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

THE NEWS WEEKLY OF GRAIN-BASED FOODS JULY 5, 2016 / FOOD INGREDIENT SOLUTIONS® Millers and bakers bracing for bumpy transition to new crop Promotional opportunities in fortification Government agencies recommend vitamin D, potassium and folic acid Story on Page 26 LATE NEWS General Mills profit climbs 39% in year MINNEAPOLIS - Cost reduction initiatives and the divestiture of the Green Giant business to B&G Foods, Inc. helped drive a 39% increase in full-year earnings at General Mills, Inc. Net income in the year ended May was $1,697.4 million, equal to $2.83 per share on the common stock, up from $1,221.3 million, or $2.02 per share, in fiscal 2014. Sales for the year fell 6% to $16,563.1 million, down from $17,630.3 million a year ago. "We made important progress strengthening our business model and bringing our Consumer First strategy to life in our brands in fiscal 2016," said Ken Powell, chairman Continued on Page 8 KANSAS CITY - With the Kansas wheat harvest nearly two-thirds completed, indications were the crop's average protein will be low this year, perhaps historically low. A low-protein hard red winter wheat crop certainly would not be without precedent, but it will provide challenges to millers and bakers who for the past couple of years engineered fairly smooth transitions to working with primarily new crop supply. Those transitions were eased with Kansas wheat average protein at 12.7% in 2015 and 13.4% in 2014. Millers and bakers were considering the tasks ahead in view of harvest reports in Kansas that suggested record or near-record yields in many sectors of the state. A high-yielding crop, generally reflecting a crop that was not seriously stressed during the growing season, is one that tends to have lower average protein. The U.S. Department of Agriculture on June 10 forecast the average Kansas wheat yield in 2016 at 48 bus per acre. The forecast was up 5 bus per acre from the May projection and up 11 bus per acre from the 2015 average yield at 37 bus per acre. Should the forecast be realized, the 2016 average yield would equal Continued on Page 20 Hershey says it is uninterested in Mondelez International takeover EAST HANOVER, N.J. - Shares of the Hershey Co. surged as much as 21% in trading June 30 in response to news Mondelez International has expressed interest in acquiring the Hershey, Pa., chocolate maker. While Mondelez has not yet commented on its intentions, Hershey confirmed that it had received a "preliminary, nonbinding indication of interest" from Mondelez International to acquire Hershey for $107 a share. Hershey said the proposal, first reported in The Wall Street Journal, suggests Mondelez would pay for Hershey with a mix of cash and stock. "The indication of interest also included other non-monetary considerations," Hershey said. At $107, Mondelez would be paying about $23 billion for the Hershey shares. Including the assumption of debt, the transaction could be worth more than $25 billion. After receiving input from the company Continued on Page 14

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

Milling & Baking News - July 5, 2016
Millers and bakers bracing for bumpy transition to new crop
Hershey says it is uninterested in Mondelez International takeover
Late News - General Mills profit climbs 39% in year
Table of Contents
News Comment - Bountiful blessings for grain-based foods in the U.S.
Editorial - Brexit impacts milling and baking
Late News
Business - Credit Suisse raises General Mills target; upbeat on new president
Flour recall spreads to crackers, pies and graham cracker crumbs
Canadian miller opens new flour and specialty organics mill
Kellogg opens breakfast cereal cafe in New York’s Times Square
Court partly okays Kraft dismissal motion in market manipulation case
Ardent Mills raises $126,000 to benefit Food Bank of the Rockies
Mondelez pleased with progress on global well-being efforts
Bayer, DuPont collaborating on agricultural technology startups
Industry Activities - Nielsen exec explores how bakery can capitalize on deli growth
INTL FCStone event in Chicago to focus on risk management
Data - Hopes high for a better soft red winter wheat crop
International - World Food Prize goes to four crop biofortification pioneers
Nutrition and Health - Study finds rise in intake of whole grains and nuts
Grain Foods Foundation holds investor marketing event in Boston
Food Ingredient Solutions - Promotional opportunities in fortification
Americans need more choline
Millennials, though young, still have vitamin deficiencies
Milling Technology - Consortium makes bread wheat genome available for researchers and breeders
Mühlenchemie GmbH introduces two enzyme systems
People - Jeffrey Harmening promoted to president, c.o.o. at General Mills
Rick Badgley joining Brinker as senior v.p., chief people officer
David Johnson dies at 83; headed Campbell Soup and Entenmann’s
Ulf Mark Schneider to succeed Paul Bulcke as chief executive of Nestle S.A.
Glover, former vice-president of engineering at I.B.C., dies at 91
Education and Research - Researchers find shortcut to better bread loaf volume
Ingredient Market Trends - All-wheat area the smallest since 1970
Ingredient Week
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - July 5, 2016