Chicago

May 2017

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Confidentiality and Antitrust

• We are not here to ask anyone to disclose sensitive competitive information

• We are not here to encourage anyone to recommend changes to their company policies or practices – those decisions are up to each of you independently

• If you feel something is proprietary or confidential, do not offer that up to the group

• Do not breach any confidentiality agreements you may have with your customers during these discussions

• Be especially careful to avoid discussions about anything to do with specific prices for specific customers

• Avoid discussions about whether to do business with certain partners and under what terms of sale

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Why are we here?

• Managing trade allowances and pricing discounts is a challenging and dynamic responsibility

• Across manufacturers, there are significant yet common challenges

• In some areas, solutions defined collectively can have greater value than operating independently

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A. Education

B. Awareness

C. Problem-solving

D. Networking

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I 2011 June Chicago

II September Chicago

III 2012 January San Francisco

IV June New York

V October Las Vegas

VI 2013 January Atlanta

VII May Chicago

VIII December Boston

IX 2014 May Chicago

X November Napa Valley

Meeting History

XI 2015 February Austin

XII October Orlando

XIII 2016 May Chicago

XIV October Las Vegas

XV 2017 May Chicago

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Participating Companies

AdvancePierre

Bagcraft

Butterball

Campbell’s Soup

Conagra Brands

Continental Mills

Custom Culinary

D&W Fine Pack

Diamond Crystal

Farmland Foods

Flowers Foods

Foster Farms

General Mills

Genpak

Hillshire Brands

Hoffmaster

Hormel Foods

Huhtamaki

Idahoan Foods

International Paper

J.M. Smucker

J.R. Simplot

John Morrell

Ken's Foods

Kerry Foods

Keurig Green Mountain

King & Prince

Koch Foods

Kraft Heinz Company

Lamb Weston

Land O’ Lakes

Mars Wrigley

Mission Foods

Nestle

Ocean Spray

Perdue Farms

Pilgrim’s Pride

Pinnacle Foods

Procter & Gamble

Reckitt Benckiser

Rich Products

Sabert Corporation

Sargento

Schwan's

Smithfield Foods

Solo Cup

Tyson Foods

Unilever

Ventura Foods

Volpi Foods

Weston Foods

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Topics

Broker Consolidation

Buying Group perspective

The Death of List Price Volume

Redistribution & Deductions

Efficient Claims Processing

GPO Compliance

GPO Location Level data

Growth of Cash & Carry

Industry News

Operator-focused Organizations

Recapture

Sourcing RFP's

Sysco - US Foods merger

Trade Metrics

Trade Organization

Value for the Sales Function

Guests

AFS Technologies

CBS

CHD Expert

Dot Foods

FSIC

Hale Group

I-Trade Network

Local Operators

NPD

Pentallect

Technomic

Tibersoft

Unipro

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8:30 Industry News

9:15 Case Studies

• Land O’ Lakes - CRM Integration

• Simplot - CRM Integration

• Smucker - Analytics

10:45 Break

11:00 Operator Insights – Gary Karp [Pentallect]

12:00 Lunch

1:00 Claim Processing Automation

1:30 Group Breakouts

3:45 2017 Achievement Awards

4:30 Close and Adjourn

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6:00 Lobby departure for Eataly [43 East Ohio]

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1:20 first pitch

3639 N. Sheffield

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• What is the dispute process for collecting repayment of unauthorized deductions? What is

the expected timing relative to collection of unauthorized deduction dollars?

• Relative to timing, will the operator claims for June POD submitted the first week of July be

the first period that will be deducted? If not, what is the timing/POD month?

• Currently net pricing for category awards are executed off invoice. Will the new policy

effect those transactions?

• The majority of our trade allowances are passed along off invoice. Will the new policy

effect those transactions?

• When a Sysco location purchases through Dot Foods, how will this new process function?

• What is the expected latency between the purchase from Dot and the deduction being

taken?

• Will each individual Sysco house deduct for their allowances or will there be one corporate

deduction?

• Will food show booth fees and food show allowances also become deductions?

• If a local house specifically requests a check from our organization, how should we

respond?

• Does this new policy involve Sygma in any way?

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To: VRSupport account <vrsupport@gfs.com>

Subject: GFS Vendor Receivables invoice changes

Attached Word document is a notification from the Gordon Food Service Vendor Receivables department

concerning an upcoming change to the invoices generated by the Vendor Receivables team.

To summarize, we have made the following minor changes to our invoices:

- If you are set up on email distribution, you will now receive 2 emails with your invoices. 1 email will contain the

PDF invoices, and the other email will contain a CSV file of the invoice data.

- The PDF invoices will contain the same information as before, however they will now be in a "vertical" style,

instead of the previous "horizontal" style.

- The email will also include the GFS invoice number in the body of the email.

- "Net Invoicing" PDF invoices for Purchase rebates will not change. These will continue to be sent as PDF's. We

do not have CSV capability for these yet.

- The invoices will not have any new information. Same information - now put into a CSV file.

These changes will start with all invoices beginning on Monday 4/3/17. Please review the attached document for

additional information, and answers to Frequently Asked Questions. If you are not the correct person to receive

this information, please forward to the appropriate person.

Please respond only to vrsupport@gfs.com.

U.S. Vendor Receivables | p: 616-717-6010

PO Box 2824 | 1300 Gezon Parkway SW | Wyoming, MI 49509-9300

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CRM Integration

Jim Levi

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CRM Integration

Amy Clark

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Torch Analytics

Tom Theis

Chicago

May 2017

Operator Insights

Gary Karp

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GROUP BREAK OUTS

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Today’s process

• Small breakout groups for discussion

• Ideate, brainstorm and problem-solve

• Re-group as a general session

Your role

• Rely upon your experience and knowledge in the industry

• Try to free yourself of the constraints you may have “back at the ranch” [e.g., disposable vs. F&B, broker v. direct, etc.]

• While we are working as a group, feel free to throw in challenges you have right now for selfish reasons

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What would a “Best-In-Class organization” look like as it

relates to managing discounts, allowances and trade?

Structural

• Resources

• Policy

• Systems & Data

• Other

In Practice

• Direct Trade

• Local Marketing

• Operator Discounts

• Brokerage

• Other

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1. Easy – today, no capital, etc.

2. Medium

3. Big Idea

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Group x

Mark Runstedler

Sarah Stewart

Bailey Kellogg

Mike Druga

Lana Braverman

Jay Crown

Group x

Rick Wold

Henry Spikes

Shawn Kaylor

Michelle Jensen

Jose Garcia-Meitin

Jayme Pinto

Group x

Gary Lehmann

Amy Clark

Melissa McLaughlin

Charlene Lee

Jennifer Abel

Len Nicholson

Group x

Deb Buckley

Mike Niro

Beth Johnston

Paige Rosenbergh

Curt Langacker

Jim Stolle

Group x

Tom Theis

Holly Campbell

Matt Stredney

Scott Marquardt

Ann Perry

Group x

Mike Leiker

Katherine Tschirhart

Julie Michel

Robert Grimsley

Pam Beres

Group x

John Claggett

John Marler

Terry Feret

Denise Tapia

Ellen Maier-Zinn

2017 ACHIEVEMENT AWARDS

Best Practices

Capabilities Adoption

Analytics

Integration

Evangelism

Best Practices

Capabilities

Adoption

Analytics

Integration

Evangelism

NEW Smoke Jumpers Resources page will go live on our website June 1

Get Social

#SJXV2017

SMOKE JUMPERS XVICHICAGO

OCTOBER 18 - 20

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Day One

• Current events

• SAP Hana

• PROS

• Research

--------------------------------------

2017 State of the Industry

Day Two – Best Practices & How To

• Accruals

• Retail Planning

• Managing indirect banners

• Optimizing program approval cycle time

• Maximizing claim approval cycle time

• Best practices for re-collecting discrepancies

• Optimizing deduction auto match

• Leveraging FORGE to track CatMan overage

• Automating the blended rate [e.g., effective rate]

• Deviated price validation through Dot Foods

• Best practices for managing local marketing

• Analytics – standards for claims and deductions

• Analytics – discounted share tracking

• Analytics – monitoring GPO and Large Account Volume

• And much, much more!!