Milling & Baking News - May 7, 2019 - 15

Business

Great Harvest Bread Co. to
expand in five U.S. states
DILLON, MONT. - Great Harvest Bread
Co. has signed five franchise agreements
with new and existing franchisees that
will bring the bakery-cafe concept to the
additional markets of Grand Junction,
Colo.; Northern Dallas; Long Island, N.Y.;
Tulsa and Broken Arrow, Okla.; and Red
Bank and Asbury Park, N.J.
Founded in 1976, Great Harvest operates nearly 200 locations across the
United States, all of which offer breakfast, sandwiches, grain bowls, soups,
salads, pastries and desserts. In 2017, the
company introduced a "hub-and-spoke"
franchise model, which allowed for rapid
expansion across the United States.
Under the hub-and-spoke franchise
model, franchisees may purchase a large

territory that includes a single Great Harvest
Bakery operation and as many cafe-only
units as they want in surrounding towns.
The bakery locations are equipped with
ovens and ample space to produce and
deliver the hand-milled bread to
the nearby cafe-only locations
throughout the day.
Great Harvest said the
hub-and-spoke model allows its franchisee owners
to own multiple locations
under one agreement, while
competing against segment rivals in all territories.
"We're continuing to see franchise owners seek out the hub-and-spoke model, as
it is the most efficient way to out-bake

Food safety leadership deemed a
'differentiator' for General Mills
MINNEAPOLIS - General Mills, Inc. invested $14.4 million on food safety in fiscal 2018, down from $15.2 million in 2017
and $16 million in 2016. The company
in its 2019 Global Responsibility Report
issued in April said 7.6% of its essential
capital investment in 2018 went toward
projects related to food safety.
"Food safety leadership is a differentiator
for General Mills, but not an area of competition," the company said in the report. "We
freely share our best practices and emerging areas of concern, as well as collaborate
with industry peers and regulators to help
raise standards industrywide."
General Mills has a legacy of food safety

leadership, dating back to the 1950s
when the company established a raw
material vendor management program.
In the 1970s the company developed
food safety programs for quality engineers at production facilities, and in
1996 it pioneered allergen labeling on all
products.
One of the food safety goals General
Mills has set is to achieve Global Food
Safety Initiative (GFSI) certification for all
General Mills-owned facilities by 2020.
Providing an update on the company's
progress toward that goal, General Mills
said 84% of its company-owned facilities
are GFSI certified, up from 82% in 2017.

Easton Pharmaceuticals closes on
deal for Canadian food processor
TORONTO - Easton Pharmaceuticals,
Inc. has acquired Supreme Sweets Inc. and
2498411 Ontario Inc. from founders Barbara and Mario Parravano for a combination
of cash and Easton stock. Financial terms
of the transaction were not disclosed.
Headquartered in Toronto, Supreme
Sweets makes traditional baked foods,
including gluten-free and keto products,
at its 40,000-square-foot facility in Toronto. The company supplies baked foods to
major grocery retailers in North America, as well as specialty coffee chains,
under its own brands and as a contract packer. Products include donuts,
cookies, croissants, cakes, brownies,
bakingbusiness.com / world-grain.com

chips, bagels, bread, pies and tarts.
Easton said the acquisition fits into
its strategy to enter the cannabis edibles

SUPREME SWEETS INC.

market while continuing to grow the traditional baked foods business with new
specialty product launches. Easton said it

and out-localize the competition in hightraffic areas with as little as 1,500 square
feet," said Mike Ferretti, chairman and
chief executive officer of Great Harvest
Bread. "Additionally, with new Great
Harvest locations, each owner is able to
make it their own with our freedom franchise, which lets franchisees choose their
own design, décor, menu selection
and even set their own pricing
and localize their marketing
efforts."
Last fall, Great Harvest
reached an agreement with
World Franchise Associates,
an international franchise
development
consultancy,
marketing and media company.
As part of the agreement, W.F.A. is
working to explore growth opportunities
for Great Harvest in Europe, Scandinavia,
the United Kingdom, Japan and Canada. MBN
Additionally, 78% of co-production sites
and 65% of ingredient supplier sites also
are GFSI certified.
General Mills conducted 5 voluntary
recalls in fiscal 2018, including some for
the company's snack bars, cereal, yogurt,
and fat and tallow products. By comparison, the company conducted 9 recalls in
2017 and 10 recalls in 2016.
To help ensure the safety of the raw
materials the company uses in its products, General Mills has expanded the
number of supplier and co-producer audits it conducts globally. General Mills
said it conducted 836 supplier audits
and 98 co-producer audits in 2018, which
compared with 917 and 62, respectively,
in 2017. General Mills also said it trained
more than 300 suppliers through supplier
schools and webinars in 2018. MBN
expects sales to reach $20 million over the
next 12 months with increasing margins
once economies of scale begin to take effect. Looking ahead, Easton said it sees
potential to grow baked food sales to $50
million per year and expects the company's edible division to reach $100 million.
"We are very pleased to have completed our acquisition of Supreme Sweets
and are very excited for the direction of
the company," said Evan Karras, chief
executive officer of Easton. "This acquisition forms part of our strategic growth
plan to add shareholder value and will
give Easton the platform to enter the cannabis industry."
Easton Pharmaceuticals is a diversified
company with interests in a variety of
segments, including food and beverage,
real estate development and gaming. MBN
Milling & Baking News

May 7, 2019 / 15

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Milling & Baking News - May 7, 2019

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