Milling & Baking News - February 3, 2015 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 3, 2015 / OATMEAL UPDATE Post in agreement to acquire MOM Brands for $1.15 billion Innovation opens new doors for oatmeal category Story on Page 26 LATE NEWS Mignini succeeds Britt at Pepperidge Farm CAMDEN, N.J. - Irene Chang Britt, president - Pepperidge Farm and senior vice-president - Global Baking and Snacking, is leaving Campbell Soup Co. as part of sweeping changes in the company's organizational structure. Luca Mignini, currently president - Campbell International, will assume the role of president - Global Biscuits and Snacks, a new division that will unify the company's Pepperidge Farm, Arnott's and Kelsen businesses into a fully integrated global biscuits, snacks and fresh baked foods portfolio. With approximately $2.8 billion in fiscal 2014 net sales, Campbell said the division "will Continued on Page 8 ST. LOUIS - Post Holdings has entered into an agreement to acquire the MOM Brands Co., Minneapolis, for approximately $1.15 billion. MOM Brands is a ready-to-eat cereal company that markets its products under such brand names as Malt-O-Meal, Golden Puffs, Cinnamon Toasters and many others. Once completed, the acquisition will make Post Holdings the third largest manufacturer of ready-toeat cereals in the United States with a combined dollar share of the market of approximately 18%, according to the company. "For Post, this is the right move, at the right price, in the right category," said Rob Vitale, president and chief executive officer of Post. "After a century of spirited rivalry between MOM Brands and Post, we now look forward to combining our strengths." In connection with the pending acquisition, Post on Jan. 26 also announced plans to raise $240 million in a public offering of common stock. The offering, which is subject to market and other conditions, is expected to feature a grant to underwriters for a 30-day option to purchase up to an additional 15% of the number of shares issued. Proceeds from the stock offering will be used to pay for MOM Brands, together with the company's cash on hand and approximately $700 million in new borrowings that are planned. Upon closing, MOM Brands chairman and c.e.o. Chris Neugent will continue to lead the MOM Brands business as Continued on Page 11 Food Ingredient Solutions® Planting protein into baked foods Options expand with peas, soybeans and even algae A venues for packing plant-based protein into grain-based foods keep expanding. Experiments with milling technology may lead to the addition of more protein sourced from peas and other pulses into such items as pasta and pita bread. Protein sourced from soybeans, with a health claim riding along, continues to make inroads in cereal and bar product launches. Even protein from algae is gaining access to the roadway for baked food innovation. Plant proteins made up 13.8% of the total revenue for the global protein and amino acids market in 2013, according to Frost & Sullivan, a global consulting firm. Animal protein took up 61.2%, and amino acids were at 25%. The percentage may rise for plant protein in the coming years. The projected compound annual growth rate through 2020 for pea protein revenue is about 25% while revenues for soy protein concentrate, soy protein isolate and textured soy protein all have CAGRs of about 10%, according to Frost & Sullivan. The Continued on Page 20

Table of Contents for the Digital Edition of Milling & Baking News - February 3, 2015

Milling & Baking News - February 3, 2015
Post in agreement to acquire MOM Brands for $1.15 billion
Food Ingredient Solutions - Planting protein into baked foods
Late News - Mignini succeeds Britt at Pepperidge Farm
Table of Contents
News Comment - Market conditions for bakers better and better
Editorial - China’s land policy an issue for wheat
Late News
Business - Bay State increasing whole wheat milling capacity in Arizona
Subway recognizes Aryzta, others for enhancing chain’s bread
Wide ranging activities at new facility of Companion Bakery
With MOM, Post sees value in value segment of cereal market
J&J Snack remains on alert for license, acquisition opportunities
Nate’s Food breaks ground on new plant in California
East Balt Bakeries to buy majority stake in South Korean bakery
AB Mauri offices, ‘bakingHUB’ into new St. Louis high-tech development
Bimbo Bakeries to shutter Fresno facility
Winter storm Juno dumps on Northeast; disruptions limited
Merchandising - Rich Products debuts new flatbread products
thinkThin expands into hot oatmeal
People - Jim Fay, longtime baking equipment industry executive, dies at age 90
Wim Heusdens dies at 78; specialized in soybeans and soy products
Mike Mullin dies; long career in grain and milling
Robert Benton elevated at Flowers; Mike Beaty to retire after 47 years
Ken Cotich joins Labriola Baking as chief executive officer
Reading Bakery promotes Warren to vice-president of Exact Mixing
Pea protein for bigger biceps
Oatmeal Update - Innovation opens new doors for oatmeal category
Data - C.P.I. for baked foods, cereals finishes higher in 2014
Improved winter logistics, other factors pressure U.S. oats prices
I.G.C. forecasts slightly smaller wheat crop after 2014-15 record
International - Construction begins on Mondelez $90 million biscuit plant in Bahrain
Weston to acquire decorated cake maker
Industry Activities - AIB hires c.f.o., vice-president of finance and information technology
ConAgra Foods vice-president to offer insights into pasta industry
Bakery club partners with veterans group
Supplier Innovations
Ingredient Market Trends - World durum ending stocks tightest in 20 years
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - February 3, 2015