Fresh and Branded Meat

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Dan Unolt Vice President Meat Purchasing
Fresh and Branded Meat
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A National Force
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Programs

• Frozen
• Grocery
• Dairy/Bakery
• Health Beauty/GM
• Fresh Meat
• Branded Meat
• Produce
• Pharmacy
• Not-for-Resale
• National Brands

Center Store Private Label
Perishables
Other
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Fresh Meat Program
Beef, Ground Beef, Pork, Lamb, Veal

• Differentiation through brand specialization
• Angus, Choice, Select, Natural, etc.
• Largest Purchaser 11 years running!
• Major purchaser

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Fresh Meat

• A half billion pounds procured annually
• 1.35 billion in member purchases

300 Truckloads Weekly!
Beef/grinds, pork, lamb, veal
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Fresh Meat Members
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Topcos Role with Member

• Buying, Aggregating, Leveraging Volume
• Vendor Sourcing
• Negotiation of Costs / Terms / Arrangements with
  Vendors
• Brand and New Product Development
• Quality Assurance
• Packaging Design / Procurement
• Order Entry and Service Follow-up

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Natural Beef Programs

• Conventional Beef (can be labeled natural)
• Minimally Processed
• No added ingredients
• Withdrawal Attributes
• No Added Hormones during the 120 day finishing
  period
• No Antibiotics during the 120 day finishing
  period
• 100 Vegetarian (corn based) Diet during
  finishing period
• Humane Handling
• Never Ever Attributes
• No Added Hormones ever
• No Antibiotics ever
• 100 Vegetarian Diet (corn finished)
• Humane Handling

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Organic Beef

• Must be certified by a USDA accredited
  certifying agent
• Organic Attributes and requirements include
• National organic standards require oversight of
  production and handling systems
• Livestock must have access to fresh air, water,
  sunshine, grass and pasture, and fed 100
  organic feed.
• No Added Hormones ever
• No Antibiotics ever
• Humane Handling
• Traceability

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Vendor Programs

• National Beef
• Naturewell
• NatureSource
• Tyson Fresh Meats
• StarRanch
• Certified Angus Natural Beef
• Organic Prairie

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Natural Beef ProgramsCost Comparisons

• Steak Cut Striploin
• Commodity Beef 6.00
• Withdrawal 6.80
• Never Ever 7.80
• Organic 13.00

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Natural Beef ProgramsCost Comparisons

• Roast Cut Inside Round
• Commodity Beef 1.45
• Withdrawal 1.70
• Never Ever 1.95
• Organic 5.50

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Natural Beef ProgramsCost Comparisons

• Ground Beef 85 Lean
• Commodity Beef 1.52
• Withdrawal 1.88
• Never Ever 2.29
• Organic 4.30

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Topco Volume

• Withdrawal 15,000,000 2.9
• Never Ever 4,000,000 .8
• Organic 40,000
• Total Beef 510,000,000

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Market Share and Growth Potential

• Natural Beef Withdrawal / Never Ever 10
• Organic Beef 1 - 2
• Grass Fed Beef lt 1

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Full Circle Meat Programs

• 28 members and growing
• 1st full year retail sales volume 20mm
• 50 new items
• 65 SKU count and growing

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Fresh Beef
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All Natural Fresh Meat