Navigator Newsletter August 2016

Food & Dietary Supplies The Experienced Leader in Group Purchasing • Produce Alliance > • Smucker's > A monthly newsletter to keep you informed. Thank you for being a valued member of Navigator Group Purchasing, Inc. We are the experienced leader in healthcare and hospitality purchasing services offering you Full Transparency Reporting, Vendor Flexibility, and Realized Savings. Medical Products & Services Navigator is your resource for spend management. • ConvaTec > We are here to help you maximize savings • United Lab > opportunities and choice with the industry's top vendors and manufacturers.

Our goal is to keep you informed on contract updates and promotions from our preferred vendor partners as well as industry news. Business Products & Services Please contact your Navigator • Phoenix Textile > Account Representative for more information. • Sherwin-Williams > Visit Our Website • Shred-it > Find out how a Navigator membership can work for you.

Call us today! 1-800-642-3020 Industry News • Foodbuy Reports: - Member Advantage > - Pricewatch > - Produce Market Advisory > - Inflation Q2 • Upcoming Events PA SERVICES

FOOD SAFETY & QUALITY ASSURANCE CENTRAL PROCUREMENT SERVICES At Produce Alliance, and quality assurance is not Through our 4+ billion network our dedicated & just our management initiative, it is our way of life. From the experienced procurement arm manages price, grower farm to your customer’s plate, our dedication to food safety is contract compliance, quality & logistics daily. paramount to the success of Produce Alliance and its partners. MULTI – LAYERED CUSTOMER SUPPORT TEAM CULINARY • Our in-house IT team comprised of 13 web/app Whether it is providing healthier options, increasing developers, digital data integration specialists and efficiencies, identifying new items for overall cost savings, or unique software solutions providers implementing the most cutting edge produce items, the • A Designated Customer Account Manager to handle Produce Alliance culinary team works closely with your R&D, the day to day Executive Chef and purchasing to find the best fit. Additionally, • We provide start to finish rollout management, our corporate chef, Stephanie Goldfarb, is able to assist you ongoing delivery & quality monitoring, full circle on menu ideas and current trends. communication, and more! • The PA Team is available 24/7 in an emergency DSSI + PA INTEGRATION situation where your locations are given priority • DSSI links Senior Living communities to their unique attention supply chains – PA is the only produce specialty company that SERVICE SUPPORT & INFRASTRUCTURE has full integration with DSSI. • Safety net of PA Approved Suppliers/Consolidators – PA has nationwide capabilities covering the • Added Deliveries/Urgent Replacements radius of all Senior Living locations. • Cloud Based Portal for Submission • The relationship with DSSI + PA will allow for better flow and efficiencies through the supply chain. • Centralized Billing Post Recovery

CUSTOM DIGITAL SUITE OF TECHNOLOGY SOLUTIONS

PA PLATFORM is the digital foundation that provides PA PANTRY introduces cutting edge digital and mobile traceability, transparency and technology throughout the technology for your kitchen managers and local operators. We supply chain. This visibility allows us to provide a multitude provide your team with custom QA submissions to streamline of custom data services throughout the chain to streamline action/resolution, real time access to custom specifications, everything from accounting to store compliance. Our storage/handling tools, online ordering, commodity market custom integration continues to evolve to meet our updates and LTO/new product announcements. customers’ ever growing needs.

PA PIPELINE features a custom cloud based management resource hub that provides your corporate purchasing team with executive level insight to custom reporting, market alerts, live product recalls and more.

Roy Barrera, Business Development Director Office: (615) 514.7804 Cell: (615) 495.5645 [email protected] www.producealliance.com < MAIN With A Name Like Smucker’s, It Has To Be Good…

For more than 115 years, Smucker’s has been helping make family meals more memorable. It all started in 1897 when Jerome Monroe Smucker pressed cider from his mill in Orrville, Ohio and, shortly after, sold his first jar of apple butter from the back of a horse-drawn wagon. Jerome personally inspected and approved each jar, in which he put his signature on. Today, you can still see his signature of quality assured on products manufactured today, being etched on every jar.

Fast forward to 2016, Smucker is a leading marketer and manufacturer of branded consumer food and beverage products and pet food and pet snacks in North America with annual net sales of approximately $8 billion. The Company remains rooted in the Basic Beliefs of Quality, People, Ethics,Growth, and Independence established by its founder and namesake more than a century ago. Although publicly traded, Smuckers is still a family business, with the 5th generation leading the organization.

When people think of Smucker’s, they immediately think of Jams and Jellies. Did you know that Smucker’s is the largest Coffee manufacturer in the world? Smucker’s offers over 300 contracted Beverage items, consisting of traditional Roast and Ground and Liquid Concentrates with equipment and service being inclusive. Bring the Country’s #1 brand, Folgers® into your Foodservice operation giving your customers a brand their families have trusted for generations.

Our Food contract offers over 350 of J.M.Smucker branded food items including Bulk and Portion Controls Jams, Jellies and Preserves under the brands of Smucker’s and Dickinson’s, with additional Portion Control items under the Crosse and Blackwell brand and our recently launched Smucker’s Naturals®. Our contract is rounded out with Sugar In The Raw®, Stevia In The Raw®, Crisco® and Jif® items.

For more information regarding our Brands and Products, please visit www.smuckerfoodservice.com or feel free to contact our J.M. Smucker National Account Manager, Gerri Okinski at [email protected] or 312-231-9552.

< MAIN Dear Navigator Member:

Navigator is pleased to announce a new contract with ConvaTec for their full line of Advanced Wound Care, Skin Care and Ostomy products. This contract is only available to Skilled Nursing Facilities. To see if your facility qualifies, please contact ConvaTec directly at 1-800-422-8811 or through your local ConvaTec representative. All members must complete a Letter of Commitment to participate in this contract.

