2020

RETIREEUPDATE

& Affiliates

A quick look into2020 company newsand retirements.

NEWS & UPDATES

One highlight I look forward to each year is theopportunity to reconnect with many colleagues who have retired over the years from Colony Brands while also saluting those who are celebrating their own transition into retirement. Our annual retirement gathering is, beyond any other, an event that shows who we are at Colony Brands. Enjoying an evening with retirees from various backgrounds and eras is a real treat and will be just another in a long line of sacrifices we are all making in order to stay healthy and slow the spread of the coronavirus. While it’s very unfortunate that we can’t gather and catch up with one another this year, please know that we are together in spirit and eagerly looking forward to the opportunity when we can safely celebrate our new retirees and thank our many retirees from previous years for helping us build what is truly a very special company.

Our year began with early warn-ing signs from our Global Sourcing office in Shang-hai as we began to hear and see the impacts on

our supply chain from the COVID-19 virus sweeping across mainland China. What began as a threat to our overseas imports quickly evolved into a full-blown pandemic that put our entire business on the line in early March. Our operations facilities reacted early, implementing social distancing, staggered schedules, enhanced sanitation, face masks, and a host of other safety measures, all designed to keep people safe by keeping them apart and with the health and well-be-ing of our workforce in mind.

Our office staff was largely sent home in mid-March and will remain in a work-at-home environment until sometime next year. Our IT staff did an amazing job of beefing up our network capaci-ty and security on short notice and providing essential training and equipment to make the home office experience more efficient and effective. We also successfully transitioned roughly 400 agents in our call centers to home environments and managed to meet the expectations of our customers and maintain efficiency throughout the transition as well.

Our fulfillment teams have done a fantastic job of adapting to our new work environment and have posted some amazing

efficiency numbers for several months running. With big changes to processes, layouts, and workflow, these teams still managed to raise their game and hit some amazing levels of productivity, well beyond anything we’ve seen for quite some time.

In our food manufacturing and packing areas, which have probably undergone some of the most radical transformations in workstation setup and safety, our teams continued to manufacture and pack both our Spring and Fall product and made great progress getting us ready for our peak season while focusing on both employee safety and our high standards of food quality that our brands are known for.

Our strong financial position across our business was critical in giving us time and options to work through the constantly changing scenarios our departments were facing, and to keep our teams fully staffed and operating. While many competitors were announc-ing layoffs and furloughs, we were able to keep our teams together and continue to offer annual raises and bonuses. Running a tight ship, no matter the weather, pays off when the seas get rough, and this is clearly one of those years when this has made a tremendous difference, not only for this year but for our future as well.

Bob ErbPresident & CEO

Colony Brands, Inc

SALES UPDATE

The roller coaster of 2020 has been stomach-turning and exhilarating and still has a few twists and turns left before we can climb off this ride and catch our breath. As the country went into lockdown mode in mid-March, our sales across the board cratered. All brands experienced a steep falloff in sales, and our apparel brands were hit particularly hard as customers faced ‘shelter in place’ orders and fears of an economic collapse became very real. Our teams took immediate action to take risk off the table, both in Spring by reducing mailings while building conservatism into our credit underwriting process, and also by reducing expectations for our Fall season by more than $50 million in sales. By mid-April, our non-ap-parel brands climbed off the canvas and began to rally, and our teams again took action by putting some late-Spring mailings back on the table and added a small dose of optimism back to our plans for Fall. As Spring sales continued to remain hot, we raised our Fall expectations again, and then once more as the ‘Spring surge’ stretched into summer. What was once an ex-pected sales reduction for Fall of 10%-20% ultimately narrowed to around a 5% drop-off in our budget, and our latest projections show demand running nearly 15% above last year’s level.

Our digital advertising efforts have been very successful, with more eyeballs than ever online and scores of consumers looking for home delivery options for needed products. We have seen tremendous demand for ‘at home’ products like exercise equipment, kitchen essentials, freezers, do-it-yourself supplies and other items that fit the ‘quarantine lifestyle’. Our teams have been chasing inventory to keep pace with the needs of our customers for these products and are smartly beefing up these items in our assortment for the Fall season. Our strategy for Fall also called for reducing margin-al catalog pages and consolidating more of our efforts into a narrower assortment while building strong inventory levels on key products. Although we expect to be pushed to the limit this Fall to maintain acceptable order fill rates and delivery timetables, we hope that our efforts will be on the mark and we will successfully ‘Deliver the Magic’ again this Christmas.

MARKETING/BRAND UPDATE

Although the pandemic environment has had our teams very focused on short-term challenges, we haven’t forgotten about planning for the future. We have worked as hard as ever to bring new ideas to the table and are continuing to ramp up our efforts to develop new solutions for our customers.

Among the concepts you will likely hear more about in the future are enhancements to our personalized product offerings, along with a range of independent living solutions for older customers marketed under the BwellNow name but on the Ginny’s platform.

We are also in the early stages of an expansion of our offerings for pets, which will hopefully meet the needs of customers, many of whom have relied on their ‘furry friends’ like never before to ease the challenges of isolation over the past several months.

Lastly, we have developed another program for our credit customers that allows them, for a small monthly fee, to protect or eliminate their account balance in the event they experience challenges such as job loss, hospitalization, or other obstacles that make it difficult to meet their financial obligations. This could be a very timely and appropriate program for many of our customers who know all too well the challenges that can impact their finances and may be open to options that help them take care of their affairs in the event they fall on hard times.

PEAK SEASON PREVIEW

Our Holiday season in 2020 will be as tough as we’ve ever faced at Colony Brands. With the coronavirus pandemic as a backdrop, every other challenge ahead of us is just that much more difficult. Strong sales expectations along with volume restrictions from our outbound carriers will test our operations like never before. Labor shortages in our fulfillment centers will put an even greater demand than normal on our office staff to help us meet our delivery expectations. The potential for sustained high unemployment puts our credit business at risk as our customers face difficulty paying their bills on time. Inventory levels, diminished by the Spring sales surge and affected by disruptions in our supply chain, will impact our ability to fill our customers’ orders as often as we’d like to, and we may disappoint those that wait too long before doing their Holiday shopping. The pit-falls this Holiday season are many, and it will take everything our teams can muster to get us to the finish line in solid shape and with good momentum heading into next year.

Bob Erb - President & CEO (During Filming of 2020 Corporate Update Messages)

This has truly been quite a year. I’m pleased that we have landed as my replacement a terrific Chief Financial Officer in Tom Newell, who comes to us with a wide range of experience in public accounting and audit, technology, retail, and direct-to-consum-er operations. Tom joined us in early April and has done a fantastic job learning our diverse business operations from his home office environment and is eagerly looking forward to the opportunity to spend time in the office when we are able to return safely.

Transitioning to the role of CEO this year has been interesting, to say the least. The already daunting challenge of following in the footsteps of our long-standing and outstanding CEO John Baumann was made more than a little more difficult by the corona-virus pandemic. Some have expressed their sympa-thy for my first year being “ruined” by this ongoing crisis, but it has provided the opportunity for this team to learn something about me, and for me to learn something about this team.

My goal for this year was, first and foremost, to foster a strong sense of urgency to attack our business problems head on and with a mindset that was relent-lessly accountable to all our stakeholders. Beginning early this year with our strategic planning sessions among the executive staff, and then shifting into high gear as the coronavirus spread throughout the coun-try, all our teams stepped up and leaned in to protect each other and our business with a commitment that was truly awe-inspiring. What I learned very quick-ly was that no single person can make or break this business – what drives us forward, always, is a shared purpose and commitment that just gets things done the ‘Colony Brands’ way, and every single one of us

should be proud to be a part of that.

I also learned quickly that no one was expecting me to be anyone other than who I am, and their willingness to give me a chance to lead the way through this darkness has meant everything to me. I’m no poet and I’m no Picasso, but I care about this business and I care about our employees and our communities, and sometimes with enough hard work, a little bit of luck and the support of those

around you, that can be enough. I don’t want more years like this one, but I wouldn’t trade the accom-plishments of this team and the pride we all share in what we’ve done together for anything. Facing these challenges together has been incredible to be a part of and something we will often remember as a special chapter in the long and distinguished history of our company.

I would like nothing more than to be able to congrat-ulate every one of this year’s honorees in person, but this is a year unlike any other. It has been disappointing to be unable to say goodbye properly in the midst of the circumstances we are facing, but what I can tell you is that the heart, soul, and spirit that you helped build at Colony Brands are alive and well in the team you leave behind as you begin your well-deserved retirement years.

