11

Unified Western Grocers, Unified Western Grocers, IncInc..

October 10, 2006October 10, 2006

22

About About Unified Unified Wholesale grocery distributor to Wholesale grocery distributor to

Independent Grocers…..Independent Grocers…..

…..Largest in Western United

States

33

About About Unified Unified

MissionMission– Help the Independent Grocer succeed and Help the Independent Grocer succeed and

compete with the self-distributing chainscompete with the self-distributing chains– Build a sustaining entityBuild a sustaining entity

Functions as a “virtual” chainFunctions as a “virtual” chain– Services and benefits available to Services and benefits available to

independents that are used by national independents that are used by national chainschains

– Significant market share in areas servedSignificant market share in areas served

44

AboutAbout Unified Unified

Founded in 1925 by eight merchants Founded in 1925 by eight merchants who collaborated to buy a carload of who collaborated to buy a carload of soap – using buying powersoap – using buying power

TodayToday– Buying PowerBuying Power– Warehousing & DistributionWarehousing & Distribution– TechnologyTechnology– ServicesServices

55

A A CooperativeCooperative

Owned by our customers (Members)Owned by our customers (Members)

Equity capital comes primarily from Equity capital comes primarily from our Membersour Members

Earnings paid out in patronage Earnings paid out in patronage dividendsdividends– Primary mission is competitive source of Primary mission is competitive source of

supply, not ROIsupply, not ROI

66

Our “Members”Our “Members”

Diverse Diverse – Single store operators to 50-store Single store operators to 50-store

operatorsoperators– Various formatsVarious formats

UpscaleUpscale Retailers serving ethnic communitiesRetailers serving ethnic communities ConventionalConventional

– GeographicGeographic

No restrictions on MembershipNo restrictions on Membership– No territorial boundariesNo territorial boundaries

Some Members compete with each otherSome Members compete with each other– Local identities maintainedLocal identities maintained

77

BrandingBranding

Branding – available, but not Branding – available, but not requiredrequired– Some Members form “ad groups”Some Members form “ad groups”

Common bannerCommon banner Loose collaboration to share in Loose collaboration to share in

advertisingadvertising

– Private label products Private label products Western FamilyWestern Family SpringfieldSpringfield

88

Products & Products & ServicesServices

ProductsProducts– Access to 60,000 + productsAccess to 60,000 + products– Local and centralized buyingLocal and centralized buying– 4 million square feet of warehouse space4 million square feet of warehouse space– Private labelPrivate label

TechnologyTechnology– Product orderingProduct ordering– Scanners Scanners – Payment systems (credit and debit cards)Payment systems (credit and debit cards)

99

Products & Products & ServicesServices

ServicesServices– AdvertisingAdvertising– Merchandising supportMerchandising support– Real EstateReal Estate– DairyDairy– InsuranceInsurance– Lending (we are a CDFI)Lending (we are a CDFI)

1010

SuccessSuccess

Unified’s success and future is Unified’s success and future is integrally tied to the success of integrally tied to the success of the retailers that own us.the retailers that own us.

1111

End of PresentationEnd of Presentation