Milling & Baking News - August 19, 2014 - (Page 1)

THE NEWS WEEKLY OF GRAIN-BASED FOODS AUGUST 19, 2014 / FEATURE Flowers snack cake share gains rapidly dissipating; profits down Wheat prices pressured by bearish U.S. and world supply-demand outlooks Story on Page 29 LATE NEWS 'Aggressive' actions cost Cosi in quarter BOSTON - Fast-casual restaurant chain operator Cosi, Inc. sustained a loss of $4,814,000 in the second quarter ended June 30, which compared with a loss of $2,135,000 in the same period a year ago. Exlcuding the impact of one-time costs, the company incurred a loss of $2,711,000 during the quarter. Revenues slipped 12% to $20,670,000 from $23,408,000, reflecting a decline in comparable companyowned restaurant sales and the closing of company-owned and franchise locations during the second quarter. RJ Dourney, president and chief executive officer, said Cosi's management team took "aggressive, corrective Continued on Page 10 THOMASVILLE, GA. - After Hostess Brands, Inc. in November 2012 abruptly halted operations and shipments of all its products, including Twinkies and Hostess Cupcakes, Flowers Foods, Inc. stepped into the void and rapidly raised its share of the snack cake market by 50% over the course of a only few months. When an investment group purchased the Hostess snack cake assets and resumed shipments in July 2013, Flowers was optimistic it would "weather the reintroduction very well." Less than a year later, though, most of the Flowers market share gains have been lost. Double-digit declines in the company's snack cake sales were a significant factor in lower second-quarter sales and earnings at Flowers. Net income at Flowers Foods in the second quarter ended July 12 was $42,064,000, equal to 20c per share on the common stock, down 9% from $46,460,000, or 22c per share, in the second quarter of 2013. Sales were $877,378,000, down 2.3% from $898,153,000. Updating its financial guidance for 2014, the company has significantly reduced its earnings growth forecast for Continued on Page 16 Study suggests Dietary Guidelines misguided in 'refined grains' views WASHINGTON - A concerted effort in the Dietary Guidelines to reduce intake of certain food groups, including enriched grains, may have unintended and undesirable public health consequences for children, according to research published recently in the Journal of the Academy of Nutrition and Dietetics. The 22page study offered a rare look into and strong endorsement of the value of the fortification and enrichment of foods in the American diet. It also affirmed the dominant position of grain-based foods as the leading source of micronutrients in the American diet. "Despite the large nutrient contributions made by fortified foods, they are not always among the foods targeted by recommendations to increase intakes, and sometimes, as in the case of refined grain foods and juice drinks, reduced intakes might even be recommended," the researchers said. The study went on to cite data indicating that yeast bread/ rolls and pizza were among the top five sources of total and added thiamin, niacin, riboflavin, folate and iron for children between the ages of 2 and 18. "There is some overlap between major food sources of micronutrients and Continued on Page 37

Table of Contents for the Digital Edition of Milling & Baking News - August 19, 2014

Milling & Baking News - August 19, 2014
Flowers snack cake share gains rapidly dissipating; profits down
Study suggests Dietary Guidelines misguided in ‘refined grains’ views
Late news - ‘Aggressive’ actions cost Cosi in quarter
Table of Contents
News/Comment - Economy accelerates but bread demand still weak
Editorial - New corn hybrids take wheat area
Late News
Business - Snyder’s-Lance renovating sandwich crackers platform
DuPont Pioneer to build soybean research facility in Delaware
Pepperidge Farm upbeat on buns, sandwich bread
Post Holdings adds to peanut and other nut butter portfolio
Financial Results - J&J Snack partnering with Mondelez, Dunkin’ Donuts
Udi’s gluten-free bread headed into in-store bakery market
Post Holdings grapples with acquisition-related challenges
Cargill earnings fall despite better results from beef business
Data - U.S. 2014 corn, soybean crops expected record high
Education and Research - W.F.C. hosts second Wheat Safari, in North Dakota
Merchandising - Bimbo to award new school playground as part of contest
Pillsbury adds artisan bread mixes
People - CHS to align ag business and enterprise strategy under new leader
GrainCorp appoints Palmquist its new managing director, c.e.o.
Grain Market Roundtable - Wheat prices pressured by bearish U.S. and world supply-demand outlooks
Analysts expect record corn crop to get bigger
‘Soybeans for everyone’ portend lower prices
Regulatory Affairs - What’s new?
Nutrition and Health - Bakers seeking five years to comply with labeling changes
Quaker settles trans fat labeling suit dating back three years
Supplier Innovations
Ingredient Market Trends - World wheat production forecast to set new record
Ingredient Week
Marketplace Business Network
Ad Index

Milling & Baking News - August 19, 2014