2013 Corporate Report: Sixty Years of Excellence...perfection. But as we all know, no diamond starts out sparkling. As we at Sargento celebrate 60 years – our Diamond Jubilee –

2013 Corporate Report: Sixty Years of Excellence

Sargento Corporate Report | 2

Welcome.....................................................................................3

Strength.of.Our.Culture........................................................4

A.Tradition.of.Clarity.............................................................6

A.Reflection.of.our.Community........................................8

Natural.Wonder.................................................................... 10

Crown.Jewels......................................................................... 12

Brilliant.by.Design................................................................ 16

We.Remember...................................................................... 18

Solid.Leadership................................................................... 19

A.Diamond.is.Forever......................................................... 21

inside


Renowned for its strength and brilliance, the diamond has come to represent perfection. But as we all know, no diamond starts out sparkling. As we at Sargento celebrate 60 years – our Diamond Jubilee – we can’t help but look back at our humble beginnings and remark on how they paved the way for this sparkling milestone in our company’s history.

Back in 1953 when my grandfather, Leonard, and his business partner started a family-owned business called Sargento, he never dreamed that it would become such an iconic and innovative brand in the cheese industry.

Since that time, Sargento has been at the forefront of the cheese industry and has overseen myriad innovations, not only in our product lines, but in manufacturing practices as well.

We are proud of and humbled by these accomplishments.

In 2013, my father Lou Gentine stepped down and passed the torch to me. He received the Lifetime Achievement Award from the Plymouth Chamber of Commerce for his lifelong dedication to the communities in which he lived and for his work at Sargento. For more than 32 years, he treated Sargento like his second home, but has always and will continue to embody the tenets and values that are central to the company. I congratulate him on this well-deserved award and look forward to continuing his legacy of bold leadership, keeping true to a focused philosophy and family culture while paving the way for unprecedented success.

And speaking of family, we believe that every employee at Sargento holds the

key to our success. We strongly believe in our company’s most important tenet: “Hire good people and treat them like family.” That’s why we don’t call our staff “employees,” but rather the Sargento family. They are the driving force of the Sargento culture and our most important asset. I believe our unbreakable commitment to them is why our people and products get stronger and stronger every year.

From our family to yours, I appreciate you taking the time to learn more about our company and its accomplishments over the past 60 years.

Louie GentineChief Executive Officer

jubileeour.diamond The Sargento Family reflects upon the

mural in our headquarters’ lobby. The mural has photographs of people, past

and present, who helped build Sargento.


strength of our

cultureThe strength and unbreakable nature of a diamond parallels Sargento as a company. Our strong foundation is built on founder Leonard Gentine’s pillars that have guided the company since 1953. His most important principle was to “hire good people and treat them like family.”

T his motto proved fitting because it was passed from father to son. In fact, the Sargento founding philosophy has served three generations of Gentines and six decades of business. This is not just something we say around here — it’s

something we live by day-to-day. There are five members of the Sargento family who have been working here 45 years or more. Read what some of our longest-tenured employees have to say about our Sargento family.

Steve Kapellen 45-Year employee

“When I started at Sargento I was a kid just coming out of high school. Back then it was called Central Wrap, and my mom told me to go down there and ‘work for Butchy!’ (Leonard Gentine Jr.) He posed two questions to me: ‘You wanna work hard?...You wanna work now? That’s how it all started. Sargento has been so good to me and my family. I can’t believe it’s been 45 years because it has gone so fast. Leonard (Gentine) cared about me as a person. I’ll never forget his kindness.”

Dennis Butters 45-Year employee

“I was all dressed in my gear ready to go bow hunting after school and then the phone rang. It was Leonard’s (Gentine) secretary telling me I was hired and she asked if I could work that night! If I had put on my hunting clothes quicker who knows where I would be now? I’m so blessed to have been able to work at Sargento for so long. We all are. Leonard’s innovative spirit is still present at Sargento today. I believe he is looking down on the entire Sargento family, with pride in his heart and a smile on his face.”

Lyle Theune 45-Year employee

“I started when I was 18, putting away film in boxes. I was on my own. Later I started driving a truck. Then, we only had about 5 or 7 truck drivers, now we have at least 50. I’m amazed at how much we have grown. So much has changed but stayed the same. The Gentines treated me with respect when I was hired and still do.”

