2013 Gordon Food Service®

U.S. Stewardship Report

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Gordon Food Service started out as a butter-and-egg delivery business in 1897, working with local farmers to ensure a steady supply of quality product to area grocers. This forged a deep appreciation for the land and the people who work it, and the customers and employees who serve them.

This has remained part of our corporate DNA for the past 116 years, as Gordon Food Service has grown to become North America’s largest family-owned broadline foodservice distributor. We have always assumed a responsibility to nurture the people and resources we impact as a normal course of our business.

That is why we recently formalized our approach into a concrete set of principles. In 2009, we developed our Stewardship Statements of Direction in response to a growing interest in sustainability on the part of our customers, employees, vendors, and communities we serve. During this process, we realized stewardship was a more accurate concept than sustainability in describing our company’s history, culture, and aspirations.

Our Stewardship Statements of Direction comprise three main goals. We want to:

• Ensure Corporate Sustainability

• Minimize Environmental Impact

• Promote Social Responsibility

This Stewardship Report intends to inform all of our stakeholders on our performance in these areas. This is the first in what will be an annual progress update. Stewardship is a journey, not a destination—so we always will be striving to do more and be better.

We are grateful to the ever-growing number of customers and vendors across the United States and Canada who have helped us extend our corporate sustainability. Sustained financial performance enables us to serve our customers, provide jobs, support communities, and make the environmental and social investments outlined in this report.

The Gordon Family

Dan Gordon Jim GordonChairman Chief Executive Officer

John Gordon Sr. John Gordon Jr.Vice-Chairman Emeritus Treasurer

TABLE OF CONTENTS

2 A Message from the Gordon Famliy

3 Enviromental Responsibility

•HomeOffice

•DistributionCenters

•GFSMarketplaceStores

•Transportation

•Food

7 Social Responsibility

•LocalPurchasing

•ProductSafety

•Employees

•Community

A MESSAGE FROM THE GORDON FAMILYGordon Food Service is a multi-generational family-owned and -operated business. Taking care of what we have been blessed with and passing it on to those who come after us embodies the Gordon family philosophy.

ENVIRONMENTAL RESPONSIBILITYStewardship is defined as “the careful and responsible management of something entrusted to one’s care.” We believe the planet has been entrusted to all of us to safeguard for future generations. Following are some of the most significant and recent steps we’ve taken to minimize our environmental impact.

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Home OfficeIn September 2011, Gordon Food Service broke ground on a new Home Office necessitated by an expanding workforce. The design, construction, and operation of the new building were driven by eco-friendly strategies set forth in the Leadership in Energy and Environmental Design (LEED) rating system. 2013 was the first full year of seeing and experiencing a sustainable building.

ENERGY EFFICIENCYThe Home Office’s geothermal well field stores excess building heat in the ground during warm weather. The heat is released back into the building during cold weather. The building automation system displays energy use and savings in real time, enabling quick adjustments.

“Envelope commissioning” assures thermal integrity by guarding against air leaks, while a daylight harvesting feature dims or shuts off lights as needed. These and other features help cut energy use in half compared to a building that simply meets code requirements.

WATER EFFICIENCYManaging water runoff naturally and planting native trees, grasses, and wildflowers helps reduce the water needed for irrigation by more than 80 percent. Low-flow plumbing fixtures save water indoors, as well.

WASTE REDUCTIONDuring construction, 85 percent of building project waste materials were diverted from landfills. Meanwhile, a comprehensive recycling program at the building includes a dedicated space for collecting and storing recyclables. Water bottle refilling stations throughout the building encourage the use of eco-friendly drinkware.

LEED is a green building tool that addresses the entire building lifecycle and recognizes best-in-class building strategies by awarding four levels of third-party certification. The Gordon Food Service Home Office was built to achieve LEED certification.

34% reduction in lighting demand as a result of daylight harvesting.

220 GEOTHERMAL WELLS

The Home Office has the largest private geothermal system in Michigan. This

enables the 384,000 square-foot building to be heated

without natural gas.

Refrigerated, filtered drinking water system has prevented over

water bottles from going to the landfill in one year.

2 5,

46% more efficient than energy code.

Managing water runoff has helped reduce the water for irrigation by

more than 80%.

of all construction-related debris was diverted from the landfill and recycled.

85%

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PEOPLE-CENTERED DESIGNNearly 1,200 employees moved from four office locations in Grand Rapids into the new Home Office at the end of 2012. The building features interior and exterior spaces that promote productivity and health.

