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2011 ABA Convention Special Edition

Bulletin

1300 I Street, NW • Suite 700 West • Washington, DC 20005 • 202-789-0300 PH • 202-898-1164 FAX • www.americanbakers.org

Former Walmart CEO Lee Scott provided very frank and candid insights into Walmart successes, misses, and supplier relations under his leadership. David Orgel, Supermarket News, conducted a thorough interview on topics from direct store distribution systems and supplier relationships, to key Walmart initiatives such as sustainability and healthy food offerings.

“I don’t think bakers hear this a lot, but in terms of shelf turns, baking is well ahead of other industries,” said Scott. “I would urge bakers, however, to continue to reduce distribution costs and distance to stores.”

With regard to supplier relations, Scott implored bakers to not be shy about bringing new products, process and distribution innovations, and market research to Walmart’s attention. While not backing down from Walmart’s legendary strict supplier-vetting process, Scott said, “We want you to select Walmart and we want you to succeed.”

Former Walmart CEO Provides Frank Insight: “Bakers Ahead of the Curve”

(Continued on following page)

Walmart Chairman Lee Scott answers bakers’ most pressing questions regarding today’s retail marketplace.

Find Out What Was “Nourishing” at This Year’s Convention!Herman Cain Describes Attributes of True Leaders — page 3 Kevin Higar Explores Commercial Baking Opportunities — page 4

Fortification Panel Highlights Milestones of Grain Enrichment Success — page 5

American Bakers PAC Dinner and Roundtable Session with Newt Gingrich — pages 6-7

Morning Business Sessions Sponsored by

Retail Speaker Sponsored by

2011 ABA Convention70 thCelebrating the Anniversary of the Enrichment of Flour &Enriching

Bodies Lives

2010 ABA Convention Overview

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Convention Overview

Once again a true “who’s who” of the industry gathered together – executives and the up-and-coming; veteran convention goers and newcomers; and as always, a stellar supporting cast of spouses, guests, and speakers.

Attendees will most remember the very candid interview with former Walmart Chairman Lee Scott, the evening with Speaker Newt Gingrich, and the many other sessions that made this year’s event both a success for ABA and a fitting celebration of the 70th anniversary of flour enrichment.

“The benefits are truly unparalleled and the wealth of information is essential to staying on top of the many and constantly changing issues in our industry,” said one attendee.

Of course, attendees found time to take a break from business and enjoy beautiful Texas Hill Country at the networking receptions and the Paul Abenante PEC Golf Tournament, which this year included a notable first—a winner in the Harley Davidson hole-in-one contest!

Chairman Allen S h i v e r p r o b a b l y summed it up best when he remarked, “While

these are challenging times for our industry and our country, from the turnout and energy here at the ABA Convention it is clear that the baking industry is healthy and vibrant.”

ABA once again offers a generous thank you to its sponsors, as well as all who attended and contributed to another fabulous gathering. ABA staff is already looking forward to seeing where the coming year takes the industry, and reuniting everyone next spring. Until then, enjoy the recap and mark your calendars for April 14-18 in Scottsdale, Arizona!

Another ABA Convention Tops All Expectations

Walmart Chairman Lee Scott(Continued from previous page)

Scott also strongly encouraged bakers and their allied suppliers to incorporate sustainability into their core business practices and not think of it as philanthropy. On several occasions he talked about Walmart’s new initiative to promote healthy and affordable food. He also discussed his strategy of recruiting leaders who “were better than I was” and giving them all the credit for Walmart’s success.

Orgel, tongue planted firmly in cheek, asked Scott if he harbored any future political aspirations alluding to the two erstwhile presidential candidates on the ABA Convention program. “I have a keen interest in what is going on in the world around us and whether our country will succeed in the global competition for trade, business and talent,” said Scott. “However, to run for office would require reliving portions of my life.”

Business Sessions Coffee Break Sponsored by

Lee Scott welcomes bakers’ questions before his presentation.

