innovation

1. 2nd Quarter Employee Involvement Meeting Defining the Strength of Leahy’s Resources Presented by: Your Supply Chain & Sales and Marketing Team customers innovation

2. customers innovation resource

3. Meeting Agenda • Leahy’s current world • Addressing the Challenges • The New World • Employee of the Quarter Nominations and Award empowerment customers innovation resource

4. Leahy’s Current World • Company continues to sustain substantial growth • Raw Material cost continue to Rise, placing additional pressures on sourcing strategies • Innovations in technology are redefining how business is transacted • Brick and Mortar (Continuum, New Capital purchases) • Food Service consolidation • Distribution and Operator • RFP and Sourcing initiatives continue to rise empowerment customers innovation resource

5. Leahy’s Current World • Servicing our customers requires ability to respond quicker with a suite of more solutions than yesterday. • Strategically selling our goods in markets that can deliver ROI “Can’t be everything to everyone” • Diversification of the markets we serve empowerment customers innovation resource

6. Addressing the Challenges • Redefining our Supply chain Initiatives • Delivering additional resources dedicated to excellent customer service • Delivering additional resources designed to enhance our ability develop new and more profitable business empowerment customers innovation resource

7. Leahy’s New World Supply Chain Division Better, Faster, Stronger Presented by: Your Supply Chain Team customers innovation resource

8. Supply Chain Division Goals and Objectives Cost Reduction and Maximization Drive efficiencies through the entire Organization Reliability amongst all internal departments and trading partners Achieve strategic advantage over competition Maintain loyal customer base empowerment customers resource

9. Supply Chain Division Architecture Combine Operations, Accounting, Order to Cash One Department, One Team Specialized Interdependent Empowered empowerment customers resource

10. Supply Chain Division – Organization Chart empowerment customers resource

11. Supply Chain Division Sourcing/Production Planning/Purchasing/Logistics Supply Chain Managers Manufactured Goods Purchased Goods Own “Life Cycle of Finished Goods” Manage flow of goods and information Coordination with channel partners Integrate supply and demand management within and across companies Logistics empowerment customers resource

12. innovation Duties and Responsibilities – Chris Dixon • Supply chain management of Purchased Goods Category (Fruit, Fruit Sauces, Fruit cups, Syrups, Desserts. • Monitor long / obsolete inventories with recommendations for SKU viability • Supply Chain Logistics Management • Provide logistical support to maximize truckload efficiencies to minimize supply chain costs. • Optimize inbound finished good and raw material shipments in order to reduce supply chain costs and improve production efficiencies. • Analysis of supplier, warehouse, and logistics providers performance and capabilities in order to maximize company’s warehousing and distribution services. empowerment customers resource

13. Duties & Responsibilities – Marc Zielinski • I will be responsible for the Supply Chain Management of the Manufactured Goods Category at Power and CPS. This includes the planning and management of all activities involved in sourcing, procurement/production planning and incoming logistics. Also includes coordination and collaboration with suppliers, co-packers, 3rd party providers, and customers. • Develop & implement manufactured goods management strategies and policies • Develop & maintain strategic partnerships with our suppliers and distributors • Monitor macro trends in supplier and contract base and implement plans to react • Sourcing contracts & procurement of raw materials • Analyze market and delivery systems in order to assess present and future ingredient and packaging material needs and availability empowerment customers innovation resource

14. Duties and Responsibilities continued… • Production planning and forecasting - (ingredients, packaging materials & finished goods) coordinating the demand in collaboration with all suppliers. • Sourcing planning - (current inventory and forecast demands) in collaboration with all suppliers. • Track production activities and measurements. • Finished Goods Maintenance: Inventory control, SKU rationalization, warehouse studies, etc. • Inbound / Outbound operations and logistics • So… given my new role, what will Dispensed Beverage look like at the office? empowerment customers resource

15. Diane Schmitt • Will take over my former responsibilities and be your main point of contact, aside from service calls, for all things dispensed at the office. • Manage our entire Dispensed Asset portfolio • Manage nationwide service network • Oversee Dispensed portion of the ticketing system • Coordinate all installations, food show set ups, parts needs, etc. • Securing and processing all usage information. Monitor ROI of our investments / alert of low volume placements and recommend corrective action. • Responsible for processing all service bills and dispensed related payments • Develop and maintain relationships with Beverage Departments, Service companies, etc. • Support Sales Service on complex service issues empowerment customers innovation resource

16. Sales & Marketing Department • Former Inside Sales team has already taken on a bigger role in relation to Dispensed Beverage activities. • 1st point of contact for all service related issues • Develop and maintain relationships at the customer level • Managing each ticket in the ticketing system through completion • Oversee sending out of welcome kits • 3-touch process and up selling empowerment customers innovation resource

