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					2010 REPORT
OFFICERS
Corporate
Louis P. Gentine              Chairman & Chief Executive Officer
Louis P. Gentine II (Louie)   President & Chief Customer Officer
Mark W. Rhyan                 Executive Vice President – Chief Operations Officer
George H. Hoff                Executive Vice President – Chief Financial Officer
Karri J. Neils                Senior Vice President – Human Resources
Kristine M. Jankowski         Senior Vice President – Innovation


Administration
Accounting
Marcia L. Stanczyk            Senior Vice President – Treasurer
James J. Birenbaum            Vice President – Controller
Information Technology
Suzanne M. Peterson           Vice President – Information Technology
Communications
Barbara S. Gannon             Vice President – Corporate Communication & Government Relations


Operations
Lee E. McCollum               Vice President – Manufacturing
Karl L. Linck                 Vice President – Engineering
Dennis E. Roehrborn           Vice President – Logistics
Gary A. Vissers               Vice President – Demand Planning
Janet R. Raddatz              Vice President – Quality
Shawn R. Marcom               Vice President – Procurement


Sales and Marketing
Food Service
Kevin G. Delahunt             President – Food Service Division
Michael P. Sokol              Vice President – Sales
Food Ingredients
Michael A. McEvoy             President – Food Ingredients Group/Portionables Inc.
Consumer Products
Michael P. Pellegrino         President – Consumer Products Division
Mark D. Gumm                  Vice President – Sales
Daniel “Chip” C. Schuman      Vice President – Marketing
Sargento Culinary Solutions
David T. Vroom                Senior Vice President & General Manager Sargento Culinary Solutions


Innovation
Cathryn Fritz-Jung            Vice President – Research & Development
Rod J. Hogan                  Vice President – New Business Development
      TABLE OF CONTENTS
Letter to Stakeholders from Lou Gentine     04

Values and Corporate Culture                06

Community Commitment                        12

Sustainability                              16

Letter to Stakeholders from Louie Gentine   18

Consumer Products Division Update           20

Food Service Division Update                24

Food Ingredients Division Update            26

Culinary Solutions Division Update          28

Operations Division Update                  30

Board Members                               32
Lou’s
   LETTER

                                                   Our unwavering commitment to leading the
                                                   cheese industry is the driving force for our future
                                                   success. That growth is evident with the launch of
                                                   a new division focused on growing our footprint at
                                                   deli counters in retail stores and the current
                                                   expansion of our facilities.

                                                   We recently broke ground on a major project
                                                   involving a new building and an addition to our
                                                   corporate headquarters. Within the next five to six
                                                   years, we’ll need the extra space for a projected
                                                   120 new administrative employees.

                                                   Even as we continue to grow, we are rooted in the
                                                   fact that, together, we are a family. This is what
                                                   makes Sargento a wonderful place to work and
                                                   why the Milwaukee Journal Sentinel honored us
At Sargento, we’re proud to say, “Our family’s     as the “Top Workplace 2010.”
passion is cheese.” Our passion for exceptional
cheese is what drives us persnickety people to     At Sargento, we value our former and current
develop the products that our consumers have       employees. One of our longtime family members
come to love. But we don’t rest on our laurels.    is retiring, and he’ll always be a part of the
We’re committed to developing products and         Sargento family. Hired by Leonard as a
solutions that move the cheese industry forward,   Divisional Sales Manager, Mike Gordy has
and, as a result, the company continues to grow.   worked at Sargento for 32 years. During his time
                                                   with Sargento, he’s touched many parts of the
Since 1953, Sargento has grown from a retail       business, from Vice President of Sales, Director of
storefront business in Plymouth, Wis., into a      SAP Implementation, Senior Vice President of
national leading marketer of quality cheese        Operations, President of Consumer Products,
products. We are recognized for our excellent      Senior Vice President of New Channel
products, family values and service to retail,     Development to his latest role as President of
foodservice and industrial customers.              Food Ingredients.
With dedication and expertise, we continue
to set the pace for change in our industry.




04
Mike was never afraid to step outside of his
comfort zone and embrace new challenges.
In 2005, he was awarded the Founders Ring
for his outstanding career service with Sargento
and has served as president of the International
Dairy-Deli Association. His “Southern-style”
humor is well-known throughout the industry,
as well as his love of fishing. We wish Mike
only the best as he enters into retirement!




 Mike Gordy, former Vice President
       of Food Ingredients

From the very beginning, my dad, Leonard Gen-
tine, fostered a family-like culture and encouraged
all of his associates to challenge the status quo and
act in accordance with the highest ethics. Today,
we encourage that same spirit among Sargento
employees, and we are confident it will continue
to catapult our business forward.

Sincerely,




Chief Executive Officer
     ThE SARgENTO
        Family
     The basis of the company culture at
     Sargento is simple, “Hire good people
     and treat them like family.” This corporate
     culture began under the late Leonard
     Gentine’s leadership, and today is as much
     a part of the culture as it was 30 years ago.

     Currently, more than 20 percent of our
     Wisconsin-based employees have worked
     at Sargento for more than 20 years, 100
     employees for more than 30 years,
     and 10 have 40 or more years of service!




06
STATEMENT OF
   Values
        AND                 Purpose
Sargento is a family-owned cheese company
dedicated to enhancing long-term stake-
holder value. Sustained by an insatiable
winning spirit, we are guided by our
faith in God. Our central purpose is to be
the best at responding to customer and
consumer needs for cheese, cheese-based,
and other culinary solutions.

We will achieve this goal by exceeding
expectations for innovation, service,
quality, value, taste and convenience.
We share the results of our success with
those that contribute to that success.




                                             07
CODE OF
BUSInESS AND PERSOnAL
   Ethics
In a world and society where the quest for material success can cause self-interest to
obscure principle, we the people who comprise Sargento Foods Incorporated commit
ourselves to these self-imposed standards in our individual and corporate endeavors.
Our relationships with stakeholders (including our customers, employees, suppliers,
stockholders and the communities we affect) will be guided by these assertions:


We Will Be Legal
We recognize the authority of legal constraints and our obligation to be
in conformance with both the spirit and the letter of the law.


We Will Be Moral
In our public and private lives, we will strive to give precedence to that which is right
over that which is merely expedience or convenient.


We Will Be Honest
To warrant the trust of all with whom we come in contact, we must ourselves be
unflinchingly honorable in whatever we think, do or say.


We Will Be Respectful
Whatever our station in life may be, we will respect in others of all ranks those virtues and
strengths of character which we collectively and individually endeavor to exemplify.


We Will Be Responsible
To each other and to those outside Sargento, we will strive to fulfill both the obvious and
the unenforceable obligations we owe to all whom we serve and with whom we work.


We Will Be Fair
In regard to decision-making at all levels, we will strive for maximum objectivity and
evenhandedness with all those whose lives we touch.




08
PLyMOuTh hEADquARTERS
   Expansion
Our business has steadily been growing, so in late
2010, we broke ground on the expansion of our
existing Plymouth, Wis., headquarters. This space
will house the projected 120 new office and
production employees over the next five to six
years. The new building will be located between
our current headquarters and the Leonard Gentine
Center on the Plymouth Campus. We also are
planning an addition to our headquarters, which
will be used primarily for human resources and
wellness facilities for an onsite nurse practitioner
and physical therapist.




                                                  09
VALUES AND CORPORATE
   Culture
Commitment to Employees
Sargento Foods Inc. is focused on people, pride and progress. We were humbled when Milwaukee’s
leading newspaper recognized Sargento as the number one place to work among large employers in
Southeast Wisconsin in the “Top Workplaces 2010” survey. As simply stated by an employee,
Sargento won the top spot because “It’s the people. Everybody’s friendly. We have a good time.”

Sargento believes in putting the company’s values into practice, in the workplace and outside.
Examples include:


Work/Life Balance                                     Community Service
Sargento allows production workers a certain          As a family-owned company, serving the
amount of time each year to tend to family matters    community is a core part of the Sargento culture.
such as school events. For some positions,            Employees contribute time and talent to a
workers can have flexible schedules, telecommute      variety of philanthropic endeavors, such as
and job-share.                                        Junior Achievement and youth sports.


Social                                                Financial
The company sponsors a Christmas party for            Sargento holds a meeting every year to explain
employees, a Christmas luncheon for retirees          the company’s financial situation and to discuss
and an annual event to celebrate service mile-        political and economic events affecting its
stones. Employees also participate in a biannual      performance. Employees receive profit-sharing
summer picnic with their families and enjoy other     bonuses when the company performs well.
events such as golf, bowling and fishing outings.     Sargento allocates an amount equal to 3 percent
This commitment to fostering a family-like culture    of pay into a retirement account for every
is recognized by employees, “At each and every        employee and will match up to 3 percent more
event, the Gentine family is there with the employ-   of employees’ contributions into their 401(k).
ees” a worker wrote in a company evaluation.
                                                      Health
Opportunities                                         Sargento has a nurse practitioner and a physical
Sargento pays for college tuition for any full-time   therapist present at its Plymouth headquarters and
employee who pursues an associate, bachelor’s         Kiel plant several days a week, and workers and
or master’s degree, even if the schooling is not      their families pay $10 per visit for routine care.
directly linked to the job.




10
             ThE SARgENTO
                 Story
              With more than 1,500 employees, Sargento Foods Inc. is one of the
              largest privately-held cheese companies in the United States and a
              leading marketer of retail branded natural cheese, customized cheese
              products for foodservice and other food manufacturers, and meal
              solutions for delis.

              It began when Leonard Gentine, Sr. launched the Plymouth Cheese
              Counter in 1949, a deli and mail order gift house, from a small retail
              shop in Plymouth, Wis. Gentine observed frequent repeat orders for
              smaller-sized packaged Italian-style cheeses. To satisfy the growing
              demand for old-world quality cheeses, Sargento Cheese Company,
              Inc. was formed with the partnership of Gentine and Joseph Sartori
              in 1953. The company began by selling packaged Mozzarella,
              Provolone, Parmesan and Romano cheeses.

              Today, Sargento provides its customers with hundreds of varieties
              and forms of cheese, cheese products and cheese ingredients for other
              food processors, appetizers and snack foods. Sargento is dedicated to
              providing quality products for the convenience-conscious consumer
              and continues to explore, expand and excel.




An employee who was hired in 1998 wrote anonymously
about the effect of Sargento on his life:
“Prior to joining Sargento, I hated going to work, and it took its toll on my
family life…Being employed at Sargento has made my family stronger
and appreciative for the finer things in life, because of Sargento’s beliefs in
God, assisting those in need, and the willingness to go the extra mile.
Because of that, it has made me a better person, and I have the Gentine
and Sargento family to thank for that.”

                                                                                       11
 COMMUnITy
   Commitment
 As a family-owned and operated company,
 the Sargento family values permeate throughout
 the entire organization. Supporting the community,
 especially where Sargento employees live, work and
 play, is an important part of the company’s culture.
 From CEO Lou Gentine to corporate employees
 and workers in the production facilities, the entire
 Sargento family is committed to doing their part to
 make a difference in the community.

 With numerous community initiatives in place,
 Sargento has identified two areas of focus: hunger
 and shelter. Sargento employees have donated
 countless hours of their time volunteering in the
 local community. In 1991 the Sargento Employees
 Caring About People, or SECAP, programs were
 formed to inspire positive change in the local area.


“Thanks again for this very special donation (to the German
 Fest Run/Walk for Hunger). Your company is certainly one of
 the best in terms of supporting good causes! May God continue
 to bless you.”
                                           Brother Dave Schwab, Meal Director
                                           St. Ben’s Community Meal Program

12
                                                        FEEDINg ThE                        Hungry
                                                        Sargento is dedicated to serving those less fortunate
                                                        in the Greater Wisconsin community through its
                                                        partnerships with organizations such as Feeding
                                                        America, Welcome Table of Plymouth, Wis., and
                                                        food pantries in Sargento facility communities.
                                                        In 16 years, Sargento employees have served
                                                        more than 66,000 meals to people in need through the
                                                        St. Ben’s Community Meal Program, a central city
                                                        Milwaukee church that provides free meals six nights a
                                                        week. Every month, a different department within
                                                        Sargento volunteers to participate, and more than
                                                        20 people offer their time to help. Volunteers cook a hot
                                                        meal in the Sargento kitchen and deliver the meals to
                                                        St. Ben’s in Milwaukee to serve to guests. Sargento
                                                        provides 90 pounds of food to St. Ben’s at each
                                                        Meal Program. And the signature dish –Sloppy Joes
                                                        topped with Sargento Natural Cheddar Cheese–
                                                        is always a popular meal on the menu.




           Touchdowns
           FOR ChARITy
Through a partnership with the Green Bay Packers,
Sargento continues to help fight hunger in the
community. Sargento and the Packers teamed up
more than seven years ago to support “Touchdowns
for Charity,” a program that raises money for the
Wisconsin Hunger Task Force. For every offensive
touchdown scored by the Packers, Sargento donates
$1,000 to support the Task Force’s programs.
In addition, for every touchdown scored by a wide
receiver or tight end, Sargento donates an additional
$500 to Paul’s Pantry in Green Bay. To date, Sargento
has donated more than $500,000 to combat hunger
through the “Touchdowns for Charity” initiative.
           Habitat FOR
           Humanity
In addition to hunger, Sargento is also committed to
helping combat homelessness. In 2010, Sargento
built its twentieth home in inner-city Milwaukee by
providing building materials and volunteer labor.
Sargento was the first Southeast Wisconsin company to
“blitz build” two houses for Habitat for Humanity in
1991. Each year, a few dozen employees spend a paid
week working for Habitat for Humanity instead of
working at Sargento. Employees aren’t required to use
their personal days and are paid, like any other day on
the job, for their community service.




                                                                    SECAP             Singers
                                                          Made up of more than 120 employees, family members
                                                          and retirees, the SECAP Singers is a volunteer-based
                                                          organization that uses Sargento family talents to bring
                                                          joy and celebration to the community. For 19 years,
                                                          the SECAP Singers have performed year-round,
                                                          putting on spring, summer and holiday shows.
                                                          The singers perform at nursing homes, assisted living
                                                          facilities and community events, including up to 15
                                                          shows during the winter to spread holiday cheer.
                                                          In addition to their holiday performances, they donate
                                                          stockings filled with gifts for each guest at the show
                                                          and decorate a three-foot live tree that is planted at the
                                                          Sargento headquarters in the spring. The singers are
                                                          such a hit that they’ve even created a DVD to leave
                                                          behind for the residents!
“The SECAP Singers are the highlight of our year. In fact,
 they’ve become like rock stars around here. Our senior citizens
 want to invite their entire families to see them sing, and they
 talk about it for days after the performance.”
                                                                            Shary Fogle
                                                           Sheboygan Senior Community




SOCIAL              Responsibility
Each year, Sargento hosts a United Way drive,
the company’s signature fundraising campaign.
The majority of employees contribute financially
during the annual United Way Fund Drive, with a
50-cent on the dollar match by Sargento. In 2010,
the Sargento family donated a total of $441,633 to
support the United Way.


Other community volunteer initiatives include:

•   Weekly Jeans Day, in which employees donate
    $5 each to the charity of the week for the privilege
    of wearing jeans that day

•   Juvenile Diabetes Research Walk, chaired in 2010
    by CFO George Hoff, which raised $180,000

•   Participation in American Cancer Society Walk/Run
    events, which consistently raise significant funds
    exceeding corporate goals
                                                            Sandy Lange, JDRF Sheboygan Outreach
                                                           Manager; Payton DeZwarte, Sargento JDRF
                                                             Walk Youth Ambassador, with his mom
                                                                Holly (a Sargento employee) and
                                                             George Hoff, Corporate Chair of 2010
                                                                    Sheboygan JDRF Walk.




                                                                                              15
COMMITMEnT TO
    Sustainability
Overview
Sustainability is defined as meeting our current needs without compromising the ability
of future generations to meet their needs. This is executed with balance between social
responsibility, environmental stewardship and sustainable economic returns.

Our customers turn to Sargento for not only great tasting cheese, but for the
wholesomeness of the food we provide. Sustainability is consistent with our stakeholder
concept, so we make decisions not only based on the impact on stockholder return but
also on the influence it will have on employees, customers, suppliers and the community.
Given our industry and values, the company focuses on the following areas:

»   Energy           »   Packaging        »   Building Methods

»   Transportation   »   Suppliers        »   Asset Utilization

»   Wastewater       »   Storm Water      »   Compliance Programs

»   Water Usage      »   Solid Waste      »   Recycling/Repurposing

From the product manufacturing facilities to our corporate offices,
best practices in energy efficiency, carbon reduction and water reuse can
be found throughout the company’s safe and streamlined operations:

•   Reduced new construction warehouse lighting cost by                     Environmental
                                                                             Stewardship
                                                                                                Compatible
                                                                                                                       Social
                                                                                                                    Responsibility
    24 percent with self-dimming, occupancy-sensored lighting.
                                                                                               Sustainability
•   Wastewater discharge in North Sioux City reduced by
    78 percent in Biological Oxygen Demand.                                           Viable                    Equitable


•   Slice line packaging material reduced by 10 percent.

