The Good Stuff

Report

Perry’s Sustainability Journey

2014

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“Make sure to put in enough of the good stuff.”

-H. Morton Perry, Founder (1888-1975)

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Table of Contents

CEO Message……………………………………………………………………………….4

Sustainability Philosophy & Vision…………………………………...……………6

Sustainability Leadership……………………………………………………………….7

Sustainability Stages………………………………………………………………………9

Engagement in Sustainability………………………………………………………..10

Four Key Challenges……………………………………………………………………12

Organizational Culture………………………………………………………….13

Solid Waste Reduction………………………………………………………….23

Natural Resource Management………………………………………………27

Maximizing Performance…………..…………………………………………..31

2014 Sustainability Awards…………………..……………………………………...37

Closing Thought…………………………………………………………………………38

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2014 was a remarkable year in many ways. Our entire

industry was affected by record high milk and cream

prices, negatively impacting our business results. In

spite of the rise in these commodity prices, our team-

based organization found ways to combat this

challenge.

Our operations team rallied and focused their efforts

by reducing manufacturing dairy waste 20% compared

to the prior year. These actions helped offset a portion

of the high cost we faced.

CEO Message

Robert Denning, President & CEO

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Additionally, we implemented initiatives to reduce our dairy

waste to landfill, resulting not only in dollar savings, but

making a positive impact on the environment.

We also invested in technology in our Distribution Center,

beginning with voice directed picking software (Vocollect).

This investment was a huge success as we were able to:

Achieve a higher level of customer satisfaction

Improve the morale and safety of our team members

Lower operating costs through a reduction in overtime

Record high butter cost in

September 2014 $3.06/pound

20% less dairy waste

“...the leadership team & I are very proud of our team members’

responses to the challenges we faced with a continuous improvement

mindset.”

In the second half of the year, we took a fresh look at our distribution and sales operating model by

conducting an in-depth study of our sales structure and distribution practices. We took this opportunity

to streamline our structure while investing in the technology and tools to further our world class

performance. We also selected a distribution routing software vendor with the promise of optimizing our

distribution and sales delivery routes to remove excess miles, lower fuel costs, and improve safety. In

addition, we began plans to implement “wave two” of our sales order technology to our DSD (Direct

Store Delivery) drivers; wave one consisted of implementation to our sales reps in 2013. This will result

in a savings of time, money and paper, which aligns well with the routing software we have selected on

the road to a world class distribution system.

As I look back at 2014, the leadership team & I are very proud of our team members’ responses to the

challenges we faced with a continuous improvement mindset. We are now much better positioned with

sustainable, long-term solutions and enhanced world class business practices. Clearly we are expecting

great things in 2015 and beyond!

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Sustainability Philosophy

As emerging entrepreneurs of sustainability, we envision a day when…

At Perry’s Ice Cream, we are implementing this vision of the future by

challenging the way we think and encouraging all fellow team members to

engage in sustainable thinking and actions.

Our financial position provides capital for today and growth opportunities for tomorrow.

A dynamic, innovative, “Why Not?” approach is the norm.

We achieve zero net waste through responsible management of our product’s life cycle.

We manage our environmental impact through responsible use of natural resources and seek renewable energy solutions.

We give back to our communities in proportion to the size of our footprint.

Our suppliers share a common commitment to sustainability.

Perry’s Ice Cream is committed to actively manage our impact on communities and the

environment through responsible business practices.

PEOPLE

We will serve our communities by

supporting programs that sweeten the quality of life.

PERFORMANCE

We will continue to improve our business practices in order to

“put enough of the good stuff” in our company to sustain profitable

growth and career opportunities for our team members into the future.

Sustainability Vision

PLANET

We will manage our business and resources in a

sustainable way that will help contribute to a cleaner

environment.

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Current

State Future

State

Perry’s Sustainability Team (PST) bridges individual team members and the leadership team.

