The World of General Mills. 2 Championship Brands.

The World of General Mills

2

Championship Brands

3

Nourishing Our Planet

Began using recycled materials for paperboard cartons

(1930s)

Purchasedin 2000

Early crop rotation

adoptersEarly pesticide management

adopters1945

General Mills Foundation

1954

100% vitamin-fortifiedcereal in 1961

Green Giant Integrated Pest Management

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

First vacuum-pack corn in 1929

First Global

Sustainability Officerin 2007

Commits to100%

Sustainablepalm oil by

2015

4

Cheerios: A Circle of Goodness

Efficient Cereal Processing

Sustainable Crop

Renewable Energy

Recycled Packaging

Healthy breakfast

Nourishing Communities

5

2015 Goals

Energy, water usage andgreenhouse gas emissions

Transportation fuel *

Solid waste generation

Packaging improvements

6

Our Mission and Values

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EPR: Does it Deliver as Promised?

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Grocery Manufacturers Association

*Represents a sample of GMA’s Members

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PackagingTogether, the food, beverage and consumer products industry will voluntarily reduce its packaging by 4 billion pounds by 2020. This is a 19% cumulative reduction and a significant step for our industry and our environment. Learn More: GMA’s Sustainable Packaging Best Practices Guide outlines considerations and model practices in packaging design and sourcing.

Sustainability LeadershipThe food, beverage, and consumer products industry has made great strides in many sustainability areas, furthering our commitment to applying sustainable solutions in all areas of our work while continuing to deliver products that enhance consumers’ lives.Learn More: A newly released Sustainability Success Stories Report by PricewaterhouseCoopers outlines the dramatic steps the industry has made around the areas of air, water, and waste.

Food WasteThere is no bigger opportunity for our industry to simultaneously address hunger in America and our environmental footprint than by reducing the amount of food sent to landfills by diverting food to food banks and food waste to beneficial alternatives like compost. These actions represent not only a significant opportunity to help the hungry, but also an opportunity to reduce emissions of methane. Learn more about the GMA-FMI Food Waste Opportunities and Challenges initiative.

Sustainability

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Sustainability

Heinz now manufactures all glass ketchup bottles using 100% post-consumer reground and recycled glass

Since 2005, Kraft has removed more than 50 million road miles from its global transportation network

The Kellogg Company has reduced electricity use at its warehouses in North America decreased 53% since 2005

The Campbell Soup Company has reduced the amount of steel required to make soup cans by more than 1,800 tons since 2005

Cargill’s engineers designed and installed a methane reuse system that has and have displaced 20-25 percent of all natural gas use and reduced greenhouse gas emissions by 325,000 metric tons annually

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State Overall Recycling Rates

AK

HI

OR

WA

ID

MT

WY

NV

UT

AZ NM

CO

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL

KY

MI

IN

OH

TN

MS AL

FL

GA

SC

NC

VA

WV

MD

DE

NJ

PA

NY

ME

NHVT

MA

RI

CT

<10%11%-20%20%-30%

CA

30%-40%>40%*Note: 2004 Data

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U.S. Recycling Rates of Packaging

Source: US EPA 2010 MSW Report, 2009 data (last reporting year)

1960 1970 1980 1990 2000 20090%

10%

20%

30%

40%

50%

60%

Packaging/Containers

Overall Recycling

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Landfilling is Decreasing

1960 1970 1980 1990 2000 20090

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

0

0.5

1

1.5

2

2.5

3

3.5

Landfilled Waste (daily pounds per capita)

Landfilled Waste (tons)

Tons

Daily

Pou

nds p

er C

apita

Source: US EPA 2010 Municipal Solid Waste Report

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Solid Waste a Challenge to Municipalities

Glass6% Met

als11%

Plastics21%

Rub-ber &

Leather

5%Textiles8%

Wood10%

Organic Waste

35%

Other5%

2010 Landfill Composition, 165 Million Tons

3

Food: 36 M tons

Packaging: 38 M tons

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EPR: Commonly Stated Goals

Decrease environmental impact of packaging by increasing recycling rates1

Create incentives to design “environmentally friendly” packaging3

Extended Producer Responsibility: Shifts responsibility for the end-of-life of products and/or packaging from the municipality to the manufacturer.

What is Extended Producer Responsibility?

