1. SchoolNutrition.Org Hurdles To Making The Numbers Work Supplier Perspective

2. SchoolNutrition.Org In This Segment….  Two broad topics  Cause and some unintended effects  One perspective  Open for debate and discussion

3. SchoolNutrition.Org Expansion of Menu Choices Is generally a very good thing for SFS SFS competes with QSR and Casual Dining segments Multiple choices offer kids “control” Variety makes SFS programs stronger

4. SchoolNutrition.Org Expansion of Menu Choices Creates slotting issues at distributor Can dramatically effect bid volume by SKU Makes forecasting and budgeting very difficult

5. SchoolNutrition.Org Solutions? Make bid volume realistic Update volume projections often Look for total value Link commercial and commodity where possible Communicate changes early and often Be accountable

6. SchoolNutrition.Org Wellness & Legislation For Manufacturers Multiple nutrition targets create confusion Manufacturers slow the rate of R&D OR Pass on the added cost of short runs SKUs are subject to volume fluctuation creating supply chain inefficiency Not sure what position to take

7. SchoolNutrition.Org Wellness & Legislation For Schools May limit choices Applied incorrectly to reimbursable Limits former revenue sources Confusion about what meets standards

8. SchoolNutrition.Org Solutions? Take positive steps toward education The education channel speaks with one voice (supply chain focus group) Third party groups provide guidance

9. SchoolNutrition.Org The Whole Grains Council has created an official packaging symbol called the Whole Grain StampWhole Grain Stamp that helps consumers find real whole grain products. The Stamp started to appear on store shelves in mid-2005 and is becoming more widespread every day. Identifying Whole Grain Products

10. SchoolNutrition.Org How Much Whole Grain is Recommended? 2005 Dietary Guidelines  Recommends that all adults eat half their grains as whole grains – that's 3 to 5 servings of whole grains. American Heart Association Department of Health and Human Services Healthy People 2010  Recommend at least three servings of whole grains per day. Yet the average American eats less than one daily serving of whole grains, and over 30% of Americans never eat whole grains at all.

11. SchoolNutrition.Org QUALIFYING PRODUCTS Basic Stamp must contain at least 8g of whole grain ingredients per labeled serving and per RACC. At least 51% of the grains in the product must be whole grains. 100% Stamp must contain at least 16g of whole grain ingredients per labeled serving and per RACC. 100% of the grains in the product must be whole grains. As this rules out any addition of grain-based starchy release agents or thickeners, vital wheat gluten, bran toppings, etc. that are not 100% whole grain, it is expected that few if any FSIS products will qualify for the 100% Whole Grain Stamp.

12. SchoolNutrition.Org Healthy Choice Cinnamon Bakes contain 16g “One Full Serving of Whole Grain”

13. SchoolNutrition.Org Oprah Endorses the Stamp “…If you still aren't sure which of your favorite foods are really made with whole grains, look soon for these stamps on products. They're going to help take out the guesswork.” Oprah Winfrey, May 3, 2005

14. SchoolNutrition.Org Hurdles To Making The Numbers Work Supplier Perspective