Foodservice Distribution. Some firms choose to keep their PERFORMANCE FOOD GROUP NON-DURABLE

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1 PERFORMANCE FOOD GROUP NON-DURABLE / 2012 sales: $12 billion+ / HQ: Richmond, Va. / Employees: 12,000+ / Specialty: Foodservice distribution / Jeff Williamson, SVP of operations: It s the execution in the field that really drives the results. PFG is dedicated to helping its customers become better operators. Foodservice Distribution PFG focuses on giving its customers what they truly need. BY ALAN DORICH Some firms choose to keep their customers at arms length, but not Performance Food Group (PFG). We feel like it s still important for our people to be able to [get to know] our customers, Fred Sanelli says. It s a relationship business. With a staff of more than 12,000, PFG is the parent company of several foodservice distributors, including Performance Foodservice (which includes Roma Food), Vistar and PFG Customized Distribution. PFG delivers food and relat- SPRING

2 PERFORMANCE FOOD GROUP PFG revamped its websites to give clients a better experience. ed products to more than 130,000 clients across the United States. Senior Vice President of Operations Jeff Williamson credits PFG s success to its staff. It s the execution in the field that really drives the results, he says. When hiring, the company looks for people with experience and the right attitude for working at PFG. They have to be a certain type of individual, he says, explaining that they have to be able to cope with conditions such as erratic schedules. You don t know if you re going to end work at the same time every night. RUNNING THE GAMUT PFG s customer base runs the gamut, says Sanelli, the senior vice president of marketing, brands and sales development for Performance Foodservice. He notes that PFG serves independent ADDRESSING SUSTAINABILITY Performance Foodservice recently introduced its GreenBasis label, which consists of branded foodservice disposal products that meet a criteria for environmentally responsible manufacturing processes, product composition or product lifecycle options. Under the label are its Silver Source and First Mark-branded disposable products, which include cups, napkins and cutlery. Customers are looking for product offerings that support their sustainability efforts, particularly in the disposables category, comments Fred Sanelli, senior vice president of marketing, brands and sales development. Our portfolio of GreenBasis products will continue to grow as we work with our manufacturing partners to develop products that meet our sustainability criteria. According to PFG, the potential environmental impact would grow as the U.S. demand for foodservice disposables was projected to approach $18 billion in Demand is expected to be spurred by growth in the fast-casual dining category, which relies heavily on disposables, and demographic trends that point to more dining out, the company says. Our GreenBasis program addresses sustainability on a number of fronts, including the manufacturing process, product makeup and the extent to which a product avoids the waste stream, Sanelli says. This enables our customers using GreenBasis products to promote their sustainability efforts on several levels SPRING 2014

3 PERFORMANCE FOOD GROUP restaurant operators, hospitals, hotels, schools and some of the country s largest national chains or anywhere that broadline foodservice applies. PFG is pitted against many competitors in its industry, and it sets itself apart by taking the role of a customer s support group, Sanelli says. What we do is we focus on our people, our products and our innovations that are directly interfaced with the customer, and what [our clients need] locally, he says. For example, if PFG s clients need to add SKUs to its brand portfolio, the company is always willing to look at the opportunity, Sanelli says. We take that extremely seriously, he asserts. It is truly a science. The owner comes to us with his idea for what they want their cheese to be. However, PFG already has a broad line of items for its clients to choose from, including its Roma Italian ingredient products and its Braveheart Black Angus Beef. The beef, Sanelli notes, can be traced back to the farms and animals they came from, thanks to Braveheart s DNA TraceBack system. This not only adds another layer of assurance around what the product is and its source, but also improves the eating quality of every steak or burger, Sanelli adds. This gives consumers more knowledge of where their food originated. None of our competitors are doing that, Sanelli states. Another product is PFG s Bacio Cheese, which is a premium mozzarella, Sanelli says. Bacio translates into kiss in Italian and it s made with a kiss of buffalo milk, he describes. NEW TOOLS PFG s customers have become more knowledgeable about food and foodservice. That s a good thing for everybody, really, Sanelli asserts. As a result of them becoming more educated, they re needing a lot more information, he states. We need to give them tools to keep their establishments busy and to attract and retain customers and employees. As part of this initiative, Performance Foodservice recently revamped the order entry system for its customers and salespeople. This gives them information at their fingertips [related] to nutrition, ingredients and allergens, he says SPRING 2014

