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Capabilities Overview CAPABILITIES OVERVIEW Updated October 2013 1 2 3 THE COSTANZO’S BAKERY ADVANTAGE OUR HERITAGE In 1933, an ambitious Angelo Costanzo started a small western New York bakery along the Niagara River known as Costanzo's Bread. He delivered Italian breads to mom and pop grocery stores throughout Buffalo, New York. The business continued to grow, and with the advent of the supermarket concept you could now find Buffalo’s favorite “Costanzo’s Bread” stocked in every store. Over the years Costanzo’s became a trusted brand throughout the Buffalo market. In the 70’s, Angelo Sr. saw the growth potential of submarine shops and pizzerias and refocused the company on servicing local foodservice establishments. Because of the reputation for quality built through the company’s retail sales, Costanzo’s was widely accepted in foodservice and quickly became the desired roll for Buffalo’s leading sub shops. At the same time, Angelo began grooming Angelo Jr. and his brother to take over and expand the family business. In 1977, Angelo Jr. and his brother took over the bakery and moved into a new, larger facility to support their continued growth. As local sales increased, the natural progression was to expand into the national marketplace by developing a line of frozen, fully baked sub rolls and round rolls. This was the beginning of Costanzo’s Bakery, Inc. Over the next several years, Angelo also groomed his sons to take over the business; and in 2000, the third generation was at the helm supported by a team of experienced bakery industry professionals and vendor partners. Today, Costanzo’s Bakery, Inc. operates a modern, AIB-certified facility in Cheektowaga, New York featuring a popular local bakery outlet and submarine shop on-site. Our company-owned fleet provides fresh DSD delivery service to leading foodservice and retail operators throughout the Buffalo/Niagara region where the phrase “Served on a Costanzo’s Roll” is a common sight on local menu boards. Driven by our humble roots in Buffalo, our growing national sales team and broker network has significantly expanded our frozen foodservice and retail sales throughout North America. As the company approaches its 80th anniversary, we are committed to maintaining the promise made by Angelo Costanzo, Sr. back in 1933: “We will deliver the highest quality, most consistent product to our customers every day, every time.” 5 THE COSTANZO’S ADVANTAGE Modern 100,000 sq. ft. Facility • Major Expansion Completed in 2011 • Significant Available Growth Capacity Branded, Private Brand and Co-Pack Capabilities Dual Plant Redundancy Corporate Commitment to Food Safety • AIB Superior rating • GFSI certification underway - target completion in Q4 2013 Committed Ownership and Solid Financial Position • 80 years of success in a highly competitive industry • Continued reinvestment in people and technology In-House R&D Department • Turnkey product and packaging development • Corporate chef support to drive innovation and unique menu concepts • Extensive customization options available (see slide) o Signature products o Seasonal items/LTO’s o Private label options An 80 Year Western New York Tradition – A “Must Have” Brand in Retail and Food Service 6 2011 EXPANSION PROJECT Gemini Makeup Line Automated Pan Hotel 80’ Tunnel Oven Robotic Packing 7 KEY FINDINGS – 2012 MINTEL SANDWICHES, SUBS AND WRAPS INDUSTRY REPORT SUMMARY: Sandwiches, subs and wraps are a hot category (+12.9% 2007-2011) with an additional 24.6% category growth projected through 2017. Sandwich shops have successfully expanded product offerings focused largely around an assortment of value-priced, “better for you” and premium options, but continued innovation will be required to stay ahead of competing options. KEY MARKET DRIVERS: • Promotional pricing and bundles to draw in value-oriented consumers • Seasonal items and LTO’s to drive additional traffic and excitement • Innovation that provides operator differentiation and high perceived consumer value o Drivers of higher operator pricing include: premium customization options, “better for you” products, seasonal ingredients and LTO’s • Key trends driving category growth: trading bread for sub rolls and breakfast sandwiches (+21%) • Top nutritional claims include nonfat, all natural, Grade A and gluten-free • Consumers sampled listed convenience of location and value as top two decision criteria for sandwich shop selection • Majority of consumers purchase sandwiches “to go” for consumption at home or work 8 OUR MARKET POSITIONING – “EVERYDAY ARTISAN” LOW PRICE/QUALITY PARADIGM HIGH COMMERCIAL THE “MAGIC MIDDLE” ARTISAN/ARTISAN BREAD STYLE Costanzo’s Unique Positioning Offers: • Ability to trade up lower-end customers (an “affordable indulgence”) • Options that offer higher-end users a cost savings while still providing excellent quality (e.g. new Brioche line) • Same level of resources you would find at higher-end manufacturers (culinary support, signature products) • Great overall value proposition for the money (retail and food service) 9 WE MAKE THE BEST… BECAUSE WE USE THE BEST Costanzo’s Bakery knows the Quality Products that Restaurants demand, because WE USE our products in our Costanzo’s Deli every day! 10 MADE FOR FOODSERVICE PRODUCTS The Costanzo’s Deli and Retail store has been operating at our plant location for almost 50 years. 