1. “Winning the Expired Products Battle” Ensuring Adequate Remaining Shelf Life to Maximize Sell Through and Avoid Product Expiry – the Keys to Success Presented by GENCO ATC July 20,2011

2. Topics for Today’s Discussion Size of the Issue Complexity Recommendations Panel Discussion 2

3. The Issue 3

4. 4 “Outdated items at XXXXXXXX upsets customers” Chicago Tribune “Expired Food—Is It on Your Grocer’s Shelves?” Shelf Life Advice “On Your Side: Expired food for sale” ABC Channel 7 News “Expired groceries sold at Hampton Roads grocery stores” ABC Channel 13 News

5. The Issue 5

6. The Size of the Issue 2008 FMI/GMA Unsaleables Report – 20% of Total Unsaleables 2010 Discussions with Retailers – 35% of Total Unsaleables $3 - $5 Billion 6

7. The Complexity of the Issue 21 Factors Identified that Affect Delivery of Sufficient Shelf Life at Shipment Collaboration is a Key Element for Success Ultimate Goal is to Delight the Consumer 7

8. The Complexity of the Issue Manufacturer Research & Development Team establishing the product shelf life Receiving and rotation philosophy/process at retailer/wholesalerDC Production planning for manufacturingInventory level at retail store Demand planning and forecasting for manufacturingRotation process at retail store Lead time, availability and shelf life for raw materials and ingredients used in manufacturing Product case pack and inner pack quantities Manufacturer efficient inventory management to meet requirements to achieve customer service standards and requirements related to order fill rate Consumer penchant for purchasing the freshest product on the shelf Manufacturing capacity constraintsPromotional activity and the resulting inventory “push and pull” Climatic factors that impact product and package quality degradation Category management / SKU rationalization philosophy Total shelf life remaining at the time of delivery to retailer/wholesaler by manufacturer Supply Chain complexity Retailer/wholesaler ordering patternsDiversion Inventory turns rate by category/SKU/store segment/class-of- trade/geography, etc. Pantry life Inventory level at DC (managed through buying and distribution strategy) 8

9. The Complexity of the Issue 9

10. The Manufacturer’s View Sales Demand Planning / Distribution R&D and Quality Plants Want maximum days Want minimum days Want customer requirements Want maximum days 10

11. The Retailer/Wholesaler’s View Retail Stores Distribution Centers Manufacturer Consumer Want maximum days Want minimum guaranteed days Want maximum days 11

12. Recommendations for Joint Adoption Understand the Challenges Collaborate with Trading Partners Rationalized Stock Assortment Speak a Common Language Embrace and Commit to Continuous Improvement Top Management Sponsorship and Commitment 12

13. Recommendations for Joint Adoption Speak a Common Language MCRSL > [A x (B+C)] + D MCRSL – Minimum Customer Remaining Shelf Life (days) A – Safety Factor (whole number based on category experience) B – Average Retail Sales Velocity (days) C – Warehouse Inventory (days of supply) D – Consumer Pantry Life (days) 13

14. Recommendations for Manufacturer Adoption Create a “Customer Remaining Shelf Life” Internal Team to Manage the Process Audit Performance Continually Improve the Process and Adjust Standards Incorporate Sales Considerations into the Process 14

15. Recommendations for Retailer/Wholesaler Adoption Work with Manufacturers to Establish Achievable Standards and Continually Improve the Process and Adjust Standards Request Open Lot Codes Manage Inventory to Consumption Incorporate ASN Technology for Inbound Shipments Incorporate the Ability to Capture Expiration Dates into the WMS Monitor Operations Processes for Improvement Opportunities 15

16. Panel Discussion Oscar Fussenegger, Corporate Reclamation Manager, The Kroger Company Don LaChance, Senior Director, Inbound Quality Logistics & Reclamation, C&S Wholesale Grocers Gary Piwko, Director, Remarketing and Returns, The Kellogg Company Jace Swartzendruber, Unsaleables Manager, Supply Chain, ConAgra Foods George Thrower, Manager of Unsaleables, Harris Teeter 16