ConvaTec Features:

 Full line of ostomy products featuring Natura™ flanges and pouches  A wide range of AQUACEL® and DuoDERM® Advanced Wound Care products  Aloe Vesta® and Sensi-Care® Skin Care products designed for routine preventive care, and to cleanse, moisturize and protect

Please visit www.convatec.com for more information, or contact your local ConvaTec representative.

To speak with your Navigator Account Representative, please call 1-800-642-3020.

Thank you,

Navigator Contracts Department

**Reference to any device, product, service, process, or other information, by trade name, trademark, manufacturer, supplier or otherwise do not constitute or imply endorsement, sponsorship or recommendation by MHA. MHA makes no representations as to the quality, effectiveness, suitability or appropriateness of any such device, product, services, process or other information. The user assumes all responsibility for the use of any device, products, service process or other information mentioned herein. Under no circumstances, including negligence, shall MHA be liable for any direct, indirect, incidental, special or consequential damages, or lost profits, that result from the use (or inability to use) any such device, product, service, process or other information.

Navigator Group Purchasing – August 2016 Newsletter Page 1 of 1

< MAIN Why just control odors when you can have an aromatherapy experience at the same time?

United’s Aromatherapy Spa and Aromatherapy Spa Gels will bring that experience to you. Used together, the Aromatherapy Spa and the gels will treat an area up to 600 – 700 square feet. You can select from either our signature Fresh Air™ Peppermint or Focus fragrances; both are formulated with 100% pure essential oils. They will increase alertness, improve memory, focus, and more. As a Navigator member, you can experience this with a 30% discount on your orders.

To quickly start controlling odors with this system, order United’s Aromatherapy Spa Gel Diffuser System Pack. This package includes the A469 Aromatherapy Spa Diffuser System and 4 of the United 469 Aromatherapy Spa Gel cups. For the Fresh Air™ Peppermint order item 469PPK. For the unique Focus fragrance order item 469FPK.

• Contract number: #NAV-UNL001E • Navigator Member Discount 30%

To learn more about this offer from United Laboratories, please contact Dana Killmer at (630) 377-0900 or [email protected].

< MAIN The Phoenix Way is Your Way Design Services At Phoenix Textile, we have interior designers on staff who are experts in their field and have the style and experience to handle any project.

Privacy Curtains We offer a full selection on styles and fabrics from which to chose and offer nationwide professional installation services.

Decorative Bedding We offer a variety of decorative top of bed options including coordinating bed spreads and throws, pillow shams, and scarves in an array of colors and textures.

Available on the MHA, Navigator and MEO Group Contracts Blankets and Spreads I Bringing together the right combination of strength and AIII-IJ.. ��<2_.A: ·: - �MEDGROUP.tl' bu11t>011..!S..1Tk•.£n1....ia_.,,.,..,1� ·-.- ,- a,, , durability to create a comprehensive line of healthcare blankets and bedspreads that residents, care partners, and caregivers will love. Since 1983, Phoenix Textile has worked with long-term care, acute Linens and Terry care, and institutional facilities We offer an wide range of blankets, sheets, towels, pillows, across the country to promote incontinence care products, and much more all designed to nurturing and healing environments. look great and perform well in hard-use environments. Our customers count on us for products that support the way they Microfiber Products work - and their bottom line. Our microfiber line consists of high quality, reusable micro denier towels, mops, and accessory products designed to Diversity Supplier remove dirt and bacteria from surfaces for an exceptional Contract Manufacturer level of clean. Contractor Pricing Linen Management Uniforms and Apparel Phoenix Textile has been a trusted source for quality For additional information please uniforms and career apparel for over 30 years because we contact your Phoenix representative: know style, fit, and value are important to our customers. Elliot Goldfarb, CLLM Director of Corporate and National Patient Apparel Accounts Available in multiple material options, styles, and prints; (877) 627-4875 our patient apparel collections offer the right combination [email protected] of fit, color, closure, and cost for your facility.

www.phoenixtextile.com or 800.325.1440 < MAIN

< MAIN TURN TO SHERWIN-WILLIAMS FOR ALL YOUR HEALTHCARE NEEDS

TENDED CAR D NURSING FACILITIES • EX E FACILITIES • CLINICS • P TALS • SKILLE HYSICIANS’ • HOSPI OFFICES •

CUSTOMIZED SOLUTIONS. At Sherwin-Williams, we understand the challenges faced by professionals in the healthcare industry. And we’re here to help. From new construction to renovation to everyday maintenance, we have the products, expert advice, programs and services to meet your expectations for efficiency, aesthetics, performance, cost control and compliance. No other paint company can meet your unique needs like Sherwin-Williams.

SUPERIOR HIGH PERFORMANCE COATINGS. ENVIRONMENTALLY RESPONSIBLE OPTIONS. From interior walls and exterior surfaces to clean rooms, At Sherwin-Williams we’re ready with a wide range of products concrete or high-traffic floors, Sherwin-Williams has the that meet the most stringent environmental regulations. solutions you need.

Whether your concerns center on durable surfaces that must withstand constant cleaning and decontamination, or maintaining a clean environment and limiting disruptions while promoting patient well being, we have the solutions that will keep you on time and on budget for a variety of environments.