•   Wastewater discharge in Hilbert reduced by 62 percent in
                                                                                                 Economic
                                                                                                 Viability
    Biological Oxygen Demand.

We are committed to ongoing excellence in sustainability and will continue to
look for ways to improve in the future. This is not done to receive recognition
from others but to be good stewards of resources and provide stakeholder value.




16
                     Geothermal units are placed in “Lake Lou” to provide efficient heat
                     for the new building under construction on our Plymouth campus.



Environmental Responsibility Statement
The environment affects all Sargento stakeholders - our employees, customers,
suppliers and the community. As responsible citizens, we recognize that we
affect our environment. Therefore, we will continuously improve our business
practices to incorporate advances in knowledge and technology as they relate to
our environment.

Sargento employees have always demonstrated a sincere and conscientious
desire to take environmentally sound actions. The following principles, which
are included in our employee manual, guide our employees to operate, construct,
develop, procure and manage in an environmentally responsible manner.

We will strive to:


Develop products using procured ingredients and materials that are
good environmental choices for stakeholders’ health, safety and quality needs.


Select and maintain suppliers that support and are willing to work with us
in being responsible, environmental citizens.


Manufacture and distribute our products with a minimum of energy
consumption and waste generation.


Design, build and maintain facilities that operate to minimize
environmental impact.


Educate our stakeholders on how they, individually and collectively, impact
our environment by providing information on alternative environmental choices.


Maintain a proactive approach in pursuit of compliance with environmental
rules and regulations using evolving technology.
Louie’s
   LETTER

                                                      we can improve their lives, whether it’s through
                                                      convenience or healthier options. For example,
                                                      our corporate development chefs continue to
                                                      search for the next big trend in the kitchen,
                                                      while others in our research and development
                                                      team focus on health and wellness with our Better
                                                      for You products. In addition, the introduction of
                                                      our online Idea Center has made it easier for our
                                                      business partners to develop customized cheese
                                                      products at the convenience of their desktops.

                                                      The four divisions within Sargento are the
                                                      drivers of our growth: Consumer Products,
                                                      Food Ingredients, Food Service and Culinary
                                                      Solutions. As a result of the work in these areas,
                                                      Sargento is the best selling brand of natural sliced
                                                      cheese in America and serves seven out of the
My family’s innovative spirit began in 1953           top-10 and 14 out of the top-25 chain restaurants
when the company was founded. Shortly after,          in the United States. Sargento continues to chart
my grandfather and a couple of his close friends      new paths in the deli and grocery industry and is
invented the vacuum packaging process to              expanding our reach into the frozen food industry.
preserve freshness and became the first company       Recent innovations from our team include:
to market shredded cheese and sliced natural
cheese. Years later, we became the first cheese       •   Launching a line of Reduced Sodium natural
marketer to introduce zippered re-sealable                cheeses, the only one of its kind in the dairy
packaging, and a few years ago, we co-developed           section, which we expect will continue to
the Slide-Rite Advanced Closure System for                grow as experts in the food industry call for
our shredded cheese packages.                             consumers to lower their salt intake.

Innovation is the heart of our culture, and we        •   Becoming an industry leader in portion-
know it will continue to fuel our growth at               controlled cheese and various sauces.
Sargento. Our marketing and innovation team
continues to closely monitor trends throughout        •   Listening to our customers to learn that
the food, cheese and dairy industries, and we pride       helping them identify wholesome foods in
ourselves on listening to our customers for ways          their refrigerators would make it easier for




18
    them to eat more healthfully. As a result, we   With more than 50 years of experience under our
    developed our new Sargento Fridge Packs,        belts, we are just as excited about cheese today
    which help keep cheese snacks front and         as my grandfather was when he founded the
    center in the refrigerator.                     company in 1953. Through it all, people come
                                                    first at Sargento. We continue to hire good people
•   Trailblazing our way through customized         and treat them like family. Our passion, coupled
    foodservice solutions and innovations.          with our commitment to culture, will continue to
                                                    fuel our growth for many years to come.
•   Breaking into complete meals for retail
    and grocery delis.                              Sincerely,




                                                    Louie Gentine
                                                    President and Chief Customer Officer




      Lou Gentine accepts the
“Economic Driver of the Year” award
    from the Sheboygan County
Economic Development Corporation


In addition, we are proud that our growth
continues to fuel our local economy. My dad,
Lou Gentine, was recently named “Economic
Driver of the Year” by the Sheboygan County
Economic Development Corporation, an honor
that recognizes a business owner or company that
is an integral driver to the economic development
of Sheboygan County.
COnSUMER
    Products
Consumer Products built further momentum around
a robust line of natural cheeses, available in snacks,
slices and shreds, by continuing its tradition of
innovation and record sales. With more than
4.5 percent growth in cheese sales in 2010,
Sargento continues to be consumers’ number one
choice for real cheese in the dairy case.

From Better for you products to the traditional
shredded cheese offerings, Sargento Consumer
Products Division fulfills consumers’ every need
with delicious, all natural cheeses in a variety of
styles and varieties.

Retail Sales: Continued Success
The Consumer Products Division had a successful year across the shreds,
slices and snacks lines. As consumers seek real, natural cheeses in the
dairy case, Sargento cheese is the clear choice. We’re proud to say that
awareness of our quality products continues to grow exponentially.

A few ways Sargento is moving forward as an industry leader:

•   Sargento is the number one brand of natural sliced cheese and
    number two brand of refrigerated cheese snacks.

•   We are driving the greatest growth in the sliced natural varieties.

•   Sargento has grown distribution and narrowed our gap to competitors
    over the last two years.



20
               Awards
At Sargento, we pride ourselves on the
exceptional taste and quality of our cheeses,
but are always pleased when others recognize
it as well.

In 2010, Sargento Reduced Sodium Colby-Jack
Sliced Cheese was recognized by Women’s
Health magazine as one of the top 125
Best Packaged Food products in the dairy
category. Self magazine included Sargento
Reduced Fat Mozzarella Shredded Cheese
as part of its recommended weight-loss
grocery list.

In addition, John Bottomley, senior
director of retail merchandising, was one of
three people inducted into the debut of the
national Frozen & Refrigerated Foods’
Refrigerated Food Hall of Fame.



                                       21
COnSUMER
   Products
Innovative Product Lines
Food, packaging and marketing innovations continue to play integral
roles in the Sargento Consumer Products Division. This year we
introduced Reduced Sodium natural cheeses, which offer 25 percent
less sodium and the same great Sargento taste. Sargento is the only
national brand offering a reduced sodium cheese in the dairy case.
This product fills a significant void with consumers, regulators and
health groups increasingly watching sodium intake.

Since the beginning, Sargento has listened to its customers’ needs
by offering high-quality, convenient products in shreds, snacks and
slices. The company capitalized on the demand for individually-sized
Italian-style products by selling packaged Mozzarella, Provolone,
Parmesan and Romano cheeses. We currently provide an array of
flavorful offerings:



Bistro Blends
Sargento offers our exceptional cheeses combined with natural herbs
and seasonings through our Bistro Blends line. Customers can punch
up their pasta with the Italian Bistro Blends or add a kick to their
enchiladas with the Taco variety.



Artisan Blends
The Sargento family admires Artisan cheese makers who use pure,
local ingredients and centuries-old techniques to create cheese in
the old-world tradition. We proudly unite with our artisan partners,
The Burnett Dairy Cooperative, El Regalo, Maple Leaf Cheese
Cooperative, Roth Kase USA and Zanetti Family Cheese, to bring
unmatched flavors to everything from fondue to frittatas.




22
Better For You: Reduced Fat and Reduced Sodium
We know that today’s consumers are keenly aware of the link
between diet and health, and our Better for You line of products is
helping to make this a reality. With Sargento Reduced Sodium and
Reduced Fat natural cheeses, consumers don’t have to compromise
taste or texture – and they can get their favorite cheese products in the
format and packaging they want. We currently offer the following
Better For You options:

•   Reduced Fat Natural Cheese Snacks: Light String,
    Colby-Jack Sticks and Sharp Cheddar Sticks

•   Reduced Fat Shredded Cheese: 4 Cheese Italian,
    4 Cheese Mexican, Colby-Jack, Mild Cheddar, Mozzarella,
    Sharp Cheddar

•   Reduced Fat Sliced Cheese: Colby-Jack, Medium Cheddar,
    Pepper Jack, Provolone, Swiss

•   Reduced Sodium Natural Cheese Snacks: Colby-Jack,
    String Cheese, Mild Cheddar

•   Reduced Sodium Shredded Cheese: Mild Cheddar, Mozzarella

•   Reduced Sodium Sliced Cheese: Colby-Jack, Provolone,
    Pepper Jack




Marketing Growth
To further expand the Consumer Products Division’s marketing
communications plan, Sargento added two partners – Grey New York
and GolinHarris – as its Agencies of Record for advertising and public
relations, respectively. In partnership with other agencies, the team is
continuing to evolve the marketing communications plan around real,
authentic natural cheeses.
FOOD
    Service
Sargento Food Service produces cheese products that are customized to the specifications
of popular restaurant chains throughout the nation, including:

»   Custom shreds and slices

»   Premium breaded appetizers

»   Culinary sauces

»   Hard Italian cheeses


Sargento is a leader in the industry, serving seven out of the top-10 and 14 out of the
top-25 chain restaurants in the United States.

The foodservice team prides itself on being able to solve problems for its customers
in order to drive business – whether that entails incorporating cheese flavors in a wide
variety of dishes, serving on culinary advisory boards, or serving on cross-functional
customer panels for some of America’s greatest restaurant companies. Comprised of a
collaborative team, the Food Service Division has vast knowledge of consumer
trends and works to collaborate with its customers to develop customized products.
This knowledge helps the team continue to provide products that are relevant to clients’
customers, further driving their business.This is just part of the reason why the
Food Service Division has retained many of its customers for more than 20 years –
unparalleled customer service, expert insights, solutions and strong client partnerships.

Sargento Food Service team members are recognized as natural cheese dairy experts
and a source of dairy industry advice throughout the industry. Division team members
are involved in organizations such as the International Food Service Manufacturers
Association, the National Restaurant Association and the Research Chefs Association.

Despite difficult times within the foodservice industry, Sargento experienced growth in
2010. Sargento was voted “Best in Class” in the foodservice industry by leading menu
decision makers at America’s most iconic restaurant brands. The team plans to continue
this momentum by filling industry voids in the culinary solution, cross-functional teams
and customized-menu solutions offerings.




24
CuSTOMER
    Accolades
The Sargento Food Service Division was recently
awarded the O’Charley’s R&D Supplier of the year
award in 2009.




       •   Food Service TRENDS
Always ahead of the curve, here’s a sneak peek into a few of the
foodservice industry trends the Sargento team is currently working on:


Better for You: As the industry prepares for new menu regulations
in the coming years, the Sargento team is already developing options,
like customized portions using Reduced Fat cheeses, to help customers
make the transition to more healthful dishes.


Snacking: Customers are looking for options to sustain them
between meals, and Sargento snacks like our Chocolate-Covered
Cheesecake Bites, provide the same great taste they love in traditional
meals but in bite-size portions.


Authentic and bold flavors: Consumers are becoming more
sophisticated and are seeking bold and authentic flavors, like our Jalapeño
Poppers, as opposed to processed ingredients.


Breakfast: Cheese is a big part of breakfast, and as consumers strive
to eat wholesome meals throughout the entire day, Sargento is bringing its
offerings to a new day part.



                                                                              25
FOOD
   Ingredients
Sargento Food Ingredients provides custom              Reduced Fat and Reduced Sodium also are
cheese products to meet the needs of food              increasing in popularity.
manufacturers, including sliced, shredded
and diced cheeses, portion-control packs, fillings     The Food Ingredients Division does this all in a
and sauces. Our team of experts works with food        customized way; there is no sell sheet or one size
manufacturers to offer customized solutions to fit     fits all program. Together, the team works with
their needs. For example, our Custom Melts™            each food processor to figure out the best solutions
use technology that allows manufacturers to            for them.
produce high quality sauces delivered in nearly
any refrigerated form - shreds, cubes, dices, slices   As the Food Ingredients Division looks to the
- all within seconds or minutes of heating.            future, the team is exploring frozen food
Added to a meal kit or side dish, Custom Melts         opportunities to drive innovation. In addition,
turn into sauces in minutes, making an ordinary        the cheese experts continue to identify
dish extraordinary. This provides a kitchen            opportunities to provide portion-controlled
solution for not only food manufacturers               products to meet food processors’ goals.
but also home chefs.

One such way this is accomplished is with
the Idea Center. This virtual research and
development kitchen allows food processors to
explore and create their own products directly
from the convenience of their computers.
This interactive, eight-step tool, gives food
processors the freedom to customize a product
just for their consumers.

But it doesn’t stop there; the family of cheese
experts within the Food Ingredients Division
has developed an array of offerings to fit every
need for food manufacturers and their customers.
Portion-control shreds and sauces make it easy to
offer great tasting meal kits for a wide array of
applications using convenient pouches and cups.
For example, portion-controlled products have
become popular with fundraising pizza kits, salad
kits and smoothies. Better for You options like



26
Culinary
   SOLUTIOnS DIVISIOn
At Sargento, we are always looking for new opportunities to bring our
high-quality, great tasting products to consumers. As Americans are
increasingly crunched for time, many are opting to buy prepared meals
at retail store delis. In fact, according to the research firm NPD Group,
approximately 20 percent of adults purchase a prepared item from a
retail store in a typical week. To reach this market directly, we’ve created
Culinary Solutions, a new division within Sargento leveraging the best
practices of our other divisions to grow this exciting new market.

With a focus on cheese products, this new division will allow groceries
and delis to deliver high-quality offerings.

In addition to providing exemplary products, the Culinary Solutions
Division is also collaborating with its business partners to help with menu
planning, market analysis, strategic business insights, joint development of
menu items, culinary expertise and custom efficiencies solutions.

Since its inception a year ago, the Culinary Solutions Division already
has the top selling meal in one of the leading retailer’s deli departments.




28
MEET ThE
    Sargento Culinary Team
The Sargento Culinary Team is comprised of the experts behind some
favorite Sargento delights. Together they work with the Food Service
Division to help solve problems for restaurants and foodservice companies
throughout the nation. With more than 20 years of experience as corporate
and fine dining chefs and as food developers, they both have their fingers
on the pulse of the food industry.

Whether they are working to spot trends like regional provenances
or food trucks, the Sargento culinary team is always thinking about
new innovations. Just recently, the chefs, research scientists and food
technologists reinvented breaded Mozzarella in new and interesting shapes
and varieties, like breaded cheese twists and scoops.

And what are these dairy experts up to now? They are currently looking
beyond cheese and wine, pairing innovative food and beverages together
and working to reinvent appetizers and salads found at many of the
popular restaurant chains.



                                                                             29
Sargento
   OPERATIOnS
Operations Mantra:
“Do it right the first time… and do the right things.”
Here at Sargento, the Operations team does not take its job lightly. We are
committed to delivering products to our customers that consistently meet
the highest standards for premium quality, wholesomeness and purity.
Food safety is the number one priority, followed closely by product quality
and customer satisfaction. For our team, safety and quality combine to
create a comprehensive system that is built into everything we do.

We know quality means doing things right the first time, preventing
defects and, if ever customers experience a problem with our products,
providing prompt, effective support. It’s the responsibility of all our
employees to uphold our Quality Assurance processes -- and we empower
employees to deliver on that responsibility every day. And it’s working:
Our Quality Assurance inspection scores average 94 percent—one of the
best in the industry.

In addition to being persnickety about service to our customers,
we are just as committed to our employees. We’re increasingly focused on
employee health and well-being, and we work hard to ensure employees
know this. We offer competitive wages for our area and industry.
But more importantly, we emphasize the need to establish work-life
balance and provide long-term, stable work for our employees. The spirit
of innovation is alive and well in the Operations team here at Sargento.
We foster an employee engagement environment that results in ongoing
continuous improvement efforts. At the same time, we pledge that
automation will not displace workers. That includes choosing to defer
installing automated processes until we have jobs for those that would
otherwise be displaced as a result of increased automation.

Our commitment to food safety, product quality, customers and employees
will continue to solidify our spot as a leader in the cheese industry.




30
2010
  Achievements
• Continued superior customer fill rates and
  customer satisfaction levels
• Building of a 50,000 square foot expansion to the
  distribution center
• Added improvements to the plants and installed
  state of the art equipment which allows us to
  continue delivering high quality products at
  competitive prices
• Implemented significant improvements in the ability
  to produce frozen sauces
• Continued to stay at the forefront of new
  technologies




                                                        31
ThE SARgENTO
   Board of Directors
Seated left to right: Mark Train, Jason Inc.;
Gail Lione, Harley –Davidson;
Wayne Oldenburg, The Oldenburg Group.

Standing left to right: Lee Gentine, Sargento;
Larry Gentine, Sargento; Lou Gentine,
Sargento; Jerry Jerome, Hormel Foods.

				
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