ABA Chairman Allen Shiver, Flowers Foods, welcoming attendees to the 2011 ABA Convention

ATBI Breakfast

Herman Cain shares tips on leadership garnered from his many years in the food industry and local politics.

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Herman Cain, former CEO of Godfather’s Pizza and potential candidate for President of the United States, spoke at the Allied Trades of the Baking Industry annual breakfast. Cain focused on what it takes to be a successful leader, inspiring attendees to set goals and build realistic expectations for employees. “There is no calamity in dying without reaching your goals,” said Cain. “The calamity lies in dying without having any goals. A leader’s job is to ask questions all the time, especially of those closest to the customer.”

Cain also urged attendees to remain active in politics in order to protect the industry. “Your businesses are under attack more by government than by your competition,” said Cain, referencing myriad new regulations that could make it more difficult to keep the industry profitable. Cain ended by challenging attendees to ensure that everything they are doing will make the world a better place for future generations.

Herman Cain Imparts Attributes of True Leaders

Baker of the Year Honored at ATBI Breakfast

Members of the Turano team with Mark Sabo (center left) of Sosland Publishing being honored as “Baker of the Year.”

Sponsored by

Herman Cain accompanied by ATBI Breakfast sponsors from American Pan/Bundy Baking Solutions.

Robin Alton, Pan-O-Gold Baking Company, greets Herman Cain.

Herman Cain meets “Baker of the Year” Ron Turano of Turano Baking Company.

‘

Business Sessions

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Technomic Director of Research & Consulting Kevin Higar led an informative presentation on emerging trends in the baking industry. His focus was on what the consumer would want – more artisan products, getting back to tried and true recipes, and high-quality ingredients.

Higar predicted that commercial “borders” would continue to grow, noting the increasing success of mobile food vending, especially in urban areas. The food served from mobile vending is often high flavor, high quality and unique. On artisan appeal, he focused on unique bakery products that could not be easily replicated at home. With the topic “back to our roots,” Higar hallmarked high-quality, old school, baked goods that “our grandparents would have made from scratch,” or products that were based on well-established recipes. He mentioned that modern twists on traditional recipes – a reinvented cupcake — offer a new product and excitement.

Higar echoed the importance of high quality ingredients in his “what’s inside that counts” discussion. He pointed out that while there is a trend to offer a small bite indulgence, on the opposite end, there is still interest in extra large sized baked goods. He also noted an increase in unique baked goods served in a restaurant, such as beer biscuits

and cinnamon rolls – providing a unique magnet for repeat customers. In closing, Higar mentioned that the components that make up the baked goods – what he called the back story – are

increasingly interesting to consumers. Gluten free, locally-sourced ingredients, and unique components are all on the upswing with consumer preferences.

Expanding Boundaries of Commercial Baking Opportunities

Kevin Higar, Technomic

Kevin Higar Sponsored by

Commodity expert Jim Bower, Bower Trading

“Be Quick, but Don’t Hurry” When it Comes to the Wheat Market

“Be quick to prepare yourselves for the next move, but don’t rush that move,” urged Jim Bower, president of Bower Trading, referring to the need to be constantly prepared

for the ever changing wheat market. “This market will not trade like last year. It’s a new market every day. You have to be prepared to make adjustments throughout the trading day.”

Bower focused on the major influencers in the market today, including global food inflation, energy costs, the value of the dollar, and continuing USDA crop reports. When asked if index funds were

influencing prices in the market, Bower’s answer was simple: Yes. It has been ABA’s contention for many years now that index funds play a pivotal role in price volatility in the wheat markets. Bower ended his remarks with a warning – should wheat not receive the proper amount of rain in April, this year’s crop could suffer and prices would rise accordingly.

