Baking & Snack -june 2022 - 10

Grain-based checkoff
effort terminated
An effort dating back nearly 10 years to establish a checkoff program
for grain-based foods will be halted if a petition requesting
the withdrawal is approved by the US Department of Agriculture
(USDA).
On May 10, the Grain Foods Foundation (GFF) submitted
a request to the USDA under which the Wheat Flour Foods
Promotion, Research and Information Order would be withdrawn
from further consideration. If accepted by the department,
the withdrawal would cancel the pending publication of the order
in The Federal Register, a subsequent public comment period, and
following that, an industry referendum.
The order, which came out of an industry checkoff feasibility
study initiated in 2016, would have established a mandatory funding
mechanism for promoting wheat-based grain foods.
The petition to the USDA followed a May 10 vote by the GFF
Board of Trustees, expressing strong support for withdrawal of the
order from USDA consideration.
GFF leaders did not directly address why the petition was submitted
but emphasized the need for the foundation to continue
advancing its mission to elevate the public's perception of grainbased
foods.
- Josh Sosland, Milling & Baking News
Harry Voortman, founder of
Voortman Cookies, dies
Harry " Arie " Voortman, who along with
his brother William founded Voortman
Cookies in 1951, passed away on April 8.
He was 87 years old.
Voortman Cookies began in 1951 when
two young Dutch brothers, William and
Harry Voortman, opened their first bakery
in Hamilton, Ontario. According to company
history, it took five years of dedicated
baking and hard work before a Canadian grocery chain agreed to
give Voortman Cookies shelf space in their stores. Over the next
60 years Voortman would build a presence as a leading brand in
the crème wafer and sugar-free cookies categories.
In 2015, private equity firm Swander Pace Capital, San
Francisco, acquired a majority stake in Voortman Cookies, and
Mr. Voortman stepped away from his daily role as chief executive
officer while remaining on the company's board of directors. Five
years later, in 2020, Voortman was acquired by Hostess Brands
Inc., Lenexa, Kan., in a transaction valued at $320 million.
- Eric Schroeder, Milling & Baking News
10 Baking & Snack June 2022 / www.bakingbusiness.com
McMullian optimistic
despite economic trends
Flowers Foods, Inc.'s portfolio of premium products should hold
up well in the event of a recession, said A. Ryals McMullian,
president and chief executive officer of the Thomasville, Ga.based
company.
In remarks issued regarding the company's first-quarter financial
results, Mr. McMullian said a look back a decade to another
period of higher costs and economic weakness offers hopeful signs
for what may be in store for Flowers in the event of a recession.
" The last period of significant inflation coincided with the financial
crisis and aftereffects that occurred roughly from 2007
to 2012, " he said. " The common perception is that recessions
encourage consumers to trade down to lower priced products,
particularly private label. However, what we found during this
period was that despite the severe economic hardships, including
high unemployment and low consumer confidence, private label
did not gain meaningful share, though we did see a shift from
foodservice to branded retail as consumers cut back on more expensive
restaurant visits. Further, differentiated products held up
better than more commodity-like products.
" I would also note the significant changes we've seen in the
competitive environment since that period. The industry was
much less consolidated, and some larger players were under financial
distress, which led to pricing pressure. Our product portfolio
was also less differentiated as we had not yet acquired Dave's
Killer Bread or Canyon Bakehouse. Nor had we yet developed the
Nature's Own Perfectly Crafted line. "
Asked by an investment analyst about how private label may
fare this time around in the event of an economic downturn, Mr.
McMullian said recent data show sales of private label continue to
decline, though not as steeply as earlier quarters.
He added that the possibility consumers may " trade down " to
some degree should not be discounted.
- Josh Sosland, Milling & Baking News
http://www.bakingbusiness.com

Baking & Snack -june 2022

Table of Contents for the Digital Edition of Baking & Snack -june 2022

Baking & Snack -june 2022 - Intro
Baking & Snack -june 2022 - 1
Baking & Snack -june 2022 - 2
Baking & Snack -june 2022 - 3
Baking & Snack -june 2022 - 4
Baking & Snack -june 2022 - 5
Baking & Snack -june 2022 - 6
Baking & Snack -june 2022 - 7
Baking & Snack -june 2022 - 8
Baking & Snack -june 2022 - 9
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