IBIE - 2019 Special Edition & Show Preview - 104

INDUSTRY CHECKOFF PROGRAM

Checkoff Road Map

Launch
feasibility

Develop industry-led
petition for USDA

Assemble Steering
Committee

USDA opens public
comment period

Engage experts for
task force committees

USDA
determination
for progress

Assess
results and
present findings

Launch of checkoff for
probationary period
GFF

buns, bagels, naan, pita and other flatbread, English
muffins, and biscuits.
In industry-wide discussions about the program, the
threshold for inclusion emerged as a point of concern.
"The vision was to rally a focused group of bakers and
millers," Ms. Cochran said. "We defined that as about
80% of the market. We weren't quite sure what that was
going to be, but we thought that was the right band."
For their spend on the checkoff program, millers and
bakers should expect a return on investment of between
5 and 15 times, Ms. Cochran said.

"We've been in the huddle
for quite a few years,
trying to figure out what is
the right message from a
consumer standpoint."
Allen Shiver, past GFF chairman
"The more mature the program is, the lower that
number tends to be," she said. "The dairy program
tends to be about $5 (per dollar invested). The younger programs tend to be higher. Somewhere in there
is where we expect our return to be based on historical averages."
As an example of a successful checkoff initiative,
Ms. Cochran cited the mustache campaign of the milk
program or the "It's what's for dinner" campaign of the
beef program.

104 PreShow Guide IBIE 2019

"These campaign initiatives really changed consumer
perceptions," she said.

Bumps in the road
Checkoff programs for other industries are not without
controversy, and questions have been raised about aspects of the breadbasket program. In a townhall discussion during the ABA convention, the mandatory aspect
of the checkoff program did not sit well with Lawrence
Marcucci, CEO of Alpha Baking Co., Chicago.
"It appears that the industry is moving down this
road," he said during the townhall. "I'm kind of wondering how if I don't necessarily agree with this and how
it should be done, how do we say, 'I'm not interested in
that?' Do I get dragged along? How do we say, 'I don't
think that's a good idea. I don't want to do it.' "
The program will be subject to periodic referenda.
A number of bakers and millers spoke supportively of
the program, including Allen Shiver, a past GFF chairman and the recently retired president and CEO of
Flowers Foods, Inc., Thomasville, GA.
"I remember a football coach in high school would
say, 'It's time to break the huddle and run the play,' "
Mr. Shiver said during the townhall. "We've been in the
huddle for quite a few years, trying to figure out what
is the right message from a consumer standpoint. Now,
you can pull any IRI numbers on our category, pick any
time period you want, and see each category continues
to trend down 7%, 8%, even more than that in some
markets. We have such a great story to tell. Now is the
time to get that message out."
A few weeks later, insights into the shape a breadbasket checkoff program may take were offered by

IBIE - 2019 Special Edition & Show Preview

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