One Mighty Mill Year 5 Impact Report

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one MIGHTY mill PARTNER REPORT

YEAR 5

SEPTEMBER 6, 2023

YEAR 5

September 6, 2023 marks the fifth anniversary of our first stone mill in downtown Lynn, MA opening and starting to stone-mill organic wheat. After half a decade, our mission remains the same: to bring back local food systems that help our communities be healthy and thrive.

In year five, we have taken major steps to expand our geographic reach and to fulfill our mission to bring nutritious stone-milled foods to local communities. After expanding our roots in the East Coast, we successfully established a stone-milling ecosystem in the West Coast. We have 3 stone mills now spinning in Sebastopol, CA , are sourcing local CA-grown organic wheat, and taking that flour to bake locally to serve a new customer base. This has allowed us to increase local sourcing, up to 600,000 lbs of local wheat in year 5.

The second key highlight of year five was our work with schools, particularly Springfield Public Schools. After successfully introducing our stone milled bagels to their 30,000 students, we have co-developed a stone-milled pizza crust to serve the students at Springfield, made from stone-milled flour sourced and milled locally. A true highlight for our team was the results of the taste tests we conducted at several high schools: 94% of the student tasters preferred our stone-milled pizza to the current offering.

Furthering our mission centered around food justice, we also expanded to new school districts and will be serving stone-milled bagels to over 21,000 students in the Providence RI and Greenfield MA school districts. Our movement is gaining momentum as we hope to add more districts in the coming months. What’s amazing is that many of these students would not have access to our nutritious bagels without changes to the school menu led by our partners in Springfield, Providence, Greenfield, and Lynn.

As we think about the next five years, we’re excited to know that we can expand our reach geographically and have established a platform to introduce highly nutritious products that customers and our communities love. If you see opportunities for us to expand our mission in new regions or school systems, please reach out.

600,ooo

Lbs of local organic wheat milled in Year 5, up over 150% vs. Year 4

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Stone mills operational in 3 states: Massachusetts, New York, and California

4 Partner school systems - Springfield, MA, Providence RI, Greenfield MA, & Lynn MA

3,000,000

Lbs of wheat under contract with organic farmers in CA, NY and Montana

>53,000 Students that will eat our stone-milled bagels in Year 6, up 68% over Year 5

14 Employee owners of One Mighty Mill, we remain committed to provide shares to all our full time employees

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GOAL 1

Support Mighty Farms

We seek to build our mills near local bakeries that ideally are within 300 miles of organic wheat sources. We want to support local farmers and reduce the environmental impact and cost of long-haul grain transport.

In year five, we added a new supply partner in the West Coast – Adams Grain Co. Adams Grain Co is a family owned and operated business that was founded over a 100 years ago, when they began trading malt barley from farmers in the Sacramento Valley to exporters in San Francisco. We have learned from the California Wheat Commission that most large-scale flour mills in the state bypass California-grown wheat altogether in favor of sourcing from larger farms from the Rockies and Midwest. Adams partners with local farmers to source and clean the organic wheat that goes into our stone-milled breads. These farmers, such as Ted and Jake Lohse (profiled in this report) in Artois, California, are all within a 150-mile radius of our mills in Sebastopol CA. In year five, we sourced 600,000 lbs of local wheat from CA-based organic farmers and Peter & Hannah Martens Farm in Penn Yan, NY, which represented a 150% increase in local sourcing over year four. We hope to surpass our goal to source over 1,000,000 lbs of local wheat in year six.

Lbs of Organic Wheat Milled

150,000 lbs YEAR 1 390,000 lbs YEAR 2 780,000 lbs YEAR 3
Million lbs YEAR 4
Million lbs YEAR 5 04
1.3
1.8

Profile: Ted and Jake Loshe, J&T Loshe farms

Partner Organic Farm, Artois CA

We’re excited to source California-grown organic wheat for our mills in Sebastopol CA through our partnership with Adams Grain. One farm that Adams sources hard red winter wheat from is J & T Lohse Farm, run by father and son organic farmers Ted and Jake Lohse. Ted has been farming in Sacramento valley for over 50 years with son Jake following in his footsteps, just like Ted’s parents, grandparents, and great-grandparents. The family has grown wheat, barley, alfalfa, clover, rice along with raising sheep in the Sacramento valley. While the family farm became certified organic in 2009, Jake’s senior year in high school, Jake explains this was just an extension of the practices their family had been employing in the 1970s and 1980s before organic was a term.

For Ted and Jake, farming without chemicals and carefully rotating crops is essential to preserve the natural habitat for local wildlife. And, while organic certification comes with a lot of extra paperwork and reduces yield per acre, this can be compensated to a degree by higher prices for organic crops. Ted explains that they had to shift from rice farming due to the shortfall of water, and leases land in Artois CA to grow the hard red winter wheat that One Mighty Mill mills for its stone-milled organic breads.

True stewards of the land, the Lohse’s will let land sit for several years after harvest to rebuild the soil strength and avoid erosion before planting again. We’re proud to partner with the Lohse family and Adams Grain to source our California grown wheat to meet our local sourcing goals. We hope that our long-term growth in California will allow us to continue to source from future generations of the Lohse family.

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GOAL 2

Build more mills and bring healthier food systems to more communities

Our decision to build a local, stone-milling food system in California demonstrates how we follow our core principles to transform food systems. We fulfill our mission by placing our mills close to the communities we feed. We position them next to a local bakery partner, and then source as much local wheat as we can. In year five, we opened our third milling center in Sebastopol CA, and now have stone-mills in Massachusetts, New York, and California, near our largest concentration of customers. We hired Adam Schaible, a local Sebastopol resident and our newest Mighty Miller, to run our new facility. Taken together, our three milling systems (which spin a total of nine stone mills, three in each location), can produce 5,000,000 lbs of stone-milled flour per year. That’s enough to produce 6,000,000 loaves of bread or 36,000,000 bagels.

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Profile: MIGHTY WEST COAST MILLER ADAM

Operator of Mills in Sebastopol, CA

When we decided to expand West in year four, we needed to identify a strong leader to run our mills and establish our stone-milling eco-system in California. The day after we identified the site for our mills in Sebastopol, CA we were introduced to local resident and our future head miller, Adam Schaible. Adam joined One Mighty Mill after a 25-year career in education, most recently as superintendent of the Wright Elementary School District in Santa Rosa, CA. Looking for a career shift that aligned with his values and allowed him to work with his hands, Adam stepped right in to work with our mill builder Andrew Heyn and his team to build our mills and establish our flour receiving, testing and milling program in California. In addition, Adam works with our bakery partner Alvarado Street Bakery to test our products to ensure they meet our quality standards. He’s also out in the community identifying partners, such as breweries and local farms, that can upcycle our waste streams (parts of the wheatberry we don’t use in our breads).

While it might seem odd to hire a former superintendent of schools to run your mills, it makes complete sense, given that Adam has first-hand experience working with the land. When he’s not milling, he’s working alongside his wife Jennifer McClendon, farming roses on their property for her successful floral arrangement business, Jenniflora. (He even tried to use our bran as a fertilizer for their rose garden.) Similar to One Mighty Mill, Jennifer has created a local ecosystem only sourcing flowers for her arrangements from her farm and those within a 30-mile radius. As we look toward year six, we’re excited at the prospect of Adam also leveraging his experience in the education sector and as we look to identify ways to serve local California school systems along with our expanding retailer partners. One Mighty Mill’s long-term success is directly tied to our ability to attract dynamic, value aligned employee-owners such as Adam Schaible.

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Number of Mills in Operation and Flour Miling Capacity Per Year

300k lbs of flour

900k lbs of flour

1.1M lbs of flour

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

3M lbs of flour

5M lbs of flour

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GOAL 3

Feeding Mighty Communities

Another key part of our mission is to bring stone-milled flour to communities beyond the ones with grocery stores that sell our products. Five years ago, we made our very first sale of bagels, at cost, to Boston Public Schools, as we sought to provide increased access to nutritious whole grain foods. We’re proud to report that in year five, we have expanded our offering for students to include pizza crusts that we make with stonemilled flour and source more than 50% of the wheat locally. What’s most exciting is that we are replacing an industrial processed product with a crust that has more protein & fiber and much, much fewer ingredients you can’t pronounce. Our team visited Springfield for four taste tests and the results were clear – 94% of students preferred our fresh made, stone-milled pizza vs. their current offering.

When we start serving our stone-milled pizza in the fall, we’ll also be running an education program for the students, centered around a healthy diet of whole grains. Students will get to mill their own wheat on their own mini-stone mill, built custom by Andrew Heyn, of New American Stone Mills.

Following our success in Springfield, we’ve made progress reaching new students that wouldn’t normally get access to our foods. We’re happy to announce that in year 6, we’ll also be serving the students in Providence RI and Greenfield MA school districts, taking us to over 53,000 students served. We hope to add several additional districts in the coming months and take this number even higher.

94% of Springfield school students would like to replace big daddy pizza with one mighty mill crust

Do you want to see this on the menu?

94% APPROVAL RATING

Yes: 779

no: 54

Real Student Feedback 16

Profile: Aaron Lenart

Director of Wellness, Providence (RI) Public Schools

Aaron Lenart, the Director of Wellness at Providence, RI Public Schools, has been instrumental in introducing One Mighty Mill’s stone-milled bagels to the district’s 20,000 students starting in the ’23 school year. In fact, Aaron has been advocating behind the scenes for One Mighty Mill’s movement for years. After graduating at Johnson & Wales, Aaron worked at Kids First, an organization that advocates for regulations in Rhode Island to improve student nutrition, including a successful initiative to require schools to serve whole grains. Aaron went on to work at Cranston, RI public schools and was then part of the team that opened up the Springfield MA Culinary and Nutrition Center.

According to Aaron, bringing in One Mighty Mill’s bagels to Providence Public Schools is a win-win, as most whole grain foods are not something kids love to eat. But, One Mighty Mill’s stone-milled bagels are moist and flavorful, and a food Aaron thinks the students will really enjoy eating. Further, introducing our bagels allows Providence Public Schools to increase its local sourcing, as those bagels will be baked just 40 miles away in Brockton, MA with wheat milled in Hyde Park, MA.

All of Providence, RI public school students eat meals at school for free as part of the CEP (Community Eligibility Provision) for school districts in low-income communities. Breakfast in the classroom is a great way to improve student nutrition and outcomes, but it’s hard to serve nutritious and delicious meals during a 20-minute breakfast. Both we and Aaron think a protein packed, flavorful stone-milled bagel and cream cheese is the answer.

We’re proud to work with passionate pioneers such as Aaron Lenart to increase student access to flavorful nutritious whole grain foods. Through his help both at Springfield and Providence, we can proudly say we serve over 50,000 students each year.

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GOAL 4

Build a company the right way and create opportunities for all who work here.

A soon to be re-certified B Corporation.

On October, 13 2020, we achieved our goal of becoming a certified B Corporation. We’re proud to continue to be part of a community of leading companies that work hard to have a positive social and environmental impact and commit to balance profit and purpose. For us, this certification formalizes our commitment to our employees, community, and the environment. On October 14, 2023, we will recertify our commitment to these values for our second term as a Certified B Corp.

Recognized leadership in promoting shared values.

In year five, our team was proud to learn that our co-founder and CEO, Jon Olinto was selected as a winner of the E&Y Entrepreneur of the Year 2023 New England Award. This award “honors and celebrates business leaders who are building a more equitable, sustainable, and prosperous world for all.” We know challenging the status quo is not an easy feat, and are thrilled Jon was selected to reflect his tireless leadership to our cause.

Committed to 100% employee ownership.

We continue to make every team member eligible to earn an ownership interest in our company after completing their first year of full-time employment.

Rewarding our team for living our Mighty values.

In year five, we gathered our team to re-affirm our five core Mighty values, listed on the opposite page. And going forward, one quarter of each team member’s annual bonus will be tied to actions that embody those values through their work with fellow team members, our partners and the communities we serve.

OUR Mighty Values

1. 3.

2. 4. 5.

Do Good By Doing Better

We improve ourselves and the lives of others (our teammates, customers, partners, and communities) by committing to make things better than when we started.

Be Real

Real means transparent and unpretentious. We build genuine relationships with all partners.

Get Up. Stand Up.

Doing the right thing is the hard thing. To change a food system, we relentlessly resist the status quo.

Think We Not Me

We give of ourselves so that others can grow. And we believe in each other and in our shared work to create meaningful change.

Do Work That Makes Us Proud

Do work that matters and that we’re proud of - the kind of work we’d tell your kids about someday.

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