Our role is two pronged:

1. To engage and empower departments in sustainable thinking and actions

2. To provide direction navigating corporate progress through the 4 stages of sustainability

We recognize that the expert knowledge and skills within each team is what brings ideas to life and

advances us along our path to corporate sustainability. Equally important is the backing of our Perry’s Leadership Team (PLT) to ensure alignment of goals and resources necessary for reaching

our future state.

Sustainability Leadership

PST

PLT

Individual Engagement of Team Members

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Sustainability Leadership

Perry’s Ice Cream is a Founding Member of the WNY Sustainable Business Roundtable, launched on Earth Day 2014. The roundtable is a network of companies and organizations seeking to create an environmentally and economically thriving Buffalo Niagara Region for current and future generations. Their objective is to foster collaborations that enable member businesses to develop and act on their sustainability goals, increase profitability and promote a healthy community.

PST MEMBERS Gayle Denning, Mike Lovelace, Lynn Staples, Dave Perry, Jodi Wiechec,

Dave Hodgson, and Jim Kolb Not Pictured: Rose Gramza

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There are 4 widely accepted stages of sustainability. Perry’s has chosen these as mile markers to track our journey on the way to our sustainable future. Our goal is to have all departments

engaged in early Stage 3 sustainable operating procedures by the end of 2015.

Do old things in new ways

All about the value of eco-efficiencies, regulatory compliance.

Do new things in new ways

Look at products, processes & whole systems to optimize natural resources, efficiencies and minimize

waste.

Transform core business

Sustainability innovation becomes the source of new revenues and growth.

New business model creation

A source of competitive advantage. Redefines strategy related to brand, engagement, and business

intangibles.

Stage 1

Stage 2

Stage 3

Stage 4

2013- 2015

Sustainability Stages

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Shared Learning

The PST implemented a shared learning program to educate and

empower departments in their sustainability efforts. This two

meeting program consists of:

1. Giving the department the tools to look at their processes with

sustainability in mind and determine where improvements can

be made

2. Departments sharing their findings and discussing ideas with the

PST

This process encourages the departments to implement their new

ideas and integrate sustainable thinking into future planning.

Onboarding New Perry's team members are educated during orientation on our

sustainable philosophy and vision, and how they can participate in

sustainable thinking and actions within their roles.

“It was extremely important for me to find an employer whose values fit my own. Having a sustainability piece in the onboarding process showed that Perry’s not only cares about the well being of the company, but the earth and our future as well.”

-Madison Musilli, Marketing

Research & Development and Quality Assurance

Human Resources

Finance

Customer Service

Sales

Information Technology

Material Supply

7 Teams embarked on their journey

37 Team Members

began their journey with Perry’s

Engagement in Sustainability

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Continuous Communication and Education

The journey to sustainability requires building and maintaining awareness of related terms, issues

and innovations. In order to affect change, a large portion of PST’s role is continuous

communication and education.

Sustainability 101 Educational Series distributed monthly

to new team members

Excerpts from 2013 Corporate Sustainability Report

included in company newsletter

Sustainability Center on company intranet

Sustainability message incorporated in annual sales and

operations team meetings

Email distribution of articles to targeted audiences

Sponsored Lean Workplace Training

First Lean Training class held October 15th

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Four Key Challenges

Our journey to a more sustainable future is focused around 4 key sustainable challenges

which were identified by their potential impact across all three aspects of sustainability:

People, Planet, Performance. By proactively managing our waste, acting responsibly with

our natural resources and engaging our team members in sustainable thinking and

actions, we will continue to sustainably perform.

1. Organizational Culture Long Term Goal: To be recognized as an employer of choice

2. Solid Waste Reduction Long Term Goal: To become a certified “zero landfill” operation

3. Natural Resource Management Long Term Goal: To maximize the value of our resources through improved

efficiencies, productivity and utilization

of technology

4. Maximizing Performance Long Term Goal: Manage growth to maintain adequate profitability for

strategic reinvestment

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1. Organizational Culture

At Perry’s, people are our most valuable resource. We are committed to developing a

culture of innovation and creativity with a “Why Not?” mindset.