In 2013, the Milwaukee Journal Sentinel named Sargento a “Top Workplace” for a fourth consecutive year. Sargento was also included in the list of the Wisconsin 75, a compilation of the largest privately held companies in

the state, as a Distinguished Performer in the Generations Category. In those honors, we can see our founder’s philosophy strongly at work, and also see why our employees feel Sargento is such a special place to work.

Chad Hamilton Senior Vice President and General Counsel Joined in 2013

“When I joined Sargento in the Fall of 2013, it was hard for me to imagine that a place like this existed. Work-life balance was something I often had to sacrifice as an attorney. But, at Sargento, I no longer have to make that compromise. It truly is a special environment and I’m glad my family and I relocated here from Denver.”

Marie Rietbrock Administrative Assistant, 5-year employee

“I love it at Sargento. It’s exciting, it’s fun. It’s been my second chance because I lost my job of 21 years. I had to start all over. I’m glad I was able to come to a place like Sargento.”

Carlos Castillo Truck Driver, 10-year employee

“I have never missed a day of work and I love what I do. Here, they treat you like you’re part of the family. It’s so welcoming and that’s what builds a good team.”

our shining valuescode of business and personal ethics

we will be legal We recognize the authority of legal constraints and our obligation to be in conformance with both the spirit and the letter of the law.

we will be respectful Whatever our station in life may be, we will respect in others of all ranks those virtues and strengths of character, which we collectively and individually endeavor to exemplify.

we will be moral In our public and private lives, we will strive to give precedence to that which is right over that which is merely expedient or convenient.

we will be responsible To each other and to those outside Sargento, we will strive to fulfill both the obvious and the unenforceable obligations we owe to all whom we serve and with whom we work.

we will be honest To warrant the trust of all with whom we come in contact, we must be unflinchingly honorable in whatever we think, do or say.

we will be fair In regard to decision-making at all levels, we will strive for maximum objectivity and evenhandedness with all those whose lives we touch.

Louie Gentine accepting the

Wisconsin 75 award

Leonard Gentine with children in 1991



a tradition of

clarityA major point of pride for us here at Sargento is our history of innovation. We have always had a very clear vision for our future, and that has paved the way for us to become mavericks in the cheese industry since our founding. In 60 years, we have invented groundbreaking products that revolutionized how consumers eat, store and cook with cheese. Take a look at some of the moments that humble us and make us most proud.

1953

1970

1990

1960

1980

2000

2013

1955: First vacuum packaged cheeses1958: Creation of shredded cheese

2001: Resealable package with Slide-Rite®

2007: Artisan Blends2011: Natural Blends

2012: Ultra Thin Slices 2012: Off the Block

1986: Resealable package

1969: Peg bars placed in dairy aisles

1991: Reduced-fat cheeses

1994: First recipe blends

1976: Taco Blends

innovation based upon research & development

Our innovative spirit and heritage live on as we continuously seek new opportunities. We believe investing in our people and facilities helps us effectively bring new ideas to the marketplace. That is why

we made improvements to our Elkhart Lake facility to support our growing culinary staff; an integral part of our Food Service and Food Ingredients businesses. To better accommodate the addition of six chefs over the past eight years, we created a recipe development area for our chefs to work with customer chefs to build new products.

From the beginning, Sargento has made waves in the industry, not just with packaging but with flavor combinations as well. That eye for innovation helped set our company apart. Staying at the forefront of an industry with technological innovations takes unbreakable vision, crystal clear thought and shining words of wisdom guided by our founder.

R&D teams are indispensable to a company’s success. They pinpoint opportunities within the market and then implement a comprehensive plan to fix or improve it. And these breakthrough products mean very little without sales to back them up. The overwhelmingly positive response to our products and packaging has resulted in more than $1 billion in net sales.

Kristi Jankowski: We thrive on the unknown, the ambiguous. Just because you can’t do it today doesn’t mean you can’t do it tomorrow. We have a great spirit of innovation where people are always coming forward with ideas. In the last 10 years we’ve done a lot in terms of the process of working with the consumer and trying to really understand how we can fulfill their needs.

gem of the department

We were the first to market shredded

cheese.

know?did you



a reflection of ourcommunityAt Sargento, we are invested in people and care about what happens to them both inside and outside our walls. So it should be no surprise that giving back is ingrained in our company culture. We partner with many organizations in and around Sheboygan County whose emphasis is on people. In this way, we treasure our human investments.

Over the past 60 years, Sargento has focused its charitable giving in support of food and shelter nonprofit agencies. In 2013, we continued our long-standing tradition of giving back to the environment and our community through the following initiatives.

