Annual Report 2014
Chairman’s Letter 2014
Leaning forward.
David J. Yanda, AFFI Chairman of the Board
Kraig R. Naasz, AFFI President and CEO
DEAR AFFI MEMBER:
In one of the most challenging economic and regulatory
environments in recent memory, leaning forward best describes
the American Frozen Food Institute’s (AFFI) attitude and approach
to our advocacy efforts on behalf of the frozen food and beverage
community. Under the guidance of AFFI’s Board of Directors, we
continue to make enormous strides in serving the business and
public policy needs of our diverse and growing membership.
As the only national trade association dedicated solely to frozen
food and beverage makers, distributors and their suppliers, AFFI
is uniquely positioned to identify and address the challenges
and opportunities that exist at today’s intersection of business
and government. Working together, we continue to further our
industry’s agenda and positively influence the environment in which
our members do business.
We are proud of our accomplishments and invite you to review this
Annual Report, which highlights the Institute’s many successes
over the past year that saw AFFI:
aunch FROZEN. HOW FRESH STAYS FRESH., a first-of-itsL
kind consumer education and category promotion campaign
supported by the Frozen Food Roundtable that generated more
than 2.4 billion positive impressions;
xpand the U.S. Department of Agriculture’s (USDA) frozen fruit
E
and vegetable servings in schools, and shape the U.S. Food and
Drug Administration’s (FDA) implementation of the Food Safety
Modernization Act (FSMA) and development of a new Nutrition
Facts label;
acilitate the business-to-business networking and regulatory
F
compliance needs of our members through conferences and
member services such as the AFFI Frozen Food Convention
(AFFI-CON), FSMA Frozen Food Facility Self-Assessment Tool
and AFFI’s popular regulatory webinar series;
ctivate a new nutrition affairs initiative to educate policymakers
A
and key opinion leaders about the beneficial role of frozen food
in the American diet and to help shape our nation’s food and
nutrition policies;
uantify our industry’s significant contribution to the nation’s
Q
economy as measured by the number of people our members
employ and the amount of taxes our members pay to local, state
and federal government entities; and
rovide frozen food exporters and importers with a state-of-theP
art, online database detailing the many policies and regulations
governing the sale and distribution of frozen food and beverages
on a country-by-country basis.
These notable achievements were made possible through the
resources provided by an engaged and growing membership. In
fact, AFFI has added more than 170 new members over the past
three years, with 42 new members in 2014. We are pleased to report
that AFFI concluded 2014 in a strong position that will enable the
Institute to continue to invest in our industry’s future growth.
AFFI’s members comprise a vital industry. We produce and
distribute safe and nutritious food and beverages to consumers at
home and around the globe. AFFI will continue to lean forward to
advance the business and public policy objectives of our members.
David J. Yanda
Chairman of the Board
Kraig R. Naasz
President and CEO
Enhancing our image with a modern
visual identity and brand new logo
The American Frozen Food Institute (AFFI) is the national trade association that promotes the interests of all segments of the frozen food industry.
The “A” in the new AFFI logo is red. As an
American-based trade association, it’s appropriate
that we lead with red in honor of the red, white
and blue of the United States of America.
The blue “F” stands for frozen. For nearly 50 years, the
color blue has been part of AFFI’s visual identity. It’s
appropriate that we maintain this traditional link both as
a nod to AFFI’s heritage but also because most think of
blue when they think of frozen.
The green “F” stands for food. The green in AFFI’s
new logo represents the fact that food comes
from Mother Earth and its cultivation is, by its
very nature, a sustainable source of nourishment.
The yellow “I” is for Institute. As the color
of light, AFFI’s new logo celebrates the
leadership role the Institute plays in lighting
the way for the continued advancement and
profitable growth of the frozen food and
beverage industry.
AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
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ADVOCATE.
ADVANCING THE FROZEN FOOD COMMUNITY’S
BUSINESS AND PUBLIC POLICY AGENDA.
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Bill Smittcamp of Wawona Frozen Foods
(right) meets with Rep. Devin Nunes (D-Calif.).
Mr. Smittcamp joined other AFFI members
participating in Congressional office visits during
the 2014 Government Action Summit.
Incoming U.S. House of Representatives Agriculture
Committee Chairman Rep. Mike Conaway (R-Texas)
delivers remarks during the Capitol Hill Luncheon at
the 2014 Government Action Summit.
