WASHINGTON -- Grocery Manufacturers of America and the Association of Sales & Marketing Companies took a major step toward uniting last week when GMA's board unanimously approved a merger between the two organizations.
The ASMC board will meet Dec. 7 to vote on the merger, and if it is approved, "we could probably move forward very quickly," Mark W. Baum, ASMC president and chief executive officer, told SN last week.
If the board votes to approve the merger, the matter would be submitted to ASMC members for a mail-in vote, with integration likely within a month after a pro-merger vote, Baum said.
The two associations have reportedly been discussing a possible merger since spring, with talks becoming more serious during the summer. If a merger is effected, the two associations are interested in developing a new business model that creates additional synergies, industry sources told SN.
In a joint announcement last week, the two organizations said the ASMC executive committee, consisting of five of the association's 10 directors, has already endorsed the merger proposal, under which ASMC would become a subsidiary of GMA and operate as a separate entity.
GMA here is comprised of food, beverage and consumer product companies that represent domestic sales exceeding $460 billion.
ASMC, based in Reston, Va., has a membership comprising nearly 1,000 sales and marketing agencies employing more than 40,000 manufacturer representatives. Prior to 1997 ASMC was called the National Food Brokers Association.
In last week's joint announcements, executives at both associations said they see benefits in an alliance.
C. Manly Molpus, GMA president, said, "Manufacturers and sales and marketing companies naturally have close ties within the consumer products industry, and we believe a strategic partnership between our memberships is both pragmatic and exciting.
"It's clear this alliance will better unite manufacturers' sales and marketing efforts to move faster in the creation of go-to-market strategies while facilitating greater communication and coordinated activities throughout the supply side of the industry."
According to Baum, "Our members are essentially part of the same family, so we see a good deal of opportunity for new programs and knowledge development that unify and enhance business practices among manufacturers and their sales and marketing agents.
"We believe a merger will allow us to continue current programs and outreach to our respective members while expanding our already robust presence in the sales and marketing of food, beverages and consumer products."
In an interview with SN last week, Baum said GMA and ASMC have always worked closely together, "looking for ways to create more business opportunities for both memberships, and a merger is simply a matter of expanding our potential."
He said he will retain his positions as president and CEO of ASMC if a merger takes place but declined to comment on whether he would take on additional responsibilities at GMA.
Another trade report was also denied last week, as executives at Food Marketing Institute and Food Distributors International both told SN there have been no discussions between them about a possible merger of FDI's wholesale unit into FMI.
