Milling & Baking News - September 22, 2020 - 26

Bread Product Perspective

had situations where we've had to
close a bakery for a couple weeks,
not because there has been widespread outbreak at the plant, but
because you take enough people off
that shift you can't run that shift. You
take enough people out of the bakery
that are out on quarantine or have
been confirmed with COVID, you
can't run the bakery. Fortunately for
us, we have enough bakeries, we can
back that production into other plants
and not really skip a beat serving that
market. It's not the most efficient way
to do it. Most of the time it's a line
that shuts down here or there for a
while, but there have been a couple
instances where we had to close a
whole plant for a couple weeks."
Longer term prospects for bakers
were highly uncertain. Some erosion
in supermarket bread sales is anticipated as foodservice continues to recover, but the view of the post-pandemic world remained cloudy. In recently revising its long-term growth
targets downward, Flowers seemed
to be anticipating an industry return
to pre-pandemic trends.
While experiences over the past
six months of the largest, publicly
traded baking companies have been
chronicled thanks to periodic earnings calls, investor meetings and
other forums, not as much light has
been shed on the experience of privately-held or smaller companies.
Jack Lewis: 'We've done very well'
Lewis Brothers Bakeries, Inc.,
Evansville, Ind., ranked by IRI as the
fourth largest bread baker in the United States, also has enjoyed surging demand. Sales in the six months ended
Aug. 9 were $104 million, up 18%.
Unit sales were 56 million, up 17%.
"We've done very well," said R.
Jack Lewis, chairman. "Sales are off
from the peak. We all experienced a
big peak, but it's still good. During
the peak we did like everyone else
and reduced stock-keeping units.
The baking industry as a whole
did well."
Mr. Lewis credited the American
Bakers Association with helping
Lewis Brothers and the entire baking industry navigate challenges of
responding to the pandemic. The
help included guidance on ways to
continue operating during the pandemic while minimizing the chances
the dangerous virus would spread
among workers.
"We made sure we had temperature checks with nurses," he said.
26 / September 22, 2020

Milling & Baking News

"We told people not to come in if
they are sick, to wear masks. We took
all the precautions we could and got
by well."
Which is not to say the pandemic
hasn't brought challenges. Mr. Lewis
described the shortage of bakery
workers as a significant issue exacerbated for much of the summer by the
$600 weekly unemployment benefit
established under the CARES Act he
said kept potential workers from exploring job opportunities.
"It's a major problem," he continued.
"It's worse in some places than others."
Long-term trends continue to pose
challenges for Lewis Brothers and
the baking industry, Mr. Lewis said.
"It's a changing market," he said.
"White bread has been challenging. It
seems to be flat or down. You have to
pick it up on the variety side. We keep

of Chester where Mr. Welge grew up
and remained.
A nearly lifelong habit of going
into the company's baking plants
seven days a week has been interrupted by the pandemic. While he
misses the routine, Mr. Lewis sees
benefits to taking a step back.
"When the pandemic hit, I would
go in and see that people were more
worried about me than they were
about what they were doing," he
said. "So I am not going in as much."
A silver lining to his absence in
Mr. Lewis' view has been to give the
next generation of the company's
leaders greater freedom to take the
reins. Since 2019, H. Dean Short has
been president of the company. Mr.
Short is Mr. Lewis' nephew and a
grandson of R. Jack Lewis Sr., one of
the company's founders. Jack Lewis

'We made sure we had temperature checks
with nurses. We told people not to come in if
they are sick, to wear masks. We took all the
precautions we could and got by well.'
- Jack Lewis,
Lewis Brothers Bakeries, Inc.

adding products and repositioning
ourselves. There is a lot of opportunity for us. It isn't going to come easy."
He said the decline in the market
for private label has been a positive
to the degree it boosts the price per
pound bakers are able to generate in
bread sales.
The strong demand from the pandemic has cast a light on the large
number of closings of baking plants
over the past several years.
"I'm not sure where the capacity
has gone," he said. "There is a lot
less of it than there used to be."
He said Lewis Brothers baking
plants are operating at a higher rate
of capacity utilization than was the
case several years back and that the
company continues reinvesting in its
bread lines to achieve great production capacity, to reduce energy utilization and to increase automation,
among other objectives.
At age 82, Mr. Lewis is in an atrisk age group for COVID-19 but has
been careful and remains healthy.
He was personally affected by the
passing of his longtime friend Don
Welge, the late head of Gilster-Mary
Lee Corp. Mr. Lewis said he grew up
in Anna, Ill., about an hour southeast

Jr. remains chairman of the board.
His son Jack Lewis III heads flour
purchasing and oversees national accounts. A son-in-law, Jeffery Sankovitch, is chief financial officer.
"Stepping away helps the younger
generation," he said. "I took over
from my dad, so I know a lot about
succession. When it's what you've
done your whole life, it's tough to
put the brakes on."
Zingerman's recovers from initial hit
After a taking a major hit during the first weeks of the pandemic,
Zingerman's Bakehouse, Ann Arbor,
Mich., managed to reach its financial
targets in its 2019-20 fiscal year. Amy
Emberling, managing partner, said
the ups and downs experienced in
recent months have prompted the
company to take a highly cautious
view of the outlook.
Like many larger companies, Zingerman's was on track for a "really
good year" during the first six months
of its year, beginning in August 2019,
she said. The picture changed radically in March.
"When the pandemic hit, immediately we saw a really drastic drop in
sales the first month - between 30%
bakingbusiness.com / world-grain.com


http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - September 22, 2020

Table of Contents for the Digital Edition of Milling & Baking News - September 22, 2020

Milling & Baking News - September 22, 2020 - 1
Milling & Baking News - September 22, 2020 - 1
Milling & Baking News - September 22, 2020 - 2
Milling & Baking News - September 22, 2020 - 3
Milling & Baking News - September 22, 2020 - 4
Milling & Baking News - September 22, 2020 - 5
Milling & Baking News - September 22, 2020 - 6
Milling & Baking News - September 22, 2020 - 7
Milling & Baking News - September 22, 2020 - 8
Milling & Baking News - September 22, 2020 - 9
Milling & Baking News - September 22, 2020 - 10
Milling & Baking News - September 22, 2020 - 11
Milling & Baking News - September 22, 2020 - 12
Milling & Baking News - September 22, 2020 - 13
Milling & Baking News - September 22, 2020 - 14
Milling & Baking News - September 22, 2020 - 15
Milling & Baking News - September 22, 2020 - 16
Milling & Baking News - September 22, 2020 - 17
Milling & Baking News - September 22, 2020 - 18
Milling & Baking News - September 22, 2020 - 19
Milling & Baking News - September 22, 2020 - 20
Milling & Baking News - September 22, 2020 - 21
Milling & Baking News - September 22, 2020 - 22
Milling & Baking News - September 22, 2020 - 23
Milling & Baking News - September 22, 2020 - 24
Milling & Baking News - September 22, 2020 - 25
Milling & Baking News - September 22, 2020 - 26
Milling & Baking News - September 22, 2020 - 27
Milling & Baking News - September 22, 2020 - 28
Milling & Baking News - September 22, 2020 - 29
Milling & Baking News - September 22, 2020 - 30
Milling & Baking News - September 22, 2020 - 31
Milling & Baking News - September 22, 2020 - 32
Milling & Baking News - September 22, 2020 - 33
Milling & Baking News - September 22, 2020 - 34
Milling & Baking News - September 22, 2020 - 35
Milling & Baking News - September 22, 2020 - 36
Milling & Baking News - September 22, 2020 - 37
Milling & Baking News - September 22, 2020 - 38
Milling & Baking News - September 22, 2020 - 39
Milling & Baking News - September 22, 2020 - 40
Milling & Baking News - September 22, 2020 - 41
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Milling & Baking News - September 22, 2020 - 60
Milling & Baking News - September 22, 2020 - 61
Milling & Baking News - September 22, 2020 - 62
Milling & Baking News - September 22, 2020 - 63
Milling & Baking News - September 22, 2020 - 64
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