Milling & Baking News - November 27, 2012 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 27, 2012 / BAR UPDATE Failed mediation brings end to storied history of Hostess Brands IRVING, TEXAS — A last ditch effort at mediation Nov. 20 ended in failure, dashing faint hopes that Hostess Brands, Inc. would emerge successfully from Chapter 11 bankruptcy. With that comes the conclusion to a nearly decade long period of serious financial struggles at what for generations had been the leading wholesale baking company in the United States. Hostess suspended all operations at its bakeries Nov. 16 when the severely hobbled company was dealt major additional losses because the Bakery, Confectionery, Tobacco and Grain Millers Union went on strike a few days earlier. Also Nov. 16, Hostess filed a plan to wind down and sell its assets. The filing was with the U.S. Bankruptcy Court for the Southern District of New York. The filing says the “desired outcome” of the wind down would be to sell groups of assets that could then be operated as an ongoing concern. Doing so would result in the buyer assuming as many of the related administrative expenses and other claims as possible. Plans already have been put in place Continued on Page 9 Staying strong Innovation, interest in quick, healthy snacks keep bar category growing Story on Page 34 LATE NEWS Kraft files whole grain patent NORTHFIELD, ILL. — Kraft Foods Group, Inc. has filed an international patent on producing stabilized whole grain flour in a way that reduces starch damage and increases production with reduced grinding equipment load. The flour is produced with high throughput using two bran and germ fractions and an endosperm fraction. One bran and germ fraction is a coarse fraction that is subject to two stage grinding, but the second bran and germ fraction is low ash and fine bran, and it does not need to be subjected to grinding. Kraft Foods operates one of the nation’s largest flour mills, a Continued on Page 8 Grain Market Roundtable  Wheat price direction hinges on demand and outlook for 2013 KANSAS CITY — With the Southern Hemisphere harvest under way, the world wheat supply for 2012-13 soon will be known, leaving U.S. millers, bakers and exporters to concentrate even more fully on demand and other factors that have the potential to move prices before spring. Veteran market analysts interviewed by Milling & Baking News suggested U.S. winter wheat conditions, export demand for U.S. wheat, outside market developments and the overall state of the U.S. and world economies will be at the forefront of their considerations in the next several weeks. An early harvest this year allowed the U.S. wheat crop to largely escape what became the most severe American drought in decades. Indeed, the wheat crop generally thrived with its average yield at 46.3 bus per acre, equaling the record achieved in 2010. U.S. wheat production in 2012, at 2,269 million bus, was the largest since 2,449 million bus in 2008. U.S. wheat supplies were viewed as Continued on Page 27 Marking nine decades in partnership with grain-based foods

Table of Contents for the Digital Edition of Milling & Baking News - November 27, 2012

Milling & Baking News - November 27, 2012
Failed mediation brings end to storied history of Hostess Brands
Grain Market Roundtable - Wheat price direction hinges on demand and outlook for 2013
Late News - Kraft files whole grain patent
News/Comment - Entire supply chain faces near chaos in Hostess demise
Editorial - Baking productivity challenges to fore once again
Late News
Business - Anatomy of a Hostess Brands disaster
With higher prices, Flowers Foods sees benefits building into 2013
Nature’s Own bread now available in Northeast
Flowers plans for California move include construction of new plant
Smart Balance: ‘Big fish’ in the growing gluten-free pond
Flowers amends, extends loan facility
Krispy Kreme raises guidance after gains; health care impact ahead
Lallemand/American Yeast to raise yeast, other prices
Industry Activities - To bakers’ disappointment, ethanol mandate waiver request denied
NAMA redesigns web site in stepped up communications initiative
Roger Mortenson elected NAMA honorary member
Data - C.P.I. for baked foods, cereals gains 0.4% in October
White pan bread lower, whole wheat higher in October
International - Weston Foods operating income rises 48%
Soybean crop recovers, demand remains strong
Nearby corn prices to hold firm
Bar Update - Staying strong
Financial Results - Smucker quarterly earnings rise 17%; strong Uncrustables demand
Crumbs Bake Shop reports smaller loss; storm impact anticipated
With same store sales moving higher, Einstein Noah earnings rise in quarter
Tate & Lyle’s adjusted profit rises despite European market
Campbell baking unit earnings decline 3% in quarter
Supplier Innovations
Ingredient Market Trends - Southern Hemisphere wheat harvest under way
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - November 27, 2012