ABA President & CEO Robb MacKie; Dave Murphy, Mother Murphy’s; Jim Bower, and Rich Hoskins, Colborne Foodbotics

Jim BowerSponsored by

Afternoon Business Session Sponsored by

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Business Sessions

Fortification Panel Highlights Milestones of Grain Enrichment Success

A panel of experts helped ABA Convention attendees celebrate the success of flour enrichment during its 70th year. Moderator Judi Adams, RD, president of the Grain Foods Foundation and Wheat Foods Council, began the session by outlining the historic milestones of enrichment and fortification.

Sylvia Melendez-Klinger, Hispanic Foods Communications founder, provided new information surrounding Hispanic health trends. With the Hispanic demographic’s rapid growth (one in six in the U.S. are Hispanic with a total U.S. Hispanic population of 50.5 million), she reported that this would be a key group to monitor.

Dr. Mary Serdula, medical epidemiologist, Centers for Disease Control and Prevention (CDC), provided an informative overview of the Global Flour Fortification Initiative that encompasses 60 countries. She also spoke about the health impacts of neural tube defects and spina bifida including lifetime-associated costs – approximately $460,000 for each afflicted.

Katharine Kreis, director, policy and advocacy, Global Alliance for Improved Nutrition (GAIN), discussed her organization’s role in developing

countries and outlined how enrichment is a cutting-edge technology and critical tool in these countries. She said that in 25 countries where GAIN has worked, through flour enrichment and other food fortification, it has reached 400 million people in the last 10 years. Kreis noted that it usually takes 20 years to roll out a new public nutrition intervention, but it has only taken GAIN 8 years, which is a great achievement.

Through very thought-provoking dialogue, the panel addressed the role of folic acid in enriched products and the potential to expand to other products such as whole wheat and corn flours; the impact of increasing food prices which has pushed people back to acquiring basic food staples; iron fortification in curbing malaria deaths; salt fortification and whether it was appropriate to lower sodium levels; and what would be considered optimal U.S. enrichment levels.

Executive Leadership Development Committee Plans 2011 Activities

Under the leadership of Executive Leadership Development Committee (ELDC) Co-Chairs Miles Dennis, Flowers Foods, and Tim Marron, BCW Food Products, attendees representing all levels of seniority within the baker and allied industries, brainstormed new and innovative ideas for the 2011 ELDC Public Policy Forum to be held Sept. 21-23 in Washington, D.C.

“We had an outstanding turnout and productive planning session for ELDC,” said Co-Chair Miles Dennis, Flowers Foods. “Moving forward, I hope we can continue to strengthen baker involvement in ELDC and promote our positive message of ABA stewardship and professional development within the industry.”

To learn more about ELDC and how your company can become involved, please contact ABA Director of Political Affairs Kelly Knowles, at 202-789-0300 or kknowles@americanbakers.org.

Panel Sponsored by

Sylvia Melendez-Klinger, Hispanic Foods Communications founder

Enrichment panel (from left): Katharine Kreis, director, policy and advocacy, Global Alliance for Improved Nutrition; Dr. Mary Serdula, medical epidemiologist, Centers for Disease Control and Prevention; Sylvia Melendez-Klinger, Hispanic Foods Communications founder; and GFF & WFC President Judi Adams.

American Bakers Association ELDC

Executive Leadership Development Committee

BBQ Lunch Sponsored by

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American Bakers PAC Dinner

Dinner Sponsored by

“Every year we raise the bar with American Bakers PAC,” said PAC Chairman Steve Avera, Flowers Foods. “This year proved to be no exception, and keynote speaker Newt Gingrich did an outstanding job motivating and entertaining the large crowd gathered on Monday night for the PAC Dinner.”

More than $140,000 was raised – the most successful PAC event in ABA history – with nearly 200 baker and allied members gathered in support of American Bakers PAC’s primary fundraiser of the year.

“I am extremely pleased to see this kind of turnout by the membership in support of ABA’s political involvement activities,” said ABA Chairman Allen Shiver, Flowers Foods. “Clearly, ABA members understand the need for a strong and united political voice in today’s volatile business climate.”

