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Bulletin 2012 ABA Fall Meeting Special Edition

ABA and ATBI Discuss Industry Solutions at Joint Boards Meeting “This annual meeting allows industry leaders to come together and discuss front burner policy issues as well as key industry issues,” said ABA President and CEO Robb MacKie. “We greatly appreciate the tremendous expertise embodied by the ATBI Board members and their willingness to help address industry issues.” The ABA and ATBI Boards, the group of top industry leaders, gathered to discuss industry solutions to top-of-mind topics such as health care compliance, Wal*mart’s sustainability initiatives, ethanol and commodity volatility. The Boards were treated to a pre-election analysis by Senatorial candidate George Allen (R-VA). Allen also discussed the need for jobs and exploring energy alternatives. (More Joint ABA/ATBI Board Meeting coverage on page 4) George Allen speaks to the joint ABA/ATBI Boards about the upcoming election and Virginia Senate race.

ELDC Hears from Congressionial, Business and Industry Leaders The Executive Leadership Development Committee (ELDC) held its annual Public Policy Forum Oct 2-4 in Washington, D.C. ELDC Co-Chairs Connie Vaughan, McKee Foods and Pete Frederick, Milner Milling Co. worked closely with ABA professional staff to craft an exciting, informative and timely agenda for nearly 50 baker and allied ABA Members who participated. The Forum kicked off on Tuesday evening at a networking reception with members of the ABA and ATBI Boards. “We are grateful to members of the ABA and ATBI Boards for staying in town to network with ELDC attendees,” said ELDC Co-Chair Pete Frederick, Milner Milling. “Being able to spend some time with industry leaders is a major component of what makes the ELDC so valuable.” Senate Candidate Heather Wilson (R-NM) speaks at the ELDC Dinner on ABA Chairman Robin Alton, Pan-O-Gold Baking Co. a host of topics such as illegal immigration, a major issue in her state. kicked off the 2012 program with welcoming remarks. (ELDC continued on next page)

1300 I Street, NW • Suite 700 West • Washington, DC 20005 • 202-789-0300 PH • 202-898-1164 FAX • www.americanbakers.org 1300 I Street, NW • Suite 700 West • Washington, DC 20005 • 202-789-0300 PH • 202-898-1164 FAX • www.americanbakers.org


ELDC Public Policy Forum ABA & ATBI Leadership Join ELDC and Take Message to Capitol Hill (ELDC continued from previous page)

“To have the ABA Chairman with us for the entire conference was a real treat,” said Bradley Cain, Cain Food Industries. “We are fortunate as an industry to have top leadership who lead by example and support ABA activities in all capacities. Chairman Alton is no exception and his commitment to ABA and the industry is unparalleled.” said Cain. The Wednesday morning program focused on Hill visit preparation that included policy updates by the ABA Government Relations Team and a Lobbying 101 Session conducted by Kelly Johnston, Campbell Soup Co. ELDC attendees visited with congressional staff later Wednesday morning to talk about ABA Chairman Robin Alton, Pan-O-Gold Baking current issues important Company to the baking industry including sugar reform, ethanol policy and nutrition funding. A group luncheon was held at the legendary Monocle Restaurant on Capitol Hill where Marc Freedman, U.S. Chamber, spoke to attendees about possibilities for a lame duck Congressional session. “The Hill visits are always interesting and worthwhile,” said ELDC Co-Chair Connie Vaughan, McKee Foods. “Whether we meet with Members Bradley Cain, Cain Food Industries, and ABA Chairman of Congress or their staff, the time is well spent communicating the baking Robin Alton, Pan-O-Gold Baking Company, at the Industry industry’s priorities and positions; and it’s important that we conduct Networking Reception. these visits at least every year because we need to consistently reinforce our message with lawmakers.” (Continued on next page)

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ABA members and leadership discussing issues currently impacting the baking industry with Legislative Director Michael Lowery of Rep. Eric Cantor’s (R-VA) office.


ELDC Public Policy Forum ELDC Takes Home Industry, Political and Business Lessons from Seasoned Leaders with Experience (Continued from previous page)

The Thursday afternoon program session featured key speakers including the ELDC CEO Speaker Series this year featuring Len Amoroso, President, Amoroso Baking Co. “It was an honor to have Len Amoroso be a part of our agenda this year,” said ELDC attendee Campbell Williams, BCW Food Products. “Len is a seasoned executive and to learn about the daily challenges he faces as a business owner was really eye-opening and inspirational.” Later that afternoon, Steve McClatchy, Alleer Consulting, provided an Len Amoroso, Amoroso Baking Company, talked about the interactive session with hard knocks and lessons learned growing up in the baking attendees surrounding the industry and running a family business. topic of leadership and conflict resolution. (ELDC continued on next page)

Steve McClatchy gives several options on how to address the “moose in the room” (positively resolve a conflict with a co-worker).

