1. 1 Impact of Non-Uniform Nutrition Standards Industry Perspective Barbara Jirka, PhD, SNS March 5, 2007

2. 2 The “State” of Wellness Policies What does the research literature indicate? SNA’s Research Study: A Foundation for the Future SNA’s Research Study: A Foundation for the Future Top 100 School Districts-by enrollment (23% of US students) 93% have passed Local School Nutrition Policy that address nutrition standards for food & beverages 98.9% address school meal nutrition standards SNA’s Research Study: A Foundation for the Future II SNA’s Research Study: A Foundation for the Future II random sample of 140 school districts in seven US regions These districts account for 3.5% of the nation’s K-12 students 98.6% address school meal nutrition standards 88.6% address nutrition standards for a la carte foods and beverages What does the research literature indicate? SNA’s Research Study: A Foundation for the Future SNA’s Research Study: A Foundation for the Future Top 100 School Districts-by enrollment (23% of US students) 93% have passed Local School Nutrition Policy that address nutrition standards for food & beverages 98.9% address school meal nutrition standards SNA’s Research Study: A Foundation for the Future II SNA’s Research Study: A Foundation for the Future II random sample of 140 school districts in seven US regions These districts account for 3.5% of the nation’s K-12 students 98.6% address school meal nutrition standards 88.6% address nutrition standards for a la carte foods and beverages

3. 3 New Product Development Labor resources-R&D, Marketing, Supplier, Plant, School FS director, Kids Research ingredient suppliers for new ingredients Research ingredient suppliers for new ingredients Are they company approved supplier? Does cost meet company approved guidelines? Does ingredient work with plant equipment? Is an acceptable product available from a supplier? Healthier for you new ingredients cost more  0 grams trans fat oil, reduced sodium flavorings, fat replacer Develop sample product in pilot plant Develop sample product in pilot plant Run nutrition analysis Run nutrition analysis Prepare & Cut product Prepare & Cut product Go back to supplier to reformulate or find new ingredient supplier Go back to supplier to reformulate or find new ingredient supplier Pilot plant 5-6 tests in pilot plant before testing in full production plant Pilot plant 5-6 tests in pilot plant before testing in full production plant Full Plant Run Full Plant Run Kid Tested, Kid Approved TM testing Kid Tested, Kid Approved TM testing Develop packaging & marketing materials Develop packaging & marketing materials Train Sales & Broker staff Train Sales & Broker staff Labor resources-R&D, Marketing, Supplier, Plant, School FS director, Kids Research ingredient suppliers for new ingredients Research ingredient suppliers for new ingredients Are they company approved supplier? Does cost meet company approved guidelines? Does ingredient work with plant equipment? Is an acceptable product available from a supplier? Healthier for you new ingredients cost more  0 grams trans fat oil, reduced sodium flavorings, fat replacer Develop sample product in pilot plant Develop sample product in pilot plant Run nutrition analysis Run nutrition analysis Prepare & Cut product Prepare & Cut product Go back to supplier to reformulate or find new ingredient supplier Go back to supplier to reformulate or find new ingredient supplier Pilot plant 5-6 tests in pilot plant before testing in full production plant Pilot plant 5-6 tests in pilot plant before testing in full production plant Full Plant Run Full Plant Run Kid Tested, Kid Approved TM testing Kid Tested, Kid Approved TM testing Develop packaging & marketing materials Develop packaging & marketing materials Train Sales & Broker staff Train Sales & Broker staff

4. 4 Product Concerns Flavor Flavor Texture Texture Color Color Cook & holding time Cook & holding time Product Quality Overall Product Quality Overall Prep -equipment Prep -equipment Packaging –convenient, price Packaging –convenient, price Commodity &/or commercial availability Commodity &/or commercial availability Distribution Distribution Flavor Flavor Texture Texture Color Color Cook & holding time Cook & holding time Product Quality Overall Product Quality Overall Prep -equipment Prep -equipment Packaging –convenient, price Packaging –convenient, price Commodity &/or commercial availability Commodity &/or commercial availability Distribution Distribution

5. 5 Commodities Commodity improvements Commodity improvements Which items should be modified? Will manufactures develop a new product that fits a modified “healthier” version to meet specifications of USDA commodity first contract bids? Will manufactures bid –at a price schools can afford? Will students eat it? Commodity improvements Commodity improvements Which items should be modified? Will manufactures develop a new product that fits a modified “healthier” version to meet specifications of USDA commodity first contract bids? Will manufactures bid –at a price schools can afford? Will students eat it?

6. 6 Committed to Customers Tyson Foods promise to our business partners, customers, and consumers to remain the protein leader through innovation and leadership New Discovery Center 19 test kitchens19 test kitchens Consumer research facility-sensoryConsumer research facility-sensory USDA inspected Pilot PlantUSDA inspected Pilot Plant Staff experts-Staff experts- 50 hold advanced degrees,50 hold advanced degrees, 12 PhD’s, 2 RD’s,12 PhD’s, 2 RD’s, 5 RCA Certified Chefs5 RCA Certified Chefs Culinologists, TechnologistsCulinologists, Technologists

7. 7 Conclusion Lack of non-uniform nutrition standards is costly Lack of non-uniform nutrition standards is costly R&D time Ingredient cost Availability of acceptable ingredients Be cautious of setting too rigid standards Be cautious of setting too rigid standards Less variety available Fewer manufacturers may sell to schools Students make final decision through participation. Will it pass the Kid Tested Kid Approved TM test? Students make final decision through participation. Will it pass the Kid Tested Kid Approved TM test? participation may decline Lack of non-uniform nutrition standards is costly Lack of non-uniform nutrition standards is costly R&D time Ingredient cost Availability of acceptable ingredients Be cautious of setting too rigid standards Be cautious of setting too rigid standards Less variety available Fewer manufacturers may sell to schools Students make final decision through participation. Will it pass the Kid Tested Kid Approved TM test? Students make final decision through participation. Will it pass the Kid Tested Kid Approved TM test? participation may decline