Communication

To reinforce Perry’s as an employer of choice, we made the

following improvements in our communications:

Re-established our Communication Committee to guide

corporate communications that deepen team member

engagement

Introduced a “what’s happening” monthly flyer

Established a shared corporate Outlook calendar

Conducted a survey to identify improvements in our

monthly newsletter that we will be implementing in 2015

Measuring our Turnover

We are pleased to see the reduction in our turnover rate compared to

2013; however, this rate exceeds the industry benchmark. This indicates

an improved job market and is a reminder of why we must continue our journey towards becoming an

employer of choice.

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“Troy takes care of the third shift palletizers, with very little direction, and I have total confidence that he will make good decisions!”

-Stan Leach, Manufacturing

“Ian goes above and beyond what’s normally called for to deliver outstanding service to his customers!”

-Dawn Manchester, Customer Service

“I just wanted to thank Mike for always going the extra mile and helping out the production team with changeover, etc. He is always available to help whether being asked to or not. Great job Mike.”

- Delcina Young-Smith, Manufacturing

Keith Esola (Frozen Warehouse)

Robin Waite (Quality/Research & Development Eilish Mitchell (Quality), and Gary Schaffer (HR)

Core Values The guiding principles that will lead us toward our sustainable future are embedded in these core values.

Believe

in each other, our

team member

successes and our

brands

Foresee

the difference we can

make with consumers,

customers, community,

and the environment,

through our insight,

dedication and

commitment to quality 371 Recognitions

Achieve

our goals through our

commitment to safety,

continuous

improvement and doing

the right thing

Peer to Peer Recognition

When a team member demonstrates one of the core values, their peers are encouraged to award them with

a personalized recognition card.

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Community Returns presenting the 2nd quarter check to the

C. Dee Wright Center

Matt Bartz (IT) shows his support during the Donut Sale

Marvin Harrison (Maintenance) and Jodi Wiechec (HR) check out the

Easter Egg Raffle

1st quarter:

Junior Achievement of

Western New York

$518

2nd quarter:

C. Dee Wright Community

Center

$1,303

3rd quarter:

The Teacher’s Desk

$1,297

4th quarter:

SPCA Serving Erie County

$1,189

Community Returns

Perry’s Community Returns program annually supports four charitable organizations that are suggested by

team members. Fundraising for each of these charities is accomplished through jeans day donations and a

variety of fun events. Team members eagerly participate in our annual Super Bowl chili cook-off,

Thanksgiving pie auction and Christmas cookie exchange.

$0

$1,000

$2,000

$3,000

$4,000

$5,000

2012 2013 2014

Annual Team Member Donations

2012 2013 2014

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As part of the United Way’s Day of Caring, our team of 16 volunteers spent the day at the Lt. Matt Urban Human

Services Center gardening, trimming, painting and cleaning!

$111,460 in charitable donations

Team members volunteered to hand out slush pops donated by Perry’s at Akron’s 4th of July Parade.

52 team members contributed to the Annual

United Way Campaign

$9,986 raised including Perry’s

25% match

Scoops of Goodwill

Perry’s has a long history of support and involvement in our communities. This long-term commitment

of leaving good footprints is rooted in our values. Perry’s and our team members support a variety of

organizations through donations and volunteer work.

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Sue O’Connor (pictured), Matt Gibbons, Jodi Wiechec, Steve Helms, and Lynn Staples taught lessons to various grades to foster work-readiness, entrepreneurship and

financial literacy skills.

36 Bowlers

$3,060 raised Up 45% from 2013!

“Perry’s Ice Cream partners with JA because we believe in investing in our leaders’ futures and in future leaders. Over our fifteen year involvement, our team members have grown to be more passionate about their local communities and look forward to volunteering in the classroom each year.”

- Steve Helms, Finance

5 volunteers

41 hours invested

Perry’s participated in the annual Junior Achievement Bowl-A-Thon.

