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					Nestlé Business Services

800 N. Brand Blvd.
Glendale , CA 91203                                              Karen Blackwell
(818) 549-6000
Karen. Blackwell@us.Nestlé.com
                                                                 Manager Supplier Diversity and
                                                                 Development
                                                                 NBS Procurement
                                                                 North America


Joset B. Wright, President
National Minority Supplier
Development Council
1040 Avenue of the Americas
2nd Floor
New York, New York 10018

Overview

The NMSDC Food and Beverage Industry Group had a very productive year in 2010. The
Industry Group members elected Karen Blackwell of Nestlé North America and Ernie
Freeman of PepsiCo Co-Chairs and Harry Perales, Campbell Soup as the Secretary for
2010-2011. The group focused on ways to increase its value to current active members and
ways to rekindle and engage inactive members which resulted in spirited discussions around
key opportunities for improvement. It was agreed upon that these ideas should be shared
with the NMSDC leadership, which resulted in our new President, Joset Wright, sharing her
vision with us at our October meeting.

Her insights were very valuable, as she shared that her goal is to implement a strategic
planning process in the next 18 months, which will entail hiring external resources to focus
on 23 planning areas, including:

            A) Making NMSDC more responsive to the Industry groups

            B) Using technology better and faster

            C) Developing more scalable MBEs

            D) Standardizing the local councils to create uniformity, efficiency and sustainability.

The group’s discussions at the July meetings centered around improving our Industry
group’s understanding of the regional and national MNSDC model—coupled with President
Wright’s vision—resulted in a reenergized Industry committee. This energy was
demonstrated through numerous peer communications covering diversity tracking, reporting
tools, sourcing requests and communication policies.

Industry Group Membership

2010 Co-Chair, Denise Thomas, Director of Corporate Supplier Diversity at Kroger,
undertook the task of reviewing our membership roster and removing members who had
been inactive for three or more years. This resulted in trimming our group back to 37 active
corporate members who met three times in 2010. The March virtual meeting and the July
and October traditional in-person meetings were spirited, engaging and informative. The
2010 meetings were hosted by Darden, Heinz, PepsiCo, Campbell’s Soup, ADM, Kroger and
McCormick. We will continue to have broad representation in 2011 when Burger King, Mars,
Brinker, Sodexho, Comcast, Cargill, Coca-Cola, MillerCoors, and Denny’s have agreed to
sponsor our meetings.

Subcommittees

All group members are asked to serve on one of the following subcommittees:

   Industry Analysis
   Professional Development
   Diverse Supplier Enrichment


1) Industry Analysis Committee – Team Leader: Colleen Mayer, Manager Supplier Diversity
  and Sustainable Development, MillerCoors

This subcommittee elected Eva Milko, Director of Procurement Development, MillerCoors
and Itu Oto, Supplier Diversity Manager of Mars SnackFood US as the team leaders.

          The team changed its name to Industry Insights to identify ways Supplier
           Diversity programs can be used to work across the vast Supply Chain to impact
           the multi-cultural consumer.

  Subcommittee Goal for 2011:


           The team will focus on developing themes for the 3 phone calls over the year and
           will identify best practices of our members which will be presented via online web
           presentations and conference calls:


2) Professional Development Committee –Team Leader: Ernest Freeman, Senior Manager
  Supplier Diversity, PepsiCo, Inc.

          PepsiCo presented a demonstration of its sourcing tool and provided a follow up
           PowerPoint to all F & B members.

              o     The best practice was the result of PepsiCo creating a solution to manage
                    sourcing diverse suppliers across multiple databases at their company.

          Nestlé presented its virtual teleconference format, used at the 2009 NMSDC
           conference that linked 14 buyers in 4 locations with 114 MBEs at the New
           Orleans Conference.

              o     This format allowed for 63% of the companies who attended the event at
                    the NMSDC booth to be invited to participate in 2010 procurement
                    activities. http://supplierteleconference.nestleusa.com/

  Subcommittee Goals for 2011:

           The team will focus on finding and bringing ideas to raise the acumen of the SD
           professional, i.e.:

                      ISM Supplier Diversity Certification Program overview via a Webinar
                       to group.
                             Nestlé. Good Food, Good Life                                    2
                     Professional training beyond Supplier Diversity, i.e. How to be
                      considered for a Chief Diversity Officer position

3) Enrich Diverse Suppliers – Team Leader: James Momom; Director Supplier Diversity and
   Business Development, General Mills

       The members of the Enriching Diverse Suppliers subcommittee developed a shared
       list of MBE suppliers across member companies. Recognizing that good companies
       know and utilize good suppliers, the true power of this exercise was to create a list of
       vendors that we’ve all had success with so that new opportunities could be created
       for these strong performing MBEs.

