Miling & Baking News - July 26, 2011 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 26, 2011 / FOOD INGREDIENT SOLUTIONS® NEWS FEATURE Whole wheat flour production tops 20 million cwts; growth rate slows KANSAS CITY — Production of whole wheat flour by U.S mills totaled 20,572,900 cwts in 2010-11, up 1,417,700 cwts, or 7%, from a revised 19,155,200 in 2009-10. At 20,572,900 cwts, whole wheat flour accounted for 5% of U.S. flour production in 2010-11, up from 4.6% in 2009-10 and 4% in 2008-09. As recently as 2002-03, whole wheat flour represented only 1.8% of U.S. wheat flour production. The production estimates for the June-May year are based on data gathered from 24 flour milling companies with a combined daily milling capacity of 1,524,000 cwts, equating to 93.2% of U.S. flour milling capacity, as calculated in the 2011 Grain & Milling Annual Keep desserts sweet with less sugar Use high-intensity sweeteners and bulking agents to reduce sugar Story on Page 21 LATE NEWS Grupo Bimbo net slides 16% MEXICO CITY — Net majority income of Grupo Bimbo S.A.B. de C.V. in the second quarter ended June 30 was NP1,054 million ($90,725,000), down 16% from NP1,257 million in the same period a year ago. Sales rose 4% to NP29,999 million ($2,582 million) from NP28,828 million. Operating profit in the United States during the second quarter of fiscal 2011 was NP1,035 million ($89,097,000), down 8% from NP1,121 million a year ago. Sales fell 6% to NP11,492 million ($989,326,000) from NP12,202 million. “This performance reflected the benefit of better pricing, which offset lower overall volumes, although Continued on Page 8 published by Sosland Publishing Co. Growth rates for whole wheat flour production have vacillated in recent years between sluggish and breakneck, with the rate in 2010-11 falling in the middle. The 7% increase in production compared with 14% in Continued on Page 29 Ralcorp Holdings board sets plan to spin-off of Post Foods ST. LOUIS — The board of directors of Ralcorp Holdings, Inc. unanimously has agreed in principle to separate Ralcorp and Post Foods in a tax-free spin-off to Ralcorp shareholders, the St. Louis-based company said July 14. As part of the separation, Post Foods will issue between $1.1 billion to $1.2 billion of debt with the net cash proceeds of about $1 billion going to Ralcorp. Ralcorp’s board of directors intends to use the proceeds to reduce debt, pursue private brand acquisitions and pursue additional share repurchases under the company’s remaining share repurchase authorization of about 5 million shares. Following completion of the transaction, Ralcorp will continue to trade on the New York Stock Exchange. Post Foods also is expected to be listed on the N.Y.S.E. Upon completion of the separation, William P. Stiritz, currently chairman of Ralcorp, will serve as chairman of Post Foods. J. Patrick Mulcahy, currently vice-chairman of the Ralcorp board, will serve as chairman of Ralcorp. “The board has been carefully evaluating tax-free separation alternatives for some time,” Mr. Stiritz Continued on Page 10

Table of Contents for the Digital Edition of Miling & Baking News - July 26, 2011

Miling & Baking News - July 26, 2011
Whole wheat fl our production tops 20 million cwts; growth rate slows
Grupo Bimbo net slides 16%
Ralcorp Holdings board sets plan to spin-off of Post Foods
NEWS Comment - Debt ceiling fi ght leaves grain-based foods worried
Editorial - Complexity of commodity trade merits caution
Late News - PepsiCo Americas Foods unit posts 9% profit
Late News - Study: Consumers shop for fi ber, whole grains
Late News - Snyder’s-Lance lowers full-year e.p.s. range
Late News - Bruegger’s adding artisan Ciabatta bread
Business - Private equity group invests in Wenner Bread; Jeff Montie to c.e.o.
Business - ADM to build Minnesota elevator with 3.2-million-bu capacity
Business - AMF Bakery Systems into merger agreement with BakeTech
Business - Ralcorp Holdings board sets plan to spin-off of Post Foods
Business - AB Mauri raising prices on several ingredients
Business - AMF Bakery Systems into merger agreement with BakeTech
Business - In second report, Kellogg cites progress in diversity efforts
Business - Flowers adding new bagels and rolls
Industry Activities - K-State recognizes Merrill and other grain-based foods leaders
Industry Activities - All Things Baking to feature educational program
Industry Activities - BEMA baking panel grapples with wide range of challenging issues
Financial Results - Callaghan shares Pepperidge recipe for success with investment analysts
Financial Results - CHS earnings, sales soar in third quarter
People - Bunge’s Alberto Weisser to join PepsiCo board of directors
People - Former president of Kraft Europe unit named Premier Foods c.e.o.
People - Caravan names sales manager for Trancendim Solutions
People - Dave Green of ADM Milling elected chairman of Wheat Foods Council
People - Benjamin Bell joining NAWG as director of government affairs
People - Two promoted at Caravan
Food Ingredient Solutions - Keep desserts sweet with less sugar
Cracker Update - Consistent performer
News Feature - Whole wheat fl our production tops 20 million cwts; growth rate slows
Washington - Is biotech blooming in Europe?
Data - U.S.D.A. lowers 2012 wheat carryover to 670 million bus
Data - Late and prevented plantings dim prospects for spring wheat and durum
Data - C.P.I. for baked foods, cereals up 0.6% in June after 1.2% May gain
Data - White bread, whole wheat up in June
Education and Research - Campbell Soup investing $30 million in Pepperidge innovation center
Supplier Innovations - Caravan launches base for single-serve items
Supplier Innovations - Use pellets to create healthier snacks
Supplier Innovations - Cargill sets 2015 sustainable palm oil goal
Supplier Innovations - Inclusion adds crunchy texture, caramel taste
Ingredient Market Trends - Soaring millfeed prices refl ect strong demand, tight supplies, dry weather
Ingredient Week
Marketplace Business Network
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Miling & Baking News - July 26, 2011