Milling & Baking News Corporate Profiles - November 2013 - (Page 16)

Grain-based Foods market structure that we're going to have." Daniel Servitje, chairman and chief executive officer of Grupo Bimbo S.A.B. de C.V., said during the conference call that B.B.U. objectives in 2013 would be reached with steps that include accelerating momentum in new products, continuing to aggressively grow brands in order to expand market share gains, and accelerating regional assets restructuring projects and supply chain optimization in order to drive greater efficiency. In August, B.B.U. said it will close its baking plant in Easton, Pa., by the end of 2013. The plant, which employs 200, makes hamburger and hot dog buns. The announcement comes a little more than seven months after Bimbo purchased 30 acres of land in Macungie Township, Pa., to build a new $75 million bakery that will bring more than 100 jobs to the area and produce bread and buns for the Northeast. The Macungie bakery is expected to begin operation in early 2014. Cereal makers address challenges In the 52 weeks ended Sept. 8, dollar sales for the ready-to-eat cereal sector totaled $9,419,966,000, down 2% from the same period a year ago, according to I.R.I. Unit sales in the category also fell 2% to 2,953,303,000. The category's largest player, Kellogg Co., Battle Creek, Mich., experienced "disappointing" growth during the first half of fiscal 2013. John Bryant, president and chief executive officer of Kellogg Co., in early May said "the real issue" for Kellogg has been its innovation. He said innovation in the category needs to be more nutrition- and benefit-oriented and less about pricing and merchandising. To that end, the company was planning to launch products that promise health benefits, including Kashi Heart to Heart Chia, Raisin Bran Omega-3 and Special K Multigrain. With a view toward greater opportunities in the cereal category, Kellogg also this year stepped outside its comfort zone of readyto-eat cereals with the launch of products that will exist outside the traditional category. Two products include Kellogg To Go and Nutri-Grain Biscuits. Kellogg To Go is a breakfast beverage that has 10 grams of protein and 5 grams of fiber. Nutri-Grain Biscuits provide consumers with a cereal alternative without the need for milk. Meanwhile, General Mills, Inc., Minneapolis, introduced new cereals and LEADING READY-TO-EAT cereal vendors 1 2 3 4 5 6 7 8 9 Kellogg Co. General Mills, Inc. Post Holdings, Inc. MOM Brands Quaker Oats Co. Kashi Co. Small Planet Foods, Inc. Nature's Path Foods, Inc. Bear Naked, Inc. Private label Total Dollar sales $2,882,656,000 $2,850,293,000 $977,281,200 $671,004,800 $594,740,200 $247,420,000 $84,201,130 $65,263,810 $60,302,800 $821,256,600 $9,419,966,000 took new approaches to promote traditional brands in an attempt to ignite Big G cereals sales. General Mills launched a Fiber One 80 Calorie chocolate cereal that offers 35% of the adult daily value of fiber per serving, as well as Peanut Butter Toast Crunch and Honey Nut Cheerios Medley Crunch. The company hopes the introductions will reverse a 3% dollar sales decline that occurred in the 52 weeks ended Sept. 8. Despite some of the challenges facing the nation's largest R.-T.-E. cereal LEADING READY-TO-EAT % change from year ago -1.2% -2.8% -2.8% 0.2% 3.1% -13.0% 5.2% 19.2% 12.7% -6.6% -2.0% cereal brands 1 2 3 4 5 6 7 8 9 Honey Nut Cheerios Frosted Flakes Honey Bunches of Oats Cheerios Special K Cinnamon Toast Crunch Frosted Mini-Wheats Lucky Charms Froot Loops Private label Total Dollar sales $569,610,800 $461,249,900 $373,057,500 $362,324,300 $304,811,600 $302,115,400 $277,007,300 $272,875,700 $188,521,000 $821,256,600 $9,419,966,000 % change from year ago 2.3% 8.0% -9.4% -5.9% 34.0% -2.9% -5.1% 7.7% 9.4% -6.6% -2.0% 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. 16 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

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Milling & Baking News Corporate Profiles - November 2013