Milling & Baking News Corporate Profiles - November 2013 - (Page 10)

Grain-based Foods Grain-based foods Break-up of Hostess reverberates across several categories during 2013 T o view the bread and roll market of 2013 in a positive light, you must first consider conditions in the industry at the same time in 2012. It was a year ago that the overall fresh bread and roll market appeared to be in a near free fall. Unit sales of fresh bread and rolls were down 3.8% in the 52 weeks ended Aug. 2, 2012, according to data from Information Resources, Inc. The decline was unusually wide for a category noted for its stability. Additionally, each of the bread subcategories was in negative territory with fresh bread down 4.8%, buns down 2.6%, bagels down 5.1% and other (including rolls and croissants) down 3.8%. Additionally, the five largest bread bakers each saw significant unit volume declines. Fast forward to 2013, and the aggregate unit volume for bread and rolls was still down, but barely - down 0.45% in the 52 weeks ended Sept. 8. Fresh bread sales were down 1.2%, but other categories eked out gains - buns up 0.1%, bagels up 1.5% and other up 2.1%. Remarkable in the improved trends was the drama of the market shift. With the demise of Hostess Brands, Inc. and the absence from the marketplace of its bread brands for nearly the entire past year, the rest of the baking industry stepped into the void to meet demand. So in contrast to 2012 when every baking company experienced declines in bread sales, nearly every surviving baking company in 2013 saw sales increase. Dollar bread sales by Flowers Foods, Inc. were up 21% in the year ended Sept. 8, according to I.R.I., while Pepperidge Farm, Inc., was up 15%; Lewis Brothers Bakeries, up 25%; United States Bakeries, up 30%; and Aunt Millie's, up 18%. The exception to the uptrend was the nation's largest baking company. Unit sales of Bimbo Bakeries USA declined 4.5% in the year ended Sept. 8. The dramatic sales shifts mirrored dramatic change in the ownership LEADING FRESH LEADING FRESH bread vendors 1 2 3 4 5 6 7 8 9 structure of the U.S. baking industry. Flowers Foods stood front and center in the whirlwind of change. In July, Flowers completed the acquisition of 20 Hostess baking plants and related assets for $355 million. The purchase followed by several months an agreement by Flowers to purchase Sara Lee assets in California from Grupo Bimbo. The latter transaction was part Dollar sales Bimbo Bakeries USA $2,542,583,000 Flowers Foods Bakeries L.L.C. $1,359,354,000 Pepperidge Farm, Inc. $647,048,100 Lewis Bakeries, Inc. $134,907,800 Hostess Brands L.L.C. $132,641,600 United States Bakery $127,254,500 Aunt Millie's Bakeries $118,661,200 Aryzta $114,248,100 Schwebel Baking Co. $82,110,150 Private label $2,095,280,000 Total $8,990,532,000 % change from year ago -1.6% 21.6% 13.8% 25.6% -80.8% 23.9% 18.9% 1.0% 18.8% 3.3% -0.1% bread brands 1 2 3 4 5 6 7 8 9 Nature's Own Brownberry Sara Lee Oroweat Sunbeam Pepperidge Farm Pepperidge Farm Swirl Mrs Baird's Sara Lee Soft & Smooth Private label Total Dollar sales $837,146,300 $396,387,900 $342,734,800 $322,720,300 $207,436,100 $178,180,400 $174,111,900 $134,762,300 $132,096,500 $2,095,280,000 $8,990,532,000 % change from year ago 17.9% 4.6% 6.9% 3.1% 26.6% 25.5% 8.9% -11.6% -11.2% 3.3% -0.1% Data for 52 weeks ended Sept. 8, 2013 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 10 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013