IDDBA PRESIDENT DISCUSSES RETAIL CHALLENGES

ROSEANNE HARPER

KAUKAUNA, Wis. -- Supermarket delis are doing a good job providing meals solutions but there's room for improvement.

And making them better so they can thrive in an increasingly competitive arena is a major mission of the International Dairy-Deli-Bakery Association, Madison, Wis., said Bob Gilbert, IDDBA president.

The IDDBA's educational efforts will be spotlighted this year at the association's Deli-Dairy-Bake '98 in Philadelphia, June 14 to 16, he said.

The show is intended to be as complete a source of relevant information on consumer and industry trends as possible, and ideas and information that can be easily used will be featured, Gilbert said.

"Our overall strategy is to deliver actionable information that retailers can take back and put into practice this week, this month, this year," he said.

SN interviewed the IDDBA president -- who is also president of Bel/Kaukauna USA, a cheese manufacturer here -- earlier this month. In addition to describing an information-packed show agenda, Gilbert talked about what he sees as exciting, but challenging, times ahead for the IDDBA members.

"The major challenge ahead [for our retailer members] continues to be achieving real sales growth in an extremely tough environment that's characterized by stable prices, a more than adequate number of stores and intense competition," he said.

"We're also dealing with rapidly changing consumer eating habits and an increasing number of options for the consumer's food dollar. The entire focus of the show is on dealing with all those issues," Gilbert added.

Following are highlights of SN's interview with Gilbert:

SN: Has the retailer-supplier relationship changed recently in the industry? What forces are spurring that change, and what are the implications for the future?

GILBERT: I think that the relationship has changed a lot and the pace of change is about to accelerate. Consolidation has been taking place on the supplier side for some time, and my sense is that we are on the brink of a lot of consolidation on the retailer side.

The big change in the retailer-supplier relationship is going to be that there will be fewer relationships because there are going to be fewer players on each side.

So there will be a greater need for the manufacturer in particular to really bring value and to provide products, information and service that the retailer can use. There will be a greater need for trust and for working partnerships.

Because every manufacturer is going to have fewer relationships, the penalties for failure will be great -- and the rewards for a successful relationship also will be great.

SN: What new or accelerating trends do you see in the industry and how do they affect IDDBA members?

GILBERT: I think retailers and delis in particular are doing a terrific job of reacting to the demand for high-quality convenient meals solutions. The demise of the deli is greatly overstated. And the threat posed by ready-to-eat sources is greatly overstated. You see what's happening to Boston Chicken.

I think the delis in supermarkets are very effective competitors. We can always get better. We're learning all the time.

We at IDDBA have really made an attempt to provide actionable information. That's the overall strategy for a lot of what we're doing. We're operating on a very applied, practical level. On another level, a theoretical level, the keynote speaker this year is General Colin Powell, who will talk about the management of change.

SN: How does your role as president of Bel/Kaukauna USA, or your background, help you deal with issues facing IDDBA members?

GILBERT: I'm just a grizzled veteran of the food business. I've been involved in the food industry my entire business career. I like the people, and I like being close to the customer. The industry changes that have occurred during my business lifetime are fascinating.

It's an exciting part of the economy in which to work. That's why I became involved with the IDDBA because that's the mission of the association: to provide relevant information. I like being close to the source.

SN: Would you comment on the new IDDBA logo?

GILBERT: It shows the association's dedication to education. It highlights our role in providing relevant information to all our members. The idea is the pillars -- the IDDBA letters -- are supporting the college of knowledge where every member is a student. You'll see in the pediment of the logo that there is the sun, representing knowledge, illuminating a book with its pages open. I think it speaks for itself; it embodies our mission.

SN: Are there industry issues we haven't discussed that you'd like to comment on?

GILBERT: I'm concerned that as we consolidate in the industry and competition intensifies, competition is taking place on the basis of price and I think that's a strategy that does not serve us well. It serves all of us poorly and I would like our focus in the industry to be on adding value rather than on achieving the lowest price. That's a very personal two cents worth of opinion.