IDFA held the inaugural meetings this week of its newly formed Industry Segment Boards. The boards, which met in Chicago during ProFood Tech, represent fluid milk, ice cream, cheese, yogurt and cultured products, and dairy-derived ingredients. The new directors will provide strategic vision, policy direction and leadership on segment-specific issues.
“With the association’s new, more nimble operating structure and a group of leaders covering the entire range of dairy products and services, we now have a comprehensive approach that strengthens our voice and allows us to advocate for all of dairy processing,” said Michael Dykes, D.V.M., president and CEO. “The inaugural meetings kicked off with valuable discussions and ideas that will help IDFA to strengthen existing initiatives and develop new ones in the year ahead.”
To start the discussions, Pradeep Prabhala an associate partner at McKinsey & Company and expert on organizational structure, led a strategic planning session. Prabhala outlined the success factors for industry associations and highlighted external trends for the boards to consider when selecting priority topics to address.
External Trends
- The millennial effect: Millennials, now with more spending power than any other generation, are more diverse, more sophisticated and more demanding.
- Better for you: Consumers are redefining what “better” means and increasingly demanding products that are natural, green, organic and free from additives.
- Infinite intimacy: Savvy companies can mine readily available digital data to develop an unprecedented level of consumer intimacy.
- Retailer revolution: Value discounters and omnichannel retailers, especially Amazon, have led to channel fragmentation and bifurcation.
- Explosion of small: Smaller brands are gaining momentum because they can capture an intimate brand story at moderate scale.
- Pressure on profit: Trying to serve an increasing number of consumer microsegments, companies face rising commercial costs from expanded product lines, channel proliferation and media fragmentation.
- Industry consolidation and vertical integration: Small and medium-sized companies must make difficult strategic decisions to remain competitive.
Phil Plourd, president of Blimling and Associates, Inc., also helped guide the directors with an interactive session designed to elicit views on the priorities, opportunities and challenges facing the industry. The collective responses will help the leaders determine how IDFA can best provide value through the segment boards.
IDFA will work closely with the board members, the McKinsey team and Phil Plourd following these meetings to develop a strategic plan for review and discussion at the next round of board meetings in October.
Enhanced Advocacy and Inclusiveness
Each Industry Segment Board conducts business in coordination with the IDFA Executive Council, which includes the chairs and vice chairs of each board. The council, which also met this week in Chicago, focuses on the business and operations of the association to carry out its fiduciary responsibilities.
“Each board leader I met with this week expressed an eagerness to help shape the future of dairy,” said Dan Zagzebski, president and CEO of Great Lakes Cheese, and chairman of the IDFA Executive Council. “We’re excited to be part of the strategic planning team for IDFA’s advocacy efforts on issues that affect all dairy processing companies.”
To learn more about the Industry Segment Boards, read “IDFA Selects Directors for Five Industry Segment Boards.”
Members with questions may contact Heather Soubra, IDFA chief of staff, at hsoubra@idfa.org.