Milling & Baking News - November 15, 2011 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 15, 2011

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Production estimates for wheat, corn and soybeans reduced by new report
WASHINGTON — U.S. 2011 corn production was forecast at 12,310 million bus, down 123 million bus, or 1%, from 12,433 million bus forecast in October and down 1% from 12,447 million bus in 2010, the U.S. Department of Agriculture said in its Nov. 9 Crop Production report. Soybean production was forecast at 3,046 million bus, down 14 million bus from 3,060 million bus in October and down 9% from 3,329 million bus last year. U.S. 2011 all wheat production was trimmed 9 million bus to 1,999 million bus, as a result of a re-survey in some spring wheat states due to delayed harvest. The U.S.D.A. corn and soybean crop numbers were below the average of prereport trade estimates of 12,402 million bus for corn and 3,059 million bus for

Flour, records and food safety
The Food Safety Modernization Act will affect ﬂour, imported ingredients and documentation
Story on Page 22

LATE NEWS

Flowers earnings ﬁnish ﬂat in quarter
THOMASVILLE, GA. — One-time costs related to the acquisition of Philadelphia-based Tasty Baking Co. had a negative impact on earnings at Flowers Foods, Inc. in the third quarter, as income for the period finished narrowly lower. For the quarter ended Oct. 8, Flowers had income of $31,019,000, equal to 23c per share on the common stock, down from $31,166,000, also equal to 23c per share, in the third quarter of fiscal 2010. Sales for the quarter were $675,369,000, up 13% from $597,894,000 during the same quarter of the previous year. “Flowers Foods achieved strong sales growth in the
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soybeans. There was no pre-report trade estimate for wheat. Based on Nov. 1 conditions, corn yield was forecast at 146.7 bus an acre, down 1.4 bus from 148.1 bus an acre in October and down 6.1 bus from 152.8
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Bimbo closes Sara Lee North American baking acquisition
MEXICO CITY — Grupo Bimbo S.A.B. de C.V. on Nov. 7 announced it has completed its acquisition of the North American Fresh Bakery business of Sara Lee Corp. The closing followed rapidly on the heels of an announcement Bimbo, Sara Lee and the Department of Justice had reached a settlement allowing the deal to move forward (see Milling & Baking News of Nov. 1, Page 1). First announced in November 2010, the transaction was delayed by protracted negotiations with the Justice Department that concluded with an agreement Bimbo would sell brands and related assets in eight markets, half of which are in California. The divestitures reduced the purchase price for the Sara Lee baking business to $709 million from the $959 million originally agreed upon. Sara Lee noted the transaction includes the assumption of debt as well as “all employee-related commitments, including pension obligations.” In announcing the completion of the sale of the North American business Sara Lee said it expects to close the sale of its baking business in Spain and Portugal, also to Grupo Bimbo, by the end of 2011. Grupo Bimbo said the integration of the North American Sara Lee business
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Milling & Baking News - November 15, 2011

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