1. 1
This Bar Saves Lives: A Model for Addressing Severe Acute Malnutrition
(Michelle Smith, Vanessa Villa, and Sabrina Angeli, Team 6)
Realizing the Problem: Malnourishment Comes to Light
More than 805 million people in the world do not have enough food to live a healthy active
life.1
The vast majority of the world’s hungry live in developing countries classifying 13.5 percent
of those populations as undernourished (see Exhibit 1). Sub-Saharan Africa has the highest
prevalence of hunger, with an increasing number of deceased children under five reaching 3.1
million every year due to poor nutrition.2
Rising food prices, food scarcity in areas of conflict, and
natural disasters diminish household access to appropriate and adequate food.3
Proper nutrition for children under 2 years of age is crucial to development and success in life.
The damage done to the physical body of a malnourished toddler is irreversible. Due to improper
development of neurological synapses and immune system, malnutrition is the leading cause of
disease in the world according to UN's Standing Committee on Nutrition (see Exhibit 2 to learn
about diet statistics and its’ role in malnutrition). 4
Hunger reduction calls for an integrated approach, requiring public and private investments to
raise agricultural productivity; better access to inputs, land, services, technologies and markets;
measures to promote rural development; social protection for the most vulnerable, including
strengthening their resilience to conflicts and natural disasters; and specific nutrition programs that
particularly address micronutrient deficiencies in mothers and children under five.5
A few years ago, Ryan Devlin and Todd Grinnell traveled to Africa on a humanitarian trip. This
astonishing information brought inspiration, determination and drive into two young actors’ and
soon to be entrepreneurs’ hearts. As they further studied the current situation of food scarcity in
the world, they also desired to understand nutrition and develop a business model capable of
feeding the malnourished populations in developing countries.6
Devlin and Grinnell, read several books about start-ups, two they took to appreciate most were
Paul Newman and A.E. Hotcher’s book, Shameless Exploitation in Pursuit of the Common Good,
1
FAO, IF, October 30, 2014.
AD and WFP, “The State of Food Insecurity in the World,” Strengthening the enabling environment for food
security and nutrition, Rome 2014.
2
World Food Programme, Hunger Statistics, October 30, 2014.
3
Richard Horton and Selina Lo, “Nutrition: A Quintessential Sustainable Development Goal,” The Lancet, August
2013.
4
Martin W. Bloem, “World Food Day: Progress and Challenges,” GAIN Health.
5
Richard Horton and Selina Lo, “Nutrition: A Quintessential Sustainable Development Goal,” The Lancet, August
2013.
6
Roger Thurow, “1,000 Days: The Period That Decides the Health and Wealth of the World,” The Atlantic, May 1,
2014.
2. 2
“a chronical of that pair’s creation of the Newman’s Own company as a cause-conscious pursuit;
and Blake Mycoskie’s Start Something That Matters. The information would soon influence the
realization of their business model.
How We Came To Be
In Liberia, they witnessed firsthand the incredible impact nutritional packets had in combating
that malnutrition. Those starving children sparked their creativity to think about solutions to this
problem and to improve the lives of millions of people that live under these extreme conditions in
developing countries. While they fully embraced the desire to combat malnutrition, they also
wanted to find a way to prevent it as well, along with raising awareness for their cause. The root
of the problem Devlin and Grinnell wanted to face was quite expansive. “The last piece of the
puzzle was a little bit more achievable,” said Grinnell.7
With hope and a sense of urgency, they embarked on a mission to develop a business model
that would allow them to create a specific nutrition program addressing the micronutrient
deficiencies in children under five. This Bar Saves Lives (TBSL) was thus born into a broad for-
profit idea, the one-for-one model helps customers and the business keep track of how many lives
were saved because of the venture; transparency could be easily illustrated through their giving
model. Publicized through Devlin and Grinnell’s celebrity affiliation helped to fundraise $30,000
in 2008, the initial capital raised to fund their endeavor8
. After several years of research and
development, 2013 brought Ravi Patel onboard to manage finance; he and Grinnell had shot a pilot
in the past, which is why the relationship existed. Patel acted with Kristen Bell in the show
Veronica Mars, which brought on Bell as an investor, advisor, and brand ambassador. Financing
for TBSL were through personal investments from the founders, the actors’ friends and networks
including Ben Goldhirsh, founder of GOOD Magazine. They reached out to these individuals and
others by presenting their business plan and allowing them to have a role in the movement, “[Patel
and Bell] were instrumental in the company’s first round of funding, investing one-third of the
overall $250,000.”9
They needed some assistance with creating a salable product and for this, they turned to JPG
Resources -- founded by food scientist Jeff Grogg who helped grow Kashi. The company consulted
with This Bar Saves Lives “in every operational aspect of our launch,” says Patel. Patel continues,
“They put us in touch with all their contacts in the snack business, and were able to lend their 25-
plus years of experience to every major decision,” Without them, says Devlin, “we would have
been bankrupt in six months.”10
TBSL provides resources from product sales to malnourished children in third world countries.
