Mount Franklin Foods, LLC Company Overview February, 2014 1
About Mount Franklin Foods, LLC Azar Nut Company founded in 1907 Sunrise Confections founded in 2001 Parent company named Mount Franklin Foods, LLC in 2007 Currently employ over 2,500 people across El Paso & Juarez More than 1,000,000 square feet in total facility space 2
El Paso and Juarez Locations Headquarters in El Paso Distribution Center in El Paso Azar Nut Operation in El Paso Sunrise Candy Operations in Juarez All Plants SQF 2000 Level III Certified 3
Our Mission Manufacture and distribute confectionary and nut products with the best quality and service to exceed our customers expectations Our Vision Be a leading world class manufacturer and distributor of candy and nut products in The Americas Our Core Values People, Quality, Integrity, Passion 4
The Sunrise Advantage Lower cost of labor in Mexico Excellent quality of labor in Mexico Modern facilities and equipment Quality U.S. food ingredients used The Rio Grande River and U.S./Mexican Border are hidden just behind the buildings of downtown El Paso (a short drive from our U.S. headquarters) Minutes from El Paso Headquarters 5
Sunrise Product Categories Fruit Snacks Hard Candy Jels & Panned Gummies JuJus Mellow Crème Mints 6
Fruit Snacks Regular Innovative Hard Candy Peppermint Starlight Mints Spearmint Starlight Mints Cinnamon Starlight Mints Fruit Starlights Chocolate Starlights Fruit Disks Cinnamon Disks Butterscotch Disks Key Lime Disks Sanded Lemon Drops Root Beer Barrels Strawberry Bon Bons Peppermint Balls (hard) Deluxe Mix Assorted R/W/G Starlights R/W/G Fruit Disks Pinwheel Peppermint Starlights Pinwheel Fruit Starlights Jels & Panned Fruit Slices Orange Slices Cherry Slices Sour Slices Spearmint Leaves Spice Drops Holiday Bells Holiday Wreaths Cherry Sours Assorted Fruit Sours Giant Gels Jelly Beans Mini Jelly Beans Cinnamon Imperials Jelly Hearts Mellow Crème Candy Corn Indian Corn Pumpkins Autumn Mix Gummies & Jujus Gummi Bears Gummi Worms Sour Gummi Bears Sour Gummi Worms Sour Neon Bears Sour Neon Worms Small Gummi Worms Apple Gummi Rings Peach Gummi Rings Assorted Juju Fish Cinnamon Juju Bears Juju Hearts Mints Pastel Mints Chocolate Gourmet Mints 7
Sunrise Fruit Snacks Flavorful, high quality products! Excellent capabilities and capacity! Innovative items in development! Crunchy Fruit Snacks Liquid Filled Fruit Snacks All Natural Fruit Snacks Fruit & Vegetable Snacks Reduced Sugar Fruit Snacks 8
Bulk Gummies and Fruit Snacks -6/5# Bags Per Case Gummy Bears Item S8680700J Gummy Worms Item S8680710J Sour Neon Worms Item S8680720 Blue Sharks Item S8680622 Sour Gummy Bears Item S8680701J Small Gummy Worms Item S8680713J Peach Rings Item S8680620 Assorted Sharks Item S8680624 Sour Neon Bears Item S8680716 Sour Gummy Worms Item S8680714J Apple Rings Item S8680615B Fruit Snacks Item S8680920 9
Bulk Jells and Jujus -31# Per Case Orange Slices Item S8001500 Mini Orange Slices Item S8001501 Spice Drops Item S8001520 Cinnamon Juju Bears Item S8001400 Cherry Slices Item S8001503 Mini Fruit Slices Item S8001508 Spearmint Leaves Item S8001510 Assorted Juju Fish Item S8001415 Fruit Slices Item S8001505 Sour Fruit Slices Item S8001507 Giant Gels Item S8001530 10
Bulk Hard Candy -31# Per Case Peppermint Starlights Item S8001801 Peppermint Balls (Hard) Item S8001813 Butterscotch Disks Item S8001810 Lemon Drops (Unwrapped) Item S8001645 Spearmint Starlights Item S8001800 Fruit Starlights Item S8001808 Cinnamon Disks Item S8001820 Root Beer Barrels Item S8001817 Cinnamon Starlights Item S8001805 Pinwheel Fruit Starlights Item S8001816B Key Lime Disks Item S8001835 Strawberry Bon Bons Item S8001610 Pinwheel Peppermint Item S8001815B Chocolate Starlights Item S8001807 Assorted Fruit Disks Item S8001830 Deluxe Mix Assortment Item S8580600 (6/5# Bags Per Case) 11
Bulk Panned, Mints, & Candy Corn -31# Per Case Assorted Jelly Beans Item S8001200 Cherry Sours Item S8001240 Candy Corn Item S8001650 Tiny Jelly Beans Item S8001230 Assorted Fruit Sours Item S8001245 Assorted Pastel Dinner Mints Item S8001695 Sour Neon Jelly Beans/Eggs Item S8001206 Cinnamon Imperials Item S8001250 Pastel Dinner Mints Item S8001694 12
Bulk Halloween & Christmas -31# Per Case Candy Corn Item S8001650 Mellow crème Pumpkins Item S8001652 Holiday Bells Item S8001541 Juju Santa Item S8001440 Indian Corn Item S8001651 Autumn Mix Item S8001653 Holiday Wreaths Item S8001543 (28#) Holiday Sours Item S8001249 Orange & Black Jelly Beans Item S8001233 Orange & Black Spice Drops Item S8001533 Holiday Spice Drops Item S8001546 13
Bulk Valentines & Easter -31# Per Case Cherry Juju Hearts Item S8001460 Cinnamon Imperial Hearts Item S8001262 Assorted Jelly Beans/Eggs Item S8001200 Speckled Jelly Beans/Eggs Item S8001288 Cherry Jelly Hearts Item S8001560 Valentine Jelly Beans Item S8001207 Spiced Jelly Beans/Eggs Item S8001286 Sour Neon Jelly Beans/Eggs Item S8001206 Cinnamon Jelly Hearts Item S8001562 Cherry Jelly Beans/Eggs Item S8001290 Black Jelly Beans/Eggs Item S8001284 Tiny Jelly Beans/Eggs Item S8001230 14
Sunrise Retail Customers 15
Sunrise Private Label Customers And Many More 16
State-of-the-Art Candy Plant Built from the ground-up in 2001 Designed for efficiency & flexibility Top-of-the-line equipment (Klockner, Hayssen, Makat, NID, Tannis, etc.) Phase I: 105,000 square feet (mogul, panning, hard candy) Phase II: 115,000 square feet (contract manufacturing) 17
Manufacturing 18
Hard Candy Manufacturing One of four continuous cooking systems in the hard candy operation allowing for production of over 350,000 pounds of candy daily. The plant also has the ability to manufacture soft sugar mints. A Quality Assurance Manager observes a peppermint starlight rope as it is sized down. One of twenty pillow-pouch flow wrap machines for hard candy. The candy facility also features 26 twist wrap machines. 19
Starch-Mold Candy Manufacturing Starch molded candies are made using the Klockner Kitchen which produces gummi worms and bears, orange slices, and other jel candies. A Makat Mogul. We currently have a variety of equipment in operation including Makat, NID, and Tannis. A Quality Assurance Manager checks orange slices as they are deposited into starch mold boards. 20
Starch-Mold Candy Manufacturing (cont.) Once gummies and jels are deposited into starch molds, they are taken to a curing room. The product will cure in temperature controlled curing rooms until the desired texture is reached. Each curing room has the flexibility for both hot and cold curing. 21
Panned Candy Manufacturing Stainless steel grossing and polishing pans for producing Jelly Beans, Cherry Sours & Fruit Sours. Sunrise has 61 Pans; production capacity for each pan is 250 pounds per hour. Product is polished before packaging. Easter Jelly Beans await the polishing process. 22
Packaging Capabilities Yamato weighing systems feed peppermint starlight mints to Hayssen vertical form, fill, and seal machines. Hayssen bagging systems are fed from overhead conveyor systems. Promotional Starlight Mint bags are prepared for labeling. 23
