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BEMA Convention 2019 - Baking Industry Update

June 21, 2019

BEMA Convention 2019 - Baking Industry Update

Baking Industry update provided at the BEMA 2019 Convention by Robb MacKie of the American Baking Association


June 21, 2019

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  1. Advocacy Workforce Development Industry Alignment Working for more than 1,000

    baking facilities and baking company suppliers which employ nearly 800,000 workers.
  2. Shift. Identify. Engage. 2019 Summer Policy Priorities FDA NFL &

    USDA BE Disclosure Labeling FSMA Compliance Trade & Tariffs FDA Nutrition Innovation Strategy Prop 65 Strategy Kill Step Calculators 2020 Dietary Guidelines DOL Joint Employer & Regular Rate Regulations Sustainability
  3. USDA’s Bioengineered Food Disclosure ABA Hosts BE Discussion • USDA

    summarized its final rule and responds to industry questions • USDA reviewed its top ten FAQs • Dialogue on Retail and Food Service Priorities • ABA, through FBIA leadership, submitted additional questions for clarification • USDA reviewing internally • Opportunity to submit additional inquiries • USDA updating its content: USDA FAQs for BE Disclosure Standard
  4. Kill Step Calculators Additional Work on Kill Step Calculators •

    In May, ABA proactively met with FDA’s key microbiologist to discuss outstanding issues • FDA identified flaws with the AIB Kill Step Calculator for food safety compliance • Current calculator overestimates effectiveness of baking as a kill step • FDA shared new research • FDA willing to work with ABA/AIB to improve tool • ABA working group engaging
  5. Wheat-based Foods Dietary Benefits Benefits of Grain Research • Wheat-based

    foods provide a wide range of essential and beneficial components to the human diet • Reducing risk of major chronic diseases (cancer, diabetes, cardiovascular disease and stroke) • Cereal fiber to be superior to fiber from fruits and vegetables • Numerous components in wheat have anti- carcinogenic effects • June webinar for Dr. Glenn Gaesser to report findings to FTRAC • Next Steps – Prop 65 Strategy Development • Coordinate with State Affairs Working Group • FDA • Other key audiences
  6. Trade & Tariffs Mexico Tariffs • Steel and Aluminum 232

    tariffs on Canada and Mexico removed. ABA was extremely active in organizing congressional pressure for removal. • On May 30, the Administration announced a 5% tariff on all imports from Mexico with incremental increases promised if the country until “illegal migrants coming through Mexico and into our country stop”. This will impact prices for raw ingredients, mixes, and goods crossing the border • New tariffs are likely be administered in a manner similar to steel & aluminum tariffs China Tariffs • Increase in scale of all existing China tariffs and introduction of list four for targeted goods • Folic Acid and other fortifying vitamins targeted, ABA preparing to file exclusions • Letter from USTR to CPB outlining possible list 3 exclusions process to come by end of June
  7. Labor Deadlines Regular Rate • ABA supporting coalition comments on

    regular rate rule • Specific note to inclusion of in-workplace food/beverage services Joint-Employer • ABA writing original comments on Joint-Employer to highlight baker specific instances of foodservice contracting
  8. PRO Act Protecting Workers’ Right to Organize Act • Introduced

    recently in both House and Senate • Democratic labor priority would: • Override State Right-to-work laws • Codify Card Check • Codify Obama-era persuader Rule • Eliminate “captive audience” meetings on LR issues • Mandate employers provide personal information on employees to unions • Likely to spur Labor-Relations conversation in 2020 Democratic Primaries/Presidential Election • ABA plans to partner with industry labor coalitions to oppose and will key vote bill
  9. Nutrition Innovation Strategy Nutrition Innovation Strategy FBIA leading strategy to

    address new FDA nutrition policy modernization: • Healthy Definition / Healthy Icon • Health Claim Modernization • Standards of Identity Modernization • Consumer Education Sodium Reduction Targets Through ABA’s partnership with the Sodium Coalition we’ve: • Completed EIA on reformulation costs to industry • OMB meeting to discuss major economic impact to industry
  10. Innovative Reports Presented at the ABA 2019 Convention Power of

    Bakery Report • Bakery is a driver for grocery sales: total bread and baked good sales surpassed $59 billion in 2018 • Emotional connections drive loyalty and build stronger brands • Cross-department bakery item sales are strong, with smaller subcategories fueling growth • Fresh is king, with shoppers focusing more on the when than the where Attracting Gen Z and Millennial Customers • Gen Z and Millennials continue to consume baked goods, but less than in the past • Food waste is a big issue for this constituency with three in four consumers bothered by wasting bread • Across all product categories, the most important nutritional descriptors are: whole grains, freshness, and natural ingredients
  11. NextGenBaker @ IBIE Ticket sales are now open! http://www.cvent.com/d/6yqjqg Thank

    you to our sponsors – BCW, Dawn Foods, Society of Bakery Women Contact Christina Donnelly with any questions [email protected]
  12. Your Team to Help Address the Workforce Issue Baking Industry

    Alliance • Identified workforce retention & recruitment as significant industry issue that warranted the group’s attention. • Initial steps: • Apprenticeship Program Survey • Help us understand what your companies are already doing and what you need. • USO Pathfinder Program • Building relationships between transitioning service members, military spouses and local baking industry companies. • Possible bases for a test launch include Ft. Hood (Texas), Ft. Stewart (Georgia), Ft. Riley (Kansas), Ft. Bragg (North Carolina)
  13. Technical Conference Education Content • Disruptive Ingredients • Changing Marketplace

    & Block Chain • Continuous Mixing • Oxidative Stability & Impacts of Oil Options • Wrapping and Packing • Bulk Ingredient • Dust Mitigation • AD and Waste Water Treatment • Clean Label • Production Equipment (Capping, Ovens, etc.) • Hiring and Promoting Tomorrow’s Leaders NextGenBaker • September 10, 2019 | Las Vegas @ IBIE
  14. Front Line Supervisor Leadership Training Leaders Return to Work Knowing

    How To: • Transform actively disengaged teammates • Communicate up and down • Leadership Principles • Tools and Techniques to improve quality through leadership • Safety and Productivity in your facility 3-Day Comprehensive Bakery-Focused Leadership Course • Production • Packaging • Sanitation • Any in-facility department employee who is on the track to be a supervisor or currently a supervisor Next Training: January 27-30th, 2020 Baltimore, MD
  15. ABA Professional Staff Robb MacKie President & CEO Hailey Blumenreich

    Marketing & Communications Coordinator Jennifer Colfelt Vice President, Finance & Operations IBIE Assistant Treasurer Zachary Decker Membership Engagement Coordinator Jack Detiveaux Manager, Government Relations and Public Affairs Christina Donnelly Director of Industry Relations & Strategic Initiatives Teresa Grant Director of Finance IBIE Finance Manager Katie Juhl Director of Communications & Marketing Kelly Knowles Vice President, Political & State Affairs Kelly Kotche Director, Membership & Engagement IBIE Registration Manager Samantha Moore, CMP Senior Director, Meetings & Education IBIE Assistant Secretary, Housing & Transportation Manager Pippa O’Shea Education Manager Lee Sanders, CAE Senior Vice President Government Relations & Public Affairs, Corporate Secretary David Van Laar Senior Advisor to the President & CEO: B&CMA Transition & Development Vanessa Vial Assistant Director of Education Rasma Zvaners Vice President, Regulatory & Technical Services
  16. Thank You & Visit Us Online www.americanbakers.org Twitter - @AmericanBakers

    Facebook - @AmericanBakersAssoc LinkedIn – AmericanBakers