uwcc las vegas 10/29/01 agrilink foods. uwcc las vegas 10/29/01 new-age cooperative –raw product...

UWCC Las Vegas 10/29/01

Agrilink Foods


New-Age Cooperative

• New-Age Cooperative– Raw Product Plan

– Crop Valuation

– Outside Directors

– Liquidity for Owners


Traditional Agrilink/Pro-FacPublic Company Cooperative Cooperative

Quantity ofRaw ProductPurchased

Volumes equated tosales plan

Take all productionvolumes withoutrestrictions

Volumes equated tosales plan

Inventorymgmt./control

Inventorymgmt./control

Cash flow mentality Cash flow mentality

Purchase Priceof Raw ProductPurchased

Market driven Lacks structure, poorly defined, grower pressure for higher price

Average marketvaluation of competitorprices

Some companieshigh priced

Independent Boardmember approvalrequired

Some companieslow priced

Board committee levelreview

Annual contracts


Traditional Agrilink/Pro-FacPublic Company Cooperative Cooperative

Payment Terms Net 30-60 days Delayed paymentstructure varies widely

Delayed payment terms

50%-30; 25%-120, Balance July15 following year, if company makes money

Governance Management andoutside directors

Producer directorselected by members

Producer directorselected by members

Close affiliationwith Chairman/CEO

4 outside directors

CEO Democratic process

Owner returns Earnings driven Earnings driven Earnings driven Dividends No liquidity or limited

liquidity

Dividends

Stock appreciation Liquid Liquid


Communication at Agrilink

• Always striving to communicate for understanding. “Why we do what we do.”

• It will “pave the path” to our Vision.

• We are absolutely committed to relentless improvement in the way we share and receive information.


Our Mission

To be widely recognized for leadership and accomplishment as a food processing and marketing cooperative by using all our members’ and

employees’ talents.


Our Core Values

• Do what is right

• Excellence in performance

• Commitment to objectives

• Teamwork


Fortune 500: What it takes ...

• Motivated customers and consumers

• Inspired employees giving their best

• Owners & employees working together in a fair, ethical manner to meet shared goals

• Respect for meeting stakeholders’ needs with mutual trust and respect toward the company


Vision for the Future . . .

Agrilink redefines the word:

Commodity


Agrilink Strategic Direction

All significant initiatives and activities are evaluated to be consistent with these objectives:

•Consumer trends … adapt to changes in the marketplace

•Financial viability …self sustaining

•Focus … one business

•Member preferences


Strategic Direction

• Member Preference

– Healthy Capital Structure

– Grow & maintain grower deliveries

– Return above CMV


Strategic Direction

• Consumer Trends

– Adapting to changes in the marketplace


The Changing Consumer

• Older consumers will drive demand for health and nutrition.

• Younger consumers are “smarter” about diet and nutrition.

• 70% of U.S. consumers believe organics are better for their health.

• Consumers are buying foods with a health message.


The Changing Consumer

• Within 20 years, 45% of children under 19 will be of a diverse ethnic background.

• 10 years ago, shoppers averaged 40 minutes in a grocery store… today it is 18 minutes.


New Consumer Habits

• Meals are assembled rather than cooked

• Dining can take place anywhere

• We have become a “snacking” culture …eating 6X a day

• When meals eaten at home, family members eat different items at different times

• More food dollars going to restaurants


The Changing Industry

• Fewer grocery stores, but more outlets where some groceries can be purchased.

• Retailers are looking to collaborate with manufacturers and will reward manufacturers who:

– Have leading brands

– Are efficient suppliers

– Demonstrate management expertise

– Help them grow


Innovation is the answer

• Innovation will come from quickly changing technology

• Innovation that provides products when, where and how consumer want them

• Innovation that provides service to customers that sets us apart

• Innovation that creates value for customers, consumers and owners


Watsonville, CA-

Broccoli, Spinach, Limas, Brussels Sprouts

Corn: Cut & Cob, Peas, Green Beans, Blends,Value Added items

Celaya, Mexico

Oxnard, CA

Cauliflower & Broccoli

Alamo, TX

Potatoes, Broccoli, Okra,Southern Greens, Southern Peas,Peppers, Onions

Uvalde, TX

Spinach, Southern Greens,Okra, Southern Peas

Montezuma, GA

Southern Greens,Okra, Southern Peas,Onions, Breaded Products

Bridgeville, DE

Peas, Limas, Beans, Spinach

Arlington, MN

Coated Pasta Products

Darien & Fairwater, WI

Corn; Cut & Cob, Peas,Green Beans,

Brockport, Barker,Bergen, Oakfield, NY

Corn; Cut & Cob, Peas,Green Beans,

Fulton, NY

Meal Starters &Box Sauce Line

:

Agrilink FoodsAgrilink Foods Frozen VegetableFrozen Vegetable

Processing FacilitiesProcessing Facilities

Woodburn, OR


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Agrilink Pack National Supply

Agrilink & National Frozen Agrilink & National Frozen Vegetable SupplyVegetable Supply

*includes exports


Strategic Thrusts

• Low Cost Operator– means that Agrilink will be the lowest cost provider of products and services that

meet our customers’ and consumers’ needs through a program of relentless improvement, investment in innovation and development of supplier partnerships .


Strategic Thrusts

• Total Customer Service– means that Agrilink will listen carefully and respond effectively to our

customers’ needs; anticipating their future requirements while building close relationships in an environment characterized by trust, flexibility and reliability. This philosophy also applies to our team members (internal customers). As a team, we will treat each other with the same consideration, concern and respect as we do the people who purchase our products.


Strategic Thrusts

• Totally Effective Workforce– means a workforce that is well-trained and operating as one highly effective team.

Everyone in the organization is focused on customers and consumers. Everyone is driven to achieve personal, group and organizational goals. All of our employees act with an empowered, entrepreneurial attitude as they actively participate in the business process.


Strategic Thrusts

• Pursuit of Profitable Growth– means we will seek to build our business by pursuing profit-building opportunities

through new distribution, new geographies and new product development.

uwcc las vegas 10/29/01 agrilink foods. uwcc las vegas 10/29/01 new-age cooperative –raw product...

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