Season Extension Opportunities in Wholesale Markets

Wholesale Market Options for Your Product DSD – Direct Store Delivery Work directly with local produce manager in the supermarket to arrange regular delivery of local produce from your high tunnel. Strong pricing for your harvest – fresh, local, delivered Must maintain retail spec – walk the target store and review what they have What is required? Labeling of items (including PTI compliance) Insurance Coverage (Liability & Workers Comp) GAP Certification Defined Delivery Times Refrigerated Delivery Vehicle In-store promotions/customer education Things to consider – Defined delivery times and days How to communicate your availability How do they prefer to be invoiced What payment terms are they willing to agree to Case volume per location, pack specs (12 ct vs 18 ct, vs 24 ct?) How many locations can you support

Wholesale Market Options for Your Product Food Hub – Marketing Partner Food Hub enables growers to focus on growing, harvest and packing. Food Hub manages marketing and (sometimes) transportation of your produce. Strong pricing for your harvest – Food Hub reviews options and secures top price Can accommodate volume Must maintain retail spec – What is required? Labeling of items – Food Hub should support this Insurance Coverage GAP Certification – depends on customers of Food Hub – becoming more the norm Excellent communication regarding crop planning, availability and logistics Volume – sustainable Food Hub cannot support “7 case of this and 12 cases of that” Things to consider – Defined pick-up times and days How to communicate your availability What payment terms and arrangements do they support Case volume requirements How can Food Hub maximize grower revenue

Wholesale Market Options for Your Product DC Delivery – Distribution Center Work directly regional buyer for supermarket to arrange regular delivery of local produce to their Distribution Centers Strong pricing for your harvest – fresh, local Must maintain retail spec – walk the target store and review what they have What is required? Labeling of items (including PTI compliance) Insurance Coverage GAP Certification Workers Compensation Insurance Defined Delivery Times Refrigerated Delivery Vehicle, Pallet based loadings Things to consider – Defined delivery times and days How to communicate your availability How do they prefer to be invoiced What payment terms are they willing to agree to Does your annual case volume merit a relationship with the buyer? Challenging to access regional buyers and secure confidence

What to Grow? Grow what are you comfortable growing – There is a market for many local items on the “shoulder season” or the “off-season” Grow something there is a large market for: Romaine Lettuce, Rainbow Chard, Slicer Cucumbers - “high volume” Kohlrabi , Yellow Wax Beans, Okra, Pickling Cucumbers – “low volume” Heirloom Tomato Learnings – single vs mixed case Things to consider when selecting a crop plan – What is my infrastructure Ice Machine Cooler space – size, temperature zone(s) What labor is required and what skills do they need to have Bunching Kale vs Bulk Pack Cucumbers What is my long term rotation plan for this high-tunnel Utilizing the vertical space in a high tunnel drives many decisions

Consumer Trends – Hyper-Local, Local, Regional

What are Wholesale Customers Looking For? A LOT! COMPLIANCE Certified Organic GAP Certified PTI Compliant Comprehensive Insurance PACA / Blue Book Member PROCUREMENT SUPPORT Availability List /Pricing Email Custom Excel File I-Trade FOB Pricing Delivered Pricing Volume Break-Points Over 50 Items “Harvest to Order”, Sell from the field LABELING Common New Sprout Branding PLU and UPC-A Coded Bib Ties Snap-a-Tags Elasti-tags Stickers Stem Tags Twist Ties Clamshells Support Twin-Lining Retailer Operations New Sprout Branding Generic Branding Private Label Branding Case Level ID – State Grown Full Case / Half Case Packs DIVERSIFIED GROWING OPERATIONS 6 States – 12 mth supply (NC,SC,GA,AL,FL,MS) 35 Growing Operations Custom Growing Options RECEIVING SUPPORT Retalix Member Temp Loggers Each Pallet Labeled With Purchase Order # Item Detail and Count Loading & Delivery Date

Alan Rose, Owner 1070-1 Tunnel Road, Suite 10-225 Asheville, NC  28805 (o) 828.357.5501  ar@newsproutfarms.com (c) 770 265 2880