Milling & Baking News - January 7, 2014 - 10

Business 

Global demand strengthens
for ancient grains
DUIVEN, THE NETHERLANDS -
Global new product launches featuring quinoa grew nearly 50% in the year
ended Sept. 30, 2013, and have risen
more than five-fold over a five-year
period, according to Innova Market
Insights. The increases reflect an overall interest by consumers in ancient
grains and their nutritional properties,
as well as the unique flavors that they
can add to a wide range of food and
drinks products.
Innova said demand from U.S. consumers largely has been responsible
for the growth in quinoa new product
launches, although new items now are
becoming increasingly common in Europe.
Quinoa is a small, light-colored
round grain with a distinctive nutty
earthy flavor. It is indigenous to
South America, where the Incas
as
regarded it as the "mother of all
ll
grains." The grain is used in a
variety of grain-based foods categories, including breakfast cereals, snack bars and biscuits, as
well as several other segments,
including confectionery, beverages, ready meals and baby
foods.
Innova said the use of quinoa in baby foods has been
particularly evident in recent
ent
months, with U.S. launches such as
Plum Organics Mighty 4 Essential
Nutrient Blends in the United States,

Biobim Mixed Vegetables with Quinoa organic jarred baby meals in the
United Kingdom and Babybio cereals featuring quinoa in France. There
is also a focus on gluten-free formulations, with 38% of launches featuring quinoa using a gluten-free positioning in the year ended Sept. 30.
In addition to quinoa, chia also is
gaining favor as an ancient grain.
Chia is a Latin American annual herb
high in protein, dietary fiber and antioxidants, with a high concentration of
omega-3 fatty acids in its oil. Launches

Global new product launches featuring
quinoa have risen more than five-fold over
a five-year period.

ADM raises quarterly dividend,
offers update on outlook
DECATUR, ILL. - The board of directors of Archer Daniels Midland Co.
on Dec. 16 raised its regular quarterly
dividend 26%, to 24c per share from
19c per share. The new dividend will
be payable March 13, 2014, to stockholders of record at the close of business on Feb. 20, 2014.
"Our continued strong cash flow
generation and our confidence in the
future earnings power of our company allow us to significantly increase
our quarterly dividend," said Patricia
Woertz, chairman and chief executive
officer of ADM. "Historically, we have
paid out approximately 20% to 25% of
earnings; going forward we will aim
for a range of 25% to 30%, thereby
allowing shareholders to participate
10 / January 7, 2014 Milling & Baking News

more directly in the earnings stream of
the company."
ADM's share price opened at $40.44
on Dec. 16 and climbed as high as
$41.66 on Dec. 17, the day after the announcement.
The company also announced that it
intends to buy back from its shareholders 18 million shares of its stock by the
end of 2014 to fully mitigate the dilutive impact of equity units converted
in 2011 and compensation and benefit
plan issuances in 2013 and 2014. At
current prices, this would represent
about $725 million. The company said
it will consider further distributions to
shareholders later in 2014 in the context of its capital allocation strategy.
Ms. Woertz also provided some

of products containing chia rose from
probably single figures five years ago
to in the hundreds now, with an increase of nearly 50% in the year ended
Sept. 30, Innova said.
Demand for chia has been propelled
by activity in the United States, where
nearly half of the total introductions
were recorded, Innova said. Launches
ranged across a number of sectors, including soft drinks with Ahhmigo's
Chia & Water with chia fiber, omega-3 fatty acids and protein to keep
consumers "hydrated and satiated";
snacks with Lesser Evil's Chia Crisps;
and cereals with Nature's Path Organic's Qi'a "superfood" breakfast cereal
made with a blend of chia, hemp and
buckwheat.
"Ancient grains were once very
popular basic food cerep p
but
als, bu faded away and
became
becam largely obsolete
in many countries, with
m
the rise of modern cereal
ri
crops, such as wheat and
crops
corn," said Lu Ann Wilcorn
liams, director of innoliam
vation at Innova Market
vati
Insights. "Interest in
Ins
these alternative grain
the
products perceived as
pr
traditional,
natural
tr
and nutritious has
a
become increasingly
b
apparent, and their
a
use is extending out
u
of the specialist health foods
spe
sector and into the mainstream, as
well as out of cereal products and into
the wider processed foods market." MBN
detail on the company's 2014 business plans. She noted that from the
cash flows to be generated in 2014,
it expects to invest about $1.4 billion
in capital projects, with the majority of the growth capital invested
outside the United States, and will
return about $1.4 billion to shareholders in the form of the higher
dividends and the repurchase of 18
million shares.
"We will continue to take a balanced approach to capital allocation,"
Ms. Woertz said. "Our strong balance
sheet and solid cash flow generation
will allow for capital investments in
growth projects with strong returns
and return of capital to our shareholders and still leave us sufficient ability
to take advantage of strategic opportunities that may arise in 2014. We are
confident and enthusiastic about the
opportunities ahead." MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - January 7, 2014

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