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					                         Unwrap Fresh Marketing Ideas
                   White Paper from June 2003 Naarden Meeting


Overview:

The NatureWorks™ brand is capturing shoppers’ attention and loyalty as they seek to provide
natural, wholesome and convenient meal solutions to their families. Consumers prefer fresh
foods packaged in 100 percent natural-based packaging because it offers all of the convenience
of traditional plastic without the environmental compromise.

The following document provides a summary of brand discussions at a recent meeting in
Naarden, The Netherlands. The purpose of the meeting was to look at how to best understand
and sell this brand concept in Europe.
                                  Table of Contents



Food Retail Marketing
      Market facts                                     3
      Retail opportunity                               4
      New retail model                                 5
      European targets                                 6

Market Research
     Consumer testing                                  7
     Likelihood to pay more                            8
     Kassel findings                                   9

Key Messages
     Retailer                                         10
     Disposable and specialty                         11

Case Studies
      Iper                                            12
      Bed Bath & Beyond                               13
      Wild Oats                                       14

Sustainability
       Cargill Dow’s position                         15
       Product criteria                               16
       “Green” marketing                              17

Life Cycle Analysis (LCA)
       LCA primer                                     19
       LCA for PLA                                    20

Maize Source
      Issues discussion                               23

Brand Awareness
      Public Relations                                25
      Advertising                                     25
      Trade fairs                                     26
      Direct marketing                                26
      Point of sale                                   27

Miscellaneous discussion points
       Maize use                                      28
       Plastic or non-plastic?                        28
       Price                                          29

                                         2
Food Retail Marketing

In the grocery retail environment, stores and chains must continue to innovate if they are to
succeed. By reviewing the size of the retail market, as well as the spending that goes into the
specific sections of the retail market – produce, deli and bakery – we see a clear opportunity for
NatureWorks PLA.

Size of the market            The food retail opportunity in Europe is estimated to be 174 b Euro
                              ($198 b).
                                     • Produce ~ 102.36 b Euro ($116 b).
                                     • Delicatessen ~ 30 b Euro ($34 b).
                                     • Bakery ~ 42.35 b Euro ($48 b).


Opportunity for packaging     Annual market expenditure for packaging is 2.5%.



Why target these areas        This is where the profit for the retailer is, at the edge of the store.
                                      • Where they try to present the quality image that
                                         differentiates their own brand.
                                      • Innovative retailers use this area to set themselves
                                         apart.
                                      • Early adopters of NatureWorks PLA are experiencing
                                         strong success in these aisles.
                                      • Major brands tend to be found in the center aisles.
                                             o Limited basis for differentiation there.


Characteristics               Fresh food departments tend to have similar traits.
                                     • Higher gross profits.
                                     • Destination departments focusing on ‘quality.’
                                     • Point of store brand differentiation.
                                     • Consistent product assortment.
                                     • Where best-trained staff is typically found.
                                     • Tremendous point for promotion opportunities.
                                     • Can often “own” the whole department.




                                                 3
Opportunity is Ripe   The old system really doesn’t apply any more. Retailers’
                      marketing strategy is how to make more profit and differentiate to
                      create customer value and loyalty.




                      Retailers must find opportunities to either increase revenue or cut
                      costs.
                          • Cutting cost is not sustainable over time, so the more
                             innovative retailers are looking to get more customers in
                             the door and attract new buyers.
                          • Margin is fundamentally higher at the edge of the stores
                             (produce, bakery, deli).
                                 o NatureWorks PLA creates impact at the point of
                                     sale by using packaging to add value to the food
                                     sale.
                                 o Consumers have a new reason to buy the product.




                                        4
Creating a New Retail
Model                   With the NatureWorks brand, retailers can capture value in new
                        and multiple ways.




                        The brand helps attract more customers through department
                        differentiation. It helps drive customer trial and is often a
                        ‘gateway’ into other store departments.


A New Way to Think      NatureWorks creates point of sale impact by making ‘plastic’
                        packaging – until now a commodity – a meaningful aspect of a
                        fresh food purchase. It essentially makes the food inside seem
                        ‘new and improved.’

                        The brand will positively impact sales by improving customer
                        perception of the fresh food products packaged in them.

