Milling & Baking News - February 17, 2015 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
FEBRUARY 17, 2015

bakingbusiness.com / foodbusinessnews.net

FOOD SERVICE UPDATE

Statts offers update amid radically
altered energy market landscape

Restaurants push
pizza crusts,
on-line orders
Story on Page 31

LATE NEWS

Former Hillshire c.e.o.
to head ConAgra
OMAHA - Sean M. Connolly will
become chief executive officer of
ConAgra Foods, Inc., effective April
6, the company announced Feb. 12.
The announcement came six months
to the day after Gary
M. Rodkin announced
plans to retire as c.e.o.
at the end of the fiscal year in May. Mr.
Rodkin will serve as
a senior adviser to
Connolly
the company between
April 6 and the end
of May. Most recently Mr. Connolly
was president and c.e.o. of The Hillshire Brands Co. from the time the
Continued on Page 8

LOUISVILLE, KY. - Despite relentlessly "Prices may bounce up to the low $3s
strong domestic demand, natural gas late in the spring before falling back toprices are expected to remain far below ward the lows in the third quarter."
year-earlier levels into the spring, said
Even as recently as December, such a
Tim Statts, vice-president of
Brent crude oil
risk management, Schneider
per barrel
Electric, Louisville.
$160
Mr. Statts offered an up$140
date on natural gas, crude
$120
oil and electricity prices in a
$100
Feb. 10 interview with Mill$80
ing & Baking News He has
$60
been a regular speaker each
$40
June for several years cover$20
ing energy markets at the
$0
annual Sosland Publishing
May May May May May May May May May
Co. Purchasing Seminar.
2006 2007 2008 2009 2010 2011 2012 2013 2014
Like the plunge in crude
oil, the decline in natural gas has left low price range may have been difficult
prices at levels difficult to imagine a to envisage. The Henry Hub spot price
short time back. No significant rally is for natural gas peaked at $8.15 on Feb.
10, 2014, before sliding to about $4.50
imminent, Mr. Statts said.
"We think we have a good shot of hit- in early June. Prices gradually eroded
ting $2.25 (per million BTU's)," he said.
Continued on Page 22

In clash with union, Kellogg warns
cereal plant closing may be ahead
BATTLE CREEK, MICH. - The Kellogg Co. said it will have "no choice"
but to close at least one U.S. cereal plant
in the "very near future" if it is unable
to come to terms with the Bakery, Confectionary, Tobacco and Grain Millers
(B.C.T.G.M.) Union.
Kellogg submitted a Memorandum of
Agreement (M.O.A.) to the B.C.T.G.M.
late last year that was not ratified

when voted upon by union members
in December. According to Kellogg, the
M.O.A. would have addressed the immediate needs of the company's cereal
business and would have guaranteed
jobs at its cereal plants for at least the
next four years.
"Kellogg Co. is committed to the longterm health of our cereal network in the
U.S.," the company said in a statement
issued Feb. 2. "For many years, employees at our cereal plants have been
making high-quality, nutritious foods
so people can have a better start to their
day. And we want them to continue doing so for many years to come.
"However, given the current environment, that's become increasingly
Continued on Page 12

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Milling & Baking News - February 17, 2015

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