Georg Heberer has been President of AIBI since 2022. In an interview with baking+biscuit international, he talks about the development of the European bakery markets during his term in office as well as the goals and future of the International Association of Plant Bakers.
bbi: Mr. Heberer, in May 2024, the AIBI Congress in Hamburg will mark the end of your two-year term as AIBI President. It has been a challenging time economically, politically and socially for almost everyone in Europe. What were the biggest or most important problems that AIBI and you as its President had to overcome?
Georg Heberer: The successive crises and the unstable geopolitical context have seriously jeopardized the socio-economic sustainability of the sector. Many operators are unprofitable, sometimes for long periods of time, and have been forced to reduce or close their capacities. The COVID crisis and the war in Ukraine have raised different, but equally difficult issues. The key parameters of these situations are access to raw materials, access to affordable energy, the workforce and its development, and the regulatory constraints that weigh on companies’ equipment and operations. Our industry has had to develop its resilience and constantly learn to work in a changing environment. Volatility is an important part of our business today.
Georg Heberer
A partner of Wiener Feinbäckerei Heberer GmbH, Mühlheim/Germany, Georg Heberer was elected AIBI President by the association’s members at the 2022 AIBI conference in Bled, Slovenia. The term of office runs for two years as scheduled and ends with the new election at the General Assembly, which will take place in Hamburg on May 23, 2024.
bbi: AIBI is made up of many national associations. The exchange of goods between countries is not the dominant factor for the companies that belong to these associations. They are heavily dependent on the conditions on their domestic markets, but are also affected by the rules and standards adopted in Brussels. In which areas was AIBI active?
Heberer: It is true that bakery is deeply rooted in national and local culture and, therefore, comprises relatively local businesses. However, it would be wrong to believe that such a mosaic remains the dominant aspect of our business. While some of the basic legal aspects are set at the national level – notably historical metrological aspects, the weight of bread, what it may and may not contain, etc. – a very large proportion of the regulations that govern the production, operation and fate of our products are now set at the EU level. To name just a few: safety, contaminants in raw materials, and labeling – are all governed by EU legislation.
“Our industry has had to develop its resilience and constantly learn to work in a changing environment. Volatility is an important part of our business today.”
Georg Heberer
The general policy agenda is also set at the EU level with the active involvement of Member States. The ‘Farm to Fork’ strategy and its aim to transform the food system in Europe is not a theoretical and abstract concept floating around somewhere in Brussels, but a strategic path that fundamentally influences corporate structure and strategy. Similarly, the Green Deal has stimulated an ongoing systemic transformation of our sector and its relationship with sustainability. A growing proportion of our member companies operate across borders. The exchange of products between European countries (and even beyond) is part of today’s bakery business; of course, this is still relatively limited for fresh products, but packaged, bake-off and frozen products can be easily transported. AIBI is our interface and our voice on all these aspects that fundamentally influence the fate and strategy of our industry.
bbi: If an entrepreneur were to ask you today: “How does my company benefit in concrete terms?”, what would your answer be?
Heberer: You could also ask the question the other way around: “How can a modern bakery entrepreneur or a larger company function or even survive without this support?” The existence and functioning of AIBI is a shared responsibility of our industry. In an increasingly complex political and regulatory environment, the success and existence of any business or industry sector is dependent on staying on top of developments and ensuring strong and credible representation to influence them. AIBI is a focal point for information, an incubator for strategic positioning of the sector and an arm for proactive intervention with its members in potentially all areas affecting the bakery industry at the EU and national level. Membership of the AIBI network means being informed of regulatory changes before they are implemented, being consulted and involved in the drafting process where possible, having the opportunity to contribute to the strategic positioning of the sector on general or specific issues, and being recognized as a responsible stakeholder in the bakery industry.
bbi: Making the interests of the industry heard in Brussels is difficult without a permanent presence there. Would that be a goal for the future of the AIBI in this regard?
Heberer: AIBI was founded in 1956 and has had a permanent office in Brussels since 2011. The AIBI office is located on the beautiful Grand Place in Brussels, in one of the city’s most famous historic buildings, the Maison des Brasseurs. For a sector that is one of the three largest food production sectors, it is, of course, of the utmost importance to have a visible and active presence at the heart of Europe and its institutions. It is the daily task of this office and its Secretary-General to ensure the interface with these institutions and other stakeholders.
bbi: Networks across national and industry borders are the be-all and end-all these days. Have you and the AIBI managed to bring the baking industries of the individual member countries closer together and also form a powerful network with upstream and downstream industries? Could you perhaps give us some examples to illustrate this?
Heberer: Influencing the political and regulatory process today also often depends on ad hoc alliances with like-minded stakeholders, and it is one of AIBI’s tasks to participate in such networks. We work on an ongoing basis with the Bread Initiative, a platform that brings together industrial and artisan bakers, mills, ingredient suppliers and yeast producers; in a sense, it is at the heart of the bakery value chain. We also develop and/or participate in bilateral contacts and ad hoc platforms that are formed on regulatory issues. Recent examples include a joint initiative on sugar availability or a platform set up to address worrying developments in the availability of rodenticides, a pest control agent.
“In an increasingly complex political and regulatory environment, the success and existence of any business or industry sector is dependent on its ability to control developments and ensure strong and credible representation to influence them.”
Georg Heberer
AIBI is also a signatory/member of the EU Code of Conduct for Responsible Food Business and Marketing Practices, which is an important tool for cooperation between authorities, food processors and their upstream and downstream partners. As an association, AIBI counts the national bakery associations among its members. We are proud that, following the recent accession of the Slovakian and Polish associations, we can now count 15 such associations among our members.
