Clif Bar & Company: A Transformative Approach To Improving Food System Sustainability Elysa Hammond Director of Environmental Stewardship September 16, 2010

A natural food company since 1992 Organic since 2003 Family and employee-owned Emeryville, California 250 employees >$200 million in sales/year Organic ingredients in all products 6 of 7 brands are certified organic 40 million lbs organic/year (70%) Clif Bar has demonstrated strong growth even in a down economy. Our 10-year compounded annual growth rate in the double-digits. Going very strong in a down economy. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Conversation matters. Organic was the catalyst. 1978 Conversations start about sustainable food and organic farming 1992 Gary Erickson starts CLIF BAR 2000 CLIF BAR stays private 2001 Sustainability program begins* 2003 First certified organic product *Clif Bar didn’t start out as green company. If we can do this, anyone can. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Systems thinking: Energy Matters U.S. Food System Energy Use 20% on farm energy use 40% packaging and processing 40% transport , storage, preparation Carbon is a leading sustainability metric in our program 17% of energy use in U.S. economy is related to the food system

You can’t see what you can’t imagine Our environmental sustainability vision Our products will be: Made with sustainable, organic ingredients; Baked with clean, renewable energy; Packaged in environmentally friendly packaging; Delivered by transportation that doesn't pollute. Our company will: Help create a more healthy, just and sustainable food system; Support a vibrant, healthy, green workplace; Generate profits that help people and the planet; Learn from and share with others

Our Sustainability Model: Five Aspirations Our Five Aspirations reflect the report’s 4 sustainability goals This sustainability model has transformed the company. We are making progress toward all goals. Economic growth, brand integrity, creating new green jobs, driving demand for organic farming and giving back to communities. Sustaining our business; employee owned since 2010; Owners committed to long term sustainable growth. Launched a separate new business, an organic farm and winery in 2004. Sustaining our Brands: commitment to product integrity. Highest quality ingredients; connecting with consumers face-to-face through grassroots cause-related efforts e.g. LunaChix, 2MC, Lunafest 10 years; no advertising. Sustaining our Community: To be a good citizen and neighbor; give back to our communities and home and abroad; Community service on company time from 2001 -2009 30,000+ hours donated with a 2009 participation rate 96%; In 2009 Clif Bar and the Foundation together donated over $3 million in product and cash to organizations in need. Sustaining our people: to live life to the fullest at home and work; help employees learn and grow. Outstanding benefits ESOP gym, Cool Commute; childcare; Nationally acclaimed workplace including best workplace for women; Sustaining our Planet: 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Examples of progress in brand, people and community aspirations Pure Prevention Campaign with the Breast Cancer Fund LunaFest women’s film festival Sponsorship of events, athletes, eco-programs People Nationally acclaimed workplace Cool Commute & Cool Home, on-site gym & classes, childcare, ESOP, dogs in the office Community Clif Bar Family Foundation –$2MM /year Community service on company time Planet New LEED certified office, solar roof with organic restaurant; climate neutral with offsets; biodiesel fleet; recycled packaging 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Environmental Stewardship- 4 areas of focus Organic, sustainable food and farming value-based supply chain; traceability & farmer connections; Organic seed Zero Waste recycled/recyclable packaging Climate action reduced carbon footprint efficient shipping renewable energy Conserve and restore natural resources In including biodiversity We’ve set 5 year goals for each of these focus areas. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Organic farming generates multiple benefits: healthier food, cleaner water, safer farming, carbon storage - 2 million lbs organic 2010 - 40 million lbs (70%) Organic farming helps deliver on all of our environmental goals Supporting organic, regenerative agriculture is the cornerstone of our sustainability efforts 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Keeping up the momentum We’re increasing support of organic farming by steadily increasing purchases; procurement goals and guidelines; nonprofit partnerships, in-house education and connecting with growers, and support for the Seed Matters initiative 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

What’s working? What’s driving transformation? 1. Consumer-driven demand for organic and natural products*. ( The USDA organic standards are working..) “Our company has experienced explosive growth over the past few years, significantly outpacing both the food industry and the categories in which we compete….  The vast majority of our retailers are looking for healthier alternatives to display across their stores.  This is a direct response to consumers demand. “ Rick Collins, VP of Sales, CLIF Business interest in Sustainability is further driving demand for sustainable products. Partnerships and educational efforts that inform, inspire and facilitate progress. *New report on the 50 Fastest Growing Grocery Chains in the U.S. – 3 of top 10 are organic/ natural. Others attribute growth to demand for organic and natural. Our company has experienced explosive growth over the past few years, significantly outpacing both the food industry and the categories in which we compete.  We attribute much of our success to offering great tasting healthy natural and organic foods.  The vast majority of our retailers are looking for healthier alternatives to display across their stores.  This is a direct response to consumers demand.  People are looking for healthy natural and organic products that do not contain the “bad stuff” – artificial colors, preservatives, pesticides, herbicides, high fructose corn syrup and fertilizers to name a few.  This growing consumer demand for natural and organic products is also evidenced by a recent report on the fastest growing supermarket chains over the past five years.  3 of the top 10 spots are occupied by Natural and Organic supermarkets – Sprouts, Sunflower and Whole Foods.  Most of the supermarket chains in the top 10 identify Natural and Organic foods as the catalyst for their tremendous growth.”   2

What are the barriers? Lack of protection from GMO contamination. Lack of supply of organic raw and processed ingredients. 300 ingredients; 60 different crops Lack of information and transparency about price, and availability of organic ingredients. How can we purchase transitional? Lack of information for consumers about how their food is grown. Lack of public seed breeding programs for organic systems, and participatory seed research that includes farmers in seed stewardship. Lack of organic food systems research. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

Food companies form the bridge Food businesses connect farmers with consumers, and people’s health with the planet’s health. v Transformational food businesses (there are many) can help drive significant progress toward sustainable agricultural systems in the 21st century. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt