Milling & Baking News - February 16, 2016 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS FEBRUARY 16, 2016 / IBIE Preview Company Profile Century-old startup Hostess c.e.o. explains how this once imperiled business is poised for growth on numerous fronts W IBIE 2016: The build-up begins Story on Page 44 LATE NEWS Kellogg earnings, sales slide in F.Y. '15 BATTLE CREEK, MICH. - Trends in the U.S. cereal business continued to improve in the fourth quarter, helping The Kellogg Co. to meet or exceed expectations during fiscal 2015. Net income in the year ended Jan. 2 was $614 million, equal to $1.74 per share on the common stock, down 3% from $632 million, or $1.76 per share, in fiscal 2014. Net sales fell 7% to $13,525 million from $14,580 million. The company's U.S. Morning Foods unit, which includes Kellogg's cereal business, posted operating profit of $474 million for the full year, down from $479 million a year ago. During the fourth Continued on Page 8 hat is the "next act" for Hostess Brands, L.L.C.? The company's recovery from its dramatic 2012 collapse has been heralded as an unlikely but extraordinary feat. Dubbed by Hostess as the "sweetest comeback in the history of ever," the restoration of Twinkies, HoHos and the company's other popular snack cakes into retail channels nine months after operations were halted, and its subsequent success at reclaiming market share from tough competitors has been likened to a return from the dead. With this monumental achievement in the rearview mirror, what's next? For the past 20 months, William D. Toler, president and chief executive officer, has been hard at work writing the next chapter in this company's amazing story. In an interview with Milling & Baking News magazine, Mr. Toler described progress Hostess has made on the great comeback and his plans for the future while also sharing his perspectives on what transpired at Hostess before Continued on Page 38 Flour output in 2015 indicated just shy of 2014 record WASHINGTON - Wheat flour production (including durum semolina) by U.S. flour mills in 2015 aggregated 424,894,000 cwts, according to the National Agricultural Statistics Service (NASS) of the U.S. Department of Agriculture. Output in 2015 was virtually unchanged, down only 56,000 cwts from the output high of 424,950,000 cwts posted in 2014. NASS statistics are now available for the last six quarters, and this was the first encompassing an entire calendar year. While all the 2015 data were compiled by NASS, figures for January-June 2014 originated from the North American Millers' Association (NAMA) panel of the largest U.S. mills and were subsequently interpolated by Milling & Baking News to make the data comparable with earlier statistics compiled by the U.S. Census Bureau. Most apparent were the extremely narrow changes in annual flour output in recent years. While 2015 was 56,000 cwts smaller than the record, it was 0.1%, or 344,000, over Continued on Page 33

Table of Contents for the Digital Edition of Milling & Baking News - February 16, 2016

Milling & Baking News - February 16, 2016
Company Profile - Century-old startup
Flour output in 2015 indicated just shy of 2014 record
Late News - Kellogg earnings, sales slide in F.Y. ‘15
Table of Contents
News Comment - Unnerving category slip for bread in late 2015
Editorial - Flour output data reveal quandary
Late News
Business - La Brea Bakery to transition away from bioengineered ingredients
Wendy’s rolls out ‘lighter, fluffier and hotter’ bakery-style bun
Pasta, tortellini maker expands through asset purchase
King’s Hawaiian files legal complaint against Alpha Baking
Wegmans to showcase specialty mill inside of supermarket
Sabert Corp., Kalman sign bakery packaging deal
Ingredion expanding in Asia-Pacific
Aunt Millie’s launches Breadsense, consumer-targeted media campaign
Panera buys majority stake in Boston-area bakery chain
Cascade Milling to double acreage devoted to organic wheat
ADM to acquire Tate & Lyle corn wet mill
Nutrition and Health - Julie Miller Jones: Oprah’s bread endorsement supported by science
Industry Activities - A.B.A. overcomes risks, achieves successes with policy strategy
AIB eyes ‘agile organization’ with leadership changes
Innovative flavors drive popcorn category growth
People - Riley Didion named president of Didion Milling
Cecil Gregory promoted to chief executive of Lawrence Foods
Post Holdings executive joins Welch’s board of directors
Data - Export cut pushes wheat carryover to 966 million bus
Socializing B2B
IBIE Preview - IBIE 2016: The build-up begins
Weather Outlook - Lack of La Niña in summer 2016 will save Midwest crops
Financial Results - Post ‘not banking on growth’ in ready-to-eat cereal category
Flowers optimistic about new year; financials trigger share tumble
ADM earnings decline 18% in fiscal year; sales down 17%
Ingredient Market Trends - U.S. bumped to fourth place as world wheat exporter
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - February 16, 2016