1. Retail Store Donation Programs TFBN Food Resource, Operations & Agency Relations Conference Austin, TX - April 2014

2. PARTNER LOGO 2 Today’s Agenda The Landscape Retail Partnerships Dashboard Metrics HEB: Survey Snapshot Open Discussion

3. The Landscape

4. PARTNER LOGO 4 Channel Trending Meals by Channel New Frontiers SNAP Purchased Fresh Produce Retail Manufacturing Federal Commodities Channel Meals (MM) 3.2 Billion 3.6 Billion* * Feeding America is currently revising our 2018 meal goals

5. PARTNER LOGO 5 Sourcing Costs 3.2 Billion Meals Sourced in 2013 Food Source Federal Commodities* Manufacturing Produce Retail Purchasing Cost Per Meal $0 $0.04 $0.17 $0.24 $0.73 % of FA Food Stream 21% 23% 15% 27% 14% Cost per meal is the dollar equivalent of resource needed to source and distribute food *Rapid reduction in availability % Trend

6. PARTNER LOGO 6 Retail SDP Positioning Our goal is to be a partner that creates a win-win opportunity Incremental financial benefit from donating rather than dumping product Reduction in waste disposal costs Increased employee satisfaction from throwing less product away Enhanced brand value through association with donation program Helps achieve sustainability commitments MM LBS 28% CAGR FROM FY’08 - FY’13 Store Donation Program has grown to reach over 1B lbs. of edible, unmarketable product… …largely because it provides a variety of benefits to the donors.

7. PARTNER LOGO 7 Retail SDP Product Mix *2013 retail receipts from 105 food banks

8. PARTNER LOGO 8 Retail Environmental Changes

9. PARTNER LOGO 9 Retail Partnering Realities Retailers are becoming more demanding in their partnering expectations, looking to us as a “business”, and as vendors Retailers are looking for holistic relationships that provide the best value to their businesses Retailers are concentrating more waste control and community impact, than financial tax incentives Retailers are looking for unique models and products to capture additional consumer market share (focused ethnicity, wider selection, higher standards, non-traditional, etc.)

10. PARTNER LOGO 10 Retail SDP Additional Points Reporting is Critical –Corporate Retail is pushing for more, better metrics. –Consistency is needed for good analysis. –Agency partners need to be held accountable. Agency Partnerships Continue to Grow –Estimated at 30% of all relationships. Higher yield assumptions. –FBs need to be diligent in monitoring and oversight. –Impact on larger relationships can be critical. Strategic Review of Pickup Frequency is Needed –Assumption is that more pickups yield more pounds… to a point. –More frequency may not be needed for all stores. –Ask pressing questions- get deep in the review, get strategic.

11. Retail Partnerships

12. PARTNER LOGO 12 Nationally Coordinated Retail SDPs Walmart (Walmart/Sam’s Club) Kroger Delhaize Albertsons Target Supervalu Publix Winn Dixie Safeway BJ's Warehouse C&S Grocery UNFI Big Lots Walgreens CVS Costco SaveMart Brookshire’s Grocery A&P Sprouts Top 5 donors represent 82% of all retail donation volume in 2013 14,000 Stores participating nationally (includes national, regional and local partners)

13. PARTNER LOGO 13 Retail Partnerships (cont.)  Walmart- Updated playbook, rotisserie authorized, dry volume increasing.  Sam’s Club- Possibility of renewed discussions on additional categories.  Kroger- Produce continues to be rolled out slowly by market with varying results. Formal re-launch efforts slowed due to corporate travel cuts. Joe Maggard (Shrink) is corporate contact.  Albertson’s/ Safeway- Both companies are still separate- still should be treated as competitors. Some encouraging work within some Albertson’s divisions, pilot discussions are continuing with Safeway and a CA food bank.  Target- Installation of new scanning program coming this year- should increase donations through less confusion at decision point. Working on program re-launch (tentative June/July) with emphasis on Target personnel visiting FBs for refresher and education.

14. PARTNER LOGO 14 Retail Partnerships (cont.)  Supervalu (SAL)- Past Corporate contact is back, and renewed discussions around expansion of store program to Corporate SAL stores.  UNFI- Distributor for Whole Foods- Conducted recent food drive in stores covering TX, OK, LA, AR. Affected food banks will hear from UNFI to coordinate pickup of resulting allocated Whole Food product donations.  Big Lots- New Corporate contact, seems receptive, trying to schedule meeting.  Walgreens- DC and RC only, recent T2T call on partnership expansion. Network still struggles to move non-food.  CVS- For those with DCs or RCs, recommend on-site visits and opportunistic discussion. Network still struggles to move non-food.