ƒƒPatient rooms ƒƒAdministrative offices ƒƒDelivery rooms ƒƒIntensive care units ƒƒSurgical areas ƒƒNurseries ƒƒSpecialized therapy ƒƒEmergency rooms ƒƒPharmacies ƒƒRadiology ƒƒClassrooms ƒƒLaboratories ƒƒActivity rooms ƒƒKitchen/dining areas HEAVY DUTY FLOOR COATINGS. ArmorSeal® and FLOORING. Sherwin-Williams is the largest wholesale flooring General Polymers® floor finishes look great, comply with resource, with 130 floor covering facilities nationwide. We provide governmental standards and provide long term protection of a full assortment of carpets, ceramic, vinyl, tile, laminate and your assets in high traffic areas wood flooring. With our 24-hour turn and reliable quality such as: installation you can do it all with one call!

ƒƒFood prep ƒƒChemical storage ƒƒLaundry facilities ƒƒMechanical rooms

DECORATIVE FLOORING. Count on the Sherwin-Williams General Polymers® brand for all your terrazzo, ceramic carpet and decorative mosaic flooring. Innovative polymeric systems can be easily and successfully installed in a short period of time by certified contractors.

COLOR SERVICES. Color can help improve the patient’s physical and emotional well being when used properly in healthcare spaces. Our Healthcare specialist researches and understands the healing effects of color, from pediatrics to senior care. For qualified accounts, we can offer a wide range of support to your construction or renovation projects. Assistance with color selection, and coordination with interior finishes such as flooring, wallcovering, hard surfaces and fabrics are just some of the ways we can help your facility create a total healing environment. We can assist by: ƒƒMaking the color selection process easier ƒƒCreating color schemes and finishes to promote a healing environment ƒƒAllowing you to stay competitive in today’s healthcare market ƒƒImproving your assets while balancing function, aesthetics and economics

TOTAL VERTICAL INTEGRATION. QUALITY PRODUCTS. QUALITY PEOPLE. LEADING We own our own manufacturing and distribution facilities, as well BRAND. Nobody offers a better combination. Contact your as our own trucks and stores, which means our buying power and local Sherwin-Williams store or rep or call 800-524-5979 to resources ensure you get the best value. You’re also assured of have a representative contact you regarding specification complete consistency from coast to coast in our products, colors, recommendations, maintenance programs, problem solving, pricing and procedures. facility surveys or product demonstrations.

For 150 years Sherwin-Williams has been trusted for the highest quality products and exceptional service. Need an answer fast or a product now? Contact your Sherwin-Williams representative or call 1-800-524-5979 to have a representative contact you.

©2016 The Sherwin-Williams Company < MAIN Shred-it provides tailored document destruction services that allow MHA members to comply with legislation and ensure that the client, employee and confidential business information is kept secure at all times. Through our strict chain-of-custody processes, reliable on-time service and a global network of local service centers, Shred-it provides the most secure and efficient confidential information destruction service in the industry Document Shredding and Hard Drive/eMedia Destruction

A Shred-it document destruction solution will provide the following benefits:

• A consistent process, secure chain of custody and Certificate of Destruction

• Locked consoles and other devices • Responsive, discreet, security-screened and background checked local teams

• 100% of the paper we collect and shred is recycled into a variety of paper products.

Description Auto Service One Time Service (Client Filled) One Time Media/Non-paper Destruction 32 Gal Standard Console Shred-it Blue Bag Hard Drive Destruction 65 Gallon Tote Copy Paper/Banker Box (1.2 cu ft.) Mixed Media/Plastics 95 Gallon Tote File Box (2.4-3.0 cu ft.)

Definitions:

Auto Service: Automatic is “regularly scheduled” service automatically calculated and scheduled by Shred-it. Schedule options include 1. Every Day 2. Every Week 3. Every two (2) Weeks 4. Every four (4) Weeks 5. Every eight (8) Weeks

Purge/Clean Out Defined to include special appointments for major clean out of records storage areas or to accommodate moves, closures, “end of retention cycle” activities, etc. Schedules are subject to lead-times in effect at the time of service request.

Hard Drive Destruction Physical destruction of hard drive media, removed by the customer and presented to Shred-it in boxes, bags or totes. Hard Drive destruction may be performed on site, depending upon the availability of mobile equipment but Shred-it reserves the right to destroy Hard Drives “off-site” at our nearest secure facility.

We have secure facilities throughout North America, so servicing your branches with a single, unified policy presents no problem for us. If you are interested in a “one time service” or feel your needs might require a regularly scheduled automatic visit, we would be very happy to accommodate you.

To sign up for our National Account services, call us at 877-450-6287 Ext 1 or

Email: [email protected]

< MAIN member August 2016 advantage

Enhanced Snack Contract scoop up smiles with improved ice cream contracts

Improved microfiltration oil program

Copyright © 2016 (Foodbuy). All rights reserved. 160722 Program Announcements The Filta Group Contract Extension Foodbuy is proud to announce a new program with The Filta Group, a mobile on-site service that provides the micro-filtration of cooking oil and the vacuum based cleaning of deep fryers. Take away your staff’s responsibility for cleaning the fryers and allow trained Filta professionals to handle the task and to provide the following benefits: 1. Improved Safety 2. Reduce Cost of Goods and Labor 3. Consistent Food Quality 4. Convenient with No Down Time 5. Mitigate Risk - Reduced Liability

Kitchen Solutions

Program Details Please contact your account manager for additional details and information about these programs.

Contract Term August 2016 – April 2020 Program Type Deviated price with fixed volume allowance per case Price Change Frequency Annually Categories/Subcategories Complete cooking oil management Covered

Member Advantage - August 2016 2 Program Announcements Wells Blue Bunny Contract Extension Foodbuy is pleased to announce a contract extension with Wells Blue Bunny for ice cream. Our new program offers improved coverage on 300+ items including bulk ice cream, individual- serve cups, and novelties. Wells is the largest privately held, family-owned ice cream and frozen treat manufacturer in the . They produce more than 150 million gallons of ice cream a year, including its signature brand, Blue Bunny® and the iconic Bomb Pop®. Wells also manufactures licensed frozen treat brands including Weight Watchers® frozen novelties. Serve up your favorite flavors today.

