Milling & Baking News - July 19, 2005 - 11

B U S I N E S S

Flowers Foods in move to acquire
bankrupt Royal Cake Co.
THOMASVILLE, GA. - Flowers Foods
Inc. reached agreement July 6 to acquire
Royal Cake Co., a Winston-Salem, N.C.based bakery currently operating in
Chapter 11 bankruptcy. Financial terms
of the transaction, which remains subject
to approval by the bankruptcy court,
were not disclosed.
Royal Cake filed for bankruptcy in
February, citing the effects of increased
fuel and ingredient costs and failed restructuring efforts. The company posted
sales of $24 million in 2004.
"Due to increased demand for our

snack cake products, we need additional
production capacity and Royal is a fine
bakery," said George E. Deese, president
and chief executive officer of Flowers
Foods. "If our contract is approved by
the bankruptcy court, Royal will be a
welcome addition to our snack cake
operation."
Founded in 1926 by G.G. Welch, Royal
Cake Co. began as a manufacturer of
creme-filled oatmeal cookies and fig
bars. By the 1950s, additional Royal
products were being distributed in every
state east of the Mississippi river. In the

early 1970s, Mr. Welch stepped down
as president and turned the operations
over to his son, John Welch. While
under John Welch's leadership, Royal's
sales expanded to the West coast and
various foreign countries.
Royal now produces and distributes
more than 25 different varieties of
snacks under a range of private and
branded labels, including the Royal
label and the company's own private
label, Bakers Best. With its own fleet of
trucks, Royal delivers its products to the
continental United States, exporting to
Canada and Mexico. Royal products are
available in grocery, discount, dollar and
convenience stores, as well as vending
machines and office snack trays. MBN

Group that includes Cargill to
construct three ethanol plants

CARGILL AGHORIZONS

said Steve Durham, chairman of AS Alliances Holdings.
Dan Dye, president of Cargill AgHorizons, said the plants will provide another
DALLAS - Demeter Enterprises, L.L.C. provide risk management services, trans- important outlet for the company's produchas announced plans to begin construction portation logistics expertise and the mar- er customers. "As the nation's third-largest
this summer on three large-scale
ethanol producer, we are commitethanol production facilities. The
ted to investing in the production
plants will be located in Linden,
of renewable energy today and
Ind.; Albion, Neb.; and Bloomingbeyond," he said.
burg, Ohio, pending approval of
Demeter said locations for the
various boards and authorities.
plants had been selected because
If approved, each plant will proof their access to a significant
duce 100 million gallons of ethanol
corn supply and transportation
and 315,000 tons of dried distillers
- highway/rail. Access to ethagrain annually. The plants will cost
nol and distiller grain markets
about $125 million apiece to build
also was a factor.
and will source corn from Cargill
AS Alliances is owned by
AgHorizons grain elevators adjaAmerican Strategic Alliances,
cent to each ethanol plant.
L.L.C., a merchant banking firm
Cargill, Inc. is an owner of Defocused primarily on the "cremeter, together with AS Alliances
ation and execution of cross-borAn aerial view of the Cargill AgHorizons grain elevator at
Holdings, L.L.C., and Fagen, Inc.
der strategic projects for our partBloomingburg, Ohio, one of three sites where Demeter is
Demeter was formed late in 2004.
ners in the United States, Mexico
planning to build new ethanol plants.
According to Demeter, AS Alliand Canada."
ances will provide project develFagen is a design, engineering
opment, finance, capital markets, executive keting of the ethanol and D.D.G. products. and construction business that has demanagement and corporate development
"We have solid backing for this enter- signed and built more than half the ethaexpertise. Fagen will provide design, en- prise, having pulled together some of the nol plants in the United States. In the last
gineering and construction expertise.In largest and most respected companies in five years, Fagen has built more than two
addition to corn origination, Cargill will the ethanol and agribusiness industries," thirds of the new U.S. ethanol plants. MBN

Bremner to open cookie manufacturing
plant in South Beloit, Ill., this fall
ST. LOUIS - Bremner, Inc. announced last
week plans to begin operations this fall at
its South Beloit, Ill., facility. The South Beloit
plant, which was purchased in February
from Bake-Line Group, L.L.C., had been
idled since Bake-Line filed for Chapter 7
bankruptcy in January 2004. At the time
of the closing, Bake-Line produced cookies
and snack foods.
Bremner said the new manufacturing facil12 / Milling & Baking News, July 19, 2005

ity will produce a variety of cookie products.
Company representatives have been
working with Sue Mroz, Winnebago county
regional planning and development director,
and Randy Kirchkow, mayor of South Beloit,
to secure economic assistance with the startup of the plant. Winnebago county recently
announced the approval of tax abatements
for five years. The company continues to
work with these individuals to secure addi-

tional assistance for the plant start-up.
Bremner anticipates employing approximately 50 employees at the plant. Employment levels have the potential to reach 200.
Phase I production is scheduled to begin
this fall.
Bremner, Inc. is a subsidiary of Ralcorp
Holdings, Inc. Bremner produces private label crackers and cookies for sale in the United
States. Bremner also produces a variety of
crackers and cookies through its facilities
located at Ripon, Wis.; Clearfield and Ogden,
Utah; Kent, Wash.; Minneapolis; Poteau,
Okla.; Princeton, Ky.; and Tonawanda, N.Y. MBN
bakingbusiness.com / world-grain.com

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

Milling & Baking News - July 19, 2005

Table of Contents for the Digital Edition of Milling & Baking News - July 19, 2005