American Culinary Federation- Baltimore Chapter MeetingDecember 9th, 2009

Meeting Itinerary: Fresh Produce

The Class Produce Group

Seasonal Produce

Produce Events of the Past Decade

Produce Trends

About Class Produce Group

The Class Produce Group is a third generation family-owned and managed business which primarily services the Mid-Atlantic region of the country, with

increasing distribution north and south..

About Class Produce GroupHallmark products are tomatoes and bananas, also known for superior quality on a wide range of source packed and local grown products, and exceptional service levels.

We pride ourselves on being the supplier of choice for demanding retail and foodservice customers who require a consistent supply of quality fresh produce which leverages the advantages of local grown products, as well as products sourced across the U.S. and Internationally as needed.

We are an innovative company working with customers to build their produce program!

Additional Ideas; Fresh Cut Fruit

• Fresh-cut products• Foodservice packs• Retail type packs for

anytime grab and go snacks from your canteens

• Full range of packaged salads to individual single serve packs

Product receiving and incoming inspectionHandling to reduce waste and shrinkStorage; how to store products properly to reduce waste shrinkHow to lay out a cold box to maintain qualitySafe handling of fresh produceProduce prep in the kitchen

Benefits To Norwegian Cruise Lines – Training

• We have one of the leading foodservice trainers on staff: We can provide training to your staff, or your customers in conjunction with you, in the areas of:

We have a great corporate Chef on staff: Chef Paul Beaulieu • American Culinary Federation • Recertified in Nutrition and Sanitation fall of 2008• Taught Cooking classes for Share our Strength Program (American Express)

• Teaches an array cooking classes, menu development and kitchen prep. Chef Paul can work with you and your schools, restaurants

We can provide assistance in the areas of:• Menu ideas• New product application & usage ideas• Produce prep tips

Benefits To Norwegian Cruise Lines – Corp Chef Support

• Food Safety & Traceability: Class Produce Group is fully compliant with the latest Food Safety and Traceability standards.

• Our HACCP certification and other existing food safety procedures are second to none. Class has added a complete traceability program and a Country of Origin labeling program to our extensive safety policies. You can be assured that product purchased from Class Produce has been handled and graded according to strict standards and can be tracked all the way back to the farm level!

• Primus Labs Third-Party Audits: 91% audit obtained. Most recent audit was August 15, 2008. We will be undergoing another audit in the near future

Food Safety

Seasonal Produce

Winter

Winter is a great time to combine produce with products like locally grown grains and meats available all year round.

Beets Leeks PlumsCabbage Mushrooms Raspberries Carrots Onions Kohlrabi Celeriac Parsnips Apples Daikon Potatoes Kale (Greens)Garlic Rutabagas Winter Squash Horseradish Shallots Turnips Sweet Potatoes Artichoke

Golden Acorn SpaghettiSweet Dumpling ButternutBaby Blue Hubbard Green AcornTurban DelicataCarnival Golden Nugget

Types of Winter Squash

Chefs Rate Top Trends for 2010(Dec. 1, 2009) 1. Locally grown produce 2. Locally sourced meats and seafood 3. Sustainability 4. Bite-size/mini desserts 5. Locally produced wine and beer 6. Nutritionally balanced children's dishes 7. Half-portions/smaller portion for a smaller price 8. Farm/estate-branded ingredients 9. Gluten-free/food allergy conscious 10. Sustainable seafood

11. Superfruits (e.g. acai, goji berry, mangosteen, purslane) 12. Organic produce 13. Culinary cocktails (e.g. savory, fresh ingredients) 14. Micro-distilled/artisan liquor 15. Nutrition/health 16. Simplicity/back to basics 17. Regional ethnic cuisine 18. Non-traditional fish (e.g. branzino, Arctic char, barramundi) 19. Newly fabricated cuts of meat (e.g. Denver steak, pork flat iron, Petite Tender) 20. Fruit/vegetable children's side items

So What has Happened and What is going to Happen in Fresh Produce

• Mother Nature• Changes In The Market Place• Food Safety• Government• Competitive Forces

Explosive Fuel Costs

Consumers

Face higher or same prices

Retailers/Wholesalers/Distributors

Higher contract price levels, or greater percent of open market purchases

Growers/Producers

Better breakdown their costs of inputs and relate them back to total cost of goods, and impact on longer-term contracts with customers, Hit brick wall with their suppliers (cartons, chemicals, inputs, plastics, etc.), forced to take extremely firm stance on contract negotiations

Implications:

Organics and Local Grown

Why Organic Matters to Consumers

• They believe reducing pesticide exposure is healthier for them

• They believe that keeping chemicals out of the environment is better for the air, water, land and living things

• Consumers perceive organic food to be healthier

• 78% are buying more organic products on sale

• 69% are buying more organic products with coupons

• 32% are switching to less expensive conventional brands

Saving money is a priority, but it doesn’t mean consumers are trading out of the category. Only one in three plan to replace their organic purchases with less expensive conventional brands.

Growth Of Organics

Consumer:

Wider range of higher quality organic products increasingly available on year-round basis & range of value-added & bulk formats with more stable pricing

Retailers/Wholesalers/Distributors:

Ability to attract wider range of less price sensitive customers with an increasingly wider range of sophisticated suppliers

Growers/Producers:

Another targeted consumer segment, higher returns, deepened customer relationships

Implications:

Growth Of Organics

Total Organic Food Category Growth: 1997 to 2008

0

5,000

10,000

15,000

20,000

25,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Do

llars

(M

illi

on

s)

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

Org

an

ic %

of

Reta

il F

oo

d S

ale

s

Organic Sales (Millions) % of Retail Sales

15.8% Growth07 v 08

Growth rate has slowed from our 20 to 25% clip to 15.8% this past year, but is still at double digits despite the recession.

Local Grown

Local Grown Has Opportunity To Become Permanent Source In Supply Chain

WHY SOURCE LOCALLY?Economic Impact: Buying locally supports local economies.

Shorten Distance From Farm to Fork: reduce “Food Miles”, In the U.S., it is estimated that produce travels an average distance of 1,500 miles from farms to the homes of customers. This not only results in higher fuel costs, but can hurt rural communities where agriculture is the backbone of the economy, hence the term "Food Miles". This is why sourcing locally or as locally as possible can have profound effects on local economies and the environment.

What’s Next For the Industry

Foodservice Industry

Fresh-cut Category

Mother Nature

International Harmonization of Food Safety Standards & Systems

Labor Availability/Enforcement

Need to Have a Comprehensive Immigration Reform Bill

The Next Big Step In Seed Development Technology

Another Major Food Safety Incident

Harmonization of North American 3rd Party Audits & Universal Standards

International Adoption of Traceability Technology

Global Expansion of Businesses

Growing Affluence in Developing Countries

The Class Produce Group8477 Dorsey Run Road

Jessup, MD 20794410-799-5700

Sales: Call Jim Simonton at: 443-864-2923Contact: pbeaulieu@classproduce.com

www.classproduce.com

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