Milling & Baking News - November 13, 2012 - (Page 28)

Business  were when we went into this.” Looking into 2013, Mr. Prince said there would be more plant closings. Additionally, he said, “California will go through significant change once we start to execute the divestiture plan.” The question of synergies came up again late in the call when Mr. Servitje was asked when the Sara Lee transaction would be accretive on an earnings per share basis. Mr. Servitje passed the question to Mr. Prince, who assured the analyst B.B.U. will “exit 2013 a much more productive company than when we started.” “When we entered into the Sara Lee transaction, we communicated we have about three years of work and the first two years were really important,” Mr. Prince said. “This year, 2013, is full of opportunity, and all of our efforts are going to be focused on creating a new B.B.U., a new platform in the U.S. “ The extent of the effort needed to create this new platform was not a surprise, Mr. Prince said. “Frankly, that was the thesis on this all along,” he said. “We acquired a $2 billion baked goods business, largely bread and bun business, that wasn’t very efficient. And, it does take time to create the efficient platform that’s needed. And, next year will move us forward substantially in creating that efficient platform.” Asked by an analyst about “wheat flour inventories,” Mr. Prince said B.B.U. has remained covered within the Grupo Bimbo guidelines of four to nine months. “The dynamics around the wheat market have been quite volatile,” Mr. Prince continued. “Obviously, and it goes back to 2008 and 2009, we’ve been operating in a very volatile environment, wheat trading at one time of $7.50 and very quickly moving to $9.50. And, so, the back half of next year is — the world markets are changing and, while we’re sitting at $9.50 wheat today, we don’t know, we might be sitting at $10, $11 wheat in four to five months’ time. So, it’s a very important question for us to stay on top of. And, here in the U.S., we’re pricing into it, in to $9.50 wheat, and in the back half of next year, we could be faced with $10, $11 wheat. We don’t know that.” MBN neighborhood surrounding the facility.” Mr. Cuba said while it was an appropriate location for a large bakery when it was first built, the significant residential development surrounding it has led to operating constraints that will become increasingly difficult with the further residential expansion that is under way. Mondelez said some of the current production at the bakery will be transitioned to other bakeries in Montreal and Toronto, and the rest will be split between the company’s other North American plants and comanufacturers. MBN related to the volatile U.S. agricultural markets, plus distribution expenses, have to be addressed through price adjustments,” said John Riesch, president of both companies. “I am keenly aware of the multiple cost challenges facing our key bakery market, therefore our pricing action is short of the added cost of yeast and ingredient processing for the coming year.” MBN foods and beverages consumers enjoy.” ADM said the terminal includes a 50,000-square-foot warehouse and sits on 17 acres in Chattanooga’s Enterprise South Industrial Park. The company’s operations from its Jersey Pike and River Bend terminals in Chattanooga and its terminal in Cleveland, Tenn., have been consolidated into the new facility. MBN / Mondelez to close Mr. Christie cookie plant in Toronto TORONTO — Mondelez Canada, a division of Mondelez International, is planning to close its Mr. Christie cookie plant in Toronto in the third quarter of 2013. The closing will affect about 550 employees. The 625,000-square-foot plant was built in 1948. Mondelez said the decision to close the plant was due to the facility’s age and the surrounding area. “This is a difficult decision, given the role this facility has played within our organization and in the community for 64 years,” said Alvaro Cuba, vice-president of operations for Mondelez Canada. “However, the plant faces some unique challenges resulting from the changing Red Star, Lesaffre to raise yeast prices MILWAUKEE — Red Star Yeast Co. and Lesaffre Yeast Corp. will increase the price of U.S. and Canadian fresh and dry yeast, as well as a variety of baking and food ingredients, effective Jan. 1, 2013, or as existing contracts expire. The companies said they will raise the price of fresh cream yeast by 2c per lb, fresh compressed yeast by 4c per lb, and dry baker’s yeast in all forms by 8c per lb. Baking and food ingredients will increase on average 5%. “Despite gains in productivity and efficiency gained through aggressive capital investment programs over the last few years, rapidly rising commodity and ingredient costs ADM opens sweetener transfer terminal in Chattanooga CHATTANOOGA, TENN. — Archer Daniels Midland Co. has opened a terminal facility in Chattanooga that will be used to transfer liquid and dry bulk sweetener products from railcars to trucks. The terminal will handle corn syrup, high-fructose corn syrup, dry dextrose, dry starch and dry and liquid sugar. 28 / November 13, 2012 Milling & Baking News “The Chattanooga facility will enable ADM to efficiently ship highquality sweeteners to customers in several Southeastern states,” said Chris Cuddy, vice-president and general manager of ADM Sweeteners and Starches. “Made from safely grown and produced ingredients, these sweeteners are used in many

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