Michele Murphy Senior Vice President of Labor & Employee Relations SUPERVALU

2. Michele MurphySenior Vice President of Labor & Employee RelationsSUPERVALU

3. Jeff Noddle Chairman and Chief Executive Officer SUPERVALU

4. Our World has Changed Dramatically • Economic uncertainty • Rising utilities costs • Increasingly stressed consumer • Changing the way we look at our business and building for the future

5. Welcome Home from Your Safari! • Minneapolis/St. Paul particularly competitive for grocery retailer • Market competition means competition for top talent • What is SUPERVALU doing to attract and retain a world-class workforce while facing the realities of a rapidly changing talent pool?

6. What are some of these changes? • By 2012: A shortage of approximately 6 million workers • By 2019: All but the youngest Baby Boomers will be retirement age • Since 1997: Single women with undergraduate or graduate degrees increased from 28% to 41% • 50% of undergraduate business degrees are awarded to women • 57% of all bachelor’s and master’s degrees are awarded to women • Women hold more than half of all managerial and professional positions in the U.S.

7. About SUPERVALU? • One of the largest grocery companies in the U.S. • Coast-to-coast, border-to-border footprint • Operating in some of the largest, most competitive retail markets in the U.S. • Brands include CUB, ALBERTSONS, JEWEL-OSCO, SHAW’S, ACME and SAVE-A-LOT • Supply Chain organization provides full suite of services to corporate and independent grocery retailers • Supply Chain organization serves approximately 5,000 independent and SUPERVALU-owned retail endpoints in 48 states

8. Where We Do Business:Retail and Supply Chain

9. Nothing represents a person’s culture more than food.

10. Diversity is the art of thinkingindependently together. -Malcolm Forbes

11. We all have to expand our capabilities to encompass the changing world, its growing diversity and, indeed, its complexity -Lachlan Murdoch

12. Expanding Our Capabilities • Cultural change does not happen overnight • A priority for SUPERVALU: Change must come from the top • SUPERVALU Board of Directors: 14 individuals; 3 women, 3 people of color • Among the most diverse boards in Minnesota and in the country

13. Our Executive Leadership Team • Eight individuals: 2 women in traditionally male-dominated roles • Janel Haugarth, president and chief operating officer, Supply Chain Operations • Pam Knous, chief financial officer

14. Breaking the “Glass Ceiling” • Banner leadership is traditionally male-dominated • Sue Klug, ALBERTSONS Southern California: ~250 stores, our largest retail division • Judy Spires, ACME: ~130 stores • Marlene Gebhard, SHOP ‘N SAVE: ~40 stores • Labor Relations is also male-dominated • Michele Murphy, senior vice president, Labor and Employee Relations

15. Deep Bench Strength • Impact of women in leadership positions is key to aspiring executive women • SUPERVALU has been recognized by Progressive Grocer “Top Women in Grocery” • Eleven women named across two years • Representing a range of functions: operations, marketing and merchandising, finance • SUPERVALU offers unique opportunities for challenging, rewarding careers

16. Creating Partnerships for Attracting and Retaining Experienced and Emerging Leaders • In second year of partnership with Catalyst • Providing resources, dependable benchmarking • Board of Services program develops women executives for vital corporate board experience • Network of Executive Women: increasing our sponsorship level • Exceptional opportunities for networking, best practice sharing and leadership development • Geographic footprint allows our local leaders to get involved in meaningful ways

17. Reaching Candidates New to the Workforce • Working with student and graduate organizations help us find candidates we might not otherwise reach • Students In Free Enterprise (SIFE): reaching high-potential associates still in undergraduate programs, committed to becoming socially responsible leaders and taking control of their own futures • National Black MBA, National Society of Hispanic MBAs • Leveraging career fairs, on-campus events and community and networking activities • Improves access to diversity candidates

18. Retention: What’s Important? • Associates benefit from a cohesive vision, stable management and sophisticated consumer insight – this comes from a passionate workforce • We focus on fostering an atmosphere of inclusion, respect, integrity and mutual success • SUPERVALU is creating “the best place to work, shop and invest in our industry” – starts with a company’s culture

19. Using Business Resource Groups to Reinforce Diversity Commitment, Support Business • Associate-run groups are allies in supporting company goals, providing forum for development, participating in marketing activities • Groups are in corporate offices and in divisions throughout the country • In-Sight and PROUD: GLBT and allies • BLN: Black Leadership Network • HOLA: Hispanic Organization for Leadership Advancement • Multi-cultural groups

20. Focus on MESA: Mentoring, Encouraging, Supporting and Achievement • Dedicated to providing mentoring, encouraging and support to women to help achieve professional and personal goals • Established in 2001 • Nearly 1000 members across five chapters • Community involvement focuses on local agencies and women and children in need

21. Mentoring for Success Many people ask me whether it is important for women to have other women as mentors. While I certainly believe in women supporting one another’s careers, I would advise to never turn down a mentor due to gender. In my career, the grocery supply chain business is traditionally a male-dominated field, so my opportunities for female mentors were few. As a result, my mentors have been men who connected with me and challenged me to look at my career growth and opportunities in a new light. Remember: Mentors come in all sizes, ages and genders, it’s the support and trust that you build that counts more than anything. Janel Haugarth President and CO Supply Chain Services

