FOODSERVICE

1
2002 OUTLOOK FOR
FOODSERVICE
DISTRIBUTION
presented by
ID
THE Information Source for Managers and Sales Reps
2
?
?
?
?
?
?
?
?
?
?
?
?
3
Why Did the DSRs
Cross the Road?
4
To Catch the Chicken
For Their Operator Customers!
5
Because Foodservice Business Is Getting Better!


6
Annual ID Executive Survey
Annual ID Operator Survey
Annual ID Top 50 Report
Annual ID DSR Survey
7
Factors Impacting the Industry in 2001
Unstable Economy


September 11 , 2001
8
NOTBADYEAR
2001 Distributor Sales
4.3
170 Billion
Broadliners
94.9 Billion
ID Top 50 Sales
4.8
59.1 Billion
Technomic Inc. ID
9
11th Consecutive Year of Growth
National Restaurant Association
projects
407.8 Billion in sales in 02
1.1 Billion per Day or 3.83 for Every American
10
Leading U.S. Metropolises For Operator Development
Norcross, GA Decatur, AL St. Joseph, MO Anniston,
AL Bismark, ND Gadsden, AL
Claritas Inc., ID May 2002
11
Recovery Under Way !
Single-month Sales in December 01 Record 28.4
Billion NRA
January and February 02 Same Store Sales Top
01 NPDFoodWorld
Technomic Revises 02 Projections Upward Once and
then Again
12
Upbeat Industry Pundits !

• In spite of 9/11 and the economic conditions that
  we face today, there is still a bright future for
  the continued growth and success of the
  foodservice sector. Roger Toomey, UniPro
  Foodservice
• The foodservice industry continues to be the
  growth engine of the U.S. food industry. John
  Gray, IFDA
• While we will see short-term changes in the
  market due to outside influences, the broader
  market will continue to grow I see a bright
  future for foodservice. Doug Coen, Martin
  Brothers Dist.

ID March 2002
13
WHY?
We love to eat out !
14

• Eating out has become a part of the American
  personal and domestic landscape.
• In todays hectic lifestyle, eating out is
  convenient. The venues are mind boggling.
• Its a form of social interaction.

15
93 of DSRs Expect 02 Sales Volume To Increase By
13.3
ID DSR Survey 2001
16
Poultry Share of Distributor Sales
GROWING
2.3
4
4
1999
2000
2001
ID Executive Survey
17
Comfort Zone

• Its hard to think of a foodservice operation in
  any segment thats not appropriate for chicken.
• Chicken continues to lead the hit parade in
  terms of consumer popularity.
• According to Chain Account Menu Survey (CAMS),
  the Top 200 restaurant chains added significant
  numbers of new chicken items in every major
  non-dessert category in the first six months of
  2001.

ID January 2002 Menu Solutions
18
But there are CONCERNS !
19
Labor
Consolidation
Maintaining Sales Profit Margins
National Economy
World Affairs
20
FOOD SAFETY SECURITY
Cause it can kill you!
21
How can poultry producers increase their market
share ?
22
DSR
23
3/4s of DSRs say their buying departments require
feedback on products they buy.
86 of DSRs influence companies on which items
they will sell.
95.5 of DSRs say they are primary sources of new
product information.
Operators say DSRs are the foremost source of new
product information.
ID DSR, Executive Operator Surveys
24
DSR Consultative Selling

• New product information
• Menu planning and costing
• Inventory control/business planning
• Merchandising and promoting menus
• Food safety
• Employee training

ID DSR SURVEY
25
ID

• is confident in the strength of all segments
  of the foodservice industry.
• is confident in the consultative role and
  skills of the DSRs.
• is confident that the industry, economy and
  nation will recover.

26
ID
Thank You !