“The American Bakers PAC Dinner continues to grow in stature every year thanks to the leadership of Chairman Avera and the ABA membership,” said ABA Director of Political Affairs Kelly Knowles. “ABA is also grateful for Berry Plastics’ continued generous sponsorship of the dinner.”

To learn more about ABA’s political involvement programs, please contact ABA Director of Political Affairs Kelly Knowles, at 202-789-0300 x109 or kknowles@americanbakers.org.

PAC Dinner Raises Record $140,000

American Bakers PAC keynote speaker Newt Gingrich told ABA baker and allied members, “Unlike ever before, the business community has an incredible opportunity to influence and engage in the 2012 presidential election. If you win the argument you will win the vote – and the baking industry must make its voice heard on Capitol Hill.”

Bob and Sherri McGuire, Alpha Baking Company, with Newt Gingrich

Above: Dinner Sponsor Bill Gross, Berry Plastics Corporation, with Newt Gingrich

Below: Dan and Susan Babin, Bimbo Bakeries USA, with Newt Gingrich

Brad and Suzanne Alexander, Flowers Foods, with Newt Gingrich

Below: PAC Roundtable Hospitality Sponsors Ken and Linda Newsome, AMF Bakery Systems, with Newt Gingrich

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American Bakers PAC Roundtable

Hospitality at the Roundtable Sponsored by

“Newt Gingrich engaged our group in a very dynamic and interesting discussion at the Roundtable,” said American Bakers PAC Chairman Steve Avera, Flowers Foods. “Speaker Gingrich made sure that everyone contributed to the discussion on key issues important to ABA member companies and the broader business community.”

The rising cost of commodities, access to skilled workers, repeal of the new health care law and the Obama Administration’s overall impact on the business community were the main topics of discussion at the American Bakers PAC Business Roundtable.

“I attend the PAC Roundtable because it is an excellent opportunity to engage in a thoughtful and candid discussion about national politics and its impact on my business and the industry,” said Ken Newsome, AMF Bakery Systems. “I also enjoy networking with other baker and allied members in this more casual setting.”

The Roundtable was attended by American Bakers PAC members who pledged at the $2,500 level or higher. Baker and allied members held a very candid discussion with Speaker Gingrich in the special, closed-door session. AMF Bakery Systems generously sponsored the hospitality break for the VIP attendees.

To learn more about ABA’s political activities, contact ABA Director of Political Affairs Kelly Knowles at 202-789-0300 or kknowles@americanbakers.org

American Bakers PAC VIP Contributors Sit Down with Newt Gingrich

Bill Paterakis, Northeast Foods, meets Newt Gingrich

Fred Springer, Burford Corporation, meets Newt Gingrich

Liz and Russ Bundy, American Pan Company, meet Newt Gringrich

Albert Lepage, Lepage Bakeries Inc., with Newt Gingrich

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2011 ABA Convention Highlights

Convention Highlights

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2011 ABA Convention Highlights

Ron Turano, Turano Baking Company

ABA Board of Directors Meeting

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ABA President & CEO Robb MacKie and ABA Chairman Allen Shiver, Flowers Foods, lead the ABA Board meeting.

ABA Board Conducts Vibrant Discussion of Front of Pack Labeling

At the recent ABA Board of Directors meeting, the growing number of nutrition labeling proposals was thoroughly evaluated and discussed. After outlining initiatives of the Obama Administration, the Grocery Manufacturers Association (GMA), Food Marketing Institute (FMI), and several retailers, the board expressed support for voluntary efforts with one caveat — ensuring that the health benefits of whole grains be included in any voluntary front of package nutrition labeling initiatives. ABA will be following up with the GMA and FMI as well as with Obama Administration officials.