Our charitable partnership with the Green Bay Packers helps alleviate hunger in Wisconsin. In 2013, the Touchdowns for Charity program completed its 11th year and raised $91, 500. Through the program, Sargento pledged to donate $1,500 to food charities for each touchdown scored by the Green Bay Packers. It’s so wonderful to be able to give back in this way.

As the “Official Cheese of the Green Bay Packers,” we’re dedicated to supporting our hometown team and helping feed those in need. Since embarking on our partnership, Sargento has contributed more than $900,000 to Wisconsin food charities, many of which can feed people in need for just $1 per meal. This season’s beneficiaries included the Hunger Task Force in Milwaukee County and Paul’s Pantry in Green Bay.

To celebrate the 11th season of “Touchdowns for Charity,” Sargento hosted a food drive at Lambeau Field on November 10, 2013. Sargento collected non-perishable food items and monetary donations from Packers fans. Funds and food went directly to the Hunger Task Force in Milwaukee County and Paul’s Pantry in Green Bay.

in the end zone

Former Packer Dave Robinson attended the Touchdowns for Charity food drive at Lambeau Field

higher learningOur efforts to advance college and career readiness by partnering with Wisconsin academic institutions to give students real-world experience, was recognized by the American College Test. We were pleased to be honored as a 2013 recipient of ACT’s national Workplace Success Award. In the near future, we will post 90 percent of our open positions in the ACT National Career Readiness Certificate system, which will aid in the employment process by matching us with appropriate candidates.In May, Louie Gentine accepted the

award in Washington, D.C.

empowering livesRCS Empowers, a nonprofit organization in Sheboygan County that helps those with disabilities, named Sargento its “Employer of the Month.” In addition to the honor, the Office of the Governor awarded Sargento the Outstanding Employer for 2013 award. Governor Scott Walker said the recognition was in appreciation of our commitment to progressive employment practices that encourage the full participation of people with disabilities. Rodney Rentmeester, a Sargento employee, came to the company from RCS Empowers. His dedicated job coach trained him as a Package Delivery Clerk, a job he takes great pride in. Rodney Rentmeester with Sargento

employees


an extension of our community Sheboygan County has grown steadily in 60 years. In 1953, there were approximately 80,000 residents and, in 2013, that number grew to more than 115,000. Much of that growth was sparked by growth at Sargento. We are happy that we have been a strong contributor to the growth. And as a company, our giving dollars have grown, too. We are so thankful for that and the generosity of our employees.

granting wishes

Hayden, a three-year-old from Mount Calvary, was diagnosed with Infant Acute Lymphoblastic Leukemia. His one wish was to go to Walt DisneyWorld® Resort, so his magical adventure began with a limo ride to the airport and then a flight with his family to Orlando. Hayden and his family checked into their own private villa at the Give Kids the World Village for a week. He and his family had a special meal where he met the characters from his favorite television shows, including Little Einsteins. To make the week even more special, he and his family got passes to all of the Disney parks. Hayden’s parents said, “It was such a blessing to spend time together and make so many amazing memories.”

Priscilla, like every girl, wanted to celebrate her sweet 16 in a big way. The young lady from Ripon, Wisconsin received a recent thyroid cancer diagnosis for which she has been undergoing treatment. But her treatment was not going to stand in the way of her big birthday celebration. She envisioned being a queen at her event, which was to take place at the Royal Ridges in Ripon. The elaborately decorated room was reminiscent of a winter wonderland: white tablecloths, silver and pale blue accessories and blue pastries, including an ice blue three-tiered cake. Royal Ridges also documented the event with a photo booth and video presentation, as well as a candlelit ceremony. Nearly 80 of Priscilla’s friends and family attended the event to help her ring in 16 in style. It was definitely all about Priscilla that night – the DJ played all of her favorite songs while she and her six friends who made up her “regal court” danced the night away. After her birthday, Priscilla said that Make-A-Wish “made my dream bigger than I dreamed it would be or could be.”

The Make-A-Wish Foundation is near and dear to our hearts, as it grants wishes for children with life-threatening illnesses. In 2013, our Make-A-Wish charitable golf outing exceeded last year’s net revenue (wish-granting dollars) by 20 percent, which allowed three additional children to have wishes granted.

Six-year old James was diagnosed with Ganglioglioma, a rare brain tumor. As a result of the disease, he suffered a stroke last year, which left parts of him incapacitated. Some of his motor skills have returned, but he still has problems with fine motor control. He wants to get the most fun out of every moment of every day, so, what better way to do that than with an indoor playroom where he can play all day long. That is the only thing that James wished for, and Make-A-Wish made it happen. An artist was enlisted to paint a spectacular mural on the wall of James’ basement, and the foundation will deck out the room with electronics, a loft and basketball court. Some elements of the room will help James develop and regain some of his fine motor skills, strength and balance.

sharing our strengthsFostering youth development is a priority at Sargento. In fact, 27 of our employees stepped away from their jobs and participated in more than 50 life-skills classes to help impact the lives of more than 1,000 students. Underscoring the importance of giving back, Sargento employee participation exceeded the number of volunteers from any other employer in the Tri-County area.

Sargento employee with first grade class

living unitedSargento encourages charitable giving from employees too. With our company match, we raised more than $705,000 for the United Way in 2013, exceeding our 2012 donation, of $665,000. We could not have raised the funds without outstanding participation rates, as 85 percent of Sargento employees donated to United Way. And because of our commitment, Sargento received the “United Way Campaign Award” in March.

Sargento employees received the “United Way Campaign Award”

singing with prideSargento Employees Caring About People (SECAP) singers brought holiday cheer to nursing homes throughout the Wisconsin area. SECAP is made up of approximately 150 Sargento employees and their spouses who sing timeless holiday classics, even in German! For 22 years, SECAP has shared their musical talents with our community.

SECAP Singers’ holiday performance at local nursing home


natural

wonderNatural wonders, like diamonds, capture our attention because of their ability to inspire awe. And to preserve the natural, pure beauty of our state, we have moved toward sustainable practices that will take this company confidently into its next 60 years.

In fact, the expression “People, Pride & Progress,” a lifelong mission of founder Leonard Gentine, has not only defined our culture, but it also guides our sustainability efforts. We are proud of our entire Sargento family for their continual

efforts to sustain our business, our community and our world. Though we have always had an eye toward sustainable practices, we made important decisions in 2013 toward sustainability for posterity.

Our green efforts were recognized at the 6th annual Wisconsin Sustainable Business Council Conference where Sargento and 33 other Wisconsin companies were named as “Green Masters.” Sargento stood out as a “Green Master” for initiatives like designing efficient facilities and production lines, feeding the homeless of St. Ben’s, participating in wellness programs and working with the Innovation Center for U.S. Dairy Sustainability Council to develop and promote best environmental practices for producers and processors. The honor aligns with our three pillars of sustainability: environmental stewardship, social responsibility and economic viability.

Sustainability Manager Mark Albert accepting the “Green Masters”

recognition during the 6th annual Wisconsin Sustainable Business

Council Conference

The LINC building on the Sargento Plymouth campus earned recognition as a 2013 ENERGY STAR Certified Building from the Environmental Protection Agency. The distinction means the LINC building performs better than 97 percent of similar

commercial facilities across the country.

Because of this special honor, Sargento hosted more than 50 members from the Wisconsin Association of Energy Engineers in the building. Here are a few things that got the engineers buzzing about our facility:

• The pond near the LINC provides it with high-efficiency heating and cooling.

• The heat from our data center is used to warm the LINC and other offices on the campus.

• Hydronic heating located in the floor at the perimeter of the LINC provides comfort during the winter months.

• Electric efficiency measures in the LINC save more than 225,000 kilowatt-hours per year. That’s enough to power 19 typical homes.

We are also proud of our decision to forgo selling scrap stick out of our Kiel plant to be donated to the Salvadoran Mission.

At Sargento, we believe sustainability is inherent to long-term success, and the decisions we make today will influence our people, the environment and our community in the next 60 years. That’s why we know our future here is a bright, green one.

the LINC building

giving back

Mark Albert: As we’ve built new facilities, we’ve always incorporated the latest technologies and controls for lighting, heating, refrigeration and cooling. We have a strong recycling program so that we can minimize our impact on the landfill.


Sargento cracker sticks at Salvadoran Mission in Africa

The LINC building at the Plymouth, Wisconsin campus

Cracker sticks repacked for Salvadoran Mission



crown

jewelsThree divisions comprise Sargento: Consumer Products, Food Service and Food Ingredients. Each division is unique in its history and has an eye toward our bright future.

