Milling & Baking News - August 4, 2015 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
AUGUST 4, 2015

bakingbusiness.com / foodbusinessnews.net

BUNS AND ROLLS UPDATE

Campbell Soup shifts mean
changes for Pepperidge Farm

Bring on the buns
Bakers roll out line extensions,
interesting sizes to market
Story on Page 29

LATE NEWS

Mondelez earnings,
sales drop in quarter
DEERFIELD, ILL. - A day after announcing plans to cut jobs at a Chicago plant and add new lines at a facility in Mexico, Mondelez International
said earnings for the second quarter
fell 35%. Net income for the period
ended June 30 fell to $406 million,
equal to 25c per share on the common
stock, down from $622 million, or
36c per share, in the same period last
year. But adjusted earnings per share,
which excludes factors such as restructuring costs, increased by 37.5%
to 47c, which exceeded analysts' forecast of 39c per share. Net revenues
fell 9% to $7,661 million from $8,436
million. Irene Rosenfeld, chairman
Continued on Page 8

CAMDEN, N.J. - The Campbell Soup
Co.'s decision to shift its portfolio toward faster-growing categories means
a different look, and taste, for
a number of its popular
grain-based foods products. Changes include the
removal of high-fructose
corn syrup from certain
bread, as well as greater
attention to the company's
bread and roll business.
In a July 22 investor day
conference call, Luca Mignini,
president of Global Biscuits
and Snacks, outlined the changes in store for the company as it
looks to improve its growth and
profitability in the United States.
Specifically, he pointed to a plan that
has Campbell channeling resources into
a three-pronged strategy for its Pepperidge Farm brand.
"First, we will increase market share

by focusing investment on two priority brands," Mr. Mignini said. "Our
Goldfish team will increase investment
in our successful Goldfish marketing
campaign as well as expand its whole
grain line to include new flavors such
as pretzel, honey and cinnamon. We
also plan to launch three flavors
of Goldfish made with organic
wheat - Cheddar, Parmesan
and Original.
"Leveraging the strides
we made in the digital
space, our Milano team
will launch and enhance
the integrated marketing campaign to better
connect with our consumer."
The company's second strategy
will center on fueling momentum in the
Pepperidge Farm fresh bakery portfolio
by investing in the Farmhouse brand.
New bread, buns and roll varieties are
Continued on Page 10

Food Ingredient Solutions

Paths to pho-free formulations
Know the specific traits and issues of oils from soybean, canola and palm

he outlook on replacing partially
hydrogenated oils has brightened. High-oleic soybean oil is
beginning to enter the market. Supply
of canola oil should keep surging, and
palm oil remains a drop-in replacement

to partially hydrogenated oils (phos).
Formulation clouds still hover on the
horizon, however. High-oleic soybean
oil and canola oil work well in frying
applications, but because they are liquid
oils, they may need to be blended with
more solid oils in baked foods. High-oleic soybean oil, being bioengineered, also
may not work in non-bioengineered/
non-G.M.O. products. In regard to palm
oil, saturated fat content is still a concern, and sustainability issues, especially deforestation, are being addressed.
Then there's the June Food and Drug
Continued on Page 23

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Milling & Baking News - August 4, 2015

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