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Safety

As a company, we expect our team members to put safety at the forefront. We understand that an unsafe work

environment is wasteful; therefore, we will continuously foster a culture of safety. We will be proactive by

inviting and providing solid communication which encourages our team members to make the right choices.

Safety Philosophy

At Perry’s Ice Cream, we recognize a high performance safety culture relies upon our leadership’s

demonstrated commitment. Perry’s Leadership Team actively supports this commitment. We believe

with everyone being held accountable to exercise safe behavior, accidents can be prevented and team

members will remain safe and healthy. Perry’s Ice Cream can achieve ZERO accidents!

3,343,850

total safe miles traveled

Decreased

incidents due to enhanced safety

communication

Out of Service This occurs to a truck or driver when the Department of Transportation issues a

violation that poses an imminent hazard. Once the hazard has been corrected, the

truck and/or driver are put back into service.

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Near Miss Card

By updating the Near Miss Card, we were able to drive engagement.

Now Near Miss reporting requires face-to-face communication and

active participation in corrective actions.

“The near miss process has changed from: ‘What can you do for me?’ to: ‘What can we do together?’”

- Marc Farrell, Manufacturing

Safety contributes to sustainability by…

People

Having a safe work environment prevents injury and time off of work, which allows our team

members to maintain a higher quality of life.

Performance

Productivity is increased when our valued team members are able to properly perform their jobs.

By providing expertise in their roles, team members contribute to our world class performance

levels and drive our success.

Enhanced Safety Engagement

Safety is a standing topic in company communications,

including team meetings, trainings and the company

newsletter

Visual reminders throughout plant show safety status

Safety-focused People Powered Workshops were held to drive

down root causes of incidents

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People Powered Workshop Training

Perry’s exclusive People Powered Workshop (PPW) process drives continuous improvement efforts while creating an environment for the “learning by doing”

approach of Lean Six Sigma tools and Concepts.

Dale Carnegie Training

This 12-session series is designed to improve the

leadership skills of current and emerging leaders.

546 hours invested

Skills mastered: Interpersonal relationship-

building Persuasive communication Decision-making skill

development

Eva Balazs, Terry Lynch, Stanley Leach, Scott Warren, Dave Foley, Richard Groff, Matthew Bartz, Joseph Capan, Rusty Murray,

Ronald Hass, Timothy Young, Joshua Siemens and Jason Marotta

"I did not know I had so much potential locked up inside me. The Dale Carnegie course was life changing for me."

- Rusty Murray, Transportation

"Engaging your knowledge capital is a powerful investment for today and the future."

– Marc Farrell, Manufacturing

Training Training and development are important to ensure our team members are equipped with the skills

necessary to perform at world class levels in their areas of expertise.

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Driver Training For Fuel Economy

In our continuing efforts to provide education, each driver was required to watch a 15 minute video from Detroit Diesel that

reinforced the driving techniques required to effectively achieve our targeted average miles per gallon.

20 drivers trained

Data from computer reporting

system indicated where drivers need to improve most:

Cruise control Top Gear % Idle Time % Hard Brakes

815 hours invested

Skills mastered:

Identifying Workplace

Waste

Value Stream Mapping

Organization & Visual

Management

Standardized Work &

Quality

Implementing Change

Monitoring & Sustaining

Improvement

“Lean training has taught me that it is ok to fail, but fail as early in the process as possible. This will make the successes stronger and keep the process from bogging down.”

-Marcus Lovelace, Research & Development

Marcus Lovelace, Rich Groff, Duane Graff, Teresa Kloch,

Gary Schaffer, Scott Warren, Steve Helms, John Rogers,

Nichole Buryta, Sue O’Connor, Marco Falsone,

Lynn Staples, Gayle Denning, and Jodi Wiechec

Lean Workplace

Insyte Consulting led training in the tools of Lean. This program was custom-designed to empower participants to lead sustainable process improvement projects using proven quality & waste-reduction tools.

