FedUp Foods 2023 Benefit Report

Annual Benefit Report

This publication was typeset in Authentic Sans by Christina Janus and Desmond Wong, and Cigars by Heavyweight Type Foundry.

Published in digital and print by FedUp Foods.

For additional information, please contact FedUp Foods at hello@fedupfoods.co, or through our website at fedupfoods.co

OUR PURPOSE

To craft delicious, high-quality, functional beverages, invest in the regeneration of our planet, and use business as a conduit for positive social impact.

A Letter from Our CEO

Welcome to our 2023 Benefit Report, a testament to a year filled with growth, accomplishments, and a commitment to using our business as a force to nourish the body, mind, and the earth that sustains us — paving the way for a brighter future for all.

In 2023, our team achieved remarkable milestones that not only fueled our business but also elevated our purpose. These accomplishments are not just metrics on a balance sheet; they are the building blocks of our vision to create a world where sustainability and social responsibility are woven into the fabric of everything we do. As a Benefit Corporation, we embrace a higher standard of accountability, holding ourselves to a set of environmental and social impact goals. Our commitment is not just rhetoric; it is a promise to effect tangible, authentic change within the communities we serve.

Our belief in creating resilient systems extends beyond our own company. It encompasses the body, the community, and the natural world. We understand that to build a better future, it takes a collective effort, and this philosophy is at the core of our identity. As stewards of the Earth, we are acutely aware of the intricate web of all living organisms and the delicate balance of our planet's ecosystems. It is this consciousness that drives us to act with purpose, always striving to make a positive impact for our planet, our people, and the communities in which we operate.

In this report, we will share the stories, the data, and the evidence of our journey throughout 2023. As we explore the pages ahead, we invite you to join us on this remarkable journey, and to envision the possibilities that lie ahead. Together, we can make a meaningful impact and build a better future for all.

Thank you for your continued support and partnership.

David Gray CEO

Celebrating 15 Years

FedUp Foods has a rich history as a purpose-driven organization, dating back to our founding in 2008. We wouldn’t be where we are today, if we had simply followed the established norms and accepted the status quo. Rather, we defied convention and pushed the boundaries of what is expected from a typical kombucha brewer and beverage manufacturer.

Our very name, “FedUp Foods,” symbolizes this drive and carries two meanings: being fed up with the current extractive nature of our food system and being fed up by literally feeding and nourishing yourself with good food. These two ideas form the backbone of our business and inform our work to this day. From developing the first patented, scalable craft brewing process rooted in ancient fermentation methods to actively investing in the regeneration of our planet, to making goodfor-you beverages more accessible, and using our business as a conduit for positive social impact, we prioritize decisions that consider people, the planet, and the prosperity of others.

As we celebrate our 15th year in business and our 3rd year as a Benefit Corporation, we take pride in being part of a growing community dedicated to using business as a force for good, benefiting not only us but also all who come after us.

Nourish the body, mind, and the earth that sustains us.

We embrace change and adapt quickly to new circumstances, challenges and opportunities to stay nimble in a rapidly changing environment.

Communicaton

We assume best intentions and invest in learning effective and thoughtful communication.

Community

We believe in the power of community and invest in building meaningful connections with our team, customers and stakeholders to create positive change together.

Collaboration

We strive to build a work environment that fosters collaboration to achieve shared goals and collective success.

Life-Long Learning

We pursue experiences and opportunities for growth to stay innovative and deliver value to our customers.

Gratitude

We work to build recognition and appreciation into our ongoing engagements with our team, partners and customers knowing it’s the small moments of gratitude that build long lasting relationships.

HR MILESTONES

In partnership with Director of Marketing

• Enlisted external marketing firm to audit organizational culture, engagement and values.

• From that work developed Employee Value Proposition and aligned organizational values.

• Executed strategy to engage team members to leave open and honest reviews on recruiting sites to help increase ratings and support recruiting efforts.

Reorganized the HR department and hired Sr Manager of HR to build a team capable of supporting all 3 locations.

In partnership with CEO

• Realigned and reorganized key positions to support 2023 growth strategy.

People

We believe that good work and good food provides nourishment for the human spirit and body which is reflected in our commitment to our team, community and on the shelf. We prioritize investing in our team through benefits and initiatives that promote personal growth and provide opportunities to enjoy the precious moments of life. Our impact

also echoes out to our community, and most visibly at the shelf. Through community partnerships and donations, as well as private label placements, we are able to make nutrient dense beverages more accessible to a wide array of people— our hope is that this becomes more commonplace across all varieties of foods.

113 Total Employees in the United States*

*As of December 31, 2023

Initiated profit-sharing program.

1% of profits shared across our entire team.

Investing in our Team: Training and Continuing Education Increases Year-Over-Year

“Our vision goes beyond business success to being a force for good in the world. To provide job advancement and opportunities for our team, the local workforce, and contributing to the overall wellbeing of the communities in which we serve.”

SARAH MULLINS Co-Founder, VP of People & Purpose

FedUp Foods Academy: Investing in the Leaders of Tomorrow

This year marked the inauguration of the FedUp Foods Academy, a flagship initiative designed to identify and nurture individuals for leadership positions within our organization. The FedUp Foods Academy focuses on educating, empowering and equipping prospective leaders with the tools, training and development they need and want. Since its inception, we are delighted to announce that seven graduates have successfully completed the program, a testament to the Academy’s commitment to cultivating a cadre of skilled and capable leaders poised to contribute to the ongoing success of our company.

Class topics include:

- Communication

- Effective Training

- Conflict Resolution

- Time Management

- Relationship Building

Classes are conducted in partnership WCI and AB Tech Community College.

6 Weeks 6 Graduates

"The most impactful was the emotional intelligence portion of the Relationship Management course. I learned to recognize and understand the emotions of my coworker and manage my behavior to foster empathy. "

"The teachings on communication and conflict management have equipped me to become a more compassionate and approachable leader."

Michelle Castellano Finance Department

Holly Feathers Marketing Department

Leadership Speaker Series

This year, we introduced a quarterly Speaker Series bringing together impact leaders from diverse backgrounds to share their journeys of triumphs, failures, and lessons learned. These conversations are like an intimate fireside chat, led by our CEO, David Gray, offering opportunities for our team to learn and grow, providing a connective thread to our community, igniting imagination, and introducing new possibilities and ways of thinking.

These events were offered not only to our internal team, but to vital members of our local community as well. We cannot thank all of our vibrant speakers enough for their time, energy and valuable insight.

Top Pictured: Captain Zeita Merchant with the FedUp Foods Speaker Series.

Bottom Pictured: Guest Speaker Matthew Stares in the midst of his talk on design and creativity in the workspace.

SPEAKERS THIS YEAR INCLUDED

Colonel Peter Tortorici

ISR Group Commander, United States Air Force

Known for his distinctive leadership style, his approach blends strategic thinking, decisive action and a strong focus on collaboration, Colonel Tortorici, talked to our team about his career journey, offering insightful advice and guidance for our team. He encouraged us to be agile, think creatively and adapt swiftly to challenges.

Madhu Mujoo

Senior Partner, Head of Innovation Practice for KPMG

In her talk, Madhu touches on a number of topics, including how to be a passionate and effective leader, her experiences as a woman of color within the corporate space, her journey in life, meditation as a daily practice and its transformative powers, and more.

Matthew Stares

Senior Vice President of Global Real Estate, Architecture and Development at MillerKnoll

Matthew shared his experience about Leading with Design and creativity in the workplace. He expounded on his theory of creating a team where everyone is able to shine by focusing on relationships and mutual respect; highlighting and empowering the unique talents of each individual.

Captain Zeita Merchant

U.S. Coast Guard Sector Commander and Captain of the Port of New York and New Jersey

Captain Merchant focused on the themes of “Leading Yourself, Leading Others, and Leading Through.” With over 26 years of dedicated and active-duty service, she’s a recognized authority in maritime safety and security, as well as crisis management. And in a groundbreaking achievement, Captain Merchant was nominated to the rank of Rear Admiral in July 2023, marking a historic moment as the first African American woman to attain this rank in the service’s 233-year history.

The people of Asheville and Marshall are our neighbors, our friends, our employees and our community. It's an honor to give back to the community that has given us so much.

Whether it's financial aid or the provision of our products, each contribution makes a meaningful difference where it matters most, right here at home.

We are proud to support the work of Black Wall Street Asheville through our sponsorship of Grindfest, a festival that aims to celebrate and support the Black community in Asheville and the surrounding areas.

Investing in Our Community

SPOTLIGHT

Black Wall Street and GrindFest

Asheville, North Carolina, renowned for its stunning mountain landscapes and vibrant arts scene, also boasts a rich history, including a once-thriving Black Business District, notably “The Block” and Southside Asheville.

Unfortunately, this vibrant community faced significant losses, with over 1,000 homes, businesses, and essential services disappearing. The initiative to revive this heritage began in 2020 with Black Wall Street. Originally aiming for 20 businesses, the program exceeded expectations, enrolling 74 businesses that generated over $1 million in revenue and created 22 jobs. Established in 2021 as a 501c3 organization, Black Wall Street, founded by J Hackett, continues to bridge economic gaps and remove barriers for people of color in business, tracing its roots back to a historic era when African Americans, despite segregation, created a thriving community through entrepreneurship in Asheville.

For over 3 years, Zane Adams, Co-Founder and our VP of Strategy, has served on the board of Mountain BizWorks, guiding their Catalyst Program, which supports Black Wall Street.

And, we as a company, are proud to sponsor the work of Grindfest, a festival that aims to celebrate and support the Black community in Asheville and the surrounding areas. This festival brings together local businesses, entrepreneurs, and community members to showcase their talents, products, and services. The event also serves as a platform to educate the public about the importance of Black economic empowerment and the history of Black Wall Street.

$15,000 to local community organizations

73,000 oz

of product donated to local community

ENVIRONMENTAL

COMMUNITY

Planet

We believe that reducing our carbon footprint, harnessing renewable energy, prioritizing regenerative partners and practices provides vital nourishment for our planet. Everything is interconnected and we are mindful of our

actions and our impact on the environment and are committed to taking tangible steps to make a positive impact and leave the earth better than how we found it.

"Every small step adds up, and when businesses collectively work towards reducing their carbon footprint it contributes to a healthier planet for current and future generations."

ZANE ADAMS Co-Founder, EVP of Strategy and Development

$

115,000

to Fund Community Projects and Social Programming through Fair Trade USA

7,500 Trees Planted

Healthy forests give so much back to us: they clean our air and water, support health and biodiversity, stabilize our climate, and more. Since 2021, we’ve supported the work of One Tree Planted, because we believe replenishing the world’s forests is one step towards protecting our home planet. In 2023, we donated $7,500 – the equivalent of about 21 trees per day or 1 tree planted for every hour we were open for production.

288 Acres of Restored Soil

In our partnership with Global Organics, we have chosen to prioritize the two ingredients we use most: tea and sugar. For more than 20 years, Global Organics has proudly partnered with the Native Green Cane Project in Brazil – the largest sustainable agriculture project in the world.

1,580,812 Pounds of Fair Trade Sugar Used

Our Global Organic Fair Trade Impact funded 8 social programs across Brazil in 2023. Including: Improved facilities for an orphanage for girls in Sao Paolo, installed 6 solar heating plates and constructed a training room for job skills and crafts, supported over 800 people through sports, theater, and music uniforms.

A Regenerative Path Through Sugar

Beneath our feet is the largest carbon deposit in the world: soil. To be more specific, healthy soil is the largest carbon deposit available to us — and we’ve been taking it for granted.

Since the 1970’s over 30% of the Earth’s topsoil has been lost due to chemical and industrial agriculture practices, and it takes over 100 years to produce one single inch of new, healthy topsoil. Unless, of course, we change the way our agricultural system works altogether.

Companies like Global Organics are working to rethink how we grow, harvest and produce our food. For more than 20 years, Global Organics has proudly partnered with the Native Green Cane Project in Brazil – the largest sustainable agriculture project in the world.

Since non-gmo, USDA organic sugar isn’t available in bulk in the US, it’s incredibly important that our sugar source be meaningful, responsible and go above and beyond just “organic”. This is why we are immensely proud to work with Global Organics as our high quality, organic and regenerative sugar source.

They have a closed-loop sugarcane process that puts the focus on maintaining a healthy ecosystem, rather than maintaining a healthy crop; their sugarcane growth, production and shipping to the US is 100% carbon neutral; and they are committed to advancing their social and economic impact through programs that improve the quality of life of their employees and community.

Today, the Green Cane Project farms have close to 20,000 hectares (49,421 acres) of certified organic cane fields, and the results have been incredible:

• 100% Carbon Neutral – from the fields to our warehouses in North America and Europe

• 47,000 tons of CO2 eliminated from the atmosphere

• 49+ Endangered species have been found within our sugar cane fields

• 1,000,000+ Trees planted to create 11,000 acres

• Higher resistance to drought and pest damage

• 23 times the biodiversity of conventional fields, including many rare species

Teatulia is an example of when regenerative agriculture is given the space and time to thrive

The tea leaves used in crafting our kombucha is sourced from our long-standing partner, Teatulia, from the Kazi & Kazi Tea Estate in northern Bangladesh. Teatulia’s Tea Garden is operated by a cooperative of women, and has been using regenerative agricultural practices for over three decades. In the early 2000s, Teatulia began a transformative journey, converting barren and overworked land in Northern Bangladesh into a flourishing biodiverse ecosystem, made possible by regenerative growing practices. The once desolate area saw the gradual return of wildlife and plant species, and their community began to heal in more ways than one.

However, creating a more sustainable and resilient food system goes beyond regenerative agriculture; it must also include the individuals integral to the entire process – from those who work the fields to those involved in packaging and shipping, and finally the end consumer. In regions like Northern Bangladesh, Teatulia recognizes the importance of providing the community with safe and healthy jobs, free of pesticides, as just one small part of the equation. Teatulia’s approach is holistic, focusing on environmental, social and economic impact. By prioritizing these dimensions, they endeavor to enhance the lives and overall wellbeing of the community, both in the present and for future generations.

Pays wages 56% above the industry average, not only contributing to the local economy, but also decreasing poverty rates.

Basic literacy and math education are provided so women are more employable, independent, and can confidently participate in the local economy.

Women learn organic farming skills that help them feed their families, earn a profit on their crops, and take care of their land for future generations.

3,500 Current Cooperative Members

418 Women's Literacy Graduates To-Date

514 Organic Farming Trainees

FedUp Foods Summit

We are working to reshape the food system so that it is comprehensively regenerative. That means that food is cultivated, grown, processed, packaged, stored, shipped, merchandised, sold and consumed in a way that nourishes and restores the soils which sustain all of our lives.

This year, we convened our first FedUp Foods Summit which brought together thought leaders from across our supply chain to collaboratively unpack what a truly regenerative food product would look like, and what role each of us can play in bringing more regeneration into all products touched by our businesses.

Our goal for this initial gathering was to open a dialogue, facilitate networking, and leave with a deepened and enhanced perspective of what it means to shift our supply chain to be more regenerative. We left feeling inspired by the insights and passion shared all around and are excited to continue the conversation in the months and years to come.

ATTENDEES INCLUDED PARTNERS LIKE:

• Global Organics, Ltd.,

• Teatulia Organic Teas

• ADM

• Berlin Packaging

• Genflex Labeling Solutions

• Eat Well Global, Inc

"The summit provided a full product overview and insight into other areas that I'm not as close to, but still impact the overall supply chain. It got me to think about the big picture and various inputs contributing to the full landscape."

ATTENDEE

Small But Mighty Changes

"The reality of sustainable and ethical growth is that it takes time. We are always looking for ways to continually improve, whether they be small changes or big changes — they all have an impact."

JEFF BUSCHER Co-Founder, Chief Engineering Officer

100 metric tons of CO2 removed from the atmosphere due to carbon offsets

100% (43,000 lbs) of our spent tea leaves are composted and the remaining nutrients in the leaves are used to feed and enrich soil at a nearby farm

The installation of our new centrifuge has prevented over 640 plastic filters from ending up in landfills

Looking Ahead: 2024 and Beyond

A Proven History of Growth and Expansion

2008 2010

From a small kitchen in Asheville, NC, Jeannine and Sarah began making kombucha as a healthy alternative for their kids. From gifting jars to friends and neighbors, and eventually selling through farmers markets.

We opened the first commercial kombucha brewery in the Southeast, moving to a 7k sq. ft. facility, where leadership members lived. The Kombucha crisis happens which increased demand significantly.

2017-2018 2022

We moved to our current Marshall campus to expand production capabilities for greater volume and broader product lines. Started experimenting with fermenting water kefir at scale.

We merged with Capital Kombucha, bringing Dre Schneider to the team, and shifted to a “Private Label First” strategy.

We expand into our second location in Erwin, totaling nearly 60k sqft, tripling our capacity. Prebiotic sodas are added to our product portfolio and successfully launched.

2024 - Wilmington, NC

It’s with great pride and anticipation that we share a new milestone in our company’s evolution. This summer, we’re taking our cold brew journey to new heights as we proudly announce the opening of our third facility nestled in the heart of Wilmington, NC!

The decision to set roots in Wilmington was deliberate, driven by the city’s exceptional quality of life, rich culture, and strategic alignment with our mission. The warm welcome from the EDC and community further solidified our confidence in the boundless potential of this vibrant city.