ELDC attendees get valuable business lessons playing the old-fashioned game of “Rock, paper, scissors!” ELDC attendees have fun with an interactive exercise during Steve McClatchy’s leadership and conflict resolution presentation. Steve McClatchy proves that we can still apply childhood game strategies in today’s “adult” business world.

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Joint ABA/ATBI Board Meeting Commodites Expert Explains “Perfect Storm” for Volatility Commodity volatility has been a “top of mind” topic with bakers since the wheat crisis began in 2008. Commodities expert Russell Lamb, Advanced Analytical Consulting Group, gave the ABA and ATBI Boards a farm sector update and explained why 2012 was a “perfect storm” for commodity volatility and why that is causing the industry to experience a case of “déjà vu.” He said that the effects of “booming ethanol,” the drought pushing production down, and the ethanol program draining resources (land for wheat), was a “dangerous combination.” “Despite commodity prices being up, the U.S. “The Perfect Storm” and global economy are weak,” he explained. “Yes, you should be worried about the economy.” Drought He discussed how baking companies might be able to manage forces out of their control more Ethanol Program effectively and how to gauge the market and index Monetary Policies Commodities Expert Russell Lamb funds to make better decisions that impact their explaining why 2012 is a “perfect business. He said that greater volatility means a storm” for commodity volatility. heightened focus on hedging, forward pricing, futures market positions, options, etc. His advice to the group: Because macro factors are important, and so unclear, bakers should proceed with “great caution and discipline.” In other words, simple rules of thumb no longer apply when it comes to commodities; more sophisticated models need to be considered and seeking professional advice would be a wise move in today’s market.

• • •

Former Virginia Governor and Senator George Allen Highlights Joint ABA-ATBI Meeting

Senatorial candidate George Allen (R-VA) discusses the 2012 election and his platform for the Senate race in Virginia. George Allen meets ABA Chairman Robin Alton, Pan-O-Gold Baking Company.

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U.S. Senate candidate George Allen (R-VA) highlighted the stakes in the upcoming US election. Specifically he stated the election would determine a clear choice of a future of higher taxes or fundamental tax reform, greater or fewer regulatory hurdles and slow versus more robust economic growth over the next decade. He stated that in addition to the Presidential election, that a third of the Senate was up for election and the outcome would be critical to the outcome of any economicgrowth proposals. Mr. Allen is running in the open seat being vacated by retiring Senator Jim Webb (D-VA).

George Allen meets Sadao Yasumura, Vie de France Yamazaki, Inc. George Allen with Ken Newsome, AMF Baking Company — a consituent in his home state.


Joint ABA/ATBI Board Meeting Health Care Reform, Sustainability and Commodity Volatility

Edward Fensholt, Locton Benefit Group, addresses the joint boards on cost implications of health care reform.

ABA and ATBI continued fostering the industry dialogue on key issues as both organizations met this fall in Washington D.C. Industry leaders gathered to discuss industry solutions to top-of-mind topics such as health care reform, sustainability initiatives and commodity volatility. Health care remains an issue with an uncertain outcome as the regulations impacting all bakers have yet to be proposed. Edward Fensholt, Senior Vice President of the Lockton Benefit Group shared his insight on potential direct and indirect cost implications for the industry. Retailers continue to ask bakers how they are implementing sustainability initiatives within their companies. Bakers are beginning to ask sustainability questions to their supply chains. The bakers, millers and growers continue to facilitate a dialogue to help meet the retailer’s questions. Ethanol, the drought and monetary policy are all impacting U.S. and global economies that are already in a weakened state. These factors are expected to continue impacting market volatility.

Allen Shiver, Flowers Foods, discusses sustainability programs that are being encouraged by retailers as a condition of doing business.

Ken Newsome, AMF Bakery Systems, asks tough questions about the impending health care reform and the challenges it will bring to the baking industry.

Jim Munyon, AIB International, discusses AIB’s new audit tool for food safety and education — FS • 360, a program derived from AIB’s core elements of the AIB Consolidated Standards of Inspection.

Board members listen intently as Erin Sharp with Kroger Co., discusses sustainability initiatives and what their expectations are of the vendors that sell at their stores.