However, the needed establishment of partnerships was necessary to guarantee that these
supplemental bars reached their destination. While creating their product they simultaneously
7
This Bar Saves Lives, Our Cause, October 30, 2014.
8
Sarah Stankorb, CNN Money, Kristen Bell Invests. Now What?, July 28, 2014.
9
Sarah Stankorb, CNN Money, Kristen Bell Invests. Now What?, July 28, 2014.
10
Sarah Stankorb, CNN Money, Kristen Bell Invests. Now What?, July 28, 2014.
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reached out to three organizations willing to collaborate on the issue of severe acute malnutrition.
Edesia, Ananse Village, and Save the Children would sign contracts as giving partners to the cause
and solidify their position as pledged organizations to TBSL and the extinguishment of child
malnutrition. Each year, TBSL focuses on both prevention and treatment in these countries by
providing Plumpy’Nut® and Nutributter®, nutritionally balanced products to prevent growth
stunting and help children thrive. It is a one for one company; for every granola bar sold in one of
the stores the company has partnered with, a packet of nutrient dense food is sent to a child in need
via Save The Children and JPG Resources. In just their first six months of business, This Bar Saves
Lives had donated over 65,000 packets of life-saving food to children suffering from malnutrition.
As we were trying to come up with a way to help the millions of kids who are dying
because they simply don’t have enough to eat, we realized that like us, most people
want to help; they just don’t know how to. That’s when we decided to make it easy
for them; to empower them.11
Understanding the Industry
Social entrepreneurship and having an impact in the community, whether locally or abroad, are
becoming an expected part of many businesses. Customers are increasingly caring about what their
purchase is supporting, and how they themselves are making a difference through their consumer
power. Several companies in the same general market niche are employing their social impact
muscles within their communities.
KIND produces a similar product to This Bar Saves Lives. Their product is also organic, gluten
free and made in America. Their focus is on making the world a kinder place and with each
purchase, they are enabling acts of kindness. Thus far, 671,195 acts of kindness have been
completed and 850,000 people have been impacted.12
TrueBar by Bakery on Main is a company
that started mainly to support those with gluten dietary restrictions, and as such, they support
Celiac and Autism events in the community with product donations. 18 Rabbits, a company
founded in San Francisco donates 1% of its product and has donated roughly 18,840 bars locally
to support hungry children in the San Francisco area.13
The one competitor with a model somewhat close to TBSL’s is Project 7. While Project 7 is not
a one for one company, they do provide donations (50% of the profits) with each purchase made
to one of seven mission areas.14
Project 7′s mission is to ensure everyone around the globe has
access to fundamental human needs for a healthy life. They do this by making everyday products
that give back to seven areas for good around the globe. Project 7 uses profits from gum and mints
to support seven areas of doing good: Feed the Hungry, Heal the Sick, Hope for Peace, House the
Homeless, Quench the Thirsty, Teach Them Well, and Save the Earth.
11
This Bar Saves Lives, Blog-Todd, October 30, 2014.
12
KIND, About KIND, November 2, 2014.
13
18 Rabbits, Social Responsibility, November 2, 2014.
14
Project 7, November 2, 2014.