Market topics
bbi: Moving on to another topic, the European baked goods market, are there significant changes in the supplier structure? Are the industrial companies gaining market share in Europe and how do you assess the situation in Germany?
Heberer: The situation can vary slightly from country to country. In general, the successive crises have put the resilience of food producers to the test. Rising production costs are affecting both large bakeries and artisan producers, with large bakeries faring slightly better on average thanks to economies of scale. In conjunction with the general inflationary trend, consumers seem to be paying more attention to the price of bread and are, therefore, more likely to turn to supermarkets, where they can find fresh, quality products, now often prepared directly in-store, at a lower price. There is a perception that supermarket sales are increasing at the expense of artisan bread. Despite some volume growth, this does not necessarily mean that it will be easy for industrial bakers, as they face high production costs, fluctuations and further pressure on margins. Nor does it mean that a strategic move is being made to take over market share. In this context, it is more about putting our daily bread on the table, whether it comes from the supermarket or from an artisan baker, rather than fighting for a few points of market share. The coexistence of artisanal and industrial production is beneficial for both sides, and there is a clear awareness that both production methods must exist sustainably.
bbi: Food retailers, restaurants and delivery services often stand between the manufacturer and the end consumer. Have there been any significant changes in this field in recent years, and what impact have they had?
Heberer: I wouldn’t say that retailers and others are between producers and consumers, but they are part of a chain that goes from primary production to the bread on our tables. If anything good has come out of the crisis, it’s probably the sense of chain and partnership, as opposed to a segmented, purely commercial relationship. I think the awareness of the need to see the supply chain as a partnership has grown. This is very evident in our thinking on sustainability, for example, where we recognize that we are clearly in the same boat and need to find the right way forward together.
“I think awareness of the need to view the supply chain as a partnership has grown. This is very evident in our thinking on sustainability, for example, where we recognize that we are clearly in the same boat and need to find the right way forward together.”
Georg Heberer
bbi: The raw materials markets are a challenge for all bakeries. Suppliers are becoming larger and more international and the influence of speculators on raw material prices cannot be overlooked. Can the industry still develop freely at all and what opportunities do you see, for example in Brussels, to ensure more freedom?
Heberer: I think one of the keywords when it comes to commodities is volatility. We have seen that not only can the availability of some ingredients suddenly be called into question, but they can also be subject to significant price increases. In some cases, a short local supply chain can be a solution; in other cases, internationalization of supply and diversification of sources can help. Trust and the robustness of supplier relationships are also important. We are, perhaps, on the cusp of a paradigm shift in Europe’s socio-economic system. Together with our colleagues from the Bread Initiative, we have some ideas for the European elections and the next political cycle that follows. We see opportunities in terms of access to raw materials, access to energy, the sustainability of our sector and labor shortages.
bbi: What consumer trends do you see in the European baked goods market?
Heberer: The entire food industry, and therefore also the bread sector, is subject to a variety of trends set by consumers. Some are only important for a short time, others last a little longer. Two things are important: our industry must react appropriately to such trends, which include growing interest in vegetarian and vegan specialties, spelt, or the desire to reduce salt. On the other hand, we must not forget that bread is and remains an undisputedly valuable staple food and is held in very high regard by customers. We must continue to deliver quality in the future!
AIBI Congress in Hamburg
bbi: AIBI’s community is meeting in Hamburg this year; what will be the most important topics?
Heberer: The AIBI congresses are an opportunity to take stock, address important topics and look to the future. This year’s edition, from May 22 to 24, 2024 in Hamburg, will not deviate from this practice. We have decided to structure the congress into three sessions, dedicated respectively to sustainability, the workforce challenge and digitalization, as well as an overview of international developments. We expect the sustainability session to pave the way for a chain approach to an ambitious regenerative agriculture project. In the session on labor force, we want to look at a societal and practical approach to the problem of labor availability that most sectors are facing. The international session will provide an opportunity to hear first-hand from fellow bakers from other regions. All information and registration are available until May 13, but places are limited so it is better to secure a place now.
“We expect the sustainability session at the AIBI meeting in Hamburg to pave the way for a chain approach to an ambitious regenerative agriculture project.”
Georg Heberer
The 2024 AIBI Congress will he held in Hamburg, Germany.
The event’s website is: www.aibicongress.eu.
bbi: How many guests are you expecting to attend the congress and how strong will the participation from other sectors be?
Heberer: One of the characteristics of the AIBI Congress is its relatively small and high-ranking number of participants. Compared to other business events, this favors high-quality networking. We expect around 120 participants, including representatives of the most important suppliers and downstream partners.
bbi: Your term as AIBI President is coming to an end. Do you intend to stand for re-election, or who has the best chance of becoming your successor?
Heberer: According to AIBI practice, the term of office of the incumbent President ends with the Congress. Our Articles of Association do not provide for re-election. The succession is planned in advance and we have already prepared it. The participants of the Congress will be the first to know our proposal, but, of course, we will communicate publicly shortly afterward.
bbi: Looking back, what was the most fulfilling event for you during your presidency?
Heberer: I was pleased that we were able to significantly intensify cooperation in the AIBI committees. The admission of two new members is a strong signal of the importance of our organization. That is a great result!
However, I am particularly grateful for the support I have received throughout my presidency from my vice president, Mr. Jean-Manuel Leveque. He has always been a loyal and reliable advisor at my side! Merci beaucoup!
bbi: Mr. Heberer, thank you very much for talking to us.
