Reichel Foods 20092010 Program Biography Reichel Foods Inc

Reichel Foods 2009/2010 Program

Biography • Reichel Foods, Inc. – Established in 1997 – Sells Dippin’ Stix in North America – Employ 150 people in Rochester, Minnesota

Overview • Reichel Foods, Inc. is a leading fresh cut produce processor committed to: – Quality – Food Safety – SQF 2000 Certified – Customer service • For over 12 years, the company has been a snacking category leader providing top quality, value-added, fresh-cut healthy snacks.

Products • Dippin’ Stix products are best known for extended shelf life accomplished through: – Unique sustainable packaging – Strict quality standards – Technology – Innovation • Our most popular products: – Apples & Caramel Dip – Carrots & Ranch Dip • Must be kept refrigerated

Customer Service • Reichel Foods provides exceptional customer service designed to deliver satisfaction with every customer contact. • Although our products are exempt from COOL (Country of Origin Labeling) regulations, we’ve been proactive in labeling our products to aid our customers and consumers.

The American Diet • According to studies done by the Centers for Disease Control “the American diet is not in balance. ” Americans are not eating enough fruits and vegetables. • To combat this the CDC has launched a massive media campaign in partnership with the USDA’s Food Pyramid to get people consuming the right foods in the right quantities. • Studies show that 63% of all consumers are actively trying to replace high calorie snacks with Healthier options. 1 2 1 – CDC Website 2008 2 – FRESH CUT, January 2008

National Trends • Brown Bagging it for lunch is at an all time high since 2001. Adults 18 and older consumed 8. 5 billion brown bag lunches in 2007. • 12% of lunchtime opportunities are brought from home. • Snacking is forecasted to increase 18. 5% by 2018 • 21% of all meals are snacks • Fresh Cut purchases are up $5 Billion since 2001 driving the majority of the growth in the category. • 25 – 35 year olds are the heaviest demographic of fresh cut fruits and vegetables. 1 2 5 5 3 4 1 – NPD Group, Port Washington, NY 3 – FRESH CUT, January 2008 2 – Brandweek. com Sept. 2008 4 – AC Nielsen: 2007 estimated 5 – Progressive Grocer 8 -31 -09

Consumer Needs/Categories • Today’s American consumer is looking for snack foods with 5 characteristics: – – – Taste fresh and good Healthy/Nutritious Convenient/Portable Appeals to entire family Priced right • Dippin’ Stix are uniquely suited to meet all these needs. – Grab and Go section Growing category: Sliced apple sales were up 42% last year.

Single Serve Dippin’ Stix • Dippin’ Stix single serve products are the perfect convenient healthy snack alternative. • The longest shelf life in the industry for reduced shrink and increase profit in your department. • Unique eye catching packaging to draw the consumer to purchases in the produce department. • Priced right to allow 2/$3. 00 everyday and 10/$10 promotional pricing at attractive margins.

Maximize Choices 15” • Each SKU takes up only 3” of shelf space! • 15” of shelf space is all it takes to face out our core 5 flavors! • Offer your customers more choices in less space with Dippin’ Stix. Mix and Match • Each package stands upright. • Merchandising tray pack available.

Multiple Serve Dippin’ Stix Party Trays • Dippin’ Stix multiple serve products are a convenient healthy way to feed large groups. • Multiple Serve packages maintain the benefit of the longest shelf life of any like product in the category! • Perfect item for everyday distribution or in and out displays. • Ideal choice for everything from summer picnics to formal Christmas dinners.

Lead-time when sourcing Direct • PO’s are due on Friday. Product is delivered the second week following (1013 days lead-time). • Reichel Foods sells Dippin’ Stix in North America. • FOB Available in Rochester, MN

Suggested Distribution Rank 2. 75 oz Dippin’ Stix 1. Apples w/Caramel – – low fat 100 Calories 2. Carrots w/Ranch Dip 3. Apples w/Caramel & Nuts 4. Apples w/Yogurt Fruit Dip – – low fat 90 calories 5. Apples w/Peanut Butter 6. Dill Pickle w/Bacon Ranch Dip – 90 Calories 7. Carrots w/Lite Ranch – 80 Calories *Dippin’ Stix are not Kosher

What is New? • Hummus – Available Fall 2009 – Single Serve – Party Trays

Our Advantage • The Dippin’ Stix Advantage: – – Longest shelf life: Dippin’ Stix offer the longest shelf life in the industry therefore reducing shrink and generating more profit than any other competitor. Price Point: • • – – Everyday pricing is around 2/$3. 00, very impulsive and a value price point. 50% of decisions are made at point of purchase. Able to promote at 10/$10 and still make good margins. Reichel Foods is SQF 2000 certified and our plant is inspected by the USDA and the FDA Sustainable packaging – only two pieces of packaging material • • 50% of purchasing decisions are made at the point of purchase 44% of respondents identified excessive packaging as a major concern

Next Steps • Evaluate which products make sense for your locations: – – • • 7 Single Serve choices 4 New Single Serve choices 3 Party Tray choices 2 - 4 lb. Apple choices Set up items in system and develop planogram Execute in-store distribution Determine merchandising plan Grow Produce Category Sales!