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Products Processing and Packaging: An Exciting New Opportunity for AbilityOne速!

Potential Opportunities in Commercial Markets


Background • Brief history of NISH/ AbilityOne® food and packaging projects • Overview of potential in commercial projects • NISH project plan

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Current Federal Customers • USDA – Domestic and Export Feeding Programs – School Lunch Program

• Federal Bureau of Prisons • Department of Defense – Dining Halls – Operational Rations

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Current Food Products

Department of Defense Dining Halls: Spices Bakery Mixes Coffee Nonfat Dry Milk Developing: Vegetable Oils Roll Mix/Sweet Roll Mix Canned Nuts Coffee

Other USDA Instantized Non-Fat Dry Milk Vegetable Oil Bakery Mix Developing – Corn Soy Blend

Federal Prisons Produce

Operational Rations: UGR-A Spices UGR-B Bakery Mixes

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Doubling Jobs Goal • NISH Products staff realized that to meet this goal, we must look to the commercial world • We knew that CRPs are eager for this kind of project • We reached out to contacts in grocery industry • These contacts were highly supportive of the AbilityOne mission and enthusiastic about the possibilities – HEB visits to CRP in September 2010 and March 2011 – Products team conducted initial strategic planning/brainstorming in January 2011 – Held meeting with grocery industry experts – March 2011

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March 2011: PPP Initiative • Conduct an initiative to: – Develop and/or enhance CRP product processing and packaging capabilities • Identify current capabilities (what are CRPs currently doing in the commercial market, in addition to current AbilityOne projects?) • Identify specific needs for these types of projects (equipment, processes, certifications, etc.)

– Find opportunities – focus initially on current capabilities – Implement these food (and non-food) opportunities for the commercial market.

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Project Planning/Next Steps • Continue to meet with industry experts • Form Advisory Council • Complete Strategic Plan • Develop detailed project plan with a PHASED APPROACH – – – –

Key deliverables and tasks Resources Responsibilities Risks

• Continue communication to stakeholders – beginning with a session at the NISH National Conference

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Goals for National Conference Session

• Determine level of interest from CRPs • Communicate need for information about current commercial projects • Discuss opportunities and challenges • Share current thinking on approach and plan • Understand unique challenges in commercial/grocery world

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Commercial Market Opportunities and Challenges

JOSEPH L. WILLIAMS President JORDAN MARKETING ASSOCIATES, LTD (636) 532-4212 jwilliams@jordan-marketing.com Page 9


Enormous Potential • The retail grocery industry in the U.S. is approaching $1 trillion dollars in annual sales • Many CRPs are already successfully competing in this market • Branded products • Private label • Contract packing

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The Market

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Retail Formats

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Challenges • Slotting fees for branded items • Brokers • Package development • Logistics requirements • Technology • Margins • Quality • Other

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Target Projects: We will seek projects that: •

Minimize time to launch

Utilize current contacts

Maximize ROI

Maximize profit margin

Have a consistent requirement

Add or expand production capabilities

Minimize complexity for NISH and CRP

Provide opportunities for people with more significant disabilities

May provide opportunities for smaller and/or rural CRPs

Take advantage of NISH and CRP core competencies

Lead to development of additional opportunities

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HEB Grocery – San Antonio, Texas John Scott Director, Quality Assurance H-E-B Grocery, San Antonio, Texas (210) 938-4621 Scott.John@HEB.COM

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HEB Grocery – San Antonio, Texas • History • Operations: – Market Areas – Employees (Partners) – Retail Supermarkets – Manufacturing Plants (Internal and External) – Distribution Centers – Sales/Growth • HEB Own Brand Products

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Why AbilityOne – HEB’s Bold Promise

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Opportunities in Commercial Sales – A customers Own Brand/Private Label Products – Manufacturing plant Raw Materials – Food Service/Restaurant Operations – Your Brands – At the national and/or regional level

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Commercial Requirements to Consider • Competitiveness • Quality Management Systems – Food Safety and Quality - GFSI Certification – Waste Reduction and Idea Programs

• Formal Business Plans • Strategic Roadmap and Initiative Priorities • Educate the Commercial Industry • Well Planned/World Class Sales and Marketing Approaches Page 19


HEB/QA Support • Participate On Collaborative Commercialization Steering Team • Source of Training (e.g. GFSI – SQF; Food Safety/HACCP; Continuous Improvement; Food Technology, etc.) • Educating Commercial Clients • Sounding Board • Idea Generation • Product Introductions at HEB

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DePaul Industries Dean Stearman Vice President, DePaul Industries

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DePaul Industries Commercial Business Success WHY Mission –To change the landscape of employment for persons with disabilities WHAT Commercial Enterprises Temporary Staffing, Security, Food and Consumer Goods Contract Packaging HOW Listen to customer needs Creating solutions to customer problems Focus on the demand not the supply

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Growing Commercial Enterprises Transformation From Vendor to Valued Supplier

PTAC Guiding Principles to Transform and Compete People, Transparency, Adaptability, Collaboration

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Built by Demand Supporting Customers Supporting Mission Supporting Industry Page 24


Challenges/Lessons Learned You can do it yourself, but you cannot do it alone‌

Collaborate, Collaborate, Collaborate

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TVS

Transylvania Vocational Services, Inc., Brevard, North Carolina Becky Alderman Chief Operating Officer 828-884-3195 becky@tvsinc.org Page 30


TVS Government Products: • •

USDA Instant Nonfat Dry Milk USDA Low Fat Bakery Mix Page 31


Food Manufacturing Equipment Much of the equipment and machinery required in food manufacturing provides a high degree of skill training Page 32


USDA contracts have provided work for all our employees Setting up shipping cases is one task that involves some of our employees with more severe disabilities Page 33


TVS Commercial Products • • • •

Whey Low sugar substitute - 4 varieties Tenda Bake Pancake Mix – 4 flavors Fox River Rice - 4 flavors Gaia Herbal Products – 3 varieties Page 34


Product Processing and Packaging: An Exciting New Market for AbilityOne!

BECKY ALDERMAN COO Transylvania Vocational Services, Inc. PO Box 1115 Brevard, NC 28712-0115 (828) 884-3195, ext: 226 becky@tvsinc.org Page 35


Session Evaluation Information

SESSION TITLE: PPP SESSION CODE: OP-W300

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Product Processing and Packaging-Presentation  

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