PET Food Processing - March 2018 - 87

IN THIS ISSUE: EXTRUSION * INGREDIENT TRACEABILITY * MAINTENANCE
FEBRUARY 2018

PET food

February 20, 2018 | foodbusinessnews.net

www.bakingandsnack.com

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PROCESSING

The knowledge source for the formulation, production and safety of pet food.

The knowledge authority for development, production,
packaging and distribution of grain-based foods.

2018 Survey Results
STORY ON PAGE 9

IN THIS ISSUE

NEWS

U.S. market continues to challenge
Hain Celestial Group

Kellogg looking beyond cereal,
seeking growth in snacks
BATTLE CREEK, MICH. - Don't expect ready-

Page 34

Wenner
Bakery

aim to stabilize it," he said, adding, "You
shouldn't look at U.S. Morning Foods and
say this is going to be the growth engine
for the Kellogg Co."
Cereal sales have struggled in recent
years as American consumers opt for
protein bars and other portable items for
breakfast. In the recent quarter, Kellogg
introduced Special K with probiotics to
tap into consumer interest in digestive
health. The company also rolled out
Chocolate Frosted Flakes. Meanwhile,
net sales of the company's U.S. Morning
Foods segment fell 5% on a currency-neutral basis in the fourth quarter
and full year. Brand building and "constant innovation" are needed to reverse

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petfoodprocessing.net

CONTINUED ON PAGE 8

F OOD S A F E T Y

A first look at North Country Nicole Makowski works
Smokehouse's new plant
to leave a legacy

Whole genome sequencing
fingerprints pathogens

p26

p32

p80

p46

eating
more
meat
PROTEIN-RICH DIETS
GAIN MOMENTUM

INTERNATIONAL
BUYER'S GUIDE

2018

Sosland Publishing Co

to-eat cereal to drive growth at Kellogg
Co., chief executive Steven A. Cahillane
told investment analysts during a Feb. 8
earnings call.
"We know we can stabilize it; we

Page 18

Dairy Business News: Dark,
intriguing flavors trending

E XECU T I VVEE PROFIL E

PL
P L A N T PPROFIL
ROF IL E

Processors look to 2018
with optimism

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'Retail disruption is
happening globally'

Page 14

w w w.me at p oult r y.com

M A RK E T OU T LOOK

March 2018

PepsiCo's Nooyi:

Emerging markets, innovation
drive Unilever's 2017 results

or Grain
Grain, Fl
The International Business Mag
Magazine for
Flour and Feed

2018 INTERNATIONAL BUYER'S GUIDE

CAPITAL
SPENDING

JANUARY 2018

World Grain

®

www.World-Grain.c
www.World-Grain.com

dd
d
d

THE NEWS WEEKLY OF GRAIN-BASED FOODS

STOCK MARKET ANALYSIS

LATE NEWS

Novem
November all wheat
average price increases
WASHINGT
WASHINGTON - The price of
all wheat received
r
by farmers in
November aaveraged $4.73 a bu, up
and up 85c from
9c from October
Oc
the U.S. Department
November 2016,
2
of Agriculture
Agricultu said in its Dec. 28
Agricultural Prices report. Durum
$6.53 a bu, up 12c from
averaged $6
October and up 53c from November
2016. Spring wheat other than durum
$5.78 a bu, up 23c from
averaged $5
October and up $1.30 from a year
earlier, with hard red spring at $5.89 a
bu, up 16c and
an up $1.35, respectively.
wheat averaged $4.07 a bu,
Winter whe
October but up 66c
down 10c from
fr
November 2016, with hard
from Novem
Continued on Page 8

Stephens, Inc., New York; Kevin V. Dreyer, co-chief investment officer, value,
Gabelli Funds, New York; and Nicholas
Fereday, senior analyst, consumer foods,
Rabobank, New York.
Each of the analysts cited changes in
food retailing as a key market influence
in 2017, notably the acquisition last year
of Whole Foods Market, Austin, Texas,
by Amazon.com, Inc., Seattle.
"A lot of (the food sector weakness)
has to do with the upheaval in retail -
Aldi /Lidl and Whole Foods/Amazon,"
Mr. Hundley said.
Food companies and retailers will adjust

IN THIS ISSUE: EMULSIFIERS * FLATBREAD TECH * MILLENNIALS

w w w.me at p oult r y.com

T HE S AUS AGE REP OR T

T R A NSP OR TAT ION

P OULT RY PROCE SSING

FROM T HE CORR A L

The strategies and tools

Preparing for accident
scenes involving livestock

Controlled atmosphere
stunning advances

p50

p56

and hiring hidden gems

of the sausage trade

p14- 40

Temple Grandin on identifying

DECEMBER 2017

www.bakingandsnack.com

p84
®

A SOSLAND PUBLICATION

All the
right

The knowledge authority for development, production,
packaging and distribution of grain-based foods.

