Milling & Baking News - April 6, 2010 - 20

Industry Activities

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Shiver sees multi-dimensional
benefits from A.B.A. involvement
Continued from Page 1

members of the A.B.A. staff. "Over the
course of my career I've developed a
deep appreciation for A.B.A. and the
assistance it has provided our company and others.
"When Hurricane Katrina hit Louisiana in 2005 and a nearby sugar refinery was knocked out, we had a
serious problem finding sugar for our
cake bakeries. A.B.A. came to our rescue, helping us get temporary sugar
from Mexico. That's just one example
of how A.B.A. can assist during times

Shiver

of crisis. From an industry standpoint,
they are our voice in Washington.
They have the ability to approach the
individuals and lawmakers who are
influencing not just business today but
business in the future.
"Robb (MacKie, A.B.A. president
and c.e.o.) has assembled a team of talented individuals who have a passion
for what they're doing. Because they
understand the baking business and
how the inner circles of Washington
work, they can really get things done."
As diverse as the baking industry
may be, there is a commonality that
makes involvement in the A.B.A. practical, Mr. Shiver said.
"Whether your baking company is
publicly traded or private, mid-sized or
small, you face the same problems and
issues as other bakers," he said. "You
need to get your people at the table and
involved in one or more of the A.B.A.
committees, which focus on different
areas of our business. From a political
standpoint, this is critical. Next fall's
election will have an extremely important impact not just on our industry,
but our country. Increasing participa20 / April 6, 2010 Milling & Baking News

tion by bringing in new bakers and allied members is a major priority for the
A.B.A. over the next few years."
Expanding on Mr. Shiver's comments,
Mr. MacKie emphasized both the high
stakes involved for the industry and the
need to handle resources carefully.
"Baking is roughly a $70 billion industry, which is a large number with
plenty of clout, but at the same time, resources from the industry are limited,"
he said. "So we are being pushed to be
more sharply focused. We have established clear-cut priorities and leveraged
the industry's limited resources more
effectively, whether it's working with
AIB on bake testing to help with F.D.A.
matters, on food safety and sanitation or
with AIB and BEMA. A.B.A. has provided the leadership to pull nine separate
organizations together on sanitation
and to cut down on the overlap."
Asked about the current picture for
baking, Mr. Shiver described a tough
environment with no relief imminent. At the same time, he said baking
should take solace in the healthier condition of the industry relative to many
others in the current economic climate.
"The competitive landscape continues to change, and I think we'll see
more consolidation in our industry," he
said. "While the deflationary trend we
are experiencing is not good for anyone, I'm optimistic about the sparks
of improvement we're seeing on the
retail side of the business. Until we see
an improvement in the unemployment
rate, however, I think tough times will
continue. When will we come out of
the recession? No one knows.
"As tough as the economy has been,
I can't think of many industries that
have done better during this downturn
than baking. I.R.I. (Information Resources, Inc.) data show the baking category is very healthy. There has been
no major swing from branded product
to private label. I think we're fortunate
to be in the baking business."
One way in which baking has done
better than other industries, including
other segments of the food business,
has been in the ability of branded
bread to stave off significant gains
from private label.
A number of factors have contributed to this, he said, including the historically significant share private label
has enjoyed for a long time.
"Consumers have had many chances to trade to private label in the past,

but branded bread has withstood it,"
he said. "Think about other categories,
like cheese and dairy, which traditionally have not been able to hold on to
brand share."
Promotional activity associated
with branded bread also served as
a deterrent to private label growth,
he said. Mr. Shiver also credited the
investment baking companies have
made in their brands.
"Strong brands like Nature's Own
that offer products with a point of difference certainly give consumers an incentive to purchase branded bread over
private label," he said.
While still a youthful 54, Mr. Shiver's baking industry experience dates
back several decades, to when he was
running a bread sales route for Flowers during college.
After graduating in 1978, Mr. Shiver held different route sales positions
at Flowers before moving to other
areas of responsibility. He headed
the company's marketing department for more than 10 years and then
gained experience in operations, first
as vice-president of sales at Flowers'
Jacksonville, Fla., baking plant. In
1995, he was named president of a
Flowers' yet-to-be constructed plant
in Villa Rica, Ga. He was responsible
for managing the project from ground
breaking to plant start-up.
"It was a tremendous learning experience that gave me a strong appreciation for the production and engineering aspects of the baking business," Mr.
Shiver said. He noted that the diversity
of his business experiences typify the
career path of Flowers managers.
From Villa Rica, Mr. Shiver went to
Orlando as a regional vice-president
before transferring back to Thomasville in 1998. His positions there included executive vice-president, reporting to Mr. Deese, who was then
president and c.o.o of Flowers Bakeries Group. He spent five years as
president and chief operating officer
of Flowers' Specialty Group. The assignment came during a time of uncertainty for the company, as Flowers had just sold the Mrs. Smith's
Pie business, which had struggled.
Mr. Shiver was charged with creating an independent operating unit
for warehouse-delivered snack cakes
and frozen bread and rolls. Under
his leadership, the newly constituted
unit thrived. In 2008, Mr. Shiver was
named executive vice-president and
chief marketing officer of Flowers
Foods, and this past January, he was
Continued on Page 24
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