4 SETTING STANDARDS Jeff Williamson, senior vice president of operations for PFG, joined the company in January They were very young in their operations expertise, he says. [They had] the opportunity to build programs to drive productivity and efficiencies through the distribution network. Under his leadership, the company implemented labor standards in the warehouses to gauge the productivity of hourly associates. The firm also tied an incentive program to their metrics. This was also tied to customer service metrics. They don t earn their productivity bonus if they re not [hitting the] minimum service-level requirements, he says. The company also changed its websites to give them a better customer experience, Sanelli says. At the same time, a food writer s blog, was launched to talk about industry issues, including emerging flavors, menu PFG says it never has had a request from customers that it couldn t accomodate. trends and directions, food production, nutrition, and all things food. The company also has launched Menuetta, an integrated marketing, loyalty and social media platform that manages its customers menus, websites, 66 SPRING 2014

5 mobile sites and Facebook pages. It also follows the performance of its customers promotional campaigns. That will help [customers] see what the program is worth, he says. Menuetta also helps its clients update their menus, Sanelli says. If someone added a calzone or a chicken fricassee to the menu, they can update all their mobile stuff with one click, he says. It really allows the restaurant operator to become mobile. At the end of September, Performance Foodservice launched PERFORMANCEconnect, a mobile app for ios devices that features recipes; rebates; market trends; news and ideas, including building tips and product information; and videos on topics that range from new products to food shows. It also allows users to track their deliveries, Sanelli says. Timing matters in the foodservice business, so we re excited to provide our PFG has a broad line of items its clients can choose from, including Bacio cheese SPRING 2014

6 PFG manufactures up to 1,000 different cheese blends. customers with the ability to track their delivery status so they can prepare and plan accordingly, he says. Our PERFORMANCEconnect mobile app offers a single source for relevant and timely information that our customers need and require to stay competitive and successful. The app also allows customers to create lists of their favorite ideas, recipes and rebates when needed. PERFORMANCEconnect rounds out our digital communications toolbox, enabling us to stay totally engaged with our customers, Sanelli says. We re providing them with information and resources that will deliver value and help them improve their operations. ENDLESS VARIETIES PFG is proud of its cheese blending, shredding and dicing facility in Rice, Minn., which has been in operation since We blend, shred and dice up SPRING

7 PFG focuses on treating its staff fairly. to 2 million pounds a week from that facility, Sanelli says. We haven t ever had a request we couldn t accommodate. The facility serves both PFG s operating companies and customers who have their own special needs and specifications. It is truly a science, Sanelli says. The owner comes to us with his idea for what they want their cheese to be. During the process, PFG visits its customers locations to determine what they are using and like about their cheese products. From our experience, we create a blend that will meet and match their current product, he says. Our goal is to match what the customer is using; we do not want their guest to notice any changes. PFG then develops blends for its customers to sample, until the company finds the right match. This can take many months and many samples, Sanelli admits, adding that PFG manufactures up to 1,000 different cheese blends. Since we source cheese from so many different manufacturers, we have an advantage over our competitors, he says. We can offer our customer endless variety to meet their requirements. This includes organic and hormone-free cheese, which it sells to a broad range of customers, including schools, theme parks, diners and healthcare clients. We now can be a cheese solution provider for our customers, Sanelli says SPRING 2014

8 PFG is putting together its own group of drivers. STAYING FOCUSED Staffing can be an issue for PFG, Williamson says. Just getting good, qualified people who want to do those jobs [and retain them] becomes [challenging], he says, noting that PFG copes by continuing to focus on treating its staff fairly. Additionally, Driver shortages [are] becoming a challenge, he says. We are actively looking forward to putting some task forces together to figure out how we can put together our own [group of ] drivers. Sanelli adds that PFG will continue focusing on helping its customers be better operators. [That] is key to the success of [our] company, he says. The customer knows which direction they want to go. q OUTSIDE THE BOX Fred Sanelli, the senior vice president of marketing, brands and sales development for Performance Foodservice, has been part of PFG and his division for 11 years. During his time at PFG, he has appreciated the way the company treats its people. We have a pretty autonomous working environment, he says, adding that PFG gives its divisions the tools to succeed. I think that when you work at PFG or our companies, you re encouraged to think outside the box and always keeping the customer at the forefront. He cites how the company stocks its warehouses. Once they get the products in the warehouses, it is up to [the operating company] to price it correctly based on the market needs, he says. They re encouraged to be creative... in a certain framework. Of the company s team, he praises PFG President and CEO George Holm. [He is] truly a visionary in the industry, he says, noting that Holm s previous experience includes Sysco Corp. He understands the industry and the changes that need to be made. Another key person is Mac Pearce, the president and CEO of Performance Foodservice. His industry knowledge and knowledge of the customer is unprecedented, Sanelli says, noting that Pearce s family used to own PYA Monarch. He fosters an environment of growth, both personally and professionally. He has been a personal mentor to me. He lives in the industry and can give insights of being an owner in large organizations. SPRING