Consumer Products is a leading packager and marketer of natural shredded, sliced, snack and specialty cheeses. Food Service produces custom cheese products that are tailor-made for many national restaurant chains. Food Ingredients is recognized for innovation and leadership in cheese-based products, sauces and custom cheese ingredients. These “Crown Jewels” breed long-term success through a shared commitment to innovation, service, quality, value, taste and convenience.

our award-winning cheesesCooking Light

MagazineTM

2013 Taste Test Awards

Sargento Traditional Cut Shredded Mozzarella

Cheese wins for top “Part-Skim Mozzarella”

International Dairy Foods AssociationInternational Dairy Show in Chicago

Sargento Ultra Thin Sliced Cheeses receive the

“Attendee Choice Award”

Health MagazineTM

Top Picks for Cheese Award

A number of Sargento cheeses were included in the “Must-Eat List”

Better Homes and GardensTM

Best New

Product Awards

Sargento Ultra Thin Sliced Swiss Cheese

wins for “Best Cheese”

our consumer products division A Message from Michael Pellegrino, Chief Customer Officer & President – Consumer Products Division

Embracing a tradition of innovation and listening to our consumers has always been at the core of our culture. In 2013, our Consumer Products Division continued to stay at the forefront of dairy trends and stand out among consumers with our exceptional tasting products.

This year, I was pleased to take on the new role of Chief Customer Officer & President – Consumer Products Division, leading our retail cheese business with the strong support of my team. Our division further defined itself as a leader in the natural cheese category by driving sales and enhancing product lines. We know our consumers trust Sargento to provide superior-tasting natural cheese products, and we remain steadfast in our commitment to delivering on that promise. We are pleased to share our highlights from the past year and look forward to continue building on our success and innovation.

our flavor summit with rick baylessTo kick off a year-round ambassador program with six influential food bloggers, we held an all-day immersion session at our headquarters in Plymouth, Wisconsin. Throughout the day, the bloggers received a tour of our grounds and met with CEO Louie Gentine, head chef Ulrich Koberstein and cheese grading expert John Brody. And the day wasn’t complete without a surprise visit from renowned chef Rick Bayless. Rick shared his expert insight into culinary trends for 2014 and how the bloggers might pair those trends with the many delicious Sargento cheese varieties.

Chef Rick Bayless and Sargento Brand Ambassadors

our satisfying snacks We understand consumers’ desire for a balanced snack option that’s convenient and that they can feel good about. To further establish Sargento Snacks as a natural, nutrient-rich snack choice, we partnered with a dancing professional to promote healthy snacking tips, including a media day in New York City.

We also conducted two sampling events in Miami and Washington, D.C., sharing our Snacks products with commuters. We were pleased to hear many commuters viewed Sargento as a wholesome snack choice, ideal for helping shape up their snacking routine.

Finally, we added a “Smart Snacking” tool on our website to provide consumers with snack pairing inspiration and developed a “Snack Smart” Facebook tab to encourage our fans to practice smart snacking habits with us.

Sargento commuter event snack packs

At BlogHer in Chicago, Sargento spoke with more than 1,100 influential food and lifestyle bloggers about our Sliced cheeses. Bloggers learned about the importance of taking a real lunch and sampled an original Sargento Sliced cheese recipe.

Lifestyle expert Martha McCully teamed up with Sargento to highlight the importance of taking a real lunch break to savor the flavors of life with Sargento Sliced cheeses.

The Sargento sponsorship of the 2013 Healthy Living Summit in Minneapolis gave Sargento the opportunity to connect with 150 influential bloggers in the health and lifestyle realm. Attendees were delighted to sample Sargento Light and Reduced Fat Snacks and learned about the wholesome properties of our products.

The “Ring in the Meal Makeover” recipe contest encouraged subscribers of FabFitFun – a website and daily e-newsletter providing smart, simple steps to help women live a healthy lifestyle – create memorable recipes incorporating Sargento Reduced Fat natural cheeses. The contest helped health- and fitness-minded participants stick to New Year’s resolutions.

developing relationships with influencers in 2013

1

2

4

3

Social Growth: We are pleased to announce that our social channels performed very well across the board this year with consistent growth and engagement from our fan base. With the help of several key programs and evergreen content in 2013, we gained more than 40,000 Facebook fans, bringing our fan base to 200,000. Our page saw more than 100,000 total engagements (shares, likes and comments), showcasing the relevancy of our content to fans. In addition, our Facebook posts received more than 15 million total impressions. Our Pinterest page also did very well, gaining nearly 2,000 followers and

driving more than 20,000 referral-traffic views to Sargento.com for the year.

