1. SUPERVALU Diversity & Inclusion Overview
Darnell Allen
Vice President, Diversity and Inclusion
SUPERVALU
SUPERVALU Diversity & Inclusion
Overview
Good morning, and thank you for having me here today.

2. About SUPERVALU Fortune 50 company Fortune “Most Admired” company
Third-largest grocery company in the United States
135 years of industry experience
Acquisition of premier retail properties from Albertson’s Inc. on June 2, 2006
First, I’d like to introduce you to SUPERVALU. We are a Fortune 50 company headquartered in Eden Prairie, Minnesota.
We have been in the grocery business for more than 135 years, first as a grocery wholesaler and distributor. In the 1980s, we began to enter grocery retailing, as well. Some of our retail banners include Cub Foods in the Twin Cities, Farm Fresh in Norfolk, Shoppers Food & Pharmacy in Washington DC and Baltimore and Jewel-Osco in Chicago.
Today, following our June 2, 2006, acquisition of premier retail properties of Albertson’s Inc., we are now the third-largest grocery company in the country.

3. Grocery Retail and Supply Chain Leadership
A legacy of service and innovation with 36 distribution centers delivering best-in-class supply chain services
Unique blend of retail formats and capabilities in geographically and demographically diverse markets
Supply Chain Services
Grocery Retail
SUPERVALU does not go to market with just one grocery format – instead we take a multi-format approach, matching the needs of a geographic market to determine how we can best participate.
We well understand the importance of key grocery retail formats, and the need for a company as large as ours to be agile. We empower our management across our geographies to make merchandising and marketing decisions that create stores that are highly relevant to the communities in which we operate.
Our retail operations are supported by a leading supply chain organization. Our 36 distribution centers provide both our corporate stores and affiliated independent retailers with best-in-class service levels and competencies that leverage our company’s size and scale to best serve all of our customers.

4. Focus on the Future The industry was evolving
Consolidation Entry of mass and niche retailers
SUPERVALU had a long-term plan to grow retail presence through acquisition
September 2005: The game changes
Albertson’s Inc. announces decision to sell assets
Back in 2005 and the few years before, the grocery retailing industry was really evolving. There was a lot of industry consolidation and we were seeing a lot of new entrants into the grocery retail sector – everyone was getting into food.
At the same time, SUPERVALU and our board of directors were developing a long-term strategic plan to grow our retail presence. Our supply chain business – historically a low margin operation – was largely mature. And we knew we had the expertise to really go after grocery retailing. We would grow at a moderate rate through strategic acquisitions.
But then, in September 2005, the game changed when Albertsons – the country’s 3rd largest grocery retailer announced its intent to sell assets.
We knew that this was what we’d been waiting for – the opportunity to change the face of SUPERVALU and the grocery landscape – all in one fell swoop.
We had the opportunity to change the face of SUPERVALU and the grocery landscape

5. Top U.S. Grocery Companies Based on Total Sales*
June 2, 2006: A Monumental Date
Acquired more than 1,100 premier retail properties
Acme
Bristol Farms
Jewel-Osco
Shaw’s and Star Markets
Albertsons in Idaho, Utah, Nevada, Southern California
Sav-On and Osco in-store pharmacies
Top U.S. Grocery Companies Based on Total Sales*
Company
Sales
Wal-Mart Stores
$ 317.3
Kroger Co.
$ 59.9
The New SUPERVALU
$ 44.0**
Albertsons
$ 41.3
Safeway
$ 38.6
Ahold USA Retail
$ 22.6
Publix Super Markets
$ 20.1
SUPERVALU
$ 19.9
Delhaize America
$ 16.6
Ultimately, working through the circles and squares of the transaction flow chart resulted in a fundamentally changed company. In the end, we purchased:
Acme Markets in the Philadelphia area
Bristol Farms in California
Jewel-Osco in greater Chicago
Shaw’s and Star Markets in New England
Albertsons-banner stores in Idaho, Utah, the Northwestern U.S., here in Nevada and in southern California, and
Sav-on and Osco in-store pharmacies
These stores were added to our prior holdings:
bigg’s in Cincinnati
Cub Foods in the Twin Cities
Farm Fresh in the Virginia Beach markets
Hornbacher’s in Fargo/Moorhead
Shop ‘n Save in St. Louis
Shoppers Food and Pharmacy in Washington D.C. / Baltimore
Our natural and organic banner, Sunflower Market
And our national extreme-value, limited assortment banner, Save-A-Lot
And of course our Supply Chain business.
With this acquisition, SUPERVALU transformed itself into a national retail powerhouse serving consumers coast-to-coast, border-to-border.
You can also see a a snapshot of how this acquisition changed our position among the top grocery retailers ranked by U.S. sales during the year of the transaction.
SUPERVALU is unique on this list due to the diversified nature of our company, with two highly complementary businesses that allow us to capture a broad range of opportunities -- from the beginning of the supply chain to the store shelf.
* Supermarket News “Top 75” Grocery Retail, January 2006.
**estimated

6. A Transformed Retail Powerhouse with Excellent Future Growth Potential
SUPERVALU and our family of banners operate in 48 states and approximately 2500 retail locations.