                        NatureWorks PLA offers a new, emotional item to sell:
                           • Fresh foods in natural-based packaging.
                           • Deliver the wholesomeness of “farm grown” packaging.
                           • Offer something fun and intriguing.
                           • Is compostable.




                                          5
European Targets

                   These key retailers were chosen because they    Albert Heijn
                   are spending time on marketing, building        Auchan
                   differentiated store brands, and consumer       Barilla
                   minded.                                         Bonduella
                                                                   Carrefour
                   These retailers tend to set the trends that     Conad
                   others will follow.                             Coop
                                                                   Cornu
                   They are predisposed to co-branding.            Delhaize
                                                                   Finiper
                   Targeting the NatureWorks brand to such
                                                                   Guillen
                   innovators will create short-term success
                                                                   Hartman
                   stories, build broader market visibility, and
                   ultimately drive long-term sales.               Marks & Spencer
                                                                   Migros
                                                                   Spar
                                                                   SuperQuinns
                                                                   Unes
                                                                   Waitrose




                                           6
Market Research

Studies have shown that the NatureWorks brand is highly sought after by consumers. They are
intrigued by it, want it, and are willing to pay more for it. All of the research supports the
conclusion that the market is ripe for natural-based packaging.


Name testing                 The NatureWorks brand name was tested in France, Germany,
                             Italy, Japan, Spain, United Kingdom and the United States. It was
                             ranked against 20 possible names and was selected as the most
                             appropriate name. This demonstrates that the name has strong
                             global appeal.

                             The NatureWorks name was also recently tested against the name
                             Ingeo (Cargill Dow’s fiber brand) and was overwhelmingly
                             selected as the preferred name for food packaging.

                             The simple, yet powerful, message that “nature works” is
                             something that consumers can immediately understand and
                             embrace.


Consumer research            Testing has been conducted in the United States and European-
                             specific testing is in its final stages. Initial indications are that the
                             European results are in line with and similar to the consumer
                             findings from the U.S. (details below).

                             An analysis technique was used where respondents stated their
                             interest in a new delicatessen concept on a scale of 1 to 10.

                             The concept tested read as follows:

                             Use new packaging material for bakery, produce, and delicatessen
                             items. This new packaging, called NatureWorks PLA, is made
                             100% from maize, the food contained in this package is fresh and
                             safe for my family, and the packaging can be composted.


                             Other concepts rated included:
                                • Offering freshly packed spices.
                                • Putting nutritional information on containers.
                                • Only selling organic meats and vegetables.

                             Note: this was not a comparative ranking among the concepts.




                                                 7
Concept findings         Consumer response to the brand concept is very strong.
                            • Nearly 80% of consumers find the concept desirable.
                            • A substantial segment (41%) finds the concept very
                               desirable.
                                      o This segment was similar to those ranking fresh
                                          packaged spices very high.
                                      o This segment was larger than those interested in
                                          only organic meats and vegetables (29%).


Likelihood to pay more   Of those ranking the concept highly desirable:
                             • 74% said they would pay 5 cents more per package of food.
                             • 60% said they would pay 10 cents more per package of
                                food.
                             • 52% said they would pay 20 cents more per package of
                                food.

                         This means that retailers have a significant opportunity to capture
                         addition value in their fresh food departments.

                         Just as a frame of reference:
                             • Of those who ranked the herb concept very high, only 39%
                                 were willing to pay more.
                             • Of those who ranked the organic concept very high, 57%
                                 would pay 30 cents more per item.

City-by-city results     Testing was also segmented on a city-by-city basis. The
                         results are fairly consistent across locations.
                             • Reinforcing the broad appeal of the concept

                         Sharing this information with retailers is a good sales tool to start
                         retailer discussions.

                         Similar data will be available in Europe soon.




                                            8
Kassel Findings   The Kassel project was a limited-scale test market to
                  determine if consumers would recognize, buy, and sort
                  compostable items. It included a variety of compostable packaging
                  and went beyond food applications.

                  Conducted in Kassel, Germany, the test proved strong consumer
                  interest in compostable plastics exists. It also demonstrated the
                  feasibility of municipal composting as an effective waste reduction
                  and removal strategy.

