Milling & Baking News - October 13, 2015 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS OCTOBER 13, 2015 / GRAIN AND MILLING MANAGEMENT Flowers executives share vision for growth in organic bread market A royal accomplishment King Milling's 125th anniversary gala celebrates the past, looks optimistically toward the future Story on Page 30 LATE NEWS Shearer's buying Barrel O' Fun PERHAM, MINN. - Shearer's Foods, L.L.C. is expanding again in the snack food category, planning to make its third acquisition within two years. Shearer's Foods will buy three Barrel O' Fun snack foods companies owned by KLN Enterprises, Inc. under an agreement reached by Shearer's and KLN. The companies are in Perham, Phoenix and Waterford, Pa. Barrel O' Fun makes such products as traditional and kettle-cooked potato chips, whole corn tortilla and corn chips, cheese puffs and curls, gourmet popcorn and baked potato crisps. The products are shipped nationwide to retail stores, food service Continued on Page 8 THOMASVILLE, GA. - With recent acquisitions, Flowers Foods, Inc. has both the leading brand and considerable production capacity in the organic bread space, giving the company confidence in its potential to capture growth opportunities ahead, said Allen L. Shiver, president and chief executive officer of Flowers. In a special Oct. 7 conference call with investment analysts, Mr. Shiver and other Flowers executives discussed the company's recent acquisitions of organic baking companies. Flowers announced on Aug. 13 it had agreed to acquire Dave's Killer Bread and four weeks later said it had reached an agreement to acquire Alpine Valley Bread. The Dave's acquisition closed Sept. 13, and the Alpine deal is expected to close before the end of 2015. The ground for growth in organic foods is fertile, especially so for organic bread, Mr. Shiver said. "Over 80% of American families include some organic foods in their shopping carts," he said. "And the interest in organic breads in particular is broad, appealing to a wide variety of households from millennials to boomers." He said industry experts expect solid low double-digit growth rates for organic bread going forward. "One factor that supports the robust growth outlook for organic breads is that household penetration of organic breads is low when compared to other Continued on Page 10 Indications gluten-based ingredients gaining traction in new products BALTIMORE - Some consumers may be ready to reunite with gluten. Though gluten-free remained a leading claim in new products presented at Natural Products Expo East, held Sept. 16-19 in Baltimore, not every brand is innovating against the grain. "I wouldn't say that gluten-free eating is over," said Jenna Blumenfeld, senior food editor at New Hope Natural Media, which produces Expo East. "It's still a highly sought-out special diet. Rather, manufacturers and consumers are seeking products made with ancient grains like Kamut and spelt ... The story has shifted to be less about the evils of gluten and more about the healthiness of ancient grains. "In the case of Kamut and spelt, their ancient-grain status trumps their gluten content." In a recent report from market research firm Packaged Facts, 19% of U.S. consumers in the past year said they have purchased menu or retail items with ancient grains, and the trend Continued on Page 11

Table of Contents for the Digital Edition of Milling & Baking News - October 13, 2015

Milling & Baking News - October 13, 2015
Flowers executives share vision for growth in organic bread market
Indications gluten-based ingredients gaining traction in new products
Late News - Shearer’s buying Barrel O’ Fun
Table of Contents
News Comment - Baking industry’s companies stand out as focused
Editorial - Turnabout in flour export-import trade
Late News
Business - 5 Generation Bakers moving for increased capacity, new offices
Bagel and pita bread maker to expand operations in Indiana
Dr. Schär updates gluten-free bread line with Artisan Baker
Bunge North America acquires cooking oils business
Washington - T.P.P. agreement reached, but more hurdles ahead
Congress approves bill to reauthorize grain inspections
Merchandising - Drake’s Funny Bones revived by McKee Foods
Industry Activities - Didion airs food aid concerns in House Ag committee testimony
BEMA elects executive committee
Hostess c.e.o. to speak at BakingTech 2016
People - James Zallie to lead Americas businesses at Ingredion
Mulford named president of Flowers’ Thomasville baking plant
Former ConAgra executive to lead Walkers Shortbread
International - Mondelez International to roll out Oreos in Russia
General Mills to sell South African food service business
London court rules Tate & Lyle should pay $27.3 million
Transportation and Distribution - Grain shipping prospects favorable for fall harvest
Grain and Milling Management - A royal accomplishment
Nutrition and Health - Is rising fat intake a bad thing?
Study links saturated fat to heart disease risk
Financial Results - Cargill earnings climb led by grain and oilseeds processing
Supplier Innovations
Ingredient Market Trends - U.S.D.A. lowers wheat carryover forecast to 861 million bus
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - October 13, 2015