2022 March Board Book

2021 Distributor Volume Incentive Program One of CMAB’s core programs in foodservice is our volume incentive plan with the major distributors. The goal of the program is to encourage significant growth in California cheese sales through these distributors. The participating distributors accrue marketing funding to use to promote RCM products based on large growth increments (+1 million lbs of cheese for example). Below are the results reported so far for our 2021 program: Select 2021 Foodservice Distributor Growth #'s - CA Cheese (million lbs) 2020 2021 abs chg % chg Distributor 1 6.5 Distributor 2 16.1 19.8 3.7 23.0% Distributor 3 37.8 40.6 2.8 7.4% Distributor 4 95.8 121.3 25.5 26.6% Total 149.7 181.7 38.5 We are still finalizing, but most of the volumes have been reported. On cheese alone, this CMAB program helped drive 38.5 million incremental pounds. Some of this growth is certainly due to the 2020 lockdown vs. more restaurants open in 2021, but pizza which is our number one usage for cheese has remained relatively steady throughout the pandemic. Here is an example of an ad in a distributor newsletter for one of the California pizza cheeses: