International Baking Industry Exposition (IBIE) Stages Largest Event in its History
The 2016 International Baking Industry Exposition (IBIE)—the most comprehensive event in the western hemisphere for the grain-based food industry—recently wrapped up its largest show to date at the Las Vegas Convention Center with more than 1,000 exhibitors—340 new to IBIE and a 28 percent increase over 2013—in more than 700,000 square feet of exhibit space. Attendance also continued its upward trend with more than 23,000 registered attendees—a nine percent increase over 2013 and an astounding 65 percent increase over the last decade.
Much of the growth has come from international markets with attendees hailing from more than 100 countries and making up 30 percent of the total attendance.
“The quality and depth of IBIE’s attendees, exhibitors and education sessions was incredible,” said Michael J. Cornelis, Chair of IBIE. “IBIE is continually evolving and growing to meet the needs of baking industry professionals, as well as the trends in the industry, and this year we saw a record-breaking show with the largest show floor, number of exhibitors, innovation showcase and education program in IBIE’s history.”
A host of thought-provoking new and returning features created an even more engaging experience for attendees and exhibitors; highlights included:
- The Innovation Showcase—15 percent larger than its inaugural run in 2013—was prominently featured in the Central Lobby for attendees to shop and see what’s new before entering the Expo Hall. In addition, the Innovation Spotlight Theater, located in IBIE’s new Idea LAB on the show floor, provided a forum for exhibitors to conduct live presentations of their top innovations.
- New to the show were Fresh Take Talks, presented by Grain Foods Foundation, a series of brief, informative presentations featuring influential thought leaders sharing perspectives on consumer, nutrition and industry trends.
- The American Cake Decorating Demo Theater and The ONE Demonstration Theater by Revent featured free daily demos by celebrity chefs and big-name cooking pros showing off their skills and latest techniques.
- An expanded educational program—with 90+ sessions designed for professionals of all levels and backgrounds—highlighted the latest techniques and proven strategies for streamlining wholesale operations, improving product quality and increasing profits. More than 20 new seminars focused on the most relevant issues facing the industry today, featuring expanded content for upper management. The enhanced educational program was popular with attendees, as many sessions sold out.
- This year’s speakers were well-known subject matter experts, including retail insights thought leader and former Nielsen Vice President Todd Hale, American Bakers Association’s Senior Vice President of Government Relations Lee Sanders, as well as business moguls who run the largest bakeries in the world, including Bimbo Bakeries’ Senior Vice President of Operations Ramon Rivera.
- The education program began with RPIA’s Business of Baking for Beginners seminar and the Tortilla Industry Association’s two-day Technical Conference, which addressed operation skills, safety regulations, quality control, plant efficiency and best practices for the baking industry’s fastest growing market segment.
- Seminars at IBIE 2016 were organized into targeted tracks: AIB Technical, Retail, Bread Bakers Guild of America, International, Management, Sales & Marketing, Ingredients & Processes, Food Safety & Sanitation, and Retail Hands-on (Cake & Pastry Decorating). Sessions were held daily from 8:00 a.m. to noon and in the evening to give attendees plenty of time to explore the latest innovations exhibited on the expo floor.
- Popular returning features included: B.E.S.T. (Becoming Environmentally Sustainable Together) in Baking Program, The Great American Pie Festival, RBA’s 15th Annual Pillsbury Bakers’ Plus Creative Decorating Competition and PMQ Pizza Village.
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Also new to the show was the Satin Ice Live Challenge competition, which brought together six teams of three professional decorators, including one Satin Ice Artist of Excellence, to construct and decorate a fairytale-themed cake on the show floor in only six hours. The winning team included Satin Ice Artist of Excellence Jörg Amsler, Jaime VanderWoude of Eagan Hy-Vee in Minnesota and Erika Youngdahl of Jerry’s Foods in Edina, Minnesota, with VanderWoude and Youngdahl representing the upper Midwest Bakery Association. Winners were awarded a trip to the America’s Cake Fair hosted by Satin Ice in Orlando.
USDA Announces Plans to Purchase Surplus Cheese, Releases New Report Showing Trans-Pacific Partnership Would Create Growth for Dairy Industry
Following an October 11 roundtable discussion with dairy producers near La Crosse, Wisconsin, Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) is offering to purchase $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels, while assisting food banks and other food assistance recipients.
While USDA projects dairy prices to increase throughout the rest of the year, many factors including low world market prices, increased milk supplies and inventories, and slower demand have contributed to a sluggish marketplace for dairy producers and caused dairy revenues to drop 35 percent over the past two years. Section 32 of the Agriculture Act of 1935 authorizes USDA to purchase surplus food to benefit food banks and families in need through its nutrition assistance programs.