17. SUPPLY CHAIN GROUP CORPORATE CONTROLLER Goal: • Assist in Company achieveFinancial Goals • 1) Supervise all accounting functions • *Annual Budget • *Monthly Close • *Prepare Monthly Financials • *Supervise all accounting function • *Financial Analysis (Ad-Hoc Analysis) • 2) Supervise Order to Cash Process • 2) Create/Implement Policies-Procedures within accountingEfficiency, Accuracy

18. SUPPLY CHAIN GROUP

19. SUPPLY CHAIN GROUP IN THE PAST- • Accounts Receivable • Split customers • Nancy Gray • Halyna Lowenbein

20. SUPPLY CHAIN GROUP Accounts Receivable Specialist Halyna Lowenbein • Handles all customers (U.S. and Canada) • COLLECTS CASH ON TIME-Stay on top of customer invoices • Maintains all customer credit profile • Runs various reports for customer credit • Applies received cash into our ERP system • Manages all deductions • Broker Commission Payments & Reports • Maintained 21 Avg collection days vs. 23 Avg collection days in the past

21. SUPPLY CHAIN GROUP Pricing /Program Specialist Nancy Gray • Manage/Audit all Distributor pricing & program in ERP System • Manage/Audit all Chain Account pricing & contract in ERP System • Manage/Communicate List Price • Continuum Packing Solutions- • AP • AR • Misc-Daily ad-hoc analysis for accounting needs • New Audit System--Chain Account deduction error—Minimized (USFS/Premier)

22. SUPPLY CHAIN GROUP Accounts Payable Specialist Eric Ortega • Accounts Payable • Manages all payables (U.S. & Canada)  Vendors, Distributors, Brokers, T&E • Communicate all payment issues and backups

23. SUPPLY CHAIN GROUP Order Management & Logistics Manager Brenda Delgado • Manage POP (Perfect Order Process) • Manage the “Order Management Department” • Manage internal/external logistics • Maintain House Accounts-Starbucks & LSG

24. SUPPLY CHAIN GROUP Order Management & Logistics Manager Brenda Delgado • Excited to manage New Department • Opportunity to manage orders from A-Z  POP Process • Create New Culture on how we handle orders • Constant communication with Distributors • Enhance relationships-buyers, 3rd party logistics, warehouse contacts • Provide expertise and solution to our accounts • Betsy JohnsonUSFS, DOT, IMA, FARMER BROTHERS, COKE • Scott SchultzSYSCO, CANADA (ALL), UNIPRO, FRESH ISLAND, ALL OTHER

25. SUPPLY CHAIN GROUP • Perfect Order Process (POP)

26. SUPPLY CHAIN GROUP POP Goal • Save $$$ internally-Soft or Hard (Freight, Efficient Orders, Adding cases to orders, Eliminate warehouse picking) • Enhance or build buyer relationship • Enhance or build 3rd party logistics relationship • Enhance or build warehouse relationship • Make it easy for buyers to work with Leahy/IFP • Be Proactive and Communicate to buyers • Fully understanding customer profile (Pricing, Program, Logistics, Chain Accounts) and provide solutions on each order

27. SUPPLY CHAIN GROUP POP-Step 1-Order Receipt • Faxed/EDI/Email Order received • Order should be validated before entering into the ERP system: Correct Item #, Pickup or Delivery, Lead time, Pricing for all items. • Communicate to Buyer—any errors on the order • Communicate to Buyer---even layer policy • Communicate to Buyer---Identify missing items • Issues: • EDI order hang-up • Customers still faxing in Orders

28. SUPPLY CHAIN GROUP POP-Step 2-Order Entry • Received Orders are entered into ERP system. • Validate Product Setup • Validate Pricing Setup • Implement Correct Warehouse location (EDI) • Place directions on orders for Warehouse to follow • Place a call to Buyer-Notify order receipt, Confirm lead time (pickup appointments), Communicate our add-on procedures, communicate any possible shorts • Issues: • Incorrect Lead time • SAGE ERP system error-Products, Pricing

29. SUPPLY CHAIN GROUP POP-Step 3-Build Order Packet • Print out Daily Order Recap/Warehouse Order Form/EDI from Previous day • Review Pricing • Review Correct Ship-to Customer • Correct Quantities • Correct freight terms (CPU or Delivered) • Communicate to buyer on any incorrect pricing • File order until any revision is requested • Issues: • Incorrect Pricing

30. SUPPLY CHAIN GROUP POP-Step 4-Logistics • Deliveries  Contact 3rd party Trucking Company to arrange for delivery • Evaluate freight quote • Understanding Distributor Profile to suggest the most efficient way of shipping the products • Understanding National accounts and financial impact on selecting the correct ship point • Manage freight invoices-Review and approve for payment • Issues: • Not billing Freight • Not getting competitive quotes • Incorrect freight billing from 3rd party—different vs. the original quote

