Milling & Baking News - January 15, 2019 - 7

Editorial

Progress toward baked foods checkoff program

n the multi-year marathon required for the launch for a grain-based foods checkoff will be high. Specifiof a checkoff program, there is no more important cally, millers and bakers want to see in the program's
mile marker than one announced late last month first year or two evidence the trajectory of bread basby a committee of the Grain Foods Foundation. Fol- ket product sales has been altered favorably as a relowing years of study, many months of soliciting in- sult of checkoff program activities.
dustry feedback and honing its plan for a checkoff
Fortunately, the track record of the checkoff system
program, the committee concluded adequate support gives baking and milling executives confidence that
has been secured to submit a draft order to the U.S. progress is possible even with the modest investments
Department of Agriculture.
proposed. The G.F.F. used the canned food industry as
When the Department accepts the order, a 60-day pub- a case study for what may be accomplished. Looking
lic comment period will commence. Subject to the out- to stem the decline in a category that is even more out
come of the public comments, the U.S.D.A. will give its of favor than flour-based foods, the canned food indusnod to the program and launch assessments of participat- try launched a modest integrated campaign aimed at
ing millers and bakers, initiating a trial program of up to changing consumer attitudes and purchasing behavior
three years, to be followed by a referendum of funders.
while boosting marketing support by manufacturers
Following the industry
and retailers. The impact was
While vast when measured against
consultations, the G.F.F. compowerful, generating signifimittee decided to pursue a
cant improvements at particiindustry spending over the past
checkoff to be supported by
pating retailers while bending
decade, a $23 million budget is
the largest companies that
overall sales trends measurmodest when compared with other
bake so-called bread basket
ably and meaningfully in a
checkoff programs.
products, including bread,
positive direction.
rolls, buns, bagels, naan, pita, other flatbread and
The grain-based foods checkoff program has been
English muffins. Also participating will be flour mill- conservatively shaped. The low-margin structure of
ers that produce the flour for those products.
the baking and milling businesses makes industry exIf the program moves forward, the industry's com- ecutives reflexively suspicious of anything that will raise
mitment toward product promotion would expand costs. This reticence is heightened by mistrust of governdramatically. The annual budget of the Grain Foods ment and the current difficulties bakers are experiencing
Foundation currently aggregates about $2.5 million. due to persistently challenging market conditions.
With a checkoff program target of $23 million per
Elements of the program aimed at mollifying these
year, it is likely the industry would invest as much concerns include its relatively small size, the somewhat
under a checkoff in its first 18 months as the G.F.F. narrow initial focus on the bread basket versus the entire
has spent cumulatively over its entire 14-year history. flour-based foods universe, the trial period before the
While vast when measured against industry spend- referendum and termination mechanisms that are easier
ing over the past decade, a $23 million budget is mod- to trigger than is the case for other checkoff programs.
est when compared with other checkoff programs. The
Fortunately, there is every reason to be excited about
G.F.F. estimates the $23 million equates to 0.14% of how products as wholesome, delicious and foundathe $16.2 billion size of its bread basket category. The tional as baked foods will respond to a well-conceived
$23 million falls toward the low end of all checkoff marketing effort overseen by a checkoff board. With
programs that run as large as $280 million and likely powerful industry support and leadership (crucial
would be the smallest as a percentage of the address- during the comment period), the initiative poised to
able market. For instance, the potato, pork and cotton launch this year will be just the start of a larger, broader
program budgets equate to 0.4% of total product sales. effort allowing flour-based foods to fully reassume a
This disparity is important because expectations front-and-center position in the American diet. MBN
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7 / January 2, 2018
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Milling & Baking News - January 15, 2019

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