Milling & Baking News - November 30, 2010 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 30, 2010 / BARS UPDATE Grain Market Roundtable Buyers brace for volatile markets and perhaps higher prices Back in business Bar companies bouncing back behind new products Story on Page 30 LATE NEWS Kris Lutt named head of ADM Milling OVERLAND PARK, KAS. - Kris Lutt has been named president of ADM Milling Co., effective Dec. 1. Mr. Lutt succeeds Mark Kolkhorst, who has been promoted to vicepresident of Milling and Cocoa at Archer Daniels Midland Co. Mr. Lutt joined Decatur, Ill.-based ADM in 2002 with the acquisition of Minnesota Corn Processors. In the years since, Mr. Lutt has served as general manager of specialty feed ingredients in the ADM Corn business as well as vice-president of corn processing. He was named adviser to the office of the chairman in 2009. Mr. Lutt holds a bachelor's degree in biochemistry Continued on Page 8 KANSAS CITY - Expect no relief from market volatility and brace for the possibility of higher ingredient prices in the next several months and perhaps all of 2011, according to market analysts and food industry executives interviewed by Milling & Baking News. The recent wide declines in agricultural futures markets should be viewed as an opportunity to extend coverage through the first quarter of 2011 or even beyond in principal ingredient markets such as flour, corn products and soybean oil, they said. Paul Meyers, vice-president, commodity analysis, Connell & Co., Berkeley Heights, N.J., provided an overview of three likely market movers in the next few months. "First, U.S. and world corn demand/supply fundamentals are much more bullish than they've been in 15 years," Mr. Meyers said. "The U.S. Department of Agriculture has forecast the lowest corn stocks-to-use ratio in 15 years, the second lowest in at least 60 years. So, we have an Continued on Page 19 Sara Lee deal seen as key step in Bimbo's journey in U.S. baking KANSAS CITY - To Gary J. Prince, businesses are "journeys in time" requiring the willingness as well as the ability to adapt to sometimes dramatic change and daunting challenges. In his position as president of Bimbo Bakeries USA, Mr. Prince regards the acquisition of the North American Fresh Bakery business of Sara Lee Corp. as a crucially important step toward achieving success in today's difficult environment. Mr. Prince spoke with Milling & Baking News days after Grupo Bimbo S.A.B. de C.V. announced on Nov. 9 an agreement to buy the Sara Lee baking business for $959 million. While subject to regulatory review, Bimbo and Sara Lee said they expect the transaction to be closed in the first half of 2011. The acquisition, which would make B.B.U. the nation's largest baking company, would be culmination of a journey for Bimbo that has been remarkably fast by the standards of the U.S. baking industry. As recently as 1997, Grupo Bimbo had no presence in the U.S. baking market other than its ownership of La Hacienda, a California-based tortilla company acquired in 1994 and its distribution of Bimbo and Marinela branded products in niche markets. Bimbo Bakeries USA was established in 1997 with Continued on Page 11

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Milling & Baking News - November 30, 2010