1 2

3 4

Michael Pellegrino: The.gem.of.our.department.is.our.team’s.passionate.focus.on.delighting.our.consumer.and.customers..Our.team.works.tirelessly.and.seamlessly.to.challenge.the.status.quo.with.news.and.innovation..We.welcome.new.ideas.from.all.parts.of.the.organization,.new.and.tenured.employees,.customers.or.suppliers..This.type.of.team.work.has.driven.our.historical.success.and.will.continue.to.position.the.Sargento.brand.for.strong.success.in.the.future..


Each month, the Sargento Facebook page featured a different Shreds challenge to engage fans with fun cheese trivia and educational posts. We also rewarded fans for their participation with free product coupons.

fans “liked” our shredded cheese challenges


The Consumer Products Sales & Marketing Team


In 2013, the Food Service division held a three-restaurant market immersion at places like TGI Friday’s, Highlands Café and Graffito. The restaurants discussed surviving and thriving in the marketplace and business issues important to restaurant owners and operators. We used these immersions to elevate our knowledge of restaurant operations, back-of-house issues and marketing.

experiential learning

The rewards for our work never ceased in 2013. At an annual supplier meeting in Texas, the Pizza Hut R&D team recognized Sargento for its product design and innovation partnership for limited time offers. We were honored and proud to accept the award bestowed upon us by Pizza Hut, which was a signed plate, thanking us for our support. We are so thankful for what so many of our team members have done to support the project including procurement, innovation, logistics and manufacturing.

innovation

“Vendor of Excellence” has a nice ring to it. We were honored to receive this accolade at the Buffalo Wild Wings annual conference in March. The award recognized suppliers that have built a strong base of national and local service with a track record of improvements. Sargento was one of three suppliers honored and the only food manufacturer selected. Buffalo Wild Wings chose Sargento because of our methods for developing new and unique signature menu items for the brand, and for our culinary services, consumer research, menu trend data and support of the supply chain department.

acclamation

A Message from Kevin Delahunt, President - Food Service Division

This past year presented a new set of challenges because we had an excellent 2012. We had to grow on top of what was already a very solid performance. Fortunately, we were able to do just that as 2013 brought new records in volume and profit. And our key partnerships with the teams at Wendy’s and Buffalo Wild Wings continue to thrive. Check out some of the highlights of our year from one of the crown jewels of our business:

our food service division

Kevin Delahunt: The gem of our department is the attitude of our employees. It’s a can-do attitude, it’s never-say-die, we-can-do-anything, no obstacle is too great to overcome spirit. That sentiment began with our first team in 1984 when Larry Gentine and Dave Lorbecki took on this new venture and grew Food Service into what it is today. Another gem would be innovation: the constant drive to develop new products, processes and procedures that are valuable and useful for our customers to help them build their businesses.


Buffalo Wild Wings annual conference

Food Service Sliced Cheeses

Food Service Team in 1984

Pizza Hut Pan Award

This year, our division uncovered fresh capabilities in terms of selling new frozen solutions to the pizza industry. We used what we already had to create a product that was truly innovative and allowed our customers to bring something delicious and exciting to the marketplace.

innovation

For the second year in a row, we received the Spirit of Excellence Award from Hormel. Awards are always a point of pride for us and an ongoing reminder that we must continually strive for improvement. We appreciate that our efforts to improve the industry have not gone unnoticed.

acclamation

Mike McEvoy, Executive Vice President — Operations and former President — Food Ingredients Divison

There has been significant evolution in our Food Ingredients Division, but some of the same core people who were here when the division started in 2000 have been able to structure our growth and shape the division. By having the majority of that core group still here, there is a great appreciation for where they came from to where they are today.

Despite the changes, we had milestones of record and significant growth as a division, both top line and bottom line. We also stayed true to our principles, all while experiencing 12 percent growth in 2013.

our food ingredients division

Mike McEvoy: Food Ingredients is really about the balance of the work and the fun. As we look at our identity, people look at our group and say “that’s a group that works hard and has fun together and accomplishes a lot.”


