Milling & Baking News - November 30, 2010 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
NOVEMBER 30, 2010

bakingbusiness.com / foodbusinessnews.net

BARS UPDATE

Grain Market Roundtable

Buyers brace for volatile markets
and perhaps higher prices

Back in business
Bar companies bouncing back behind
new products
Story on Page 30

LATE NEWS

Kris Lutt named head
of ADM Milling
OVERLAND PARK, KAS. - Kris
Lutt has been named president of
ADM Milling Co., effective Dec. 1.
Mr. Lutt succeeds Mark Kolkhorst,
who has been promoted to vicepresident of Milling and Cocoa at
Archer Daniels Midland Co. Mr.
Lutt joined Decatur, Ill.-based ADM
in 2002 with the acquisition of Minnesota Corn Processors. In the years
since, Mr. Lutt has served as general
manager of specialty feed ingredients
in the ADM Corn business as well as
vice-president of corn processing. He
was named adviser to the office of
the chairman in 2009. Mr. Lutt holds
a bachelor's degree in biochemistry
Continued on Page 8

KANSAS CITY - Expect no relief
from market volatility and brace for
the possibility of
higher
ingredient
prices in the next
several months and
perhaps all of 2011,
according to market
analysts and food
industry executives
interviewed by Milling & Baking News.
The recent wide declines in agricultural
futures markets should be viewed as
an opportunity to extend coverage
through the first quarter of 2011 or
even beyond in principal ingredient
markets such as flour, corn products
and soybean oil, they said.

Paul Meyers, vice-president, commodity analysis, Connell & Co.,
Berkeley Heights,
N.J., provided an
overview of three
likely market movers in the next few
months.
"First, U.S. and
world corn demand/supply fundamentals are much
more bullish than
they've been in 15
years," Mr. Meyers said. "The U.S.
Department of Agriculture has forecast the lowest corn stocks-to-use
ratio in 15 years, the second lowest
in at least 60 years. So, we have an
Continued on Page 19

Sara Lee deal seen as key step in
Bimbo's journey in U.S. baking
KANSAS CITY - To Gary J. Prince,
businesses are "journeys in time" requiring the willingness as well as the ability
to adapt to sometimes dramatic change
and daunting challenges. In his position
as president of Bimbo Bakeries USA,
Mr. Prince regards the acquisition of the
North American Fresh Bakery business
of Sara Lee Corp. as a crucially important step toward achieving success in
today's difficult environment.
Mr. Prince spoke with Milling & Baking

News days after Grupo Bimbo S.A.B. de
C.V. announced on Nov. 9 an agreement
to buy the Sara Lee baking business for
$959 million. While subject to regulatory
review, Bimbo and Sara Lee said they
expect the transaction to be closed in the
first half of 2011.
The acquisition, which would make
B.B.U. the nation's largest baking company, would be culmination of a journey for Bimbo that has been remarkably
fast by the standards of the U.S. baking
industry. As recently as 1997, Grupo
Bimbo had no presence in the U.S. baking market other than its ownership of
La Hacienda, a California-based tortilla
company acquired in 1994 and its distribution of Bimbo and Marinela branded
products in niche markets. Bimbo Bakeries USA was established in 1997 with
Continued on Page 11

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Milling & Baking News - November 30, 2010

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