Milling & Baking News - August 15, 2017 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
AUGUST 15, 2017

bakingbusiness.com / foodbusinessnews.net

GRAIN MARKET ROUNDTABLE

Analysts discuss
approaches to covering
flour in 2017-18
Story on Page 20

LATE NEWS

Corn outturn down
7%, soybeans up 2%
WASHINGTON - In its Aug. 10 Crop
Production report, the U.S. Department
of Agriculture forecast 2017 outturn of
corn at 14,153 million bus, down 7%
from 2016, and production of soybeans
at a record 4,381 million bus, up 2%.
All wheat production was estimated
at 1,739 million bus, down 1% from
the July forecast and down 25% from
2016, including winter wheat at 1,287
million bus, up 1% from July but down
23% from 2016; durum at 51 million
bus, down 12% from July and down
51% from 2016; and spring wheat
other than durum at 402 million bus,
down 5% from July and down 25%
from 2016. The U.S.D.A. estimates
Continued on Page 8

Flowers quarterly results undercut
by Warehouse segment slide
THOMASVILLE, GA. - A 10% volume
drop in the Warehouse Delivery segment
of Flowers Foods, Inc. pushed sales and
earnings downward in the company's
second quarter ended July 15.
In connection with the quarterly results, Flowers revised downward its financial guidance for 2017. The company
also offered an update on its Operation
Centennial restructuring program.
Flowers net income in the second
quarter was $44,740,000, or 21c per share
on the common stock, down 13% from
$51,155,000, or 24c per share, in the second
quarter of 2016. Sales were $926,639,000,
down 0.9% from $935,025,000.
Adjusted net income was down 8%.
"We continue to take decisive action to
focus on the consumer and become a more
efficient, streamlined organization," said
Allen L. Shiver, Flowers Foods president
and chief executive officer. "Our portfolio
of bread brands, bolstered by the strength
of Dave's Killer Bread (D.K.B.), continues to gain market share and improve
our competitive position. In our cake

business, we are taking action to address
share losses and improve profitability."
Results of the Flowers' Direct-StoreDelivery segment were nearly flat in the
second quarter. Earnings before interest
and taxes were $79,564,000 in the second
quarter, down 0.7% from $80,135,000 in
the second quarter of 2016. Sales were
$792,892,000, up 1.3% from $785,767,000.
Year-to-date EBIT in the segment was
Continued on Page 12

'Complete retrofit' planned for
ADM Milling Oklahoma mill
OVERLAND PARK, KAS. - ADM
Milling Co. has announced a major
modernization of its Enid, Okla., flour
mill. The project will replace the two
milling units currently operating with
a single, highly automated milling unit.
"The Enid flour mill has served as an
important hub for the region's wheat
harvest for many decades, and upgrades to the facility will provide even

better service to our customers in the
future," said Mark Kolkhorst, president
of ADM Milling.
According to the 2017 Grain & Milling
Annual published by Sosland Publishing
Co., ADM's mill at Enid has daily flour
production capacity of 18,000 cwts. The
mill produces bulk flour and 5-lb bags.
While the company did not announce
what milling capacity will be at Enid
when the project is completed, Mr.
Kolkhorst indicated that the mill will
be enlarged. He said the new "state-ofthe-art unit" when completed "will efficiently meet existing customer needs
and provide capacity to reach out to
new customers."
Speaking with Milling & Baking News
Continued on Page 11


http://www.bakingbusiness.com http://www.foodbusinessnews.net

Table of Contents for the Digital Edition of Milling & Baking News - August 15, 2017