"The training we receive to properly operate these new engines is necessary to help drivers operate the trucks in a fuel saving manner.”

- Tommy Lederhouse, Transportation

Six Sigma Yellow

Belt Certified

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Training contributes to sustainability by…

People

Continuous training and education ensures our team members develop the necessary skills and knowledge to perform their jobs. Investing in our team members builds confidence, improves

work processes and increases engagement; therefore promoting an enhanced quality of life and greater work satisfaction.

Planet

Driver training increased fuel efficiency and reduced greenhouse gasses. Operations training drove improvements that reduced waste to landfill.

Performance

Sharing knowledge post education is a best practice at Perry’s. People Powered Workshops have improved: floor waste, downtime, changeovers, cost per unit, first pass quality and run rates,

resulting in increased time for value added tasks.

Safety Training

Quarterly team meetings are held to review a summary of

activities including safety

Resources are distributed to team members on safe

practices, such as: tool box talks, JJ Keller safety bulletins,

and instruction from the Department Of Transportation

Annual driver safety meetings

Guest speakers are invited to present safety topics, such

as: driving, hard braking, backing, road rage, bending

and lifting, and slips, trips & falls

15 Safety Trainings Held

1,534 Hours Invested

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Eliminated waste

to landfill by using as

fertilizer and fuel

Reuse & reduction practices decreased the

amount recycled

Converted organic

byproducts into animal feed &

fertilizer at local farms

2. Solid Waste Reduction At Perry’s, managing our various waste streams encompasses the entire

organization. We strive to reduce materials entering our facility, repurpose

byproducts and dairy waste, and recycle in order to reduce our impact on landfills.

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Dairy Waste to Baskin Farms

We dispose our liquid and frozen dairy waste at Baskin Farms in Batavia. Baskin Farms recycles items from food manufacturing and

processes them into quality bakery meal. It is then sold to farmers and feed mills, preventing the waste from entering a landfill. Baskin can

also remove packaging from frozen waste to fuel their drying operation.

Improved Waste Water Treatment Process We changed part of our dairy waste removal process by hauling our

waste water concentrate of fats, oils and greases to a local farm for fuel. This change had additional benefits over the old procedure of drying

and sending to the landfill, by reducing our chemical usage and operating cost in our waste water treatment process.

Recycle & Reuse

213,000 gallons avoided landfill

Environmentally responsible

53% less

waste hauling expense

“The farm’s digesters create methane from the combination of animal and food waste which then fuels a large methane converted diesel engine and generator. The result is a source of electricity that is used to supply the farm with any excess being sold “on the grid” to different power companies.”

-Brian Perry, Executive Vice President & Chairman

1,000 tons

avoided landfill

$186,000 less in chemical

& hauling costs

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E-Waste

Any obsolete electronic devices are taken to one of several local disposal sites accepting e-waste for recycling. After metals are removed for reuse, the remaining material is

shredded and recycled if possible.

Obsolete Freezer Cabinets Recycled

When freezers are retired, Perry's recycles them as scrap metal after the refrigerant is removed for reuse.

750 lbs of

e-waste recycled

20 - 50 million

metric tons of e-waste are disposed

worldwide every year

70 freezers recycled

8 tons avoided landfill

“Although it doesn’t seem like much at the time of retiring/recycling freezers one at a time, it’s good to know it adds up to 8 tons being kept out of landfills in a year.”

-Dawn Manchester, Customer Service

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“Less is sometimes more.” -Mike Lovelace, Manufacturing

EBay

The maintenance department uses EBay as a source for purchasing

spare parts and selling excess maintenance inventory. 20% savings on purchases

Recycling & Reuse contributes to sustainability by…

People

Less waste streamlines processes and reduces team member’s risk exposure from handling chemicals.

Planet

Producing less waste reduces landfill volumes, hauling and greenhouse gas emissions, and chemical use. Repurposing waste provides animal feed, fertilizer and energy sources for others.

