Milling & Baking News - February 9, 2021 - 10

Business

European Commission investigating
several Mondelez trade practices
BRUSSELS - The European Commission
on Jan. 28 announced it has opened a formal antitrust investigation into Chicagobased Mondelez International, Inc. for
potential cross-border trade restrictions on
chocolate, biscuits and coffee products.
" Chocolates, biscuits and coffee are
products consumed by European citizens
daily, " said Margrethe Vestager, executive vice president in charge of competition policy at the EC. " We are opening a
formal investigation to see whether Mondelez, a key producer of these products,
might have restricted free competition in
the markets concerned by implementing
various practices hindering trade flows,
ultimately leading to higher prices for
consumers. Trade in the internal market
can lower prices and increase the variety
of products offered across member states. "
In its Jan. 28 notice, the EC indicated the
market for chocolate, biscuits and coffee in
the EU is worth " tens of billions of euros every year. " Concern has arisen that Mondelez
may have restricted the so-called " parallel
trade " of its chocolates, biscuits and coffee

between EU member states through agreements and unilateral practices.
Specifically, the EC said traders and retailers try to procure products in the internal market where the prices are lower and

MONDELEZ

trade them to markets where prices are
higher, a practice that may lead to price decreases in countries where prices are higher.
In the case of Mondelez, the EC said it will
investigate certain potentially anti-competitive practices by Mondelez, including:
* Possible limitations of the sales territories within the EU through agreements that determine in which member state a trader can or cannot sell the
products, or that restrict passive sales;

Weston Foods completes number of
baking capital expenditure projects
ETOBICOKE, ONT. - Weston Foods
has invested approximately C$25 million ($19.4 million) to add new capabilities and improve productivity in its
bakery network.
" As we continue to add capacity and
new capabilities to our network, we are
always looking to enhance the taste and
experience of our baked goods, while
simultaneously further improving our
ability to provide the consistency our
customers rely on us for, " said Luc Mongeau, president of Weston Foods. " These

investments deliver on all fronts. "
The investment included the installation last fall of a new pressed tortilla line
at the company's 82,000-square-foot bread
and rolls baking plant in Calgary, Alta. The
new high-speed line produces traditional
pressed flour tortillas in a variety of sizes
and includes a number of vision systems
that ensure consistent shape, color and
size, according to Weston. Weston, which
makes Casa Mendosa and Wonder tortillas as well as many other private label and
foodservice brands, said tortillas are one of

Bimbo Bakeries USA introduces
direct-to-consumer website
HORSHAM, PA. - Bimbo Bakeries USA
(BBU), a subsidiary of Grupo Bimbo SAB
de CV, has launched SweetSnacking.com,
a new direct-to-consumer service that allows consumers to have their favorite BBU
brands shipped directly to their homes.
According to BBU, the coronavirus pandemic has created demand for
products that may be shipped directly
to consumers. SweetSnacking.com will
seek to fill that need.
10 / February 9, 2021

Milling & Baking News

" SweetSnacking.com presents no
shortage of snacking options, " said
Omar Haque, vice president of e-commerce at BBU. " Whether you prefer
sweet, salty or a combination of both, we
offer carefully curated, delicious options
for the entire family. "
BBU's new service allows consumers to
select from 10 pre-made boxes that offer
a varied combination of the company's
brands, including Entenmann's, Sara Lee,

* Possible curtailing of parallel trade
through agreements that raise prices or limit volumes specifically for customers that
trade the products across member states;
* Possible agreements with customers not to engage in parallel trade or not
to procure products from parallel trade,
inter alia, in exchange for payments or
other forms of compensation;
* Possible restrictions on the languages
used on packaging either unilaterally or
through agreements with traders, thereby
creating friction on sales to certain other
EU member states;
* Possibly refusing to supply certain
traders with a view to restricting imports
into certain markets.
The EC said that if violations are proven, Mondelez would be in breach of EU
antitrust rules.
There is no legal deadline for bringing
an antitrust investigation to an end. The
duration of an investigation depends on
a number of factors, including the complexity of the case, the cooperation of the
undertaking with the Commission and
the exercise of the rights of defense.
Mondelez has said that it " will work
constructively with the European Commission as it conducts its review. " MBN
the fastest growing bakery segments.
Weston also has upgraded one of the
three cupcake lines at its 48,500-squarefoot Manchester, NH-based cupcake baking plant. The line, which originally was
installed in 2013, now runs 30% faster
with improved accuracy and less waste,
the company said.
Lastly, Weston said it has added a new
mini ice cream cone production line at its
novelty ice cream cone facility in Green
Bay, Wis. The new high-speed line is capable of producing 60-millimeter mini
sugar cones in a variety of flavors and
features a new oven for forming and baking as well as a new packaging area for
smaller cones. MBN
Thomas' and Takis. Deliveries, which are
shipped for free, are made directly to consumers' homes for ease and convenience,
BBU said.
" We know that our consumers can buy
from multiple sources, but with everything
that has happened since the beginning of
the pandemic, we wanted to take the pressure off any way we could, " Mr. Haque
said. " This option ensures that everyone
can enjoy the same snacks they've known
and loved while remaining safe inside. "
Delivery is currently available to select ZIP codes. More information may be
found at SweetSnacking.com. MBN
bakingbusiness.com / world-grain.com

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

Milling & Baking News - February 9, 2021

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