Milling & Baking News - November 24, 2015 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 24, 2015 / GRAIN MARKET ROUNDTABLE Growers look to revitalize wheat industry; users seek voice Wheat futures seen weak through 2015 and into 2016 Story on Page 33 LATE NEWS Profit flat in Smucker U.S. retail unit ORRVILLE, OHIO - Net sales in the U.S. Retail Consumer Foods segment of J.M. Smucker Co. during the second quarter declined 3% to $644 million, reflecting lower prices for Pillsbury and Jif products partially offset by growth in the Smucker's Uncrustables frozen sandwiches and Eagle Brand canned milk businesses. Segment profit was flat at $125.4 million, as lower prices and higher manufacturing overhead costs related to a new peanut butter plant in Memphis offset lower input costs for milk, peanuts and oils. Overall, net income at J.M. Smucker for the second quarter ended Oct. 31 was $176 million, Continued on Page 8 WASHINGTON - The National Association of Wheat Growers and the National Wheat Foundation on Nov. 10 announced a joint effort to develop a comprehensive business plan to revitalize the U.S. wheat industry. The announcement came as a surprise to the North American Millers' Association and the American Bakers Association, who applauded the goal of revitalizing the wheat chain but requested further details on the initiative and urged their perspectives be included in the process, especially if what is envisioned as part of the plan may be the development and commercialization of bioengineered wheat varieties. "The wheat industry is not keeping pace with other crops," said Brett Blankenship, president of NAWG and a wheat grower from Washtucna, Wash. "As a wheat grower-leader, I want to see the industry flourish not decline. Reinvigorating the wheat industry will come from increased productivity and profitability. This strategic plan will provide us with the insight and analysis we need to move the U.S. wheat industry forward in a stronger direction." Dusty Tallman, chairman of the N.W.F. and a wheat grower from Brandon, Colo., noted the wheat industry has faced decreased profitability in Continued on Page 12 Flowers volume up in quarter; shares fall with guidance cut THOMASVILLE, GA. - Sales growth at Flowers Foods, Inc. in the third quarter ended Oct. 10 was driven principally by volume gains, and the company also benefited from slightly improved EBITDA margins during the quarter. At the same time, the company's financial results were adversely affected by acquisition related costs, the effects of a divestiture and facility closing costs. Additionally, Flowers lowered its earnings and adjusted sales guidance for 2015. In trading Nov. 12 on the New York Stock Exchange, the price of Flowers' common stock slumped to as low as $23.52 per share, down 12%, from the Nov. 11 close. Flowers Foods net income in the third quarter was $43,796,000, equal to 21c per share on the common stock, down 1.8% from $44,599,000, or 21c per share, in the third quarter of 2014. Sales were $885,302,000, up 4.7% from $844,932,000 in the same period a year earlier. The sales growth represents a significant Continued on Page 20

Table of Contents for the Digital Edition of Milling & Baking News - November 24, 2015

Milling & Baking News - November 24, 2015
Growers look to revitalize wheat industry; users seek voice
Flowers volume up in quarter; shares fall with guidance cut
Late News - Profit flat in Smucker U.S. retail unit
News Comment - Stumble aside, promise in wheat grower effort
Editorial - Russia challenging U.S. in wheat
Late News
Business - ConAgra Foods to spin off Lamb Weston business
Nanny’s Stock wholesale bakery opening in North Carolina
Rothbury Farms recognized as top supplier of Bimbo Bakeries USA
Barilla opens new 75,000-square-foot headquarters in Illinois
Nutrition and Health - Survey: Pledges to advertise healthier cereals are working
International - ADM grows in China with opening of two new production facilities
Data - C.P.I. for baked foods, cereal rebounds after two months of declines
White pan bread, whole wheat prices fall in October
Financial Results - Revived Cobblestone, with organic lines, fuels Flowers’ optimism
Industry Activities - Don Sullins named NAMA honorary member; Mark Sabo recognized
Jim Meyer elected to three-year term on NAMA Executive Committee
Potato, beef experience provides preparation for new W.F.C. leader
‘Super food’ whole grains tied to healthy gut microbiome
Andre Biane outlines FSMA requirements for milling
AACC holds Centennial event in Minneapolis
Grain Market Roundtable - Wheat futures seen weak through 2015 and into 2016
Soybean market faces relentless bearish pressure
Corn prices seen firming modestly from lows
Bars Update - Bars deliver a ‘healthy’ boost
Glanbia to acquire thinkThin
Weather Outlook - El Niño has peaked, despite the worldwide hype
People - Frank Rooney, longtime president of B.&C.M.A., dies at 78
Deborah Borg to Bunge Ltd. in top human resources position
Bruce Gubser joins MGP Ingredients as regional sales manager
Richard Schlipf, former president of A.S.B., dies at age 80
Paul Vermylen dies at 96; headed A. Zerega’s Sons family-owned pasta company
AAK hires Ramesh Reddy as customer innovation manager
Wixon adds packaging operations manager
Merchandising - Flowers looks to make splash with seasonal Tastykake snack cakes
King Arthur partners with pizza chain to provide flour
Supplier Innovations
Ingredient Market Trends - Plenty of corn, not enough demand
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - November 24, 2015