Milling & Baking News - November 15, 2011 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 15, 2011 / FOOD INGREDIENT SOLUTIONS® Production estimates for wheat, corn and soybeans reduced by new report WASHINGTON — U.S. 2011 corn production was forecast at 12,310 million bus, down 123 million bus, or 1%, from 12,433 million bus forecast in October and down 1% from 12,447 million bus in 2010, the U.S. Department of Agriculture said in its Nov. 9 Crop Production report. Soybean production was forecast at 3,046 million bus, down 14 million bus from 3,060 million bus in October and down 9% from 3,329 million bus last year. U.S. 2011 all wheat production was trimmed 9 million bus to 1,999 million bus, as a result of a re-survey in some spring wheat states due to delayed harvest. The U.S.D.A. corn and soybean crop numbers were below the average of prereport trade estimates of 12,402 million bus for corn and 3,059 million bus for Flour, records and food safety The Food Safety Modernization Act will affect flour, imported ingredients and documentation Story on Page 22 LATE NEWS Flowers earnings finish flat in quarter THOMASVILLE, GA. — One-time costs related to the acquisition of Philadelphia-based Tasty Baking Co. had a negative impact on earnings at Flowers Foods, Inc. in the third quarter, as income for the period finished narrowly lower. For the quarter ended Oct. 8, Flowers had income of $31,019,000, equal to 23c per share on the common stock, down from $31,166,000, also equal to 23c per share, in the third quarter of fiscal 2010. Sales for the quarter were $675,369,000, up 13% from $597,894,000 during the same quarter of the previous year. “Flowers Foods achieved strong sales growth in the Continued on Page 8 soybeans. There was no pre-report trade estimate for wheat. Based on Nov. 1 conditions, corn yield was forecast at 146.7 bus an acre, down 1.4 bus from 148.1 bus an acre in October and down 6.1 bus from 152.8 Continued on Page 14 Bimbo closes Sara Lee North American baking acquisition MEXICO CITY — Grupo Bimbo S.A.B. de C.V. on Nov. 7 announced it has completed its acquisition of the North American Fresh Bakery business of Sara Lee Corp. The closing followed rapidly on the heels of an announcement Bimbo, Sara Lee and the Department of Justice had reached a settlement allowing the deal to move forward (see Milling & Baking News of Nov. 1, Page 1). First announced in November 2010, the transaction was delayed by protracted negotiations with the Justice Department that concluded with an agreement Bimbo would sell brands and related assets in eight markets, half of which are in California. The divestitures reduced the purchase price for the Sara Lee baking business to $709 million from the $959 million originally agreed upon. Sara Lee noted the transaction includes the assumption of debt as well as “all employee-related commitments, including pension obligations.” In announcing the completion of the sale of the North American business Sara Lee said it expects to close the sale of its baking business in Spain and Portugal, also to Grupo Bimbo, by the end of 2011. Grupo Bimbo said the integration of the North American Sara Lee business Continued on Page 10

Table of Contents for the Digital Edition of Milling & Baking News - November 15, 2011

Milling & Baking News - November 15, 2011
Production estimates for wheat, corn and soybeans reduced by new report
Bimbo closes Sara Lee North American baking acquisition
Late news - Flowers earnings finish flat in quarter
News/Comment - Funding as path to farm supports in major shift
Editorial - Counter to worrying about ingredient costs
Late news - Snyder’s-Lance to close salty snacks plant
Late news - Association between fiber, reduced cancer risk
Late news - Cosi loss widens in third quarter
Late news - Lewis Bakeries launches flat bun
Business - Explosion investigation ongoing at Bartlett grain elevator in Atchison, Kas.
Business - Ralcorp delays financials release, anticipating Post cereal writeoff
Business - French investor considers buying EuroDough from Sara Lee for $159 million
Business - Rosenfeld: Kraft global snacks business has ‘only begun to tap its potential'
Business - Dunkin’ Donuts exec credits new sandwich in comp sales growth
Business - AB Mauri raising yeast and mold inhibitor prices
Business - Quakes strike near Shawnee, but flour mills escape damage
Business - Syngenta Viptera corn trait receives approval in Argentina
Business - CHS opens office in South Korea
Data - U.S. 2012 wheat carryover down 1% from October
Data - Global wheat area for 2012-13 crop expected to show small increase
International - C.W.B. takes to airwaves to defend the single desk
Food Ingredient Solutions - Flour, records and food safety
Milling Technology - Millers gather in Jordan for I.A.O.M. district meeting
Milling Technology - Richard Prior recognized
Milling Technology - Bunge-SCF Grain j.v. to lease Illinois grain elevator
Milling Technology - The Andersons upgrades five grain facilities
Milling Technology - Gavilon completes acquisition of Millard Grain
Milling Technology - DuPont suing Monsanto over patent infringement
Milling Technology - AGCO to acquire GSI Holdings
Washington - The ‘supercommittee’: Shortcut to farm policy changes?
Financial Results - Supply chain initiative costs weigh on Kellogg profit
Financial Results - In tough quarter in U.S., Servitje cheered by margin resiliency
Financial Results - CSM bakery supply business sustains sharp loss in third quarter
Financial Results - J&J Snack earnings climb 14% in fiscal ’11
People - CSM names president, c.e.o. for BakeMark USA
People - Peter Wilson to president, c.e.o. of Balance Bar
People - Mal Warrick joins MGPI in supply chain role
Merchandising - Bimbo Bakeries USA unveils sandwich recipe winners
Merchandising - Subway ‘Sandwich Artist’ named Miss Wales 2011
Ingredient Market Trends
Ingredient Week
Supplier Innovations - Kiwifruit ingredient extends shelf life
Supplier Innovations - ADM to contract for high-oleic canola
Supplier Innovations - Penford launches potato-based resistant starch
Supplier Innovations - Puratos to build facility in New Jersey
Marketplace Business Network
Ad Index

Milling & Baking News - November 15, 2011