Milling & Baking News - November 29, 2011 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS NOVEMBER 29, 2011

bakingbusiness.com / foodbusinessnews.net

NEWS

Kind words from food industry gadﬂy
NEW YORK — Michael Pollan, the outspoken and influential critic of modern food production, had generous words for bread in a recent profile in The Wall Street Journal. In an “In My Kitchen” column in the Nov. 19-20 weekend edition of the Journal, Mr. Pollan, author of “The Omnivore’s Dilemma,” offered a number of insights into what and how he eats at home. “I could live on bread the rest of my life,” Mr. Pollan said in perhaps his most direct endorsement of any single food. He also identified “Tartine Bread” by Chad Robertson atop his list of favorite cookbooks and described a hand-crank pasta maker as a “great gift” from his wife. “Usually those things end up on a shelf, but we actually use it,” he said. “I mostly make fettuccine.” MBN

Ample supplies and economic woes pressure wheat prices
KANSAS CITY — Ample world and U.S. wheat stocks, the possibility of even larger supplies in the coming year and concerns about ailing economies, particularly Europe and the United States, weighed on U.S. and world wheat prices and may continue to do so in the next several weeks or even months, according to analysts interviewed by Milling & Baking News. March 2012 wheat futures prices have dropped by about $2.40 a bu in Kansas City, $2.35 in Chicago and $1.22 in Minneapolis from their lateAugust highs as forecasts of world wheat production climbed steadily and strongly higher and equity prices tumbled in response to world economic woes. With the U.S. winter wheat crop entering dormancy, it was thought only unexpected weather problems

in the Southern Hemisphere, where the Australian and Argentine wheat harvests were under way, or a broad expansion in demand for wheat or corn, such as heavy China corn buying, could
Continued on Page 18

LATE NEWS

CHS to acquire Solbar for $133 million
ST. PAUL, MINN. — CHS, Inc. has signed an agreement to acquire Solbar Industries Ltd. for $133 million. Headquartered in Ashdod, Israel, Solbar provides soy protein ingredients to manufacturers in the meat, vegetarian, beverage, bars and crisps, confectionery, bakery and pharmaceutical industries. “I believe that this change will prove to be a very important milestone in Solbar’s history,” said Shaul Shelach, chief executive officer of Solbar. “I am
Continued on Page 8

Amid long-term optimism, Flowers grapples with near-term challenges
THOMASVILLE, GA. — While confident the recent major acquisition by Grupo Bimbo S.A.B. de C.V. would benefit the entire baking industry in the longer term, executives at Flowers Foods, Inc. are highly concerned about near-term uncertainties in ingredient markets. As a result of input cost uncertainties, the company has deferred issuing earnings guidance for 2012. Baking industry consolidation, ingredient market volatility and the company’s earnings outlook were three of a range of issues discussed by top Flowers’ executives in a Nov. 10 conference call. As previously reported, Flowers Foods net income in the third quarter ended Oct. 8 was $31,019,000, equal to 23c per share on the common stock, down narrowly 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. On the negative side, the executives noted weakness in the company’s warehouse business and sales of white bread as well as describing steps to improve these markets. On the positive side, they said sales of the company’s
Continued on Page 13

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Milling & Baking News - November 29, 2011

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