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TBSL, anticipates reaching revenue of about $1 million at the end of 2014, and its bars are
already available in Sprouts Farmers Markets, Whole Food Markets, and other various locations.15
This Bar Saves Lives operates in an increasingly crowded space, one that private equity firms have
been keen to profit from in recent years. Yet, their ability to stand out from others because of their
Hollywood status and high-profile work has provided an advantage in gaining sells, publicity, and
securing retail partnerships. Businesses would like to have stars included in their personal
advertisement, yet the cost is expensive. With TBSL, actors are working pro-bono to publicize
their product while advising consumers to visit the retail locations associated with their product.16
A mutual benefit for partners is included when it comes to This Bar Saves Lives, which assisted
Bell as she negotiated the partnership with Whole Foods Market in 2014 to expand retailers of
TBSL.17
In comparison with other companies that produce granola bars, TBSL has not reached the level
of success that they have. Exhibit 3 highlights the disparity between the unit sales of TBSL and
other industry leaders. However, TBSL is a fledgling company that has not yet reached profitable
margins, as all profits and deferred founder salaries have been rolled back into making their
business model work.
TBSL Organization
The start-up complements present networks currently addressing the severe acute malnutrition
that exists in the world. Addressing the issue is possible through these four entities; This Bar Saves
Lives, Edesia, Save the Children and Ananse Village.
TBSL creates three versions of a healthy snack bar with organic and fair-trade ingredients;
distributing only in America to 510 locations (Exhibit 4 demonstrates retail locations and market
size). TBSL costs $2-2.50 per bar (see Exhibit 5 for a comparison in price) and 40% of each bar’s
profit is given to Edesia for the production of Plumpy’Nut® and Nutributter®.18
It is here, where
TBSL compliments its social mission to create the funds necessary to get Plumpy’Nut® and
Nutributter® to the developing countries and children in need of essential nutrients. The seven-
member board of advisors are associated with various companies, including but not limited to
Kashi Company, GOOD Inc., Whole Foods Market, and Kiss My Face. TSBL’s labor force
consists of seven interns and a director of digital.
Another entity, Edesia Global Nutrition Solutions, is the only American manufacturer of
Plumpy’Nut®, a ready-to-use therapeutic food (RUTF). Devlin mentions the reasoning behind the
partnership, “Plumpy’Nut® was at the center of our concept so we went to great lengths to secure
15
Hillary Canada, The Wall Street Journal, Mars Bars: Snack Company Backed by Kristen Bell Seeks New Funds,
May 23, 2014.
16
Sarah Stankorb, CNN Money, Kristen Bell Invests. Now What?, July 28, 2014.
17
Suzanne Hall, “This Bar Saves Lives: A Day with the Founders of this Life-Changing Snack,” The Chalkboard,
January 10, 2014.
18
James O’Brien, “A Workplace Snack That Feeds Hungry Children,” Mashable, October 14, 2014.
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[the Edesia] partnership.”19
Grinnell and Devlin were able to visit Edesia in Rhode Island a couple
of times to explain their vision. “Fortunately Navyn [the Executive Director of Edesia], saw
something in us and helped facilitate the deal with the parent company of Plumpy’Nut® and
Nutributter®.”20
This is a nonprofit manufacturer of nutrient-rich, peanut-based RUTFs since
March 2010.21
On behalf of TBSL, Edesia has produced 6.19 tons of aid for distribution in Haiti,
India, and Africa. They work specifically from one location, Providence, RI, and focus on
providing RUTFs for at-risk populations through the “PlumpyField Network.” However, they
specifically produce for countries that lack the local capacity to produce RUTFs. They ensure a
steady production, meet demands, and have reliable supply when needed. A staff of 37 employees
work, “21 hours a day, 6 days a week to meet demands. They make enough Plumpy’Nut® to feed
50,000 children [in 24 hours].”22
Next, Save the Children fulfills the last obstacle for the cause, by directly distributing RUTFs
to those in need. Grinnell and Devlin after solidifying the crucial aspect of Plumpy’Nut®
manufactures, had to problem solve which organization would be able to deliver the packets of
life-saving food to those children that are most in need. “Save the Children was the logical choice,
since they operate in 120 countries and are pros at fighting severe acute malnutrition,”23
and has
directly affected 143 million children in 2013.24
Targeting children most in need of the
supplements with high-impact and low-cost care, Exhibit 6 illustrates their locations and services.