Sen. Angus King (I-Maine) samples food
from McCain Foods during the 2014 Frozen
Food Filibuster.
FOOD SAFETY
AFFI engaged federal regulatory agencies on a number of
significant food safety issues, rules and proposals in 2014.
AFFI remains committed to providing federal regulatory agencies with in-depth analysis and insights to help them develop
common sense regulations capable of achieving real food
safety progress.
AFFI also persuaded FDA to extend the period for submitting
comments regarding changes to the Nutrition Facts Panel
(NFP) and Reference Amounts Customarily Consumed (RACC).
AFFI requested the agency provide frozen food and beverage
makers with a reasonable implementation timeframe and
ensure that any changes made to the NFP be based on
verifiable, peer reviewed science.
The U.S. Food and Drug Administration (FDA) heeded AFFI’s
calls for substantial revisions to the agency’s proposed Food
Safety Modernization Act supplemental rules on preventive
controls for human and animal food, and foreign supplier
verification programs for importers of food.
“The American Frozen Food Institute…told FDA today
that a more appropriate timeline for rolling out the
Nutrition Facts Panel update would be three to five
years, not two years as the agency has suggested.”
—PoliticoPro
ENGAGING LAWMAKERS
ensuring that the five-state, $5 million pilot program was
swiftly implemented and accurately evaluated by USDA.
Throughout 2014, AFFI was at the forefront on several issues
critical to the frozen food community, including promoting the
expansion of frozen fruit and vegetable servings in schools
and opposing burdensome and costly labeling regulations.
AFFI and its allies persuaded Congress to create a pilot
program that enables low income elementary schools to
serve frozen fruits and vegetables as part of a popular
USDA snack program. AFFI also played a lead role in
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AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
Consistent with AFFI’s longstanding support for national
uniformity in food labeling, the Institute joined a diverse
coalition of food makers and retailers urging California
Governor Jerry Brown to veto a seafood labeling law. Gov.
Brown subsequently vetoed the potentially confusing and
costly bill that was at odds with current federal law.
Rep. Mike Simpson (R-Idaho) meets with
Tom Madden (right) of Rite Stuff Foods.
Rep. David Valadao (R-Calif.) poses with Erika
Baum (center) and Ricardo Fernandez (right) of
General Mills.
NGA’s 2014 best bagger Andrew Hadlock (right)
goes head to head against Rep. Jason Chaffetz
(R-Utah) in the 2014 Congressional Best
Bagger Competition.
GOVERNMENT ACTION SUMMIT
AFFI member companies gathered Sept. 9–11 in the nation’s capital for the
2014 Government Action Summit to take advantage of the unique opportunity
the Summit offers for gaining insights into the political and policy matters most
important to the frozen food community.
event served to further enhance AFFI’s efforts to showcase
the benefits of frozen food to key members of Congress,
their staff and the media.
FROZEN FOOD FILIBUSTER
The 2014 Frozen Food Filibuster was held at the Library of
Congress’ historic Madison Building. AFFI members were
joined by hundreds of Congressional members and their staff
to sample premier frozen foods prepared on-site and learn
more about the frozen food community, our issues and the
value of frozen foods.
New to the Filibuster this year was the National Grocers
Association’s (NGA) Best Bagger Competition. The popular
Special thanks to those AFFI member companies
and allied associations who provided the food,
beverages and support that made the Filibuster a
huge success.
Clear Springs Foods
General Mills, Inc.
The Kellogg Co.
Lakeside Foods, Inc.
McCain Foods Ltd.
National Beer Wholesalers
Association
National Frozen Foods Corp.
Nestlé USA
NORPAC Foods, Inc.
Palermo Villa, Inc.
Pepsico Inc.
Sargento Foods Inc.
The Schwan Food Company
J.R. Simplot Co.
Wawona Frozen Foods, Inc.
Wine and Spirits Wholesalers
of America
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EDUCATE.
NAVIGATING BUSINESS CHALLENGES AND
BUILDING BUSINESS RELATIONSHIPS.
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AFFI REGULATORY WEBINAR SERIES
Throughout the year, AFFI kept its members abreast of the
latest food safety developments through a monthly regulatory
webinar series that attracted more than 500 participants. This
comprehensive series featuring leading experts helped AFFI
members understand, navigate and comply with various food
safety, quality assurance and risk management requirements.
