Milling & Baking News - January 31, 2017 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
JANUARY 31, 2017

bakingbusiness.com / foodbusinessnews.net

HOT CEREAL UPDATE

GRAIN & MILLING MANAGEMENT

Stybel Flour Mills grows with
Israel to become milling leader

I

Hot cereal category
looks to heat up
Segment in need of spark
as innovation slows
Story on Page 28

LATE NEWS

Frozen baked foods pace
Lancaster Colony growth
COLUMBUS, OHIO - Sales of frozen bread and pasta products represented a bright spot for Lancaster
Colony Corp. in the second quarter
ended Dec. 31, 2016. Net income in
the quarter was $38,956,000, equal to
$1.42 per share on the common stock,
up 13% from $34,511,000, or $1.26 per
share, in the same period a year ago.
Net sales were $326,773,000, up 0.6%
from $324,769,000 in October-December 2015. During the second quarter,
retail sales rose 3%, boosted in part by
growth from New York Bakery frozen
garlic bread, Sister Schubert's frozen
dinner rolls, Flatout flatbread and
Reames frozen noodles. Operating
Continued on Page 8

n 1955, Baruch Turgeman was a
23-year-old graduate from technical high school, working in Israel as
an electrician. His career path took an
abrupt turn when his girlfriend's father
offered him a job for a single day.
The offer came from Ze'ev Stybel,
who had established Stybel Flour Mills
20 years earlier.
"It was Labor Day, and Ruth's father
needed some workers," Baruch Turgeman recalled.
In Israel and a number countries at the
time, International Workers' Day was not
an official holiday, but many workers took
the day off. Mr. Stybel had some staffing
gaps to fill to keep his flour mills operating.
"He asked me whether I wanted to work
and make some extra money," Baruch Turgeman said. "I've been here ever since."
Baruch Turgeman married Mr. Stybel's
daughter Ruth, and the couple's three

children also have made a career of flour
milling. A grandson, Omer, is now head
miller of the company's new Ad Halom
flour mill outside the port city of Ashdod. Ad Halom is Israel's largest flour
mill. Over the last 20 years, the Turgeman
family has propelled Stybel to become
the largest milling company in Israel.
A deep commitment both to flour
milling and family are evident in the
Continued on Page 30

Aryzta shares tumble as efforts to
build Otis Spunkmeyer brand stall
ZURICH, SWITZERLAND - Shares of
Aryzta AG tumbled by more than 30%
in over-the-counter trading Jan. 24 after
the company announced a weak financial
outlook, pressured by poor U.S. sales.
Shares of the Switzerland-based
baked foods company traded during the
day as low as $15.37, down 32% from the
previous close of $22.75. By Jan. 26, Aryzta shares had dipped as low as $14.33.

The company projected first-half 2017
earnings per share would fall shy of expectations by 20% with a similar result
for the full year.
According to Bloomberg News, Owen
Killian, chief executive officer, said in a
conference call the strength of Hostess
Brands, Inc. has interfered with Aryzta's
strategy aimed at building Otis Spunkmeyer as a retail snack foods brand.
Cloverhill Bakery was acquired by
Aryzta in March 2014 in order to help
Aryzta develop its Otis Spunkmeyer
business as a retail brand, and Aryzta
said it is investing about €10 million
($10.7 million) per year in this effort.
"The performance in the current period is both unexpected and extremely
Continued on Page 14


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Milling & Baking News - January 31, 2017

Table of Contents for the Digital Edition of Milling & Baking News - January 31, 2017

