Milling & Baking News - February 18, 2014 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
FEBRUARY 18, 2014

bakingbusiness.com / foodbusinessnews.net

NEWS FEATURE

Bimbo moving 'north of the border'
again with Canada Bread acquisition

Grain-based foods
grab menu spotlight
in artisan promotions
Story on Page 33

LATE NEWS

Oreo revenues nearing
$2.5 billion annually
DEERFIELD, ILL. - Strong results
for its Oreo brand were a highlight for
Mondelez International in 2013, where
overall results were hindered by continuing weak gum performance, soft
snack categories and depressed coffee pricing. Net income in 2013 was
$3,915 million, or $2.19 a share on the
common stock, up 28% from $3,067
million, or $1.71 a share, in 2012. Adjusted for special items, earnings rose
14%. Net sales in 2013 were $35,299
million, up 0.8%. Mondelez said its
"power brands" grew 6.5% in revenues in 2013. Biscuit brands Oreo,
Tuc, Club Social, belVita and Barni
posted double-digit increases as did
Continued on Page 8

MEXICO CITY - Grupo Bimbo, S.A.B.
de C.V. has agreed to acquire all of the
common shares of Canada Bread Company, Ltd. for C$72 ($65) per share, or
approximately C$1,830 million ($1,663
million). Canada Bread is one of the
leading manufacturers and marketers of
bakery products, including sliced bread,
buns, bagels, English muffins and tortillas in Canada, frozen bread in North
America, and specialty bakery goods in
the United Kingdom.
With the acquisition, Grupo Bimbo
would gain a major foothold in the Canadian market through Canada Bread's
portfolio of brands that includes Dempster's, Pom, Villaggio, Ben's, Bon Matin
and McGavin's. Canada Bread employs
approximately 5,400 associates and operates 25 bakeries in Canada, the United
States and the United Kingdom, as well
as Canada's largest direct-store delivery
network for fresh bakery that reaches
more than 41,000 points of sale.
The acquired business generates annual sales of C$1,439 million ($1,308

million) and EBITDA of C$185 million
($168 million).
"Canada Bread brings a remarkable
portfolio of market leading brands that
complement our global business, as well
as a track record of highly profitable performance," said Daniel Servitje, chairman and chief executive officer of Grupo Bimbo. "This demonstrates strong
operational know-how and a commitment of quality to their customers and
Continued on Page 12

Partners selling four flour mills
to help gain approval for Ardent
OMAHA, NEB. - Announcing a second
delay in the formation of Ardent Mills,
ConAgra Foods, Inc. said the partners in
the milling joint venture were prepared
to divest 4 of the 44 mills that were to be
included in Ardent.
ConAgra offered an updated timetable and discussed the divestitures
in a Form 8-K filing Feb. 10 with the

Securities and Exchange Commission.
ConAgra said it now expects the transaction to be completed in the second
quarter of calendar 2014.
Ardent, which would combine the
flour milling operations of ConAgra
Mills and Horizon Milling (itself a joint
venture of Cargill and CHS), was first
announced nearly a year ago, in March
2013. The merger would be the largest
in the history of the U.S. flour milling
industry.
ConAgra cited an ongoing regulatory
review process as one factor among "various reasons" for the revised timeline.
"The company, Cargill and CHS are
prepared to divest four flour milling
Continued on Page 10

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Milling & Baking News - February 18, 2014

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