We will put the FDF right up front
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That first morning when Gavin Neath and Iain Ferguson started together as new recruits on Unilever's graduate training programme, neither could have imagined that 30 years later both would be heading up two of the biggest names in food manufacture. Neath went on to become the UK chairman of the company he first joined so many years before; and Ferguson chief executive of Tate & Lyle.
Even more remarkable, then, that Ferguson should this year follow in Neath's footsteps in taking over the presidency of the Food & Drink Federation (FDF). Ferguson generously heaps much praise on Neath for his hard work and personal commitment in establishing the FDF's new structure which he will inherit and move forward.
The FDF's revised structure sees three new steering groups established covering food safety and science, chaired by General Mills' Jim Moseley; sustainability and competitiveness, chaired by Masterfoods' Fiona Dawson; and food and health. And it will be from the latter group, chaired by Pepsico UK president Salman Amin and supported by FDF communications director and former editor of The Grocer Julian Hunt, that you can now expect to hear a much louder voice from the industry.
Ferguson is clear about the big issues facing manufacturers over the next two years. They are nutrition, obesity and labelling. "Nobody in the food industry would argue against the fact that we are part of the solution," he says. "We take our responsibilities very seriously," he adds. He is equally sure about the necessity for the FDF to take the lead in the debate on these issues. Only by doing so can it hope to recapture the initiative from those seeking to represent food manufacturers as purveyors of obesity and ill health, he believes. "We want to make sure that the point of view of the food industry is clearly heard."
Ferguson wants to redress the balance in the face of recent hostile media coverage: "The food industry does provide good nutrition. What we are seeking to improve on is the way in which we communicate that to our consumer base."
In contrast to the approach taken by the IGD think tank, where he has just finished a two-year stint as president, Ferguson stresses the FDF's lobbying role on behalf of food processors.
Front of pack labelling campaigns
The FDF's latest media campaign on guideline daily amount (GDA) front of pack labelling is part of this new strategy. However, it is up against the competing traffic light system, which is currently being heavily promoted in a new series of advertisements by the Food Standards Agency (FSA).
While Ferguson admits that internal debate within the FDF on GDAs had been "robust", he refutes any suggestion made by some industry insiders that divisions remain over the approach now being taking on this and other issues.
"There were differences of opinion about speed more than direction," he says, which is why the companies such as Pepsico, which are advocating GDAs, are the ones financing the current £4M media campaign. "We had a healthy debate about it. But the FDF is an organisation founded on good debate and consensus."
Consensual is also how Ferguson describes his management style. "My strategy is to make sure that I involve as many of the senior members [of the FDF] as I can in a meaningful way," he says. It's all about establishing a "cadre" of people who are able and willing to put something back for the good of the industry when the current cohort moves on, he explains.
Ferguson points to the good relationship that exists between the FDF and FSA, despite differences over front of pack labelling. While they may be at odds over the best signposting approach to adopt, both are agreed on the goal. "We share absolutely where we want to get to," he says. "But what we do have is a difference of opinion about what are the most effective mechanisms to get there."
He cites agreement over setting up an independent project management panel by the FSA. With the involvement of various stakeholders, including the industry, this will evaluate the impact of different front of pack nutritional labelling on shopping behaviour. This is an example of good collaboration between industry and regulator.
Contrary to the image projected in some quarters of two great armies at war, Ferguson says that there is far more that unites the FDF and FSA than divides them. In particular, he says, the industry is fully supportive of the FSA's core food safety role and he praises it on its achievements in its relatively short period of existence.
However, he doesn't miss the opportunity for a slight dig in reminding the FSA that it should remain objective, science-based and avoid being seduced by the opinions of single interest groups. "We are very much in support of the FSA being data-based, scientific and having a robust approach. That is why we worry sometimes if they get into areas where it seems to be more opinion than fact," he admits. "We have seen it a little bit in the nutrition and labelling area."
As a Scottish farmer's son who obtained degrees in chemistry and psychology, and who has spent his whole life in the food industry, Ferguson has the background to understand the aspirations of small firms striving to survive in an increasingly competitive world. And he has the scientific credentials to comprehend the advanced technologies upon which the industry's future will depend.
Ferguson takes pride in what the industry has achieved over the past 30 years: increasing consumer choice and providing safe food, while lowering the cost of production through efficiency improvements. Nevertheless, he admits to some frustration about the way it is often viewed by others.
"A lot of us share the frustration about a situation where we are seen to be commenting about someone else's agenda." And that is why he sees the GDA campaign as "an example of going on to the front foot". He adds: "The issue of labelling is today's hot button; it is one of the key areas for the future. For the next two to three years this is probably going to be a major part of our agenda."
Sustainability
However, Ferguson also recognises that issues surrounding the environment and sustainability are set to rise up the political agenda. As a consequence he says the FDF should be closely involved in establishing policy rather than merely responding to a regulatory mould that has already been cast.
It is a one reason that Callton Young has been seconded to the FDF from the Department for Environment, Food and Rural Affairs (DEFRA). Young was closely involved in producing DEFRA's Food Industry Sustainability Strategy (FISS) last year and is seen as being a very important recruit to the FDF's team.
"This is a very, very important issue," says Ferguson. "One of the challenges is setting the price of carbon and the fuel versus food debate going forward." He accepts that the targets set within FISS are "tight" and he is adamant that the environmental debate should be informed by facts rather than emotions.
As an example, he points to the differences in contribution towards carbon life cycle analysis for food of manufacturing compared with other parts of the 'plough-to-plate' supply chain. "The message is, we want to be part of the debate," he says.
As with the reformulation of food products to improve their nutritional balance, Ferguson claims the industry has already made significant advances in reducing its environmental impact. His only regret is that, in both cases, it gets very little credit for its achievements.
"It is important that we have milestones along the way against which progress can be measured," he says. FM
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