Save the Children directly trains and equips health care workers in the field to work next to doctors
to distribute the RUTFs as needed.25
The third entity is also responsible for supporting parents in
good nutrition and healthy behaviors. This component to the social mission ensures distribution is
just and ethical.
We thought that consumers would have peace of mind knowing that it is doctors
making the decisions about which children are in need. After being diagnosed with
severe acute malnutrition, doctors can send children home with three packages of
Plumpy’Nut® a day for seven weeks, a treatment that boasts a 90 percent recovery
rate. Home care with regular doctor visits also vastly reduces the cost of treatment
in areas where clinics are few and far between.26
Lastly, they brought on Ananse Village, a business for authentic African merchandise, to help
design the packaging for TBSL. “When we decided to add pattern to the designs, we reached out
19
Discover the World of Social Good, Q&A with Co-founder Ryan Devlin of This Bar Saves Lives, January 6, 2014.
20
Discover the World of Social Good, Q&A with Co-founder Ryan Devlin of This Bar Saves Lives, January 6, 2014.
21
Edesia, About Edesia, October 30, 2014.
22
NBC Nightly News interviews Edesia, Plumpy’Nut-Saving Lives Half A World Away, September 1, 2011.
23
Discover the World of Social Good, Q&A with Co-founder Ryan Devlin of This Bar Saves Lives, January 6, 2014.
24
Save the Children, “Results for Children,” 2013 Annual Review.
25
Jonathan Van Zytveld, “This Bar Saves Lives: New Bar from Grand Rapids Native Benefits Starving Children
Worldwide,” mLIVE, September 30, 2013.
26
Jonathan Van Zytveld, “This Bar Saves Lives: New Bar from Grand Rapids Native Benefits Starving Children
Worldwide,” mLIVE, September 30, 2013.
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to Ananse Village for their authentic African textile designs because they are a [company that]
gives back like us,” states Grinnell.27
This partner contributes a portion of their funds to their
African communities in education and medical care.
TBSL for 15 months has had the opportunity to develop a product, gain desirable partners, and
secure shelf space in nation-wide health stores. It took nearly about a year for these partnerships
to lock in place, and they find it was worth the time and effort to find committed, well-respected,
and dependable organizations that in fact have mentioned their lack of funding for RUTFs.
“Success will require global cooperation and leveraging support from the private sector. This will
foster development and provide funds needed for critical research in developing countries,” notes
PlumpyField Network for the Global Health Council Conference agenda in Washington, D.C.28
Further, the size of donation orders TBSL submits to Edesia, will be important in driving down
the supplement’s manufacturing costs.29
Additionally, Timmy Global Health, a newly
incorporated partner to the endeavor, is able to affect the children of Latin America through
services provided since 1997 (see Exhibit 7 for distribution details). Specifically in rural
Guatemala, where Nutributter® will help prevent malnutrition before it begins.30
The new
partnership between Timmy Global Health and TBSL is expected to increase impact in the Central
American regions.
TBSL Results
TBSL has accomplished a start-up company, philanthropic outreach, partnerships, increasing
sales, and low-cost marketing. A new launch of their product into Whole Foods and Sprouts stores
have increased their retailers to 510 from 262 this summer 2014 (See Exhibit 8). In addition to
their other retailers in small health food stores, restaurants, hotels, gyms, and coffee houses.
Collectively, TBSL and its partners have funded 315,130 life-saving and essential nutrient packets
equaling 2,101 lives since the last quarterly report.
A major factor contributing to the success of TBSL’s impact is the diversification of the title
“This Bar Saves Lives.” Products not associated with the bar, allow TBSL to access other not-so-
health-conscious Americans wishing to save lives. Ranging from This Shirt Saves Lives, This
Wristband Saves Lives, and This ‘Like’ Saves Lives among many others. Their variety of products
and selling locations have allowed companies to participate in the movement as well. Three
companies involved include Google, Omaze, and Levis, who engage employees by purchasing
TBSL for the snack room.31
In addition, schools and nonprofits join the effort to fight world hunger
and simultaneously fundraise for their own need. These cause-raising events include; This Letter
Saves Lives through The World Needs More Love Letters, booster programs in schools that
collaborate with Stop Hunger Now, and ‘Every 10’ with World Hunger Awareness Campaign.
