Archer Daniels Midland Company Food supply innovation and

Archer Daniels Midland Company Food supply innovation and consumer perception Zackary T. Jorck

Three Big Questions • Who is the Archer Daniels Midland Company? • How do consumers (according to my research) think food has changed over the last decade? • What is connection between the Archer Daniels Midland Company & consumer perception? 2

Who is the Archer Daniels Midland Company? A company from a humble niche in the market becomes the front-runner

FR Mission Statement “Unlock the potential of nature to improve the quality of life. ” 4

FR Overview • Second Largest Food Supplier Worldwide • Role Model of Efficiency • Innovation is a Virtue 5

ADM has over 160 subsidiaries and does business in over 170 countries globally.

FR Efficiency Vertical Integration Horizontal Integration The method through which an organization integrates different levels of production through acquisition or development. The method through which competition of a company is eliminated by acquisition into a larger parent company. Notable example: Target Notable example: Disney - Pixar 7

Innovation FR Throughout its entire lifespan ADM has maintained innovation as one of its core values. This is reflected in the pioneering of several groundbreaking products. Some of the most significant inventions are: Soy lecithin Textured Soy Protein Brominated Vegetable Oil Shortening Xanthan Gum Although ADM had invented these products, due to the nature of the food supply industry, they were not able to secure exclusive rights to manufacture or process these products. 8

FR Company History • 1902 - Founded by John W. Daniels in Minneapolis as Daniels Linseed Processing Co • 1905 - Added name of 50% shareholder George A. Archer • 1923 - Incorporation with Midland Linseed Co • 1924 – John W. Daniels succeeds presidency to son of George A. Archer, Shreve Archer • 1928 – Acquisition of William O. Goodrich Company 9

FR Company History cont. • 1949 – Entrance into edible oil market • 1960 -1968 – All time low revenue • 1968 – Diversification into other grain and corn processing • 1970 – First end of line food subsidiary founded making ADM the second largest food supply processor. • 2018 – Collaboration of the year on Field. Print Project with General Mills and Agrible 10

• Origination; any sourcing of crops • Oilseeds; everything to do with seeds • Carbohydrate Solutions; corn, wheat & rye ADM Today The Archer Daniels Midland Company today remains the world’s second largest food supply company and is organized into four operating segments: origination, oilseeds, carbohydrate solutions, and nutrition. • Nutrition; all end-of-line food products

Company Structure

FR Senior Leadership Juan Ricardo Luciano – CEO, President, Chairman of the Board Ismael Roig – Chief Strategy Officer Shannon S. Herzfield – Vice President, Benjamin I. Bard – Global Chief Compliance Officer 13

FR Senior Leadership cont. Steffano Rettore – Chief Risk Officer Kristy J. Folkwein – Chief Information Officer Patricia L. Logan – Chief Audit Officer Michael D’Ambrose – Chief Human Resources Officer 14

Stock Prices – Five Year Performance FR 15

How do consumers think food has changed over the last decade? Results of primary research into consumer perception

Known Changes in Food • Upwards of 60% of food consumed in the United States daily is classified as processed • Globalism has enhanced the choices consumers have between substitutes • Artificial and synthetic ingredients in food are at an all-time high 17

FR Consumer Survey What do consumers think of food supply? Do they think it changed in the past ten years? • Developed on surveymonkey. com • Networked through Facebook. com • Open March 18, 12: 00 PM – Closed March 21, 12: 00 PM • Five prompts with four answers each 18

Prompt # 1 FR In your opinion, the taste of food in the last decade has: • • Improved Remained the same Declined I don’t know 19

Prompt # 2 FR In your opinion, the Nutritional value of food in the last decade has: • • Improved Remained the same Declined I don’t know 20

Prompt # 3 FR In your opinion, the overall quality of food in the last decade has: • • Improved Remained the same Declined I don’t know 21

Prompt # 4 FR In your opinion, the access to many different kinds of food in the last decade has: • • Increased Remained the same Decreased I don’t know 22

Prompt # 5 FR In your opinion, the ease of preparation of food in the last decade has: • Become easier • Remained the same • Become more difficult • I don’t know 23

Response Comparison • Majority did not say food has improved in taste or nutrition • The amount of different foods on the market is higher than before • Ease of Preparation is about the same

What is the connection between the Archer Daniels Midland Company & consumer perception? The link between ADM and the primary research

FR High Market Shares • 13. 29% of oilseed processing market • 11. 39% of corn processing market • 21. 93% agricultural services market 26

Conclusion FR Due to their innovations in food processing and logistics, ADM has increased the amount of different types of food for sale to consumers as well as set the industry standard for the food processing industry to produce more synthetic and heavily processed ingredients. 27

Conclusion cont. FR This was reflected in the primary research. Although consumers from the survey did notice a larger amount of different foods accessible to them on the market, they also indicated that as a result of higher rates of processed food and synthetic ingredients the flavor and overall quality have diminished. 28

Thank You for Your Time Questions?