                  Key findings of the trial further support the market opportunities
                  for NatureWorks PLA in Europe. Though the post-trial survey
                  findings are not specific to NatureWorks PLA, they do highlight
                  considerable consumer interest in compostable plastics.

                  Highlights include:
                     • 91% of respondents said more needs to be done to prevent
                         packaging waste.

                      •   89% said that they would buy products in compostable
                          packages again.

                      •   83% of respondents said they think sorting packaging
                          material makes sense.

                      •   60% said they were ready to pay higher prices for
                          environmentally friendly products.

                      •   93% of respondents ranked compostable plastics from
                          starch as the most environmentally friendly packaging
                          material.

                      •   82% of respondents said it was a good idea to replace
                          conventional plastics with biodegradable ones.

                      •   78% of respondents agreed with the statement that, “In the
                          future, all fruit and vegetable packaging should be made
                          from renewable resources.”

                      •   74% of respondents said they have no concerns if maize
                          and potatoes are also grown for plastic packaging.

                     •    83% said they have no fear the compostable packaging
                          could decompose during transport or use.

                     •    78% think compostable packaging is just as suited for
                          organic products as conventional food.

                                    9
Retailer Messages

NatureWorks PLA packaging offers unique opportunity for differentiation at retail
      - Topline growth potential vs. low cost to serve strategy (i.e. Wal-Mart or Aldi)

Consumer desirability for natural and compostable packaging confirmed and quantified
     - Share US national / regional & EU country specific (avail as of 9/11) conjoint analysis

Retail impact measured
        - Case studies independently confirm consumer appeal, sales increases and additional
        margin potential
        - News media very interested in reporting and covering local launches

Supply channel in place and ready to serve; also possible to work with preferred packaging
suppliers
       - Easiest with existing packaging suppliers if retailer emphasizes preference and priority
       - Need to create a step change in demand to realize economics…chicken and egg

Unique opportunity to be an early adapter of: deli/bakery/produce packaging, consumer
disposable products
       - Leverage competitor / key customer or supplier where possible
       - What is involved in implementing such a packaging change and promotional campaign?
       - CD is willing to subsidize switching costs in exchange for co-branding, making launch
       a priority and accelerating implementation

Would a relatively cost neutral switch to a differentiated packaging proven to deliver
increased category sales/brand visibility be of interest?
       -Yes - immediately move into planning specifics
       -No - happy to work at the place that is comfortable for retailer…please define what that
       is and prioritize accordingly




                                               10
Disposables and Specialty Targets Messages

NatureWorks PLA service ware (or packaging) offers unique opportunity for
differentiation
       - Demonstrates end user core mission and values which will strengthen consumer loyalty
        to product and brand (emotive)

Consumer desirability for natural and compostable packaging confirmed and quantified
     - Share US national / regional conjoint analysis

NatureWorks impact measured
      - Case studies independently confirm consumer appeal, sales increases and additional
       margin potential
      - News media very interested in reporting and covering local launches
      - Summarize Wild Oats, Iper, PCF, and soon to be disposables launches (EU, US)

Similar concepts already commercial in key target markets (drinking cups / cutlery / plates
& bowls or other packaging) or soon to be
       - Opportunity to be an early adapter yet low risk since already demonstrated in a similar
       way
       - Show broad range of commercially globally available drinking cups/ cutlery/ bowls,
        especially WM, FabriKal, Biocorp, Ilip articles
       - Recap commercial use of such articles, McDonalds EU, NBB, Coke, Odwalla, Penn
       State, National Parks starting

Channel to market is fully developed and there is also flexibility in supplier preference
     - Easiest with existing suppliers if end user emphasizes preference and priority
     - Need to create a step change in demand to realize economics…chicken and egg

Unique opportunity to be an early adapter of: drinking cups, service ware or specialty
packaging
      - Leverage competitor / key customer or supplier where possible
      - What is involved in implementing such a packaging change and promotional campaign?
      - CD is willing to subsidize switching costs in exchange for co-branding, making launch
      a priority and accelerating implementation

Would a relatively cost neutral switch to a differentiated packaging proven to deliver
increased category sales/brand visibility be of interest?
       -Yes - immediately move into planning specifics
       - No - happy to work at the place that is comfortable for target…please define what that
       is and prioritize accordingly




                                               11
Case Studies

IPER

IPER supermarket started selling food packaged in NatureWorks PLA in one store. It was so
successful and so popular with consumers that the retailer expanded the line to all 21 stores in
Italy.