27
The Dieline, This Bar Saves Lives, November 2, 2014.
28
Red Orbit, PlumpyField to Host Discussion on Fostering Innovation and Growth in Fight against Childhood
Malnutrition, June 14, 2011.
29
James O’Brien, “A Workplace Snack That Feeds Hungry Children,” Mashable, October 14, 2014.
30
This Bar Saves Lives, Blog-Timmy Global Health, October 30, 2014.
31
James O’Brien, “A Workplace Snack That Feeds Hungry Children,” Mashable, October 14, 2014.
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For TBSL founders, success correlates to lives saved, and so strives to increase collaboration
for the cause and fund raising to deliver more RUTFs. By collaborating with nine other
organizations, TBSL has increased public exposure and helped raise additional funds for
supplemental RUTFs by getting these organizations to match donations.
Furthermore, TBSL’s first relief response was for the natural disaster in the Philippines where
Tsunami Haiyan hit in 2013. Exhibit 9 shows the exact clinic that received the supplements and
how many children were treated. A shipment of 45,000 Plumpy’Nut® bars were donated to support
the relief efforts geared toward children facing malnutrition. “That’s about 5 tons of Plumpy’Nut®;
enough to help save the lives of 300 children.”32
Save the Children and TBSL are ensuring similar
relief packages are on standby to respond to future disasters. The actors turned social entrepreneurs
have established their mission to face malnutrition in developing countries by solidifying their
fight against world hunger, an innovative product line, various partnerships, and global impact.
What is Next?
The Strategy of the Buy One, Give One Model
The buy one, give one model seems to be working really well in today’s economic environment.
Nonetheless, many scholars believe the model is bound to reduce its popularity as more companies
start to use the same approach, losing the marketing appeal for the consumer. In an article written
by the Stanford Social Innovation Review, Christopher Marquis and Andrew Park stated that
“much of the success of these [buy one, give one] pioneers stems from their novelty,” slashing the
differentiator effect as it becomes a mainstream model could hurt TBSL’s economic benefits.
Other issues concerning the “buy one, give one” model raised by the article relate to the social
impact of this type of giving, and the transparency and trust component of the model. Donations
usually treat symptoms of a problem, and fail to address the root causes of those symptoms;
malnourishment in this case is caused by lack of education, economic resources and access to
nutritious foods.
It is important to note that TBSL must maintain its economic performance while innovating its
model to increase its social impact. The company must understand its limitations in order to be
sustainable in the long-run, and it might be a good positioning strategy to reduce the dependency
on the “buy one, give one” model, considering the concerns raised by Marquis and Park.
Transparency and trust are two components that TBSL must strive to create and maintain as the
business evolves while encouraging the same for its’ partners. Aligning with well-established
partners and communicating real stories within its marketing channels are the main brand builders
for TBSL, and it is crucial to keep transparency and trust as the core branding strategy as we think
about what is next.
TBSL is saving children that are on the verge of dying from malnutrition, but can they go further
to educate expecting mothers about adequate food consumption and the importance of
breastfeeding? Are there other avenues that TBSL can approach to move up from “symptom” to
32
This Bar Saves Lives, Blog-Saving Lives In The Philippines, October 30, 2014.
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“root cause”? Existing partnerships allow TBSL to impact many lives, but can they search for new
partnerships that would help them address the root of the malnutrition in the world, while
maintaining the same level of trust and transparency?
Product Development
This Bar Saves Lives has achieved a tremendous impact through its innovative business model
and collaborative partnerships. The company has seen its potential and has developed new product
lines (T-Shirts, bracelets, necklaces and gift cards) in order to increase its impact on malnourished
children across the world. These new products are not related to the food industry, but still relate
to the core mission the company pursues: saving lives. Through their partnership with Ananse
Village, founders Devlin, Grinnell and Patel have demonstrated their commitment to economic
development. On the TBSL website, they market the crafts made by this African village, and
ensure that part of the profits are dedicated to medical care and educational opportunities for the
artisan’s communities.