Performance

Reduced shipping costs and byproduct compensation allocates capital to other projects.

343,728 lbs of polyethelene

Downsizing Poly liner on 48oz.

The ice cream market is moving to less polyethylene. Our 48oz.

package had 3/4 mil and 1 mil sidewalls. We were able to use less

material by reducing our poly liner to 1/2 mil and 3/4 mil while

retaining the same production and product quality.

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Lowest water usage since

2010

40% of electricity

from renewable source

Increased production

volume reduced natural gas

usage

3. Natural Resource Management

Like many organizations, being efficient with our energy sources is a priority.

We strive to produce and deliver more products with less natural resources.

Lowest electric usage since

2010

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5.55 mpg

Equipment Performance

This minimal decrease in miles per gallon is due to unexpected

declining engine performance. Our transportation team is collaborating

with the vendor on a solution.

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DSD Reefer Fuel Reduction

In late 2013, we purchased eighteen new trailers and straight trucks with smart reefer capabilities.

These features allowed us to drive down fuel usage in 2014 through these advancements.

New Truck Characteristics Increased cooling capacity Multi-temperature options with portable bulkheads to

separate temperature zones Decreased fuel usage Lower reefer engine run time Increased dependability Product integrity improvements Smart reefer technology

“The new trucks are really cold and hold temperature better than any truck

I've ever worked with." -Chas Staebell, DSD Route Sales

40% less reefer fuel used to cool the refrigerated body of

the truck

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4,100 gallons of fuel saved

Fuel contributes to sustainability by…

People

Reducing miles has the added benefit of time savings for team members.

Planet Reducing miles leads to less fuel usage and emissions in the air.

Performance Using less fuel decreases overall operating expense.

Conference Calls

Instead of traveling off-site for interviews, conference calls were utilized.

2,964 miles saved

“Not traveling for every interview has given me the time

to work on other projects." -Joshua Siemens, Human Resources

Out of Route Miles

Eliminated unnecessary miles driven by our transportation team.

“I think it’s positive that our drivers were able to reduce their out of route

miles by 24% and that they know the impact that it makes to our bottom

line and environment. Hopefully we can continue this trend into 2015." -Rusty Murray, Transportation

24% less out of route miles

than 2013

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4. Maximizing Performance

At Perry’s, we strive to maximize value through continuous improvements to our

processes that eliminate waste and increase operational efficiencies. We welcome

new technologies that assist us in continuing our world class journey.

Overall Equipment

Effectiveness (OEE)

OEE is our core manufacturing performance

measurement system. Three components:

uptime, run rate, and 1st pass quality,

determine an OEE score. Our goal is to achieve

a world class level of 85%.

Increased OEE from

2013 through

manufacturing improvements

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Manufacturing Improvements Our manufacturing team is always looking for continuous improvement opportunities to decrease

waste, increase OEE performance, and improve the work environment. 2014 was no exception to this as many projects were identified and completed to achieve these goals.

Gained 10 days of annual production

capacity

Ingredient Consolidation Whenever possible, we consolidate ingredients and vendors to

reduce expenses and improve order efficiencies.

“By taking responsibility for consolidating ingredients, we can drive change for Perry's Ice Cream to make it more financially and environmentally sustainable. Less is truly more.”

-Teresa Kloch, Research & Development

Production Line Optimization We have maximized efficiencies on the production line by

coordinating full-run orders with one of our growing customers.

“This is a great example of the benefits of a strong customer/supplier relationship.”

-Tracy LaCrego, Purchasing

“The company as a whole is more successful when multiple

teams work together.” -Marsha Koerner, Operations

Ingredient Optimization When developing new flavors, allergen contents were considered to ensure consumer safety and accurate labeling while maintaining production scheduling

efficiencies. Considering allergens in product development allows manufacturing to produce full-runs

and increase OEE results.

22 ingredient &

2 vendor consolidations

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Reduced Outside Warehouse Storage

We assembled a team to reduce the amount of finished goods

inventory carried at off-site locations. As a result, we now carry

inventory at one off-site location versus four, reducing additional

storage, handling, and transportation costs.

