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1 ANNUAL 2013

2 ENGAGE WITH US Facebook.com/AlterEcoSF Twitter

3 IMPACT We had a remarkable year in 2013, our growing sales volume allowed us to greatly increase our impact along our supply chain. Your purchases translated to $4.6 million of income transferred to our cooperatives and their communities. This also allowed for over $289,645 in Fair Trade Premium to be given to our farmer partners to finance community based projects and programs. Each cooperative democratically decides how to invest the premium in the interest of its members. This year, our sugar coop in the Philippines created a Hacienda within the farmers community, to use as a central meeting place, as well as a day care for the children of the field workers. NEW PRODUCT We launched a brand new product in October, the Alter Eco Truffle. We reinvented the classic treat everyone knows and loves, but only with the most delicious and the most sustainable ingredients. By blending one of nature's most nourishing oils, coconut oil, and cacao, we have created an incredibly smooth and addictive treat without any palm kernel oil, soy or other emulsifiers. We also got the privilege to work with a new fair trade cooperative supplying our coconut oil, FTAK. NEW PARTNERS IN KERALA, INDIA We have begun working with our newest partner cooperative Fair Trade Alliance Kerala (FTAK), off the Malabar Coast in India. FTAK was founded in 2005 and already has more than 3,500 members, most of whom were part of a mass movement of producers in Kerala struggling against farmers' indebtedness. Among many other things, producers are taught how to implement biodiversity practices, such as Jaiva Krishi, a sustainable farming method mimicking virgin rainforest, where birds, squirrels and even wild elephants roam safely. COMPOSTABLE WRAPPERS Keeping in align with our full circle sustainability state of mind, we brought to market the first home compostable wrapper in North America. Printed with compostable ink on material made of sustainably harvested birch and eucalyptus, not using any petroleum, chemicals or GMOs, these wrappers don t sacrifice shelf life or the high quality of the truffle. With 90% of our current packaging being either recyclable or compostable, we re just that much closer to 100% sustainability. We are moving towards transitioning our PET standard pouches (the remaining 10% of our packaging) to compostable material. NEW INSETTING PROGRAM We began working with a new program in Peru, REDD, in order to additionally offset our emissions. Along with replanting trees, we have contributed to the conservation of 267,000 acres of primary forest, which is home to 42 endangered species. This preserves biodiversity and existing land.

4 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000, From partner cooperatives 9,000 Dominican Republic 902 the Philippines 673 Ecuador 1,886 Peru 1,894 Bolivia 5,000 Paraguay 3,500 India 1,116 Madagascar 367 Thailand means COMMUNITY PROJECTS & DEVELOPMENT PROGRAMS Including education, health, financial support, trainings, infrastructure, machinery, livestock *Alter Eco offsets 100% of its direct emissions (GHG Scope 1) as well as its indirect emissions occured throughout the supply chain (Scope 2 and 3, three times the amount of the direct emissions in 2012) **We offset our 2012 carbon emissions by contributing to the conservation of 267,000 acres of primary forest via our new REDD program in Peru

5 Cooperative: Alter Trade Country: The Philippines Crop: Sugarcane Product: Unrefined Mascobado Sugar Date Founded: 1984 Alter Eco Partner Since: 2004 Members: 902 Communities: 7 associations Full Time Staff: 22 (the cooperative has a strong female leadership presence and has created multiple women s community organizations) Current Project: Hacienda; a community center in the village that doubles as a daycare center as well as a community meeting space. Coop History: For a long time, producers in the Philippines were trapped in a share-cropping system. This meant farmers worked brutal hours and were often forced to give a high unreasonabe percentage of their crops to the land owner, often much more than they could afford. Alter Trade blossomed as an alternative for farmers to be able to own their land and escape from this submersive system. Today, there are 7 communities of farmers involved. ADELINA MAGBANUA 47 years old I ve always wanted my kids to go to college, as I ve never got the chance to go myself. Joining the Alter Trade cooperative made it possible. Alter Eco staff visited the coop after the devastating hurricane swept over the islands. While aiding in relief efforts, Alter Eco staff also had the pleasure of speaking with Adelina Magbanua. Adelina has been working on a farm, harvesting sugar and rice for as long as she can remember. Before, she and her family would cut down trees and burn land in order to have more space for their plantations. Now, through the aid of agro-technicians, Adelina is not only taught how to sustainably harvest her share of crops with respect to the environment, but also replants trees and creates crop diversity. By growing other crops such as jackfruit, rambutan, durian and lemongrass, sugarcane farmers can grow their own food communally, and have access to additional and independent revenues.

6 Based in San Francisco, Alter Eco is an intrepid band of activists wielding the food business as a weapon against poverty and inequality: their offering of chocolate, rice, quinoa and sugar is certified Fair Trade, Organic and on its way to full sustainability. By establishing long-term relationships with farmer-owned co-ops to meet and exceed Fair Trade standards, Alter Eco is able to positively impact lives with every sale. SOCIALLY JUST We are committed to maintaining a mutually beneficial relationship with our producers by establishing direct relationships with democratically run co-operatives and producer groups that are owned and run by farmers. We invest in the communities we partner with, by providing a fair trade premium to finance local projects, and we ensure farmers earn a fair living wage. Products are processed as close as possible to the point of origin, which creates additional income and jobs in vulnerable communities. We visit our partners regularly to find out how we can address their ongoing needs, advise them and ensure they continuously improve. ENVIRONMENTALLY RESPONSIBLE We are committed to taking care of our planet and its people. We continuously work to minimize our carbon emissions and offset more carbon than we directly emit. We work with organic producers and help new producers transition to organic to minimize the use of chemical pesticides and fertilizers. All of our products are non-gmo verified. We support our co-operatives in training their members on sustainable production, including agroforestry, rotating crops and livestock, and letting their land fallow. RELIABLY DELICIOUS We have direct relationships with small producers, who farm with great care using traditional methods and local heirloom varieties, in order to guarantee the best quality and taste while preserving biodiversity. We are directly involved with every component of our supply chain, so you know where your food comes from. Our products are whole, healthy, and minimally processed to preserve the natural nutrition of each ingredient.