Sargento Tikka Masala Bites

Our ingredient solutions

Our Food Ingredients team

Food Ingredients team and Louie Gentine accepting the Hormel Spirit of Excellence Award



brilliant by

designWithout our truck fleet and manufacturing facilities, Sargento would not be able to operate or achieve such success over the past 60 years. We’ve all heard the phrase “it takes a village.” Nowhere is that more true than at Sargento.

driving success

O ur business relies on flawless operations, which include our award-winning quality control and procurement. All these departments —from Manufacturing to Logistics to Engineering — work together to

ensure Sargento delivers the freshest goods for the best taste. We take pride in the fact that we have found ways to manage our growth and stay successful through transportation and construction.

Over the past 60 years, we have seen a few trucks grow into an entire fleet to accommodate the growing demand for our products. They impact the way we serve our customer base and how we do it with such assurance.

Check out our transportation evolution below:

then

now

The past year was a big year for us in terms of accolades. We won a number of awards and were recognized by our industry, which made us stand out among the competition. We couldn’t be more humbled.

• Publix grocery stores named us their No. 1 supplier.• We were named “Supplier of the Year” by Spartan.• Meijer stores said we are at the top of their supplier list. • Hormel honored us with the Spirit of Excellence Award.• Some of our manufacturing mentors were recognized by the NEW

Manufacturing Alliance.

accolades

engineeringAt Sargento, we believe in continuous improvement for the benefit of our customers. We built a state-of-the-art storage facility in our new High Bay warehouse in Plymouth. The warehouse is the tallest building in Plymouth and is the result of a multi-million dollar investment to accommodate the increased demand for Sargento cheeses.

Technology is always at the heart of what we do, so our new High Bay facility features an Automatic Storage and Retrieval System (ASRS). A yellow crane made to look like Swiss cheese moves back and forth on a track as it sorts and organizes up to 10 million pounds of cheese and can accommodate up to 8,800 pallet positions. The system continually moves and optimizes our storage needs. This was our largest project of 2013 and a huge step forward from the manual processes we used in the past. In moving to an automated process, we also alleviated much of the physical stress that our workers have had to endure during the previous process. The health and safety of our family always comes first.

gem of the departmentGary Vissers: Our “diamond” is our attitude. The ruby is humor, and there’s probably an emerald in there somewhere because our people are so talented. We’ve been able and fortunate to get a group of people here together—it’s the Sargento culture. It’s a particular attitude.

Lee McCollum: The knowledge base of our people, many of whom come from small communities, is truly precious. If our people understand that the Gentines would like something done, my job is to ensure things get done in a controlled fashion. They really try hard to do what they understand the family would like.

High Bay warehouse in Plymouth, Wisconsin

This crane sorts up to 10 million pounds

of cheese

know?did you



Nothing is more important to Sargento than family. That’s why it was so hard to lose one of our beloved family members. Mark William Rhyan, our Executive Vice President and Chief Operations Officer, passed away on Wednesday, December 25, 2013 in Sheboygan. A lifelong Wisconsin resident, Mark was born April 5, 1960 in Milwaukee. He graduated from University of Wisconsin-Madison in December 1982 with BBA in accounting. He married Karen Bardis and they started a family with two children, Corwin Nicholas and Nicola Erin.

Besides being a loyal family man, Mark was a dedicated businessman. He started his career at PriceWaterhouseCoopers (PwC) in Denver as a CPA and later took his business acumen to the culinary industry to manage a Milwaukee bakery and restaurant, La Boulangerie, Inc., and in his eponymous restaurant, Rhyan’s, where he worked alongside his brother, Dale Rhyan. After that he returned to PwC as Tax Manager in their Milwaukee office.

Mark began his illustrious Sargento career in 1992 as the Director of Tax. He was promoted to EVP-Chief Financial Officer in 1997 and finally to EVP-Chief Operations Officer in 2000. He was passionate about “doing it right the first time.” Under his leadership, Sargento manufacturing, engineering, procurement, quality systems, logistics and transportation evolved to successfully meet the challenges of a growing company. Mark was a mentor to many, always willing to help our people grow professionally. His actions and attitude motivated those around him to excel. He served not only as an inspirational leader, but also as a contributor, volunteer, stand-up comic, and most importantly, a dependable and loving husband, father and friend.

As a company, Sargento is committed to philanthropic endeavors. Mark was as devoted individually as we are collectively. He made many contributions to the community as President of the Plymouth Board of Education and served on the Board of Directors for Gateway Packaging Company in Granite City, Illinois; the Sheboygan County Economic Development Corporation; US Bank in Sheboygan and the First Congregational UCC Church Council. He was also instrumental in the expansion of the Pine Hills Country Club, where he served on the Board of Directors.

