UWCC Las Vegas 10/29/01
New-Age Cooperative
• New-Age Cooperative– Raw Product Plan
– Crop Valuation
– Outside Directors
– Liquidity for Owners
UWCC Las Vegas 10/29/01
Traditional Agrilink/Pro-FacPublic Company Cooperative Cooperative
Quantity ofRaw ProductPurchased
Volumes equated tosales plan
Take all productionvolumes withoutrestrictions
Volumes equated tosales plan
Inventorymgmt./control
Inventorymgmt./control
Cash flow mentality Cash flow mentality
Purchase Priceof Raw ProductPurchased
Market driven Lacks structure, poorly defined, grower pressure for higher price
Average marketvaluation of competitorprices
Some companieshigh priced
Independent Boardmember approvalrequired
Some companieslow priced
Board committee levelreview
Annual contracts
UWCC Las Vegas 10/29/01
Traditional Agrilink/Pro-FacPublic Company Cooperative Cooperative
Payment Terms Net 30-60 days Delayed paymentstructure varies widely
Delayed payment terms
50%-30; 25%-120, Balance July15 following year, if company makes money
Governance Management andoutside directors
Producer directorselected by members
Producer directorselected by members
Close affiliationwith Chairman/CEO
4 outside directors
CEO Democratic process
Owner returns Earnings driven Earnings driven Earnings driven Dividends No liquidity or limited
liquidity
Dividends
Stock appreciation Liquid Liquid
UWCC Las Vegas 10/29/01
Communication at Agrilink
• Always striving to communicate for understanding. “Why we do what we do.”
• It will “pave the path” to our Vision.
• We are absolutely committed to relentless improvement in the way we share and receive information.
UWCC Las Vegas 10/29/01
Our Mission
To be widely recognized for leadership and accomplishment as a food processing and marketing cooperative by using all our members’ and
employees’ talents.
UWCC Las Vegas 10/29/01
Our Core Values
• Do what is right
• Excellence in performance
• Commitment to objectives
• Teamwork
UWCC Las Vegas 10/29/01
Fortune 500: What it takes ...
• Motivated customers and consumers
• Inspired employees giving their best
• Owners & employees working together in a fair, ethical manner to meet shared goals
• Respect for meeting stakeholders’ needs with mutual trust and respect toward the company
UWCC Las Vegas 10/29/01
Agrilink Strategic Direction
All significant initiatives and activities are evaluated to be consistent with these objectives:
•Consumer trends … adapt to changes in the marketplace
•Financial viability …self sustaining
•Focus … one business
•Member preferences
UWCC Las Vegas 10/29/01
Strategic Direction
• Member Preference
– Healthy Capital Structure
– Grow & maintain grower deliveries
– Return above CMV
UWCC Las Vegas 10/29/01
Strategic Direction
• Consumer Trends
– Adapting to changes in the marketplace
UWCC Las Vegas 10/29/01
The Changing Consumer
• Older consumers will drive demand for health and nutrition.
• Younger consumers are “smarter” about diet and nutrition.
• 70% of U.S. consumers believe organics are better for their health.
• Consumers are buying foods with a health message.
UWCC Las Vegas 10/29/01
The Changing Consumer
• Within 20 years, 45% of children under 19 will be of a diverse ethnic background.
• 10 years ago, shoppers averaged 40 minutes in a grocery store… today it is 18 minutes.
UWCC Las Vegas 10/29/01
New Consumer Habits
• Meals are assembled rather than cooked
• Dining can take place anywhere
• We have become a “snacking” culture …eating 6X a day
• When meals eaten at home, family members eat different items at different times
• More food dollars going to restaurants
UWCC Las Vegas 10/29/01
The Changing Industry
• Fewer grocery stores, but more outlets where some groceries can be purchased.
• Retailers are looking to collaborate with manufacturers and will reward manufacturers who:
– Have leading brands
– Are efficient suppliers
– Demonstrate management expertise
– Help them grow
UWCC Las Vegas 10/29/01
Innovation is the answer
• Innovation will come from quickly changing technology
• Innovation that provides products when, where and how consumer want them
• Innovation that provides service to customers that sets us apart
• Innovation that creates value for customers, consumers and owners
UWCC Las Vegas 10/29/01
Watsonville, CA-
Broccoli, Spinach, Limas, Brussels Sprouts
Corn: Cut & Cob, Peas, Green Beans, Blends,Value Added items
Celaya, Mexico
Oxnard, CA
Cauliflower & Broccoli
Alamo, TX
Potatoes, Broccoli, Okra,Southern Greens, Southern Peas,Peppers, Onions
Uvalde, TX
Spinach, Southern Greens,Okra, Southern Peas
Montezuma, GA
Southern Greens,Okra, Southern Peas,Onions, Breaded Products
Bridgeville, DE
Peas, Limas, Beans, Spinach
Arlington, MN
Coated Pasta Products
Darien & Fairwater, WI
Corn; Cut & Cob, Peas,Green Beans,
Brockport, Barker,Bergen, Oakfield, NY
Corn; Cut & Cob, Peas,Green Beans,
Fulton, NY
Meal Starters &Box Sauce Line
:
Agrilink FoodsAgrilink Foods Frozen VegetableFrozen Vegetable
Processing FacilitiesProcessing Facilities
Woodburn, OR
UWCC Las Vegas 10/29/01
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Agrilink Pack National Supply
Agrilink & National Frozen Agrilink & National Frozen Vegetable SupplyVegetable Supply
*includes exports
UWCC Las Vegas 10/29/01
Strategic Thrusts
• Low Cost Operator– means that Agrilink will be the lowest cost provider of products and services that
meet our customers’ and consumers’ needs through a program of relentless improvement, investment in innovation and development of supplier partnerships .
UWCC Las Vegas 10/29/01
Strategic Thrusts
• Total Customer Service– means that Agrilink will listen carefully and respond effectively to our
customers’ needs; anticipating their future requirements while building close relationships in an environment characterized by trust, flexibility and reliability. This philosophy also applies to our team members (internal customers). As a team, we will treat each other with the same consideration, concern and respect as we do the people who purchase our products.
UWCC Las Vegas 10/29/01
Strategic Thrusts
• Totally Effective Workforce– means a workforce that is well-trained and operating as one highly effective team.
Everyone in the organization is focused on customers and consumers. Everyone is driven to achieve personal, group and organizational goals. All of our employees act with an empowered, entrepreneurial attitude as they actively participate in the business process.
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