Milling & Baking News - October 9, 2018 - 11

Business

ReGrained receives financing to
build baking ingredient business
SAN FRANCISCO - ReGrained,
which markets spent brewers' grains
as a baking ingredient, on Sept.
25 announced it has closed a $2.5
million Series Seed financing led
by Griffith Foods with additional
participation from Barilla Group's
BLU1877 and Telluric Foods. The
funds are expected to be used to help
ReGrained scale its proprietary processing technology and commercialize its ingredient business.
ReGrained began as a fraternity
house homebrewing experiment
several years ago at the University of
California, Los Angeles, where Daniel Kurzrock, chief executive officer,
and his longtime friend, co-founder
and chief operating officer Jordan
Schwartz, studied economics.
"We started making beer every
week, and we realized every time we
made a batch of beer, it also felt like
we were making a batch of food and
then throwing it out," Mr. Kurzrock
recalled in an interview with Milling & Baking News earlier this year.
"You're taking grain and much like
oatmeal you're adding hot water
to it and letting that soak, and then

you're draining that liquid out."
The remaining grain often was
tossed in a dumpster, until Mr. Kurzrock discovered a bread recipe featuring the byproduct.
"It wasn't the best bread in the
world, but it was good, and it was

REGRAINED

fresh," he said. "We started selling
the loaves of bread to friends in order to fund the beermaking."
This inspired Mr. Kurzrock to develop a new business model, a combined brewery and bakery. He persuaded Mr. Schwartz to join him in
the venture.
Now, ReGrained upcycles millions

of tons of high-protein, high-fiber
grain generated by the brewing industry into a product called SuperGrain. ReGrained describes SuperGrain as a "versatile ingredient that
performs flawlessly in all commercial
applications from savory to sweet,
producing delicious, nutritious and
highly functional foods."
The company's products include a
line of snack bars.
Mr. Kurzrock said lead financer
Griffith Foods shares many of ReGrained's values. Alsip, Ill.-based
Griffith Foods is a family-owned
global developer and manufacturer
of customized food ingredients. The
company provides a range of seasonings, sauces, breadings and food
safety solutions. The company has a
presence in more than 30 countries
and 6 continents.
"The strategic partnership between Griffith Foods and ReGrained
offers an opportunity to work together and find new ways to nourish
the world," said Brian Griffith, executive chairman of Griffith Foods.
"The world's population is estimated to reach almost 10 billion by
2050. It is imperative for food companies to create innovative solutions
that safely and sustainably feed our
growing communities." MBN

Financial Results

Cargill earnings about even with
strong year-ago quarter
MINNEAPOLIS - The Origination &
Processing segment was the only one
of four Cargill business segments to
post an increase in adjusted operating earnings in the first quarter ended
Aug. 31 when compared to last year's
strong first quarter.
Adjusted operating earnings of $883
million companywide were down
0.6% from $888 million in the previous year's first quarter. Net earnings
rose 5% to $1,020 million from $973
million, and net revenues also climbed
5%, to $28.7 billion.
Earnings in Origination & Processing were up appreciably from last
year's weak first quarter in that segment.
"Global demand was strong and
markets volatile as weather events
in key crop-growing regions and rising economic uncertainty brought the
bakingbusiness.com / world-grain.com

segment's sourcing, trading, analytical and logistical skills to the fore,"
Minneapolis-based Cargill said when
giving results Sept. 27.
Solid oilseed processing results in
canola, soybeans and biodiesel were

realized in North America and Europe.
In the Food Ingredients & Applications segment, earnings were slightly
lower when compared to last year's
strong first quarter. Cocoa, chocolate,
edible oils and malt posted gains.
Earnings in starches, sweeteners and
texturizers were affected negatively
in North America by lower ethanol

prices and trading results and in emerging markets by currency devaluations.
Adjusted operating earnings in Animal Nutrition & Protein also came in
below last year's strong quarter. North
American protein performed well. Demand remained strong for domestic
and international beef and for valueadded egg products used in food service. Excess supply weighed down the
U.S. turkey meat market. Earnings in
animal nutrition lagged the earnings
of the previous year's quarter because
of higher input costs, lower sales volumes and pricing pressures in different countries.
Results in Industrial & Financial
Services trailed the results of the previous year's first quarter because of
lower returns from Cargill's asset
management activities. A good performance came from trade finance and
commodity risk management, where
teams helped Cargill customers steer
through volatility that returned to the
global commodities market. MBN
Milling & Baking News

October 9, 2018 / 11

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - October 9, 2018

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