Milling & Baking News - July 7, 2015 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 7, 2015 / U.S.D.A. corn, soybean numbers send futures markets soaring NEWS FEATURE Pressure to address climate change mounting Story on Page 26 LATE NEWS Kraft, merger with Heinz finalized NORTHFIELD, ILL. - Kraft Foods Group, Inc. said its shareholders on July 1 voted to approve the previously announced merger agreement with The Heinz Co. More than 98% of votes cast at the special meeting voted in favor of the transaction, which will create The Kraft Heinz Co., the third-largest food and beverage company in North America and the fifthlargest food and beverage company in the world. "Today's approval to create The Kraft Heinz Co. will unite two powerful businesses, deliver incredible shareholder value, and provide a platform for growth both domestically and internationally," said Continued on Page 8 WASHINGTON - The National Agricultural Statistics Service of the U.S. Department of Agriculture on June 30 in its annual Acreage Report forecast 2015 planted and harvested area for corn down 2% from 2014 and for soybeans up 2% and record high. Both planting numbers were below average trade expectations. The U.S.D.A. acreage numbers, along with June 1 corn and soybean stocks estimates that also were below average trade expectations, sent futures markets sharply higher on June 30. The two nearby corn futures contracts (old crop) soared the daily 30c-a-bu trading limit, or 8%, while soybeans surged as much as 57¼c a bu, or 6%, both six-month highs. Although both corn and soybean futures gave back a portion of their gains in trading on July 1, corn remained firmly above the $4-a-bu benchmark and soybeans above the $10-a-bu benchmark. The area planted to corn this year was estimated at 88,897,000 acres. This compared with 89,199,000 acres as the March projection and was 1,700,000 acres, or 2%, smaller than the 2014 planted area at 90,597,000 acres. Harvested area of corn was forecast at 81,101,000 acres, which was 2,035,000 acres, or 2%, smaller than the 2014 harvested area at 83,136,000 acres. The U.S.D.A. corn planting estimate, which was the lowest since 2010, was below the average trade expectation of 89,173,000 acres. The U.S.D.A. commented, "Planted (corn) acreage for 2015 is at the same level or down across most of the Corn Belt with the exception of Wisconsin, which increased planted acreage from 2014." The U.S.D.A. estimated soybean seedings in 2015 at a record 85,139,000 acres, up 504,000 acres from the March projection and up 1,438,000 acres, or 2%, from 83,701,000 acres in 2014. Soybean Continued on Page 32 Grupo Bimbo growing in Spain with Panrico acquisition MEXICO CITY - Grupo Bimbo S.A.B. de C.V. has reached an agreement to acquire Panrico S.A.U. in Spain and Portugal. The acquisition includes 100% of the company's shares, excluding the branded packaged bread category. Founded in 1962, Panrico produces and distributes donuts and other bakery products for customers in Spain and internationally. With the acquisition, Bimbo would add 16 facilities in Spain and 3 in Portugal. Panrico said its distribution network features 2,500 drivers and 2,300 routes. The company's products may be found at 120,000 points of sale. From 1973 until 1999, Panrico was 50% owned by Allied Domecq Group. In recent years, Panrico has grown with a number of acquisitions, including the Artiach biscuit business in 2008 (acquired from Kraft Foods) and La Bella Easo, a maker of cupcakes, milk bread and croissants, in 2010. "The transaction is conditional upon the result of due diligence, signing a final acquisition agreement and the Continued on Page 10

Table of Contents for the Digital Edition of Milling & Baking News - July 7, 2015

Milling & Baking News - July 7, 2015
U.S.D.A. corn, soybean numbers send futures markets soaring
Grupo Bimbo growing in Spain with Panrico acquisition
Late News - Kraft, merger with Heinz finalized
Table of Contents
News Comment - Biotechnology directive overdue but welcome
Editorial - Still waiting on consumer spending
Late News
Business - Operations cease at older Nagel flour mills in Ohio
Love With Food acquires gluten-free snack subscription service
Corner Bakery plans expansion of presence in airport terminals
Business - ConAgra Foods announces plans to divest Private Brands business
Starbucks testing French baker’s cookies in New York stores
Krispy Kreme expanding in Chicago with eight stores
Tastykake unveils summer L.T.O.s
People - Rich Seban retiring; was Hostess executive during tumultuous period
Leadership restructured at Sosland Publishing
Heinz Hutter, former president of Cargill, dies at 85
Randy Schrick retiring after 42 years at MGP Ingredients
Education and Research - Mozaffarian and Ludwig criticize fat intake guidance
Financial Results - Sluggish U.S. Retail segment weighs on General Mills full-year profit
Industry Activities - Food service supplier details bumpy road to success with whole grains
Smartphones, nutrition television seen as powerful teaching tools
Whole grains collaboration keeps pizzas school-lunch compliant
Washington - Ag committee considers in-kind versus cash-based food aid
Climate Change - Pressure to address climate change mounting
Could climate change make bread smaller?
Supreme Court overturns E.P.A. air quality rule
International - Shy of goal, major progress still cited in fight to cut global hunger
Supplier Innovations
Ingredient Market Trends - Concern mounts for soft red winter wheat
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - July 7, 2015