Milling & Baking News - February 18, 2014 - (Page 1)

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

Table of Contents for the Digital Edition of Milling & Baking News - February 18, 2014

Milling & Baking News - February 18, 2014
Bimbo moving ‘north of the border’ again with Canada Bread acquisition
Partners selling four flour mills to help gain approval for Ardent
Late News - Oreo revenues nearing $2.5 billion annually
Table of Contents
News/Comment - Positive output trends in flour ideal background
Editorial - Extraordinary time for this industry
Late News
Business - Partners selling four flour mills to help gain approval for Ardent
Bunge expands in milling with corn masa mill acquisition
Hostess Brands progresses in plans for Emporia plant expansion
Big Lots named official thrift store outlet for Hostess Brands
‘Stalking horse’ bidder emerges for Missouri baking company
Kellogg closing Charlotte cookie plant in efficiency initiative
Boulder completes headquarters relocation from New Jersey
B.B.U. to close Sioux City bread baking plant by end of March
Flowers adds to Mrs. Freshley’s line
Financial results - Profits off, Snyder’s-Lance ramping up marketing and innovation
Special charges cut into ADM earnings for 2013
Flowers adjusted earnings up 35% in year; sees 8% to 15% gain in ‘14
Tonja Taylor elevated at Flowers
Hostess contribution to Flowers sales total only modest but Shiver hopeful
Don Thriffiley retiring March 29
Pringles results a bright spot in otherwise tough year for Kellogg
Ingredion income falls 7% in 2013; Gordon sees late year positives
ConAgra Foods shares slide on lowered earnings outlook
People - Paul Bartlett dies; led grain, milling and cattle business
John Markulis, owner of Puritan Bakery in S. California, dies
Harry Myers dies; Corbion Carvan sales/service representative
CSM Bakery hires senior v.p. of sales
Data - U.S.D.A. lowers wheat carryover to 558 million bus in 2014
Flour production in 2013 to all-time record of 424,550,000 cwts
News Feature - Grain-based foods grab menu spotlight in artisan promotions
News Feature - Focus turns to azodicarbonamide, a dough conditioner
News Feature - Deadlines approach for school meal guidelines
Regulatory Affairs - Two approaches to refrigeration and freezing for bakers
Weather Outlook - Late season dryness in Brazil trimming production
Industry Activities - John Bode takes on leadership role with Corn Refiners Association
Grain and oilseed forum set for April
TEGMA in Scottsdale for 2014 annual meeting
Coalition seeks federal action on G.M.O. labeling
International - Series of changes announced for Bühler Group board
Grain Processing business dips at Bühler in 2013
Ingredient Market Trends - U.S.D.A. trims corn carryover forecast, soybeans unchanged
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - February 18, 2014