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ELDC Public Policy Forum ELDC Receives Political Update and Election Forecast (Continued from previous page)

The day concluded with a group dinner at Charlie Palmer Steak where Senate candidate Heather Wilson (R-NM) served as keynote speaker. To kick off Thursday’s morning program session, Chris Davis, Congressional Research Service, provided attendees with a comprehensive insider’s view at the role of congressional oversight. A preview and forecast on the upcoming 2012 elections was given by Bernadette Budde, Bipac, followed by an ABA political involvement report given by Kelly Knowles, ABA Senior Director Political Affairs. (ELDC continued on next page) Bernadette Budde, Bipac previews the upcoming election.

What attendees are saying: “Chris Davis is a terrific speaker/ teacher and makes complex issues easy to understand. Love his enthusiasm.”

ELDC Dinner sponsors Campbell Williams and Tim Marron, B.C.W. Food Products with keynote speaker Heather Wilson, Senate candidate (R-NM).

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Baker CEO Series is terrific, keep that going.”

This was my first conference. I’ll be back.”

One of ELDC most popular speakers, Chris Davis, Congressional Research Service, gives attendees a comprehensive insider’s view of the role of congressional oversight.

The program was incredibly strong. Heather Wilson was awesome.”


ELDC Public Policy Forum Industry Trends Presentation Gives Compelling Picture of What’s Ahead for the Baking Industry (ELDC continued from previous page)

Sarah Theodore, Mintel, provides a fascinating presentation on food industry trends.

Closing out the ELDC Forum, Sarah Theodore, Mintel, provided a fascinating presentation on food industry trends for 2015 and beyond. She focused her presentation on social media, target demographics, brand intervention and Asian influences on product research and development. Additional forum pictures and program information can be found on the ELDC Homepage within the ABA website at www.americanbakers.org The next ELDC Meeting will be held Sunday, April 21 in Aventura, Fla., during the 2013 ABA Convention. The meeting will be a planning session for the special ELDC event to be held at IBIE in Las Vegas next October. To learn more about ELDC activities, contact ABA Senior Director of Political Affairs Kelly Knowles at 202-789-0300 or kknowles@ americanbakers.org.

If you are an aspiring executive in this industry, you simply must participate in this important committee. You learn about the industry, about business and leadership, how the political process works and how government impacts the baking industry. This industry needs leaders — I can’t recommend ABA’s ELDC enough.”

Meet the ELDC Leadership:

Connie Vaughan, McKee Foods Corporation

Pete Frederick, Milner Milling/PFM

The networking you get at ABA’s ELDC is like no other. I’ve made friends and important business contacts by coming to this meeting each year that are important to me personally and to my business, I highly recommend this event. — Pete Frederick, Milner Milling/PFM

American Bakers AssociationELDC

ABA’s Chairman Robin Alton, Pan-O-Gold Baking Company (center right), and ABA Board member Paula Marshall, The Bama Companies, join ELDC attendees for Capitol Hill visits. Pictured: ABA members with Legislative Director Michael Lowery (center left) of Rep. Eric Cantor’s office (R-VA).

Executive Leadership Development Committee

Next ELDC Event: Sunday, April 21 during the ABA 2013 Convention

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Congressional Office Visits ABA Emphasizes Sugar Reform, Ethanol RFS and Wheat & Grain Foods Messaging in Hill Visits Over 65ABA members brought key messages for the baking industry to over 15 congressional offices as part of ABA fall meetings agenda. Members of ABA’s Board of Directors, Executive Leadership Development Committee and Legal Committee joined forces to educate Members of Congress on three key issue areas:

Key Issues for Bakers: • • •

the need for reform of the current sugar subsidy program; Continue pressure to adjust the corn-based ethanol mandate for Renewable Fuel Standard to reflect nation’s drought disaster in order to ease supply concerns and minimize commodity volatility to ensure any changes to the nutrition facts panel are based on the DGA’s and sounce science

These successful meetings also enabled ABA members to discuss the current state of the economy and provide examples of how it is impacting business. “While ABA staff are on Capitol Hill weekly advocating on our members’ behalf, having the opportunity for ABA members to speak directly to Congress and provide examples of how these issues impact their businesses’ bottom lines is a great opportunity to further hit home our key issues and policy goals for the baking industry,” said Lee Sanders, ABA senior vice president, government relations and public affairs.

ABA members meet with Sen. Pat Toomey’s (R-PA) Office

ABA members meet with Rep. Scott DesJarlais’s office (R-TN)

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ABA members meet with Rep. Joseph Pitts’ (R-PA) Office

ABA members in Rep. Mike Pompeo’s (R-KS) Office


ELDC Public Policy Forum ELDC Thanks Its Generous and Supportive Sponsors ELDC Dinner Sponsored by

Networking Reception Sponsors:

Bradley Cain, Cain Food Industries, talks with ELDC Co-Chair Pete Frederick, Milner Milling/PFM.

