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
At Sargento, we’re proud to say, “Our family’s
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 don’t rest on our laurels.
We’re 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.
04
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
as the “Top Workplace 2010.”
At Sargento, we value our former and current
employees. One of our longtime family members
is retiring, and he’ll 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, he’s 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.
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
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.
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 mile-
stones. 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 employ-
ees” a worker wrote in a company evaluation.
Opportunities
Sargento pays for college tuition for any full-time
employee who pursues an associate, bachelor’s
or master’s degree, even if the schooling is not
directly linked to the job.
Financial
Sargento holds a meeting every year to explain
the company’s 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).
Health
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.

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
My family’s 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
18
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
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 portion-
controlled cheese and various sauces.
• Listening to our customers to learn that
helping them identify wholesome foods in
their refrigerators would make it easier for
 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. 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
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.
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.

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.