This ‘class’ of retirees will always be special to me, both because this is the first group I have had the chance to honor as Colony Brands’ CEO, but also because of the special bond we all share as part of the team that kept this business together and moving forward. I’m honored to be a part of this team and so sad to see so many great people end their careers on such a note. Rest assured, however, that there will come a time when we are together again and able to show our gratitude for all you have done for each other, for our team, and for Colony Brands. Congratulations to our retirees of 2020 – your contributions for so many years of service are appreciated, and your support during this final crazy but special year will never be forgotten.

2020 RETIREE HONOREES

Laura Bader began her career in the IT Department in 1994 where she remained until her retirement. She and her husband, Ed, will reside in North Carolina. They have two children and two grandchildren. Laura enjoys golf, reading, crossword puzzles, cooking and baking. If COVID ever gets under control, Laura will be traveling with a European river cruise first on her list.

John Baumann began his career as a temporary employee in Mailing and Computer Operations while still in high school. In 1985 John returned full-time working in the Marketing Department and in Advertising and Consumer Research. In 1987 John was promoted to Director of Marketing, and after several more advances in Marketing, he was promoted to President of Colony Brands, Inc. in 1996. John now serves as President of the Colony Brands Foundation. John and his wife, Katie, live in Monroe and he has three stepchildren and three step-grandchildren. John will be playing a lot of golf in his retirement and eventually doing some traveling.

Vanita Baumgartner began her career in 1996 working in Quality Assurance, Cheese Ops and most recently as Director of our Bakery Operations. Vanita and her husband, Rich Nagy, reside in Brodhead. They have one child. Retirement plans include RVing, horseback riding and biking.

Ruth Bergemann started in Data Entry in 1973 working on Basic Educational Opportunity Grants. From there she worked as a Tape Librarian, Mainframe Operator and then in 1988 transferred to the Circulation Department which became part of IMS in 1997. She remained in IMS and retired as a Senior Customer Acquisition Coordinator. Ruth and her husband, Gordy, reside in Monroe and have two children and one grandchild. Ruth enjoys reading, gardening, crafts and sewing and would love to visit as many national parks as possible and possibly go back overseas – especially to Switzerland!

Don Berger began his career in our Accounting Department August 31, 1987 where he retired as an Executive Director. Don and his wife, Mary, plan to remain in Monroe. They have two children. Don has no special plans at this time, but does enjoy benchrest shooting, woodworking and metalworking.

Marjorie Blum started in 2009 and retired from Home Order Taking. Kim Cherrey started as a seasonal employee in Order Corrections in 1974. After the “season” he was brought back as a full-time employee and worked in Messenger Services and the Print Shop. In 1977 he transferred to Computer Operations where he remained until retirement. Kim and his wife, Marj, reside in Monroe and have two children, four grandchildren and two great grandchildren. Kim plans to spend time with the kids and grandkids and hopes to start playing guitar again.

Wendy Cline first worked as a seasonal employee in the Bakery in 1978. In 1981 she returned as a seasonal and was then made full-time. Since 2014, her time was divided between the Bakery and Cheese Ops. Wendy lives in Brodhead and has three children and eight grandchildren. Because of COVID, Wendy’s travel plans have been put on hold. She spent the first few months of retirement homeschooling grandkids – what an eye-opening experience! She has also been doing a lot of cake baking and gardening.

Kevin Finkenbinder began his 20-year career in the Print Shop in 2000. Kevin and his wife, Cheryl, have two children and two grandchildren with another due to make his/her appearance in October. When traveling is safe again, Kevin has a list of places he wants to visit – Costa Rica (birding), Finland, New Zealand (Aurora Borealis), and both U.S. coasts to help with cleaning up the beaches. In the meantime, he is spending a lot of time flower gardening, working on antique clocks and playing trumpet. Kevin’s immediate goal is to catch nine months of sunrises with a cup of coffee in his hand.

Rudy Gerber started in 1982 and retired from the Bakery.

Susan Gratz started as a temporary employee in Resource Planning in 1983 and became full-time the following year. In 1991 she transferred to Monroe Fulfillment Receiving. Sue and her husband, Tim Schroeder, live in Monroe. Sue has one son and her first grandchild is due to arrive in March 2021. During the pandemic Sue will be watching the Badgers, Packers and Brewers whenever possible, tending her flowers and visiting old friends. When it’s safe she would like to do some traveling, especially to see her son’s family.

Larry Green started in 1989 as a PC Programmer with IST. When IST was sold, Larry became aProgrammer in S&P Data Warehouse until retirement. Larry and his wife, Sharon, live in Monroe and have one daughter. Larry’s first priority is to survive COVID-19. He also enjoys golf and woodworking.

Margarett Hammill started as a seasonal employee in the Davenport facility in 2004, then transferred to the DeWitt facility, and was working in the returns area in Clinton upon her retirement. Maggie and her husband, John, reside in LeClaire, IA and have two children and five grandchildren. Maggie loves gardening, reading, puzzles and traveling. They haven’t planned any trips this year because of COVID, but hope to do some traveling next year.

Rob Hodgson worked one season as a temporary employee in 1981 before becoming full-time. He worked in Madison Packing, Mauston Packing, Monroe Packing and lastly in Monroe Fulfillment. Rob and his wife, Colleen, reside in Monroe and have three children and two grandchildren. Rob will keep busy gardening, fishing, hunting, woodworking, spending time in northern Wisconsin, and traveling when it is safe to do so.

Dianne Holmes started in 2007 as a full-time employee in CID. Dianne and her husband, Stephen, reside in Monroe and have three children and three grandchildren. Dianne plans to find a job, shoot pool, go on walks, put puzzles together and play games.

Joe Hunter started as an HR intern in 1984. Joe worked his way up through the ranks of HR and Operations and retired as the Chief Operating Officer and Sr. VP of Human Resources. Joe plans to enjoy his retirement by visiting national and state parks, off roading, hunting, gardening, frequenting his family farm, doing more photography, and spending time with family.

Deb Johnson started as a full-time employee in 1973. She worked in SCDC, Data Control, SC Stores Office and most recently in Corporate Purchasing. Deb and her husband, Gary, live in Monroe and have two sons and two grandchildren. Deb is interested in volunteering, flower gardening and cooking. At this time they are only traveling to Arizona to visit their son’s family.

Terry Johnson started in 1986 and retired from Mailing.

Jean King has worked in the Bakery since she started in 2001. She and her husband, Allen, live in Shullsburg and have three children and four grandchildren. Jean plans to work part-time.

Sharon Klein started as a temporary employee in our Cassville Call Center in 1988. In 2001 she transferred to the Dickeyville Contact Center. Sharon and her husband, Steve, live in Cassville and have four children, thirteen grandchildren and one great grandson. Besides relaxing, Sharon loves to read and spend time in her huge garden. She would also like to do some traveling once COVID is under control.

Bonnie Kuhse started in 1995 and retired from Monroe Contact Center.

Julie Miller started as a temporary employee for WATS (outgoing calls) in 1978 and 1979. She then worked seasonally in the Bakery through 1987. In 1990 she returned and worked in the Credit Department which eventually became DM Services. Julie resides in Monroe with her two cats. She plans to do volunteer work and home improvements. She also enjoys going to concerts, dancing, reading and plants. Once the pandemic ends she looks forward to visiting family and friends.

Dave Moon began his career in 2000 and worked in Green County Foods, Merchandising and most recently in IMS Internet. Dave resides in Monroe and plans to golf and travel to Mississippi and Florida in retirement.

Kimberly Morrow started in 2000 and retired from Sun Prairie Fulfillment.

Crystal Paige started in Monroe Production in 2004 and most recently was a QA Inspector. Crystal lives in Lena and has three children, seven grandchildren and eight great grandchildren. In retirement, Crystal plans to just enjoy the life she has been blessed with.

Bill Ritschard started as a temporary employee in Monroe Fulfillment and after one season was made full-time. Bill worked with both our food and non-food businesses as well as doing fulfillment for many third-party companies. Bill and his wife, Sara, live in Monroe and have three sons and three grandchildren. He plans to work part-time in 2021 and do a lot of golfing. When his wife retires in a few years, they plan to head south for the winter.

Andy Romanski started in 1996 and retired from Maintenance.

Pam Rote started as a seasonal employee in Special Buyers. After the Christmas season 1990, she transferred to Accounts Receivable and in April 1991 transferred to Purchasing and most recently was a Sourcing Manager in the Food Supply Chain Department. Pam and her husband, Richard, live in Davis, IL and have two children. Once it is safe to travel again, they plan to travel the U.S. and overseas. In the meantime, Pam keeps busy with her hobbies of reading, cooking, watching movies, seeing her children, visiting family and enjoying her 4-year old Boston Terrier, Cam, who has kept them entertained during their safer-at-home experience.

David Rygh started in 1997 and retired from the Bakery.

Susan Sack started in 1987 and retired from the Bakery.

Ginny Severson started in 1974 and retired from the Bakery.

David Silbaugh started as a full-time employee in Bakery Maintenance in 1991. David and his wife, Diane, live in rural Monroe and have eight grandchildren. Currently Dave is spending his time making a secluded camping area on his property.

Sharon Stevenson started in 1998 and retired from Home Order Taking.

Dawn Stocker has worked in the Bakery since 1979. She and her husband, Joel, have three children and six grandchildren. They have moved to Chetek, WI where they are the owners of Shady Grove Resort. Dawn enjoys fishing, crocheting, gardening, playing cards and visiting with their campers. They will also be traveling to see their grandkids.

Steve Suelflow began his career as a full-time employee in Systems & Programming in 1987. Steve and his wife, Josie, are planning to relocate to Oconomowoc in September. They have four sons and two grandchildren. In retirement Steve plans to spend time with his grandchildren and hike in national parks.

Pamela Zastrow started in 2004 and retired from Clinton Fulfillment.

Marilyn Zentner was a seasonal home typist in 1971. In 1984 she came back to work for SC Stores and after only two days interviewed and was hired for a full-time position in Accounts Payable. Most recently she worked in Cost Accounting. Marilyn resides in Monroe but spends the month of January in Georgia. She has four children and three grandchildren. Marilyn just wants to stay healthy and enjoy life wherever it takes her.

RAY KUBLY ACHIEVEMENT

AWARD WINNER

Dan Bailey

Colony Brands congratulates Dan Bailey as the 2020 recipient of the prestigious Ray Kubly Achievement Award.

Dan has worked for the company for fifteen years and is originally from the west side of Chicago, IL. While Dan embodies the spirit of many of the valuespracticed at Colony Brands, his quiet approach to achieving excellence stands out. (continued on page 9)

Dan is well known around Colony Brands for his talent, hard work and humbleness. As an art director for Ashro, Dan has excelled as a systems visionary, a technology expert and a genuinely nice guy. All these things keep Dan very busy, but they never keep him from honoring others with his time, knowledge and patience. When coworkers are having technology issues, he always stops what he’s doing and helps. When systems aren’t working, Dan is the first to step in, get to work and come up with a new way of doing things.

The Ray Kubly Achievement Award also recognizes Corporate Honors and Corporate High-Performance recipients. Those employees recognized in 2020 include:

Corporate Honors: Larry Kloepping, Yang Yang, Megan Knox, Alycia Preston, Alyssa Lahr

Corporate High – Performance: Sam Butts, Sheila Macomber, Julie Kielty, Gerry Grimm

2020 MILESTONE ANNIVERSARIES

25 YEARS

Dan Berg - Systems and ProgrammingCheryl Blosch - IT OperationsCorrie Flannery - List ServicesHerschel Jackson Jr - MailingDebra Jensen - Systems and ProgrammingKaci Nall - InternetJean Schoville - Dickeyville Contact CenterLauri Teutschmann - BenefitsDeb Wooton- Home Order Taking

30 YEARS

Shirley Ackerman - Home Order TakingDavid Block - BakeryJoAnn Colden - Monroe Fulfillment CenterJulie Genin - Creative Marketing ServicesRuth Hebeler - Clinton Fulfillment CenterKerry Hinton - BakeryTheodis Jones - BakeryMatt Krattiger - Open SystemsGrace Kufahl - Contact Center AdministrationJacqueline Lincoln - Contact Center AdministrationSheri Meritt - BakeryDarrell Oberman - Clinton Fulfillment CenterCindy Rekenthaler - Clinton Fulfillment CenterMarcia Schmitt - DMS - ClintonMo Stites - Creative Marketing Services

35 YEARS

Betty Anderson - BakeryPenny Bartosik - BakeryDoris Bechtolt - Order ProcessingBryan Buri - Non Food Systems and SupportCathy Crubaugh - Creative Marketing SystemsDeb Davis - Brand ManagementEric Diemer - MaintenanceAddie Fulton - Creative Marketing SystemsMary Kloepping - BenefitsJulie Kruse - BakeryRoger Leu - Print ProductionKatherine Spring - BakeryMike Tonstad - Order ProcessingTami Wedig - SCDC AdministrationTim Williams - AccountingShirley Wirtjes - Food Supply Chain

40 YEARS

Sharon Buri - Quality AssurancePeggy Frint - Non Food MerchandisingLorie Hanson - BakeryBill Holland - MaintenanceLinda Liphart - BakeryHong Lu - BakeryLaurel Schliem - Marketing

45 YEARS

Judy Fowler - Accounting