No bombshells this year—just on-topic, thought-provoking discussions, engaging a packed house of perhaps 600 attendees, marked the Food Marketing Institute's Midwinter Executive Conference, held in late January in the Ritz-Carlton Grande Lakes in Orlando, Fla.
Last year's event was one for bombshells, and this time around FMI chairman and Supervalu c.e.o. Jeff Noddle made a passing reference to his stressful state of mind at last January's conference, which was convened the same day that his company announced its acquisition of a huge chunk of Albertsons.
At the podium as the latest Midwinter kicked off, Noddle went on to affirm an opinion that many of the c.e.o.'s in attendance would probably share: that more megamergers are in the offing, part of the turmoil of change that the grocery industry will face in 2007 and beyond. Also a notable sign of momentous change, in Noddle's view: Trader Joe's, Wal-Mart, and Walgreens were all in attendance as FMI members.
"Many of us mistakenly did not see them as part of our industry," said Noddle, adding that overall conference registration this year—among the largest since 2000—should be seen as a sign that industry leaders are aware of the gravity of the changes facing the business, as well as the need for change.
Change—as well as membership and active participation in FMI as catalysts for change—characterized the opening remarks of conference chairman and Hy-Vee c.e.o. Ric Jurgens, whose natty attire matched his sharp-edged plea for his colleagues to roll up their sleeves and contribute to FMI's educational and trade show events, as well as the trade group's governance and government affairs activities.
Seeing fit to remind his counterparts of "why we need FMI," Jurgens reviewed the association's lobbying, educational, and PR roles, as well as the "sense of community and industry" it fosters through its events.
FMI has in recent years faced claims of declining relevance and weakness in a trade that has lost its historic significance. Like many other retailers and manufacturers, Jurgens clearly wants FMI to change, but he's not content just to complain and disassociate. I happen to think he's right, that FMI still has relevance, and needs more active support from retailers than ever before if it's to continue to put on a must-have show and be a must-have trade group.
The balance of FMI Midwinter featured expert discussions, featuring crack minds from Kraft, Harvard, Deloitte Touche, and elsewhere on issues characterized not by the nitty-gritty of operations or merchandising, but higher-level concerns such as grocers' and vendors' responsibilities to straighten out the morass of information about health and wellness, filling inevitable gaps in management talent, and the crying need for companies to tap into their own knowledge banks of female managers and workers, to become better servants to the needs of female shoppers.
A clear high point: Safeway c.e.o. Steve Burd, sharing in detail the success his chain has had in taking the fate of its employees' health care in its own hands, and actually providing better health coverage for its employees while keeping costs down substantially.
"We have a crisis on our hands, but it is solvable," said Burd, with the kind of confidence and authority that comes when a smart, busy guy has put a lot of his own sweat into attacking a problem that most of his colleagues just shrug off as impossible to solve. Safeway's winning its battle against the health care crisis, and Steve Burd is willing to tell this story to anyone who'll listen. PG will help in the effort: A close look at the Safeway plan is coming to our pages soon.
At one point during the conference, the frustration shared by plain folks trying to figure out how to solve another problem—how to feed themselves and their families healthier meals—prompted Hy-Vee's Jurgens to note, "Any time we have frustrated consumers is an opportunity. We've worked to provide knowledge as well as food. We actually are selling knowledge now.'
Judging from the caliber of this latest Midwinter, FMI is also trying hard to merchandise knowledge as a hot commodity.