The ABA Board also engaged in a productive dialogue with AIB International President Jim Munyon and Chair Dan Babin regarding enhancing AIB’s food safety audit program. “ABA is eager to work with AIB to ensure its continued

preeminent position in the rapidly changing food safety environment,” said ABA President & CEO Robb MacKie. “Ultimately, it is our hope that this effort will lead to stronger and, therefore, fewer audit regimes that bakers must conduct.”

Paul Hetherington, Baking Association of Canada; Bowman Williams, B.C. Williams Bakery Service; and Kerwin Brown, BEMA

Board Member Honored

Gary Edwards, Lallemand/American Yeast, is honored for his years of service as the ATBI representative on the ABA Board of Directors.

The ABA Board also heard an update on ABA’s policy priorities for 2011. After a series of discussions regarding nutrition, food safety, environment and safety and human resources issues, the board affirmed the results of the 2011 Policy Priority Planning meeting held in January. At that meeting the ABA Executive Committee and policy committee chairs set ABA’s priority issues for the year. Board Guest Dave Singer, Lance Foods

ABA BOG & All Membership Meeting

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With almost 100 new members in Congress, bakers have a wealth of new opportunities to achieve success on the industry’s top policy priorities. ABA’s Committee Chairs shared their priorities and strategies for success during the Board of Governors and All Membership Meeting. “ABA’s committees are where the work of the industry is done, whether it’s developing policies or collaborating on solving industry challenges,” said ABA Chairman Allen Shiver. “The return on investment

ABA Committees Map Strategies for Success

ABA Membership Meeting Coffee Break

Sponsored by

ABA Committee Chairs

having our companies’ executives participate in ABA Committees is enormous and critical to the baking industry’s success.” The committee chairs outlined a diverse list of priorities: volatility in today’s market that equals millions in undue financial risk; the baking industry’s ongoing sustainability initiative to nourish, enrich, and sustain; implementation of the Food Safety Modernization Act; health care reform part two; worker safety; and food for fuel.

FTRAC Chair Len Heflich, Bimbo Bakeries USA

Energy & Environmental Committee Co-Chair Jim McKeown, Bimbo Bakeries USA

Human Resources Committee Vice Chair Chris Knipp, Hostess Brands

Safety Committee Chair Max Waagner, Dawn Food Products, Inc.

Distribution Task Force Chair Bob McGuire, Alpha Baking Company

Commodity & Agricultural Policy Committee Chair Hayden Wands, Earthgrains Baking Company

ABA makes me aware and helps me manage regulatory

and technical issues. It scares me to even think of doing this on my own.

—LenHeflich,Bimbo Bakeries USA

Faced with today’s ever-changing andvolatilemarkets,allmember

companies should have a representative on each of ABA’s various committees.

HaydenWands,Earthgrains Baking Company

—

Sports Day!

Golfers Delighted and Surprised to See Golf Pro Tom Kite The weather may have been gloomy, but the

golfers’ spirits weren’t! Joined by ABA’s annual pro Dennis Satyshur, this year’s golf pro was Tom Kite, much to the golfers’ delight. Golfers were in for another treat — a visit from a special guest for whom the Paul Abenante PEC Golf Tournament was named — former ABA President & CEO Mr. Paul Abenante himself! It was a joy for many to catch up with their old friend and colleague. This year’s tournament was a success thanks to its generous sponsors who contributed nearly $46,000 in sponsorships and raised $26,000 in PEC funds.

Golf Breakfast

Designed to Perform. Backed by Service.

Golf Pro — Tom KiteMcGAHEE, LACY and ASSOCIATES

Packaging Specialists

Golf Pro —Dennis Satyshur

Golf Trophies Golf Prizes

Golf HatsBeverage Carts

Golf Balls

Sports Luncheon

Golf Tournament Sponsors

Thank You Sponsors!

1st Place Winners! 2nd Place Winners!

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Paul Abenante greets ABA’s current leader Robb MacKie before making remarks at the Sports Luncheon.