Plentiful collaborative spaces nurture a sense of community and facilitate creative interaction.

Distribution CentersIn 2010, we began working with third parties to perform comprehensive energy analyses of our U.S and Canadian distribution centers. The reviews evaluated buildings, processes, automation, refrigeration, lighting, and employee behaviors. A series of Energy Conservation Measures (ECMs) were identified to guide us going forward.

Focusing on these measures, we have taken steps to appreciably reduce energy consumption at a number of facilities.

Abundant natural daylight and individual climate control ease workday stress.

Air-exchange ventilation and low-emitting building

materials help keep air clean.

We recycle cardboard, plastic, steel, aluminum, wood pallets, and waste oil, diverting tons of material from landfills in 2013.

16.2%

20111.08

kwh/case

20121.03

kwh/case

20130.97

kwh/case

-5.2%-6.5%

cumulative reduction in kwh/case from 2011-2013.

-5.5%

Continuous improvement through standard practices already has significantly reduced the number of kilowatt-hours the company uses to ship a case of product. This effort will be an ongoing focus for all facilities for years to come.

Refrigeration units have been equipped to cycle

down during utilities’ peak-demand periods.

■We use high-efficiency fluorescent

and LED lights.

Sensors turn lights off when

not needed.

ENERGY USED PER CASE DELIVERED

parking spaces for electric

vehicle charging.

parking spaces for low-emission vehicles (LEVs).

61 6

We’ve also made advances in water conservation and waste reduction at our Shepherdsville, Kentucky, Distribution Center. These best practices are now being implemented at other distribution centers in our network. Water treatment systems on refrigeration evaporator condensers save tens of thousands of gallons of water each day, and this allows each gallon of water to be used 3–4 times before going back to the treatment plant.

x 10,000’s/day Water treatment systems on refrigeration

evaporator condensers save tens of thousands of gallons of water each day.

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STRETCH WRAP (PLASTIC)All wrap is collected, baled, and recycled to make deck boards for new or remodel construction.

CARDBOARD All loose cardboard cases or slip sheets are collected, baled, and sold on the commodity market to be remade into other cardboard boxes or containers.

PALLETSAll damaged pallets are returned to a pallet vendor for repair or recycling.

STEEL AND ALUMINUMAll scrap steel and aluminum is gathered in open-top containers and sent to a metal recycling center where it is ground into usable pieces and sent to mills to be made into new products.

FLUORESCENT LAMPS All fluorescent lamps purchased for the Distribution Center are recycled through an EPA-accredited program, and tracked with certificates that they were recycled according to all government regulations.

WASTE OIL Waste oil is gathered in 250 gallon containers, sealed, and sent to a waste oil recycling company for reprocessing and reuse in other products.

DONATED FOOD PRODUCT When supply exceeds demand, Shepherdsville staff coordinates the donation of product to local food banks. These food banks will warehouse, process, and distribute the food to the greater Louisville-area food pantries, ministries, and other charitable sources. Donated products meet all food-safety standards but are not available for sale to customers.

ENERGY AUDITS AND ENERGY TRACKINGA comprehensive energy audit at the Shepherdsville Distribution Center resulted in a matrix of activities that could be done to reduce energy usage. Some were behavior-based and others were investments in new technology or programming changes to current systems. This all-inclusive approach has given clear direction on the big energy users in the Distribution Center and provides an energy-saving path moving forward.

GFS Marketplace® StoresFrom Marquette, Michigan, to Key West, Florida, Gordon Food Service proudly operates more than 160 GFS Marketplace stores. One by one, over the past few years, our stores have undertaken a number of sustainability initiatives, from switching to more energy-efficient interior and exterior lighting to installing occupancy sensors that automatically dim lights when not in use.

Upgrading the cooling and lighting efficiency of our refrigerator and freezer systems has resulted in considerable environmental benefits for the communities we serve, and financial benefits for our stores.

Spotlight on Shepherdsville

Gordon Food Service distribution centers practice a culture of stewardship every day. It has become part of our standard practice to avoid landfills and reduce energy through technology and good employee behaviors. The following are several ways our featured distribution center in Shepherdsville, Kentucky, is working to be a good steward of the environment.

Replaced rooftop heating/AC units with high-efficiency units resulting in

naturalgassavings.

Stores switched to more energy-efficient lighting and installed occupancy sensors.

32%

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TransportationMoving freight from our distribution centers to our customers requires a significant amount of fuel. We take advantage of ever-improving engine technology by annually replacing a portion of our delivery fleet with the latest fuel-efficient equipment.

• In 2013, we equipped all North American tractors with onboard computers that monitor vehicle performance. This enables us to measure acceleration, speed, braking, and idle time. We then use this information to counsel drivers to focus on behaviors that save fuel and promote safe driving.

• Our automated distribution centers convey product directly into trailers where it can be packed from floor to ceiling without pallets. This enables us to load roughly 200 more cubic feet of product than a traditional palletized load. The fuel savings have been so impressive, that even the distribution centers without these automated conveyor systems are manually packing more un-palletized loads because it is more efficient and sustainable.

• We reduced the number of trips to and from distribution centers by shipping full trucks through improved routing.

WE HELP CUSTOMERS CUT BACK ON FOOD WASTE.

On average, foodservice operators throw away 4–10% of the food they purchase before it even reaches a customer’s plate. That’s a lot of food and money wasted by overproduction, excessive trim, and spoiled or expired items.

We help customers take control of this pre-consumer food waste and boost their bottom line with LeanPath Food Waste Tracking Systems at a discounted rate, helping customers reduce waste economically.

The Markon® brand offers produce with consistently superior quality and food safety.

What you may not know about many of our Markon suppliers:• They practice crop rotation, energy conservation, waste and water

reduction, and recycling. • Their current initiatives include working to convert to greener modes

of delivery, reducing production emissions, decreasing shipping mileage, increasing organic and free-trade product lines, and providing excess product to food banks and nonprofit organizations.

• They have developed an award-winning system for converting onion waste into renewable energy.

• They provide on-site schools for the children of field workers.

• USDA-Certified organic products• Natural products• Wild-caught and farm-raised seafood• Cage-free and free-range products

• Grass-fed and grain-fed beef• Many more products from vendors

that practice sustainability in their own efforts

FoodWe have always insisted that our suppliers meet our industry-leading standards for food quality, safety, and traceability—and we’ve instituted sophisticated controls to ensure their compliance. As our customers have grown more interested in the sustainability of food production, we continue to respond with sustainable product offerings that meet customers’ needs and our safety and quality standards.

We offer our customers:

gallons of fuel next year across our Canadian and USA divisions due to MPG improvement.

We are on track to save

500,0002010

0.0562011

0.0532012

0.0492013

0.047

6.6% 5.1% 8.4% 2.4%

GORDON FOOD SERVICE NORTH AMERICA total gallons of fuel per case shipped:

15.1% 3-year cumulative gallons/case reduction

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Product SafetyWe are responsible to our customers and our customers’ customers for maintaining the highest standards of product safety, quality, and consistency. Our unique centralized approach to Quality Assurance ensures that best practices are universally applied at all distribution centers, preventing many common food safety hazards before they begin.

We are proud to say that:• The Gordon Food Service Quality Assurance Team is centrally located at the

Home Office, which enables traceability and recall management, product complaint investigations, and execution of consistent food-safety programs across the organization.

• A third-party independently audits every Distribution Center twice a year, ensuring strict adherence to food handling and sanitation standards, as well as established protocols for pest control and more.

• All private brand suppliers are required to undergo annual audits by authorized third-party organizations and are reviewed internally to ensure compliance with company standards.

• U.S. distribution centers are equipped with sophisticated cold-chain management technology that notifies personnel when refrigeration and freezer temperatures deviate from targets.

• Small orders or emergency requests from customers can be delivered to GFS Marketplace stores, maintaining product integrity and product safety.

Local PurchasingGordon Food Service knows firsthand the importance of supporting local businesses. We understand that many operators are looking for locally sourced products and we are intentional in our pursuit of making those options available when it makes sense for our customers, meeting our requirements for food safety, quality, and availability of supply. NearBuy® is one way we empower customers to support their local communities.

NearBuy reports many suppliers and products within defined parameters, from geography, and/or product offering, and/or production parameters, including supplier headquarters, manufacturing location, and predominant ingredient state of origin.

Being a good steward means caring for people and the planet. Gordon Food Service continues to invest in the welfare of our employees, customers, suppliers, and the communities we serve. Following are some of our most recent social initiatives:

SOCIAL RESPONSIBILITY

Customers can determine what local means to them

—region, state, ZIP code— and purchase accordingly.

We also include employee counts to provide a broader understanding of the human impact of product choices.

We maintain the highest standards of product safety, quality, and consistency for

all of our private brands.

