Milling & Baking News - September 17, 2013 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
SEPTEMBER 17, 2013

bakingbusiness.com / foodbusinessnews.net

Bread Industry Perspective

SIGNATURE INTERVIEW

Easing headwinds in challenging,
rapidly changing bread market

E
Weisser shares a
major management
plus in decision to
take Bunge public
Story on Page 22

LATE NEWS

Krispy Kreme approach
to wholesale changing
WINSTON-SALEM, N.C. — Krispy
Kreme Doughnuts, Inc., which has
its roots delivering donuts to local
grocery stores in the 1930s, slowly is
transitioning away from the wholesale business, said James H. Morgan
Jr., chairman, president and chief executive officer. The company does not
plan to abandon the wholesale part
of the business, but it is changing its
approach, Mr. Morgan said. In a presentation at the CL King & Associates
Inc. Best Ideas Conference held Sept.
11 in New York. Mr. Morgan said
wholesale, for all its pluses, “kills the
margins.” He said Krispy Kreme is
not awarding wholesale rights to any
Continued on Page 8

ven as the bread and rolls category
has remained under pressure over
the past year, conditions have not
been as severe as was the case a year
earlier. The improving trend emerged
in a year of extraordinary change for the
commercial baking industry.
Scanner data issued recently by Information Resources, Inc., a Chicago-based
market research firm, show unit sales
of fresh bread and rolls in the 52 weeks
ended Aug. 11 totaled 5,841,893,000,
down 0.78% from a year earlier. In the
case of fresh bread alone, unit sales were
3,820,665,000, down 1.32% from the year
before. The data were gathered from
supermarkets, drugstores, mass market
retailers, military commissaries and certain club and dollar retail chains.
While the bread and rolls decline

of 0.78% was hardly something to
celebrate, the shrinkage was smaller
than the 1.7% drop in 2012 or the jarring 4.2% decline in 2011. Additionally, while bread and rolls stood out
as among the worst performing categories in 2011, the results in 2013 do
not make the category an outlier. Unit
sales of milk were down 1.3%, readyto-eat cereal was down 1.77% and
Continued on Page 33

2013 corn crop forecast raised
80 million bus from August
WASHINGTON — U.S. 2013 corn production was forecast at 13,843,320,000
bus, up 80,295,000 bus, or about 0.6%,
from 13,763,025,000 bus forecast in August and up 28% from 10,780,296,000 bus
in 2012, the U.S. Department of Agriculture said in its Sept. 12 Crop Production
report. Soybean production was forecast
at 3,149,166,000 bus, down 106,278,000
bus, or about 3%, from 3,255,444,000
bus forecast last month but up 4% from
3,014,998,000 bus last year.

If realized, corn production would
be record high and soybean production
would be the fourth largest on record,
the U.S.D.A. said. Wheat production estimates will be updated in the U.S.D.A.’s
Sept. 30 Small Grains Summary.
The U.S.D.A. corn number was above
the average pre-report trade estimate of
13,646 million bus. The soybean number
matched the pre-report average of about
3,149 million bus.
New crop corn futures prices dropped
about 10c a bu immediately after the report was released at 11:00 a.m. Central
Time, while soybean futures were mixed
but mostly higher.
Based on Sept. 1 conditions, corn yield
was forecast at 155.3 bus an acre, up 0.9
bus from 154.4 bus an acre forecast in
August and up 31.9 bus from 123.4 bus
Continued on Page 45

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Milling & Baking News - September 17, 2013

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