IPER has been using NatureWorks PLA for fresh food containers for more than 1.5 years. The
natural-based packaging was first used for packaging with fresh food, then ready-to-go foods.
Now, NatureWorks PLA is being used in bread bags – the store is replacing polypropylene bags
with a paper featuring and window made with NatureWorks PLA. IPER is considering other
film and rigids applications.

The retailer first started using NatureWorks PLA to be consistent with its corporate
environmental position and in-store promotional strategy. They believe use of the brand and
packaging creates a consistency and synergy with their message and products. The result is a
powerful marketing tool that is helping drive sales and build the company’s own brand image.

IPER uses an employee and consumer education campaign to raise awareness of the new
packaging. Banners and leaflets are used at the point of sale to explain story of NatureWorks
PLA packaging.

The retailer also holds promotional events featuring actors dressed as ears of maize. This
“mascot” serves as a greeter in the delicatessen, drawing instant attention to the packaging
change. The fun approach is also proving successful in helping drive customer trials in the
department.




                                                12
Ingeo™ Fibers

Though not a grocery retail example, the Ingeo fiber case study effectively demonstrates that
there is strong consumer interest in the concept of making everyday items from maize not
petroleum.

The Cargill Dow brand team supported the introduction with the goal of driving consumer traffic
in support of PCFC product introductions at Bed Bath & Beyond, as well as Younkers stores.

In this product launch, a bedding retailer drove awareness of the brand and through promotion of
natural based fibers in their product. .
            • Sales went up substantially
            • High recognition/high value introduction.
                o Up to 2-3x previous basic product pricing.
            • The brand owners translated the concept into the marketplace and saw value .

Substantial publicity success and value:
           • 110 national/consumer articles.
           • 40 million impressions.
           • 2 New York primetime TV interviews (key focus for retailers).
           • 3 Des Moines & Omaha TV feature stories.
           • 9 radio station interviews.
           •   $1.5 million in PR coverage for print alone.




                                               13
Wild Oats Markets

Wild Oats holds a strong position in natural foods and products. It is a high-end retailer. The
company decided to roll out NatureWorks PLA at their Nature’s Markets (11 stores) in Portland,
Oregon, the United States.

   •   Pushed in delicatessen section with ‘grab-and-go’ foods.
           o As the consumer walks into the store, they see a large display.
   •   Counter has point of purchase display ‘maize to plastic.’
           o Quickly tells what they are buying, why it is different, why it is important.
   •   Did point-of-sale selling and employee education .
   •   Stickers and labels identify new containers.
   •   Introduction achieved very broad national exposure (CNN, Associated Press, Reuters),
       as well as significant local coverage.
   •   Closing the loop.
           o Wild Oats took a total marketing approach and solved issue of composting with
               store return.
                       Image value created interesting effect – major competitors has seen this
                       and is now calling to say, “I need this.”

Wilkinson is manufacturer of thermoformed containers in use at this store. Project has been good
exposure for Wilkinson as the supplier. It is generating lots of interest and questions. Cargill
Dow is looking for a similar big event in Europe with a large retailer.




                                               14
Sustainability


                  Cargill Dow’s NatureWorks PLA is sold as a resin
                  pellet. It is a polymer designed to perform as well
                  or better than petrochemical-based traditional
                  polymers, and to fit into existing polymer
                  conversion systems with a minimum of
                  adjustments. The difference is not in how
                  NatureWorks PLA looks, but in how it is made.

                  Though you can’t tell by looking, NatureWorks
                  PLA offers an exiting difference in how it is made.
                  It is made from annually renewable resources by
                  environmentally friendly processes.




                  Cargill Dow’s commitment to sustainability is
                  grounded in its business philosophy.

                  The company is held accountable to this simple and
                  straightforward mission.

                  The philosophy has two main components:
                     • Meeting needs today with a polymer that
                          works as well or better in existing
                          conversion systems and market applications
                     • Ensuring that future generations will be
                          able to derive benefits of plastics from
                          abundant annually renewable resources and
                          with fewer environmental problems.