Sports Day!

Nick Marcucci, Gonnella Baking Company, Wins Harley Davidson in Hole-in-One Contest!

Hole-In-One Sponsored by

The crowd of onlookers erupted in cheers when Nick Marcucci hit his hole-in-one shot late on Tuesday morning. The stunning shot was all the more impressive considering the heavy fog that had blanketed the course during the early morning, delaying the tournament. Congratulations Nick!

Congrats Nick!

Tennis Tournament

Above: Mario Somoza, Pan Pepin Inc. Left: Peggy Brown, ConAgra, Inc.

Above: Ron Lucchessi, Gonnella Baking Company

Right: Mary Miller, Kwik Lok, Inc.

Fog didn’t deter ABA’s tennis players from hitting the courts in a competitive, round-robin

tournament. This year’s group of players ranged from young newcomers to court veterans. As always, they enjoyed the

outdoor fun!

Tennis Tournament Sponsored by

w w w. k w i k l o k . c o m

ABA BOG & All Membership Meeting

“Nourishing Today’s Families”

GFF presentation highlights:

www.gowiththegrain.org14

The Grain Foods Foundation (GFF) presentation during the ABA Board of Governors/All Membership Meeting was led by Foundation President Judi Adams with Mullen VP and Account Director Kristin Patterson and Account Supervisor Jennifer Geiger. A short video about the history of enrichment of bread and other grain foods opened the presentation.

Patterson reminded the audience of GFF’s goals and talked briefly about the best ways to reach GFF’s target audience — women between the ages of 25 and 45. This audience is primarily influenced by customer testimonials, blog reviews and friends and family. With more than 500 million people actively involved with Facebook; at least 190 million people registered on Twitter; and YouTube as the third most visited site on the Internet, social media has eclipsed brand sites.

Adams gave an overview of GFF’s scientific advisory board and how it has helped the industry by correcting inaccurate information in the media and being proactive in promoting grains in the diet. The emerging gluten-free trend has been increasing rapidly because of false promises for losing weight, curing Alzheimer’s, Multiple Sclerosis, and numerous other ailments.

The “French Atkins” diet, known as the Dukan diet, has been catching hold in Europe and is expected to roll out in the U.S. April 19. It shuns most carbohydrates, including grains and fruits, focusing on lean protein and oat bran. It, like the Atkins diet, is not healthy, but many people are looking for that magic bullet.

Adams also reported on GFF’s partnership with the March of Dimes and how the “Bread Trail” public service announcement (2008) was continuing to be shown on television. To date, GFF has garnered $15 million in free advertising value.

Geiger wrapped up the fall “Every Night is Sandwich Night” campaign with the Deen Brothers. GFF uses social and traditional media, bloggers and paid advertising to encourage families to have at least one sandwich night a week at home. The campaign resulted in more than $155 million impressions and a 160 percent increase in GFF Facebook fans.

P a t t e r s o n e n d e d t h e presentation by unveiling GFF’s spring program with Share Our Strength, the nation’s largest hunger organization which targets only kids. The continued Bread Art Project educates people about the value of grains in the diet while helping feed hungry children. Go

to www.BreadArtProject.com to donate a piece of your very own creation of bread art. (It’s free!)

Teri Hatcher from “Desperate Housewives” is the new spokesperson for this campaign. The launch in Los Angeles was April 15 and another event was scheduled for May 10 in New York City.

What’s Next for GFF? Industry Veteran Honored

Guy Shoemaker (right) is presented with a portrait of Congressional Golf Course in honor of his retirement after a long-time career at Horizon Milling LLC and his dedicated service to ABA and the baking industry.

Welcome Reception

New Attendee Reception

Networking

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Sponsored by

Sponsored by B.C. Williams

Bakery Service

Networking

Sponsored by

“Denim & Diamonds” Farewell Reception

Cocktail Reception

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BARTLETT

Sponsored by the Millers: