2 nd June 2008 Andy Stone Luke Elliott

1. Regional Food Procurement Workstream 2nd June 2008 Andy Stone Luke Elliott

2. Key points to cover: Introductions: • Andy Stone and Luke Elliott – National Account Managers – Education and Healthcare Brief overview of Brakes: • We are not just a frozen food wholesaler! • Our environmental and social responsibility Brakes view of ‘local’: • How Brakes source & the importance of ‘Peace of Mind’ • Local produce from local suppliers

3. Brakes Overview The company • 7000+ staff over 70 locations in the UK and France • Over 15,000 chilled, ambient, frozen, fresh, non-food and equipment products • Wholesaler of the Year 2007 – Grocer Gold Awards • Logistics capability • UK’s largest foodservice distribution network • A fleet of over 1600 vehicles • 30,000 deliveries fulfilled per day • 750,000 boxes moved per day • Satisfying the needs of 120,000 catering customers • Multi-temp; chilled; ambient chilled; frozen chilled • Day one for day two & day 1 for day 3 deliveries • Central/local stock/JIT as appropriate • Investing in technology for service and cost Voice Pick Satellite Navigation …A “right first time” commitment to service

4. Brakes Customers across all sectors & concepts Flexible and tailored to each customer’s need for differentiation

5. “Provenance and locally sourced product is an important part of our menu strategy and Prime Meats are able to support us in this requirement.” The Orchid Group “An absolute Aladdin’s cave for any serious foodie” Gordon Ramsey The wider customer offering at Brakes – the speciality businesses “M&J have the perfect set up - a superb product portfolio backed up by a professional team that understands what its customers need.”Restaurant Group Mitchells and Butlers “It was essential for us to choose a partner that through a high standard of product and logistical competency, could provide a service that offered value for money whilst causing minimum impact on our daily routine.”Cardiff Council “ Country Choice supplies all the individual ingredients - we just assemble each one piece by piece, so appearance is great and portion control is foolproof. ” Somerfield …Fresh & Specialist products to satisfy our customers needs…

6. Brakes adding value Food hygiene & sanitation Catering equipment Non food Retail concept Fine dining Concise range of leading brand hygiene and sanitation systems and products, developed specifically for foodservice Brakes working in partnership with Ecolab. Fully supported offering Extensive range of catering equipment – everything supplied to run a kitchen operation, including bespoke kitchen design & fitting Tableware including recognised names & quality own brand alternatives. To compliment our food offer - 850 everyday non food items selected especially for foodservice. Conveniently delivered with your normal food order. Unique retail concept developed to capture additional point of purchase sales opportunities Retail brandedwith supporting front of house POS. The finest products and ingredients Innovative delivery solutions The very best food available from Wild Harvest, Prime Meats, M&J seafood, Pauleys and Brakes. …Going the extra mile, adding value to your food offer

7. Brakes – the ‘supplier of choice’ Brakes brand Manufacturer brands Bespoke products Local provenance Frozen, chilled and grocery own brand, and PREMIERE ranges designed specifically for foodservice Award winninginnovative products Consistently high qualityfood delivering reliable performance An extensive rangeof well known brands offering customer choice Major producer of recipe dishes and desserts for foodservice Ability to produce bespoke customer products Award winning products Commitment to sourcing local food, delivering great products with regional appeal A portfolio of regional food from Wales, Scotland, The South West, East England and Kent …over 15,000 chilled, ambient & frozen products to meet customer needs…

8. Committed to Cost Sector business –£0.25bn across 77 Local Authorities Channel Business Director Ian Stuart National Account Manager Andrew Stone National Account Manager Tanya Downes Group Business Manager Corporate Influencable Neil Milbery National Account Manager Lester Ferguson National Account Manager Andy Holman National Account Executive Gill Plowman National Account Manager Stephen Wright National Account Manager Cathy Power National Account Manager Emma Santoro National Account Manager Luke Elliott National Account Executive Zoe Fraser National Account Executive Andrew Fletcher National Account Executive Barry John

9. Understanding the education sector Adapting to new laws Educating children Educating parents Eating environment Length of lunch break Market issues Competition Packed lunches Off-site purchases Meal skipping In-house pressures Government funding School budgets Staff training and development Food offer Product range for balanced menus Detailed product specifications Nutritional advice & support Sustainable/environmental …working together to understand your challenges

10. Using less energy • In 2006 Brakes reduced its consumption by 1 million KWh which is equivalent of providing light to 10,000 homes for a year • Energy usage is monitored every 30 minutes at each site • As of November 2007, 95% of the energy we use came from renewable sources • Our manufacturing sites signed the Food and Drink Federation’s Climate Change Levy Discount Scheme in 2001 and agreed to a 10% energy saving target over a period of 10 years • Many of Brakes products are developed with cooking efficiency in mind, enabling caterers to deliver quality food with minimal cooking and energy usage.

11. Reducing the impact of delivering to our customers • Brakes Supply Chain encourages the use of our 5 ‘consolidation centres’ throughout the UK and Europe. The benefits of these sites are that they reduce stem mileage (the mileage of supplying the products to us) for the supplier. • Unlike other additives, our bio-diesel is less toxic than table salt and biodegrades as quickly as sugar • Brakes increased the amount of vehicles using a 5% bio diesel mix within its network to 60%. This reduces CO2 emission by approximately 5% whilst increasing fuel efficiency by about 3%. •  Brakes new double-decker articulated vehicles enable greater loads to be carried through its supply chain. These vehicles have enabled a 25% reduction in fuel compared to single deck vehicles being used to deliver comparative goods • Brakes minimum order value encourages customers to order larger amounts on single deliveries • Route planning systems being tested currently are seeing up to 8% savings in fuel.

12. Reduce, reuse, recycle, recover • In 2007 Brakes committed to recycle 30% of all the waste generated • Brakes is currently undertaking promotional activity to its suppliers encouraging them to use 100% recycled cardboard (currently approx 65%) • Topless boxes - Brakes launched an innovative new style outer carton named ‘ the topless box’ that will potentially reduce cardboard use by over 20% from its most popular frozen products.  • Eco Boxes - Pauleys uses ‘ECO boxes’ which are reusable, durable and made from 50% rice husk and 50% plastic (of which 85% has already been previously recycled). • We have put in place a culture that encourages staff to follow the recycling code Reduce, Reuse, Recycle, Recover • Use of a totally recyclable mono-grade material for Brakes frozen and chilled food • All Brakes corrugated packaging is constructed from 65% recycled material • All cases are 100% biodegradable

13. Realising our goals – ISO 14001 • In 2008, we aim to achieve ISO14001 accreditation. In order to accomplish this, we are working with a pan-environmental consultant who will examine our current practices and assist us toward in reaching our goal • ISO14001 is an internationally recognised standard for environmental performance. This accreditation is awarded to companies that comply with all current legislation regarding the environment and demonstrates initiatives to decrease environmental impact within their own industries. It also requires companies to actively reduce their levels of pollution

14. Caring for the sustainability of natural resources • The sustainability of fish stocks is something Brakes/M&J Seafood takes very seriously • We are not supplying any species on the IUCN Red List of Endangered Species such as Orange Roughy, Mediterranean Blue Fin Tuna and North Atlantic Swordfish • The first foodservice supplier to carry products certified by the Marine Stewardship Council (MSC) – specifically accredited to suppliers who meet the MSC Standard for sustainable and well-managed fisheries • Brakes and M&J Seafood have continued to expand the range of MSC accredited products

15. Fish and Kids • In 2007 Brakes sold over 500,000 kgs of fish sourced from sustainable fisheries and certified by the Marine Stewardship Council. • Brakes now have a range of 30 MSC accredited products available to caterers • In partnership with DEFRA and the MSC Brakes has assisted in enabling over 3000 primary schools to join the initiative which includes providing educational materials and support around dwindling fish stocks, fish species and the environment that meets all relevant national curriculum specifications. • Brakes specific range of products for the fish and kids programme enables schools to offer their pupils a sustainable fish choice at lunchtime. The success of this programme now means over 1 million school children have access to MSC accredited fish.

16. Don’t just take our word for it: Our accreditations • Brakes is BRC accredited and only use suppliers who have the same or equivalent certification • Brakes was the first major wholesale distributor to carry the Assured Food Standards Red Tractor logo • Brakes was the first foodservice company to offer MSC accredited products and accreditation for its customers to use on menus

17. Supporting the community Brakes nominated charity : KidsOut • National Charity that brings fun and enjoyment to children who are disadvantaged or may have physical or learning difficulties • Brakes have donated £80,000 over two years for this cause and are dedicated to raising a further £120,000 Charity Sponsorship • Active supporter of the The Demelza House Childrens Hospice. In 2007 Brakes helped to raise over £100,000 • Brakes matches its staff charity fundraising

