Janice Neitzel Principal & Founder

Sustainable Solutions Group

www.SustSolutions.com

Responsible Sourcing ► Demand for healthy, higher welfare food is greater

than is supply and companies need a plan.

► Consumers and NGOs are demanding transparency in sourcing.

► Companies are seeking guidance to:

1. Gain Competitive Advantage

2. Have Parity with Competitors

3. Avoid being an NGO target

Responsible

Leadership Training

Animal Welfare

Advisement

Responsible

Sourcing Roadmap

NGO Relationship

Management

CSR Messaging

Services

Guiding Responsible Sourcing ► We specialize in Animal Welfare Advisement.

► Through NGO Relationship Management we guide you avoid being an NGO target.

► We provide custom Responsible Leadership Training.

► We create CSR Messaging consistent with your brand.

► We guide your Responsible Sourcing Roadmap for healthy, higher welfare meat, dairy, & eggs.

Responsible Sourcing Roadmap

Copyright Sustainable Solutions Group 2012

Team

Dr. Temple Grandin, Advisor World-renowned expert on animal behavior and Professor of Animal Science at Colorado State University. 2010 Time Magazine’s 100 most influential people.

Alma Triplett, Principal 26 years experience at a $24B restaurant company managing global multi-cultural organizational change.

Janice Neitzel, MBA, Principal & Founder Guides top food industry decision-makers to plan and implement responsible sourcing improvements and CSR messaging.

Debbie Zapatka, Director of Graphic Design 25 years graphic design for CVS/Caremark, SkyMall, PetSmart, Intel, Leo Burnett,, Ogilvy, and more.

Carter McRee, MBA, Principal With a PhD in Biomedical Sciences, uses a scientific approach to guide clients to source from healthier food production systems.

Testimonials

Harris Teeter, Brad Graham,

GVP Purchasing

“Janice is a true professional! She has

provided timely detailed direction and is a

results driven expert that consistently

delivers a high level of detailed knowledge

on tough industry issues. “

Sonic Corp., Nancy Robertson,

SVP, Franchise HR Development

“Your working with us has been so thought-

provoking and helpful. Your help in

facilitating discussion on these (animal

welfare ) issues at Sonic has been huge.”

Unilever, Kevin Wyderka,

Systems Director

“Janice demonstrates creativity and

balances reality. She has excellent

facilitation skills to manage groups

effectively and bring them to

consensus.”

Ruby Tuesday, Rick Johnson,

SVP Purchasing

“It has been a privilege to work with you.

We admire your dedication to the welfare

of animals.”

Demand for Grass-fed / Organic

2011 AMI/FMI Joint Study 2

Shows US consumer demand driving increased

sales of organic and all-natural meat and poultry

citing:

44% better health

37% better animal treatment

33% better nutrition, taste & freshness

2012 Hartman Group Report 1

Cites grass-fed meat, cage-free eggs, and

heirloom marbled pork as growing US trends.

1 Source: http://www.foodnavigator-usa.com/On-your-radar/Sodium-reduction/Butter-portion-

control-tart-cherries-and-stevia.-Welcome-to-2012

2 Source: http://www.progressivegrocer.com/inprint/article/id2274/ground-rules/

Demand to Ensure High Welfare

2010 Consumers Perception of Food Production 1

70% of US respondents want to know how producers are

ensuring farmed animal care

1 Source: http://www.foodsystemsinsider.com/Consumer-perceptions-of-food-production/

2010-05-06/Article_FSI.aspx?oid=1067779&fid=MAY_2010_1ST_FRIDAY

2 Source: http://contextmarketing.com/sources/feb28-2010/ethicalfoodreport.pdf

2010 Context Marketing Study 2

70% of US consumers are willing to

pay more for “ethical” foods and

91% include animal welfare

Consumers Want Welfare Labels

2011 Kansas University Study 1

Consumers will pay up to 20% more for

meat / eggs with a mandatory welfare label

consumers don't like gestation crates

or hen battery cages.

Source: http://www.agmanager.info/livestock/marketing/AnimalWelfare/AW-

Labeling_FactSheet_07-19-11.pdf

Source: http://www.abc.net.au/news/2011-01-03/labelling-sees-free-range-egg-sales-soar/1892582

2010 Australia 2

After mandatory egg labeling of caged or un-caged

cage free eggs sales increased 90%

caged eggs sales fell 50%

State Regulations Forthcoming

Battery Cage Bans California, Michigan

Gestation Crate Bans California, Florida, Arizona,

Maine, Oregon, Colorado,

Michigan, Ohio

2011 US Farmers & Ranchers

Alliance Study

Source:http://www.feedstuffsfoodlink.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=

News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=175440CE19204715

9190C24583EED5B7

► Americans describe modern farming as

mass production,

subsidies,

chemicals,

factory farming,

and animal cruelty

► 92% of US hens in battery cages

► 70% of US sows in gestation crates

US Consumers Support UEP

Enriched Cage Bill

► 2012 Bantam Group Survey:

Respondents support the bill

4-to-1

► Transitions egg production

from the barren “battery cages”

to “enriched cages.”

► “Enriched cages” provide

perches, nest boxes and

scratch pads.

Source: http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=30291

Image Source: http://kunc.org/post/ex-foes-stage-coop-detat-egg-laying-chickens

Producers Need Support

for Transitions

► Conversion Strategy

► Change Management

► Timeline Management

► Financing

► Project Management of Entire Transition

Investor Sentiment

Source: http://www.fool.com/investing/general/2011/02/08/seeking-more-humane-profits.aspx

2011 Motley Fool’s “Seeking More Humane Profits” “In their search for truly ethical

companies, socially

responsible investors highly

rank businesses that work to

eradicate cruelty from their operations.”

US Animal Welfare Market Leaders

► 2010 Stock up 157%

“Food with Integrity”

► 2010 Stock up 72%

Global Animal Partnership

5-step Program

Sample Companies Sourcing

Higher Welfare Foods

McDonald’s and Compass Group

Requiring US Crate-Free

“McDonald’s believes gestation

stalls are not a sustainable

production system for the future.

There are alternatives that we

think are better for the welfare of

sows” "Encouraged by Bon

Appetit's efforts, we are

proud to be the first large

foodservice company to

make this commitment.”

Commitments to 100% Cage-Free

Subway plans to

switch 100 % of

its eggs to cage-

free and has

already done so

in the UK.

Costco,

Trader

Joe’s, and

Walmart,

have

committed

all private

label eggs

to be

cage-free

Sara Lee & Kraft Sourcing

Cage-Free “Sara Lee has joined the

national movement away from

using eggs from caged hens…

[and] has committed to

purchase more than one million

cage-free eggs per year.”

“We recognize that animal

welfare is an issue that

resonates with customers, and

we’re taking this step to address

their concerns.”

Burger King Driving Change

“Our corporate conscience

drives our commitment to

animal welfare. For almost a

decade, we have used our

purchasing power to

encourage positive steps in

… the production of cage

free animal products.”

Increased Supply Needed due to

Consumer Demand and Transparency

Level 3 Planning even with

supply lacking

Level 1 Business as Usual

Level 2 Taking Some Steps

Level 4 Leaders

Comprehensive

Approach