2008 Commissary Council Issue Oriented... Solution Driven

2008 Commissary Council Overview

2008 Commissary Council Randy Chandler Marvin Kenan David McMurty CAT Bill Mehler Shelia Linn Consumer Trends Industry Trends Innovations Outreach Ops/Systems Gordon Jones Ron Ritchie Data Accuracy System Changes System Updates Virtual Com. Cat. Mgt / Plan-o-grams Randy Chandler Randy Hardee Cat Reviews Training Standards – Templates Perishables Dave Shaw Joe Kovac Meat Produce Freeze/Chill Dairy Deli-Bakery Store Support Bob Hayden Dennis Black Vendor Stocking Execution Swell Allowance Category Resets Speed To Shelf Promotions Charlie Dowlen Pete Murphy Club Packs Displays HBC Shippers Compliance New Items Co-Chair: Paul Keating Co-Chair: Jim Herring

2008 Consumer Awareness Team (CAT) Committee Members: Industry *Sheila Linn – Campell’s Lance Batson – Hershey John Bradbury – Military Media Karen Chin – AC Neilsen Jeff Erickson – P&G Ainsley Everhart – Dunham & Smith Christine Huie-Roy – Kraft Deborah Kalas – Empower IT Sheila Linn – Campbell’s Ginesa Madar – Nestle Steve Stella – Maxi Saver Kris Stranko - ConAgra DeCA William Mehler Edna Hoogewind Jay Hudson Sallie Crauthers

2008 Consumer Awareness Team (CAT) Update Consumer Awareness Month – 77 locations participating; Cyber Zone computers Insights – Karen Chin- Bill Mehler Outreach – DeCA wants give away items for convention attendance use; CAT replacing DeCA outreach displays Marketing – 50% off Case Lot Ad DeCA recommending new channels for advertising the benefit; Selected three URL response winners Commissary Specials Base Newspaper Circular Coupon Booklets – July 2008 booklet yet to be distributed; 2009 booklets and target marketing Pentagon Channel – Grill Sergeants Cooking Show – San Diego store CAT Golf Tournament – September 8, 2008, Country Club of Petersburg

2008 Ops/Systems Committee Members: Industry Ron Ritchie – MDV/Nash Finch Tim Brown – EmpowerIT Janel Dunn – P & G Lauren Elkin – L&M Marketing Raven Farr – Highplains Marketing Mike Hatfield – S&K Jan Hellmann– Dunham & Smith Pat Johnson – Grocery Supply Company Larry Lemma – Bethel Eckert Craig Murphy – Supervalu Mark Orzolek - PepsiCo Phil Richardson – Coca-Cola Mike Skinner - Eurpac Ron Smith – Coastal Pacific Brenda Steinberg – MDV/Nash Finch Don Stickles – Bisek Laura Thompson – Kraft Rob Whitmore– Empower IT Chairman * Co-Chairman DeCA Gordon Jones Sharon Rahe* Carol Ricker* Ivey Beres Ron Freeman Darlene Gofigan Larry Hahn Tim Hoke John Madar Larry Peck Kris Ogden Valerie Robillia Corinta Russell Fred Stein Terry Sorrell Eric Swayze Shelia Walton Wayne Webb Gary Williams

2008 Ops/Systems Committee Initiatives: Data Accuracy New item presentations Promotions Plan-o-grams Global Data Synchronization Measuring Performance, reports Random Weight Items New Item Form For Distributors Automating Processes CRV – Container Deposits Plan-o-gramming Promotions Presentation Swell Allowance Program Wide Area Work Flow Virtual Commissary Systems Base Contractor Access Project (Working with Black Belt Team) Commissary Advanced Resale Transaction System – (CARTS) Computer Assisted Ordering – (CAO) Data Warehouse DeCA Enterprise Business System - (DEBS) DeCA Interim Business System - (DIBS) Radio Frequency Identification - (RFID)

Product Support Applications Current Issues/Status –Global Data Synchronization (GDS) with a Product Information Manager (PIM) Request for Proposal is in legal review prior to release –Container Redemption Value Waiting for updated IMPACT Document from ManTech Addresses impact on CRV and transfers store-to-store and items issued by CDC’s –Fort Worth Grand Opening PSA providing Training and Support on site for DIBS/DSD/DSD-S CAO will be implemented in April

Product Support Applications Current Issues/Status (Cont.) –DEBS  Still in Source Selection Met with NEXCOM to Review Their RITECH Solution Reviewed and Streamlined the Operational Values for Process Flow Documentation –CAO Awaiting for update from Mantech on Daily Forecasting –Random Weight Finalizing the requirements for standardizing random weight items.

Product Support Virtual Commissary –Focus is now on modifying VC to support Guard/Reserve Location Sales Case Level versus Unit Level Reduce DeCA labor associated with on-site sales Pre-Sold/Pre-Paid –Europe working concept for possible DeCA Fulfillment VC model Case and unit level Conventional Internet Shopping Model Open to authorized patrons

* Chairman Industry Randy Hardee*– DMI Don Goetz – Highplains Chris Lee – C.Lloyd Johnson Billy Mahanes – Nestle Bob Hybki – ConAgra Mark Orsolek – Pepsi Tim Brown – Empower IT Joe Herbst – P&G 2008 Category Management / Plan-o-gram Committee Members: DeCA Randy Chandler Steve Arland Angel Ramos Bill Wood

2008 Category Management / Plan-o-gram Committee Initiatives : Training Quantify Industry Resources Develop Generic Training Program Establish Who Attends (buyer, Cat. Mgr., Plan-o-grammers, etc.) Establish Frequency of Training Store Section/Footprint Space Reallocation Ft. Bragg North

FY 2008 Perishable Committee Members Industry Members Joe Kovac - Alder Foods Andrea Masch – US Nestle Steve Lamkin – D & S Randy Meador – Kraft Jim Herring – Morrell Julian Stovall – S & K Keith Eubank – Sara Lee Kent Blue – Webco Milt Ackerman – Elite Foods Paul Blocker – General Mills Rusty Crenshaw – OSC Sandy Ferguson – CLJ Bob Hill – Sarvis Dave Linder – Produce Group Chris Obst – Land O Lakes DeCA Members Dave Shaw Alan Flowers Jon Sanders LaRue Smith Leslie Simpson Max Goldfarb Regina Johnson Renee Mayo

FY 2008 Perishable Committee Focus Areas Elevate Perishable Promotions –Investigate increasing perishable Power Buys, Primaries, & Manager Specials and recommend the best mix for effectively increasing sales. –Seek to improve perishable promotions and categories to Patrons. Club Pack & Case Lot Promotions –will recommend perishable club pack promotional structure –Seek opportunities to increase perishable participation in case lot sales

FY 2008 Perishable Committee Focus Areas Industry Promotions/Cross Merchandising –Group will research available industry funding for promoting perishable categories and recommend how DeCA can take advantage of these industry programs. –Group will look at how we increase DeCA’s participation in industry merchandising contests to increase sales and promote these categories. –Group will also research ways to formalize cross merchandising efforts between perishable & semi perishable categories Merchandising Investments –Group will research ways for DeCA to improve the quality and quantity of perishable display cases. –Group will use financial discipline in order to qualify any possible recommendations

2008 ALA Chapter News ALA Board Member / East Chapter Representative – Tommie Draper ALA Board Member / West Chapter Representative – Craig Murphy 23 Local Chapters Work with all chapters on issues & local events Attend all POD meetings Chapter of Excellence Awards coming back – East & West Working to make Far East chapters stronger thru realignment Communicating / Updating chapters on base access E&C News running article on all Chapter Presidents Shirts being issued to all Chapter Presidents

Chairman Industry Dennis Black – Dunham & Smith Larry Roush – Masterfoods Tommie Draper – Overseas Bill Whaley – Kelloggs Tom Fehily – Commex Craig Murphy – Supervalu Harry Ledgerwood – Sara Lee Mark Carpenter – P&G Rhonda Arnold – Dunham & Smith 2008 Store Support Committee Members : DeCA Bob Hayden Edna Hoogewind Mary DeSantis Valerie Robillia Chris Burns

2008 Store Support Committee Initiatives: Vendor Stocking – Emphasize Current Policy Execution – Improved Store Support on All Merchandising Programs throughout entire Display Period. Resets – Develop Process To Set Sections Quicker & Maintain These Sets Once Reset. Swell Allowance

Chairman * CoChair Industry Pete Murphy – S&K Sales *Paul Keating – Elite Foods Billy Mahanes – Nestle Frank Glotfelty – General Mills Chris Lee – C.Lloyd Gary Duell – Commex Tim Atwood – P&G Cindy Dulik – Quaker JD Fennessy – Del Monte Joe Kimosh – ConAgra Laura Thompson - Kraft Sharon Slettebo - DMI 2008 Promotions Committee Members: DeCA Charlie Dowlen

2008 Promotions Team Initiatives: Signage Program – New look for EDLP & Extra $avings, Multiples, Colored labels  Themed multiple purchase programs  Investigating “Green” Sign savings initiative Presentation Form – Completed and New form does include a section for item selection for AK, HI, Far East & Europe. It also includes a section to identify items with bottle deposits. Industry feedback on this updated form has been very positive.  DeCA has added price module which will lock in offered price made on 40-15, if deal is accepted. This will flag if prices send EDI or Web do not match offered & accepted price Shipper/OTB Promotions – Review process to allow time for industry to provide the stores with information on the promotions before submitting quantities back to the MBU  Pursue a data-based, store-specific ordering strategy to ensure appropriate quantities  Should we go to the region for quantities or the store or the zone manager?? Promotional Strategies – Develop a plan to educate new buyers about the current promotional strategies being used by the MBU & Industry – including current, emerging categories (CFL Bulbs, Reusable Bags, Green Products & Recycled Products)  Impact of Club Pack on category  Promotional Matrix updates – there will be a 3/08 NTT for input to update Promotional Matrix & Calendar  Web Site- Commissaries.com review how we are communicating promotions to shoppers Price Changes – Work to eliminate $.01-$.02 price changes  Pursue solution for reduction of price changes – price increases should be updated at next regular price cycle not during a VPR period. Promotional Planning – Long term, display ready units, pallets, cases Future Meeting Dates – 9:00 D&S office in Hopewell, VA  April 29 th, July 15 th, September 24 th & November 19th

2008 Commissary Council Vendor Stocking Committee David McMurtry Mickey McDonald Don Goetz John Merana Pete Murphy Tim Atwood Jim Herring Kent Blue Russ Moffett

"DeCA is currently internally re-evaluating the initiative needs. As this evaluation is given due diligence, DeCA's stance today is to not aggressively pursue until this process can be completed. In the interim, Mr. Chandler is developing a store-level scorecarding process which will address incidences where there are issues with Vendor Stocking. This scorecarding will be utilized for Industry benchmarking more to follow" Vendor Stocking Committee Update