FSMA SELF-ASSESSMENT TOOL
More than 50 AFFI members and their suppliers have deployed
this one-of-a-kind online tool to assess their readiness and
understand how new FSMA rules will impact their operations.
FOOD SAFETY
PREVENTIVE
CONTROLS FORUM
AFFI, in partnership with
the California League
of Food Processors,
hosted the second annual
Food Safety Preventive
Controls Forum in
Monterey, Calif. The Food Safety Forum provided attendees
with informative guidance on how fundamental Food Safety
Modernization Act requirements can blend into existing
in-plant food safety programs.
AFFI-CON
The AFFI Frozen Food Convention (AFFI-CON) welcomed more than 1,400 delegates to
San Diego, Calif., to take part in the frozen food community’s premier business networking
and educational gathering.
TaylorMade CEO Mark King entertained and informed delegates as the featured speaker at the
AFFI Annual Meeting and Keynote Breakfast. As a successful businessman, King shared with AFFI-CON delegates his unique insights on achieving profitable growth, even in a difficult economy.
Convention delegates also participated in an array of educational sessions on critical industry
trends and topics. Distinguished speakers and expert-led panels explored current and future
trends in product labeling and producing innovative foods with new, flavorful ingredients.
TaylorMade CEO Mark King delivered the
keynote address during the AFFI Annual
Meeting and Keynote Breakfast.
AFFI President and CEO Kraig R. Naasz
addresses the crowd at the AFFI Annual
Meeting and Keynote Breakfast.
Julia Wells of the Pictsweet Company speaks at
AFFI-CON after being selected by the Distinguished
Order of Zerocrats as the 2014 Frozen Food Hall of
Fame inductee.
AFFI ADVANTAGE
PARTNER PROGRAM
FOOD LOGISTICS FORUM
The 2014 Food Logistics Forum (FLF), held in Incline Village,
Nev., provided attendees with expert advice and valuable
information on a variety of export and import transportation
issues, including negotiation at West Coast port terminals and
new Food Safety Modernization Act regulations.
AFFI associate members
deliver valuable products and
services in support of the
frozen food and beverage
industry. The AFFI Advantage
Partner Program delivers
exclusive benefits to selected
associate members to help
them build their business.
EXPANDING OUR SERVICE TO MEMBERS
With more resources at our disposal, AFFI expanded its
reach, enhanced its effectiveness and delivered even more
results for its members. AFFI welcomed 42 new members in
2014, including six frozen food processors, nine international
processors, 24 associate members and three retail and food
service members.
FOOD & BEVERAGE
ENVIRONMENTAL CONFERENCE
The 44th Food & Beverage Environmental Conference
(FBEC), held in Napa, Calif., brought together environmental
managers from food and beverage companies.
The theme of this year’s FBEC, “New Ideas and Fresh
Solutions,” focused on sharing best practices and new
strategies in the environmental arena. Attendees participated in
a variety of environmental education sessions, including water
reuse, refrigeration management and air and source reduction.
FBEC keynote speaker Bruce Cakebread, President and COO of Cakebread Cellars,
discussed with attendees how their businesses can evolve to meet new environmental
regulations and changes.
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COMMUNICATE.
SHARING THE STORY OF A DYNAMIC
AND VITAL AMERICAN INDUSTRY.
MEDIA OUTREACH
AFFI’s advocacy efforts on a diverse range of key policy
issues were regularly spotlighted in major national media
outlets, such as The New York Times and The Associated
Press, and notable inside-the-Beltway publications, including
Politico and The Hill.
How School Lunch Became the Latest
Political Battleground
“We didn’t find favor with efforts to paint certain vegetables as,
for unspecified reasons, less healthy than other vegetables,”
was how Kraig R. Naasz, the head of the American Frozen
Food Institute, which represents about 500 makers of frozen
foods and vegetables, explained it.
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Friends of Frozen Food
Friends of Frozen Food
FRIENDS OF FROZEN FOOD
Food Industry Seeks Voluntary
GMO Labeling
The state laws could also create a complicated patchwork
of labeling laws that would “increase, rather than reduce,
consumer confusion,” said Kraig Naasz of the American Frozen
Food Institute.
AFFI enhanced our social media presence and reputation
as a trusted source of information on frozen foods and the
issues that impact frozen food and beverage makers.