7. Jeff Noddle
Chairman & CEO, SUPERVALU
“We know that driving towards deepening our understanding of diversity every day is vital to continuing to serve our customers and our associates better than anyone else can.”
Our Chairman and CEO Jeff Noddle is a champion of diversity and supports the department’s initiative by integrating Diversity and Inclusion into his key messages and business priorities.

8. Diversity and Inclusion ~ Mission Statement
Our diversity and inclusion strategies and initiatives will always…
Meet our customer needs better than anyone else, coast-to- coast and border-to-border
Improve performance and profitability to be the best place to invest in our industry
Build an energetic and productive environment where diverse associates, customers and vendors are treated with courtesy, dignity and respect
Leverage talent and resources to be the best place to work in our industry
Our mission is to embrace and encourage the inclusion of diverse backgrounds, experiences and perspectives to strengthen our company and help build shareholder value. To do this, our diversity and inclusion strategies will always focus on the following four areas:
Meet our customer needs better than anyone else, coast-to- coast and border-to-border
Improve performance and profitability to be the best place to invest in our industry
Build an energetic and productive environment where diverse associates, customers and vendors are treated with courtesy, dignity and respect
Leverage talent and resources to be the best place to work in our industry

9. The Four Pillars of Diversity and Inclusion
Managing our Diverse Workforce – As we access the talent within our organization we must identify our high potentials and constantly communicate and embrace them. These individuals need to hear from us and they should know that they play an important part in the continuing growth of the new SUPERVALU. Our succession planning process along with mentoring are two tools that are available to assist with managing our diverse workforce.
Understanding Differences – or to put it simply, Inclusion, which refers to creating an environment where diversity is valued and where all associates actually participate in key opportunities and decision making activities of the organization it’s also about building, understanding and maintaining relationships. Continuing-education is key to “understanding the differences” in our diverse workforce. And we will continue to improve our relationship with associates who are different from us whether it’s gender, sexual preference, religion or ethnicity. And we have various ways of making this happen with our associates through:
Diversity Training, Affinity Groups, Bilingual associate communications, Second-language education for managers Cultural activities, celebrations and diversity speakers, Diversity Newsletters, Web Portal
External Marketplace – focuses on diversity mixtures that impact the business by continually strengthening our supplier program, which will align our product offerings and store marketing to reflect the communities we serve. We do this through target advertising in diversity publications, multilingual marketing materials; along with enhancing our customer service through diversity training.
Diversity Representation – We form and/or rebuild partnerships with colleges, and other educational agencies that are comprised of women and minority candidates
We recruit through associate referrals, career fairs, on-line diversity sites,
We educate students about our industry, and provide internships, and scholarships to students who are strong candidates to strengthen our business, once they have completed their formal education
We advertise in diversity-focused and internet web sites.
Finally, on a quarterly basis we will work with the human resources, vice presidents to develop a quarterly report to track and measure diversity progress in all retail, corporate and supply chain areas of the new SUPERVALU
Managing Our Diverse Workforce
Understanding Differences
External Marketplace
Diversity Representation

10. Recognition 2007 Supermarket News Champion of Diversity
100% on 2008 and 2009 Human Rights Campaign Corporate Equality Index
2008 Twin Cities PRIDE Corporate Achievement Award
Progressive Grocer recognized five of our women leaders
SUPERVALU’s commitment to diversity and inclusion in the past, and especially during the last year, garnered several accolades for the company during Fiscal 2008.
2007 Supermarket News Champion of Diversity
100% on 2008 and 2009 Human Rights Campaign Corporate Equality Index (SUPERVALU is the first and only grocery company to achieve this) two years in a row
2008 Twin Cities PRIDE corporate achievement award
Progressive Grocer recognized five of our women leaders in 2008

11. Employee Resource Groups
What are Employee Resource Groups?
Groups of associates who participate in initiatives and activities with others of a similar race, ethnicity, gender or common interest
Benefits of Business Resource Groups
Foster diversity and inclusiveness within the company
Recruit and retain diverse associates through mentoring
Support and participate in community events
Assist with marketing activities to drive shareholder value
Offer valuable viewpoints on company projects & policies
Today I am here to talk about what many companies call Employee Resource Groups and how SUPERVALU leverages these groups to make a bottom line impact.
Traditionally, Employee Resource Groups have been defined as groups of associates who form and participate in a network of others of a similar race, ethnicity, gender or common interest. Many companies recognize and support the benefit these groups have to employee engagement and retention, but may struggle in making that business connection or case around the positive financial impact employee resource groups can have on the bottom line.

