Overall, we reduced our solid and dairy waste, as well as our water and energy use in 1999. The downward solid waste trend reflects ongoing efforts to reduce the amount of waste generated at the plants. The complexity of our product mix and our container size greatly impacts our waste stream.

The resource reduction reflects both an increased efficiency in product run scheduling and employee attention to environmental concerns. The following charts show the 1999 results compared to 1998. Percentage shown indicates the change from 1998 to 1999. (A negative number reflects an overall reduction.) All values are normalized to gallons of production. The first table identifies the production for the year. In 1999 we shipped 74,855 pallets, a 6% increase over 1998.

Our goal for 1999 was a 10% reduction in solid waste. Ingredient packaging remains the primary source of solid waste. The success of the tote project, described earlier in this report, should reduce solid waste significantly in 2000. The Waterbury plant changed the way they handle fiber drums in 1999. Instead of recycling them, which was a safety hazard, they purchased a drum crusher and now throw them away. Although this slightly increased solid waste, in our view, the safety risk to the employees outweighed environmental considerations.

Most of our dairy waste is composted or placed in manure pits. Springfield has a small animal feed program. Our dairy waste is high strength and also represents our greatest loss of product. Overall our plants achieved an 11% reduction in dairy waste.

The manufacturing of novelties at our Springfield plant results in higher dairy waste. In addition, we do not have access to the same community wastewater treatment resources there as exist at our other manufacturing sites. Under Springfield’s wastewater permit, our focus is specifically on the management of fats, oils and grease (FOG) residue in the plant discharge stream. Historically the build-up of FOG has had a negative impact on the municipal wastewater plant. Our primary goal was to work with the Town of Springfield to find a resolution regarding FOG build-up and to eliminate the need for on-site pretreatment. Our decision to co-pack novelties will significantly reduce the FOG loading to the municipal wastewater treatment system.

Our energy use declined by 2% and our water use declined by 6%. Our water use typically follows the dairy waste trend. Energy use is closely related to production volumes and the efficiency of the equipment.

Recycling efforts at our plants are ongoing. Because we stress materials reduction and re-use, our plants reduced the overall amount of material recycled. The St. Albans plant earned over $50,000 from its recycling efforts. This revenue covered the plant’s entire solid waste cost. The Waterbury plant earned over $10,000 in recycling. This revenue was used for equipment purchases to support recycling or solid waste reduction costs. The Springfield plant earned approximately $6,000 from their recycling efforts, and the Distribution Center earned approximately $2,000.

Our primary source of hazardous material was waste oil. We had no hazardous material spills in 1999. All used waste oils were recycled through re-refining. This re-refining of waste oil is the soundest environmental method of managing waste oil. We recycled 835 gallons of waste oil in 1999.

As signatories to the CERES (Coalition of Environmentally Responsible Economies-www.ceres.org) Principles, we annually complete an environmental report on our business and submit the report to the CERES organization. Our most recently completed report is available on request. The 10 Ceres Principles are: Protection of the Biosphere, Sustainable Use of Natural Resources, Reduction & Disposal of Wastes, Energy Conservation, Risk Reduction, Safe Products & Services, Environmental Restoration, Informing the Public, Management Commitment and Audits & Reports.

Our Green Team continued to be active in 1999, focusing on environmental education throughout the Company. Its major effort in 1999 was an environmental awareness week, an event designed to provide a fun way for employees to learn about key environmental issues.

Refrigeration is one of our greatest uses of energy and hazardous materials. During 1999 we began to research new and emerging alternative refrigeration technologies. We will continue this research during 2000.

No environmental regulatory actions or litigation occurred in 1999. As noted in the Safety section, the plants were required to comply with the Environmental Protection Agency’s Risk Management Plan (RMP) due to the storage of greater than 10,000 lbs. of anhydrous ammonia (used in refrigeration).