The Changing Landscape Confronting America's Food Industry

May 29, 2008

At Quinn Gillespie & Associates (QGA), we believe that the American food sector's relationship with Washington is in a state of transition. For decades, as Washington has focused largely on the ability of American agriculture to produce the world's most affordable and safest food, food issues have often been left to the Agriculture Committees and to those policymakers most friendly to farmers and industry. That paradigm is changing.

In the near term, the changing landscape is perhaps most evident in the increased aggressiveness of the Oversight Committees. This congressional session has seen a host of vigorous oversight investigations by the House Energy and Commerce Committee. Certainly, this dramatic increase in oversight activity reflects the priorities of some Democrats after many years in the minority and a strong distrust of the Administration's regulatory decision-making. We believe, however, that it also reflects broader structural changes that are unlikely to abate in the near term.

However unlikely it would have seemed a decade ago, food policy is actually gaining real attention in the popular culture. As a consequence, the public will see changes in the way our political system confronts these issues. By the millions, Americans are buying books that lambaste America's food companies and blame industry for a range of ills from obesity to global warming. Animal rights advocates are running sophisticated and expensive campaigns to denigrate animal agriculture and meat products. The "green" movement of smaller organic farms and community-based agriculture is promoting a new food paradigm that -- while certainly appealing in many respects -- is not a scalable model to feed the country efficiently or affordably.

These cultural currents are real and are already affecting the debate in Washington. The food industry should ready itself to confront these new challenges effectively; the traditional tactics may no longer be adequate.

QGA's Experience Assisting Clients in Oversight and Investigation Matters

In the near term, we believe that this new dynamic will be most evident in continued aggressive oversight activities on Capitol Hill. At QGA, we believe that one of our greatest assets is the deep experience of our firm's members and the understanding they have of the oversight and investigations process.

QGA professionals have:

• Extensive experience with the chairmen, congressional committees and independent agencies that most often conduct oversight investigations.
• Served in government and been directly involved in either conducting or responding to oversight investigations.
• Effectively assisted numerous corporations and organizations through the investigation process.

This experience gives us an acute appreciation for the unusual dynamics involved in a government investigation. QGA understands that all business aspects-legal, internal communications, investor/ shareholder relations, external communications, media, and government relations/advocacy-need to be carefully and strategically coordinated.

QGA has worked with a significant number of clients during congressional oversight and federal government investigations. This includes assisting:

• A health-related trade association during congressional inquiries into non-profit, tax exempt issues;
• A major food retailer during an inquiry into its packaging and food safety practices.
• A global financial services firm facing oversight from the House Financial Services Committee over its involvement with Enron;
• One of the major accounting firms to shape its corporate strategy related to legislation and industry reform issues before Congress in the wake of Enron and other accounting scandals;
• A leading food company throughout its long battle with the U.S. Department of Justice, ending in a complete exoneration of our client;
• A global financial management firm during HealthSouth-related congressional and SEC inquiries;
• A leading healthcare provider during a Department of Justice investigation into Medicare billing issues;
• A major technology firm during an SEC investigation into accounting and financial reporting issues;
• Another technology firm in its interactions with the House Subcommittee on Oversight and Investigation;
• A consumer finance organization during Senate investigations into its non-profit status;
• An energy company complying with requests from the House Energy and Commerce Committee; and
• A non-profit conservation organization during a review by the Interior Department Inspector General and Senate inquiries. 

QGA is equally adept at serving as chief strategist assisting our clients as they navigate their business under the harsh spotlight of political scrutiny. Among the specific services we can provide are:

• Insight and strategy regarding the investigation process
• Representation before Members of Congress and government officials
• Message development and corporate positioning
• Drafting of testimony and official statements
• Scenario planning and crisis communications
• Preparing corporate representatives for public hearings
• Media training

Members of QGA's Investigations & Oversight Practice

Jack Quinn. As White House Counsel under Bill Clinton, Jack handled for President Clinton a number of investigations undertaken by several congressional committees. Since leaving the White House, Jack has shared his experience and insight with numerous QGA clients and has served as a television commentator on government investigations.

Jeff Connaughton. Jeff brings the insight and experience of having served in the White House Counsel's Office from 1994-1995 where he dealt with numerous issues arising from multiple congressional investigations of the White House and Clinton Administration. He also worked for then-Chairman Joe Biden of the Senate Judiciary Committee during 1987-1991.

Allison Giles. As Chief of Staff to the Ways and Means Committee (2001-2006), Allison worked with the Administration on Medicare prescription drug oversight and implementation issues. During that time, the Committee led extensive investigations on pricing practices and costs associated with tax-exempt organizations and an in-depth investigation of a tax scheme by prison inmates which resulted in significant IRS reforms.

Kevin D. Kayes. Kevin was most recently Chief Counsel to incoming Majority Leader, Harry Reid and before that was Staff Director and Chief Counsel on the Senate Commerce Committee for Senator Ernest F. Hollings during his tenure as Chairman and Ranking Minority Member of the Committee. During his tenure on the Commerce Committee, Kevin was involved as the committee conducted investigations into various corporations and industries. This included the investigation into the Enron Scandal that helped lay the groundwork for subsequent Senate Banking Committee hearings and enactment of the sweeping Sarbanes-Oxley legislation, as well as an investigation of the Boeing Tanker Deal with the U.S. Air Force.

Sue Garman Kranias. Sue has spent most of her career helping corporations manage issues and crises. She has worked with clients to mitigate the damage caused by acute and negative accusations surrounding investigations by state attorneys general, the Justice Department and FTC, as well as during congressional oversight.

David Lugar. David has advised several clients who have come before the Energy and Commerce O&I Committee. For more than a year, one of the firm's energy clients was continually asked for varying documents and asked to testify before the Subcommittee. David supported and advised the client throughout this process. Ultimately, the investigation was dropped. Additionally, David has represented several companies before the Senate Homeland and Governmental Affairs Committee.

Nick Maduros. Nick joined QGA at its inception in January 2000. Nick works with clients on a wide range of legislative and regulatory matters from financial services to agriculture to Native American issues. Additionally, he has assisted a number of clients in the resolution of international trade disputes and the negotiation of trade agreements. He has expertise in advising companies involved in civil or criminal legal proceedings. Prior to joining QGA, Nick worked as an attorney in Arnold & Porter's Public Policy Practice Group where he represented clients before Congress, the Administration and various independent agencies. Nick has also worked as an attorney in the Washington office of Verner, Liipfert, Bernhard, McPherson & Hand and at an educational technology company as counsel to the Chairman and CEO.

ABOUT QUINN GILLESPIE & ASSOCIATES

Quinn Gillespie & Associates (QGA) provides public affairs counsel to leading corporations, coalitions and trade associations. One of the only firms to integrate lobbying and communications services, QGA's team of nearly 30 professionals bring a bipartisan, multi-disciplinary approach to helping clients successfully manage public affairs challenges. For more information, please visit www.qga.com or contact Stacey Morton Bowlin at 202-429-6879.