1. Clif Bar & Company: A Transformative Approach To Improving Food System Sustainability Elysa Hammond Director of Environmental Stewardship September 16, 2010

2. A natural food company since 1992
Organic since 2003
Family and
employee-owned
Emeryville, California
250 employees
>$200 million in sales/year
Organic ingredients in all products
6 of 7 brands are certified organic
40 million lbs organic/year (70%)
Clif Bar has demonstrated strong growth even in a down economy. Our 10-year compounded annual growth rate in the double-digits. Going very strong in a down economy.
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

3. Conversation matters. Organic was the catalyst.
1978 Conversations start about sustainable food and organic farming
1992 Gary Erickson starts CLIF BAR
2000 CLIF BAR stays private
2001 Sustainability program begins*
2003 First certified organic product
*Clif Bar didn’t start out as green company.
If we can do this, anyone can.
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

4. Systems thinking: Energy Matters
U.S. Food System Energy Use
20% on farm energy use
40% packaging and processing
40% transport , storage, preparation
Carbon is a leading sustainability metric in our program
17% of energy use in U.S. economy is related to the food system

5. You can’t see what you can’t imagine
Our environmental sustainability vision
Our products will be:
Made with sustainable, organic ingredients;
Baked with clean, renewable energy;
Packaged in environmentally friendly packaging;
Delivered by transportation that doesn't pollute.
Our company will:
Help create a more healthy, just and sustainable food system;
Support a vibrant, healthy, green workplace;
Generate profits that help people and the planet;
Learn from and share with others

6. Our Sustainability Model: Five Aspirations
Our Five Aspirations reflect the report’s 4 sustainability goals
This sustainability model has transformed the company. We are making progress toward all goals.
Economic growth, brand integrity, creating new green jobs, driving demand for organic farming and giving back to communities.
Sustaining our business; employee owned since 2010;
Owners committed to long term sustainable growth. Launched a separate new business, an organic farm and winery in 2004.
Sustaining our Brands: commitment to product integrity. Highest quality ingredients; connecting with consumers face-to-face through grassroots cause-related efforts e.g. LunaChix, 2MC, Lunafest 10 years; no advertising.
Sustaining our Community: To be a good citizen and neighbor; give back to our communities and home and abroad; Community service on company time from ,000+ hours donated with a 2009 participation rate 96%; In 2009 Clif Bar and the Foundation together donated over $3 million in product and cash to organizations in need.
Sustaining our people: to live life to the fullest at home and work; help employees learn and grow. Outstanding benefits ESOP gym, Cool Commute; childcare;
Nationally acclaimed workplace including best workplace for women;
Sustaining our Planet:
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

7. Examples of progress in brand, people and community aspirations
Pure Prevention Campaign with the Breast Cancer Fund
LunaFest women’s film festival
Sponsorship of events, athletes, eco-programs
People
Nationally acclaimed workplace
Cool Commute & Cool Home,
on-site gym & classes, childcare,
ESOP, dogs in the office
Community
Clif Bar Family Foundation –$2MM /year
Community service on company time
Planet
New LEED certified office, solar roof with organic restaurant;
climate neutral with offsets; biodiesel fleet; recycled packaging
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

8. Environmental Stewardship- 4 areas of focus
Organic, sustainable
food and farming
value-based
supply chain;
traceability & farmer connections;
Organic seed
Zero Waste recycled/recyclable packaging
Climate action
reduced carbon footprint
efficient shipping
renewable energy
Conserve and restore
natural resources
In including biodiversity
We’ve set 5 year goals for each of these focus areas.
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

9. Organic farming generates multiple benefits: healthier food, cleaner water, safer farming, carbon storage
- 2 million lbs organic
million lbs (70%)
Organic farming helps
deliver on all of our environmental goals
Supporting organic, regenerative
agriculture is the cornerstone of our
sustainability efforts
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

10. 2004 Planning - Clif Tactics - Sales Team Presentation.ppt

11. Keeping up the momentum
We’re increasing support of organic farming by
steadily increasing purchases;
procurement goals and guidelines;
nonprofit partnerships, in-house education and connecting with growers, and support for the Seed Matters initiative
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

12. What’s working? What’s driving transformation?
1. Consumer-driven demand for organic and natural products*. ( The USDA organic standards are working..)
“Our company has experienced explosive growth over the past few years, significantly outpacing both the food industry and the categories in which we compete….  The vast majority of our retailers are looking for healthier alternatives to display across their stores.  This is a direct response to consumers demand. “ Rick Collins, VP of Sales, CLIF
Business interest in Sustainability is further driving demand for sustainable products.
Partnerships and educational efforts that inform, inspire and facilitate progress.
*New report on the 50 Fastest Growing Grocery Chains in the U.S. – 3 of top 10 are organic/ natural. Others attribute growth to demand for organic and natural.
Our company has experienced explosive growth over the past few years, significantly outpacing both the food industry and the categories in which we compete.  We attribute much of our success to offering great tasting healthy natural and organic foods.  The vast majority of our retailers are looking for healthier alternatives to display across their stores.  This is a direct response to consumers demand.  People are looking for healthy natural and organic products that do not contain the “bad stuff” – artificial colors, preservatives, pesticides, herbicides, high fructose corn syrup and fertilizers to name a few.  This growing consumer demand for natural and organic products is also evidenced by a recent report on the fastest growing supermarket chains over the past five years.  3 of the top 10 spots are occupied by Natural and Organic supermarkets – Sprouts, Sunflower and Whole Foods.  Most of the supermarket chains in the top 10 identify Natural and Organic foods as the catalyst for their tremendous growth.”   2

13. What are the barriers? Lack of protection from GMO contamination.
Lack of supply of organic raw and processed ingredients ingredients; 60 different crops
Lack of information and transparency about price, and availability of organic ingredients.
How can we purchase transitional?
Lack of information for consumers about how their food is grown.
Lack of public seed breeding programs for organic systems, and participatory seed research that includes farmers in seed stewardship.
Lack of organic food systems research.
2004 Planning - Clif Tactics - Sales Team Presentation.ppt

14. Food companies form the bridge
Food businesses connect farmers with consumers, and people’s health with the planet’s health. v
Transformational food businesses (there are many) can help drive significant progress toward sustainable agricultural systems in the 21st century.
2004 Planning - Clif Tactics - Sales Team Presentation.ppt