Reichel Foods 2009/2010 Program

Biography

• Reichel Foods, Inc.– Established in 1997– Sells Dippin’ Stix in North America – Employ 150 people in Rochester, Minnesota

Overview

• Reichel Foods, Inc. is a leading fresh cut produce processor committed to:– Quality– Food Safety – SQF 2000 Certified– Customer service

• For over 12 years, the company has been a snacking category leader providing top quality, value-added, fresh-cut healthy snacks.

Products

• Dippin’ Stix products are best known for extended shelf life accomplished through:– Unique sustainable packaging– Strict quality standards– Technology– Innovation

• Our most popular products:– Apples & Caramel Dip– Carrots & Ranch Dip

• Must be kept refrigerated

Customer Service

• Reichel Foods provides exceptional customer service designed to deliver satisfaction with every customer contact.

• Although our products are exempt from COOL (Country of Origin Labeling) regulations, we’ve been proactive in labeling our products to aid our customers and consumers.

The American Diet

• According to studies done by the Centers for Disease Control “the American diet is not in balance.” Americans are not eating enough fruits and vegetables.1

• To combat this the CDC has launched a massive media campaign in partnership with the USDA’s Food Pyramid to get people consuming the right foods in the right quantities.

• Studies show that 63% of all consumers are actively trying to replace high calorie snacks with Healthier options.2

1 – CDC Website 2008

2 – FRESH CUT, January 2008

National Trends

• Brown Bagging it for lunch is at an all time high since 2001.1 Adults 18 and older consumed 8.5 billion brown bag lunches in 2007.

• 12% of lunchtime opportunities are brought from home.2

• Snacking is forecasted to increase 18.5% by 20185

• 21% of all meals are snacks5

• Fresh Cut purchases are up $5 Billion since 2001 driving the majority of the growth in the category.3

• 25 – 35 year olds are the heaviest demographic of fresh cut fruits and vegetables.4

1 – NPD Group, Port Washington, NY 3 – FRESH CUT, January 2008 5 – Progressive Grocer 8-31-09

2 – Brandweek.com Sept. 2008 4 – AC Nielsen: 2007 estimated

Consumer Needs/Categories

• Today’s American consumer is looking for snack foods with 5 characteristics:– Taste fresh and good– Healthy/Nutritious– Convenient/Portable– Appeals to entire family– Priced right

• Dippin’ Stix are uniquely suited to meet all these needs.– Grab and Go section

Growing category: Sliced apple sales were up 42% last year.

Single Serve Dippin’ Stix

• Dippin’ Stix single serve products are the perfect convenient healthy snack alternative.

• The longest shelf life in the industry for reduced shrink and increase profit in your department.

• Unique eye catching packaging to draw the consumer to purchases in the produce department.

• Priced right to allow 2/$3.00 everyday and 10/$10 promotional pricing at attractive margins.

Maximize Choices

• Each SKU takes up only 3” of shelf space!• 15” of shelf space is all it takes to face out our core 5 flavors!• Offer your customers more choices in less space with Dippin’

Stix. Mix and Match• Each package stands upright.• Merchandising tray pack available.

15”

Dippin’ Stix Party Trays Multiple Serve Dippin’ Stix

• Dippin’ Stix multiple serve products are a convenient healthy way to feed large groups.

• Multiple Serve packages maintain the benefit of the longest shelf life of any like product in the category!

• Perfect item for everyday distribution or in and out displays.• Ideal choice for everything from summer picnics to formal

Christmas dinners.

• PO’s are due on Friday. Product is delivered the second week following (10-13 days lead-time).

• Reichel Foods sells Dippin’ Stix in North America.

• FOB Available in Rochester, MN

Lead-time when sourcing Direct

Suggested Distribution Rank2.75oz Dippin’ Stix

1. Apples w/Caramel – low fat– 100 Calories

2. Carrots w/Ranch Dip3. Apples w/Caramel & Nuts4. Apples w/Yogurt Fruit Dip

– low fat– 90 calories

5. Apples w/Peanut Butter6. Dill Pickle w/Bacon Ranch Dip

– 90 Calories

7. Carrots w/Lite Ranch– 80 Calories

*Dippin’ Stix are not Kosher

What is New?

• Hummus – Available Fall 2009– Single Serve– Party Trays

Our Advantage

• The Dippin’ Stix Advantage:– Longest shelf life: Dippin’ Stix offer the longest shelf life in the

industry therefore reducing shrink and generating more profit than any other competitor.

– Price Point:• Everyday pricing is around 2/$3.00, very impulsive and a value

price point. 50% of decisions are made at point of purchase.

• Able to promote at 10/$10 and still make good margins.

– Reichel Foods is SQF2000 certified and our plant is inspected by the USDA and the FDA

– Sustainable packaging – only two pieces of packaging material

• 50% of purchasing decisions are made at the point of purchase

• 44% of respondents identified excessive packaging as a major concern

Next Steps

• Evaluate which products make sense for your locations:– 7 Single Serve choices– 4 New Single Serve choices– 3 Party Tray choices– 2 - 4lb. Apple choices

• Set up items in system and develop planogram• Execute in-store distribution • Determine merchandising plan• Grow Produce Category Sales!