In today’s global marketplace, effective commodity procurement and risk management are crucial to maintaining product availability and controlling costs. Few understand this balance better than alumnus Bret Hathaway, senior director of commodities and risk management at Flowers Foods, one of the largest producers of packaged bakery foods in the United States.

In this Q&A conversation, he shares insights into his role overseeing the sourcing and financial hedging of key ingredients, such as flour, sugar, and oils — along with the trends, tools, and strategies shaping procurement in the food industry today. From the impact of tariffs to the development of young talent, he offers a valuable perspective for students and professionals interested in building a career in agriculture, finance, and food manufacturing.

Q. Tell me about your role and responsibilities.

A. I am the Senior Director of Commodities and Risk Management for Flowers Foods. My team manages the physical procurement and financial risk management of all exchange-traded commodities for the company. We strategically source ingredients like flour, sugar, edible oils, and cocoa/chocolate, and hedge those positions using financial derivatives.

Q. In the food and bakery industry, what commodity trends are currently shaping procurement strategies?

A. There are a few major trends impacting and shaping our strategies today, the most significant of which is tariffs. The ever-changing tariff landscape creates varying degrees of challenges, from building new supply chains to fluctuating prices of goods. Tariffs also have a material impact on global trade flows and import/exports. For example, the lack of U.S. soybean sales to China is causing the entire market to reconsider its expectations for both this year and the future.

Q. What does a “day in the life” look like for an early-career professional on your procurement team?

A. A day in the life of an early-career professional on my team involves a lot of supply and demand modeling, should-cost analysis, financial forecasting, and contract/position management. We are always hyper-focused on:

  • Understanding and optimizing our costs.
  • Providing the business line of sight to current and expected costs.
  • Managing our current positions and contracts.

As a new career professional, starting with these activities allows you to quickly understand the bigger picture of the organization while putting your degree to work.

Q. What technical tools or systems should students be proficient in before entering the field?

A. I recommend taking data analysis and business courses to anyone aspiring to enter the procurement and commodities field. A lot of what we do is variations of should-cost modeling, where we seek to model what an ingredient, like flour, should cost at any location around the country by estimating all the components that go into the product. We also focus on fundamental analysis, where we seek to estimate what changes in supply and demand will do to prices and what impact that may have on our business. Taking data analysis classes will give you a leg up on the modeling side, and business courses will help you to better understand the incentives of the company you are working for and the companies you work with.

Q. Can you describe how Flowers Bakeries develops young talent and prepares them for leadership roles in procurement?

A. We have several ways to develop young talent and prepare them for future leadership roles. The first being our self-led Procurement Community Engagement Team. This team is led by younger members within procurement and works to build engagement and awareness through events, presentations, and virtual meetings – it is a fantastic way for younger folks to build and show their leadership skills. Another way we prepare young talent is through supplier visits, conferences, and training opportunities. Multiple times a year, we travel to various conferences and events to stay up on the latest trends and technology.

Q. What are the biggest misconceptions students have about procurement careers in the food industry?

A. I don’t know if I would call it a misconception as much as I would a misunderstanding. Many students don’t seem to realize that there are procurement and commodity jobs in the food space that can offer excellent careers. There is a lot of focus on careers at agricultural processors, chemical companies, seed companies, etc., but food companies also pull from the same candidate pool of agricultural talent.

Q. What do you wish more young professionals understood about working with suppliers and vendors?

A. That working with suppliers and vendors gives you a unique view into many different companies and the way that they operate versus their peers. You can see what best-in-class looks like by viewing a wide range of organizations through your work. You are then uniquely positioned to take those learnings and apply them back to what you do every day.

Q. How did your experience at Virginia Tech help prepare you for your career in commodities and procurement?

A. I have both a bachelor’s degree in agribusiness and a master’s degree in agricultural and applied economics from the Department of Agricultural and Applied Economics at Virginia Tech, and they have both been foundational to my career. Whether it be the undergraduate forecasting classes that I took, the Futures and Options class that Dr. Olga Massa teaches, or the graduate research that I did, the entire experience prepared me for the workforce and gave me an amazing foundation of knowledge to operate from. The learning curve of commodities can be steep, but Virginia Tech has the knowledge and resources to help reduce the curve and make it so much more approachable. 

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