Milling & Baking News - March 5, 2013 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS MARCH 5, 2013 / Flowers prevails in bid for Hostess bread brands; Beefsteak to Bimbo FEATURE Oleic escalation R.&D. leads to healthier, functional oils from sunflowers, canola and soybeans Story on Page 21 THOMASVILLE, GA. — Flowers Foods, Inc. on Feb. 28 announced its stalking horse bid for the largest bread brands and related assets of Hostess Brands, Inc. was declared the highest and best bid, eliminating the need for an auction. Flowers stalking horse bid for the Beefsteak rye brand was topped by Grupo Bimbo S.A.B. de C.V. Included in the victorious bid were Hostess brands including Wonder, Nature’s Pride, Merita, Home Pride, and Butternut bread; 20 baking plants; and 38 depots. Flowers bid $360 million for the assets. The auction had been scheduled for the morning of Feb. 28. “This transaction now moves to the next phase, which is a review and approval of Flowers’ bid by the bankruptcy court overseeing Hostess’ bankruptcy case at a hearing scheduled for March 19,” Flowers said. In the case of its Beefsteak bid, Flowers said it chose not to increase its bid from $30 million after another buyer bid more. Hostess said Bimbo, which has not issued an official confirmation, bid $31.9 million for Beefsteak. “We are pleased Flowers won the Continued on Page 9 LATE NEWS ConAgra expanding Ultragrain capacity OMAHA — ConAgra Mills is expanding its Ultragrain milling capacity to meet increasing demand for the whole wheat flour product. Ultragrain is currently only milled in Commerce City, Colo., Alton, Ill., and San Juan, Puerto Rico, but ConAgra said it will realign its Alton mill “to significantly boost Ultragrain production” and reconfigure its Decatur, Ala., mill to add Ultragrain production. The milling expansions will be completed by July 2013. “This latest reconfiguration of our milling assets will give us four major Ultragrainproducing locations in our network of 23 mills, distributing production Continued on Page 8 Successors named at top spots of nation’s largest baking companies Penny to succeed Prince at B.B.U. Shiver to succeed Deese at Flowers HORSHAM, PA. — Fred Penny, executive vice-president of Bimbo Bakeries USA, will become president of the company effective June 1. Daniel Servitje, president and chief executive officer of Grupo Bimbo S.A.B. de C.V., announced Mr. Penny’s pending promotion on Feb. 22. The announcement came at the end of prepared comments by Mr. Servitje during a conference call THOMASVILLE, GA. — Allen L. Shiver, president of Flowers Foods, Inc., has been elected president and chief executive officer by the company’s board, effective May 22. Announcing Mr. Shiver’s promotion, the company said George E. Deese, currently chairman and c.e.o., has been elected executive chairman, effective the same date. Flowers said the announcement is “consistent with the company’s management succession plan.” “This is a time of exciting opportunities for Flowers Foods, and the board and I are confident in Allen’s continued leadership as our team integrates recent acquisitions and focuses on growing sales and earnings,” Mr. Deese said. “My role as executive chairman is to ensure Continued on Page 11 Continued on Page 11

Table of Contents for the Digital Edition of Milling & Baking News - March 5, 2013

Milling & Baking News - March 5, 2013
Flowers prevails in bid for Hostess bread brands; Beefsteak to Bimbo
Late News - ConAgra expanding Ultragrain capacity
Successors named at top spots of nation’s largest baking companies
Table of Contents
News/Comment - Dual baking succession announcements of great importance
Editorial - Asia expands participation in U.S. business
Late News
Financial Results
Washington - U.S.D.A. sees tighter wheat supply but lower prices in 2013-14
Food Ingredient Solutions - Oleic escalation
Purchasing Seminar 2013
I.A.O.M. Preview
Milling Technology - W.Q.C. speakers tackle plant gene innovations
Weather Outlook - Winter storms lead to wetter biased weather patter
Ingredient Market Trends - Powerful winter storms may help improve wheat condition
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - March 5, 2013