2010 REPORT

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

Administration
Accounting Marcia L. Stanczyk James J. Birenbaum Senior Vice President Treasurer Vice President Controller Vice President Information Technology Vice President Corporate Communication & Government Relations

Information Technology Suzanne M. Peterson Communications Barbara S. Gannon

Operations

Lee E. McCollum Karl L. Linck Dennis E. Roehrborn Gary A. Vissers Janet R. Raddatz Shawn R. Marcom

Vice President Manufacturing Vice President Engineering Vice President Logistics Vice President Demand Planning Vice President Quality and Food Safety Vice President Procurement

Sales and Marketing

Food Service Kevin G. Delahunt Michael P. Sokol President Food Service Division Vice President Sales President Food Ingredients Group/Portionables Inc. President Consumer Products Division Vice President Sales Vice President Marketing Senior Vice President & General Manager Sargento Culinary Solutions

Food Ingredients Michael A. McEvoy Consumer Products Michael P. Pellegrino Mark D. Gumm Daniel Chip C. Schuman Sargento Culinary Solutions David T. Vroom

Innovation

Cathryn Fritz-Jung Rod J. Hogan

Vice President Research & Development Vice President New Business Development

TABLE OF CONTENTS
Letter to Stakeholders from Lou Gentine Values and Corporate Culture Community Commitment Sustainability Letter to Stakeholders from Louie Gentine Consumer Products Division Update Food Service Division Update Food Ingredients Division Update Culinary Solutions Division Update Operations Division Update Board Members 04 06 12 16 18 20 24 26 28 30 32

Lous

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, well 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 as the Top Workplace 2010. At Sargento, we value our former and current employees. One of our longtime family members is retiring, and hell always be a part of the Sargento family. Hired by Leonard as a Divisional Sales Manager, Mike Gordy has worked at Sargento for 32 years. During his time with Sargento, hes touched many parts of the business, from Vice President of Sales, Director of SAP Implementation, Senior Vice President of Operations, President of Consumer Products, Senior Vice President of New Channel Development to his latest role as President of Food Ingredients.

At Sargento, were proud to say, Our familys passion is cheese. Our passion for exceptional cheese is what drives us persnickety people to develop the products that our consumers have come to love. But we dont rest on our laurels. Were committed to developing products and solutions that move the cheese industry forward, and, as a result, the company continues to grow. Since 1953, Sargento has grown from a retail storefront business in Plymouth, Wis., into a national leading marketer of quality cheese products. We are recognized for our excellent products, family values and service to retail, foodservice and industrial customers. With dedication and expertise, we continue to set the pace for change in our industry.

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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 Gentine, 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 Gentines 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!

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STATEMENT OF AND

Values

Purpose

Sargento is a family-owned cheese company dedicated to enhancing long-term stakeholder 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.

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BUSINESS AND PERSONAL

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:

CODE OF

Ethics

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 We Will Be Fair

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.

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

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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.

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VALUES AND CORPORATE

Culture

Commitment to Employees
Sargento Foods Inc. is focused on people, pride and progress. We were humbled when Milwaukees 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 Its the people. Everybodys friendly. We have a good time. Sargento believes in putting the companys values into practice, in the workplace and outside. Examples include:

Work/Life Balance

Sargento allows production workers a certain amount of time each year to tend to family matters such as school events. For some positions, workers can have flexible schedules, telecommute and job-share.

Community Service

As a family-owned company, serving the community is a core part of the Sargento culture. Employees contribute time and talent to a variety of philanthropic endeavors, such as Junior Achievement and youth sports.

Social

The company sponsors a Christmas party for employees, a Christmas luncheon for retirees and an annual event to celebrate service milestones. Employees also participate in a biannual summer picnic with their families and enjoy other events such as golf, bowling and fishing outings. This commitment to fostering a family-like culture is recognized by employees, At each and every event, the Gentine family is there with the employees a worker wrote in a company evaluation.

Financial

Sargento holds a meeting every year to explain the companys financial situation and to discuss political and economic events affecting its performance. Employees receive profit-sharing bonuses when the company performs well. Sargento allocates an amount equal to 3 percent of pay into a retirement account for every employee and will match up to 3 percent more of employees contributions into their 401(k).

Opportunities

Health

Sargento pays for college tuition for any full-time employee who pursues an associate, bachelors or masters degree, even if the schooling is not directly linked to the job.

Sargento has a nurse practitioner and a physical therapist present at its Plymouth headquarters and Kiel plant several days a week, and workers and their families pay $10 per visit for routine care.

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THE SARGENTO
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.

Story

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 lifeBeing employed at Sargento has made my family stronger and appreciative for the finer things in life, because of Sargentos 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.

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COMMUNITY

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 companys 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.

Commitment

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. Bens Community Meal Program

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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. Bens 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. Bens in Milwaukee to serve to guests. Sargento provides 90 pounds of food to St. Bens 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 Forces programs. In addition, for every touchdown scored by a wide receiver or tight end, Sargento donates an additional $500 to Pauls 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 arent 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 theyve even created a DVD to leave behind for the residents!

The SECAP Singers are the highlight of our year. In fact, theyve 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 companys 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.

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COMMITMENT TO
Overview

Sustainability
Energy Transportation Wastewater Water Usage

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:

Packaging Suppliers Storm Water Solid Waste

Building Methods Asset Utilization Compliance Programs 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 companys safe and streamlined operations:

Reduced new construction warehouse lighting cost by 24 percent with self-dimming, occupancy-sensored lighting. Wastewater discharge in North Sioux City reduced by 78 percent in Biological Oxygen Demand. Slice line packaging material reduced by 10 percent. Wastewater discharge in Hilbert reduced by 62 percent in Biological Oxygen Demand.

Environmental Stewardship

Compatible

Social Responsibility

Sustainability

Viable

Equitable

Economic Viability

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.

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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.

Louies
LETTER
we can improve their lives, whether its 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 top-10 and 14 out of the top-25 chain restaurants in the United States. Sargento continues to chart new paths in the deli and grocery industry and is expanding our reach into the frozen food industry. Recent innovations from our team include: Launching a line of Reduced Sodium natural cheeses, the only one of its kind in the dairy section, which we expect will continue to grow as experts in the food industry call for consumers to lower their salt intake. Becoming an industry leader in portioncontrolled cheese and various sauces. Listening to our customers to learn that helping them identify wholesome foods in their refrigerators would make it easier for

My familys innovative spirit began in 1953 when the company was founded. Shortly after, my grandfather and a couple of his close friends invented the vacuum packaging process to preserve freshness and became the first company to market shredded cheese and sliced natural cheese. Years later, we became the first cheese marketer to introduce zippered re-sealable packaging, and a few years ago, we co-developed the Slide-Rite Advanced Closure System for our shredded cheese packages. Innovation is the heart of our culture, and we know it will continue to fuel our growth at Sargento. Our marketing and innovation team continues to closely monitor trends throughout the food, cheese and dairy industries, and we pride ourselves on listening to our customers for ways

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them to eat more healthfully. As a result, we developed our new Sargento Fridge Packs, which help keep cheese snacks front and center in the refrigerator. Trailblazing our way through customized foodservice solutions and innovations. Breaking into complete meals for retail and grocery delis.

With more than 50 years of experience under our belts, we are just as excited about cheese today as my grandfather was when he founded the company in 1953. Through it all, people come first at Sargento. We continue to hire good people and treat them like family. Our passion, coupled with our commitment to culture, will continue to fuel our growth for many years to come. 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. Were 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.

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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 Womens 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.

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CONSUMER
Innovative Product Lines

Products

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.

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Better For You: Reduced Fat and Reduced Sodium

We know that todays 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 dont 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 Divisions 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

Sargento Food Service produces cheese products that are customized to the specifications of popular restaurant chains throughout the nation, including:

Service
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 Americas 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 Americas 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.

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CUSTOMER

The Sargento Food Service Division was recently awarded the OCharleys R&D Supplier of the Year award in 2009.

Accolades

Food Service TRENDS

Always ahead of the curve, heres 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 Jalapeo 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.

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FOOD

Ingredients
Reduced Fat and Reduced Sodium also are increasing in popularity. The Food Ingredients Division does this all in a customized way; there is no sell sheet or one size fits all program. Together, the team works with each food processor to figure out the best solutions for them. As the Food Ingredients Division looks to the future, the team is exploring frozen food opportunities to drive innovation. In addition, the cheese experts continue to identify opportunities to provide portion-controlled products to meet food processors goals.

Sargento Food Ingredients provides custom cheese products to meet the needs of food manufacturers, including sliced, shredded and diced cheeses, portion-control packs, fillings and sauces. Our team of experts works with food manufacturers to offer customized solutions to fit their needs. For example, our Custom Melts use technology that allows manufacturers to produce high quality sauces delivered in nearly any refrigerated form - shreds, cubes, dices, slices - all within seconds or minutes of heating. Added to a meal kit or side dish, Custom Melts turn into sauces in minutes, making an ordinary dish extraordinary. This provides a kitchen solution for not only food manufacturers 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 doesnt 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

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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, weve 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 retailers deli departments.

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MEET THE

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.

Sargento Culinary Team

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Sargento
Operations Mantra:

OPERATIONS

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. Its the responsibility of all our employees to uphold our Quality Assurance processes -- and we empower employees to deliver on that responsibility every day. And its working: Our Quality Assurance inspection scores average 94 percentone of the best in the industry. In addition to being persnickety about service to our customers, we are just as committed to our employees. Were 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.

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2010

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

Achievements

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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.