Milling & Baking News - September 17, 2013 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 17, 2013 / Bread Industry Perspective SIGNATURE INTERVIEW Easing headwinds in challenging, rapidly changing bread market E Weisser shares a major management plus in decision to take Bunge public Story on Page 22 LATE NEWS Krispy Kreme approach to wholesale changing WINSTON-SALEM, N.C. — Krispy Kreme Doughnuts, Inc., which has its roots delivering donuts to local grocery stores in the 1930s, slowly is transitioning away from the wholesale business, said James H. Morgan Jr., chairman, president and chief executive officer. The company does not plan to abandon the wholesale part of the business, but it is changing its approach, Mr. Morgan said. In a presentation at the CL King & Associates Inc. Best Ideas Conference held Sept. 11 in New York. Mr. Morgan said wholesale, for all its pluses, “kills the margins.” He said Krispy Kreme is not awarding wholesale rights to any Continued on Page 8 ven as the bread and rolls category has remained under pressure over the past year, conditions have not been as severe as was the case a year earlier. The improving trend emerged in a year of extraordinary change for the commercial baking industry. Scanner data issued recently by Information Resources, Inc., a Chicago-based market research firm, show unit sales of fresh bread and rolls in the 52 weeks ended Aug. 11 totaled 5,841,893,000, down 0.78% from a year earlier. In the case of fresh bread alone, unit sales were 3,820,665,000, down 1.32% from the year before. The data were gathered from supermarkets, drugstores, mass market retailers, military commissaries and certain club and dollar retail chains. While the bread and rolls decline of 0.78% was hardly something to celebrate, the shrinkage was smaller than the 1.7% drop in 2012 or the jarring 4.2% decline in 2011. Additionally, while bread and rolls stood out as among the worst performing categories in 2011, the results in 2013 do not make the category an outlier. Unit sales of milk were down 1.3%, readyto-eat cereal was down 1.77% and Continued on Page 33 2013 corn crop forecast raised 80 million bus from August WASHINGTON — U.S. 2013 corn production was forecast at 13,843,320,000 bus, up 80,295,000 bus, or about 0.6%, from 13,763,025,000 bus forecast in August and up 28% from 10,780,296,000 bus in 2012, the U.S. Department of Agriculture said in its Sept. 12 Crop Production report. Soybean production was forecast at 3,149,166,000 bus, down 106,278,000 bus, or about 3%, from 3,255,444,000 bus forecast last month but up 4% from 3,014,998,000 bus last year. If realized, corn production would be record high and soybean production would be the fourth largest on record, the U.S.D.A. said. Wheat production estimates will be updated in the U.S.D.A.’s Sept. 30 Small Grains Summary. The U.S.D.A. corn number was above the average pre-report trade estimate of 13,646 million bus. The soybean number matched the pre-report average of about 3,149 million bus. New crop corn futures prices dropped about 10c a bu immediately after the report was released at 11:00 a.m. Central Time, while soybean futures were mixed but mostly higher. Based on Sept. 1 conditions, corn yield was forecast at 155.3 bus an acre, up 0.9 bus from 154.4 bus an acre forecast in August and up 31.9 bus from 123.4 bus Continued on Page 45

Table of Contents for the Digital Edition of Milling & Baking News - September 17, 2013

Milling & Baking News - September 17, 2013
Bread Industry Perspective - Easing headwinds in challenging, rapidly changing bread market
2013 corn crop forecast raised 80 million bus from August
Late News - Krispy Kreme approach to-eat cereal was down 1.77% and to wholesale changing
Table of Contents
News/Comment - Data capture amazing year of change in baking
Editorial - Synthetic Hexaploid Wheat may win
Late News
Business - Star-studded panel highlights E.L.D.C. forum at Baking Expo
Bay State buys California supplier of specialty whole grain flour
With 27% growth rate, gluten-free sales in Canada top $450 million in 2012
With softness in consumer foods business, ConAgra lowers guidance
7-Eleven in pact to offer branded Pillsbury baked cinnamon rolls
Nabisco debuts gluten-free rice thins
Arizona-based pasta maker expands facility, adds gluten-free line
Allen Shiver sees bakery deli as future opportunity for Flowers
Bunge to shed stake in Moroccan fertilizer joint venture formed in ’08
B&G Foods moves full steam down snack foods track
California supermarket to add Schwartz Brothers baked goods
Education and Research - Gill calls federal wheat research funding ‘extraordinary
Financial Results - Krispy Kreme executives do not see ingredient cost headwinds looming
Signature Interview - Weisser shares major management plus in decision to take Bunge public
Bunge i.p.o. part of sea change across entire grain industry
Global grain industry must change to address major challenges
International - Disease-resistant wheat varieties debut in Kenya
Washington - F.D.A. sees no short-term adverse health effects of arsenic in rice
A farm bill divided
Data - U.S.D.A. raises 2014 wheat ending stocks forecast to 561 million bus
World wheat ending stocks forecast for 2013-14 raised 2%
Exports and Trade Issues - World flour exports rebound but still below peak of 2011-12
Nutrition and Health - Percentage of food insecure households ‘essentially unchanged’ in 2012
Study: Pectin, inulin most effective fat replacers in cakes
Ingredient Market Trends - Australia forecasts 2013-14 wheat crop at 24.5 million tonnes
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - September 17, 2013