                  The triple bottom line guides how Cargill Dow will
                  go forward and measure its success.
                      • Economic success is required to be
                          successful on a global scale.
                      • Life-cycle analysis is used to guide
                          environmental sustainability.
                      • Success must also lead to success for
                          farmers and our communities.




                 15
     Cargill Dow’s commitment to sustainability
     and business philosophy are directly reflected
     in the design criteria applied to NatureWorks
     PLA.

     In short, we believe that pursuit of
     sustainability dictates that a new polymer
     product must be:
         • Measurably better for the environment
         • Less economically, environmentally
              and socially costly due to a safer,
              more environmentally friendly
              processes and materials
         • Easy fit, with clear advantages, in all
              kinds of waste streams

     The pursuit of sustainability teaches that we
     should take a hard look at the entire system of
     manufacturing NatureWorks PLA.

     One thing we learned is that even with all the
     advantages of using dextrose instead of
     petroleum as a feedstock, there might be even
     more exciting opportunities in annually
     renewable resources.

     Cargill Dow is actively researching how we
     might use ‘biomass’ – the stalks and other
     agricultural ‘waste’ and a feedstock for lactic
     acid production.

     Biomass potentially offers lower cost,
     beneficial use of a material previously treated
     as waste, and a new opportunity fore
     economic development in rural areas.

     Lignin, a component of agricultural biomass
     that cannot be converted to PLA, offers the
     potential of providing the energy needed to
     run the fermentation processes. In all,
     biomass may offer a real “triple bottom line”
     improvement to the manufacturing of PLA.

     Cargill Dow is eager to work with business
     partners and their customers to explain and
     help establish sustainable business activities.




16
Green marketplace            The numbers and research show there is a sizable market interested
                             in sustainability and consumer willingness to pay more for
                             sustainable products and processes.

                             A common mistake is misreading the fact that many people are
                             willing to pay very little and some are willing to pay nothing to be
                             more sustainable. As a result, there is a temptation to think that a
                             retailer needs to move price to sell to 90% of customers. The
                             concept of “price down, market gets huge” doesn’t get to the issue
                             of revenue or the ability to sustain long-term sales.

                             However, if a company multiplies the number of people times
                             what they are willing to pay for a perceived benefit of being more
                             sustainable, it becomes the most profitable way to sell. This has
                             been proven with the sale of green energy. People are willing to
                             pay more if there is perceived value and quality.


Green marketplace strategy Thinking through all of the ideas will quickly show whether or not
                           selling the concept of “sustainability” makes sense for a customer.

                             Questions to be asked include:
                                • How many people – willingness to pay?
                                • Is the target volume or revenue?
                                • How does that change over time?
                                • Is a smaller piece of market willing to spend more?
                                • Does the cumulative value generates revenue vs. volume?

                             Five Cs to selling green:
                                • Cost.
                                • Clarity (understand clearly what they are buying).
                                • Confidence (trustworthy).
                                • Credibility.
                                • Content (bang for their buck – measurable, significant
                                    benefits).




                                              17
Future-focused solution     Cargill Dow is not seeking to ‘attack’ petroleum-based plastics,
                            but rather to create a market leadership position in more
                            sustainable plastics.

                            These products will exist alongside for many years.
                               • Don’t want customers to feel uncomfortable about use of
                                   other plastics, but want them to have options.
                               • We are expanding the menu and giving consumers an
                                   opportunity to ‘do something’ about environmental side of
                                   packaging.
                               • Sharing in the growth of the global packaging market.


Key sustainability takeaways for customer discussions:

                                •   The product works as well, with value-added set of traits.
                                •   Cargill Dow has adopted the concept of sustainability as a
                                    core element of its business philosophy:
                                            Central business tool;
                                            Source of significant brand and market value;
                                            The right thing to do; and
                                            Meet world needs today, without compromise to
                                            worlds needs in the future.
                                •   Triple bottom line essentially accounts for People-Planet-
                                    Profit.
                                •   Manufacturing and selling a sustainable product (such as
                                    PLA) saves money, helps the environment, reduces burden
                                    on society.




