Milling & Baking News - December 11, 2012 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS DECEMBER 11, 2012 / FEATURE look Out Hostess receives final approval from court to wind down WHITE PLAINS, N.Y. — Hostess Brands, Inc. on Nov. 30 received final approval for its wind-down plan from the U.S. Bankruptcy Court in the Southern District of New York. The move paves the way for the Irving, Texas-based baker to sell or shutter 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs. In making its ruling on Nov. 30, the Court said Hostess “established sound business justification for the relief requested” in its motion, including the use and sale of assets. Additionally, the Court said Hostess “appropriately exercised their business judgment by determining to implement the wind-down plan, including the sale of various assets in connection therewith.” Business justifications made by Hostess for the wind down included the fact that a freefall shutdown and liquidation would, among other things, “irreparably damage production equipment, result in the failure to dispose, or improper disposal, of waste materials, materially adversely affect the debtors’ ability to maximize the sale value of their assets, and could Continued on Page 11 Industry leaders provide perspectives on the grain-based foods outlook for 2013 Story on Page 23 LATE NEWS Nisshin to buy milling unit in New Zealand NORTH RYDE, NEW SOUTH WALES, AUSTRALIA — Nisshin Flour Milling Inc., a subsidiary of Tokyo-based Nisshin Seifun Group Inc., has agreed to acquire Goodman Fielder’s Champion flour milling business in New Zealand for NZ$51 million ($42.4 million). The price excludes net cash proceeds of NZ Milling receivables and payables. The transaction is expected to be completed in February 2013, subject to the satisfaction of conditions. “This transaction is another example of the successful execution of our strategy to divest non-core businesses to enable us to focus our capital and marketing expenditure and Continued on Page 8 Weather Outlook  Drought conditions continue, raising risk of winter wheat heaving BY DREW LERNER U.S. drought conditions have begun to worsen again in some areas across the nation, cheating the threat of heaving in winter wheat areas and creating problems elsewhere. Not only has the Great Plains, Midwest, lower Mississippi River Basin and southeastern states trended drier than usual, but temperatures frequently have been warm, as well. The combination has led to quick drying and an acceleration in declining river and stream flows. In the meantime there is growing concern over continued rainy weather in Argentina threatening the success of summer crop planting and winter grain harvesting. Each of these issues will weigh on the minds of traders, producers and shippers during the month of December. Crop loss claims have been reported Continued on Page 36 Marking nine decades in partnership with grain-based foods

Table of Contents for the Digital Edition of Milling & Baking News - December 11, 2012

Milling & Baking News - December 11, 2012
Hostess receives final approval from court to wind down
Weather Outlook - Drought conditions continue, raising risk of winter wheat heaving
Late News - Nisshin to buy milling unit in New Zealand
Table of Contents
Editorial - Implications of measuring actual consumption
Late News
Business - East Balt to be acquired by JPMorgan Chase group
CME Group completes acquisition of K.C. Board of Trade
Midstate Mills to be sold in auction
Hostess Brands clarifies on Rayburn’s compensation
Post implementing ‘meets, beats and best approach’
ADM increases bid price for Australia’s GrainCorp
New building adds to Scoular’s grain handling capacity
Rabobank sees volatile ag prices rising and falling in 2013
Industry Activities - Wheat genome successfully sequenced
Nutrition and Health - Super grains gain marketing momentum globally
People - Raul Cavazos elevated to chief financial officer at Gruma
Diamond Foods hires v.p. of global operations
Former dairy, sugar executive to Bunge board
International - Intersnack Group agrees to acquire KP Snacks
C.P.W. opens breakfast cereal plant in Malaysia
More changes in Premier Foods bread business
Outlook 2013 Introduction - Breathless over transformation unfolding in baking
Outlook 2013 Editorial - Election as poll measuring consumer views
Outlook 2013 Perspectives
Regulatory Affairs - New year’s success — check list
Data - I.G.C. forecasts largest world wheat area since 1998-99
November all-wheat price up 4c from October
Education and Research - Kellogg grants benefit breakfast programs
Ingredient Market Trends - Two reports bring 2012-13 world wheat production into sharper focus
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - December 11, 2012