16 WATER MANAGEMENT PFG is actively working with suppliers to identify products that are less water intensive as part of our efforts to deliver more sustainable solutions to our customers. One example of this is the beef we use for our branded product lines. We have established partnerships with farmers that use highly efficient and third-party verified practices for raising their cattle. These select farmers are experimenting with promising and practical technologies, including an innovative corn seed and feed ingredients, that will further enhance efficiencies and reduce the water footprint associated with beef production. Our suppliers not only verify their production practices through a robust third-party certified system, but they are actively working to establish baseline data so that our supply chain will be among the first to quantify annual improvement in the metrics driving production practices. In addition, we are now purchasing Peak ® Hydroponic Lettuce in select locations. This product is grown approximately 200 miles from our distribution center in South Bend, Indiana. The facility is fully automated, meaning that humans do not ever need to touch the lettuce. The process includes climate management technologies and recycling systems that ensure that they can produce lettuce using 95% less water than a typical field-grown product. PFG plans to expand our water saving efforts in 2022 and leverage best practices more effectively across our enterprise and supply chain.

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