Milling & Baking News - November 3, 2020 - 25

Industry Activities

operations into NAMA? What are the
costs and benefits of that? Today it's
made up of corn millers, wheat millers and oat millers. As we're seeing
an increase in grinding of legumes

and beans and peas, protein grains,
does it make sense to collaborate
with some of those groups you now

year for that Hilton property. I think that was when my father took notice
that I wasn't a college kid anymore and I could actually hold my own in
the business world."
The timing of Mr. Mennel's entrance gave him a good path for learning
the business. He started in 2005 as assistant plant manager at the company's
Dowagiac flour mill. The plant manager also was director of operations for
Mennel Milling and was busy at the time working on the completion of a
new flour mill in Roanoke, Va.
"He was away from that facility a large amount of time, which gave me
the opportunity to come in and learn the business, to learn the milling space
while having a mentor," Mr. Mennel said. "I spent two years in Dowagiac before relocating to Roanoke post construction of the new mill. I was the plant
manager at Roanoke then for four years before relocating back to Fostoria."
To whatever degree the opportunity to run a brand new flour mill holds
appeal, it also brings challenges, Mr. Mennel said.
"Startups of new flour mills are not always an easy process," he said.
"Not all the equipment works the way the manufacturer imagined it. So
there are a lot of bumps in the road as you go through that startup process
and figure out what's working and what is not working, adjusting the belts,
the milling flow. It's a lot of fun, but it's a challenging process."
He said baking customers often require an extensive pre-authorization
period for a new mill, sometimes as long as a year, to ensure flour from the
new mill performs to expectation.
In 2011, Mr. Mennel returned to Fostoria and shared an office with his
father Donald L. Mennel, who was president of the company, succeeding
him two years later. In working with his father, Mr. Mennel followed the
same process that occurred a generation earlier when Donald M. Mennel
handed the reins to his son and retired (to a late-life career in law).
"They shared this office for a period of time so it really gave me a frontrow view of the back-of-the-house operations and how an organization
was run, because I had spent my entire career until that point on the operations side of not only the hotel industry but then the milling industry," he
said. "So, I really didn't have a lot of insider exposure into the administrative side of the business."
During the years he has headed Mennel Milling, the industry has experienced consolidation as well as swings in the profitability of the bulk
flour business, Mr. Mennel said. In an effort to offset the unpredictable
profitability of milling, he said the company has pursued opportunities to
expand into related business areas with greater margin potential.
This expansion has included moves into bakery mix, contract manufacturing, as well as operating distribution centers. The latter business aims
to take advantage of the company's considerable warehouse space and a
location in Findlay, Ohio, that is situated within 500 miles of 50% of the
US population.
Looking forward, he said Mennel remains committed to the flour milling
business but will continue to explore opportunities to "drive some additional margin and grow from our existing customer base to larger branded
food companies."
Within milling, steps Mennel has taken over the last several years include
bakingbusiness.com / world-grain.com

try to grow the association? My goal
as chairman of NAMA is to see that
NAMA continues in perpetuity and
to understand what the future will
bring for NAMA. What do we need
to do to continue to maintain membership numbers and grow membership? Frankly we have not seen a lot
of growth in the association, and the
industry has seen some consolidation. My fear is that we get to a point
where there is so much consolidation that the value of the association
becomes depleted. So that's really a

acquiring Keynes Brothers Inc., a milling company based in Logan, Ohio,
and completing a 10,000-cwt expansion at its Fostoria mill.
Mennel is the eighth largest flour milling company in the United States,
operating six flour mills with combined daily milling capacity of 49,500
cwts. The company mills organic flour at its Bucyrus, Ohio, mill and has
specialty milling operations at Fostoria and Logan. It operates a mix manufacturing plant in Martel, Ohio.
Mr. Mennel said the company is "taking a pause" in its expansion because of the difficult business environment for milling over the last two

MENNEL MILLING CO.

as a trade group longer term. He
echoed and built on recent comments by Ms. DeMarchi about the
need to pursue expanded membership (see related story in Milling &
Baking News of Oct. 20, Page 1).
"One thing Jane and I have talked
a lot about just in the first weeks
she has been on board is NAMA has
kind of stagnated as far as membership is concerned," he said. "We
need to really look at the future of
NAMA. Are there opportunities to
bring other grain milling or milling

