Milling & Baking News - October 28, 2014 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS OCTOBER 28, 2014 / Pasta Update Food Ingredient Solutions® Innovation on the gluten-free frontier Formulators experiment with chia, flax, ancient grains and pulses A push for pasta Pasta makers face challenges from quick-service, private label Story on Page 30 LATE NEWS Bimbo earnings soar in third quarter MEXICO CITY - Operating income of the U.S. and Canadian baking business of Grupo Bimbo S.A.B. de C.V. was 1,145 million pesos ($84.4 million) in the third quarter ended Sept. 30, up 28% from 898 million pesos in the third quarter of 2013. Net sales were 24,741 million pesos ($1,824 million), up 21% from 20,400 million pesos in the prior year quarter. Breaking down the 21.3% sales increase for the U.S and Canada business, Bimbo said 21.9% reflected the incremental sales from the Canada Bread acquisition. Organic net sales in dollar terms fell 1.7%, reflecting in part the company's divestiture of the Sara Lee brand in Continued on Page 8 G luten-free formulations have broken off into diverse paths. Research and development teams appear to be leaving no road untaken. Innovation is blossoming through work with sprouted grains and seeds, pulses and potato starches. Ancient grains show promise in the creation of gluten-free artisan bread. All these roads of discovery may lead to higher quality gluten-free items, those with better texture, longer shelf life and increased levels of such nutritional benefits as fiber, protein, omega-3 fatty acids and vitamins. While people with celiac disease always will have reason to buy glutenfree products, the lasting mainstream success of such products may depend on higher quality product. "The outlook for gluten-free products is good for 2015," said Todd Giesfeldt, mill R.&D. senior manager for Didion Milling, Cambria, Wis. "The market category will continue to grow at least Continued on Page 21 Penford acquisition takes Ingredion further into specialty ingredients BRIDGEWATER, N.J. - Once known as Corn Products International, Ingredion, Inc. continued to reshape the company to more closely reflect its current name by moving to expand its ingredient portfolio on Oct. 15. Ingredion, based in Westchester, Ill., announced plans to acquire Penford Corp., Centennial, Colo., for about $340 million in cash. More acquisitions, perhaps in gums and hydrocolloids, may follow, said Ilene Gordon, chairman, president and chief executive officer of Ingredion. Ingredion is active in corn starch ingredients and other specialty ingredients while Penford is active in potato starch ingredients. "It's a great opportunity because it expands our portfolio," Ms. Gordon said of the acquisition during an innovation center event in Ingredion's Bridgewater location Oct. 15. "If you go back to our strategic footprint, we've been looking for acquisitions to broaden our portfolio." Ingredion expects to fund the transaction with available cash and funds available under existing credit facilities. The transaction could close by the end Continued on Page 9

Table of Contents for the Digital Edition of Milling & Baking News - October 28, 2014

Milling & Baking News - October 28, 2014
Food Ingredient Solutions - Innovation on the gluten-free frontier
Penford acquisition takes Ingredion further into specialty ingredients
Late News - Bimbo earnings soar in third quarter
Table of Contents
News Comment - Gluten-free market growth considerable even as it slows
Editorial - Wheat premium surge negates flour price relief
Late News
Fire damages sugar warehouse in Brazil
Business - Bun Companies expanding with Atlanta-based Masada Bakery
U.S.D.A. begins gathering data for reporting on flour production
General Mills finalizes purchase of Annie’s for $821 million
Illinois maker of sugar-free baked foods receives funds for growth
SternMaid America opens microblending facility in Illinois
Rabin Worldwide conducts auction for Dobake assets
Krispy Kreme set for first store opening in South America
Financial Results - Dunkin’ Brands quarterly earnings bogged down by competition
Brinker’s strategy pays off in strong quarterly results
Washington - U.S.D.A. unveils programs for risk management
Farm bill initiative provides more severe weather relief
U.S.D.A. awards research grants worth more than $18 million
International - W.F.P. working to increase food aid to Ebola-stricken countries
Industry Activities - A.S.B. sponsors new product development contest
AIB renovates Cookie and Cracker module of BS&T course
A.S.B. names eight to newest Baking Hall of Fame class
People - Gavilon elevates Anderson to president and c.e.o.
Jeff Zadoks to chief financial officer at Post Holdings
Darden board selects Gene Lee as interim chief executive
Consumers may pay more for indulgence
Growth may slow, but gluten-free category remains far from stale
Pasta Update - A push for pasta
Data - C.P.I. for baked foods, cereals declines in September
White pan bread price rises, whole wheat falls in September
Weather Outlook - Brazil heat and dryness no omen for 2015 crop size
Education and Research - Study finds reason to cut sodium in sandwiches
Merchandising - Angelic Bakehouse unveils new packaging with ‘striking new look’
Batter Blaster maker adding Nate’s Pancakes to line
Baking front and center during this year’s AACC International annual meeting
Supplier Innovations
Ingredient Market Trends - A rebound for some major ‘minor’ oil crops
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - October 28, 2014