So Hoppin’ Good

Program Details Please contact your account manager for additional details and information about these programs.

Contract Term August 2016 – December 2018 Program Type Manufacturer list price with percent volume allowance per case Price Change Frequency Annual Categories/Subcategories Ice Cream – bulk, cups, novelties Covered

Member Advantage - August 2016 3 Program Announcements Nestlé Dreyer’s Contract Extension

Foodbuy is pleased to offer an improved program for premium ice cream with Nestlé Dreyer’s whose renowned brands include Haagen Dazs, Dreyer’s and Edy’s. For nearly a century, inspiring a smile has been Nestlé Dreyer’s goal. With 300+ patron-pleasing flavors in a variety of formats from bulk ice cream to individual-serve cups to novelties covered in our new contract - there’s something to really smile about! In addition, Nestlé is removing artificial ingredients from its six iconic brands including Edy’s Häagen-Dazs, Outshine, Skinny Cow, Nestlé and Drumstick. The newest changes span more than 100 products with examples including the removal of artificial colors and flavors, high fructose corn syrup and GMO ingredients. Add ice cream to your menu today and scoop up the smiles.

Good Food, Good Life

Program Details Please contact your account manager for additional details and information about these programs.

Contract Date and Term August 2016 – December 2019 Program Type Deviated price with percent volume allowance per case Price Change Frequency Annually

Categories/Subcategories Ice cream – bulk, cups, novelties, frozen Covered yogurt soft serve

Member Advantage - August 2016 4 Program Announcements Tropical Fruit and Nut Contract Extension Foodbuy is pleased to offer an improved program its contract with Tropical Fruit and Nut, a manufacturer of bulk and packaged snacks and specialty foods including snack mixes, dried fruit, nuts, seeds, and candies. Tropical Fruit and Nut also offers the convenience of product delivered directly to your door thanks to its FedEx partnership. Elevate your patrons snack experience by offering varieties of more than 60 unique snack mix blends or choose from over 45 different dried fruits including three blends. Have a rack to fill? Tropical offers product in bags, resealable cups, and plastic container cubes. Stock up today to take advantage of in-between meal cravings!

Go Nuts for Snacks

Program Details Please contact your account manager for additional details and information about these programs.

Contract Term September 2016 – December 2018 Program Type Deviated pricing with fixed volume allowance per case Price Change Frequency N/A Categories/Subcategories Nuts and Snacks Covered

Member Advantage - August 2016 5 Program Announcements Wholesome Harvest Contract Extension

Foodbuy is excited to announce an improved program on Thomas’ brand English muffins. The Thomas’ brand dates back to 1880 when Samuel Bath Thomas created his original English muffin in New York City using a secret process that included griddle baking to create a Nooks and Crannies English muffin. Today, Thomas’® sells the No. 1 English muffin in the U.S.

Beloved Brands

Program Details Please contact your account manager for additional details and information about these programs.

Contract Term August 2016 – June 2019 Program Type Deviated price with fixed volume allowance per case Price Change Frequency Annual Categories/Subcategories Frozen English Muffins Covered

Member Advantage - August 2016 6 Price Watch Price Watch Effective August Price Increases Below are program highlights that have an Solutions impact on pricing or market trends. Please use this information to support optimal menu up 3-4% choices for the upcoming month. Ground is up due to strong export demand for beef trimmings as well as strong seasonal demand.

Great Lakes and Land O’ Lakes 7-8% Cheese prices are increasing across the board on rising block and barrel markets due to strong retail and export demand.

Land O’ Lakes and Grassland up 6-8% Butter pricing increasing 6-8% on rising butter markets due to pre-holiday inventory builds Providing driving demand. you value Sara Lee up 6-8% Price Decreases Beef franks are up due to strong export demand for beef trimmings as well as strong Advance Pierre seasonal demand. down 1-2% Value Added Beef items like cooked burgers Smithfield and and philly cheesesteak are decreasing due up 6-8% to anticipated lower beef pricing in the next Bacon prices will be increasing 6-8% and quarter. hams will be increasing 4-6% due to strong retail demand.

Sara Lee Meats Tyson down 2-3% up 4-7% Breakfast sausage will decrease as pork Tenderpress and other chicken breast items will trim inventories are up as a by-product increase by 4-7% due to strong retail demand, of strong demand for bacon and ham. however, leg quarters should decrease by 2% as a by-product of higher white meat demand.

Member Advantage - August 2016 7 Program Updates Program Updates The information below outlines the most current program updates. Material changes include price changes that are greater than $1,000 per month in aggregate.

Monthly Impact Direction of Category Supplier Effective Reason Change Date for Change

Commodity Input Unfavorable Bacon, Ham Smithfield August 2016 Costs Grassland Dairy Commodity Input Unfavorable Butter August 2016 Products, Inc. Costs Change Is Commodity Input Between Unfavorable Butter, Cheese Land O’ Lakes August 2016 Costs 5% and 10% Commodity Input Unfavorable Can Liners Berry Plastics Liners August 2016 Costs Great Lakes Cheese Commodity Input Unfavorable Cheese August 2016 Company Costs

Commodity Input Favorable Cookies Aryzta, LLC August 2016 Costs Shrimp, Commodity Input Favorable High Liner Foods August 2016 Haddock Costs McCormick & Favorable Spices August 2016 Error Adjustment Company Value Added Commodity Input Favorable Advance Pierre August 2016 Beef Costs Sara Lee Meats - Commodity Input Unfavorable Beef Franks August 2016 Jimmy Dean Div. Costs Change is Less Commodity Input Unfavorable Chicken Tyson August 2016 Than 5% Costs Cargill Meat Commodity Input Unfavorable August 2016 Solutions Costs Tyson Prepared Commodity Input Unfavorable Meats August 2016 Foods Costs Commodity Input Unfavorable Meats Hormel August 2016 Costs Commodity Input Unfavorable Potatoes Lamb Weston, Inc. August 2016 Costs Commodity Input Unfavorable Seafood Trident Seafood August 2016 Costs

* Actual impact may vary by individual Member based on purchasing behavior. The impact shown is an aggregate average. Please note that the contract changes provided above are permissible per the terms of our agreements unless otherwise noted.

Member Advantage - August 2016 8 Program Highlights Program Highlights Dannon - Delicious and Healthy

Dannon has always been synonomous with a rich and creamy yogurt that delights your taste buds, and now their ingredient label is changing for the better as well. Now more than ever, consumers are seeking transparency and cleaner labels and, as of July 26, 2016, Dannon is making it simpler for you to meet their needs with their new and improved products: Light & Fit Regular®: Now includes non- GMO ingredients and no artificial colors or preservatives Oikos 0% Fat®: Now features 25% less sugar than before and all natural ingredients with vitamin D Activia Light®: Now has no artificial sweeteners Click here for the new SKU numbers. Please contact your distributor to find out when these products will be available to order.

New Dart Cup Inserts Updates Since the late 1950s, Dart has set the industry standard of excellence by efficiently providing high quality foodservice packaging solutions and exceptionally reliable service. They’ve been hard at work again with their new cup inserts. Turn a clear cup into a portable, fast, convenient and easy to use Grab ‘n’ Go food package. Use Dart’s new cup inserts to create yogurt parfaits, savory snack combinations, desserts and more. Made of PET, these cup inserts offer excellent clarity to showcase your Grab ‘n’ Go offerings. Offered in one compartment with a Clean-Lift™ post and two compartments with a Clean-Lift™ divider, these inserts will add ease of use and versatility to your creations.

Member Advantage - August 2016 9 Program Highlights

AT&T Wireless Take advantage of your employee discount on AT&T products and services! Now is the perfect time for you to review your account to make sure you have the best rate plans and devices for you, your organization and your family. Make sure you have enrolled in our discount programs so you can take advantage of great savings.

Corporate Program Once under agreement: • 23% corporate discount on qualified voice and data plans. • Access to Select Business Voice and Data Pooling Plans • Access to Premier online support tools and customer support.

Associate Program • 23% discount on AT&T Wireless monthly service charge* • Easy and convenient online account management and ordering.

Member Advantage - August 2016 10 Sourcing Updates Sourcing Updates Below is a list (alphabetized by category) of Foodbuy’s current strategic sourcing projects, their current status and the estimated project completion date. Project Project’s Current Stage Estimated Implementation Date AT&T Contracting Q4 2016 Cheese, Natural and Processed Finalizing Negotiations Q3 2016 ConAgra Negotiating Q4 2016 Condiments (Bulk & PCs) Determining Business Needs Q1 2017 Cookie Dough (Premium) Determining Business Needs Q3 2016 Conferencing Services Determining Business Needs Q4 2016 Film Preparing Business Award Q3 2016 Recommendation Lighting – Distributors Negotiating Q4 2016 Lighting – Manufacturers Negotiating Q4 2016 Nutritionals Determining Business Needs Q4 2016 Paint Contracting Q4 2016 Plastic Cups and Containers Contracting Q3 2016 Produce (All Other Distributors) Negotiating Q3 2016 Uniforms Determining Business Needs Q1 2017 WidePoint Contracting Q3 2016 Wrapped Cutlery & Kits, Bulk PP Negotiating Q4 2016 Cutlery

11 < MAIN Member Advantage - August 2016 Did you know that... Americans love sandwiches. In fact, they appear in 71% of all menus across pricewatch the USA. In a recent survey, 91% of participants had eaten a cheese steak August 2016 sandwich at a restaurant vs. preparing Price Increases them at home.*

*Source: Data Essential 2015 Cargill Meat Solutions up 3-4% Ground beef is up due to strong export demand for beef trimmings as well as strong seasonal demand.

Great Lakes and Land O’ Lakes 7-8% Cheese prices are increasing across the board on rising block and barrel markets due to strong retail and export demand.

Land O’ Lakes and Grassland Providing up 6-8% you value Butter pricing increasing 6-8% on rising butter markets due to pre-holiday inventory builds driving demand.

Sara Lee Meats Price Decreases up 6-8% Beef franks are up due to strong export demand for Advance Pierre beef trimmings as well as strong seasonal demand. down 1-2% Value Added Beef items like cooked burgers and philly Smithfield and Hormel cheesesteak are decreasing due to anticipated lower beef pricing in the next quarter. up 6-8% Bacon prices will be increasing 6-8% and hams will be increasing 4-6% due to strong retail demand.

Tyson Sara Lee Meats up 4-7% down 2-3% Tenderpress and other chicken breast items will increase Breakfast sausage will decrease as pork trim by 4-7% due to strong retail demand, however, leg inventories are up as a by-product of strong quarters should decrease by 2% as a by-product of demand for bacon and ham. higher white meat demand.