Taking a pause in expansion of milling capacity, Mennel Milling earlier
this year launched a $9.5 million modernization project at its Fostoria,
Ohio, facility. The project will include an upgrade of existing rail infrastructure, packaging capabilities as well as warehousing footprint.

years. Business conditions in milling have improved from the low of 2019
but remain worse than the recent peak in 2016-17, he said. Earlier this year
the company launched a modernization project at Fostoria that will expand
its warehouse and enhance its rail infrastructure.
At age 41, Mr. Mennel is among the younger milling industry executives
to serve as NAMA chairman and has less than 15 years' experience in milling. Asked about his seeming comfort in leadership roles even as a young
man, Mr. Mennel said his experience in hotel management served as good
training. He said a key at Mennel and within NAMA is to acknowledge
when you don't know something and that you figure out where to find
needed information.
"Coming into the hotel management when I was 22 years old, I was
managing staff members who were my parents' age or grandparents' ages
in some situations," he said. "So I was in a situation that wasn't uncomfortable to me because I've done it literally since I graduated from college.
It's just a matter of becoming comfortable in your own skin, admitting
if you don't know something and going about and finding the source of
truth. Sometimes I have to ask multiple people to get to a source of truth,
but I have a really tremendous team here." MBN
Milling & Baking News

November 3, 2020 / 25

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

Milling & Baking News - November 3, 2020

Table of Contents for the Digital Edition of Milling & Baking News - November 3, 2020

Milling & Baking News - November 3, 2020 - 1
Milling & Baking News - November 3, 2020 - 1
Milling & Baking News - November 3, 2020 - 2
Milling & Baking News - November 3, 2020 - 3
Milling & Baking News - November 3, 2020 - 4
Milling & Baking News - November 3, 2020 - 5
Milling & Baking News - November 3, 2020 - 6
Milling & Baking News - November 3, 2020 - 7
Milling & Baking News - November 3, 2020 - 8
Milling & Baking News - November 3, 2020 - 9
Milling & Baking News - November 3, 2020 - 10
Milling & Baking News - November 3, 2020 - 11
Milling & Baking News - November 3, 2020 - 12
Milling & Baking News - November 3, 2020 - 13
Milling & Baking News - November 3, 2020 - 14
Milling & Baking News - November 3, 2020 - 15
Milling & Baking News - November 3, 2020 - 16
Milling & Baking News - November 3, 2020 - 17
Milling & Baking News - November 3, 2020 - 18
Milling & Baking News - November 3, 2020 - 19
Milling & Baking News - November 3, 2020 - 20
Milling & Baking News - November 3, 2020 - 21
Milling & Baking News - November 3, 2020 - 22
Milling & Baking News - November 3, 2020 - 23
Milling & Baking News - November 3, 2020 - 24
Milling & Baking News - November 3, 2020 - 25
Milling & Baking News - November 3, 2020 - 26
Milling & Baking News - November 3, 2020 - 27
Milling & Baking News - November 3, 2020 - 28
Milling & Baking News - November 3, 2020 - 29
Milling & Baking News - November 3, 2020 - 30
Milling & Baking News - November 3, 2020 - 31
Milling & Baking News - November 3, 2020 - 32
Milling & Baking News - November 3, 2020 - 33
Milling & Baking News - November 3, 2020 - 34
Milling & Baking News - November 3, 2020 - 35
Milling & Baking News - November 3, 2020 - 36
Milling & Baking News - November 3, 2020 - 37
Milling & Baking News - November 3, 2020 - 38
Milling & Baking News - November 3, 2020 - 39
Milling & Baking News - November 3, 2020 - 40
Milling & Baking News - November 3, 2020 - 41
Milling & Baking News - November 3, 2020 - 42
Milling & Baking News - November 3, 2020 - 43
Milling & Baking News - November 3, 2020 - 44
Milling & Baking News - November 3, 2020 - 45
Milling & Baking News - November 3, 2020 - 46
Milling & Baking News - November 3, 2020 - 47
Milling & Baking News - November 3, 2020 - 48
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