BEACON
CO OOF

KEEPING SAUSAGE
AT THE CENTER OF
THE PLATE

LEADERSHIP
2017 OPERATIONS

Continued on Page 20

AN INDISPENSABLE NEWS AND
INFORMATION SOURCE FOR THE GRAIN,
MILLING
AND FOOD PROCESSING
SNAXPO
S
L
INDUSTRIES FOR NEARLY A CENTURY
General Mills reinforces commitment
to competing in cereal
MINNEAPOLIS - Although scanner
data suggest the overall ready-to-eat
cereal category is down 2% to 3% yearover-year, General Mills, Inc. likes the
way it's competing in the sector right
now, said Jonathon J. Nudi, senior
vice-president and group president of
North America Retail.

EXECUTIVE OF THE YEAR

"When you look at our performance
through the first half, our change in
trend is pretty significant, and nearly
70% of that change is from baseline
sales," Mr. Nudi explained during a Dec.
20 conference call with analysts to discuss second-quarter results. "So again,
it's really better innovation and better
marketing that's driving our results in
the category. And that's really been the
recipe for success in the category over
the long term."
Mr. Nudi said General Mills is committed to continuing to build strong brands
and is focused on innovating more aggressively. He said the company is

2018

Story on Page 26

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KRISPY KREME DOUGHNUTS, INC.

Dunkin' goes simple
while Krispy Kreme
finds brand partners

State of the Industry Report
2017

Reversal of fortune seen in food-sector
share prices going into 2018
KANSAS CITY - After years of food
industry share outperformance relative
to the broader stock market, the sector's
reversal in 2017 was extraordinarily severe, said Brett M. Hundley, Vertical
Group, Richmond, Va.
As a result, Mr. Hundley said food
sector shares are valued far differently
at the start of 2018 than was the case
a year ago or several years earlier. Mr.
Hundley was one of several food sector
analysts interviewed by Milling & Baking
News about the stock market outlook for
the new year in the food sector generally
and grain-based foods in particular.
"Since 2006, the packaged foods subindex has always traded at a premium
to the market," Mr. Hundley said. "Over
the past two to three years the multiple
has been 1.4 to 1.5 times. Now it is sub1. I'd never seen that. It just shows the
rotation toward industrials and tech and
away from these staple names."
Other analysts offering a market outlook were Farha Aslam, managing director,

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FEBRUARY 2018

Sosland Publishing's

JANUARY 2, 2018

Statistics and listings for North America's
grain handling and processing industries

TreeHouse
Foods

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Continued on Page 11

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40th Annual
Purchasing Seminar

official show issue

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Octubre 2017

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Chicago's
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inside a
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Snacking
cheeses
Labeling
Grab 'n go dips
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IN THIS ISSUE: MIXING * DAIRY * PRETZEL TECH

January 23, 2018 | foodbusinessnews.net
February 2018

THE NEWS WEEKLY OF GRAIN-BASED FOODS

DECEMBER 2017

JANUARY 16, 2018

OCTOBER 2017

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STOCK MARKET REVIEW

WASHINGTON UPDATE

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STORY ON PAGE 24

MARKET INSIGHT

Outlook for 2018 grain markets
coming into focus

Page 8

Page 22

Dairy Business News:
Dairy central to snack innovation
Page 28

A

Story on Page 26

LATE NEWS

Hearthside Food may
be on the block
THE CONSUMER ISSUE:

IN THIS ISSUE

The Ferrero Group to acquire
Nestle's U.S. confectionery unit
Awaiting Conagra Brands' moves
to pay off

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Sourcing the globe
for the next sriracha

What will 2018 bring?