                                             18
Life Cycle Assessment (LCA)


LCA Primer               LCA a tool to measure the environmental component of the triple
                          bottom line. It is a technique for assessing the environmental
                         impacts associated with a product, covering all stages in a
                         product’s life.
                         • Evaluates all inputs used to make, use and dispose of the
                             product.
                                o Cargill Dow looks cradle-to-pellet to determine the
                                     LCA of the resin.
                         • Can look at pellet-to-grave on specific customer projects to
                             round out the lifecycle analysis.



                              Phases of a Life Cycle Assessment*
                                 Life cycle assessment framework


                                   Goal and
                                    scope
                                   definition                          Applications:

                                                                       - Production process
                                                                         improve ment


                                   Inventory          Interpretation   - Product development
                                    analysis
                                                                       - Stra tegic planning:

                                                                       - Public policy making

                                    Impact                             - Marketing
                                  assessment




                                                                                         *ISO 14040




Benefits of LCA          By conducting a LCA on PLA, Cargill Dow is able to quantify and
                         support its market claims, benchmark PLA against traditional
                         polymers, as well as guide the continued improvement of its the
                         manufacturing process.

                         This allows the company to make informed decisions based on
                         quantifiable environmental and economic data – all of which ties
                         back to the triple bottom line.




                                                19
         PLA Production Route         The LCA for PLA production accounts for the following factors:




                     Seed corn                                                     Carbon dioxide

                     Fertilizers                  Corn growing,                    Irrigation water
                                                harvesting & drying
                       Fuels                                                         Herbicides

                     Electricity                                                    Insecticides

Raw materials
from the earth                                   Transport of corn to                  Diesel
                                                    Corn Wet Mill
Carbon dioxide                                                                                          Air emissions

 Solar energy                                                                                          Water emissions
                    Natural gas
                                                     Dextrose                      Sulfur dioxide
                     Electricity                    production
                                                                                      Enzymes
                       Water
                                                                                                         Solid waste


                     Electricity
                                                    Lactic acid                     Waste water
                    Natural gas                     production                       treatment
                                                                                        plant
                 Operating supplies




                                                                                     Electricity
                                                 Lactide and PLA
                                                   production                        Natural gas

                                                                                 Operating supplies


                 System boundary



                                                        PLA




                                                       20
LCA findings                                    Even in its relative infancy verses traditional petroleum-based
                                                resins, PLA shows a significantly better environmental profile in
                                                terms of the energy used to manufacture it and greenhouse gas
                                                emissions for the process.

                                                Chart 1: Fossil Energy Use (FEU) *
                                                From cradle to pellet [MJ/kg polymer]
                                                PLA versus traditional polymers (APME)


          160
                     142
          140
                                    120                117
          120

          100                                                     92         93
                                                                                             87
                                                                                                     81       79            77         77
           80
                                                                                                                                                    54
           60

           40

           20                                                                                                                                                      7
               0
                     Nyl on 66       Nyl on 6          PC         HIPS     Cel l ophane      GPPS   LDPE     PET SSP        PP       PET AM         PLA 1    PLA Bi o/ WP




                                                Chart 2: Greenhouse Gases*
                                                Cradle to pellets [kg CO2 eq./kg polymer]
                                                PLA versus Traditional polymers (APME)

                   10.0

                                           8.1
                    8.0
                                 7.6
                                                                               6.4
                    6.0                                  5.3

                    4.0                                                                                    3.3                   3.2
                                                                   2.9                       2.7
                                                                                                    2.1                2.0                  1.8
                    2.0



                    0.0
                             Nyl on 66      Nyl on 6         PC     HIPS     Cel l ophane*   GPPS   LDPE   PET SSP     PP        PET AM       PLA      PLA B/ WP



                   -2.0
                                                                                                                                                        -1.7


                                                * Chart Notes: PLA(1) = today’s process
                                                               PLA Bio/WP = projection based on use of biomass
                                                               feedstock, wind power for electricity
                                                                  21
Key Discussion Points:   LCA is not a primary consumer selling point. Rather, it is a
                         measurement that shows Cargill Dow holds itself accountable.
                            • It allows customers to be sure that the marketing statements
                               are accurate.
                            • It helps the company measure track and improve its
                               manufacturing process to stay true to the principles of
                               sustainability.
                            • LCA profiles show that PLA has a distinct measurable
                               advantage of traditional petroleum materials.