       To eliminate as many obstacles to participation as possible, the subcommittee
       created an electronic survey for our members to complete and submit their strongest
       performing MBEs. After several calls for participation, 40% of the F & B members
       submitted the information for 142 Minority owned firms. The MBEs identified were
       grouped into 18 purchasing categories and the resulting data disseminated as a PDF
       file to the members who submitted companies for inclusion. At the October 2010
       meeting, the members eagerly reviewed the committees work and commended the
       group on successfully finishing a task that had been on the top of our committee’s
       To-Do List, year after year.

        A vote was taken and it was determined that the list would be shared with the entire
       membership as a way to encourage full participation and to bring value as a
       additional resource to F&B supplier diversity professionals who are consistently
       challenged in being able to quickly respond to internal requests for MBEs to be
       included in sourcing activities.

  Subcommittee Goals for 2011:

           The team will focus on expanding the list to identify stronger suppliers and to
           promote their use by Industry Group members

Diverse Supplier Presentations

This year, the industry group decided to return to the practice of inviting high performing
MBEs to give 15 minute presentations at our meetings, and invited the following companies
to attend:
    1) Coalescence – Custom Blending, Co-manufacturing of ingredients and flavors
    2) XCL Services – provides a range of distribution and manufacturing services,
    3) River City Furniture – Furniture Distributor/ Preferred Hawthorn dealership
    4) SGM LLC


Industry Group Reception at the NMSDC 2011 Convention

This reception was held at the Red’s Steak House in Miami on Tuesday evening, the day
after the tradeshow, as a way to introduce best in class suppliers to the industry group
members. Each of the 15 industry group members who participated in planning and hosting
the event invited 8 of their top performing suppliers to join them to network with other highly
successful suppliers and supplier diversity professionals. The event was attended by 150
MBEs and corporate representatives in an informal environment designed to increase
meaningful interaction.
I

                            Nestlé. Good Food, Good Life                                      3
            2010 FOOD AND BEVERAGE INDUSTRY GROUP MEMBERS*

     Corporation              Contact                   Email
 1   Aramark                  Jessica    Choi           Choi-jessica@aramark.com
 2   Archer Daniel Midland*   Amber      Potts          amber.potts@adm.com
 3   Ball Corporation*        Bea        Valdez         bvaldez@ball.com
 4   Brinker                  David      Robinson       david.robinson@brinker.com
 5   Burger King              Pat        Williams       pwilliams@whopper.com
 6   Campbell Soup            Harry      Perales        Harry_perales@campbellsoup.com
 7   Cargill*                 John       Taylor         John_Taylor@cargill.com
 8   Coca Cola*               Valerie    Nesbitt        vnesbitt@cokecce.com
 9   Conagra                  Angela     Griffith       angela.griffith@conagrafoods.com
10   Darden                   Patrick    Hynes          phynes@darden.com
11   DelMonte                  Lauren    Waldorf        Lauren.Waldorf@Delmonte.com
12   Denny’s                  Michelle   Hunt           mhunt@dennys.com
13   Disney                   Arnice     Lamb           arnice.lamb@disney.com
14   Food Buy                 Skyne      Betha          sbetha@foodbuy.com
15   General Mills            James      Momom          james.momon@genmills.com
16   Hershey’s                Diane      Crawford       dianecrawford@hersheys.com
17   Hilton                   Fed        Lona           Fred.Lona@hilton.com
18   HJHeinz                  Steve      Burk           Steve.Burk@us.hjheinz.com
19   Kellogg*                 Cathy      Kutch          cathy.kutch@kellogg.com
20   Kraft                    Vickie     Hsi            Vickie.Hsi@kraft.com
21   Kroger                   Denise     Thomas         denise.thomas@kroger.com
22   Mars                     Itu        Out            itu.otu@effem.com
23   McCain Foods             Calvin     Eakins         calvin.eakins@mccain.com
24   McCormick                Shelia     Dew-Johnson    sheila_dews-johnson@mccormick.com
25   Miller Coors             Eva        Milko          eva.milko@millercoors.com
26   Nestle                   Karen      Blackwell      karen.blackwell@us.nestle.com
27   Quaker Oats              Ernest     Freeman        ernest_freeman@quakeroats.com
28   Safeway                  Tim        Williams       tim.williams@safeway.com
29   Sara Lee*                Cheryl     Hamilton       cherryl.hamilton@saralee.com
30   Sodexho*                 Darlene    Fuller         darlene.fuller@sodexo.com
31   SuperValu                Mike       Byron          mike.byron@supervalu.com
32   Target                   Kathy      Mazon          Kathy.Mazon@target.com
33   Tyson                    Heather    Chilson        Heather.Chilson@tyson.com
34   UFPC/Yum Brands          Richard    Rugnao         richard.rugnao@yum.com
35   Wendy’s                  Frances    Wight          frances_wright@wendys.com
36   Wrigley                  Donna      Weterman       Donna.Westerman@Wrigley.com
37   Yum Brands Inc.          Renee      Fromme         renee_fromme@ufpc.com

          * Member corporations with multiple committee representatives


                          Nestlé. Good Food, Good Life                                4

				
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