Milling & Baking News - October 1, 2013 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
OCTOBER 1, 2013

bakingbusiness.com / foodbusinessnews.net

FOOD INGREDIENT SOLUTIONS®

Flour boosting
Gluten may act as a functional
protein while other proteins may
provide benefits such as satiety

Story on Page 27

LATE NEWS

Report: Nestle considering
sale of PowerBar
VEVEY, SWITZERLAND — Nestle
S.A. is weighing a potential sale of its
PowerBar energy bar business, according to Reuters. Citing sources familiar
with the situation, Reuters reported
that the business could fetch several
hundred million dollars. Nestle acquired PowerBar in 2000 for an undisclosed price. PowerBar was founded
in 1986 as a mail order retailer. The
company’s product portfolio now includes energy bars, sports drink mixes
and supplements. Nestle has declined
to comment on a potential sale, but in
an Aug. 8 conference call to discuss
first-half results, Wan Ling Martello,
chief financial officer, hinted at the
Continued on Page 8

Wonder, Drake’s new owners ahead
on bread, cake market relaunches
THOMASVILLE, GA. — The revival
of brands formerly owned by Hostess
Brands L.L.C. gained momentum last
week with Flowers Foods,
Inc. and McKee Foods
Corp. moving ahead on
several product reintroductions. The efforts
marked the first time in
10 months that consumers
were able to buy such products as Wonder bread and
Drake’s Ring Dings.
In the case of Wonder,
Merita, Home Pride and Butternut, product was back on supermarket shelves across much of
the country beginning Sept. 23. Flowers Foods, Inc. acquired the brands,
20 baking plants and other “bread assets” for $355 million from Old HB,
Inc. (formerly Hostess Brands) in July.

The brands had been off the market
since Hostess declared bankruptcy in
November 2012.
“We’re thrilled to be baking these
wonderful breads and know that millions of consumers will be smiling
when they find their favorite
back in their grocery store,”
said Keith Aldredge, vicepresident of marketing
for Flowers. “We are using the same recipes and
paying close attention
to quality and freshness.
We want these breads
to be great from the very
first taste.”
Flowers said the former Hostess
bread brands are being baked at Flowers bakeries around the country and
are available throughout the company’s
Continued on Page 11

Siemer, Nagel form Whitewater Mill to
build new facility near Cincinnati
HARRISON, IND. — Whitewater Mill
L.L.C. is building a new flour mill in
Harrison, just west of Cincinnati. A new
business, Whitewater is a joint venture
of Siemer Milling Co., Teutopolis, Ill.,
and H. Nagel and Son Co. of Cincinnati.
The new soft wheat mill will have
daily capacity of 10,000 cwts. Buhler,
Inc., Plymouth, Minn., has been engaged as the principal equipment
supplier, and Todd and Sargent, Inc.,
Ames, Iowa, is the contractor for the

building and equipment installation.
With a completion target of spring
2015, Whitewater is expected to have a
workforce of 35 once it is operational.
The partnership is between two of the
oldest names in flour milling. The Nagel
business was established in 1857. Siemer
Milling began business in 1882.
According to the companies, financing for the project has been secured from
CoBank of Denver. Additionally, government support was forthcoming from
Dearborn County, Ind.; the Lawrenceburg (Ind.) Regional Economic Grant
Fund and the Indiana Economic Development Corp.
While the decision to build the mill
was motivated by what the partners view
as attractive market conditions, they said
heightened efficiency, food safety and
Continued on Page 10

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Milling & Baking News - October 1, 2013

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