This document summarizes the growing demand for responsibly sourced food from consumers and companies. It outlines increasing consumer concern for animal welfare and preference for foods from healthier production systems. The document also notes that companies are seeking guidance on responsibly sourcing foods to gain a competitive advantage and avoid criticism from NGOs. It provides examples of companies committing to cage-free eggs and gestation crate-free pork to meet these demands.

1. Janice Neitzel
Principal & Founder
Sustainable Solutions Group
www.SustSolutions.com

2. 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

3. Services
Animal Welfare NGO Relationship
Advisement Management
Responsible
Sourcing Roadmap
Responsible CSR Messaging
Leadership Training

4. 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.

5. Responsible Sourcing Roadmap
Copyright Sustainable Solutions Group 2012

6. Team
Janice Neitzel, MBA, Principal & Founder
Guides top food industry decision-makers to plan and implement
responsible sourcing improvements and CSR messaging.
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.
Carter McRee, MBA, Principal
With a PhD in Biomedical Sciences, uses a scientific approach to guide
clients to source from healthier food production systems.
Debbie Zapatka, Director of Graphic Design
25 years graphic design for CVS/Caremark, SkyMall, PetSmart, Intel,
Leo Burnett,, Ogilvy, and more.

7. Testimonials
Harris Teeter, Brad Graham, Sonic Corp., Nancy Robertson,
GVP Purchasing SVP, Franchise HR Development
“Janice is a true professional! She has
provided timely detailed direction and is a “Your working with us has been so thought-
results driven expert that consistently provoking and helpful. Your help in
delivers a high level of detailed knowledge facilitating discussion on these (animal
on tough industry issues. “ welfare ) issues at Sonic has been huge.”
Unilever, Kevin Wyderka,
Ruby Tuesday, Rick Johnson,
Systems Director
SVP Purchasing
“Janice demonstrates creativity and
“It has been a privilege to work with you.
balances reality. She has excellent
We admire your dedication to the welfare
facilitation skills to manage groups
of animals.”
effectively and bring them to
consensus.”

8. Demand for Grass-fed / Organic
2012 Hartman Group Report 1
Cites grass-fed meat, cage-free eggs, and
heirloom marbled pork as growing US trends.
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
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/

9. 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
2010 Context Marketing Study 2
70% of US consumers are willing to
pay more for “ethical” foods and
91% include animal welfare
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

10. 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.
2010 Australia 2
After mandatory egg labeling of caged or un-caged
cage free eggs sales increased 90%
caged eggs sales fell 50%
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

11. State Regulations Forthcoming
Gestation Crate Bans
California, Florida, Arizona,
Maine, Oregon, Colorado,
Michigan, Ohio
Battery Cage Bans
California, Michigan

12. 2011 US Farmers & Ranchers
Alliance Study
► 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
Source:http://www.feedstuffsfoodlink.com/ME2/dirmod.asp?sid=&nm=&type=news&mod=
News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=175440CE19204715
9190C24583EED5B7

13. 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.
Image Source: http://kunc.org/post/ex-foes-stage-coop-detat-egg-laying-chickens
Source: http://www.meatingplace.com/MembersOnly/webNews/details.aspx?item=30291

14. Producers Need Support
for Transitions
► Conversion Strategy
► Change Management
► Timeline Management
► Financing
► Project Management of Entire Transition

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

16. US Animal Welfare Market Leaders
► 2010 Stock up 157%
 “Food with Integrity”
► 2010 Stock up 72%
 Global Animal Partnership
5-step Program

17. Sample Companies Sourcing
Higher Welfare Foods

18. 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.”

19. Commitments to 100% Cage-Free
Costco,
Trader
Joe’s, and
Walmart,
Subway plans to
have
switch 100 % of
committed
its eggs to cage-
all private
free and has
label eggs
already done so
to be
in the UK.
cage-free

20. 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.”

21. 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.”

22. Increased Supply Needed due to
Consumer Demand and Transparency
Level 4
Level 3
Leaders
Planning even with
Comprehensive
supply lacking
Approach
Level 1 Level 2
Business as Usual Taking Some Steps