BRAND STANDARDS

The NearBuy program makes it easier to identify

local purchases using a comprehensive, vendor-supplied product-source database. Customers can

request reports of supplier headquarters, manufacturing locations, and predominant ingredient state of origin.

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EmployeesEMPLOYEE SATISFACTIONRegular employee satisfaction surveys enable everyone in the company to share opinions on working conditions, compensation, benefits, and more. Department leaders are tasked to create action plans addressing any issues that come out of the surveys.

We also provide ways for employees to share more immediate concerns.

• An Integrity Hotline allows employees to share information anonymously.

• A Care Partner program, modeled after the army chaplain corps, ensures compassionate support for personal and professional matters.

EMPLOYEE TRAINING Gordon Food Service invested a great deal in employee education and training in 2013, as we prefer to promote from within whenever possible. Our Leadership Development Program helps employees assess their skills and offers a curriculum of courses and materials to strengthen leadership abilities.

EMPLOYEE BENEFITSWe believe in investing in our employees, as well as offering competitive benefits to recruit talent. Many programs are offered to employees, in addition to health insurance, life insurance, disability, etc.

• LiveWell incentive for achieving health goals

• On-site health screenings for employees and spouses

• Tobacco cessation program with a $200 incentive

• Weight Watchers reimbursement of $150, paid once every 3 years

• Tuition assistance for employees, spouses, and their dependents

• Adoption assistance

94% arehappywiththeirbenefits.

96% ofemployeesareproudto

workforGordonFoodService.

90.9% 2012 Retention Rate

(U.S. Distribution)

87.9% 2013 Retention Rate

(U.S. Distribution)

of employees are satisfied with Gordon Food Service,

up 1% since 2009.

81%

like their jobs and the work they do.91%

would recommend Gordon Food Service as a good place to work.93%

41%of employees received the LiveWell Incentive in 2013.

$521,535 was paid back to employees for achieving their LiveWell goals in 2013.

GordonFoodServicecontributed

$1,041,812 toemployeeHSA accounts.

Gordon Food Service employees pay an average of a $43 weekly premium

for PPO Plus healthcare and dental compared to the national average of $82. According to the Kaiser Family Foundation

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EMPLOYEE SAFETYWith more than 1,600 drivers on the road delivering products to customers, transportation safety is a vital concern.

• Onboardcomputersystemshelpmonitordriverbehaviors.

• Atransportationmanagerridesalongwitheachdrivertwiceayear,observing safety performance and suggesting improvements.

• Driversarerequiredtoattendquarterlysafetymeetings,andareeligibletoreceive a safe-driving bonus.

Gordon Food Service U.S. Safe-Driving Miles Percentage(all cars, vans, trucks miles/collision)

U.S. Warehouse Safe Work Percentage

2010 2011 2012 2013

DIVERSITY & INCLUSIONIn 2012, we hired a Director of Diversity & Inclusion, and developed a Diversity & Inclusion vision statement to guide our efforts. We have created action teams in each division and have commenced cultural intelligence training for all leaders. We recently completed our first Diversity & Inclusion survey of employees, and we will use the results to drive improvement in our processes and procedures. One of our first goals is to raise awareness of Gordon Food Service across diverse audiences.

women in U.S.

leadership roles.

282 73minorities

in U.S. leadership roles.

GordonFoodServiceemploysover

1,700minoritiesandnearly3,000womenintheU.S.

In2013,GordonFoodServicewasagainrankedinthetop 5% ofU.S.-ownedcompaniesthatmadegenerouscompanycontributionstotheiremployees’retirementaccounts.

$6,540 was given in

Weight Watchers reimbursements

in 2013.

Employees who choose to adopt can receive up to

$4,400 in adoption assistance.

$5,200 was kicked back

to employees for tobacco

cessation support.

$1,633,589 was given back to U.S.

employees and their families for tuition reimbursement in 2013.

97.7% 97.9% 97.0% 97.3%

2010 2011 2012 2013

89.8% 87.7% 91.1% 91.0%

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In 2013, Gordon Food Service partnered with Hope Network, a non-profit organization founded in 1963 to provide a greater level of independence through Specialty Health and Community Services. They have a broad range of clients, including people with cognitive and physical disabilities.

Together, Hope Network and Gordon Food Service developed the Employment Solutions Academy (ESA). This was a direct result of our ongoing involvement with the Hope Network Business Council. This program is the first of its kind in the Grand Rapids area and Gordon Food Service is the first company to adopt this opportunity!