bevy of reports from the U.S.
Department of Agriculture on
Jan. 12 laid the initial groundwork
for grain and oilseed markets in 2018,
and at this point, it looks like more of the
same with abundant domestic and global

supplies the overarching theme.
Combined data from the U.S.D.A.'s
annual Winter Wheat and Canola
Seedings, annual Crop Production 2017
Summary, quarterly Grain Stocks and
monthly World Agricultural Supply and
Demand Estimates reports indicated more
corn and wheat than expected and less
soybeans, which moved futures sharply
lower for wheat, modestly lower for corn
and higher for the oilseed market.
Although wheat numbers were
bearish all around, probably the biggest
surprise was winter wheat seedings. Area
planted to all wheat for harvest in 2018
at 32,608,000 acres was down 88,000
acres, or 0.3%, from 2017, down 10%
CONTINUED ON PAGE 20

the future of
whole grains
THE VERMONT CONNECTION

Bakers, farmers, breeders work together
STONE MILLED

Elmore Mountain Bread branches out
SPRING CAKES

Cake decorators share design trends

NEW YORK - Hearthside Food
Solutions L.L.C., the nation's largest and fastest-growing independent
bakery and full-service contract manufacturer of grain-based food and
snack products, has been an active
acquirer of several bar makers over
the past year. Now, Hearthside itself
may be on the block, according to a
report from Bloomberg. Bloomberg on
Jan. 11 reported that Goldman Sachs
Group Inc.'s private equity arm and
Vestar Capital Partners are exploring
a sale of Downers Grove, Ill.-based
Hearthside Food Solutions. If the
groups go through with the sale, the
transaction could fetch about $2.5
Continued on Page 8

KANSAS CITY - In a year in which the
overall stock market roared to new record highs, the Grain-Based Foods Share
Index in 2017 barely squeaked out a fractional gain. Still, the index calculated by
Milling & Baking News managed to end
in the black for a ninth consecutive year.
At 0.7%, the advance was the smallest of the nine-year streak and followed
advances of 14.2% in 2016, 4.3% in 2015,
17.4% in 2014 and 22.7% in 2013.
While ending at the highest yearly close ever, the 24413.16 close was
below an all-time intra-year peak
of 25137.46 reached in December
2016 and the 2017 intra-year high of
25568.38 reached in June.
The 0.7% gain fell far short of advances
scored by major stock market indexes -
25.1% for the Dow Jones average of industrial shares, 21.7% for the S.&P.500 and
26.9% for the Nasdaq composite index.
Versus the 10 S.&P.500 sectors, the
grain-based shares significantly underperformed each with the sole exception

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©KENKISTLER1 - STOCK.ADOBE.COM

Modest gain extends grain-based
share streak to nine years

The knowledge authority for development, production,
packaging and distribution of grain-based foods.

HEARTHSIDE
and VSI GOING
GLOBAL

of energy, which declined 1%. Disappointingly, the grain-based index fell
more than 12 percentage points shy
of the 13% gain scored by the S.&P.500
consumer staples sector. The consumer
discretionary index was up 23% in 2017.
Gains from other sectors of the S.&P.500
ranged from a low of 12% for utilities to
a high of 34% for technology.
Two companies included in the
Grain-Based Foods Share Index in 2016
were acquired in 2017. In June, Tyson
Foods, Inc., Springdale, Ark., completed an acquisition of AdvancePierre
Foods Holdings, Inc., Cincinnati, for
Continued on Page 20

Urgency, optimism after checkoff
steering committee convenes
WASHINGTON - Broad outlines of a
potential checkoff program for the flourbased foods industry took shape last week
with the inaugural meeting of a Grain
Foods Foundation steering committee responsible for assessing, developing and
potentially launching such a program.
Christine Cochran, executive director

of the G.F.F., called the Oct. 10 meeting a
success and described a sense of urgency
among the group of milling and baking executives to take steps to reverse declining
trends in grain-based foods consumption.
"There was real momentum to build
a commitment toward a checkoff," she
said. "Many details are still up for consideration, but there was consensus that
we should pursue a program. These folks
are ready to move. If we could launch tomorrow, they would be happy."
Notwithstanding this enthusiasm,
numerous steps remain to be completed and decisions to be made before
a launch will be possible, Ms. Cochran

The complexity of simple
How yogurt became a go-to clean label ingredient | 10
Tapping into mocktail mania |

Continued on Page 17

6

Healthy indulgences |

16

Member profile: NuSpice's Jessica Goldstein |

24

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Table of Contents for the Digital Edition of PET Food Processing - March 2018

http://digital.petfoodprocessing.net/sosland/pfp/2019_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_03_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_12_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_09_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_03_01
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