18. Supporting the community HITS • Brakes is the primary partner of the Hospitality Industry Trust Scotland, helping students joining the foodservice industry. Encouraging excellence in young chefs • Brakes Student Team Chef Challenge is the largest student cooking competition in the UK. Over 70 colleges enter the competition each year. Fare Share • Brakes works with Fare Share, a charity that distributes unwanted food to relevant community projects/charities. The food donated is product that would otherwise be sent to landfill. Walking Buses • Brakes launched three walking buses in Kent in 2007. Each walking bus encourages children to walk to and from school rather than their parents driving them. Each child is given a high visibility vest and information about road safety they then join the ‘bus’ (made up of parents and children as it follows its route to school).

19. How Brakes source – ‘Peace of Mind’ • Integrity is key: • All suppliers must be accredited • Rigorous internal auditing & traceability • Work in partnership with a select group of suppliers • Suppliers regularly appraised using our scorecard • Partnership allows us to plan ahead (eg crop / varietal development) ensuring Brakes lead • Group supplier forums to share best practice & keep ahead of industry issues • Brakes commitment to achieve customer facing industry accreditations, including: Red Tractor, Leaf, MSC, Freedom Foods, Organic, Fairtrade, Traidcraft, Impactt …Lead with Food Safety…

20. Brakes journey on the ‘local’ road • Initial reaction was panic! • Summer 2006, Brakes re-structured the operation, sales & supporting functions, into 4 independent regions • Control for managing customer needs, ranges & Brakes role within the local community was moved • All supported by central functions to ensure best practice • Any local activity encompassed by Brakes ‘Peace of Mind’ commitment • Brakes Sources 74% of its products (by value) from the UK. Brakes, tailoring our approach in a ‘local’ way …

21. An example The latest version for Kent & Sussex: • Brochure includes: • Information about Brakes’ role in the local community • Grower stories • Product highlights … all achieved within Brakes stringent commitment to “Peace of mind”

22. At M&J – the Maidstone branch example • 85% of product bought locally from the Kent & Sussex coastline • A small site hand preparing local fish, 24 hours a day, for Kent & Sussex chefs …Replicating our approach across the Group…

23. Sourcing Products for Milk & Cream • Dairy Farmers of Britain is a Co-operative Owned by farmers • Owned by 2200 dairy farmers • Produces 1.5 billion litres of milk per year, and processes 0.9 billion litres of milk per year • Continuous investment in plant, machinery & NPD. Whole and Semi Skimmed Milk are supplied to Brakes from our Fole site. Single & double cream are also produced at Fole for Brakes. Milk from Fole comes mainly from our dedicated local farmers across the Derbyshire, Staffordshire and Cheshire. Fole is accredited with Red Tractor, BRC Grade A, ISO 9001, ISO 14001& the Soil Association certificate Fole

24. Source of Product UK 43% Holland10% Rest of World18% France & Spain29% Sourcing British wherever possible

25. What does local mean to customers? • Some answers from Brakes customers: • Locally grown in the garden • Delivered from the local farm • Grown / made commercially within x miles • Delivered by a local wholesaler – not local product, but supporting business • Regional brand or variety, eg Jersey Royals • ‘Best in Season’ - British • What research tells us: • IGD (2005): • 63%, within 30 miles; 13% from home county; 8% British • Local Food Omnibus Research (1,508 adults, March 07) • 41%, within 10 miles!; 56% say Local is very / quite important, because: • Support local area; safety; know wherethe product has come from; fresher; best in season • Summary – confusion! …Definition is confused…

26. Considerations… • When buying from local / small producers: • Not every product can be grown locally • Offers a limited range & not available all year round • Local cannot always cope with variation in demand • Quality concerns • Wholesalers / farm shops: • Are not always the grower / producer • Product is supplied by a local business, but notnecessarily produced locally • No traceability / ‘peace of mind’ • Risk of price fluctuations • Whilst might deliver the same day, there is riskof high carbon footprint …consistency & availability challenges…

27. www.british.brake.co.uk

28. Summary • The lack of industry definition of ‘local’ has led to wide-spread confusion • It is imperative that we understand what our customers, & their consumers, want from the way their products are sourced • We must continue to ensure customer choice is reflected in our sourcing strategy • Brakes will continue to discuss with key customers, such as today’s forum, to understand where you want us to go • Savings/efficiences can be effected by utilising the existing delivery infrastructure ie. Consolidation across key commodities/product groups.