American Bakers Association Update. Robb MacKie, ABA President & CEO

Transcription

1 American Bakers Association Update Robb MacKie, ABA President & CEO

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3 2 'predators crossing the pond' are heading straight for Walmart & Whole Foods Two highly competitive German grocers, Aldi & Lidl, are plotting to take over the US These predators crossing the pond will shake up the US grocery market by killing off weaker chains and stealing customers from larger players most notably Walmart, Dollar General, and Whole Foods, according to Deutsche Bank analysts. The two chains' biggest competitive advantage is their cheap prices. Aldi's prices are 24% cheaper than Walmart's and 21% cheaper than Dollar General's, according to a Deutsche Bank price check in northern New Jersey. Aldi's prices are also 10% lower than Save-A-Lot and 22% lower than Kroger's, according to another pricing study in Nashville. Lidl is expected to offer a similar price point when it launches in the US. Sources: Business Insider

4 Top CPG s Experience 8-10% Unit Sales Decline

5 E-commerce the big winner CAGR 2016 to 2021 E-Commerce Convenience/Gas Dollar Pet Discount Department Club Home Improvement Liquor Auto Supercenters Supermarkets Home/Bed/Bath Mass Drug Toy Sporting Goods Books Apparel Office Consumer Electronics Department -0.9% -1.1% -1.9% 0.7% 6.1% 6.0% 5.8% 5.6% 5.2% 4.9% 4.6% 4.1% 3.8% 3.4% 3.1% 3.0% 2.6% 2.2% 2.0% 1.7% 13.4% Average Growth Sources: Nielsen TDLinx & Nielsen Analytics; CAGRs (compounded annual growth rates dollar basis); Retail Dive; Twice via MorningNewsBeat.com

6 Slow but steady dollar growth for aba member categories; unit movement slips U.S. Bread & Baked Goods: Fresh, Frozen & Refrigerated Billions Dollar Sales Unit Volume 52 weeks ending 1/5/13 52 weeks ending 1/4/14 52 weeks ending 1/3/15 52 weeks ending 1/2/16 52 weeks ending 12/31/16 Dollar Trend Unit Trend Avg U Price Trend Source: Nielsen Answers, Total U.S. All Outlets Combined (plus Convenience), All Departments, All Brands, trend means % change 52 weeks vs. year ago ~$50 billion in sales with a huge shopper base to drive shopping trips & build shopping baskets UPC-coded items

7 Top four categories represent just under 60% of all ABA-member category sales U.S. Top Selling Bread & Baked Goods Categories Dollars (billions) Fresh Bread $9.3 Cookies $7.3 Crackers $6.7 Snack Cake $6.1 Fresh Rolls & Buns $3.9 Fresh Cake Mexican Shells Other $2.0 $2.3 Fresh Pastries Fzn Waffle, Pancakes & French Fresh Bagel $0.9 $1.2 $1.4 UPC-coded items: fresh, frozen & refrigerated Source: Nielsen Answers, Total U.S. All Outlets Combined (plus Convenience), 52 weeks ending 12/31/2016

8 Commercial Baked bread # 1 driver of shopping trips Trip Drivers: Top 10 Categories Trips Per Household Bread & Baked Goods* 27 Salty Snacks 22 Milk 21 Vegetables & Herbs 21 Cheese 18 Candy 17 Soft Drinks 16 Cat Food 14 Fruit 13 Dog Food 12 UPC-coded items; *Includes baked bread, fresh desserts & snack cakes; excludes frozen & refrigerated segments Source: Nielsen Answers, Total U.S. All Outlets Combined (plus Convenience), 52 weeks ending 12/31/2016

9 E-commerce capturing small share in edible departments: amazon stronger in ABA turf E-Commerce Share of Total Dollar Sales 7% Brick & mortar retailers must be selective in choosing their non-edible battle grounds, while continuing to defend strength in edibles. Manufacturers need to balance their investments in e-commerce versus traditional brick & mortar retailing. You can t just sit on the sidelines and watch, you need to play an active role helping both sides with solutions that help their shoppers and your consumers. 2% Amazon share of e-commerce 32 1% 1% 1% 1% All Dept's Grocery Meat Bakery* Frozen Foods Dairy UPC-coded items *upc-coded: Includes baked bread, fresh desserts & snack cakes; excludes frozen & refrigerated segments Source: Nielsen multi-sourced e-commerce measurement; xaoc + total e-commerce, 52-weeks ending 11/26/2016

