Milling & Baking News - February 13, 2018 - 4

Contents

February 13, 2018 Vol. 96, No. 25

NEWS FEATURE

NEWS Comment

Story on Page 30

Tight supplies
amid record
sugar production

Federal agencies'
alliance could ease
regulatory burden
at food facilities
DEPARTMENTS

7
10
17
18
24
28
36
42
44
47
57
62

Editorial
Business
Industry Activities
Financial Results
Data
People
Purchasing
Washington
Education and Research
Ingredient Week Trends
Supplier Innovations
Archive

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Story on Page 42

Grain-based foods
shares weak haven
in correction

10

Bakers at Europain share vision
of artisan bread's future

12

Hostess, B.B.U. buy Aryzta
Cloverhill facilities

14

Bimbo launches environmental
initiative in Mexico City

17

Ag secretary Perdue wants
industry input on regulations

22

Post c.e.o. says competition
remains high in cereal

Whole grain and "healthy" bread needs to
taste as "sexy" as it appears, says Michel Suas,
founder of the San Francisco Baking Institute.

Hostess Brands, Inc. acquires Chicago baking
plants as well as Big Texas and Cloverhill
brands. Bimbo Bakeries USA agrees to buy a
baking plant in Cicero, Ill.

Grupo Bimbo S.A.B. de C.V. inaugurates an
energy self-sufficiency initiative that includes
consolidating 33 systems that generate 3.7
megawatts of power.

Sonny Perdue talks about regulatory burdens
and having equal partners in NAFTA at the
International Production & Processing Expo.

Competitive intensity puts pressure on Honey
Bunches of Oats and Malt-O-Meal bag cereals,
leading to a soft quarter in the cereal business.

During the runaway bull market of 2017,
shares of grain-based foods stocks failed to
keep pace with the stampede. The sector's
anemic gains fell shy of the overall market, a
rarity in recent years. The Grain-Based Foods
Share Index rose only 0.7%, versus the 21.7%
jump in the S.&P. 500 and the 25.1% surge in
the Dow Jones average of industrial shares.
With the abrupt and steep stock market
decline over the past week, perhaps it would
be expected grain-based foods shares, which
historically have been treated as defensive
investments in the stock market, would be
outperforming again. Indeed, the G.B.F. share
index did not fall as steeply as the broader
market, though the spread was not a wide
one. In the five trading sessions dating back
to the initial market swoon of Feb. 2, the
grain-based shares were down 7%, versus
9% for the S.&P. 500. Of the 25 companies in
the Grain-Based Foods Share Index, only four
ended higher for the five-day period, versus
the closing price Feb. 1.
While grain-based shares performed nearly
in line with the rest of the market to date during
the correction, it remains to be seen whether
the downward trend will continue and, if so,
whether food shares will gain greater favor.
Industry shares had been sustained in part
by low interest rates, and growing concern
about the prospective pace of rate increases
has contributed to share price weakness in
the sector and the overall market. The intensity
of the market correction and the declines in
grain-based shares are understandable cause
for increasing nervousness. MBN

COMPANIES IN THIS ISSUE

A M King .......................................... 10

EAS Consulting Group, L.L.C. ............. 57

Healthy Brand Oil .............................. 57

Mullins Food Products ....................... 16

Archer Daniels Midland Co. ............... 20

Enlight .............................................. 14

Hinds-Bock Corp................................ 57

Newly Weds Foods, Inc. ..................... 16

Aryzta L.L.C....................................... 12

Flowers Foods, Inc. ........................ 1, 28

Hostess Brands, Inc...................... 12, 14

Oetker Group .................................... 16

b. patisserie....................................... 10

Grain Millers, Inc. .............................. 28

J&J Snack Foods Corp. ....................... 20

Post Holdings, Inc. ............................. 22

Bakkavor........................................... 10

Grupo Bimbo S.A.B. de C.V........... 12, 14

Kellogg Co. ......................................... 1

Qualisoy............................................ 57

Cargill ............................................... 57

Hain Celestial Group ........................... 8

King Arthur Flour Co. ......................... 10

Starbucks Corp. ................................. 10

Clif Bar & Co. .................................... 10

Harris Teeter ...................................... 10

Mondelez International ..................... 16

Toufayan Bakeries ............................. 12

4 / February 13, 2018

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Milling & Baking News - February 13, 2018

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