Milling & Baking News - January 31, 2017
GRAIN & MILLING MANAGEMENT - Stybel Flour Mills grows with Israel to become milling leader
Aryzta shares tumble as efforts to build Otis Spunkmeyer brand stall
LATE NEWS - Frozen baked foods pace Lancaster Colony growth
Table of Contents
NEWS COMMENT - ‘Grain man’ a welcome U.S.D.A. anomaly
Editorial - Now where to go on trade policy
Late News
Export and Trade Issues - Trump order withdraws U.S. from Trans-Pacific Partnership agreement
Food, agriculture groups look to preserve, expand NAFTA gains
Business - H&S Bakery completes expansion of baking plant in Baltimore
Goodman Fielder shuttering three plants as part of baking overhaul
General Mills introduces upscale bread for K-12 school systems
Arca Continental opening third Bokados snacks plant in Mexico
Ardent Mills joining Partners in Food Solutions, focused on Africa
Canyon Bakehouse launches larger gluten-free bread
Five suppliers honored by Bimbo at annual vendor event
Financial Results - Stronger soft pretzel sales boost J&J Snack Foods quarterly profits
Industry Activities - Diabetes expert to join G.F.F. scientific advisory board
Plant geneticist Buckler awarded first N.A.S. food, agriculture prize
Gates grant to Danforth Center to fund sorghum research
International - More funding to Cornell to fight global wheat crop threats
I.G.C. forecasts lower wheat production in 2017-18
People - Brenda Barnes, former Sara Lee chief executive, dies at 63
Former Mars exec to Weston Foods as president; Galen Weston named c.e.o.
Dale Nellor joins NAMA staff as v.p. of government and technical affairs
Frank Velzen, biscuit and cracker veteran, dies at age 89
Food Ingredient Solutions - More routes for whole grain growth
A clue for children: Make whole grain items bright, appealing
Hot Cereal Update - Hot cereal category looks to heat up
Weather Outlook - Squeezing futures market dollars from a large South America crop
Data - C.P.I. in 2016 for grain-based foods declines for first time since 2010
White pan bread price holds steady in December
Education and Research - CRISPR-Cas9 gene-editing is promising for ag sector
Ingredient Market Trends - Trump orders shift direction in trade and immigration
Ingredient Week
Supplier Innovations
Classifieds
Marketplace Business Network
Ad index
Archive
Milling & Baking News - January 31, 2017 - LATE NEWS - Frozen baked foods pace Lancaster Colony growth
Milling & Baking News - January 31, 2017 - 2
Milling & Baking News - January 31, 2017 - 3
Milling & Baking News - January 31, 2017 - NEWS COMMENT - ‘Grain man’ a welcome U.S.D.A. anomaly
Milling & Baking News - January 31, 2017 - 5
Milling & Baking News - January 31, 2017 - 6
Milling & Baking News - January 31, 2017 - Editorial - Now where to go on trade policy
Milling & Baking News - January 31, 2017 - Late News
Milling & Baking News - January 31, 2017 - 9
Milling & Baking News - January 31, 2017 - Food, agriculture groups look to preserve, expand NAFTA gains
Milling & Baking News - January 31, 2017 - General Mills introduces upscale bread for K-12 school systems
Milling & Baking News - January 31, 2017 - Five suppliers honored by Bimbo at annual vendor event
Milling & Baking News - January 31, 2017 - 13
Milling & Baking News - January 31, 2017 - Financial Results - Stronger soft pretzel sales boost J&J Snack Foods quarterly profits
Milling & Baking News - January 31, 2017 - Gates grant to Danforth Center to fund sorghum research
Milling & Baking News - January 31, 2017 - International - More funding to Cornell to fight global wheat crop threats
Milling & Baking News - January 31, 2017 - I.G.C. forecasts lower wheat production in 2017-18
Milling & Baking News - January 31, 2017 - People - Brenda Barnes, former Sara Lee chief executive, dies at 63
Milling & Baking News - January 31, 2017 - 19
Milling & Baking News - January 31, 2017 - Frank Velzen, biscuit and cracker veteran, dies at age 89
Milling & Baking News - January 31, 2017 - 21
Milling & Baking News - January 31, 2017 - 22
Milling & Baking News - January 31, 2017 - Food Ingredient Solutions - More routes for whole grain growth
Milling & Baking News - January 31, 2017 - A clue for children: Make whole grain items bright, appealing
Milling & Baking News - January 31, 2017 - 25
Milling & Baking News - January 31, 2017 - 26
Milling & Baking News - January 31, 2017 - 27
Milling & Baking News - January 31, 2017 - Hot Cereal Update - Hot cereal category looks to heat up
Milling & Baking News - January 31, 2017 - 29
Milling & Baking News - January 31, 2017 - 30
Milling & Baking News - January 31, 2017 - 31
Milling & Baking News - January 31, 2017 - 32
Milling & Baking News - January 31, 2017 - 33
Milling & Baking News - January 31, 2017 - Weather Outlook - Squeezing futures market dollars from a large South America crop
Milling & Baking News - January 31, 2017 - 35
Milling & Baking News - January 31, 2017 - White pan bread price holds steady in December
Milling & Baking News - January 31, 2017 - Education and Research - CRISPR-Cas9 gene-editing is promising for ag sector
Milling & Baking News - January 31, 2017 - 38
Milling & Baking News - January 31, 2017 - Ingredient Market Trends - Trump orders shift direction in trade and immigration
Milling & Baking News - January 31, 2017 - Ingredient Week
Milling & Baking News - January 31, 2017 - 41
Milling & Baking News - January 31, 2017 - 42
Milling & Baking News - January 31, 2017 - 43
Milling & Baking News - January 31, 2017 - 44
Milling & Baking News - January 31, 2017 - 45
Milling & Baking News - January 31, 2017 - 46
Milling & Baking News - January 31, 2017 - 47
Milling & Baking News - January 31, 2017 - 48
Milling & Baking News - January 31, 2017 - Supplier Innovations
Milling & Baking News - January 31, 2017 - Classifieds
Milling & Baking News - January 31, 2017 - Marketplace Business Network
Milling & Baking News - January 31, 2017 - 52
Milling & Baking News - January 31, 2017 - Ad index
Milling & Baking News - January 31, 2017 - Archive
Milling & Baking News - January 31, 2017 - 55
Milling & Baking News - January 31, 2017 - 56
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