Create financial incentives for companies and consumers to recycle2

4 Generate new revenue for states/municipalities

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Conclusion 1: U.S. overall MSW recycling rate is equal to or better than Canada & Europe

13

US EU Canada0

5

10

15

20

25

30

• U.S. 24% , EU 23%, Canada 18%

Nationwide recycling rates of all MSW

SAIC Report: EPR Not An Effective Solution

7

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Conclusion 2: EPR does not cause changes in package design or selection

• Packaging in U.S. decreased more than in EU, despite faster GDP growth in U.S.

SAIC Report: EPR Not An Effective Solution

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Jurisdiction Start Date Data Date Total System Net Cost Net Cost/Ton

Belgium EPR-1997 2009 Minimum net cost €112.3M Over $98

Manitoba EPR- 4/2010 2010 Total annualized estimated C$13.7M Over $166

Ontario EPR- 2003 2010 Total cost C$203M $202

Ramsey, Co MN No EPR 2011 $6.5M Net Municipal cost $156

Conclusion 3: EPR has not decreased system cost. Increases government & administrative costs

8

SAIC Report: EPR Not An Effective Solution

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Conclusion 4: Current policies can effectively & efficiently in improving recycling & recovery rates if implemented

•18 identified in report • Work in combination to increase rates• Do not increase government or administrative costs

SAIC Report: EPR Not An Effective Solution

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GMA Holistic Approach

1. Evaluate Options for Managing Waste

2. Continue our Commitment to Reduce Waste

3. Increase Recovery and Recycling Rates

4. Address Food Waste

5. Coordinate Efforts

6

• Deals with all aspects of waste, not just packaging and recycling

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Solution 1: Evaluate Options for Managing Waste

Pay-as-you-throwVariable pricingDisposal bans, limitsRecycling rewards, rebatesMandatory recycling (require materials or service levels)Recycling program managementIntegrated solid waste management plansDiversion goalsLandfill surcharge/taxRecycling infrastructure/program grantsBuilding design standardsNo direct landfilling of unprocessed waste

• SAIC Report

• Understand Other Initiatives

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Solution 1: Evaluate Options for Managing Waste

U.S. has One-Fifth Excess Capacity

Recycling of total MSW

Source: McKinsey & Company analysis

Current R

ecyclin

g Rate

Potential

recycl

ing rate

if infra

structu

re is f

ully utilize

d

Potential

recycl

ing rate

if low-te

ch in

frastr

ucture

is upgra

ded0%

10%

20%

30%

40%

50%

60%

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U.S. Lags Behind Europe in Waste to Energy

U.S.EU

Germany

Netherlands

0%

5%

10%

15%

20%

25%

30%

35%

40%Waste to Energy Recovery Rates (2007)

Source: US EPA 2010 Municipal Solid Waste Report

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• Update 2012 Packaging Reduction Survey• 2013 Sustainability Success Stories Report• Best Practices Guide to Sustainable Packaging with FMI

Solution 2. Continue our Commitment to Reduce Packaging Waste

-1.5

-4.0

-5

-4

-3

-2

-1

0

1

2

2010 2020

Tota

l Wei

ght R

educ

ed (b

illio

n po

unds

)

4b pound packaging weight cumulative avoidance, 2005-20209

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Solution 3. Increase Recovery & Recycling

23% increase in volume

18% increase in participation

10

• Identify Best Practices

• Learn from NGO Thought Leaders

• Aggregate & Amplify Municipal Success

• Explore Partnerships with Key Cities

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Solution 4: Address Food Waste

Social

Economic

Environmental

The Case for Less Food Waste Food Waste Action, Next Steps1. Complete Assessment

2. Agree on Metrics & Goals

3. Publish & Educate Members on Best Practices

4. Identify & Support Public Policies

5. Develop & Execute Communication Plan

6. Explore Pilot Projects

11

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Solution 5: Coordinate Efforts

• Participation

• Partnership • Leadership

• Education

12

AK

HI

CA

OR

WA

ID

MT

WY

NV UT

AZ NM

CO

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL

KY

MI

IN OH

TN

MS AL

FL

GASC

NC VA

WV

MD

DE

NJ

PA

NY

MENH

VT MA

RI

CT

2012 Introductions

As of 11/13/12

2013 EPR Forecast

2013 Prospective

Packaging EPR Activity

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Food for Thought

• What is the problem we’re trying to solve?

• Is a trash tax the most efficient way to address these challenges?

• Are there other solutions that are less costly?

• Are there more sustainable approaches that are both voluntary and more effective?