1. 2001 Farmer Cooperatives Conference October 30, 2001 Meeting the Needs of Our Food Customers

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

3. 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

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

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

6. Business Units Processed Ingredients Commodity Americas Industrial Export Industrial Consumer Foods

7. Confectioners Cereal/Baking Manufacturers Processed Ingredient Customers

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

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

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

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

12. Meeting Industrial Customer Needs Quality, Service & Price Brand Loyalty

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

14. 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

15. A Can a Week That’s All We Ask