12. Business Resource Groups
What is in a Name?
At SUPERVALU, Affinity Groups evolved to
Business Resource Groups
Employee Resource Group
Employee Network Group
Affinity Group
What is the difference?
In addition to a shared affinity, Business Resource Groups emphasize the value the associates provide on the business perspective and help leaders and business units proactively reach out for assistance from them.
But what is in a name? Whether you call them Employee Resource Groups, Employee Network Groups, Affinity Groups or something else, these types of groups need to show their worth and contribution to the business itself and align their goals and strategies with that of the organization’s. The associates who participate in the Business Resource Groups help to foster diversity and inclusiveness, recruit and retain diverse associates, and build our brands out in the community. The also assist with marketing activities to drive shareholder value. Because of their closeness to our customers, associates who are part of these Business Resources Groups can help us reach fellow associates, potential candidates and the community with new merchandising/marketing, education, recruiting and outreach initiatives that resonate with diverse individuals
This year at SUPERVALU, we renamed these groups – from Affinity Groups to Business Resource Groups – to emphasize the value that these associates can provide with their unique, diverse perspectives and experiences. We want to foster a culture in which the business to proactively reach out to these associates for diversity and inclusion insight and input into business decisions. One example of this is the HOLA group, a Business Resource Group of Hispanic professionals at our Home Office campus. Last year, they met with members of our leadership team to discuss ways that the grocery industry can better reach out to the Hispanic community.

13. Business Resource Groups Total Business Resource Groups Currently: 29
Asian: Southern California
African American/Black: So Cal, Home Office
Hispanic/Latino: Southern California, Home Office, Boise
Women: So Cal, NW, Boise, Salt Lake City, Shaw’s, ACME, Home Office, Cub, SUPERVALU India
Multicultural: NW, ACME, Jewel-Osco, Northern Region, So Cal, Save-A-Lot, Shoppers, MPLS DC, Hornbacher’s, Shop ‘n Save, Las Vegas
GLBTA: Boise, Shaw’s, Home Office
SUPERVALU currently has 29 Business Resource Groups that operate under those common goals. These groups are varied and include Asian; African American/Black; Hispanic/Latino; women; multicultural; and gay, lesbian, bi-sexual, transgender and allies. By end of this fiscal year the number of BRGs at SUPERVALU will have grown to over 30.

14. 2008 Catalyst
The 2008 Catalyst Benchmarking Survey showed that 83 percent of surveyed companies support employee resource groups.
So where do you start if you don’t have or leverage BRGs in your organization or if you would like to gain more support and buy in around the benefits of leveraging BRGs to make a business impact.

15. Top Business Reasons for Resource Groups
Reduction in turnover
Less absenteeism
Increased associate productivity
Improved bottom line
Increased organizational competitiveness
Require little financial backing
If you haven't’ done so already, make a strong business case for utilizing and garnering support for BRGs in your organization. SHRM cites this list as the most compelling business reasons to get behind BRGs. Do your research and site other company’s success with BRGs and how that can be modeled in your organization.
Source:

16. How do you start a Business Resource Group?
Find a champion and gauge associate interest
Craft a Mission statement or statement of purpose
Establish goals – both short-term and long-term
Detail tactics on accomplishing the goals, along with a timeline
Enlist support of an executive sponsor
Define how the group’s mission and goals relate to the company’s core values
Once the business case has been outlined and you have executive level support find a champion for the affinity interested in starting a group and help them to gauge the organization’s interest level in such group. Online surveys, focus groups or company corporate communications may be the way to go about this.
Other things for the group to consider is what their mission is going to be – how will the group support both it’s members and the business objectives. Goals should be both short-term and long-term. Encourage groups to start small and not take on too many initiatives right away. The primary goal intially is to communicate the groups existence and get leaders and associates at all levels to support and buy into the group and what it stands for.
One key way to do this is enlist the support of an executive sponsor. At SUPERVALU the executive sponsor is a senior level executive – generally VP or above – who helps oversee the groups mission and activities and enlist support from their peer group, as well as communicates the business benefit the group is to the organization.

