Milling & Baking News - September 12, 2017 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
SEPTEMBER 12, 2017

bakingbusiness.com / foodbusinessnews.net

WASHINGTON

Bread Industry Perspective

Heavy lifting - largest U.S. bakers
in midst of major restructuring

President Trump's
agenda: Delayed
or derailed?
Story on Page 32

LATE NEWS

Bimbo opens plant
in Colombia
HORSHAM, PA. - Grupo Bimbo
S.A.B. de C.V. has opened a new production plant and distribution center
in Tenjo, Colombia. The facility took
a year to build and cost $86 million,
Bimbo said. The plant has the capacity to produce 8 tons of product per
hour and has lines to make hamburger buns, snacks and puff-pastry buns,
a first for the Colombian market. According to the company, the proximity of the new facility to the original
Tenjo plant will foster logistics optimization, generate synergies and better facilitate the distribution process.
"The Tenjo plant is already making
Grupo Bimbo very proud and our
Continued on Page 8

©SYDA PRODUCTIONS - STOCK.ADOBE.COM

S

ales trends in the fresh bread category were weak once again over
the past year. While the decline in
unit sales was modest compared with
earlier years and very modest in dollars,
the nation's largest baking companies
have moved to reshape their businesses
to remain competitive and successful in
what has been a chronically flat market.
The realities of conditions in the U.S.
bread market were bluntly described recently by Allen L. Shiver, president and
chief executive officer of Flowers Foods,
Inc., Thomasville, Ga.
"We are realistic about the current
marketplace as we're seeing across the
packaged foods category, overall consumption in the bakery category is
down," he said in an Aug. 10 conference
call with investment analysts. "This is
putting pressure on volumes, and our
revised guidance reflects this reality. As

a result, we are increasing the urgency of
our cost-cutting efforts and our focus on
product innovation."
Fresh bread sales in the 52 weeks ended July 9 totaled $8,934 million, down
0.1% from a year earlier, according to
Information Resources, Inc., a Chicagobased market research firm. Unit sales of
3,775 million were down 0.7%. Private
Continued on Page 26

Hostess Brands' 'race for space'
includes innovation, new channels
BOSTON - While not yet at the old
company's sales levels, Hostess Brands,
Inc. has made great strides over the past
several years to put itself into a position
to expand market share, company executives noted during a Sept. 6 presentation at the Barclays Global Consumer
Staples Conference in Boston.
William D. Toler, president and chief
executive officer of Hostess, described

the Kansas City-based company's theme
for 2017 as a "race for space."
"Our goal was to get five new items
in," Mr. Toler said. "We had a couple of
items that we discontinued ourselves
to keep the category fresh and keep the
products moving. We've gained about
that number of net items that we expected to gain, 10% growth in total distribution points this year. And to continue to
drive that penetration in channels that is
enabled by the warehouse model. That's
your downscale C-stores, the bodegatype outlets. Those are places where
we believe we can be very effective. So
those are all areas that we're working on
to get out there."
In 2017, Hostess has about 22 items on
Continued on Page 10


http://www.bakingbusiness.com http://www.foodbusinessnews.net http://STOCK.ADOBE.COM

Table of Contents for the Digital Edition of Milling & Baking News - September 12, 2017