THE PURPOSE OF THE PROGRAM AND GORDON FOOD SERVICE’S ROLEThe purpose of the Employment Solutions Academy is to provide interns with hands-on experience in areas that fit their abilities, which in turn provides them with more inclusive opportunities to gain permanent employment as they pursue career opportunities. The ESA program is fully funded by Hope Network and its donor community.

HOW THE INTERNSHIP PROGRAM WORKS Over a six-month period, interns perform work in assigned departments and are guided by Hope Network Job Coaches. Acting as a liaison between the interns and managers, Job Coaches provide guidance for the interns and assistance for the Gordon Food Service managers.

A typical day in the life of a Hope Network intern at Gordon Food Service starts in a newly-built classroom, located in the Home Office. In the classroom, Job Coaches teach interns a variety of things such as proper social skills on the job, how to handle questions and issues in the workplace, how to balance a checkbook, and other life/career skills. Classroom learning is then followed by work in their assigned departments for a short work day, and then the interns return back to Hope Network.

GRADUATIONThe 2013 pilot program concluded with a graduation ceremony and celebration for 14 interns!

Gordon Food Service and Hope Network were so pleased with the results that the program will begin again in March 2014.

Spotlight on Diversity & Inclusion

Diversity and Inclusion at Gordon Food Service Brings New Opportunities in 2013

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CommunityCOMMUNITY SERVICEWe support the welfare of the communities we serve and maintain a legacy of charitable giving in many ways. We encourage our divisional business units to get involved in their communities by promoting employee volunteer efforts and fundraising partnerships.

FUNDRAISERS• Gordon Food Service Canada partnered with Habitat for Humanity and raised

enough money through employee contributions to build three homes in 2013.

• Home Office employees can elect to wear jeans on select Fridays for a minimum of $2, which goes toward a different charity each time. In 2013, employees raised $17,011 for local charities.

On a corporate level, we seek to help those in need in many different ways, from gifting money to donating product to local food pantries.

FOOD DONATIONS Food products that are no longer available for sale to customers but meet all food safety standards are donated to local charities, decreasing the load on landfills. In 2013, 8,208 pallets of food were donated to charities throughout the Gordon Food Service distribution area. Charities include Dare to Care, Second Harvest Food Bank, Feeding America, The Sharing Center, and many more. In addition to these food banks, Mel Trotter Ministries received over $1 million in food product donations.

DOMESTIC AND INTERNATIONAL AID The Gordon family also has matched employee contributions to disaster relief causes around the world.

• Through employee donations and a company match, $19,130 was raised for Oklahoma Tornado Relief to help victims.

• Through employee donations and a company match, $29,074 was raised for victims of October 2012’s Hurricane Sandy.

• Through employee donations and a company match, $27,895 was raised for the victims of November’s Typhoon Haiyan in the Philippines.

On an international level, the Gordon family has chosen to help others in need through organizations such as CURE International and International Justice Mission by helping those that are not able to help themselves.

Charitable giving is one of the most important ways we demonstrate the principle of stewardship, and ultimately it is one of the primary purposes of our family business.

$17,011 donated to

charities from

Charity Jeans

Days.

GFS Canada raised enough funds to build

3 homes with Habitat for Humanity.

Organizations that have benefited in the past year

include Habitat for Humanity, United Way, Race for a Cure,

Angel Tree, Bethany Christian Services, and many others.

$29,074 for victims of October

2012’s Hurricane Sandy.

$27,895 for the victims of November

2013’s Philippines Typhoon Haiyan.

$19,130 for victims of June

2013’s Oklahoma tornado.

CURE is a network of charitable hospitals and surgical programs that delivers life-changing medical care to children and families with treatable conditions. Since 1998, CURE hospitals and programs in 29 countries around the world have seen over 2.1 million patients, performed over 150,000 surgeries, and trained over 6,600 medical professionals.

International Justice Mission is a human rights agency that brings rescue to victims of slavery, sexual exploitation, and other forms of violent oppression. IJM lawyers, investigators, and aftercare professionals work with local officials to secure immediate victim rescue and aftercare, to prosecute perpetrators, and to ensure that public justice systems—police, courts and laws—effectively protect the poor.

FOOD DONATIONS

8,208 pallets of food donated in 2013.

Printed on paper containing a minimum of 10% post-consumer waste fiber©2014 Gordon Food Service® • (800) 968-6474 • gfs.com022014/47473