22. Education: Demonstrating our Commitment • Education is underrated as a component of associate retention, particularly with high-potential and diversity candidates • Education shows commitment to supporting and investing in a person’s career • As an organization: you get back as much as you give through educational investment

23. SUPERVALU Work-Based Learning • Internal program for high-potential associates • Past 2 years: 78 participants: 32 women, 14 diversity • Participants identified as strong candidates for potential leadership across all company functions • Intensive 9-month program focused on real business issues; interactive, energetic educational experience • Opportunity for knowledge transfer from Baby Boomers • Allows continuing evaluation of next-generation leaders • Fosters appreciation of a variety of perspectives

24. FMI Educational Forum: Industry Collaboration is Vital • Although we compete, we must collaborate to create a healthy, vibrant, attractive industry • Inaugural conference in May 2009 • Opportunity to learn from each other and bring together scholars, executives, industry leadership and vendors • Continue to find opportunities to collaborate in attracting and retaining the best and brightest

25. We are of course a nation of difference – they are the source of our strength - Jimmy Carter

26. Driving Business Results with Diversity • Ensure a true culture of inclusion • Inclusion: making a place at the table for everyone • Take into account that diversity is not skin color or gender; it’s about the vast spectrum of ideas, experiences and opportunities • Create game-changing innovation through inclusive learnings

27. Changing the Game: Creating SUPERfusion • Needed a new merchandising and marketing organization following 2006 acquisition of Albertsons properties • SUPERfusion vision: the strongest grocery retailer was one that could leverage national scale but remain completely relevant to each neighborhood • We had to move quickly – filled more than 200 positions between January 2008 and September 2008 • Result: One of the most collaborative, experienced and innovative teams in the industry creating experiences that are exactly what our shoppers want

28. Times are Changing. Are we? • Women account for 93% of all food purchases • 70% of new businesses are started by women • 59% of women feel misunderstood by food marketers • A learning: Nearly every customer who walks through our doors is a woman – and with more women in the workforce, chances are these customers are pressed for time. When they walk into the store, more than half of them don’t think we give them what they want. Sources: Trendwatching, Aug. 2007; Telestra Business Women’s Awards.

29. Identifying our Opportunity • Drawing on expertise of experienced, market-savvy women – see our customers through their own eyes • Research and development: research lab, test kitchens, focus groups and our own associates • Our opportunity: Create a straight-forward, easy, supportive shopping environment that helps busy shoppers put together the meal they’re looking for

30. Business Initiative: Meal Solutions • Helps consumers put good, nutritious, restaurant-quality meals on the table • One-stop-shopping for all entree ingredients, often including recipes and sides • In and out quickly • Understanding our shopper, time constraints and desires, we help to “turn the dining room lights back on”

31. Demands are changing. How are we helping customers buy what they want? • Diversity addresses a wide range of experiences and perspectives • Old thinking: Organics are for “Birkenstock crowd” and “tree huggers” • New thinking: Organics are healthier, more desirable, can be pricier • 27% of consumers purchase organics weekly • 96% of consumers use fresh organics occasionally • North America is largest organic food and drink market • Entry to organics perceived as price prohibitive

32. Business Initiative: Wild Harvest Own Brand

33. Meeting Needs, Supporting Communities • Committed to developing and managing a vital Supplier Diversity program • Ensuring opportunities for women and minority business entrepreneurs to do business with us • Supports our drive to procure products and services to meet diverse customer needs

34. Business Success: Cynthia Cook Inc. • Partnership began in 1990s in Twin Cities • Product demonstrations and merchandising needs • Expanded to additional markets, specifically for remodels and grand openings • Additional opportunities within the organization • Outcomes: Job creation for Cynthia Cook Chefs, increased sales for SUPERVALU suppliers, increased revenues of SUPERVALU banners

35. Celebrating Diversity in our Communities • Raising awareness, creating promotions and driving store traffic in support of diversity and cultural celebrations • Leveraging relationships with local and national vendor partners to recognize Black History Month and Hispanic Heritage Month

36. Business Initiative: Black History Month Partnership Drives Sales, Philanthropy • SUPERVALU and Coca-Cola donated $150,000 to 49 non-profit organizations as part of Coca-Cola’s “A Moment of Inspiration, a Lifetime of Black History” celebration • With Coca-Cola, hosted viewing parties of PBS program “African American Lives II” • Additional partnerships with Colgate, General Mills, Kellogg’s, Kraft and Unilever for high-profile merchandising and donation program • In-store samplings feature more than 30 African-American vendors, driving awareness and sales

37. Variety is the Spice of Life - American proverb

38. Change is Constant and Transformational • By 2010: More than 64 million skilled workers of retirement age • Gen Y is 70 million strong, and nearly half of them are adults in the American workforce today • By 2012: Hispanic buying power increases 47.8% • By 2012: African American buying power increases 34% • By 2012: Asian buying power increases 45.9% • By 2050: Hispanic population will increase 297% • By 2050: Asian American population will increase 181%

39. Harnessing diversity is the key to our future. The long-term health of our business depends on it.