“America’s farming families are being called on to demonstrate their world-famous resourcefulness and resilience in the face of this current market downturn, and USDA is making use of every tool that we have to help them,” said Vilsack. “For dairy farmers, this has included $11.2 million in payments in August through the Dairy Margin Protection Program, in addition to the surplus purchase offers. While our analysis predicts the market will improve for these hardworking men and women, reducing the surplus can give them extra reassurance while also filling demand at food banks and other organizations that help our nation’s families in need. Farmers at other points in the supply chain are also receiving a boost with over $7 billion in Agriculture Risk Coverage and Price Loss Coverage payments for the 2015 crop year, which by design kick in when times are tough. As always, we continue to watch market conditions and will explore opportunities for further assistance in the coming months. For producers challenged by weather, disease and falling revenue, we will continue to ensure the availability of a strong safety net to keep them farming or ranching.”
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A solicitation will be issued shortly, and cheese deliveries to food banks and other food assistance recipients are expected to occur beginning in March 2017.
Also at the roundtable, Vilsack shared details of a new report by the USDA’s Office of the Chief Economist, which shows continued growth of the U.S. dairy sector is largely contingent on trade and that the Trans-Pacific Partnership could create an additional $150 to $300 million in annual U.S. dairy exports. Free trade agreements have contributed to the growth in U.S. dairy exports and helped to address tariff and nontariff barriers that disadvantage U.S. products in overseas markets. U.S. dairy exports to free trade agreement partners grew from $690 million in the year prior to each agreement’s entry into force to $2.8 billion in 2015, driven by lower trade barriers and increased U.S. competitiveness. For more information on TPP, visit www.fas.usda.gov/topics/trans-pacific-partnership-tpp.
Certified Angus Beef Reports Record Sales
For the 10th year in a row, Certified Angus Beef LLC reported record sales of its signature Certified Angus Beef ® brand, marketing 1.015 billion pounds of product in fiscal 2016 (ending September 30). The increase of 13.3 percent represented an additional 119 million pounds of product sold by a network of more than 18,000 licensed partners worldwide.
“Thanks to a dramatic positive shift in the supply of high-quality Angus cattle, our partners were able to deliver more of the highest quality beef to consumers while supporting ranch families and rural communities,” said brand President John Stika. “Our partners’ collective achievement – from the farm to the table – illustrates the relevance of our mission established nearly 40 years ago. By delivering unique experiences and value to consumers, our individual partners succeed as well.”
Monthly sales records and category growth
The Certified Angus Beef brand set sales records in all 12 months of fiscal 2016. Furthermore, eight of the 10 best sales months in the brand’s 38-year history were set in fiscal 2016. Sales of more than 90 million pounds in July, August and September reflected partners’ strong marketing and promotional activity during grilling season.
Growth was balanced across product categories. Backed by traditionally strong demand, particularly for consumers’ celebrations and special occasions, sales of premium steaks (middle meats) grew by 11.4 percent. End meat sales grew by 87 million pounds, and ground beef sales increased by 8.5 million pounds.
Illustrating the appeal of premium beef to the most discerning consumers, sales of the brand’s Prime product extension grew by more than 26 percent.
Divisional success
After six years of deceleration, retail division sales exploded with 18.5 percent growth, or 68 million pounds. Quality-focused retailers have long represented the largest portion of brand sales – 43 percent in fiscal 2016 – but lower beef prices linked to increased supply encouraged more consumers to choose beef for family meals more often. Plus, grocery partners aggressively featured brand items in their circulars, further driving sales.
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The foodservice division, already on a well-established path of growth, enjoyed its seventh consecutive year of record sales: 355 million pounds, a 6.3 percent increase. Three-quarters of the brand’s licensed distributors grew their business by an average 9.3 percent. Sales to licensed restaurants also increased 10 percent, demonstrating the brand’s relevance and value to chefs, restaurateurs and customers.
International sales of the Certified Angus Beef brand reached a new record of 138 million pounds in 49 countries. Sales in Japan, historically important for U.S. beef, more than doubled in fiscal 2016, thanks to the efforts of partners strongly committed to the brand. Sales in Mexico also increased a notable 16 percent.
Processors responded to growing consumer demand for high-quality convenience meals in both retail and foodservice with branded value-added products. Sales were up by 8.9 percent, driven by key items including smoked brisket, marinated fajita meat and fresh corned beef.
Family farmers’ focus on quality leads to increased supply
Family farmers and ranchers have been the foundation of the Certified Angus Beef brand since its start; their efforts to raise quality cattle meeting the brand’s 10 exacting standards enable licensed processors, distributors, restaurateurs and retailers to meet consumers’ growing demand for premium beef.
A few years after a devastating drought across much of the United States, these families finally saw the fruits of their efforts to rebuild herds. Beyond simply adding more cattle, they improved the quality of their herds with a strong focus on Angus genetics and the brand’s quality target in mind. As a result, the rate of cattle eligible to earn the brand name rose to a record 28.9 percent, up from just 14 percent a decade ago. The collective improvement in cattle translated into increased supply for the brand of 440,000 head, or 115 million pounds of branded product.
“This additional supply led to reduced prices for consumers while delivering more of the same superior beef they’ve come to expect from the brand,” said Stika. “This intentional focus on quality by our family farmers and ranchers is at the core of the brand’s relevance, not just to the ranching families themselves, but also to the brand’s partners and consumers. It’s a relationship that has a collective impact much greater than the sum of its many individual parts, all passionately focused on quality and family.”
