety of packaging options, including cups, tubs, clamshells and trays. MBN / With Wisconsin project, Horizon doubling whole wheat capacity KENOSHA, WIS. — Horizon Milling L.L.C. has announced plans to install whole wheat milling capacity at its Kenosha flour mill. The project, targeted for completion later this fall, will double whole wheat milling capacity across Horizon’s nationwide network of 18 flour mills. “This increase in whole wheat capacity reflects consumers’ growing desire to incorporate more whole grains into their diets,” said Daniel P. Dye, president of Horizon Milling. “We are expanding our ability to help our customers formulate great-tasting, wholesome and nutritious products that today’s consumers are seeking for themselves and their families.” Horizon is the nation’s largest flour milling company and currently produces whole wheat flour at mills in Ogden, Utah; Mankato, Minn.; and Mount Pocono, Pa. The Kenosha mill currently is the eleventh largest U.S. flour mill with daily capacity of 21,000 cwts, including Baker’s Pride opens new donut plant BURLINGTON, IOWA — Baker’s Pride, Inc., a commercial bakery and manufacturer of private label and branded baked products, has opened a new 65,000-square-foot donut facility in Burlington at the Mt. Pleasant Street Bakery, a Baker’s Pride company. The hi-tech production line features blast freezer capabilities prior to being packaged frozen. After the blast freeze, products are held at minus 10 22 / November 13, 2012 Milling & Baking News degrees in a holding freezer to lock in freshness and ensure product integrity, the company said. “The completion of this innovative, modern facility brings excitement and continued focus on our strong commitment to the quality and taste of our products,” said Rob Brookhart, president of Baker’s Pride, Inc. “Our ability to utilize the latest technology allows us to produce the highest quality donut products for our customers.”

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