$225,000 less outside

storage costs

Manufacturing Improvements contribute to sustainability by…

People

Job satisfaction is increased by the use of better tools, more effective scheduling and decreasing the amount of unproductive time spent on certain tasks.

Planet Chemical and water usage in the cleanup process decreased through scheduling improvements.

Diesel fuel and greenhouse gases decreased by reducing our off-site storage locations and receiving larger shipments from fewer suppliers. Reduced dairy waste to landfill as manufacturing results

improved.

Performance Improved production capacity through scheduling and ingredient optimizations. Less demand in

the transportation department to transfer to off-site storage locations. Increased efficiencies in ordering, warehousing and production with fewer suppliers.

One off-site location

reduced from four

“Now it is much easier to coordinate with our Transportation

team to shuttle products to one off-site storage location.” -Duane Graff, Distribution Warehouse

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Process Improvements There are many processes at Perry’s that support the manufacturing and delivery of ice cream.

Continually challenging the efficiencies of our procedures with the goal of eliminating wasted time and materials is key to achieving world class.

65% Accuracy

Improvements

“You know it’s working when a driver comes in and says,

‘What’s going on? We haven’t had a mistake in three weeks!’”

– Bill McIntosh, Distribution Warehouse

Before Voice After Voice

Total Errors 570 2

Units per hour 132 183

Total Hours Spent

Picking 637.9 340.72

New Team Member

Training Time (Days) 90 3

Vocollect

This new electronic pick-to-voice system for the frozen warehouse has improved order picking accuracy and productivity while reducing

training time. Implemented in late 2013, Vocollect has realized the test-study results on a full scale implementation in 2014. This new

technology has also improved customer and team member satisfaction.

35% Productivity

Improvements

30% reduction in seasonal turnover

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Streamlined Accounts Payable

Non-value added steps have been eliminated in Accounts Payable.

File unpaid and paid supplier invoices together

Eliminate stapling a portion of the check to the paid invoice

Use electronic images of receipts to match supplier invoices

260 hours per year saved in Accounts Payable

"In 2014 we took the first steps in re-evaluating the accounts payable function.

We benchmarked the number of steps from supplier invoice receipt to the storage

of a paid invoice, we reduced the number of steps in 2014, and we have plans

in 2015 to make further improvements."

-Lauri Targus, Finance

Eliminate Green Bar Sheets

Bill of Materials for the mix room and production were being printed on

green-bar paper, which is costly and requires a specialized printer. We

transitioned these to standard sized 8 1/2x11 paper, saving time and money.

Expense Reporting Improvements

Revised guidelines for expense reimbursements were published,

improving accountability. These reimbursements are now processed

through payroll instead of issuing a separate check. Calculation and

coding errors were eliminated by adding internal audits.

"We have been impressed by our team members' overwhelmingly positive response

toward our newly established expense guidelines."

-Bob Denning, President & CEO

1,250 printed checks

eliminated

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Process Improvements contribute to sustainability by…

People

Continually improving processes has increased team members’ job satisfaction while gaining

time to focus on value added functions.

Planet All of these new processes have been instrumental in reducing paper use in all areas of the

organization.

Performance These new process improvements have brought us closer to becoming a world class organization

with things like more professional invoices and reducing our response time to customer requests.

We are now able to collect and analyze information with improved efficiency.

14,700 invoices not printed

2,622 hours saved per year

Redesign Customer Invoices

Transportation, Finance and Information Technology designed a more

professional looking customer invoice and streamlined the invoicing process.

This new way to enter data saves time, increases reporting capabilities and

eliminates duplicate printing.

“This was a collaborative effort with Transportation, Finance and IT. It has saved

us approximately 45 minutes a day, not to mention the annual cost of our pre-

printed invoices. We were able to get some feedback from a couple of our core

customers about what they wanted on their invoices and we were able to

accommodate their requests which made them extremely happy!" -Dave Mietz, Transportation

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2014 Sustainability Awards

Change Agent Award Recognizing an individual who takes the initiative to foster

behavior change in the work environment.

