The alphabet soup of food industry trade associations has rescrambled itself several times over the past half century.
In 1969, the National-American Wholesale Grocers' Association merged with with the U.S. Wholesale Grocers Association, and that organization's International Foodservice Association became NAWGA's food-service division. In 1996, NAWGA changed its name to Food Distributors International, now based in Falls Church, Va.
The Supermarket Institute, Chicago, and the National Association of Food Chains, Washington, joined forces in 1976 to become the Food Marketing Institute, with offices in the hometowns of both its parents. Two years later, FMI consolidated operations in the nation's capital.
The National Grocers Association, now based in Arlington, Va., was formed in 1982 by the merger of the National Retail Grocers of the United States with the Cooperative Food Distributors of America.
All of this shaping and reshaping gives the Grocery Manufacturers Association, Washington, founded in 1908, bragging rights as one of the oldest national food industry associations, although it changed its name three times before settling on the present one in 1942. However, not even GMA has been immune to merger fever. Last year, the organization absorbed the Association of Sales & Marketing Companies.
And the mergers aren't over yet. Earlier this year, the boards of FDI and FMI voted to combine the two groups, a union that is expected to be completed by Jan. 1, 2003, with IFDA becoming a stand-alone organization.
Along with the change in names has come a change in focus.
Tom Zaucha, president and chief executive officer, NGA, told SN that trade associations have to be more accountable to their members.
Today, an association needs to be "a change agent," he explained. "There's greater accountability for results."
Mark Baum, former president and CEO, ASMC, and now executive vice president, GMA, pointed out that associations are affected by the same trends toward consolidation and globalization as the industry they represent. "We all have to seek greater efficiencies, greater economies and a greater degree of effectiveness."
FMI, the industry association with the broadest base, is taking steps to ensure that its various segments all have a strong voice, according to Tim Hammonds, FMI president and CEO. "That's the major reason we have taken a very different approach to our proposal to combine FDI with FMI," he said. "We have proposed that wholesalers maintain their own advisory board of directors under the umbrella FMI board.
"We have also proposed to our board to elevate our independent operator committee to advisory board status. This would give both groups an identity and a guarantee that their issues would be handled with respect."