Should Devlin, Grinnell and Patel be thinking about the next step in product development to
foster economic development in developing countries? In which ways can TBSL integrate
economic development within its product development and create prosperity amongst the
communities it has already aided through the Save the Children network?
Measuring Impact
Many companies in the world have difficulties measuring the size of their impact and expressing
those numbers to consumers. TBSL can measure its impact through the amount of money donated
to Edesia. In turn, Edesia will manufacture the Plumpy’Nut® and Nutributter® packages for
malnourished children using the capital transferred from the sales of TBSL products. Edesia has
control over how many packages it sends to Save the Children organization and they manage the
deliveries, through medical doctors that ensure the need for the nutritious package. Save the
Children has the control over the actual number of children impacted by the program.
Although, lives saved are calculated in respect to donated capital, how many children in fact
were saved using TBSL’s donated capital? Does Save the Children have the ability to measure
impact of TBSL’s influence? Can Ananse Village, a textile manufacture of African merchandise,
learn to display their portions donated, locations reached, and impact made? Should TBSL
encourage partners to be equal in transparency and effective metrics? How can TBSL use
technology to bridge its partners and communicate efforts and achievements throughout these
organizations? What are some of the benefits that would arise from this cross-collaboration
between the parties involved?
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Exhibit 1 A Global Perspective of the Location and Severity of Malnutrition
Source: United Nations Statistics, 2013
10. 10
Exhibit 2 Ethiopian Diet and Nutritional Facts
Source: Save the Children and A Life Free From Hunger: Tackling Child Malnutrition, 2012
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Exhibit 3 Unit Sales of Various Granola-Bar Brands
Granola-Bar Brands Unit sales
(millions)
C-store sales, 52 weeks ending Dec. 29, 2013
Nature Valley 48.6
Nature Valley Sweet & Salty Nut 28.0
Sunbelt 26.2
Nature Valley Chewy Trail Mix 8.8
Quaker Big Chewy 2.9
TBSL sales (added separately) .69
Source: IRi and CSPnet.com, 2014
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Exhibit 4 Price Comparison of Fruit and Nut Granola Bars
KIND Fruit and Nut
(12 ct * 1.5oz)
$12.00
Nature Valley Fruit and Nut
(12 ct * 1.5oz)
$4.98
This Bar Saves Lives Fruit and Nut
(12 ct * 1.5oz)
$26.65
Source: Whole Foods Market, price comparison done October 29, 2014
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Exhibit 5 Volume by Type of Retailer
Type of Retailer # of vendors Percentage
Bookstores 5 1.04%
Restaurants 7 1.45%
Hotels 8 1.65%
Coffee Shops 14 2.90%
Others 27 5.29%
Gyms 65 13.46%
Grocery Stores 384 79.50%
Totals 510 100.00%
Source: Case writers, TBSL online store locator.
14. 14
Exhibit 6 Save the Children; Where They Work and What Programs They Work in
Source: Save the Children, 2013 Annual Review
15. 15
Exhibit 7 Distribution of This Bar Saves Lives
Source: Case writers, TBSL.
This Bar
Saves Lives
Delivery
point/Retailers
TBSL
/Distributor
Online /Phone
orders
Edesia
Save the
Children
Timmy Global Health
(new partner-American)
Haiti India Africa Guatemala
(tentative)
Local Health Clinics
Emergency
Response
16. 16
Exhibit 8 Quarterly report (91 or 92 days) of TBSL since July 2013-October 2014
Source: Case writers and This Bar Saves Lives
Report
Month/Year
Online
customers
Retail
Locations
Bars sold
Per
Quarter
Plumpy’
Nut
Nutributter Total
lives
saved
Total
Packets
Donated
Oct/2013 677 49 32,450 24,338 8,112 173 32,450
Jan/2014 1,098 156 37,573 28,180 9,393 454 70,023
Apr/2014 1,270 172 20,479 15,359 5,120 603 90,502
July/2014 1,407 262 122,880 92,160 30,720 1,423 213,382
Oct/2014 1,889 510 101,748 n/a n/a 2,101 315,130
17. 17
Exhibit 9 Locations in the Philippines where Plumpy’Nut® was distributed for relief efforts after
Tsunami Haiyan.
Source: This Bar Saves Lives Website