Torch, Summer 1996

the parameters of our Corporate Philosophy, our focus is to offer quality products at the lowest possible cost through a state– of-the-art plant and quality raw material and to maintain trust and credibility with our customers, growers, and employees . From the Corporate Philosophy and the Corporate Mission Statement, we draw our Corporate Values: 1. To meet our commitments. 2. To maintain trust and credibility with our customers. 3. To maintain trust and credibility with our growers . 4. To produce a quality product. 5. To maintain an atmosphere of harmony within the workplace . 6. To maintain a clean and comfortable environment within the workplace. Within the parameters of our Corporate Philosophy, our Corporate Mission Statement, and Corporate Values, our Corporate Goal is to seek to make a profit to maintain a 10 to 15 percent self– financed real growth in the future. TORCH: What practices, traditions, or family influences have developed and continue within your company that help to define the culture of Bolthouse Farms and make it distinctive? ~ The family has maintained the philosophy that we are to use the business as a platform for ministry. Not a preach-at-you ministry, but a living, practicing ministry that glorifies Jesus Christ in the business world. We strive to be salt and light in a business culture that at times can be very brutal. Two traditions make Bolthouse distinctive from other companies: Bonus. All employees share in a bonus system of some kind . All production workers get a bonus that rewards them for individual production performance . All nonproduction and management personnel are rewarded with a generous bonus plan that relates to the company's profitability. This lets all employees feel that they are partners with the family in the business . Tithing. All company profits are tithed primarily to the Bolthouse Foundation which in tum distributes the monies into Christian endeavors. My wife and I and our four children, along with their spouses, sit on the board of the Foundation to make the distribution decisions. Andre and I (active family members) sit on the company board with three outside nonrelated board members. The outside board members make up the auditing, nominating, and compensation committees. TORCH: How do you express your Christian faith within the context of your business? ~~ Our corporate philosophy reminds us that God is the focus in all our decisions. People know of our convictions regarding Christ and the role He has in our lives and business. We are not bashful about expressing our faith in Jesus Christ and what He has done for us. TORCH: What has been the company's greatest challenge? i217f!Jj: One of the greatest challenges in any family business that has the desire to pass the business from generation to generation is to do just that. Companies must deal with three important considerations: 1. How to move the business from one generation to another in light of today's oppressive estate tax laws. 2. How to identify a successor for the management of the Company - a family member or outside professional management. 3. How to treat all family members fairly, whether they are active in the company or inactive. Torch 7