2011 Management Development Program Provides Valuable Business Insights

Key issues and business practices important to snack food companies and the men and women who lead them now, and perhaps in the future, dominated the 2011 SFA Management Development Program in Dearborn, MI, October 10 and 11.

“We received a lot of great tools,” said Michael Mundell, quality assurance manager at Shearer’s Foods, Brewster, OH. “There were powerful presentations that provided information and insight that we can take back and put into practice.”

A highlight of the conference was a tour of the Better Made Snack Foods plant in Detroit, where attendees saw the production of the company’s potato chip, popcorn and potato stick products. The group was welcomed by Better Made President Mark Winkelman, who said the management conference was “a great opportunity to learn and a great way to move our industry forward.”

The agenda covered an overview of governmental relations developments by SFA President Jim McCarthy, an update on developments involving acrylamide, a highly popular session on negotiation techniques, an update on the new food safety law and its impact on snack food companies, a dynamic presentation that focused on selecting and managing top level employees, and an insightful discussion on business ethics. Two breakout sessions covered social media opportunities and time management.

“The presentations were right on target to what we as a group need,” commented Doug Meyer-Cuno, president, Carolina Ingredients, Rock Hill, SC, a member of the conference planning committee.

As the program came to a close, Scott Smith, president, Shearer’s Foods, Inc., and SFA first vice chairman, encouraged attendees to remain as active as possible in the SFA, which he said has been an invaluable resource to him during his 10 years in the industry. “It has been a great place for me to network and learn about trends and issues,” he said. Smith outlined the development of Shearer’s Foods new manufacturing facility, the first manufacturing facility in the U.S. certified at the LEEDS Platinum level for environmental sustainability.

Government Relations

SFA President Jim McCarthy outlined the association’s efforts to minimize the impact of the new Food Safety Modernization Act on companies in the industry, including meetings with top Food and Drug Administration officials. A key goal, he said, has been to reduce the regulatory impact on small companies.

He said SFA has been working against initiatives that could result in snack foods being eliminated from the federal food stamp program, as well as in opposition to unreasonable restrictions on sodium in foods.

SFA sees efforts to develop “voluntary” limits on children’s food advertising as the first step toward mandatory controls, McCarthy said, adding that many demands by special interest groups for further controls are unreasonable.

Regarding acrylamide, McCarthy said SFA has provided data to the FDA, and is considering submitting additional data to show the industry is reducing acrylamide in products. Two seminars have been held and an SFA white paper is being finalized.

He said SFA efforts have helped achieve a reduction in Mexican tariffs on foodstuffs from the U.S., an important factor for pork rind companies, adding that he hopes those tariffs will be eliminated. He also cautioned companies that the Internal Revenue Service is looking closely at how companies use independent contractors, and said SFA supports the rights of companies to use independent operators to service their routes. He said SFA also opposes Obama Administration efforts to further restrict drivers’ hours of service.

Acrylamide

Dr. Shari Plimpton, Center for Innovative Food Technology (CIFT), brought attendees up to date on developments regarding acrylamide, currently being considered for restrictions or controls by the FDA because it is considered a human carcinogen.

The agency is working on a draft report expected to be finalized within about a year, she said. Meanwhile companies in the industry were encouraged to take steps to reduce the formation of acrylamide, common in potato chips and other foods as a result of the frying process.

The SFA white paper, authored by Dr. Plimpton, will address the details involved and offer recommendations for companies to consider.

Some mitigation efforts she discussed during her conference presentation include:

• Reduction of sugar in potatoes, including peeling, washing and blanching
• Reducing bruising
• Use of acidification such as bisulphate of soda
• Minimizing heat
• Managing moisture content
• Sorting for defects
• Keeping color light.

Food Safety Update

Dr. Paul A. Hall, A/V Microbiology & Food Safety Consultant, LLC, provided an update on implementation of the Food Safety & Modernization Act, stressing that it will impact snack food operators, both domestic and foreign.

The new law will result in more frequent inspections, he said, and encouraged companies to move quickly to develop the food safety plans now required. There is nine months left before the deadline, he said.

An important provision is mandatory recall authority now in the hands of the FDA, he said, adding that FDA is currently writing regulations to implement all of the law’s provisions.

The agency, he said, is trying to be as transparent as possible in the process. “They are trying to figure out how industry can collaborate with them as they roll this out,” he said.

On October 1, FDA began implementation of fee provisions for reinspections. Dr. Hall noted. “If they have to come back in to your company, you will get a bill from the agency.” The fee will be $224 per hour – if there is no foreign travel involved. In addition, companies that fail to comply with a recall order will cover all food activities performed by FDA related to the recall.

The law does not require companies to provide complete traceability of their products and ingredients, instead requiring details on the immediate supplier and immediate product destination. But Dr. Hall encouraged manufacturers to work towards that complete traceability goal.

“The closer you can get to full pedigree traceability, the better off you will be,” he said.

Negotiating for Success

Negotiation expert Jack W. Kaine discussed steps that business people can take to improve their success, advising attendees to focus on negotiating – not bargaining.

“When you bargain, you focus on who’s right; with negotiating, it’s what’s right,” he explained. “You want deals that last, and any agreement that favors only one party won’t last.”

Kaine advised attendees to approach every negotiation with the attitude that there is always a better deal than is first apparent, and offered several rules for successful negotiations.

“That session was especially helpful,” commented Tony Sebben, director of product development at Plastic Packaging Technologies, St. Louis, MO. “Discussing the difference between negotiating and bargaining was enlightening.”

Human Resources

Cyndi Gave, the Matiss Group, led two sessions that focused on hiring the best possible employees and then how to get the most out of those superstars.

She encouraged employers hire employees for their “hard skills,” such as having the right education and experience, as well as for “soft skills,” such as having positive attitudes, enthusiasm, loyalty.

She said the top reasons employees leave for other opportunities are:

• The job is not what they expected
• The job doesn’t fit their talent or interest
• No feedback or coaching
• No hope for career growth
• Feel devalued and unrecognized
• Overworked and stressed out
• Lack trust or confidence in leaders

Gave provided details on how to develop a sound selection process and conduct effective interviews. She then discussed leadership practices proven to successfully retain top employees and help them succeed.

Social Media

Social media expert Chadwick Conte, Conte Media, detailed steps that snack companies can take to leverage the benefits of such social media outlets as Facebook, Twitter and LinkedIn.

He outlined the advantages that include the ability to attract new customers, build a loyal customer base – especially among younger consumers, and benefit from word-of-mouth advertising.

He cautioned, however, that using social media requires constant attention, and for most companies, dedication of a fulltime staffer or outside support. He offered specific steps as to how companies can achieve significant benefits at a reasonable cost, and gave examples.

“If you participate, it can work for you,” he said.

Business Ethics

Dr. Christopher Bauer, a psychologist and business ethics consultant, stressed the importance of companies having a clear, easy to understand and apply standard of ethics for all employees.

“Most companies don’t have ethics training until there is a problem or even a notice of legal action,” he said. “It’s just like the red light on the dashboard of your car. If it comes on, the damage is already done.”

Dr. Bauer led a highly interactive session that engaged the audience in exercises to demonstrate how to deal with questions of ethics. Attendees were each given a copy of his book, "Better Ethics NOW: How To Avoid The Ethics Disaster You Never Saw Coming.”

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