Copyright © 2016 (Foodbuy). All rights reserved. 1606725 < MAIN

< MAIN Produce Market

Advisory For the week of August 15, 2016

Market Alerts Produce Meter Recommended Items to Avoid Good Fair Caution

AVOCADOS Pricing remains very high on all avocados, and supplies are scarce. Commodity Quality Market Fully ripened product is in short supply, and sizing is less plentiful on 48 CT and larger sizes. The shortage is easing but will not return to normal conditions until Apples September. Please limit use of avocados where possible. Asparagus Avocado WESTERN SOFT VEGETABLES Due to continued hotter than normal growing conditions in California and Mexico, supplies are less plentiful than Bananas normal on Eggplant and Cucumbers, with higher pricing and good-to-fair Bell Peppers (Western) quality reported. Bell Peppers (Eastern) BELL PEPPERS Red, Gold and other colored bell peppers are more Berries: Strawberries expensive than usual due to the same weather-related issues as Eggplant. Berries: Raspberries Green peppers, especially Choice grade, are the best value this week. Berries: Blackberries POTATOES Supplies of Idaho’s storage crops are winding down, and pricing is Berries: Blueberries higher than in recent weeks on all sizes of baking potatoes. New crop potatoes Broccoli are expected to be ready for use in the next few weeks. Carrots BLUEBERRIES Supplies continue to be less plentiful than normal, with good- Cauliflower to-fair quality reported. Rainy weather in the Pacific Northwest and excessive Celery heat in Baja California are the primary factors, expected to continue for the next week. Strawberries, raspberries and blackberries are better quality options. Citrus: Lemons Citrus: Limes ASPARAGUS The Peruvian asparagus crop is winding down for the year, Citrus: Oranges creating higher than normal pricing for the eastern half of the country. Mexican and Californian product is also less plentiful than in previous weeks, due to heat- Cucumbers (Western) related growing conditions. Pricing is higher all around, particularly on Standard Cucumbers (Eastern) and Large sizes. Pencil size is the best cost option. Eggplant (Western) Eggplant (Eastern) Grapes, Green Grapes, Red MARKET OPPORTUNITIES Green Onions Locally Grown Product: Locally grown produce is peaking in most of the Lettuce: Romaine / Leaf country—New Jersey blueberries, Long Island corn, Michigan peppers— Lettuce: Iceberg check your distributor’s locally grown list for the latest! Melons: Cantaloupe Melons: Honeydew Lettuce: All row lettuces (Iceberg, Romaine, Leaf) are excellent quality and Melons: Watermelon lower-than-normal pricing. Great staples to emphasize on your summer menus! Onions Pears Melons: Cantaloupe and Honeydew quality is excellent, and pricing is lower Potatoes than normal due to peak harvests in the San Joaquin Valley growing area. Squash (Western) Red Grapes: Quality is excellent on all sizes and varieties of Red Grapes. Squash (Eastern) Red Globes, Flames, Cardinals—ask your distributor for recommendations! Stone Fruit Tomatoes (Western) Tomatoes (Eastern) Produce Market Advisory (continued)

Commodity Market Commodity Market

Apples WA, MI, and NY are harvesting a variety of Cucumbers Quality is fair, pricing is higher on Western apples. Quality is good. product.

Asparagus Pricing is much higher than last week on all Eggplant Quality is fair, pricing is higher than normal. sizes, with Pencil the best value. Quality is good. Garlic An extreme shortage in imports for several months has driven prices up dramatically for Avocado Quality is good, with much higher pricing than both domestic and imported fresh garlic. usual, and ready-to-use fruit less available. Quality is good, and domestic product is the Avoid using if possible. best value.

Bell Peppers Green Bells are the best value, with Red and Grapes: Green Quality is very good, pricing is stable. other colors more expensive than normal. Quality is good. Grapes: Red Quality is very good, pricing is stable.

Berries: Blackberries Quality and pricing are good. Green Onions Quality and pricing are at normal levels.

Berries: Blueberries Quality is fair to good, with locally grown Lettuce: Romaine / Pricing is very good, quality is improved to product available in the Midwest and Leaf good. Northeast. Lettuce: Iceberg Pricing is very good, quality is improved to Berries: Raspberries Quality and pricing are good. good.

Berries: Strawberries Quality and pricing is excellent. Melons: Cantaloupe Quality and pricing is good.

Broccoli Quality is good, pricing is lower than in recent Melons: Honeydew Quality and pricing is good. weeks. Melon: Watermelon Quality is very good, domestic season is at Carrots Quality is good, pricing is slightly higher than its peak. usual on Western product, Onions This year’s crop is running to smaller sizes, Cauliflower Quality and pricing are back to normal levels. most notably with red onions. Quality is good.

Celery Supplies have stabilized, quality is good and Pears Pricing is much higher than usual. Use an pricing is steady. alternate hand fruit where possible.

Citrus: Lemons Supplies are very limited, quality is good. Potatoes This year’s crop is running to smaller sizes on Idahos. Quality is good. Citrus: Limes Quality is good, pricing is higher than in recent weeks. Squash Quality and pricing are good.

Citrus: Oranges Supplies are improved, Florida harvest has Tomatoes Pricing is higher on larger round tomatoes. begun. Quality is good. Smaller rounds, Romas, grapes and cherries are the best values. Quality is good.

< MAIN 2Q2016

S U M M E R INFLATION R E P O R T

Food Price Inflation Remains Low Into The Summer Months Inflation Remains, But Not Flaring Financial markets swung wildly at the start of the year, sparking fears of recession as the outlook for the global economy grew gloomier. Oil prices fell to 12-year lows and the dollar continued to climb. Yet the U.S. recovery has so far proved resilient. Hiring has been robust, and the unemployment rate is down to 5 percent, half of its peak of 10 percent after the recession. Meanwhile, oil prices have stabilized, and the rise in the dollar has somewhat abated. The Fed is responsible for keeping prices stable and fostering maximum employment. Although it has made clear progress on the latter goal, the economy has been running below its targeted inflation for years. Fed officials have long said that they expect inflation to pick up once the effects of the stronger dollar and low oil prices dissipate.

