Milling & Baking News - September 04, 2012 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 4, 2012 / FOOD INGREDIENT SOLUTIONS® Rayburn: Hostess faces ‘difficult’ and ‘painful’ path to recovery ENGLEWOOD CLIFFS, N.J. — Acknowledging that a “difficult” and “painful” path to recovery remains, Greg Rayburn, chief executive officer of Hostess Brands, Inc., remains hopeful that the embattled Irving, Texas-based baker will successfully emerge from bankruptcy for the second time in four years. Mr. Rayburn provided insight into the challenges (including an 8% across the board wage/salary cut) facing the company as part of an Aug. 23 interview that aired on CNBC. Reflecting on how Hostess ended up in this position, Mr. Rayburn told CNBC that excessive debt and inadequate reinvestment into a business over a period of many years has been a recipe for serious trouble at many companies, including Hostess. “I think for Hostess, we have a path to emerge, but it’s a difficult one, it’s a painful one,” Mr. Rayburn said. “It’s painful for the employees because it requires wage concessions, pensions concessions, and they’ve been through this ringer once already. So there is a way, but it’s not an easy way.” Hostess recently proposed a deal to its union members that would save $200 million in costs, but would come at the Continued on Page 11 Entrance exam Whole grain products, including hamburger buns, seek students’ approval Story on Page 19 LATE NEWS Science seen lacking for gluten-free craze NEW YORK — “There is no evidence to suggest that following a gluten-free diet has any significant benefits in the general population.” That is the finding of a study published in the September 2012 issue of the Journal of the Academy of Nutrition and Dietetics. The study was written by Glenn A. Gaesser, a professor at Arizona State University, and Siddhartha S. Angadi, a postdoctoral scholar at the University of California, Los Angeles, School of Nursing. For those without celiac disease or gluten sensitivity, gluten-free dieting “may adversely affect gut health,” the authors conclude. Noting that gluten-free Continued on Page 8 Milling Technology  Repeated reinvention brings success to Didion Milling f you ask John A. Didion to explain what distinguishes Didion Milling Inc. in the marketplace for milled corn products, the word “passion” is likely to come up, perhaps repeatedly. As an objective matter, the claim is a difficult one to prove or disprove. Still, to the degree that dramatically changing a company’s business model again and again to I add value because of marketplace changes or new opportunities is an indicator of passion, for which Mr. Didion makes a strong case. During the past 40 years, the family-owned business has evolved from a modest grain brokerage operation into a country elevator business, into a corn mill dedicated to exports Continued on Page 28 Marking nine decades in partnership with grain-based foods

Table of Contents for the Digital Edition of Milling & Baking News - September 04, 2012

Milling & Baking News - September 04, 2012
Rayburn: Hostess faces ‘difficult’ and ‘painful’ path to recovery
Late News - Science seen lacking for gluten-free craze
Milling techncology - Repeated reinvention brings success to Didion Milling
Table of Contents
News/Comment - Food price gains need watching for consumer impact
Editorial - Right course to reliable milling data
World Bank: Drought drives food prices higher
Cybros moving to bigger baking facility
King Arthur to open new bakery in September
National bread recipe competition launched
Business - Bay State Milling to acquire specialty supplier T.J. Harkins
Lantmännen Unibake expands in Florida
Wind Point Partners in pact to acquire snack maker Shearer’s
McKee expanding in Stuarts Draft, Va.
The Andersons to open elevator in Nebraska in time for harvest
Panera board approves new share buyback program
Petition to raise vitamin D in baked foods allow
Lallemand says approval may bring more product claims
Hurricane Isaac ravages Delta but may bring needed drought relief
Bartlett employees named in wrongful-death lawsuits
Export and Trade Issues - U.S.D.A. sets 2012-13 domestic sugar allotments
Global flour trade climbs 14% to new peak; setback likely ahead
Food Ingredient Solutions - Entrance exam
Food Ingredient Solutions - Crackers provide options in whole grain formulations
Cookies Update - Cookies on the mind
Weather Outlook - Dryness remains central U.S. feature while world weather in flux
Book Review - Outsider brings valuable, if inconsistent, insights to baking
Industry Activities - Indian social scientist wins Norman Borlaug award
People - Roberto Gonzalez, founder and chairman of Gruma, dies at 81
Todd Werpy to v.p. of R.&D. at ADM
Supplier Innovations
Ingredient Market Trends - Hurricane brings farmers both woes and hopes
Ingredient Market Trends - Record agricultural forecast for fiscal 2013
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - September 04, 2012