Draws Worldwide Audience in Texas | Photos
SNAXPO 2010, the world’s largest trade show devoted exclusively to international snack foods, opened in Fort Worth, TX Thursday, March 4, where nearly 1500 industry professionals from some 35 countries gathered to explore key issues and ideas, as well as opportunities to improve their businesses in the year ahead.
“This is a tremendous turnout, especially considering the current economic climate,” said outgoing SFA Chairman Terry McDaniel, President & CEO of The Inventure Group, Inc. “It demonstrates the outstanding value that SFA provides to its members.”
More than 135 exhibitors displayed and demonstrated the latest products and services available to the industry during a two-day trade show that featured cutting edge equipment and technology, ingredients, seasonings, packaging, and new product opportunities that respond to today’s snack consumers.
In addition, the trade show featured an exciting new product tasting area where dozens of new snack products that responded to today’s growing consumer interest in healthier-for-you foods and those with full flavor and spicy profiles were sampled by SNAXPO attendees.
“This is a tremendous show,” said SFA President & CEO Jim McCarthy as he walked the trade show floor, mindful of the busy booth traffic being experienced by exhibitors. “This is an outstanding opportunity for both exhibitors and attendees alike, and clearly they are taking advantage of it.”
Member Political Involvement Urged | Photos
SNAXPO’S opening session featured a dynamic presentation by Carlos Gutierrez, former CEO and Chairman of the Kellogg Company and former U.S. Secretary of Commerce, who urged SFA members to become actively engaged in defending their industry against unnecessary and potentially intrusive new government regulations. Gutierrez also warned that higher taxes are probably on the way as Congress and the Obama administration consider health care reform and new programs to tackle unemployment, among others.
“You should be concerned,” he declared, predicting that proposals to cope with childhood obesity and nutrition as well as food safety will be enacted, posing challenges to the industry, and that efforts to impose taxes on snack foods could also emerge.
“One of Washington’s favorite sports is to find a scapegoat,” said Gutierrez, who spent 30 years in the food industry before joining President George W. Bush’s Cabinet. “Don’t stay away from Washington. It’s coming very, very fast.”
Regarding snack taxes, Gutierrez said states, and perhaps even the federal government, may be tempted to “kill two birds with one stone” by imposing such levies – raising badly needed revenue to cope with spiraling budget deficits while claiming to “be improving the health of the country.”
“We should prepare ourselves for tough times,” he advised. “You can’t afford to see the world the way you want to see it. You have to assume that things will be tough before they get better. You should prepare for that. We will have a very difficult business environment for the next few years.”
During his long career in the food industry and as Kellogg’s CEO, Gutierrez said one of the most difficult challenges is deciding whether a development is a long-term trend that will influence the industry or the company for years to come, or if it is a temporary fad that could result in valuable resources being wasted if the wrong assessment is made.
Today, he said, important trends include growing interest by consumers in healthier foods, convenience, and the safety of the food they purchase for their families. “Food safety is going to be an issue over the next 10 years,” he predicted, noting that companies will be required to be able to trace their products along the supply chain and to certify that their suppliers have complied with federal law.
Food Safety, Acrylamide Update at SNAXPO | Photos
Snack food companies were advised during SNAXPO to begin preparing themselves for new food safety legislation expected to be approved by Congress later this year and for possible new restrictions on acrylamide that may be issued by the Food and Drug Administration (FDA)
Martin Hahn, SFA general counsel and a partner with the Washington, DC law firm, Hogan & Hartson, cautioned snack companies to expect FDA to attempt to prescribe maximum acrylamide levels in foods, possibly sometime during 2010. He pointed out that the agency has been studying detailed information regarding acrylamide, including comprehensive data provided by SFA.
“Acrylamide is not that easy to control,” he said. “There is no magic bullet. You can implement processes to reduce it, but you will still see some variability in acrylamide levels.”
In California, he noted, acrylamide is now covered by the state’s Proposition 65, and an “apparently acceptable” level of 275 parts per billion has been set as a maximum for potato chips. Products that exceed that level need to carry a state-mandated warning on the bag, if they are to be sold within the state.
Meanwhile, Elizabeth Fawell, an associate at the firm, predicted that Congress will approve sweeping food safety legislation sometime this year, possibly as early as May. She discussed the differences between legislation approved by the House of Representatives and that which is still under consideration in the Senate.
Despite those differences, there are basic similarities, she explained, including more enforcement power for the FDA, mandatory recall authority for the FDA, stringent recordkeeping requirements, establishment of food safety plans by food manufacturers both foreign and domestic, performance standards, registration requirements, and fees.
She advised snack manufacturers to begin preparing now, and recommended that they assess their current food safety practices, determine where potential hazards could occur, what preventive controls are in place, and how food safety-related activities are being documented.
“Prepare to engage in discussions with the FDA,” she said, “and make sure your suppliers are in compliance.”
Consumer Trends & Private Label | Photos
As the recession has forced many consumers to tighten their spending, many have turned to private label products, including snacks, to help save money, according to Darren Seifer, a food and beverage analyst with The NPD Group.
Seifer told an educational session audience on the SNAXPO show floor that 70 percent of consumers surveyed said private label products are either excellent or very good, and that 80 percent select them because they cost less. Private label snacks are consumed 81 percent of the time at home, he said, adding that 55 percent are purchased at the grocery store while 21 percent are purchased at mass merchandiser outlets, including Wal-mart.
He pointed out that Americans older than 55 years of age are consuming more snack products, including private label, than those in younger age groups, but at the same time are increasingly concerned about health – particularly sodium.
Increasingly snacking takes place more frequently in the morning and afternoon, compared to the evening hours, Seifer said. “It behooves you to innovate around your category.”
Seifer also advised brand manufacturers not to engage in price cutting with private label competitors. “Avoid a price war,” he said. “This will only serve to erode long-term margins. Let them have their way.”
SNAXPO 2010 Features Latin American Session| Photos
A special day-long program exclusively for Latin American attendees covering key issues of concern was held Wednesday, March 3 prior to the official opening of SNAXPO 2010.
Speakers included Dr. Antonio Castro Quiroz, General Director of the Center for the Analysis and Economic Projections for Mexico, who discussed "Economic Perspectives in Latin America."
Dr. Arturo Inda Cunningham, who has a great deal of experience in consulting, research and development in Mexico and Latin America, covered "Trends in Development in the Food Industry."
Mike Shawver, Business Development, Commodity & Ingredient Hedging, LLC presented a discussion on hedging, and Cesar Mendoza, Pepsico Mexico, covered other key issues.
The Latin American track was led by Andres del Bosque, Alementos Finos del Norte S.A. and Chairman of the SFA International Membership Committee for Latin America.