Milling & Baking News - May 29, 2012 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS MAY 29, 2012

bakingbusiness.com / foodbusinessnews.net

INGREDIENTS UPDATE

Judge allows Hostess motion to reject certain union contracts, denies other
WHITE PLAINS, N.Y. — Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York this month denied a request by Hostess Brands, Inc. to allow it to reject the Irving, Texas-based company’s contract with its biggest union, the Teamsters. The news came a week after Judge Drain said Hostess could reject agreements with its second biggest union, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM). Still awaited is the decision on the fate of 67 collective bargaining agreements with 10 smaller unions that represent 1,165 Hostess employees. Hostess has said that it plans “to continue bargaining in good faith with our unions regardless of the court’s decision, and we intend to stay on that path.” According to Dow Jones, Judge Drain’s oral decision on May 14 to deny the request boiled down to a few issues, including a 1% difference between the pre-tax earnings projected under the company’s proposal and compared to the union’s proposal, and Hostess’ intention to shift only existing employees into more stable multiemployer pension plans. Judge Drain said he wanted new hires to be included in the pension plans, and he also urged Hostess to increase its proposed contributions to the pension plans to a level
Continued on Page 12

Old standby ﬁber steps up in new product development
Story on Page 38

LATE NEWS

General Mills to buy Brazilian food company
MINNEAPOLIS — General Mills, Inc. has signed an agreement to acquire Yoki Alimentos S.A., a privately-held food company headquartered in Sao Bernardo do Campo, Brazil. The transaction, which comes less than two weeks after General Mills acquired the ready-to-cook spice and sauce mix product line produced by Parampara Foods, Maharashtra, India, is expected to close during the ﬁrst half of its 2013 ﬁscal year. Founded in 1960, Yoki is a family-owned Brazilian company whose Yoki and Kitano branded products hold leading market positions in several food
Continued on Page 8

Signature Interview: Purchasing Executive

With market volatility up, Marcucci monitors purchasing more closely
ver the past few years, attendance at the Sosland Publishing Co. Purchasing Seminar has broadened among baking companies to include not only purchasing executives, but other members of top management, including growing numbers of chief executive ofﬁcers, chief ﬁnancial ofﬁcers and chief operating ofﬁcers. An understanding why the titles of those in attendance has diversiﬁed may be gained in the evolving role in purchasing

over the last 20 years of Lawrence L. Marcucci, president of Alpha Baking Co., Chicago. After largely turning over responsibility in the 1990s to William E. Harp, director of purchasing at Alpha, Mr. Marcucci’s role in purchasing at Alpha Baking has expanded again over the last several years, or since ingredient markets abruptly turned more volatile. “With the market swings, I was doing some second guessing,” Mr. Marcucci
Continued on Page 30

Marking nine decades in partnership with grain-based foods

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Milling & Baking News - May 29, 2012

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