15. PARTNER LOGO 15 Retail Partnerships (cont.)  Costco- Same, no change.  Brookshire’s Grocery- Same, no change. Need your TX help!  Sprouts- Gradual growth, with additional store focus in existing TX markets, i.e. new markets like El Paso. A good partner.  Future  Aldi- Initial discussions, FB feedback survey, Corporate to pilot in MI.  Family Dollar- Requested meeting this month with FA.  Fresh Market- NIFB is working to find right operational contact to engage. Local host FB had no contacts.

16. Dashboard Metrics

17. PARTNER LOGO 17 Dashboard Metrics Hungernet Network Activity Data Center Weblink: https://www.hungernet.org/planning/data/Pages/foodretail.aspx https://www.hungernet.org/planning/data/Pages/foodretail.aspx

18. PARTNER LOGO 18 Dashboard Metrics (cont.) By EPG EPGChange % Blueberry20.4% Papaya23.8% Pineapple30.4% Tangerine18.7% Apple23.3% Lime21.4% Peach19.4% Cherry17.0% Orange22.8% Strawberry42.3% Grape25.4% Banana24.3% Pear15.9% Mango14.2% Watermelon13.6% Apricot5.4% By Food Bank Food BankChange % Capital Area Food Bank of Texas40.6% East Texas Food Bank35.8% Food Bank of Corpus Christi4.1% Food Bank of the Golden Crescent34.8% Food Bank of the RGV47.8% Food Bank of West Central Texas38.1% High Plains Food Bank15.2% North Texas Food Bank21.0% San Antonio Food Bank-2.7% South Plains Food Bank3.8% South Texas Food Bank49.0% Southeast Texas Food Bank-25.1% Tarrant Area Food Bank17.1% The Houston Food Bank-9.9% West Texas Food Bank56.2% Wichita Falls Area Food Bank8.5% By Retail Donor RetailerChange % Big Lots51.5% Brookshire's Grocry4.6% Costco32.4% CVS(17.3%) Kroger5.7% Safeway2.8% Sam's Club24.6% SproutsN/A Supervalu26.4% Target9.8% UNFI36.4% Walgreen's3.3% Walmart26.2% Current vs. Prior Rolling 12-month Period Total CurrentTotal PriorDifferenceChange % Network 918,657,098 755,868,105 162,788,993 21.5% Texas 67,368,858 58,620,895 8,747,963 14.9% Change % Average SDPC Grantee Growth 32.4% Average Non- SDPC Grantee Growth 25.6% Through 1/31/14, by PU Date

19. HEB: Survey Snapshot

20. PARTNER LOGO 20 HEB: Survey Snapshot October 2013: 15 FB responses (including 2 FBs w/ no stores) Who is your main point of contact at store level? –7 FBs indicated all personnel at store level –Other FBs noted only 1 personal contact –1 FB indicated Eddie How many stores do you pick up from? –All FBs are picking up at some stores –7 food banks indicate awareness of affiliated agencies picking up –4 food banks indicate awareness of non-affiliated agency relationships picking up What is the frequency of pickups at HEB? –A wide variation in pick up frequencies (1 to 5 days) –7 FBs indicated they pick up 5+ days weekly at some, or all of stores –4 FBs pick up 2-3 days weekly –2 FBs pick up only 1 day a week –1 FB mentioned the pick up of bread only, 7 days a week

21. PARTNER LOGO 21 HEB: Survey Snapshot (cont.) What HEB product categories are being received? How satisfied are you with the HEB store donation program? –6 FBs are very satisfied with the overall store program –7 FBs are somewhat satisfied with the overall store program What are the top opportunities that would help to better the store donation program? –Additional product authorization –Agency partner authorization for pickups –Corporate partnership endorsement and push support –Better communication and training Thoughts? MeatDeliBakeryDairyProduceFrozenDry 16.4%0.2%67.7%1.2%3.4%3.3%7.9%

22. Open Discussion

23. Kurt Welz Retail Product Sourcing Manager Feeding America THANK YOU!