Milling & Baking News - September 12, 2017
Bread Industry Perspective - Heavy lifting – largest U.S. bakers in midst of major restructuring
Hostess Brands’ ‘race for space’ includes innovation, new channels
LATE NEWS - Bimbo opens plant in Colombia
Contents
NEWS Comment - Jitters mount from trade talks on two fronts
Editorial - Digging ever deeper for cost savings
Late news
Business - Baking companies manage first storm, brace for another
Grupo Bimbo to invest $129 million in Mexico City distribution center
Barilla expanding restaurant concept with two locations in California
Taste of Nature acquires licensing agreement for Mrs. Fields Cookies
Shiver details Flowers Foods shift to focus on four principal brands
Redwood Group acquires Lathrop grain operations in Missouri
Private equity firm invests in HannahMax Cookie Chips
General Mills’ effort to secure trademark for yellow box fails
Udi’s bread launch in 2018 will feature bigger slices, better texture
Financial Results - North Dakota Mill & Elevator profit edges upward in fiscal 2017
Dunkin’ Brands details plans to refinance, names new c.m.o.
News feature - Northern exposure: Quinoa takes hold among growers on Canadian prairies
Bread Industry Perspective - Hale keys positives for bread versus other food categories
Washington - President Trump’s agenda: Delayed or derailed?
Export and Trade Issues - Trump threat to withdraw from KORUS elicits strong opposition
I.G.C. forecasts record high flour trade of 17 million tonnes in ’17-18
People - New leadership after departures from Louis Dreyfus grain business
Kevin Toland, new Aryzta c.e.o., to take helm Sept. 12
Don Osborne elected BEMA chairman; Paul Lattan elevated to vice-chair
Kim Nelson, president of General Mills Foundation, to retire
Markel hires vice-president for food group business system
Ingredient Market Trends - Spring wheat harvest nearly completed, winter wheat planting under way
Ingredient Week
Supplier Innovations
Classifieds
Marketplace Business Network
Ad Index
Archive
Milling & Baking News - September 12, 2017 - LATE NEWS - Bimbo opens plant in Colombia
Milling & Baking News - September 12, 2017 - 2
Milling & Baking News - September 12, 2017 - 3
Milling & Baking News - September 12, 2017 - NEWS Comment - Jitters mount from trade talks on two fronts
Milling & Baking News - September 12, 2017 - 5
Milling & Baking News - September 12, 2017 - 6
Milling & Baking News - September 12, 2017 - Editorial - Digging ever deeper for cost savings
Milling & Baking News - September 12, 2017 - Late news
Milling & Baking News - September 12, 2017 - 9
Milling & Baking News - September 12, 2017 - 10
Milling & Baking News - September 12, 2017 - Business - Baking companies manage first storm, brace for another
Milling & Baking News - September 12, 2017 - Taste of Nature acquires licensing agreement for Mrs. Fields Cookies
Milling & Baking News - September 12, 2017 - 13
Milling & Baking News - September 12, 2017 - Shiver details Flowers Foods shift to focus on four principal brands
Milling & Baking News - September 12, 2017 - 15
Milling & Baking News - September 12, 2017 - Private equity firm invests in HannahMax Cookie Chips
Milling & Baking News - September 12, 2017 - 17
Milling & Baking News - September 12, 2017 - General Mills’ effort to secure trademark for yellow box fails
Milling & Baking News - September 12, 2017 - Udi’s bread launch in 2018 will feature bigger slices, better texture
Milling & Baking News - September 12, 2017 - Dunkin’ Brands details plans to refinance, names new c.m.o.
Milling & Baking News - September 12, 2017 - 21
Milling & Baking News - September 12, 2017 - News feature - Northern exposure: Quinoa takes hold among growers on Canadian prairies
Milling & Baking News - September 12, 2017 - 23
Milling & Baking News - September 12, 2017 - 24
Milling & Baking News - September 12, 2017 - 25
Milling & Baking News - September 12, 2017 - 26
Milling & Baking News - September 12, 2017 - 27
Milling & Baking News - September 12, 2017 - Bread Industry Perspective - Hale keys positives for bread versus other food categories
Milling & Baking News - September 12, 2017 - 29
Milling & Baking News - September 12, 2017 - 30
Milling & Baking News - September 12, 2017 - 31
Milling & Baking News - September 12, 2017 - Washington - President Trump’s agenda: Delayed or derailed?
Milling & Baking News - September 12, 2017 - I.G.C. forecasts record high flour trade of 17 million tonnes in ’17-18
Milling & Baking News - September 12, 2017 - 34
Milling & Baking News - September 12, 2017 - 35
Milling & Baking News - September 12, 2017 - Kevin Toland, new Aryzta c.e.o., to take helm Sept. 12
Milling & Baking News - September 12, 2017 - Markel hires vice-president for food group business system
Milling & Baking News - September 12, 2017 - 38
Milling & Baking News - September 12, 2017 - Ingredient Market Trends - Spring wheat harvest nearly completed, winter wheat planting under way
Milling & Baking News - September 12, 2017 - Ingredient Week
Milling & Baking News - September 12, 2017 - 41
Milling & Baking News - September 12, 2017 - 42
Milling & Baking News - September 12, 2017 - 43
Milling & Baking News - September 12, 2017 - 44
Milling & Baking News - September 12, 2017 - 45
Milling & Baking News - September 12, 2017 - 46
Milling & Baking News - September 12, 2017 - 47
Milling & Baking News - September 12, 2017 - 48
Milling & Baking News - September 12, 2017 - Supplier Innovations
Milling & Baking News - September 12, 2017 - Classifieds
Milling & Baking News - September 12, 2017 - Marketplace Business Network
Milling & Baking News - September 12, 2017 - 52
Milling & Baking News - September 12, 2017 - Ad Index
Milling & Baking News - September 12, 2017 - Archive
Milling & Baking News - September 12, 2017 - 55
Milling & Baking News - September 12, 2017 - 56
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