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

THE NEWS WEEKLY OF GRAIN-BASED FOODS MARCH 18, 2014 / FOOD INGREDIENT SOLUTIONS® Aryzta A.G. adds Pineridge and Cloverhill to baking portfolio Grown in the U.S.A.! U.S.A.! Honey and a new stevia growing venture may lead to traceability, marketing benefits Story on Page 22 LATE NEWS General Mills shares drop after estimate MINNEAPOLIS - Shares of General Mills, Inc. fell 3% in early trading on the New York Stock Exchange March 14 after the company issued more detailed guidance for earnings in the second half of its fiscal year. While reaffirming its full-year earnings forecast of $2.87 to $2.90 per share, the company said U.S. operating profit in the third quarter ended Feb. 23 was down 10% from the same period a year earlier and total company operating profit was off as well. Earnings per share for the quarter were estimated at 60c to 61c. Reconciling the third-quarter update with the unchanged guidance for the full Continued on Page 10 ZURICH, SWITZERLAND - Aryzta A.G. is set to ramp up its presence in North America with the acquisition of Canada-based Pineridge Bakery and U.S.-based Cloverhill Bakery. Aryzta has agreed to purchase the companies for €730 million ($1,013 million). Aryzta said it plans to invest an additional €70 million in the companies after the transactions are complete to support a strong growth pipeline and integration. The two companies had combined revenues of about €400 million ($555 million) in 2013 with double-digit revenue growth and margins comparable to Aryzta's Food Group margins. Aryzta said the acquisitions will significantly enlarge its manufacturing footprint in North America, extending its customer access in Canada and product portfolio in the United States by providing an attractive entry point into the high growth North American snacking market. "We think we're very fortunate to be in a position to acquire high-quality bakery assets that are such a good, strategic fit to Aryzta," Owen Killian, chief executive officer of Aryzta, said during a March 10 conference call with analysts. "For the rest of this year, we're looking forward to welcoming Cloverhill and Pineridge into our food group during the second half, whenever we get through regulatory clearance. "They're well-managed, well-positioned businesses with blue chip Continued on Page 12 Milner to leading position in flour milling with C.F.P. acquisition CHATTANOOGA, TENN. - Milner Milling Co. announced an agreement under which Milner and its partner milling company Pendleton Flour Mills will acquire Cereal Food Processors, Inc., Mission Woods, Kas. Terms of the transaction, which will bring together some of the nation's most prominent independent flour milling companies, were not disclosed. Milner said a new name for the combined business would be announced at a later time. The acquisition is subject to regulatory approval and expected to close this spring. It would nearly triple the combined size of Milner/PFM. Cereal Food Processors is the fourth largest flour milling company in the United States, with daily milling capacity of 103,400 cwts. The capacities of Milner (34,800 cwts) and Pendleton (24,800) together total 59,600 cwts. Once the transaction is completed, the combined company would have daily milling capacity of 164,000 cwts, with 16 flour mills in the states of Alabama, California, Georgia Continued on Page 11

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

Milling & Baking News - March 18, 2014
Aryzta A.G. adds Pineridge and Cloverhill to baking portfolio
Milner to leading position in flour milling with C.F.P. acquisition
Late News - General Mills shares drop after estimate
Table of Contents
News/Comment - Gratitude toward guiding force as publication hits 92
Editorial - New industry to excel anything past
Late News
Business - Flowers, Hershey partner on new snack cakes
CME Group to launch mini hard red winter wheat contract
Aunt Millie’s in pact to license Wonder brand in Chicago
Gruma details plans for global growth in tortilla business
Canada acts to improve rail grain movement
Pepperidge president confident company will sustain share gains
Starbucks still in ‘early days’ of La Boulange roll-out
Industry Activities - Addition of Kastle, Gambel among leadership changes set at AIB
Tony Turano elevated to chairman of the American Society of Baking
Scratch baking: New product launch may be simpler choice
G.M.O. issue seen casting cloud over use of certain enzymes
International - COFCO merger to help China import more grains
ADM to build soy protein plant in Brazil
Data - Millers forecast 23% decrease in soft red winter wheat production
Food Ingredient Solutions - Grown in the U.S.A.! U.S.A.!
Honey types by U.S. production areas
Bagel Update - Bagel breakdown
New bagel to ‘sprout’ up on Panera menu
A.B.A. takes stand against proposed ban on partial hydrogenation
Few changes in whole wheat options in revisions to WIC program
People - Charles Matthaei, Roman Meal board chairman, dies at age of 93
MGP Ingredients proposes several changes to board of directors
Harry Ambrose dies; was milling business head at Continental Grain
ADM management changes include new leader for grain group
Shawn Moye promoted to v.p. of sales for Americas at Reading
Scott Ward joins Hostess Brands as v.p. for convenience sales
Corbion names five to executive positions in bakery supply area
Ingredient Market Trends - U.S.D.A. makes only minor changes to U.S. and world wheat balance sheets
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - March 18, 2014