Dear SFA Members,

The past year has gone by remarkably fast. As your Chairman, starting at the end of the San Francisco Convention, I have continued to be excited and pleased by the work the SFA staff has done to increase the value of our Association.

Whether it was one of the Potato Chip 150th anniversary events, like Potato Chip Day at the Races in Saratoga Springs, New York, or the European Snack Food Convention in Barcelona, Spain, the SFA membership and staff clearly demonstrated their commitment to representing SFA in a positive fashion.

SFA has had to manage a series of negative impressions of our industry surrounding trans fats, obesity, acrylamide, restrictions on sales of snack in schools, and now "carbohydrates." The association's perceptive work in communicating aspects of our industry that are far more positive have helped to keep Congress, governmental agencies and the press clearly informed and more objective.

I appreciate the support of all the staff and my Executive Committee and Board of Directors. Their counsel and support have made my tenure as Chairman a notably positive experience.

I also want to thank the United States Potato Board (USPB) for its support of a number of promotions that SFA conducted during my year as Chairman. The annual Halloween and Routing for Dollars Display Contests resulted in creative potato chip and snack displays in retail outlets throughout the country. USPB also hosted an Internet survey on consumers' favorite flavors of potato chips on its Web site. The results of the survey were publicized during National Snack Food Month 2004.

I had asked that SFA members and associates become more involved by serving on committees to better understand what the association does for them, and to help support and direct those pursuits. I am glad to say that we have a strong group of committee members and their continued leadership will make the association a more enduring organization.

There is also continued strong event sponsorship support and commitment from our Associates and I encourage each member to thank those fine companies for playing an important role in SFA.

My last thank you is to Jim McCarthy, both for his friendship and dedication for making the SFA a stronger and better organization. He has through constant communications and direction created a focused and solid team dedicated to our success.

Best wishes for a successful future in your own businesses as you continue to support SFA and participate in the programs that the association offers.

Sincerely,

David R. Ray

Chairman of the Board