Agrilink Foods
UWCC Las Vegas 10/29/01
New-Age Cooperative
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New-Age Cooperative
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Raw Product Plan
Crop Valuation
Outside Directors
Liquidity for Owners
UWCC Las Vegas 10/29/01
Public Company
Quantity of
Raw Product
Purchased
 Volumes equated to
sales plan
 Inventory
mgmt./control
 Cash flow mentality
Purchase Price  Market driven
of Raw Product
Purchased
 Some companies
high priced
 Some companies
low priced
 Annual contracts
Traditional
Cooperative
Agrilink/Pro-Fac
Cooperative
 Take all production
volumes without
restrictions
 Volumes equated to
sales plan
 Lacks structure,
poorly defined,
grower pressure for
higher price
 Average market
valuation of competitor
prices
 Inventory
mgmt./control
 Cash flow mentality
 Independent Board
member approval
required
 Board committee level
review
UWCC Las Vegas 10/29/01
Public Company
Payment Terms  Net 30-60 days
Traditional
Cooperative
Agrilink/Pro-Fac
Cooperative
 Delayed payment
structure varies widely
 Delayed payment terms
 50%-30; 25%-120,
Balance July15
following year, if
company makes money
Governance
Owner returns
 Management and
outside directors
 Close affiliation
with Chairman/CEO
 Producer directors
elected by members
 Earnings driven
 Dividends
 Earnings driven
 No liquidity or limited
liquidity
 Stock appreciation
 Liquid
 Producer directors
elected by members
 4 outside directors
 CEO
 Democratic process
 Earnings driven
 Dividends
 Liquid
UWCC Las Vegas 10/29/01
Communication at Agrilink
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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 ...
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Motivated customers and consumers
Inspired employees giving their best
Owners & employees working together in a
shared goals
Respect for meeting stakeholders’ needs
respect toward the
company
fair, ethical manner to meet
with mutual trust and
UWCC Las Vegas 10/29/01
Vision for the Future . . .
Agrilink redefines the word:
Commodity
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
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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
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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
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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
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Fewer grocery stores, but more outlets where some groceries can be
purchased.
Retailers are looking to collaborate with manufacturers and will reward
manufacturers who:
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Have leading brands
Are efficient suppliers
Demonstrate management expertise
Help them grow
UWCC Las Vegas 10/29/01
Innovation is the answer
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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
:
Agrilink Foods
Frozen Vegetable
Processing Facilities
Darien & Fairwater, WI
Woodburn, OR
Corn; Cut & Cob, Peas,
Green Beans,
Corn: Cut & Cob, Peas,
Green Beans, Blends,
Value Added items
Brockport, Barker,
Bergen, Oakfield, NY
Corn; Cut & Cob, Peas,
Green Beans,
Fulton, NY
Arlington, MN
Coated Pasta Products
Watsonville, CABroccoli, Spinach,
Limas, Brussels Sprouts
Meal Starters &
Box Sauce Line
Bridgeville, DE
Oxnard, CA
Peas, Limas, Beans, Spinach
Montezuma, GA
Uvalde, TX
Alamo, TX
Spinach, Southern Greens,
Okra, Southern Peas
Southern Greens,
Okra, Southern Peas,
Onions, Breaded Products
Potatoes, Broccoli, Okra,
Southern Greens, Southern Peas,
Peppers, Onions
Celaya, Mexico
Cauliflower & Broccoli
UWCC Las Vegas 10/29/01
Agrilink & National Frozen
Vegetable Supply
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
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*includes exports
National Supply
UWCC Las Vegas 10/29/01
Strategic Thrusts
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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
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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.
UWCC Las Vegas 10/29/01
Strategic Thrusts
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Pursuit of Profitable Growth
– means we will seek to build our business by pursuing profit-building opportunities
through new distribution, new geographies and new product development.
UWCC Las Vegas 10/29/01