People on the Move

July 1, 2004
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People on the Move

California Custom Fruits and Flavors, Irwindale, Calif. – Jack Miller joins as director of operations and will oversee manufacturing, quality assurance, and warehousing efforts.
Flowers Foods, Thomasville, Ga.–Marta J. Turner elected as senior vice president of corporate relations. She oversees all of the company’s communications and human resource functions. Leny J. Garci-Hill promoted to newly created position of vice president of diversity and recruitment. Mary A. Krier promoted to vice president of communications.
Interstate Bakeries Corp., Kansas City, Mo.–Ronald Hutchison named executive vice president and CFO.
Juanita’s Foods, Wilmington, Calif. – Ricardo Alvarez becomes first non-family president and CEO. His responsibilities include overall management and strategic direction; John A. Thompson named national sales manager of special markets; David M. Hunt, Southwest region manager of retail; Stephen Magoffin, director of marketing; Albert M. Perez, director of human resources.
Kansas State University, Manhattan, Kan.–Virgil Smail to become head of the Department of Grain Science and Industry, effective September 1.
The Long Co., Chicago–James Robinson joins as vice president of manufacturing services.
Poore Brothers Inc., Goodyear, Ariz.–Eric Kufel named chairman. Thomas Freeze promoted to president and CEO, effective August 15. David Greenberg joined as senior vice president of marketing.
IRS Urged to Reexamine Independent Contractor Status
The American Bakers Association and Independent Bakers Association sent comments to the Internal Revenue Service urging the agency to clarify the independent contractor issue.
Specifically, the associations asked the IRS to reexamine the classification of its rules for determining whether certain agent-drivers and commission drivers are statutory employees and suggested the agency place the issue in its 2004-2005 Guidance Priority List.
Under section 3121(d) of the Internal Revenue Code, certain categories of workers, including snack food and wholesale bakery drivers, are treated as “statutory employees” even though they otherwise qualify as independent contractors under applicable common law. A company that has statutory employees is required to pay the employer’s share and withhold the worker’s share of employment taxes, even though the workers are not true employees.
However, statutory employee rules do not apply if workers have a “substantial investment in facilities used in connection with the performance of such services. “ Currently, snack food and wholesale bakery drivers who are independent contractors spend large amounts of money to purchase delivery routes from the snack producer or baking company, or even from other drivers. The associations recommend that route ownership should be treated as an investment in facilities and thus exempts the worker from statutory employee treatment, provided the investment is substantial.
IBA notes that the issue goes back to 1991 when the agency issued General Counsel Memorandum 39853, which concluded that route ownership is not an investment in facilities. The associations have been fighting that decision ever since.
Burger King Awards
Alpha Baking for Service
Chicago-based Alpha Baking Co. received the Supplier of the Year Award from Restaurant Services Inc. in recognition for its exceptional service to the Burger King system. RSI is the exclusive purchasing agent and manager of the supply chain for Burger King restaurants across the nation.
According to Ed Greene, RSI’s vice president of food and packaging purchasing, Alpha was selected based on the “exceptional quality of its service and its strong record of innovation.”
Alpha Baking provides Burger King with a comprehensive line of fresh and frozen buns and breads in both the U.S. and Canada. The company has been a supplier to Burger King for 25 years.

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