Milling & Baking News - December 8, 2015 - 4

Contents X

December 8, 2015 Vol. 94, No. 21

X INDUSTRY ACTIVITIES

X NEWS Comment

Story on Page 25

Pinnacle transaction
a bellwether
for 2016?

NAMA objects to Times'
portrayal of modern
flour milling practices

11

Moskow: Kellogg offers
'best risk-reward in our space'

12

New World adds gluten-free
pasta lines in Memphis

15

Morrison: Goldfish cracker
brand 'hitting on all cylinders'

16

Makeovers to La Brea, Otis
Spunkmeyer boost Aryzta

21

Former Canada Bread
executive to join Flowers board

Credit Suisse upgrades its outlook for The
Kellogg Co. to "outperform." Analyst Robert
Moskow cites improvement in the company's
cereal business.

R.-T.-E. cereal on
the road to recovery
Story on Page 28

XDEPARTMENTS
7
10
14
16
21
22
26
32
34
36
37
50

Editorial
Business
Financial Results
Merchandising
People
Industry Activities
International
Export and Trade Issues
Washington
Supplier Innovations
Ingredient Week Trends
Archive

The company in 2016 will begin making
Ronzoni gluten-free pasta on two lines that are
part of a $20 million expansion.

First-quarter operating profit in Campbell Soup
Co.'s Global Biscuits and Snacks division rises
16% behind strong Goldfish results.

First-quarter revenue increases 5.2% in Aryzta
AG's Food North America unit. New consumer
brand concepts involve La Brea and Otis
Spunkmeyer.

Richard Lan, who led Canada Bread when
Maple Leaf Food Group owned it, and Rhonda
Gass, a Stanley Black & Decker executive, join
the board.

During the season when it is traditional for
businesses to speculate about trends that
are likely to emerge in the new year, the
flour-based foods industry remains fixated on
gluten-free eating and whether it will gain,
retain or lose traction. Although it is a trend
that has shown more staying power than
many past fads, gluten avoidance to date has
not been severe enough to erode per capita
flour consumption. But where is the trend
heading?
One indicator suggesting future growth
in gluten-free eating is the recent decision
of Pinnacle Foods to pay nearly $1 billion
to acquire Boulder Brands, the leading U.S.
maker of gluten-free analogues such as bread,
cookies, crackers and pastries. Underpinning
its decision to buy Boulder, Pinnacle cited data
indicating dazzling recent growth for glutenfree foods and a market valuation for Boulder
that no longer seemed too high.
Left unsaid in Pinnacle's announcement
was the reason Boulder could be purchased
at $11 per share, a discount to the company's
52-week high. Boulder shares tumbled in
June when the company announced the
replacement of its chief executive officer and
telegraphed a pending cut in the company's
earnings outlook for 2015. In August, the
company announced a quarterly loss, driven
by broad declines in sales of the company's
gluten-free products. Whether this decline
indicates the peak in gluten-free eating or
Pinnacle's ability to revive this business in
2016 is a question of considerable interest to
the flour-based foods industry. MBN

XCOMPANIES IN THIS ISSUE
Aryzta AG .................................. 16

Flowers Foods, Inc. ................. 1, 21

The Original Cakerie ................... 10

RiV Manufacturing ....................... 8

Boulder Brands........................... 11

General Mills, Inc............ 12, 16, 28

Panera Bread Co......................... 12

Salinity ....................................... 36

Canada Bread Co. ...................... 21

George Weston Ltd..................... 14

Pennant Ingredients ..................... 1

Shick Solutions ........................... 21

Campbell Soup Co. ..................... 15

J&J Snack Foods Corp. ................ 16

Pinnacle Foods ........................... 11

Yum! Brands .............................. 12

Colborne Foodbotics..................... 8

Kellogg Co. .................... 11, 12, 28

Post Holdings, Inc. ................ 12, 30

DDW, The Color House................ 36

McDonald's ................................ 12

PowderPure ............................... 36

Ebro Foods ................................. 12

New World Pasta Co. .................. 12

Puratos ........................................ 1

4 / December 8, 2015 XMilling & Baking News

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Milling & Baking News - December 8, 2015

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