The rate of inflation represents a wide market basket of goods and excludes food and energy because these categories are considered “volatile.” For those of us in the food business, we know exactly how volatile food prices have been over the past few years. We also know that a CPI rate of inflation does not reflect the reality thatwe have to manage through. It is true that beef, turkey and dairy have come off their highs from last year. In the last two years, protein prices were higher due to serious supply issues. The pork supply suffered the loss of millions of hogs due to virus. Beef ranchers culled cattle in huge numbers rather than feed them high priced corn. Both of these events escalated prices dramatically higher. These supply shocks have subsided and yes, prices are lower but in reality, still much more expensive than they were five years ago. Serious drought conditions remain, especially in California, where the dryness has raised the price of dairy, produce and nuts.

Prices expected to rise 1% to 2% in 2016

1 2Q16 INFLATION REPORT Second Quarter Saw Food Inflation Dips The food index declined 0.2% in May following a 0.2% increase in April. The index for food at home fell 0.5%, its fifth decline in the last 7 months. All the major grocery store food group indexes declined in May. The fruits and vegetables index fell 0.1%, its third de- crease in a row. The index for dairy and related prod- ucts fell 1.0% in May after rising in April. The index for meats, poultry, fish, and eggs declined for the ninth consecutive month, falling 0.7% as the index for eggs decreased 2.8%. The index for other food at home fell 0.3% and the cereals and bakery products index declined 0.3%. The nonalcoholic beverages index fell 1.0%. The food at home index has declined 0.7% over the past year. The index for meats, poultry, fish, and eggs has declined 3.2% over the span with the index- es for eggs, beef, pork, poultry, and fish all posting de- clines. The index for dairy and related products fell 2.2% over the past 12 months, and the cereals and bakery products index fell slightly, declining 0.2%. The other major grocery store food group indexes rose over the past 12 months, but only modestly; the 1.0% increase in the fruits and vegetables index was the largest of the increases. The index for food away from home advanced 0.2% in May and has risen 2.6% over the last 12 months.

The food index declined .2% in May. The food at home index fell .5%, and all major grocery store food indexes fell also.

Fruits and vegetables decreased .1% in May. Dairy decreased 1%.

Meats, poultry and fish decreased .7% in May. Eggs decreased 2.8%.

Cereals and bakery items decreased .3% in May. Non-alcoholic beverages decreased 1%.

2 1Q162Q16 INFLATION REPORT Chicken

Last year’s supply boom put extended pressure on the wing market, although prices did rally for the football post-season schedule that culminates with the Super Bowl in line with typical seasonal patterns. Wings turned on the defensive again by spring, however, and wound up slipping into the mid-$1.10s on Urner Barry’s quote sheet. It marked the lowest point for this product segment since 2011. Buyers have taken note of the discounted market and are looking to secure orders for later this summer when the football season gets back underway. While supplies keep growing, wings are being supported by seasonal demand effects and should be able to maintain in a modest to moderate uptrend in the near-term. It’s certainly possible that UB’s standard wing market is back near $1.40/lb or higher by the end of summer.

Chicken wing prices dropped to the mid $1.10s this spring. It is likely that prices will rally back near $1.40/lb or higher by the end of this summer.

Turkey Pork

Last year’s devastating outbreak of avian The hog and pork complex has continued to influenza squeezed supplies of whole turkeys and move higher over the past month. Interior hog turkey breast meat, sending the latter to an all-time markets are now trading in the upper $70 area. high late last year with fresh tom breast meat peaking Pork product is trading strong with the cutout at $5.85/lb on Urner Barry’s quote sheet. The turkey pushing above the $87 level recently. Year-to-Date industry was finally able to regain its footing this past the cutout has averaged 4.3% higher than year winter and is now expanding at a breathtaking pace. prior with the largest year increases occurring during Ready-to-cook meat output is running 8%-9% above late March and early April. Hams have moved above year prior levels over the past several weeks. While the $70 level on good domestic and export demand a solid portion of the increase can be attributed to and trimmings have posted solid gains on active the low baseline established in 2015 as a result of AI’s processing demand to meet hot dog and deleterious effects, it still represents a significant sausage bookings for the Fourth. The retail cuts amount of meat hitting the market with much more typically set back a bit post Memorial Day and that to come. While the supply burst has hammered the has taken place. The key to higher cutout values in breast complex, buyers are increasingly active in the coming weeks will be the belly complex and it looking to take advantage of discounts to secure appears to be off to the races. The belly primal has longer-term commitments. This has kept the moved above the $121 mark and further increases fresh tom breast market above the $2 mark, are forecast as we move into the summer months. where it should stay for the next few months. 3 2Q16 INFLATION REPORT Corn

While expectations are for 2016 US corn planted acres to be large in USDA’s June 30 Acreage report, the yield potential is still unknown with corn in early stages of growing. US corn condition ratings are above last year so far. However, weather forecasts for the Corn Belt have become warmer and drier which have provided support to the corn market. The market may already be assuming a lower US yield, which could limit the upside in the near term. If the corn yield ends up being around trend, the 2016/17 US carryout could be large at around 2.0 billion bushels, which could pressure prices this fall.