7 days a week Costanzo’s Deli serves authentic New York Hoagies, Hamburgers, and Sandwiches to hungry customers. Customers just like the ones your units service every day. • Customer Expectations • Product Cost • Back of Kitchen Ease of Use. • Waste & Spoilage “If our products have to protect 80 years of history, shouldn’t you expect the same?” – Mike Costanzo 11 OUR THREE UNIQUE BAKING STYLES TRADITIONAL PAN HEARTH BAKED FLUTED PAN • Classic Costanzo’s • Baked directly on • Hybrid of pan and hearth crust and texture the oven deck baked styles • Consistent length • Hearty, corn dusted • Artisan-style appearance and shape crust and light • Crispier crust with a interior more open cell structure • Great for high • Wide variety of shines moisture fillings and cuts available • Widest roll option ITEM # PRODUCT DESCRIPTION UNIT UNITS/ BAGS/C FROZEN PRODUCT CAPABILITIESSIZE BAG ASE Pan Baked Submarine Rolls 5650 7" White Submarine Roll 2.7 oz. 6 12 5651 7" Wheat Submarine Roll 2.7 oz. 6 12 Our signature product, we offer a wide assortment of 5520 8" White Submarine Roll 3.7 oz. 6 8 fully-baked, sliced white and wheat submarine roll formats perfect for hot and cold menu applications. 5523 8" White Split Top Submarine Roll 3.7 oz. 6 8 Simply put.. a sub isn’t a sub unless it’s served on a 5521 8" Wheat Submarine Roll 3.7 oz. 6 8 signature Costanzo roll. 5524 8" Wheat Split Top Submarine Roll 3.7 oz. 6 8 5536 8" Whole Wheat Submarine Roll * 3.7 oz. 6 8 5533 8" Multigrain Submarine Roll 3.7 oz. 6 8 5600 9" White Sub Roll 4.6 oz. 6 12 5601 9" Wheat Sub Roll 4.6 oz. 6 12 5505 12" White Submarine Roll 6.0 oz. 6 6 5515 12" White Split Top Submarine Roll 6.0 oz. 6 6 5506 12" Wheat Submarine Roll 6.0 oz. 6 6 5516 12" Wheat Split Top Submarine Roll 6.0 oz. 6 6 5504 12" Whole Wheat Submarine Roll * 6.0 oz. 6 6 5489 12" Multigrain Submarine Roll 6.0 oz. 6 6 5610 15" White Submarine Roll 12 oz. 2 9 5611 15" Wheat Submarine Roll 12 oz. 2 9 5550 2 Foot Party Roll 32 oz. 1 1 13 FROZEN PRODUCT CAPABILITIES (con’t) ITEM PRODUCT DESCRIPTION UNIT UNITS/ BAGS/ CODE SIZE BAG CASE Pan Baked Sandwich Rolls 5558 Wheat Medium Sandwich Roll Split Top w/Oats 3.0 oz. 12 6 From classic Kaiser rolls, Sandwich Rolls and Burger Buns 5559 Medium Sandwich Roll Seeded 3.0 oz. 12 6 to our Split Top Oat, Potato and Multigrain offerings, Costanzo’s premium quality rolls are baked with 79 years 5560 Medium Sandwich Roll 3.0 oz. 12 6 of tradition in every bite. You’ll now find “Served on a 5561 Medium Sandwich Roll-Split Top 3.0 oz. 12 6 Costanzo’s roll” on a growing list of menu boards across 5562 Large Deluxe Sandwich Roll 3.7 oz. 12 6 the United States. 5563 Large Seeded Deluxe Sandwich Roll 3.7 oz. 12 6 5564 Large Deluxe Sandwich Roll Split Top 3.7 oz. 12 6 5565 Lg. Seeded Deluxe Sandwich Roll Split Top 3.7 oz. 12 6 5566 Lg. Deluxe Sandwich Roll Sesame Poppy 3.7 oz. 12 6 5567 Jumbo Hamburger Roll 3.7 oz. 12 8 5570 Medium Kaiser Roll 2.5 oz. 12 6 5571 Wheat Kaiser Roll 2.5 oz. 12 6 5579 Whole Wheat Kaiser Roll * 2.5 oz. 12 6 5572 Potato Sandwich Roll 2.5 oz. 12 6 5574 Multigrain Round Sandwich Roll 2.5 oz. 12 6 5578 Whole Grain Sandwich Roll * 3.0 oz. 12 6 14 FROZEN PRODUCT CAPABILITIES (con’t) NEW Rustic Sub and Sandwich Roll Program • Artisan quality at an affordable price featuring: Upscale appearance and mouth feel: • Hearty crust • Airy interior with a more open cell structure • Baguette quality with sub roll-like eating characteristics for broad consumer appeal Range of sizes available: 6” and 12” subs, variety of round roll sizes Baguette-style cuts with a distinctive shine 15 FROZEN PRODUCT CAPABILITIES (con’t) NEW! Premium Sandwich Rolls ITEM PRODUCT DESCRIPTION UNIT UNITS/ BAGS/ CODE SIZE BAG CASE Give your taste buds a special treat. Expand your menu offering and indulge your senses with our culinary-inspired, chef-formulated Costanzo’s everyday artisan rolls. 5750 Premium Sandwich Rolls 3.0 oz. 12 6 5751 Premium Sandwich Rolls Split Top 3.0 oz. 12 6 5752 Premium Sandwich Rolls Split Top Corn Dusted 3.0 oz.
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