Milling & Baking News - September 16, 2014 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS SEPTEMBER 16, 2014 bakingbusiness.com / foodbusinessnews.net WASHINGTON UPDATE General Mills expanding in natural, organic segment with Annie's The role and results of economic sanctions Story on Page 35 LATE NEWS General Mills adds chief creative officer MINNEAPOLIS - Michael Fanuele has been named to the newly-created position of chief creative officer at General Mills, Inc., effective Oct. 6. Mr. Fanuele will oversee brand strategy, strategic planning and creative development, and will report to Mark Addicks, chief marketing officer. Prior to joining General Mills, Mr. Fanuele was chief strategy officer at the advertising agency Fallon, where he worked on such accounts as H&R Block and Arby's. Earlier, he was with Euro RSCG Worldwide, Walrus, J. Walter Thompson and Mad Dogs & Englishmen. He also is a guest lecturer at the Miami Ad School and The Virginia Continued on Page 8 MINNEAPOLIS - General Mills, Inc. has entered into a definitive agreement to acquire Annie's, Inc., a producer of branded organic and natural food products, for $46 per share in cash. The proposed transaction has an aggregate value of approximately $820 million. Berkeley, Calif.-based Annie's is expected to join General Mills' U.S. natural and organic products portfolio, which includes the Cascadian Farm, Muir Glen, Larabar and Food Should Taste Good brands. Net sales for these General Mills brands totaled approximately $330 million in fiscal 2014 ended May 25. "This acquisition will significantly expand our presence in the U.S. branded organic and natural foods industry, where sales have been growing at a 12% compound rate over the last 10 years," said Jeff Harmening, executive vicepresident and chief operating officer of U.S. Retail at General Mills. "Annie's competes in a number of attractive food categories, with particular strength in convenient meals and snacks - two of General Mills' priority platforms. Consumers know and trust Annie's Continued on Page 9 Product Perspective: Bread Dynamic bread market shows bakers sharpening elbows for shelf space I n the wake of historic change in the ownership structure of the U.S. baking industry, a period of quiet consolidation may have been expected to follow in the U.S. bread market. The picture to emerge instead has been a very different one. The largest companies in the baking industry have been aggressively jockeying for position, battling for shelf space and making major moves to ensure their production base is competitive. What's at stake in the baking market was described in blunt terms in recent remarks by R. Steve Kinsey, executive vice-president and chief financial officer of Flowers Foods, Inc., Thomasville, Ga. "Each share point in the fresh packaged bread category translates to roughly $100 million in top-line sales for Flowers," Mr. Kinsey said Sept. 3 during the Barclays Back-to-School Consumer Conference in Boston. He said picking up a larger piece of the pie is no small feat. "Each share point of market share will be hard-earned, but achieving these goals will create tremendous Continued on Page 25 http://www.bakingbusiness.com http://www.foodbusinessnews.net

Table of Contents for the Digital Edition of Milling & Baking News - September 16, 2014

Milling & Baking News - September 16, 2014
General Mills expanding in natural, organic segment with Annie’s
Product Perspective - Bread: Dynamic bread market shows bakers sharpening elbows for shelf space
Late News - General Mills adds chief creative officer
Table of Contents
News/Comment - Plenty of carbs in latest low-carbohydrate diet
Editorial - Forceful message in fortification study
Late News
Business - Wal-Mart ramping up food presence in Canada
Bimbo calls special shareholder meeting ahead of share offering
Fire breaks out at Kellogg cookie plant; shutdown of plant planned
CWB planning construction of grain elevator in Saskatchewan
5 Generation Bakers recognized for rapid revenue growth
Bimbo and General Mills rank among Forbes’ most innovative companies
Kansas Wheat groups moving forward with new brand mark and tagline
Northern Crops Institute celebrates major equipment upgrade
Bimbo to shutter Stroehmann bakery plant in Harrisburg
Markel Bakery Group expands with Vanderpol, Den Boer acquisitions
Special K and Kashi look to get back on their game
People - Einstein Noah names Frank Paci as new president and c.e.o.
Dan Morgan promoted to top sales position at Snyder’s-Lance
Karl Driggs to Main Street Gourmet as chief operating officer
Two to new posts at Just Desserts
Financial Results - Campbell Soup baking unit profit climbs in fiscal year
Frito-Lay finding way through brand building and innovation
Nutrition and Health - Low-carb dieters lose more weight in year-long study
Poll: Parents support healthier school food policies
Merchandising - CHS, Inc. partners with minor league baseball team
Dave’s Killer Bread becomes Non-GMO Project Verified
Washington Update - The role and results of economic sanctions
S.T.B. hears concerns over fall rail shipments
Bipartisan bill seeks to strengthen S.T.B.
International - General Mills focus: per capita consumption in emerging markets
Barilla secures sizable loan for international expansion
Upward pace maintained in global flour exports
Supplier Innovations
Ingredient Market Trends - Record crops weigh on grain and oilseed futures prices
Ingredient Week
Classifieds
Marketplace Business Network
Ad Index
Archive

Milling & Baking News - September 16, 2014

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