Milling & Baking News - August 15, 2017
FINANCIAL RESULTS -- Flowers quarterly results undercut by Warehouse segment slide
BUSINESS -- 'Complete retrofit’ planned for ADM Milling Oklahoma mill
LATE NEWS -- Corn outturn down 7%, soybeans up 2%
CONTENTS
NEWS COMMENT -- Dose of reality in grain-based foods shares weakness
EDITORIAL -- Much to lose in upcoming NAFTA talks
LATE NEWS -- Ingredient/flavor unit drives Kerry growth
LATE NEWS -- Amplify c.e.o. sees R.-T.-E. popcorn rebound
LATE NEWS -- 2018 carryover of wheat and corn cut
LATE NWES -- More Applebee’s, IHOP restaurants to close
BUSINESS -- Flowers slates North Carolina sweet goods plant for closing
BUSINESS -- Growers seen as better situated to weather depressed returns
BUSINESS -- Alpha Baking doubling its fleet of electric delivery trucks
BUSINESS -- Western Foods opening new gluten-free, ancient grain milling facility
FINANCIAL RESULTS -- Duncan Hines’ sales grow by double-digits in second quarter
FINANCIAL RESULTS -- Snyder’s-Lance sees s.k.u. reduction as key part of transformation plan
FINANCIAL RESULTS -- Grain, corn processing divisions boost ADM adjusted earnings
FINANCIAL RESULTS -- Kellogg Co. moving to ‘reassert’ health and wellness leadership
FINANCIAL RESULTS -- Hostess Brands market share hits new recent peak in second quarter
GRAIN MARKET ROUNDTABLE -- Analysts discuss approaches to covering fl our in 2017-18
PEOPLE -- Foraker to step down from Annie’s unit at General Mills
PEOPLE -- T.J. Lynn named general counsel at MGP Ingredients
TRANSPORTATION -- Grain-based foods seeks solutions for CSX service problems
WEATHER OUTLOOK -- U.S. Midwest cool temperatures slow corn, soybean crop stress
DATA -- Second-quarter flour output up 0.6%; daily capacity near record
DATA -- Whole wheat fl our production up 3% in second quarter of 2017
INGREDIENT MARKET TRENDS -- 2017 spring wheat harvest takes center stage
INGREDIENT WEEK
SUPPLIER INNOVATIONS
CLASSIFIEDS
MARKETPLACE BUSINESS NETWORK
AD INDEX
ARCHIVE
Milling & Baking News - August 15, 2017 - LATE NEWS -- Corn outturn down 7%, soybeans up 2%
Milling & Baking News - August 15, 2017 - 2
Milling & Baking News - August 15, 2017 - 3
Milling & Baking News - August 15, 2017 - NEWS COMMENT -- Dose of reality in grain-based foods shares weakness
Milling & Baking News - August 15, 2017 - 5
Milling & Baking News - August 15, 2017 - 6
Milling & Baking News - August 15, 2017 - EDITORIAL -- Much to lose in upcoming NAFTA talks
Milling & Baking News - August 15, 2017 - LATE NWES -- More Applebee’s, IHOP restaurants to close
Milling & Baking News - August 15, 2017 - 9
Milling & Baking News - August 15, 2017 - BUSINESS -- Alpha Baking doubling its fleet of electric delivery trucks
Milling & Baking News - August 15, 2017 - BUSINESS -- Western Foods opening new gluten-free, ancient grain milling facility
Milling & Baking News - August 15, 2017 - FINANCIAL RESULTS -- Duncan Hines’ sales grow by double-digits in second quarter
Milling & Baking News - August 15, 2017 - 13
Milling & Baking News - August 15, 2017 - FINANCIAL RESULTS -- Snyder’s-Lance sees s.k.u. reduction as key part of transformation plan
Milling & Baking News - August 15, 2017 - 15
Milling & Baking News - August 15, 2017 - FINANCIAL RESULTS -- Grain, corn processing divisions boost ADM adjusted earnings
Milling & Baking News - August 15, 2017 - FINANCIAL RESULTS -- Kellogg Co. moving to ‘reassert’ health and wellness leadership
Milling & Baking News - August 15, 2017 - FINANCIAL RESULTS -- Hostess Brands market share hits new recent peak in second quarter
Milling & Baking News - August 15, 2017 - 19
Milling & Baking News - August 15, 2017 - GRAIN MARKET ROUNDTABLE -- Analysts discuss approaches to covering fl our in 2017-18
Milling & Baking News - August 15, 2017 - 21
Milling & Baking News - August 15, 2017 - 22
Milling & Baking News - August 15, 2017 - PEOPLE -- T.J. Lynn named general counsel at MGP Ingredients
Milling & Baking News - August 15, 2017 - TRANSPORTATION -- Grain-based foods seeks solutions for CSX service problems
Milling & Baking News - August 15, 2017 - 25
Milling & Baking News - August 15, 2017 - WEATHER OUTLOOK -- U.S. Midwest cool temperatures slow corn, soybean crop stress
Milling & Baking News - August 15, 2017 - 27
Milling & Baking News - August 15, 2017 - DATA -- Second-quarter flour output up 0.6%; daily capacity near record
Milling & Baking News - August 15, 2017 - 29
Milling & Baking News - August 15, 2017 - DATA -- Whole wheat fl our production up 3% in second quarter of 2017
Milling & Baking News - August 15, 2017 - INGREDIENT MARKET TRENDS -- 2017 spring wheat harvest takes center stage
Milling & Baking News - August 15, 2017 - INGREDIENT WEEK
Milling & Baking News - August 15, 2017 - 33
Milling & Baking News - August 15, 2017 - 34
Milling & Baking News - August 15, 2017 - 35
Milling & Baking News - August 15, 2017 - 36
Milling & Baking News - August 15, 2017 - 37
Milling & Baking News - August 15, 2017 - 38
Milling & Baking News - August 15, 2017 - 39
Milling & Baking News - August 15, 2017 - 40
Milling & Baking News - August 15, 2017 - SUPPLIER INNOVATIONS
Milling & Baking News - August 15, 2017 - CLASSIFIEDS
Milling & Baking News - August 15, 2017 - MARKETPLACE BUSINESS NETWORK
Milling & Baking News - August 15, 2017 - 44
Milling & Baking News - August 15, 2017 - AD INDEX
Milling & Baking News - August 15, 2017 - ARCHIVE
Milling & Baking News - August 15, 2017 - 47
Milling & Baking News - August 15, 2017 - 48
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