Milling & Baking News - April 29, 2014 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS APRIL 29, 2014 / AIB INSERT Four ConAgra/Horizon mills to Nisshin; deal key to creation of Ardent AIB International Story after Page 28 LATE NEWS A.B.A. opposes Mexican sugar case WASHINGTON - The American Bakers Association last week submitted comments urging the U.S. International Trade Commission to oppose duties on imports of Mexican sugar sought in a March 28 petition from the American Sugar Coalition (see related story on Page 12). "This is yet another example of 'Big Sugar's' attempts to control the U.S. market and keep prices well above what the free market dictates," said Cory Martin, director of government relations for the A.B.A. "Blaming a drop in sugar prices and the subsequent attempts by the U.S. Department of Agriculture to Continued on Page 10 BLOOMINGTON, MINN. - In an announcement expected to result in the creation of two major flour milling companies, Miller Milling Co., the U.S. subsidiary of Nisshin Flour Milling Inc., has reached an agreement to acquire four U.S. flour mills. Included in the asset purchase agreement are the Los Angeles flour mill of Horizon Milling L.L.C. and the Oakland, Calif.; Saginaw, Texas; and New Prague, Minn., mills of ConAgra Mills. In addition to turning Nisshin into a top U.S. flour milling company with nearly 100,000 cwts of daily milling capacity, the transaction is seen as pivotal in allowing an even larger transaction to move forward - the creation of Ardent Mills through the combination of the remaining milling operations of ConAgra Foods, Inc. and Horizon Milling L.L.C. The four mills with a combined daily flour milling capacity of 58,600 cwts will be acquired at a price of $215 million (about 22 billion Japanese Yen). Nisshin said completion of the transaction, expected in May, is subject to U.S. regulatory approval. ConAgra Foods, Inc. and Cargill announced in February that the four mills (out of 44 operated by the companies) would be offered for sale in an effort to address regulatory concerns in connection with the creation of a joint venture named Ardent Mills, what would be the largest milling company in Continued on Page 17 Turning to tortillas Food service outlets adding tacos, burritos to capture morning breakfast market I t may be difficult to nail down who is supplying who, but one thing is sure: Tortilla demand is on the upswing. Thanks to the quickening pace in which taco chains are getting into the breakfast daypart, tortilla makers are finding an outlet for their products that complements what has been solid growth in the retail marketplace. In late March, Taco Bell unveiled a national breakfast platform that features a number of items with tortillas in a starring role. Items include the A.M. Crunchwrap, featuring scrambled eggs, cheese, a hash brown and creamy jalapeño sauce with the choice of sausage, bacon or steak, wrapped in a flour tortilla and grilled flat, as well as A.M. grilled tacos and breakfast burritos. Another taco chain, Del Taco, is expanding its morning menu with the addition of value tacos. Priced at 75c to $1.75, the tacos are made with grilled eggs, grated cheddar cheese and bacon, sausage or carne asada steak in a flour tortilla. Taco chains are not the only ones Continued on Page 30

Table of Contents for the Digital Edition of Milling & Baking News - April 29, 2014

Milling & Baking News - April 29, 2014
Four ConAgra/Horizon mills to Nisshin; deal key to creation of Ardent
Turning to tortillas
Late News - A.B.A. opposes Mexican sugar case
Table of Contents
News Comment - Great change is under way in grain-based foods
Editorial - Huge government impact on industry
Late News
Business - ADM reshaping portfolio with moves on Toepfer, fertilizer unit
King’s Hawaiian secures $135 million in financing from GE Capital
Commerce Department in inquiry into sugar imports from Mexico
Hillshire Brands to acquire Van’s Natural Foods
Fitch affirms Kellogg credit ratings despite weak performance
Sankaty, Bain affiliate, makes strategic Manischewitz investment
Despite challenges, HFCS business seen as healthy
Shearer’s acquires Medallion Foods from ConAgra
Ardent partners ‘pleased’ with Nisshin agreement
Data - C.P.I. for baked foods, cereals rises 0.1% in March
White pan bread price down sharply in month
Financial Results - PepsiCo Americas Foods unit scores modest quarterly profit gain
Food Ingredient Solutions - Timing for flavor
Fermentation may reduce cocoa waste
Nestle partnership includes studying fermentation
Weather Outlook - China’s crop weather nearly ideal; Central U.S. Plains dry
Regulatory Affairs - Spring permit cleaning
Industry Activities - John Miller: BNSF determined to restore service predictability
Conservation program reforms cited among N.G.F.A. accomplishments
Merchandising - Kellogg ramps up ‘Breakfast for Better Days'
Ingredient Market Trends - Canadian producers to plant less wheat and canola this year
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index
AIB Annual Report - 2013
AIB sets new course for bigger, brighter future
AIB to sharpen marketing focus
Shaking up structure around the world
Baking realigns staff, renovates learning products
Launch into learning
Certification bodies provide additional layer of assurance for customers
The pulse of the people
Lopez: Innovation, a purposeful approach
AIB upgrades customer care functions

Milling & Baking News - April 29, 2014