                         Cargill Dow is willing to work with customers (and even
                         customers’ customers) to develop an extensive LCA in support of
                         specific end products made from PLA.




                                         22
Maize Source
Production facts            To make PLA, Cargill Dow requires and purchases commercially
                            available sources of dextrose from the existing marketplace.
                            Today, this dextrose comes from maize purchased from farmers
                            who live in a growing area that surrounds Blair, Nebraska, USA.
                            The maize is processed at a wet mill in Blair to produce dextrose,
                            the fermentable sugar used as the raw material for PLA production.

                            Cargill Dow does not need or require genetically modified maize
                            to create its polymer. Testing has shown that there are no traces of
                            maize DNA in the resulting polymer.


Marketplace facts           Some of maize that goes into the process may have started as
                            genetically modified seed - on a national basis, accounts for about
                            20% – 30% of maize grown in the U.S.

                            It is practically impossible to track the molecule from kernel to
                            PLA product, but money can be tracked. Some environmental
                            organizations take the position that money should not go to support
                            GM crops, even if these crops are used to make new materials that
                            substitute for petrochemical-based products.


Source offsets       Cargill Dow has created and option called “Source Offsets” to
                             address these concerns in cases where the potential of GM
                             feedstock is a go/no go issue:
                             • PLA gives a significant opportunity for environmental benefits
                                 in packaging.
                             • Company believes in customer choice – we want to satisfy
                                 those demands as best possible and consistent with the
                                 principles of sustainability.
                             • Cargill Dow will contract with Cargill Incorporated who will
                                 provide origination services to procure, and have delivered to
                                 the mill, maize that is certified to be a conventional variety.
                             • Cargill Dow will pay farmers a premium based on market
                                 prices (will be included in price of Source Offsets).
                                     o Contract requires specific farming practices such as
                                         buffer strips, cleaning of equipment, proof of seed
                                         purchase, etc.
                                     o Third-party verification and testing will also be
                                         included.
                             • For additional details, contact Cargill Dow.



Sustainability mindset      Cargill Dow’s focus is on the greater issue of sustainability.
                            • Includes an evaluation of best practices in agriculture.
                                    o For both non-GM and GM sources.
                                              23
Key take-aways when
discussing with customers: NatureWorks PLA provides strong environment and sustainability
                           benefits today.

                           With continued successful market development, even more
                           benefits are available through lower costs and new feedstock.

                           There is no genetic material in PLA.

                           Source offset option is available to customers who so desire.

                           Cargill Dow will go speak with customers to discuss the issue and
                           try to find a solution.




                                            24
Brand Awareness

Public Relations
and Publicity      Active program is generating significant awareness and credibility
                   throughout Europe (reaching food retailer and brand owner).
                   • Using variety of tools including editor contact, interviews,
                       news releases and case studies.
                   • Are seeing a good rotation of editor coverage.
                   • Point-in-time opportunities such as launches and new
                       developments are ideal times to get our message – and your
                       customer’s message - to the right outlets.
                   • By working with Cargill Dow as new opportunities emerge, we
                       can get the message out to support your customers and sales.




Paid advertising   Ads demonstrate “natural in natural” concept.

                   Target audience is senior executives, decision makers, in grocery
                   segment.

                   Target audience is connecting image, message and positioning
                   • Show strong publisher ratings in terms of attention and recall

                   Ads currently in three magazines in Europe; considering adding
                   more magazines to schedule.

                   Ads are currently appearing in the following European markets:
                   • Benelux
                   • France
                   • Germany
                   • Italy
                   • Spain
                   • UK




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Trade fairs        Considering using a pavilion concept (similar to how trade
                   commissions display) featuring partners at Cargill Dow sponsored
                   stand.
                   • Strong marketing and message exposure.
                   • Create a “one stop” destination.
                   • Shows depth and breadth of offering.
                   • Makes it easy for retailers to get items made from.
                       NatureWorks PLA.
                   • Cargill Dow can drive promotional activity to help bring/drive
                       customers to partners.
                   • Direct leads for customers.


Direct marketing   Considering a campaign to support European activity.

                   A recent United States campaign featured a three-part mailing
                   targeting retailers and brand owners.
                       • Targeted top 50 retailers/brand owners (CEOs, VPs of
                           purchasing and marketing).
                       • Personal message in letter from CEO, Randy Howard.
                       • Is proving very successful in United States.