In addition to his myriad charitable and professional contributions, Mark managed the expansion and construction of the Osthoff Resort for the Gentine family. Outside the office, he enjoyed golf, basketball, teaching Junior Achievement classes and coaching youth athletics. In 2011, he received an Educational Leadership Award in recognition of his significant involvement in the development of the LTC/Plymouth High School Science and Technology Center. The following year, he was awarded the prestigious Sargento Founder’s Ring, an honor that recognizes employees who embody Leonard Gentine’s vision.

In his private time, Mark enjoyed walks with Augusta, the family dog, water sports and spending time with family and friends on Pearl Lake in Redgranite, Wisconsin. He holds a special place in the hearts of the Sargento family and is deeply missed.

we

remember“Mark was a person who cared a great deal about people. He wanted to help the company succeed, but he also wanted (people) to succeed both professionally and personally.” -Lou Gentine, Chairman of the Board

mark rhyan: root of the sargento family tree


corporate

Louie Gentine ................... Chief Executive Officer

George Hoff ..................... Executive Vice President – Chief Financial OfficerChad Hamilton ................. Senior Vice President & General Counsel Mike McEvoy .................... Executive Vice President – Chief Operations Officer Michael Pellegrino ............Chief Customer Officer & President - Consumer Products Division Kristi Jankowski .............. Executive Vice President – Innovation Karri Neils .......................... Executive Vice President – Human Resources

administration

AccountingMarcy Stanczyk .............. Senior Vice President – TreasurerJim Birenbaum ................ Vice President – Finance & Control

CommunicationsBarbara Gannon ..............Vice President – Corporate Communication & Government Relations

Information TechnologySue Peterson ................... Vice President – Information Technology

innovation

Rod Hogan ........................ Vice President – New Business Development

operations

Keith Hartlaub ................. Vice President – Distribution ServicesKarl Linck ........................... Vice President – EngineeringShawn Marcom ............... Vice President – ProcurementLee McCollum ................. Vice President – ManufacturingJanet Raddatz ................. Vice President – Quality & Food SafetyGary Vissers ....................... Vice President – Logistics

sales and marketing

Consumer Products DivisionMark Gumm ...................... Senior Vice President – SalesChip Schuman ................. Senior Vice President – Marketing

Food Ingredients DivisionMarty Rowe ...................... President – Food Ingredients DivisionBill Schaeffer ..................... Vice President – Sales

Food Service DivisionKevin Delahunt ............... President – Food Service DivisionMike Sokol ......................... Vice President – Sales

solid

leadershipOur leadership are the thinkers and drivers of change at Sargento who create a unified approach to leading our company. Executives who started with us more than 20 years ago are still here, and they are grooming the next generation of Sargento leadership for success.

our officers


our board membersStanding left to right: Lee Gentine, Sargento; Lou Gentine, Sargento; Larry Gentine, Sargento; Jerry Jerome, retired, Hormel Foods; Mark Train, retired, Jason Inc; Wayne Oldenburg, The Oldenburg Group;Sitting left to right: Louie Gentine, Sargento; Gail Lione, retired, Harley—Davidson, George Hoff, Sargento


a diamond is

forever

a message from lou gentineEvolution is never easy; however, in our case, evolution seems to suit us pretty well. During my years as CEO of this company, I watched the early stages of my father’s cheese stand blossom into a robust company with annual net sales exceeding $1 billion. The cheese industry has adapted to and graciously accepted our contributions to the market, and for that we are thankful. As CEO for 32 years, I have seen people come and go. But one thing has always remained the same: all of our employees have been great contributors to the growth of this company. Staying true to my father’s “hire good people and treat them like family” philosophy has given us the ability to build a workplace network that has included current and former Sargento employees and three generations of the Gentine family. To have that kind of relationship in my professional life has been a true privilege.

Though I stepped down as CEO, the company will be in very good hands. My son, Louie, has taken the reins to thrust Sargento into a bright new era. He will oversee more innovations and technological advances, and even more delicious products. I look forward to what lies ahead.

I would like to take this opportunity to thank everyone at Sargento who’s made this a special place to work. I have enjoyed every minute of it, and am grateful for all the people who helped make the company what it is today.

Lou GentineChairman of the Board

Documents

2013 Corporate Report: Sixty Years of Excellence...perfection. But as we all know, no diamond starts out sparkling. As we at Sargento celebrate 60 years – our Diamond Jubilee –