Food Waste Collection

Don Justiss Operations Director

Organix Recycling, LLC

CONFIDENTIAL

Incorporated in 2009 for explicit purpose of diverting food waste from landfills to sustainable recycling facilities

Largest National collector of food waste for the Walmart food waste diversion program servicing over 950 stores

On pace to divert 200,000,000 lbs. of food waste in 2012

Operations in 15 states with aggressive 12-24 month expansion plan

Team has decades of recycling experience in many different fields and is always on the cutting edge Participation with governmental agencies to improve the recycling climate Active programs/pilots with many companies: Walmart, Jewel-Osco, Weis Markets, WaWa, Costco, Nordsrtom

Expertise in urban and rural environments

Excels in emerging technologies

CONFIDENTIAL

Organix Introduction

2

CONFIDENTIAL

Organix Coverage Territory

3

CONFIDENTIAL

Why Sustainable Solutions for Food Waste

4

“Wasted food is not only a waste of money, it's also not good for the environment”

Food waste sent to landfills contributes to global warming

Food Waste is largest producer of methane gas in landfills Landfills produce 34% of methane all methane emissions Methane gas is 21 times more toxic than CO2

Landfills are running out of space

Food Waste accounts for 13% of all land-filled material Tip fees and landfill rates are increasing because of limited capacity

Save money by lower waste fees

Governmental legislations and regulations

Align with corporate zero-waste programs

Save energy and reduce greenhouse gases by best in class recycling

Reap PR value by being in the public spotlight seen as a good corporate citizen

Goals of Program! Create a financially competitive diversion program Minimize operational disruption Maximize product diversion Reduce carbon footprint

Back-of-Store Collection

2 or 3 yard container(s) outside the rear of the stores May include 64 gallon totes inside which are rolled out on collection day Doesn’t intrude on internal space Weekly collection in rear of store (typical to garbage collection)

Swap Collection 64 gallon totes, inside building Small volumes High cost of collection Potential space limitations at the store

Customized Collection Programs Meets unique needs of customer Varied containers, equipment and/or service intervals

CONFIDENTIAL

Collection Program Options

5

Program Overview

Purchase and place receptacles at each location as warranted by volume estimates and collection frequencies

Store employees de-package discarded food and place it in designated container

Outside container is locked to prevent people/animal intrusion and limit contamination possibilities

Inside containers are brought outside at the back of store on collection day

Organix will wash and sanitize the containers as warranted

Organix collects product with large dump trailer and returns receptacles to the back of the store

Organix transports and manages recycling of product, following all applicable laws and ordinances

CONFIDENTIAL

Back of Store Collection

6

CONFIDENTIAL

Back of Store Collection - Receptacles

7

Outside, 3 yard Receptacle

Inside, 65 gallon Receptacle

CONFIDENTIAL

Back of Store Collection – Product Diversion and Collection

8

Product Diversion

Collection Equipment and Process

Difficulties

Lack of density

High operating costs

Heavy fuel usage Excess wear and tear on equipment More labor to provide service

Low revenue production per mile, per driver

Competing with local MSW haulers and low landfill rates

High capital costs Provide adequate storage to minimize need for emergency services Large capacity trucks to haul maximum volume Late model equipment for reliability

More difficult travel infrastructure

Weather obstacles

CONFIDENTIAL

Rural Route Collections

9

CONFIDENTIAL

Properly De-Packaged Food Waste

10

CONFIDENTIAL

Alternative Recycling Options

11

Organix attempts to follow the EPA’s hierarchy of recycling options and divert Food Waste to the highest recycling option available, while being mindful of travel costs and carbon footprint ramifications. Today, Organix diverts millions of pounds of Food Waste to the following sources:

Compost 71%

AD/Green Energy Capture 13%

Animal Feed 16%

CONFIDENTIAL

Value from a Landfill Diversion Program

12

Social Impact: Customer interests Employee satisfaction Positive community visibility to the program

Environmental Impact:

Limit volume entering landfills Lower carbon footprint Reduce exposure to environmental damage potentially caused by landfills Meet sustainability goals

Financial Impact: Recycling costs are competitive with landfills today, but decreasing as infrastructure grows Improved data capture Better purchasing practices; decrease over-buying, better inventory management Ultimately, reduce overall waste generation

Create value from products that were previously considered waste

Become industry trendsetters

CONFIDENTIAL

Let’s Get Started!

13

1. Perform a modified waste audit to determine estimated volumes and product mixture

2. Discuss your operational structure to insure minimal disruption and changes

3. Identify the most efficient collection option

4. Create calendar of scheduled pick ups and scheduled data reporting

5. Train managers and help to seamlessly transition new program

6. Monitor early phase of program, catching any early issues, recommend remedies

7. Meet 30 days after program launch to review, refine and regulate

CONFIDENTIAL

Thank You

Organix Recycling, LLC 9980 W. 190th St., Unit C

Mokena, IL 60448 Contact: Don Justiss Office: 708-326-3900

Cell: 708-921-4153 donj@organixrecycling.com www.organixrecycling.com

14