17. How do you start a Business Resource Group?
Provide Structure
Operating Policy
Leadership Structure
Ask for solutions, not just problem identification
Determine how budget dollars will be
Establish goals around objectives
Support and further business objectives
Support recruitment for affinity of the group
Support the professional development of the group
Contribute to the community
Increase awareness of diversity
Depending on the company’s corporate environment the BRGs may operate with a significant amount of structure or a limited amount of structure. Some top level executives push back on the idea of BRGs because they feel they may work negatively against the organization. However, to overcome this, a set of guidelines and operating policies can generally forgo many of their potential concerns. It also ensure consistency between groups.
With the help of the executive sponsor and the individual group’s leadership team BRGs should establish operating goals and activities around 3-5 objectives. Some of the most common ones are listed here and support both the individual BRG member, as well as the business and its community.

18. Resources to support BRGs contributions at SUPERVALU
Goals and Objectives
Event Planning form
Monthly Webinar meeting
Annual Diversity & Inclusion forum
The way in which SUPERVALU’s BRGs show their value and demonstrate their commitment to the business are by establishing goals and objectives that align specifically with the organization’s business priorities.
The event planning sheet is a form used to document and report out on the activities and events the groups hold. In addition this form is used to share ideas and successes with other BRGs as well as act as a resource in reporting and speaking to senior leaders about the great things our groups do to contribute to the business.
We hold monthly Webinars to discuss D&I initiatives and have different groups share the projects and activities they are working on in their banners and regions.
Finally, on an annual basis we hold a Diversity & Inclusion forum where each BRG can send two representatives and along with our executive leadership staff we hold a meeting that focuses on education and awareness, as well as a time to network and interact.

19. How we Communicate Monthly Business Resource Group call
Home Office Diversity & Inclusion Bulletin Board
Web site
Mission statement
Business Resource Group sites
Quarterly newsletter
The way in which SUPERVALU’s BRGs show their value and demonstrate their commitment to the business are by establishing goals and objectives that align specifically with the organization’s business priorities.
The event planning sheet is a form used to document and report out on the activities and events the groups hold. In addition this form is used to share ideas and successes with other BRGs as well as act as a resource in reporting and speaking to senior leaders about the great things our groups do to contribute to the business.
We hold monthly Webinars to discuss D&I initiatives and have different groups share the projects and activities they are working on in their banners and regions.
Finally, on an annual basis we hold a Diversity & Inclusion forum where each BRG can send two representatives and along with our executive leadership staff we hold a meeting that focuses on education and awareness, as well as a time to network and interact.

20. BRGs are Good for Business
Business Opportunity: Gain increased market share with growing segment and buying power of the GLBTA community.
Goal: Achieve 100% rating on Human Rights Campaign Corporate Quality Index.
Action: Identify gap and communicate the internal and external benefits of closing this gap.
Outcome: Addressed gaps with support of senior leadership and achieved 100% rating on 2008 HRC Corporate Quality Index becoming the first grocery chain to do so.
Human Rights Campaign since 2002 produces an annual survey of U.S. companies and their policies and practices pertinent to gay, lesbian, bisexual and transgender employees, consumers, and investors. They also produce a list of “best places to work” and “Buyer’s Guide” based on these ratings.
SUPERVALU had achieved a score of 87 but had never had a perfect score, nor had any other organization in our industry.
Two points were holding the organization back from obtaining the a 100% on the survey and
A member of the GLBTA Business Resource Group approached the CEO, Jeff Noddle and the VP of Diversity & Inclusion, with the two items and the impact it could have on the choice of that population to shop or not at our stores.
SUPERVALU was also positioned to be the first grocery retailer to achieve a perfect score
With the changes and research this person and the group did, SUPERVALU made changes that in turn resulted in a score of 100% rating on the HRC survey for 2008 and 2009, which also allow SUPERVALU to be listed as one of the “best places to work and to shop”! Marketing shows that the GLBTA shoppers and investors are very loyal to companies with 100% rating by HRC and this audience posses $830 billion of expendable income as well. More expendable dollars than any other market segment. This is not why we achieved our 100% rating, it was the right thing to do. But additional sales are always welcome!
Of the 259 Corporations that have achieved 100 rating, SUPERVALU remains the only grocery chain to have reached this achievement!

21. Final Notes
Successful companies learn to recognize the potential of Business Resource Groups and to harness the potential to drive business results.

22. NEW Integrating Diversity
2008
NEW Integrating Diversity 22