10 While shares are low, E-commerce is delivering exceptional growth in edibles Total Sales % $ ChgYAG E-Commerce % $ ChgYAG Grocery 2% Grocery 24% Bakery* 1% Bakery* 22% Frozen Foods 1% Frozen Foods 34% Dairy -3% Dairy 61% Meat -4% Meat 79% All Departments 2% All Departments 16% UPC-coded items *upc-coded: Includes baked bread, fresh desserts & snack cakes; excludes frozen & refrigerated segments Source: Nielsen multi-sourced e-commerce measurement; xaoc + total e-commerce, 52-weeks ending 11/26/2016

11 ABA Policy Update

12 Nutrition Facts Label Extension Fiber Definition Added Sugar Definition Small Package Format Folic Acid Calculation GMO Labeling Alignment

13 Food Safety Baking Process Kill Step Calculators New Products: Muffins / Tortillas ABA / AIB FDA Update Meeting Sanitary Transport: National Grain & Feed Association s Taskforce

14 Labor Relations Independent Contractor Test Harmonization White Collar Overtime Exemption Joint Employer Paid Leave Persuader Rule Federal Contractor Blacklisting

15 HOS Operational Exemptions High Production Holiday Exemption Memorial Day, Independence Day, Labor Day Inclement Weather State of Emergency 30 Minute Rest Break Proof of Exemption Document

16 Other Initiatives: Tax Reform Capital Expense Depreciation Tax Rate Relief Health Care Fix Trade NAFTA Re-write Retaliatory Tariffs Regulatory Reform

17 Upcoming ABA Event Opportunities

18 Front Line Leadership Training 69 Front Line Leaders from 19 Companies Leaders Return to Work Knowing How To: Transform Actively Disengaged teammates Communicate Up and Down Apply learned techniques in the workplace Dates: August 8-10, 2017 January 23-25, 2018 June 26-28, 2018

19 Fall Policy Conference CAPC Energy Legal Logistics Safety When: September 25-27, 2017 Washington, DC Don t Miss Out On: NextGenBaker Education Policy Committee Meetings Inter-Committee Networking Bakers Dozen Congressional Reception Hill Briefing and Visits

20 Technical Conference October 22-25, 2017 Hyatt Regency San Antonio Riverwalk New to Technical Conference? See what s in store: Todd Hale Presentation Leadership Speaker 8 Breakout Sessions: theoretical and practical applications provided for each session Hands-On Session focused on Fundamentals of Leavening Table-Top Exhibit Program focusing on solutions and real-life application

21 ABA B&CMA Merger Update

22 Benefits of ABA-B&CMA Merger Provide more valuable comprehensive services to best advance and strengthen our industry; Improve the effectiveness of our industry in the public policy and nutrition education arena; Improve focused, value-added education programming; and Create greater efficiency and focus to develop industry solutions to meet its needs.

23 B&CMA Education Programming Entry Level Training (ELT) Program Intermediate Level Course Cookie, Cracker Manufacturing Correspondence Course B&CMA University (Online) B&CMA Technical Conference Onsite Technical Advisor Program

24 Combined Memberships ABA 86 Baker Members 131 Allied Members B&CMA 21 US Baker Members (Non-overlapping) 69 Allied Members (Non-overlapping) 14 International Members

25 BIGGER & BETTER THAN EVER

26 ATTENDEE FEEDBACK I met vendors that I was not aware of and the classes provided me with information that will be invaluable to my business. of attendees met their business objectives IBIE far exceeded my expectations. It gave me a glimpse of the future of our Industry. in 2019 will likely attend I actually think yours is one of the best produced shows that we attend. will buy as a result of attending

27 STRATEGIC PLANNING OBJECTIVES Deliver relevant, forward thinking experience Increase attendee engagement Improve ratio of attendees to exhibitors Continue international growth Increase exhibitor retention and ROI What Do YOU Want? Leverage IBIE brand Nourish our industry

28 IBIE Proceeds Reinvested Back into the Industry Looking forward, ABA will re-invest at least $2.4 million of its IBIE 2016 proceeds back into the baking industry: $992,724: Industry Policy technical supports $862,334: GFF and other industry contributions $355,000: GFF research $120,000: Field to Market $62,000: Front Line Leader Training $53,250: Kill Step Validation $18,250: Workforce Skills Gap And more in development, with approval of the Board of Directors 28

29 Thank you for your continued support! Contact us: