Milling & Baking News - July 21, 2015 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 21, 2015 bakingbusiness.com / foodbusinessnews.net FOOD INGREDIENT SOLUTIONS® Grain and Milling Technology Entrepreneurial spirit, ambition glow brightly at Grain Craft Fiber's sweet side Ingredients such as inulin and polydextrose may provide dual benefits Story on Page 25 LATE NEWS C.P.I. for baked foods, cereals up 0.3% WASHINGTON - The Consumer Price Index for baked foods and cereal products increased 0.3% in June, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The index for all food at home, meanwhile, rebounded after four straight months of lower prices, rising 0.2%. The June index for Cereals and Bakery Products before seasonal adjustment was 274.5% of the 198284 average, up 1.3% from a year ago. For all food at home, the June index was 241.5, up 1% from June 2014. The C.P.I. for cereals and cereal products in June was 236.3, up 0.3% from May and up 1% from June 2014. The price Continued on Page 8 CHATTANOOGA, TENN. - For the top executives of Grain Craft, its acquisition of Cereal Food Processors, Inc. in 2014 is not viewed as the finish line, but as yet another step in building milling's leader. Charles B. Stout, chairman and chief executive officer, and Peter Frederick, president, have greater ambitions beyond this major step. "This transaction was not just about growing larger," Mr. Frederick said. "Our objective is to build on both companies' great customer relationships to establish leadership in the flour milling industry. That's in every facet." Which is not to say they take lightly the accomplishment of having purchased C.F.P. "We're humbled," Mr. Frederick said. "The creation of Grain Craft is truly transformational. It fundamentally changed three companies and demonstrates the extraordinary commitment of our shareholders, the support of our customers and the dedication of our employees." Mr. Frederick and Mr. Stout described their vision for Grain Craft in an interview at the company's Chattanooga headquarters. With the C.F.P. acquisition, the Grain Craft executives said they not only acquired mills, but also obtained outstanding, experienced talent, especially in milling operations. This addition represents an ideal complement to the buyers' existing commitment to investing in state-ofthe-art milling technology. All are now working toward building a powerful corporate identity in flour milling. "We bought a really good business, with solid assets and with great Continued on Page 18 Hostess said to retreat from sale, pursuing financial restructuring KANSAS CITY - Apparently ending months of speculation with fresh rumors circulating as recently as early July, Hostess Brands L.L.C. is not considering an initial public offering, the company's chairman told Forbes.com. Subsequent news reports appeared to give credence to ideas the company is seeking a financial restructuring. "An i.p.o. is not on the table today," Dean Metropoulos, chairman of Hostess, told Forbes on July 7. "A number of people lobbed in interest to buy Hostess. We considered a number of offers well above $2 billion, but we decided there was too much upside. We've run the company for only two years. Not taking Hostess to its full potential is an inappropriate thing to do." In media reports that surfaced earlier, people familiar with the matter indicated Hostess had turned down offers in recent weeks from other companies and private equity firms that valued it at between $2.4 billion and $2.5 billion, including debt. Instead, the people said Continued on Page 10 http://www.bakingbusiness.com http://www.foodbusinessnews.net http://www.Forbes.com

Table of Contents for the Digital Edition of Milling & Baking News - July 21, 2015

Milling & Baking News - July 21, 2015
Grain and Milling Technology - Entrepreneurial spirit, ambition glow brightly at Grain Craft
Hostess said to retreat from sale, pursuing financial restructuring
Late News - C.P.I. for baked foods, cereals up 0.3%
Table of Contents
News Comment - Outlook for El Niño causes concern about ’16 crops
Editorial - Ethanol surge as a force in wheat
Late News
Business - Bunge North America to close oil packaging plant in Illinois
Nature’s Path builds organic presence with acquisition
Bimbo moving ahead and offers details on Panrico acquisition
General Mills gaining share in away-from-home market
General Mills to shutter cereal, snack manufacturing facilities
Cereal Ingredients expanding production and storage capacity
Diamond Foods opens innovation center by Oregon snack plant
Washington - House agriculture committee gives nod to food labeling proposal
Bakers seek pho legal protection during three year phase-out period
Financial Results - PepsiCo sets sights on growth in global snacks
Gourmet, specialty business drives Barry Callebaut growth
Education and Research - No advantage seen between main whole grain milling methods
Wheat origination seen as a strength at Grain Craft
People - Scheiber to Bühler c.e.o. in 2016; Grieder to remain chairman
Masujima takes new role at Nisshin Flour Milling
Subway elevates Suzanne Greco to president
Food Ingredient Solutions - Fiber’s sweet side
Fiber has ingredient partners at I.F.T.
Export and Trade Issues - Congressmen seeking answers in in-kind food aid discussions
Washington - A rising tide from liberalized trade?
Weather Outlook - El Niño updates: How bad is it and where are we going?
Supplier Innovations
Ingredient Market Trends - 2015-16 world wheat ending stocks forecast at a record 220 million tonnes
Ingredient Week
Classifieds
Marketplace Business Network
Ad Index

Milling & Baking News - July 21, 2015

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