Empire Kosher Poultry

PSU PresentationDecember 1, 2006

Shari Book

Company History

• Founded in 1938, Empire was the first to apply modern processing techniques to kosher poultry

• Cold water processed• Eviscerated, soaked & salted• Strict adherence to laws of Kashrus• Certified Kosher by the largest and most accepted

Rabbinical agency (OU - Orthodox Union)

Facilities

• Fully Integrated Poultry Processor- Breeder Operations- Hatchery

Hatchery

• 600,000 egg capacity/week

Facilities

• Fully Integrated Poultry Processor- Breeder Operations- Hatchery- Grow-out Farms

Growout Farm

• Contract Growers– Chicken– Turkey– Broiler Breeder / Hatching Egg Production

Facilities

• Fully Integrated Poultry Processor- Breeder Operations- Hatchery- Grow-out Farms

- Feed Mill

Feed Mill

• 3,000 tons/week• Commodity Market

Facilities

• Fully Integrated Poultry Processor- Breeder Operations- Hatchery- Grow-out Farms- Feed Mill

• Main Plant- Current Production 200,000-220,000 Chickens and 20,000- 25,000 Turkeys per week- Slaughter, Cutup, Cooked and Fried Further Processing

- Storage, Shipping and Distribution- Waster Treatment

Empire’s Difference

• Nonkosher– Mechanical Slaughter

– Hot Water Scalding

– USDA Inspection

– Ice Water Chilling

– Two Hours Processing Time

– Specialized Plants

– Regional Distribution

– Low Cost

– Commodity Market

• Empire– Rabbinical Hand Slaughter

– Cold Water Processing

– USDA + Rabbinical Inspection

– Tap Water Soaking + Salting + Ice Water Chilling

– Four Hours Processing Time

– Multi Purpose Plant

– National Distribution

– Over Double the Cost of Nonkosher Production

– Affluent Loyal Market

Total Available Kosher Market

• Consumers looking for kosher products spend $6.75 billion annually

• More than 50% of kosher chickens and 90% of kosher turkeys sold in the U.S. are produced by Empire

Empire Brand Awareness

• Oldest and most respected name in kosher poultry• Accepted and used by 96% of kosher Jews, four

times greater than next competitor• Most recognized kosher poultry brand with 99%

brand awareness among kosher Jews (52% among all consumers)

• 83% brand loyalty (used most often), 14 times greater than next competitor

• Proven taste test winner - Boston Globe, New York Times, Gourmet Magazine, and Cook’s Illustrated

Stake Holders

• Consumers• Customers – Distributors• Board of Directors• Workers’ Union• Jewish Certification Organiztions

– Orthodox Union– KAJ

• Copackers• USDA• Other government agencies

Market and Production Factors

• Planning and Budgeting• Competition• Consumer Trends• Regulation Changes• Unforeseen Incidents