AMF Bakery Systems, Inc.

Cookie Break Sponsor: Jason Ward (right), AMF Bakery Systems, talks with Rich Scalise, Hearthside Food Solutions

ABA Celebrates an Industry Steeped in Heritage — At ELDC, Generations of Bakers Gather to Develop the Industry’s Future Leaders Pictured right: It’s the Zimmermans! Bill Sr., The Long Company, and Bill Jr., Pacific NW Baking Company

When the ABA/ATBI Boards meet in conjunction with ELDC, it’s almost like a family reunion!

Seen together at many ABA meetings and industry events, “Roll” model Len Amoroso, Amoroso Baking Company, is seeing to it that his son Jesse follows in his footsteps.

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ABA Fall Meeti


ing Highlights


ABA CAPC What to Expect from the Ever-Changing Markets Was the Focus at the Latest ABA Commodity and Agricultural Policy Conference Since the Band of Bakers March in 2008, ABA has focused on policies aiming to decrease today’s ever-present extreme market volatility. Whether it is the flood of index fund investment in the wheat market, policies that drive food to be used as fuel like the corn-based ethanol mandate, or the special interest fueled supply-control sugar program, ABA has led the way with solutions to help secure the baking industry’s bottom line. At the forefront of these issues has been the ABA Commodity and Agricultural Policy Committee (CAPC), which meets twice a year to collaborate on how to solve many of the most pressing commodity-related issues facing the industry. In fall 2012, the committee hosted its first Commodity and Agricultural Policy Conference, inviting speakers from across North America to speak on myriad Deputy Chief Economist Robert Johannson issues, such as the future of biotech wheat, dramatic changes to the fundamentals speaks about U.S. wheat supply issues. of the wheat market, how wheat grown outside the U.S. impacts U.S. wheat prices, and much more. ABA members attending the conference also had the opportunity to visit with congressional staff to discuss the progression of the Farm Bill, an omnibus legislative package reauthorized that set farm policies every 5 years. The U.S. Sugar Program, a program in dire need of reform, is part of the Farm Bill. CAPC plans to host another conference in March 2013 in Chicago, IL. Information on how to register for this meeting is forthcoming. For more information on commodity issues impacting the baking industry, visit the ABA website at www.americanbakers.org.

More ABA Members Sign Up for Energy Star Challenge ABA congratulates its most recent ENERGY STAR® participants, Bimbo Bakeries USA, the BAMA Companies Inc. and Turano Baking Company. Twenty one sites and 7 baking companies are now taking the challenge to reduce their energy use by 10% over the next 5 years. Participants also include East Balt, The Kroger Company, Northeast Foods, and Pan-O-Gold Baking Company. ABA is very excited to have these energy-focused bakers on board — don’t get left behind in the crowd, join the ENERGY STAR® challenge! Registering can now be done directly on-line at www.nourishenrichsustain.org/Energystar.html.

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ABA Legal Conference Successful Legal Breakout Session Covers Many Topics Members of the ABA Legal Committee came together last week in Washington, D.C. during the annual ABA ELDC Public Policy Forum. Miriam Guggenheim of Covington & Burling and Sally Squires of Powell Tate/ Weber Shandwick led a discussion on best practices in legal and communications coordination for recall and regulatory crises. Littler Special Council Michelle P. Thomas presented the group with the legal implications of the new Affordable Former Washington Post writer Sally Squires and Miriam Health Care Act Guggenheim, Covington Burling, present on communicating and ans w ered during a crisis at the ABA Legal Conference. questions about how implementation would affect ABA member companies. The group also had a roundtable discussion about the implication of California Proposition 37 - Biotech Labeling for Food and lastly, the group reviewed ABA’s response to FDA’s new photography policy for in-plant inspections. AIB International President Jim Munyon (right) speaks with Brian Bishop, Bimbo Bakeries USA, at the Legal Conference.