Soybeans

Soybean meal futures rallied above $430 per short ton in early June as falling estimates of US soybean ending stocks plus concerns about soybean production losses in Argentina and Brazil pushed nearby futures to the highest level since September 2014. Prices could remain under pressure ahead of USDA’s Acreage report, which is scheduled to be released on June 30, as market expectations of an increase from USDA’s March planted acreage estimate have the potential to push soybean and meal prices lower. The shift in Argentine acreage from soybeans to corn this fall may provide support for soybean and meal futures in the coming months.

Soybean Oil

The National Oilseed Processors Association (NOPA) reported a record May soybean crush of 152.8 million bushels, which was well above market expectations and a 4.4-million-bushel increase over the previous record for May set last year. Soybean oil stocks increased 84 million pounds from April, but the record soybean oil production for the month still implied domestic usage remained strong at more than 7 percent above the five-year average for May. The Energy Information Administration (EIA) reported soybean oil usage in biodiesel production was 464 million pounds in March, which was up sharply from February as a recovery in biodiesel margins driven by higher diesel prices, which more than offset rising soybean oil prices during the month. Biodiesel margins were estimated to have remained strong in April and May, which combined with the EPA mandate should continue to support soybean oil usage in biodiesel production over at least the next several months. Malaysian palm oil production continues to recover from last summer’s drought, but the impact of the drought is expected to impact production through July. Despite the reduced production and tightening stocks, palm oil prices have come under pressure in the past couple of weeks, as concerns about demand have pushed nearby futures below the high set in May. The weakness has combined with declines in soybean and meal futures to push soybean oil prices almost 3 cents per pound below the high reached mid-April. Soybean oil futures may be dragged higher by rising soybean and meal futures prices this summer, but strong crush margins and ample soybean supplies should keep the market well supplied and keep basis close to its current level in the lower end of the historical price range.

4 2Q16 INFLATION REPORT Dairy

Butter Milk The CME butter price rallied more than 30 cents in Fluid milk prices were down 4% for June, but the past month. Production has been stronger than are expected to increase by about 4% in July expected and stocks are near record high, yet spot as higher cheese and butter prices drive milk prices supplies are still difficult to find in parts ofthe higher. country. Whoever is holding onto butter isn’t letting go. The market will likely stay at $2.00+ through October with some risk of a spike up to $3.00 at some point.

Cheese The CME market rallied from the high $1.20s to $1.55 in the first half of June. Cheese production is still strong and inventory is on the heavy side, so the rally has everyone scratching their heads. Milk pro- duction has likely peaked nationally, and milk/cheese supplies will be tightening over the summer which should push the market up into the $1.70s by August/ September, but we expect to see the market drop back into the $1.40s before the summer rally begins.

Beef

The larger feedlot placements since February are Beef cut out values expected to continue through much of the increased into May remainder of the year, a function of larger breeding at a faster than inventories, larger calf crops and more feeder average seasonal cattle outside feedlots. Fed cattle slaughter has been rate, supported mainly running above year-ago levels since late March, by large run-ups on despite record small feedlot placements last fall choice middle meats. and early winter. Aggressive forward sales on ribs and loin cuts since early April, along with large formulated sales, have tightened spot market supplies. Middle meats may remain relatively strong in the very near term, but larger beef production this summer and seasonal factors should pressure rib and loin prices sharply lower. Ground beef prices are expected to run below last year through the summer.

5 2Q16 INFLATION REPORT Wheat

The US 2016/17 crop year has begun for wheat. Supplies are forecast to be large given the lagging export program from 2015/16 setting the stage for large beginning stocks and near-record-high condition ratings for the current winter wheat crop. Hard red winter and soft red winter wheat harvest have begun. Generally, protein levels are slightly lower than normal, which was somewhat expected given the rainfall accumulation late in the growing season and the showers experienced since the crop’s maturity. Test weights and yields, however, reportedly are coming in above average. Harvest most recently was reported as 11 percent complete, as of June 12, with expectations that harvest progressed well over the past seven days.

US ending stocks are forecast to be over 1,100 million bushels at this juncture, which would be the largest total since the 1987/88 crop year. Futures prices generally are not reflecting the US wheat supply situation as strength in corn and soybeans have kept wheat futures supported. Cash prices are weakening, particularly for HRW, as harvest progress. Basis levels for lower protein HRW wheats have weakened more than higher protein wheats. The wheat-corn spread is narrow relative to history, encouraging more wheat feeding to livestock than what normally would be fed. There is room for futures to trade lower given the global and US supply outlook; however, if corn futures continue to find strength, the downside to wheat futures may be limited. This largely depends on the weather patterns in the coming weeks.

US exported US will export Production is approximately approximately forecast at 770 M 900 M 2,141 M bushels of wheat bushels of wheat bushels of wheat in 2015/16 in 2016/17 in 2016/17

Eggs

Large shell eggs in the Midwest The combination of a rapidly expanding supply base recently slipped to just $0.55/dozen on and weak demand conditions in the wake of last Urner Barry’s quote sheet, a level not year’s AI outbreak has left the shell egg complex observed in a little over a decade. reeling. The mid-to-late spring time period is always a challenge for eggs from a marketing standpoint as retailers shift more of their feature focus on grilling items for the summer and away from products typically associated with breakfast. Buyers are getting more and more active, which has given prices a lift in recent days, but large shell eggs may be stuck in a trading range between < MAIN $0.60/dozen and $0.90/dozen. for a little while. 2Q16 INFLATION REPORT SOURCES: American Restaurant Association - Mercantile Exchange (CME) - Informa Economics - Urner Barry - U.S. Bureau of Labor Statistics - U.S. Department of Agriculture (USDA) - Washington Post 6 2Q16 INFLATION REPORT