Milling & Baking News - August 6, 2013 - 11


agile distribution network and our profitable grocery categorelentless focus on delivering consis- ries for retailers,” Ms. Britt
tently outstanding customer service,” explained. “In the months
after Hostess departed, reMs. Britt said.
Hostess’ withdrawal from the mar- tailers netted an additional
ket left about seven points of market 11c of profit per square
share “up for grabs,” Ms. Britt
said, and Pepperidge seized
the opportunity.
‘Hostess’ range of breads
“As a non-national prewas largely valuemium player, our fair share
oriented. When these
should have been less than
0.5 percentage point, but we
brands came out of the
managed to achieve more
market, many consumers
than double that amount
did not trade like-foralong with significant shelf
space gains,” she said. “This
like.’
achievement was a com— Irene Chang Britt, Pepperidge Farm
bined effort of our sales
team and our network of
flexible, dedicated, independent foot. This equates to an andistributors, who make more than 5 nual incremental benefit of $1,500 for
an average-sized grocery store. As the
million store visits per year.”
Ms. Britt also provided perspective category continues to evolve, we beon Hostess’ absence on the broader lieve we are well-positioned to capitalize on these trends. We will continue
bread category.
“Hostess’ range of breads was large- to maximize the space gains we have
ly value-oriented,” she said. “When made in the store, the relationships
these brands came out of the market, we have built with retailers and the
many consumers did not trade like- appeal of our cut-above portfolio of
for-like. Instead, they chose to buy quality bread.”
One way in which Pepperidge plans
more premium varieties or private label offering. This drove up overall cat- to maximize its position is by stepping
egory value despite overall category up investment in its highly differentiated Swirl bread range, she said.
volume declining slightly still.”
“During the past year, Swirl has
The shift also benefited retailers, she
performed very strongly,” she said.
noted.
“Fresh bakery is one of the most “Volume is up 11% and household

Last of Hostess assets to be
auctioned in mid-August
WHITE PLAINS, N.Y. — Judge Robert D. Drain of the U.S. Bankruptcy
Court Southern District of New
York on July 19 authorized Hostess
Brands, Inc. (Old HB, Inc.) to hold
an auction on Aug. 16 to sell its remaining assets, including certain
real estate, machinery, equipment
and fleet assets located in 34 states
that were not sold after the company ceased operations in November
2012.
Mr. Drain also approved Los Angeles-based Hackman Capital Acquisition Company, L.L.C. to serve
as stalking-horse bidder at the auction. Hackman Capital was one of
approximately 400 parties that submitted bids for the assets between
May and June. Although the highest and best bids from parties other
than Hackman, when combined,
bakingbusiness.com / world-grain.com

totaled approximately $60.2 million
in aggregate consideration, Hackman’s bid of $58.3 million in cash
with no due diligence was considered the best bid, according to court
documents.
“Given the significant environmental concerns raised by potential
purchasers, the debtors believe that
the buyer ’s willingness to commit to
purchase the remaining assets now
on an as-is basis provides valuable
certainty to the debtors’ estates,”
Hostess Brands, Inc. said in a July
3 filing.
As the stalking horse bidder,
Hackman Capital will get a $1.75
million breakup fee if it is outbid at
the auction.
The deadline for competing, qualified bids is Aug. 8, with a potential
sale hearing set for Aug. 21. MBN

Business

penetration has increased three points.
Importantly, these gains have expanded our reach in younger families with
children.
“Traditionally, Swirl has appealed
to older consumers so we are innovating to broaden its appeal and attract
younger consumers to the range. This
year, we launched the first non-cinnamon-flavored Swirl breads: strawberry banana and blueberry. These were
limited-edition seasonal offerings.
They proved to be family favorites
and performed strongly. This year,
we will continue with the program
of limited-edition seasonal varieties,
which will bring new and fresh taste
to the breakfast spread category.” MBN

European Commission
clears ADM acquisition
of GrainCorp
DECATUR, ILL. — The European
Commission has approved Archer
Daniels Midland Co.’s proposed acquisition of GrainCorp Ltd., bringing the number of government
agencies that have cleared the acquisition to six.
In addition to the E.C., the acquisition has been cleared by the Japan Fair Trade Commission, South
Africa’s Competition Commission,
Canada’s Competition Bureau, the
Australian Competition and Consumer Commission and the U.S.
Federal Trade Commission.
ADM continues to work with
regulators in Australia, China and
South Korea. The company first announced its intent to acquire GrainCorp in late April for $3.5 billion. MBN
Milling & Baking News August 6, 2013 / 11

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Milling & Baking News - August 6, 2013

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