2. Who is KLN Tuffy’s Pet Foods – maker of premium pet foods – NutriSource, Pure Vita & Natural Planet Kenny’s Candy & Confections – manufacturer of licorice, gummies, fruit snacks, chocolate covered products, popcorn and indulgent snacks – Wiley Wallaby, Juicy Twists, Kookamunga & Sweet Chaos

3. 1947 1964 Tuffy Nelson starts DuMor Feeds/Pine Lake Feeds 1971 1973 1987 After returning from college Kenny joins his Dad Tuffy and together they start Tuffy’s Pet Foods Tuffy’s sold to StarKist Foods a division of H.J. Heinz Barrel O’ Fun Snack Foods starts producing chips and snack foods – sold in 2015 to Shearer’s Kenny’s Candy opens doors KLN Family Brands Timeline

4. 2001 2012 Purchased back Tuffy’s Pet Foods – all 3 companies under KLN 201320152016 NutHeads Chocolate Factory Opens Tuffy’s state of the art facility opens with food safety foremost in mind KLN Family Brands Timeline Combine Kenny’s Candy & NutHeads Kenny’s Candy launches gummy products

5. Roger Maris Cancer Center

6. KLN Family Brands Timeline 3 State of the art facilities in Perham Occupying over 575,000 square feet

7. Overview of Vermont Labeling Law Setting standards that effectively require change in production or labeling of most of America’s Food Supply Any packaged food produced with genetic engineering and sold in Vermont will be required to label their product accordingly. The manufacturer must label the product in an area that is easy for the customer to find and read with specific statements. As of today, law takes effect July 1, 2016 with fines of $1,000 a day for each product that is out of compliance with the law Exempt from the law – meat/poultry, fish, dairy, medical food & alcoholic beverages Current legislation is working for a compromise on a national standard for labeling

8. Impact on KLN Family Brands Sell products in all 50 states and over a dozen foreign countries Purchase over 25 million pounds of corn related products each year (16.5M at Tuffy’s and 9M at Kenny’s) Utilize 6.5 million pounds of sugar related products Soy, Canola and other GMO ingredients are used in lesser amounts by our facilities

9. KLN GMO Labeling Stand The FDA currently states, “these foods don’t present different or greater safety concerns than their non-genetically engineered counterparts.” Clarification on the definition of GMO – single cohesive statement A unified and common sense guideline to labeling. Needs to be at the federal level and not at the individual state level to avoid a patchwork of laws Consistent across markets to assure integrity of labeling/minimize consumer fears Voluntary labeling, not a mandate that may result in excess costs Encouragement of consumer involvement in food choices, educating oneself on what matters to them

10. Challenge: Strain on the System Farmers Lower Yields Seed availability Crop Cycle Cross Contamination Environmental Impact More land More chemicals More tilling More erosion Testing/Segregation Increased paperwork and testing Storage and space for segregation Increased labor costs Logistics National Customers 11 th Hour timing Warehouse space Different inventories, sku counts

11. Challenge: Increased Costs Higher Ingredient Costs Non GMO ingredients cost on average 20%-25% more than GMO Willingness to Pay More? Small percentage willing to pay more, up to 30% for Non GMO products Grocery Bill Estimated $1,000 per year increase in the average family grocery bill for GMO labeling Reformulation KLN would have to reformulate a majority of our 500+ sku’s to move to non gmo.

12. Challenge: Confusion Definition of GMO What defines GMO Uniform/Consistent Definition Unified across Markets Different governing bodies – USDA meats Food Service – plate vs. package Patchwork Labeling Over ½ grocery items on shelf made with GMO’s won’t be labeled as such under Vermont Law Estimated 2/3 of all foods sold in Vermont exempt from law False Sense of Security Labeling in no way indicates risk, safety or quality FDA states GMO foods do not present different or greater safety concerns

13. Conclusion: The FDA has approved that GMO’s are safe – there is no science to backup any anti-GMO claims Increased prices based on higher ingredient cost and additional costs of handling, processing and distribution of products Labeling should be voluntary, reasonable and consistent – leaving the decision at the individual state level creates a web of problems for suppliers and confusion for the consumer Consumers need to become involves to determine the fit for their personal conditions and taste