The flavor and texture of a ground bran and germ component or fraction is improved by subjecting the ground bran and germ component to heating while conveying and mixing the ground bran and germ component in a conveying and mixing device. The heating may be conducted to heat the bran and germ component or fraction to a temperature of from about 285° F. to about 410° F. to volatilize volatile wheaty flavor components and moisture in the ground bran and germ component and to develop a buttery, nutty, caramelized flavor in the bran component. The wheaty flavor components and moisture are removed from the mixing and conveying device during the heat treatment. The use of substantial moisture reduction with high temperature heating at a low moisture content provides flavor development while reducing wheatiness, graininess, or rawness, and also achieves lipase inhibition and stabilization against rancidity from free-fatty acid production.