Milling & Baking News - January 5, 2016 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS JANUARY 5, 2016 / DONUT UPDATE Stock Market Analysis With volume soft, bold action expected from food executives in 2016 E Clear out space for miniature donuts Story on Page 32 LATE NEWS Grain-based foods shares up in 2015 NEW YORK - The Grain-Based Foods Share Index, calculated by Milling & Baking News, ended 2015 at 21225.54, up 4.3% from 20342.89 at the conclusion of 2014. It was the seventh straight year the grain-based foods index ended with an advance. The strength in the index contrasted with the performance of the broad stock market during the year. The 4.3% gain compared with a 2.2% decline in the Dow Jones average of industrial shares and a 0.7% decline in the Standard & Poor's 500 Index. The Nasdaq composite index was up 5.7% for the year. (A comprehensive review of grain-based foods share performance Continued on Page 8 ven as share prices of consumer packaged foods companies generally performed well in 2015, buoyed by a variety of forces, investment analysts said the sectors fundamentals remain challenged when it comes to a most basic ingredient of long-term business success - consumer demand. "It was a very tough year for the U.S. food industry largely because volumes were very challenging," said Farha Aslam, an analyst with Stephens, Inc., New York. While volumes have been under pressure for several years, an improved economic environment had generated confidence that the slump in food demand would reverse. "As their incomes improved and oil prices came down, the consumer has chosen to spend their money outside the grocery stores on products like technology rather than incremental food volumes," Ms. Aslam said. "Given you had rising income and lower fuel prices, there were expectations the consumer would spend some of the incremental discretionary funds Continued on Page 22 St. Louis-area flooding disrupts milling operations KANSAS CITY - Flooding, including some record-high river levels, brought flour milling and elevator operations to a near halt and barge traffic to a complete halt in the St. Louis region during the last week of the year and into early 2016. Four major flour mills in the region were either closed due to the floods directly or were unable to get wheat in and flour and byproducts out due to flooded roads and railroads last week, trade sources said. Affected facilities in the region included the ADM Milling Co. mill and U.S. Durum Milling, Inc. (Italgrani U.S.A., Inc.) mill, both in St. Louis, and Ardent Mills plants in Alton, Ill., just north of St. Louis, and in Chester, Ill., several miles to the south. The impact ranged from actual flood waters in the Ardent Mills facility in Chester to logistics problems at the ADM Milling plant, which was on higher ground and continued to operate. Milling executives reached by Milling & Baking News said the floods have not kept them from meeting their customers' needs. "Mississippi River Locks 27, located Continued on Page 10

Table of Contents for the Digital Edition of Milling & Baking News - January 5, 2016

Milling & Baking News - January 5, 2016
St. Louis-area flooding disrupts milling operations
Late News - Grain-based foods shares up in 2015
Table of Contents
News Comment - Food trend prophets are not Las Vegas odds makers
Editorial - A time of great change in publishing
Late News
Business - Panera sees better food coming from responsibility initiative
ADM celebrates safety record at flour mill in Missouri
Whole Foods experts see alternative flours as a top trend in 2016
F.D.A. extends period for comments on natural labeling claims
International - W.T.O. ministerial conference adopts export subsidy ban
ADM acquires interest in Egyptian agricultural merchandiser
People - Cargill executive Todd Hall joins company’s board of directors
Rindom to newly created role of chief administrative officer at MGPI
Alfonso Argudin to vice-president of global marketing at Bimbo
John Sheptor to lead Mary’s Gone Crackers as c.e.o.
Financial Results - Krispy Kreme Panthers promotion helps lift quarterly financials
Industry Activities - Subway pledges transition to cage-free eggs by 2025
A.S.B. names product development competition finalists
Nutrition and Health - Study shows Salmonella can survive months in sandwich cookies, crackers
With initiative, children seeing more ads for healthier foods
Education and Research - U.S. research effort aims to lift global wheat yields
K.S.U. research seen helping mills optimize flour purity
Donut Update - Clear out space for miniature donuts
Exchange rate hinders global expansion for chains
Export and Trade Issues - Argentina taking more aggressive stance in pursuit of wheat exports
Ingredient Market Trends - Grower groups applaud end to export subsidies, with caveats
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - January 5, 2016