1. Food Donation Trends Agency Conference Capital Area Food Bank of Texas May 1, 2015

2. What is Happening? Why is it getting harder to procure donated product? Why are we not seeing the types of products we used to? 2

3. Food Donations 3 Dry, Shelf Stable Frozen, Refrigerated Private Label Damaged Short-dated Discontinued Seasonal/ Promo Package Changes Reformulations Overruns Mislabeled / Brites Low Weight / Short Fill Excess Ingredients Bulk Product Opportunities We Are All Familiar With:

4. Industry Trending 4 Reclamation Unsaleables- Dry Grocery Source: Retail Sample Group - 2008 Trend Data Average Estimate = 7% Decrease Per Year

5. Marketplace Trending 5

6. Manufacturer Trending Feeding America’s Top 10 Manufacturer Donors Dry and Shelf Stable Donations from many Donors are Declining Manufacturer Donor% Change Pepsico-29.9% ConAgra6.6% Kellogg-13.3% General Mills-7.4% Kraft-14.4% Bimbo Bakeries52.0% Nestle-30.5% Campbell’s-5.3% Mondelez31.4% Dean Foods11.2% FY14 / FY15 YOY % Change, as of 3/03/15 6

7. Product Trending 2.12 Billion Pounds3.97 Billion Pounds 7 Feeding America’s Product Mix is Changing

8. Cost Trending Based on 3.3 Billion Meals Sourced in 2014. Cost per meal is the dollar equivalent of resources needed to source and distribute food Food Source Meal Cost % of FA Food Trend Federal Commodity $0 17% Produce $0.1715% Retail $0.24 31% Purchasing $0.7314% Manufacturing $0.0423% Source: Stream Report (Network Analytics) Cost per Meal is Becoming More Expensive 8

9. Cause & Effect Cause Factors (Donors) – Changing consumer patterns – Enhanced technology and supply chain efficiencies – Profit pressure to generate revenue via secondary market – Less advantageous or minimal tax benefits – More concern for food safety and recalls Effect Factors (Food Banks) – Less canned, dry, shelf stable products – Shift to more perishables, prepared products – Increased sensitivity around product movement – Higher operating costs – More concern for food safety and recalls 9

10. Donor Realities Looking for unique models and products to capture increased consumer market share Concentrating on cost savings, waste control, community and environmental impact Desire partner relationships that provide best value for business model Increased demands and expectations of its business partners Very concerned for food safety and product recalls 10

11. Partner Realities Changes are Forcing All of Us to Adapt! A need for a deeper understanding of available product mix Increasing cold storage capacity to accommodate different product types More accountability within handling, storage, distribution and reporting Expanded days / hours for additional access and distribution Education on how to utilize varied products (nutrition information, recipes, food safety, etc.) Recruitment of volunteers with focus on food safety, product handling and distribution practices 11

12. Can We Afford Not To Adapt? 12

13. Thank You! 13