Milling & Baking News - November 24, 2015 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS
NOVEMBER 24, 2015

bakingbusiness.com / foodbusinessnews.net

GRAIN MARKET ROUNDTABLE

Growers look to revitalize wheat
industry; users seek voice

Wheat futures seen
weak through 2015
and into 2016
Story on Page 33

LATE NEWS

Profit flat in Smucker
U.S. retail unit
ORRVILLE, OHIO - Net sales in
the U.S. Retail Consumer Foods segment of J.M. Smucker Co. during the
second quarter declined 3% to $644
million, reflecting lower prices for
Pillsbury and Jif products partially
offset by growth in the Smucker's
Uncrustables frozen sandwiches and
Eagle Brand canned milk businesses.
Segment profit was flat at $125.4 million, as lower prices and higher manufacturing overhead costs related to a
new peanut butter plant in Memphis
offset lower input costs for milk, peanuts and oils. Overall, net income at
J.M. Smucker for the second quarter ended Oct. 31 was $176 million,
Continued on Page 8

WASHINGTON - The National Association of Wheat Growers and the
National Wheat Foundation on Nov.
10 announced a joint effort to develop
a comprehensive business plan to revitalize the U.S. wheat industry. The announcement came as a surprise to the
North American Millers' Association
and the American Bakers Association,
who applauded the goal of revitalizing
the wheat chain but requested further
details on the initiative and urged their
perspectives be included in the process,
especially if what is envisioned as part
of the plan may be the development
and commercialization of bioengineered
wheat varieties.
"The wheat industry is not keeping pace with other crops," said Brett
Blankenship, president of NAWG and
a wheat grower from Washtucna, Wash.
"As a wheat grower-leader, I want to see
the industry flourish not decline. Reinvigorating the wheat industry will come

from increased productivity and profitability. This strategic plan will provide
us with the insight and analysis we need
to move the U.S. wheat industry forward in a stronger direction."
Dusty Tallman, chairman of the
N.W.F. and a wheat grower from Brandon, Colo., noted the wheat industry
has faced decreased profitability in
Continued on Page 12

Flowers volume up in quarter;
shares fall with guidance cut
THOMASVILLE, GA. - Sales growth at
Flowers Foods, Inc. in the third quarter
ended Oct. 10 was driven principally
by volume gains, and the company also
benefited from slightly improved EBITDA margins during the quarter.
At the same time, the company's financial results were adversely affected
by acquisition related costs, the effects

of a divestiture and facility closing
costs. Additionally, Flowers lowered its
earnings and adjusted sales guidance
for 2015.
In trading Nov. 12 on the New York
Stock Exchange, the price of Flowers'
common stock slumped to as low as
$23.52 per share, down 12%, from the
Nov. 11 close.
Flowers Foods net income in the third
quarter was $43,796,000, equal to 21c
per share on the common stock, down
1.8% from $44,599,000, or 21c per share,
in the third quarter of 2014. Sales were
$885,302,000, up 4.7% from $844,932,000
in the same period a year earlier. The
sales growth represents a significant
Continued on Page 20

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Milling & Baking News - November 24, 2015

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