2001 Farmer Cooperatives Conference October 30, 2001 Meeting the Needs of Our Food Customers

Blue Diamond Growers How to Better Meet Customer Needs –Adapt & Change –Reorganize

Reorganization Guiding Concepts 1.Market Driven 2.Structure into Business Units 3.Strengthen Key Customer Relationships 4.Business Planning Driving Day-To-Day 5.Empowered Work Force

What is a Business Unit?  Cross Functional Business Team  Structured Around Market Segments  Aligned with Production Cells  Formulates Objectives & Strategies  Accountable for Results

Business Unit Benefits  Clearer Focus  Improved Linkage  Stronger Customer Relationships  Market Segment Profitability  Better Overall Business Performance

Business Units Processed Ingredients Commodity Americas Industrial Export Industrial Consumer Foods

Confectioners Cereal/Baking Manufacturers Processed Ingredient Customers

Marzipan & Paste Manufacturers Traders and Speculators Importers/Processors Commodity Customers

Bakers/Bakery Companies Nut Roasters/Salters Repackers Inshell Buyers Ice Cream Manufacturers Americas & Export Industrial Customers

Grocery Stores & Supermarkets Drug & Discount Stores Wholesale/Club/Cash & Carry Food Service Consumer Foods Customers

Meeting Commodity Customer Needs Price Buyers Margins Minimal Buying Positions Speculative Excessive Supply & Uncertainty

Meeting Industrial Customer Needs Quality, Service & Price Brand Loyalty

Meeting Processed Ingredients Customer Needs Value Added Products High Degree of Intimacy Exacting Product Specifications Matching Infrastructure Mutually Drive Costs out of Processes

Meeting Consumer Foods Customer Needs Higher Margins Market Segments Growth Requires Closer Integration –Multiple product lines –Must deliver information plus products –Must tie technology together to lower costs –Proactive services

A Can a Week That’s All We Ask