Mike Lovelace For Ebay, downsizing poly liner & Vocollect

Innovative Award Recognizing a sustainability project that required

“thinking outside of the carton.”

Tracy LaCrego, Ron Brady, Scott Warren, and Brian Perry for Ingredient Optimization

Greatest Impact Award Recognizing a sustainability project with the strongest influence on

people, planet and/or performance.

David Hodgson, Mike Maziarczyk, William McIntosh, Mike Lovelace, Joseph Jewett IV, Matthew Bartz, and Mike Szelagiewicz

for Vocollect

Collaboration Award Recognizing a group of team members who worked together in

non-traditional ways on a sustainability project.

Robin Alexander, Scott Bouter, Eric Bruno, Steven Ciotti, Ronald Crosby, Mark Ehlers, Michael Herlan, Paul Horton, David

Jonathan, William Jordan, Waldemar Krawiecki, Thomas Land, Thomas Lederhouse, Richard Ruppel, James Snyder, James

Spencer, Edward Strassel, Daniel Szymanski, Scott Taif, Richard Warner Jr. and Laverne Wickham

for Out of Route Miles

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Over this short period of time we have learned a lot about sustainability and how it impacts Perry’s.

Continued success on our journey requires more than the traditional 3 P’s of sustainability; it also requires

“the good stuff” that is unique to Perry’s.

An integrated sustainability culture at Perry’s requires consideration of people, planet and performance, plus

the Perry’s brand and product manufacturing expertise. The Perry’s brand is the flagship of our business and

has a positive, invaluable reputation with our customers and community. Through the Perry’s brand, people

experience our “good stuff”. Additionally, our dedication to quality products has been the cornerstone of

Perry’s since 1918. Whether we are churning out our family recipe or someone else’s, we believe we make

the best ice cream products in the world. Our expertise, knowledge and customization skills are sought after

in the industry. We realize that process improvements are imperative to remaining on the cutting edge.

Continuously challenging ourselves to find better ways, embracing technology or bringing innovation to our

customers is essential for the long term sustainability of Perry’s Ice Cream.

From cow to cone, a lot of “good stuff” has to happen at Perry’s to serve people great ice cream. “The

good stuff” is what has and will sustain Perry’s Ice Cream.

Part of “the good stuff” has always been resourcefulness

and the importance of people. Our sustainability

commitment supports those beliefs and has expanded our

perspective on stewardship of the environment and long

term viability of humanity. Since the inception of our

formal sustainability program in 2010, we have:

established a corporate vision & philosophy for

sustainability

educated our team members on the basics and

terminology of sustainability

engaged team members in activities, projects and

training that support sustainable thinking

suffered some setbacks and celebrated some early wins

Gayle Denning,

Director of Sustainability

Closing Thought

39

Morton’s words are simple and apply as easily to all of us today as they did nearly a century ago…”Make

sure you put in enough of the good stuff.” The road forward is exciting and we have great plans for our

future. In addition to people, planet and performance, we will continue striving for sustainability through

the Perry’s brand and our product expertise. This is “the good stuff” that will sustain Perry’s for

generations to come.

Producing a sustainability report is a rather arduous task that requires countless hours of data collection, collation and reporting effort by several of our team members. We hope that our collective efforts result in a meaningful discussion of not only our sustainability performance, but ways in which others can benchmark their own performance. We encourage you to provide us with your views on the quality and usefulness of this report. Should you have any questions or comments about

anything contained within this report, please contact Gayle Denning at gayle.denning@perrysicecream.com. Questions regarding related company policies can be directed to Jodi Wiechec at jodi.wiechec@perrysicecream.com.

Perry’s Ice Cream Company, Inc,

1 Ice Cream Plaza Akron, NY 14001

www.perrysicecream.com