Throughout the year, AFFI
garnered nearly 8,000
Facebook fans and nearly
700 Twitter followers.
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“UGA found that at-home storage of fresh fruits and
vegetables can lead to significant nutrient loss but
with frozen fruits and vegetables, consumers receive
the nutritional benefit of produce that is harvested
and then frozen at peak ripeness.”
—Rep. Jack Kingston
FROZEN FOOD ROUNDTABLE
May 2014 marked the national launch of the FROZEN. HOW
FRESH STAYS FRESH. national consumer education and
promotion campaign. This first-of-its-kind national dialogue is
designed to inform consumers that freezing is simply nature’s
pause button, and to invite them to take a fresh look at frozen.
FROZEN FOOD MONTH
To recognize March’s designation as National Frozen Food
Month, AFFI worked with a number of congressional offices to
tout the value of our products. Rep. Glenn Thompson (R-Pa.)
and Rep. Jack Kingston (R-Ga.) highlighted the benefits of
frozen foods in the Congressional Record.
“In celebration of National Frozen Food Month, I wish
to applaud Better Baked Foods and the entire frozen
food industry for their hard work and continued contributions to strong local economies, through jobs and
quality, affordable meals for our Nation’s consumers.”
—Rep. Glenn Thompson
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AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
AFFI also utilized
National Frozen Food
Month to emphasize the
impressive economic
and nutritional benefits
provided by frozen food
makers by providing all
535 Capitol Hill offices
with an information
brochure. In addition,
AFFI promoted National
Frozen Food Month with
a full-page advertisement
in Roll Call, one of the
most widely read
and influential Capitol
Hill newspapers.
FROZEN FOOD FOUNDATION
In an effort to encourage consumers to take a fresh look at
frozen, the Frozen Food Foundation, in partnership with the
University of California-Davis (UC Davis), released the results
of a multi-year study comparing the nutrient content of eight
commonly purchased frozen and fresh fruits and vegetables:
blueberries, strawberries, carrots, corn, broccoli, green beans,
green peas and spinach.
The study, conducted by lead researcher Dr. Diane Barrett
of UC Davis, used methodologies designed to eliminate
discrepancies in the harvesting, handling and storage of fruits
and vegetables used in the analysis. Like produce found in
farmers’ markets, the fruits and vegetables used in the study
were locally grown, harvested and stored by the UC Davis
research team.
Each fruit and vegetable was analyzed under the following
conditions: frozen (analyzed within 24 hours of harvest and
after 10 days and 90 days of storage in a freezer) and freshstored (analyzed within 24 hours of harvest and after three
days and 10 days of storage in a refrigerator).
The results? Frozen fruits and vegetables are nutritionally equal
to—and in many cases better than—their fresh counterparts.
The Frozen Food Foundation promoted the results of the UC
Davis study through traditional and social media outlets that
encouraged consumers to take a fresh look at frozen foods.
The Foundation garnered more than 170 million media impression from 2,916 placements.
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AFFI Staff List
OFFICE OF THE PRESIDENT
MEMBER SERVICES
Kraig R. Naasz
Kristen Holmes
[email protected]
[email protected]
Kathleen R. Greco
Brynn Horne
[email protected]
[email protected]
REGULATORY AND TECHNICAL AFFAIRS
COMMUNICATIONS
Senior Vice President of Regulatory and Technical Affairs
Executive Vice President of Public Affairs
President and CEO
Chief Administrative Officer
Dr. Donna Garren
Vice President of Conferences
Vice President of Member Services
Joe Clayton
[email protected]
[email protected]
Dr. Sanjay Gummalla
Adrienne Richards
[email protected]
[email protected]
Rishi Banerjee
Christal Mirabal
[email protected]
[email protected]
GOVERNMENT AFFAIRS
FINANCE
Vice President of Government Affairs
Chief Financial Officer
Vice President of Regulatory and Technical Affairs
Director of Regulatory and Technical Affairs
Kelly Poulsen
Vice President of Communications
Administrative Assistant
Tom Kearney
[email protected]
[email protected]
Gordon Speed
Karim Kadrie
[email protected]
[email protected]
Vice President of Government Affairs
Ron Davis
Coordinator of Communications and Government Affairs
[email protected]
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AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
Director of Finance
AFFI Board of Directors
2014–2015 OFFICERS
CHAIRMAN
VICE CHAIRMAN
IMMEDIATE PAST CHAIRMAN
Lakeside Foods, Inc.
Nestlé USA
The Schwan Food Company
Dave Yanda
Paul Bakus
Jeff Varcoe
2014–2015 BOARD OF DIRECTORS
Ricardo J. Alvarez
Angelo Fallucca
Mike McEvoy
Robert E. Ashmun
Ricardo Fernandez
David Moore
Denny Belcastro
Stan Firestone
Joe Pacinelli
Larry Cope
Ed Flanagan
Paul Palmby
Kurt Deibel
John Geocaris
Mark Schiller
Paul DiGenova
Steve Lezman
George Smith
Mark Dunn
Andrew Loucks
Wesley Eubanks
Tom Madden
Greg Evans
Rob McCutcheon
Overhill Farms, Inc.
National Frozen Foods Corp.
Hillshire Brands Co.
Clear Springs Foods
H.J. Heinz Co.
Bonduelle North America Inc.
J.R. Simplot Co.
The Pictsweet Co.
McCain Foods Ltd.
Palermo Villa, Inc.
General Mills, Inc.
Firestone Pacific Foods, Inc.
Jasper Wyman & Son, Inc.
Little Lady Foods, Inc.
Tropicana Products Inc.
Sargento Foods Inc.
Superior Foods, Inc.
Better Baked Foods, Inc.
Seneca Foods Corporation
Pinnacle Foods, Inc.
NORPAC Foods, Inc.
The Kellogg Co.
Rite Stuff Foods, Inc.
ConAgra Foods, Inc.
AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
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AFFI: Financial Overview*
FOR THE YEAR ENDING DECEMBER 31, 2014
OPERATING INCOME
Membership Dues
Conferences
Management Fees Investments
Affinity Programs
52%
26%
19%
2%
1%
Total Operating Income100%
OPERATING EXPENSES
Government Affairs
Conferences
Communications
Administration
Member Services
42%
22%
16%
12%
8%
Total Operating Expenses100%
25
20
AFFI OVERVIEW
■ Total Revenue
■ Total Expenses
■ Reserves
$23.5 million
$23.1 million
$4.0 million
15
10
5
0
* Figures are estimated and unaudited.
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AMERICAN FROZEN FOOD INSTITUTE | Annual Report 2014
PAC SUCCESS RATE
95 percent of the candidates backed
by the FROZEN FOODPAC were
elected to the 114th Congress.
Of the 39 candidates FROZEN
FOODPAC supported this election
cycle, 30 took their place in the U.S.
House of Representatives and seven
were seated in the U.S. Senate.
Rep. Cathy McMorris Rodgers (R-Wash.) delivers
remarks during the FROZEN FOODPAC Luncheon
at the 2014 Government Action Summit.
94%
80%
95%
Over the past three election cycles,
the FROZEN FOODPAC has achieved
a 90 percent success rate supporting
Election Cycle ’10 Election Cycle ’12 Election Cycle ’14
candidates and incumbents who
won election. This history of success
includes supporting candidates in open-seat contests who won 88 percent of the time, and
will never forget the FROZEN FOODPAC for its early support.
Contributions from the following organizations gave $250 or more to
FROZEN FOODPAC during the 2013–2014 election cycle:
American Frozen Food Institute
Bonduelle North America Inc.
Coastal Green Vegetable Company
ConAgra Foods, Inc.
Firestone Pacific Foods, Inc.
H.J. Heinz Co.
Harold J. Barrett Company
Hogan Lovells US LLP
J.R. Simplot Co.
Jasper Wyman & Son, Inc.
The Kellogg Co.
Lakeside Foods, Inc.
Lineage Logistics, LLC
Little Lady Foods, Inc.
National Frozen Foods Corp.
Nestlé USA
NORPAC Foods, Inc.
Overhill Farms, Inc.
Palermo Villa, Inc.
PepsiCo Inc.
RefrigiWear, Inc.
Rite Stuff Foods, Inc.
Sargento Foods Inc.
Seneca Foods Corporation
Sierra Pacific Warehouse Group
Spartan Foods of America, Inc.
Superior Foods, Inc.
The Schwan Food Company
Wawona Frozen Foods, Inc.
Vidalia Brands, Inc.
2000 CORPORATE RIDGE | SUITE 1000 | MCLEAN, VIRGINIA 22102 | 703-821-0770 | FAX 703-821-1350 | www.affi.org
Friends of Frozen Food
Friends of Frozen Food