What Azar Offers Quality Nut Processing Ingredient Nuts Snacking Nuts Baking Nuts Nut Toppings Snack Mixes Peanut Butter 200,000 Sq Ft Plant 24
Azar Product Categories Almonds Cashews Dried Fruit Hazelnuts Macadamia Nuts Peanuts Peanut Butter Pecans Pine Nuts Pistachios Salad Toppings Snack Mixes Walnuts 25
Azar Value-Added Products Item Development by Professional Chefs Upscale, Trend-Right, Value-Added Products Sweet & Savory Products Examples Include: Candied Pecans and Walnuts Chile Lime Cashews and Pepitas Honey Cinnamon Glazed Almonds Jalapeño Cashews Honey Chipotle Pecans 26
Nut Processing The can line utilizes Ishida scales; product is nitrogen flushed and packed in 9 to 16 ounce composite cans as well as in #5 and #10 cans. This continuous oil roaster processes 1500 pounds per hour. Azar has a total of six oil roasters. This dry roaster processes over 1200 pounds per hour. 27
Azar Food Service Customers And Many More 28
Contract Manufacturing Excellence Turnkey contract solutions High quality manufacturing Outstanding customer service Flexible layout for placing equipment In-house graphic design services 29
Quality Program Global Food Safety Initiative SQF 2000 Level 3 Certified Audit Scores at 98%+ Visual Defect Charting GMP Policy Posting 30
Quality Program
Quality Program All employees must utilize wash stations in their work areas Documentation in English and Spanish In-line Metal Detectors Electrocutor for Flying Insects Lab equipment to determine weights, moistures, solids, D. E. and Temperatures Q.A. checks metal detectors hourly 32
Quality Program Finished goods at Sunrise staged to be shipped to Distribution Center in El Paso All product undergoes one last quality check before shipment to the U.S. 33
Quality Program FDA Inspectors at each border crossing FDA System randomly selects shipment and items to be inspected FDA Lab analyzes flavors, colors, and ingredients independently FDA and U.S. Customs inspect packaging for labeling compliance Mount Franklin Foods works directly with FDA offices 34
Quality Program Product Recall System SQF 2000 Level 3 HACCP Pest Control Management Hand Sanitizers Employee GMP s Trailer Inspection Finished Goods Q.C. Food Safety and Quality Code Dating Bag / Box / Pallet Training Room Plant Security Hairnets, Uniforms Raw Material Incoming Q.C. 35
Quality Program Fully-Integrated Food Safety and Quality Program HACCP Hazard Analysis Critical Control Point Product Recall Lot Tracking SPC Statistical Process Control Meets or Exceeds all State, Local, and Federal Regulations On-Site Lab to test for correct Weights, Moistures, Solids, etc. On-Site Microbiology Laboratory for Pathogen Testing Annual audits by outside companies: GFSI (SQF 2000) certified U.S. Department of Homeland Security Compliant 36
Warehousing & Distribution Mount Franklin s 240,000 square foot distribution center in El Paso Automated Forecasting System Forward & Backward Lot Tracking Fully EDI Capable Order Acknowledgement Invoicing Electronic Funds Transfer 37
Performance Metrics Order Lead Time: Make to Order: Shipment Geography: On-time Delivery (w/in 1 day) 97.8% Case Fill Rate 99.8% Order Fill Rate 97.1% Inventory Turns 12.5 Times Technology Automated Forecasting System Material Requirements Planning Systems (M.R.P.) Forward & Backward Lot Tracking Fully EDI Capable Receipt of Orders Order Acknowledgement Invoicing Electronic Funds Transfer 7 to 10 days (industry standard is 14 days) Majority of Products LTL and Truck Load National 38
Questions? Discuss Next Steps Thank You! 39