Milling & Baking News Corporate Profiles - November 2013 - (Page 12)

Grain-based Foods of an agreement between Bimbo and the Department of Justice allowing Bimbo to complete its acquisition of Sara Lee first announced in 2010. The Bimbo divestiture deal gave Flowers baking assets in California and Oklahoma. In California, Flowers acquired perpetual, exclusive and royalty-free licenses to the Sara Lee and Earthgrains brands for sliced bread, buns and rolls, a business with annual sales of about $134 million. The Sara Lee deal, in turn, came less than three months after Flowers completed the acquisition of Lepage Bakeries, Inc. of Auburn, Maine, for $370 million. Even though Flowers bought 20 baking plants with the Hostess acquisition, none was re-opened in the immediate aftermath of the transaction. Without addressing specific plans for the plants, Allen L. Shiver, Flowers president and chief executive officer, suggested reopenings would be considered as production capacity was needed at plants that fit into the company's ongoing longterm geographic expansion goals. "Our plans are to continue expanding to parts of the country where we do not currently have distribution," Mr. Shiver said in March. "As we do so, we expect to introduce Hostess bread brands to those new areas." He noted that Flowers for many years has pursued a growth strategy of "methodical" expansion into new regions from existing Flowers bakeries. "As we enter new regions we will build access to retail and food service customers in those new markets," he said. "We'll set up appropriate distribution systems. We'll re-open bakeries as consumer demand for our products grow. As we continue to expand, this strategy will continue. We intend to expand in the new regions from our current territories, growing sales and then add or re-open production capacities for that growth." The closing of so many Hostess baking plants raised capacity utilization, and Mr. Shiver in August highlighted other steps the company had taken to meet demand. "Since November 2012, we have reopened some idle capacity in Brattleboro (Vt.) and other bakeries to help address the need," he said in connection with second-quarter financial results. "We also commissioned a new bread line in the quarter at our Oxford, Pa., bakery that was part of our Tasty acquisition. In October 2013, Flowers announced LEADING FRESH HAMBURGER AND HOT DOG buns vendors 1 2 3 4 5 6 7 8 9 Dollar sales Bimbo Bakeries USA $467,671,000 Flowers Foods Bakeries L.L.C. $191,240,000 Aunt Millie's Bakeries $48,991,690 Pepperidge Farm, Inc. $44,575,520 Lewis Bakeries, Inc. $31,251,510 Pan-O-Gold Baking Co. $26,734,640 United States Bakery $21,255,860 Hostess Brands L.L.C. $18,491,110 King's Hawaiian Holding Co. $16,448,960 Private label $858,781,200 Total $1,879,643,000 plans to open the first of the 20 Hostess plants it acquired, selecting to resume operations at a bakery in Henderson, Nev. The Henderson plant was the newest of the Hostess plants, having opened in 2004. Also a buyer of Hostess bread assets was United States Bakery, which acquired the brands Sweetheart, Eddy's, Standish Farms and Grandma Emilie's as well as 4 bakeries, 14 depots and certain equipment. The agreed upon price for the acquisition was about $29 million. The four bakeries are in Anchorage, Alaska, Billings, Mont., Salt Lake City and Seattle. The I.R.I. data indicated an impact from LEADING FRESH HAMBURGER AND HOT DOG % change from year ago -0.7% 31.5% 19.3% 31.3% 22.1% 12.4% 29.3% -83.6% 122.2% 4.7% 1.4% buns brands 1 2 3 4 5 6 7 8 9 Ball Park Sunbeam Sara Lee Soft & Smooth Nature's Own Pepperidge Farm Aunt Millie's Colonial Arnold Select Heiner's Private label Total Dollar sales $99,846,690 $53,084,550 $52,918,750 $49,961,080 $44,575,520 $43,402,160 $30,602,860 $29,222,930 $27,412,880 $858,781,200 $1,879,643,000 % change from year ago 19.9% 21.7% -26.2% 66.5% 31.3% 16.7% 24.2% -7.6% 7.8% 4.7% 1.4% Data for 52 weeks ended Sept. 8, 2013 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 12 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013