Snack World - August 2012 - (Page 13)

fat content on their packages. With a significant amount of trans fats in many snack products, the proposed regulation represented one of the most important developments the industry had faced in many years. However, by the time the new trans fat labeling law was enacted in the early 2000s, Mr. McCarthy had already orchestrated an industrywide education program, and virtually all snack manufacturers had shed this health hazard from their products. This work exemplifies how SFA’s government relations efforts are forward-thinking. “We are trying to enhance the member value through being very active or proactive in government affairs,” Mr. McCarthy said. “We’re not waiting for something to come down the pipe that would hurt the association or the industry. We’re trying to do things ahead of the game.” Because members were apprised on the pending trans fat regulation, they were able to make changes quickly. “It was not much of a burden because they had plenty of warning that this was coming.” Mr. McCarthy said. Because of the shrinking domestic membership base the result of business failures, the Borden collapse and other issues, SFA diligently changed focus to reflect the needs of the industry and that included strengthening its government relations activities at all levels. SFA also bolstered its education portfolio, which includes numerous educational offering and seminars throughout the year including the annual SNAXPO, the association’s annual event that brings attendees from companies around the world. “International members look to the United States for new technology, machinery, packaging and spices,” Mr. McCarthy said. Additionally, SFA’s printed and electronic educational materials have been and will continue to be a staple for existing and startup companies around the world. With an international reach, the SFA logo is proudly displayed on packaging in places including India, China and Latin America. sw Snacks for the New Millennium Featuring a harder, crunchier bite than traditional potato chips, kettle-style chips represents one of the fastest-growing segments in the salted snack category. Also driving salty snack sales are a variety of “better for you” products that generally play up the fact they have less fat, salt or calories than their standard counterparts. Kettle-style potato chips enjoyed a spectacular boost when Frito-Lay North America, Plano, TX, began promoting its kettle products, which quickly accounted for more than $250 million in sales. Although kettle-style chips have been around for decades, what chipmakers like about them is that even though they are more difficult to produce, they can generate a premium price. And that’s important when dealing with a commodity product like regular potato chips. However, kettle-style chips are not for every company in every market, according to David Jones, executive vice-president of operations, Golden Flake Snack Foods, Birmingham, AL. Four or five times over the past 27 years, Golden Flake has attempted to make and distribute kettle-style chips, according to Mr. Jones. “Frankly, our customers are not willing to pay a premium for kettle chips the way consumers do in other parts of the country,” he added. To boost the nutritional appeal of their products, most major regional snack food companies offer reduced-fat products and also are focusing on whole grain varieties. Obesity has become a major issue in the US, and First Lady Michelle Obama has focused on efforts to reduce obesity, particularly among children. However, snack companies were on that case a long time before Mrs. Obama took up the cause, especially in reducing fat and salt in potato chips. Terry McDaniel, CEO, Inventure Foods, Phoenix, AZ, is bullish on the health-oriented snacks trend, pointing out that it has been great for the company’s business. The company’s Boulder Canyon All Natural snack products represent the company’s fastestgrowing brand, and the company can demand a premium price for its health-oriented snacks. Developing healthier snacks is an ongoing process at Shearer’s Foods, Brewster, OH, according to Scott Smith, the company’s president and SFA chairman. “Actually the industry has already done a fair number of things to improve the healthy nature of the products,” he said. While Baptista’s Bakery, Franklin, WI, develops products for traditional snack companies, it also creates new niche products for what Tom Howe, the company’s president, called “nouveau snack companies.” Often, the focus is on the healthy snacks. “Many of them are virtual companies with no hard operating assets,” Mr. Howe continued. “They include companies like Sensible Portions Brand, Food Should Taste Good, Snack Factory and many others that are coming up with very unique and innovative products that are seeing success in the marketplace. These aren’t the companies that have been around for 200 years. These are startups that are bringing new entries into the marketplace.” www.sfa.org August 2012 Snack World 13 http://www.sfa.org

Table of Contents for the Digital Edition of Snack World - August 2012

Snack World - August 2012
Table of Contents
Letter from SFA - Please Be Involved
Supplier's Corner - Opportunities Abound
SFA Update - Drought prompts petition for renewable fuels waiver
SFA Update - Potato research yields two promising varieties
SFA Update - Coalition challenges Hours of Service rule in court
Calendar of Events
75th Anniversary - Advocating for Snacks
Snacks for the New Millennium
75th Anniversary - Mega Merger
75th Anniversary - Turbulent Times
Saying farewell to Four Industry Icons
Government Affairs - Left in Limbo
Marketing - The Snack School
New Snacks
Products & Services
Ad Index

Snack World - August 2012