Baking & Snack -june 2022 - 8

editorial
Making the right choice for the long run
T
The hits just keep on coming, don't they? On top of everything
- supply chain, workforce, Ukraine, wheat forecasts,
the pandemic - now we have avian flu driving up
the price of eggs.
Yet, the industry continues baking bread, cookies,
cakes, rolls, buns, pies and snacks. America must eat after
all. And the industry's resiliency is impressive. IRI data
for Q1 shows that despite inflation driving up bakery
prices, volume sales have remained virtually unchanged.
It may not be the explosive demand of 2020, but consumers
still want their baked goods.
While volume may be evening out to more sustainable
levels, baking companies aren't slowing down. Instead, I
see them following the guidance Baking & Snack Pro Tips
columnist Rowdy Brixey once gave me: When things slow
down, that's not time to catch your breath; it's time to lean
in and get ahead.
Leaning in can mean a lot of different things. It
can be as simple as getting ahead on your maintenance,
as Mr. Brixey was referencing. Or it
could be as big as reworking an entire company's
organizational structure as Thomasville,
Ga.-based Flowers Foods did as a part of its
Project Centennial in 2016. Or it could be
somewhere in between, such as investing in
new automation or systems to help take operations
to the next level as J&J Snack Foods Corp.,
Parsippany, NJ, did when it invested in a new enterprise
resource planning (ERP) system in February.
Regardless of how far a company leans forward, there
are bound to be growing pains. During a May 3 conference
call with analysts, it was disclosed that J&J Snack Foods'
ERP system installation brought unforeseen challenges
in operations, manufacturing and its supply chain. These
challenges were enough to impact the company's second
quarter foodservice and retail business performance.
But just because there are growing pains doesn't mean
these weren't the right choices for these companies, and
just because the path is difficult doesn't mean it isn't the
right way forward. In that conference call with analysts,
David Fachner, president and chief executive officer
of J&J Snack Foods, described the ERP system implementation
as the " largest and most necessary change to
strengthen our supply chain. "
Separately, in an interview with Josh Sosland, editor
of Milling & Baking News and president of Sosland
Publishing Co., A. Ryals McMullian, president and CEO
of Flowers Foods, admitted that the company could have
benefited from the assistance of change management resources
during the many revisions it undertook as a part
of its Project Centennial.
Many baking companies find themselves in a similar
place: needing to make big investment decisions to stay
competitive or having to rethink their production, labor
or organizational structure. And that is a hard place to
be that will come with resistance, whether it's in business
performance or even the people at the company. But that
resistance can provide lessons to be learned and spark a
fire to make a company - and an industry - stronger.
- Charlotte Atchley, Editor
catchley@sosland.com
PUBLISHING STAFF
EDITORIAL
Publisher
Associate Publisher
National Account Executive
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Mike Gude
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Contributing Editors:
Charlotte Atchley
Dan Malovany
Keith Moore
Michelle Smith
Lucas Cuni-Mertz
Taryn Parker
Donna Berry
Beth Day
Laurie Gorton
CORPORATE
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Corporate Headquarters
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Phone: (816) 756-1000; Fax: (816) 756-0494
E-mail: BakingSnack@sosland.com
Internet: www.bakingbusiness.com
Elisabeth Spillman
Marj Potts
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8 Baking & Snack June 2022 / www.bakingbusiness.com
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Baking & Snack -june 2022

Table of Contents for the Digital Edition of Baking & Snack -june 2022

Baking & Snack -june 2022 - Intro
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