Milling & Baking News - April 12, 2016 - 7

Editorial

Way noted to baking prosperity

t isn't unusual for the "changing of the guard" at networking, having halted its Washington advocacy
the American Bakers Association to present a study work more than a decade ago. By folding its activiin contrasts when it comes to the outgoing and in- ties under the A.B.A. umbrella, the groups would be
coming chairmen. The leadership transition occurring achieving synergies and, more importantly, would
in 2016 is especially striking. The incoming chairman, allow a single association to speak on behalf of the
Fred Penny, is president of Bimbo Bakeries USA, the entire baking industry. Measured by retail sales, the
largest company ever operating in the history of U.S. cookie and cracker categories combined are about the
baking. A 32-year veteran of the industry, Mr. Penny's same size as the fresh bread and rolls category. Bringcareer mirrors the extraordinary change that has buf- ing the A.B.A. and B.&C.M.A. together would, in effeted wholesale baking since the 1980s. With paychecks fect, double the clout of the baking industry at a time
over his career that have read "Entenmann's," "Gen- when a clear, strong voice is needed more than ever.
eral Foods," "Kraft," and "George Weston Bakeries,"
The A.B.A. in recent months rightly has highlighted
as well as B.B.U., Mr. Penny has had a front row seat a string of legislative and regulatory successes that
to baking's amazing consolidation and altering own- have meaningfully benefited its membership. From
ership. The corporate parent of his current company, issues more narrowly focused on the baking industry,
Grupo Bimbo S.A.B. de C.V., is
such as a manageable timetable
emblematic of one side of toBringing the A.B.A. and B.&C.M.A. for the phase-out of partially
day's industry - a corporation
hydrogenated oils, to matters
together would, in effect, double
focused first and foremost on its
the clout of the baking industry at of broader concern, such as the
baking business.
a time when a clear, strong voice is repeal of country-of-origin laIf Mr. Penny represents the
beling, the A.B.A. is playing a
needed more than ever.
essence of traditional baking,
meaningful role in changes that
the outgoing chairman, Richard G. Scalise could be require thoughtful and tenacious advocacy. The big
pegged at the opposite side of the spectrum. Mr. Scalise issue that "got away," a national labeling standard for
is president and c.e.o. of a company in which baking is foods containing bioengineered ingredients, undernot even included in its name - Hearthside Food So- scores the importance of maintaining a concerted and
lutions. Many of the company's principal products - continuous effort in pursuit of the industry's interests.
snack bars, granola and ready-to-eat cereal - typify the The A.B.A.'s successes justify continued support and
broadening reach of grain-based foods. The companies optimism for the future.
where Mr. Scalise worked before Hearthside similarly
Even as bakers struggle with issues relating to biocould be characterized as specialty baking businesses, engineered ingredients and challenges encircling perincluding the frozen bakery operation of Ralcorp Hold- ceptions of flour-based foods, observations during the
ings. The private equity ownership of Hearthside is an A.B.A. annual meeting coming from customer panels
emerging force across grain-based foods.
pointed to opportunities for the industry to prosper.
As chairman, Mr. Scalise is credited for his effective Between the runaway success of the Patti LaBelle
and amiable leadership of the A.B.A. but also for fre- sweet potato pie at Wal-Mart Stores, Inc. and a move
quently reminding his peers of the need to think of at Wendy's Co. restaurants to use value-added buns
the industry more broadly than sliced bread and rolls for sandwiches, baking industry customers pointed
and snack cakes. A mark of success in this transition the way to growth by baking companies that develop
is the serious consideration being given to a merger products capturing the imagination of ever more adof the A.B.A. with the Biscuit and Cracker Manufac- venturous and demanding consumers. Even as Walturers Association, two of the oldest trade groups Mart, Wendy's and specialty retailers grapple with
in the industry. The B.&C.M.A. has limited itself in seismic changes in their different markets, the way is
recent years principally to education, training and clear to a bright future for bakers who adapt. MBN
L. JOSHUA SOSLAND, EDITOR
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