ABA Welcomes New Members! The Austin Company www.theaustin.com | (440) 544-2600

Nation Pizza and Foods www.nationpizza.com | (847) 348-5454

Bunzl Processor Div. www.bunzlpd.com | (816) 448-4300

Nu-Tek Salt LLC www.nu-teksalt.com | (972) 983-9343

CMC America www.cmc-america.com |(815) 726-4337

Ozery’s Pita Break Inc. www.pitabreak.com |(905) 265-1143

Handtmann, Inc. www.handtmann.com | (847) 808-1100

Pacific Northwest Baking Co. (253) 863-0373

Joseph Campione Inc. www.josephcampione.com | (414) 261-8944

REX Carton Company www.rexcarton.com |(773) 581-4115

Kudos Blends www.kudosblends.com | 01299 271333

Z Baking Company www.zbkaing.com | (847) 581-3300

Metromedia Energy, Inc. www.metromediaenergy.com (732) 982-8490

ENERGY STAR® helps companies build a culture focused on efficiency. 13


IBIE 2013 — Save the Date! The Entire Baking Industry — All Together at IBIE 2013

At the ABA Board of Directors Meeting, IBIE chairman Mike Beaty gave a brief update on the International Baking Industry Exposition, slated for Oct. 6-9, 2013, in Las Vegas. After a huge and successful event in 2010 that saw an impressive 40 percent increase in attendance, he reported that all indicators suggest that the baking industry’s largest international expo will enjoy an even more enthusiastic reception of its upcoming show. The IBIE Committee and staff have been hard at work planning the 2013 Baking Expo™ to create an event that’s all together....Resourceful. Informative. Exciting....

Resourceful... Building on the momentum of the last event, which brought more than 700 baking suppliers to Las Vegas in 2010, IBIE intends to cast its net even wider in 2013. Participants can expect to see more production equipment and computer/automation technology, packaging materials, transportation and distribution resources, safety and sanitation solutions, ingredient suppliers and much more. Product categories represented will also expand beyond baked goods to include pizza, coffee, cakes and other specialty goods. By incorporating both vertical and horizontal markets, IBIE will be a one-stop shop for attendees. Booth reservations are already tracking ahead 41 percent in square footage and 22 percent in the number of exhibiting companies compared with the 2010 event.

Did You Know?

That ABA & BEMA have been founding partners of IBIE... 14

...since 1949?


All Together at IBIE 2013! IBIE Promises to be All Together... Informative... IBIE is known for the top-quality education it provides. With input from attendees and industry experts, the education task force is developing a program that tackles head-on the issues that concern baking professionals most, and will provide the real solutions and on-task strategies needed to improve productivity and stay competitive. Partnering with key industry associations who are renowned for the professional training they provide, IBIE will host an exceptional, multi-faceted learning opportunity. Program topics will include: food safety and sanitation; retail baking challenges and trends; cake and pastry decorating; baking, pastry, chocolate and related demonstrations; ingredients and production trends; glutenfree and/or organic bakery products; as well as business and marketing programs. ABOUT IBIE

• • • • • • • •

SEMINAR SESSIONS

20,000 Attendees One MM Square Feet of Exhibit Space 800+ Exhibitors New Products & Services New Technology Demonstrations! Contests! Pavilions!

PRODUCT SHOWCASE

The industry’s largest conference puts new information, expert strategies and today’s best practices at your disposal. Focused topical coursework will include:

• • • •

Baking Technology Food Safety & Security Business Management Decorating & Baking Techniques

Stay on top of consumer trends with new product ingredient formulations

Exciting... Taking a fresh approach to each show cycle, IBIE committee members are developing various new show features, competitions and partnerships to be announced in the spring. Some oldies but goodies returning in 2013, include the B.E.S.T. in Baking program, recognizing suppliers that foster energy conservation, reduced water usage, a decrease in landfill waste, healthy living and/ or a reduction of the overall impact on the environment. IBIE will also host the 13th Annual RBA Pillsbury Bakers Plus Grand Champion Creative Decorating Competition once again, providing onlookers with their own creative inspiration. As IBIE fast-approaches, ABA members are encouraged to mark their calendars and ensure IBIE is included in 2013 budgets. Registration is expected to open in January. For more information, visit www.IBIE2013.com.

www.IBIE2013.com

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ABA Meeting Announcements

Staying Ahead of the Curve

When You Don’t Know What’s Around the Bend 2013 ABA Convention — Save the Date! April 20-24 Turnberry Isle Miami Aventura, Fla.

What Are Consumers Demanding? Latest Trends How Technology is Changing the Way Bakers Do Business What’s Ahead for the Industry

American Bakers Association ELDC

Human Resources & Labor Conference

SAVE THE DATE!

Feb. 18-20, 2013 | Phoenix, Ariz. TOPICS WILL COVER: • Labor Issues • Health Care Reform • Talent Management

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Executive Leadership Development Committee

ELDC 2013 Networking Reception At IBIE 2013 Oct. 6-9 | Las Vegas, Nevada

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