31. SUPPLY CHAIN GROUP POP-Step 5-Open Order Report • Customer Pick Up/Delivery – Lead time management • Print out Open Order Report Daily • Review all appointment dates—Managing Distributor pick up appointments, Managing 3rd party pick up appointments • Communicate to 3rd party freight company to stay on schedule • Communicate to Distributor logistics contact to stay on schedule—validate all pick up times • Communicate to remind the buyers of our add on policy and lead time policy to the buyer • Issues: • No appointment scheduled

32. SUPPLY CHAIN GROUP POP-Step 6-Billing • Bill the customer • Warehouse ships the product in the system • Bill of Lading is printed • Validate case quantities • Validate lot codes • Bill • Print Invoices • Validate PRICING /FREIGHT/PALLET CHARGE/MISC CHARGE for the FINAL TIME • Place all packets for the warehouse---file and mail • FINAL Communication to the buyer—notify order has been shipped and thank them for the order • Issues: • Incorrect Bill of Lading • Warehouse ships wrong products, wrong quantities—doesn’t reflect on Bill of Lading • Warehouse misses any add ons • Incorrect Lot numbers—Warehouse input error

33. SUPPLY CHAIN GROUP Order Management Specialist-Betsy Johnson • Focus-Fully Managing Orders • My AccountsUSFS, DOT, IMA, FARMER BROTHERS, COKE • Build/Enhance relationships with my key contacts at the distributor level • Upsellingthrough communicating policies (ex: even layer policy) • Owning each of my accountsKnow the customer profile(ex: Pricing, Programs, Chain Accounts) • Opportunity to work with Logistics TEAMReduce freight cost • BuyersBetsySOLUTIONS

34. Leahy’s New World Sales and Marketing Department Delivering Exceptional Sales Support Presented by: Your Supply Chain Team customers innovation resource

35. Leahy’s New World • The Sales and Marketing Department As we continue to diversify the segments in which we serve the company has identified that additional resources must be implemented in order to provide better service and support to our sales team and customers. These services will be realized through the formation of the Sales and Marketing Associate. Primary Responsibilities will focus solely on the sales and marketing aspects of our company. Key Highlights are as follows: • Sales and Marketing Management – Proactive, structured, go –to – market strategies for growing our business with key end users, multi-unit accounts, and distributor’s sales network. • Regional and National Trade Show and Conference Management – Responsible for everything pre-show, show, and post show. empowerment customers vation resource

36. The New World-The Sales and Marketing Department • Customer Retention – Engage in a constant dialogue with our customers to both maintain and grow our existing business. • Database management – Full utilization of the CRM tool will be the key to streamlining sales and marketing efforts both internally and externally in the field. • Manage established marketing programs – Build the Leahy-IFP brand by recognizing our top tier operators with a value add tool. • Coordinate National/Multi-Unit Contract Fiscal Management -Collaboration with Leahy-IFP’s Finance and Procurement teams to successfully provide administrative support to our National Accounts Team. empowerment customers vation resource

37. The New World- The Sales and Marketing Department • Manage Ticketing System – Provide accurate and timely information to our Dispensed Beverage and Quality Team to satisfy the needs of our customers • Social Media Management – Build Leahy-IFP and it’s brands through operator interaction. empowerment customers vation resource

38. The Sales and Marketing Department empowerment customers vation resource

39. Tim Leahy Chairman Greg Lojkutz Vice-Chairman 2011 Org Chart Mike Leahy President Tom Banner GM & COO Leahy/IFP Marc Justinak Director National Accts Todd Fujimoto Dir, Tech Services John Ferraro National Director of Sales George Moore Director Disp Beverage David Clarine Sr. Tech Manager Scott Yom Controller John Saladino Director of Operations Darnell Ross National Accts Sales Mgr Ryan Coombes QC Food Technologist David Campbell Dir Sales West John Penty Dir Sales East Jim Beahm Sales Consultant Joe Arends Marketing Mgr Chris Dixon Supply Chain Mgr Marc Zielinski Supply Chain Mgr Mike Lojkutz Nat Acct Sales LG- District Mgr Nat Acct Sales Sam Welborn District Mgr Andy Childress District Mgr David Scelfo District Mgr Gina Engle District Mgr Brenda Delgado Order Management & Logistics Spc Paul Ratermann Sales Consultant Ed Wesner Warehouseman Pete Velasez Warehouseman Dianne Schmidt Disp Bev Sales Sup Halyna Lowenbein AR Nancy Gray AR Eric. Ortega AP Scot Niklos Supply Chain Sup Spc Matt John Sales & Marketing Spc Eric DeChenne Sales and Marketing Spc Scott Schultz Order Mng Spc Betsy Johnson Order Mng Spc