                   Cargill Dow is looking for help in establishing a direct marketing
                   outreach effort in Europe:
                       • Might require a new concept.
                       • Could include elements of the United States program.
                       • Could be tailored to meet market needs and expectations.

                   Direct outreach program may need to be conducted on a country-
                   specific and/or a market-specific basis in Europe.




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In-store support
for retailers      Point of sale collateral, signage and presentations available to help
                   educate the consumer.




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Miscellaneous Discussions and Comments

Amount of maize used    Today, 10 billion bushels of maize are grown in the United States
                        that is not for human consumption, mostly animal feed. About ten
                        percent (1 billion) is surplus every year. Cargill Dow use is less
                        than one tenth of one percent of that maize.


Call it a plastic?      (In UK) it is being called a plastic – interested in going away from
                        this. In the UK, PLA could be changed to have its own
                        classification and tax classification. The word plastic is a “no.” It
                        needs to get to be called a “natural.”

                        Cargill Dow is working on issues management related to being a
                        non-plastic on a country-by-country basis in Europe.
                           • Could be value in being a non-plastic


Price discussion        Following are a few of the highlights and Q&A exchanges that
                        illustrate how to position.
                            • It will cost more; it’s not 2x more.
                            • Depending on the package it’s 2-5 cents more.
                            • Retailers can be cost neutral on the part.
                                     o May choose to pass it on.
                                     o Retailer needs to figure this out – not being asked to
                                        double cost of products.
                            • Opportunity for retailers to turn commodity into something
                                 of value.
                                     o Yes, it will cost more – but look what you can get
                                        for it.
                            • Those who have moved forward with the concept are
                                 seeing a significantly higher return than they expected.
                                     o It is a ‘hot’ seller.
                            • Offers grocery retailers new options.
                                     o A ‘fun’ concept.
                                     o Allows them to sell ‘new and improved’ natural
                                        foods.
                                     o Gives something to talk about other than price.
                                     o Engages customers.
                                     o Starts a customer dialogue about how the retailer is
                                        focused on meeting consumer needs and desires.




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(Price discussion continued)   Q: People are interested in the concept, but I don’t believe they will
                               really pay for it?

                               A: The research shows that consumers value the concept and will pay
                               more for it. The IPER example also shows that European consumers are
                               willing to pay more for it. Especially when supported by clever
                               marketing.

                               The brand concept is a tool for the supermarket to promote what they are
                               selling – high quality, high value food products. But if the store simply
                               positions it as paying more for packaging, it probably won’t work.

                               This example shows that the brand concept and the packaging will drive
                               traffic and help them stand apart from their competition.

                               Retailers can break even on the higher cost of packaging, because it
                               gives them tools to attract and influence consumers. It won’t work in
                               every case, but for some retailers, this might be worth the effort, test it
                               out and see what consumer response is. There is something different
                               enough.

                               Part of IPER’s promotion is to educate its consumers that this is a better
                               deal. Education is the key to supporting pricing. Consumers understand
                               and will pay for fresh food in fresh packaging.

                               In Iper’s case, they do not use compostability as a selling point. They
                               use the concept of bio-plastic since Italy does not have a composting
                               infrastructure.

                               Q: Consumers have little choice, if they don’t want to pay for it here,
                               they can go to another place.

                               A: This brand is about how the store decides to market their products.
                               We are giving them tools. They can choose whether or not to use them
                               to draw people into the store. They can decide whether to use the
                               packaging as the singular draw, or if they want to use it to make their
                               image better (re: environmental). It is really about whether or not they
                               are willing to invest in a brand that will drive higher sales and bolster
                               their own brand with shoppers.

                               It is important to note that with different retailing chains there is a
                               different motivation with each retailer. Marketing and purchasing have
                               different interests. Marketers are more interested in bringing up the
                               image. Purchasers want the fresh food section to get more turnover.
                               These are different motivations, but NatureWorks PLA can satisfy both
                               of their needs and desires.

                               In reality, consumers don’t think about the packaging unless there is a
                               negative consequence. However, if the packaging can be brought to their
                               attention in a positive light it can be a powerful and positive way to
                               influence their emotion about the purchase.


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