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Executive
    Dear AIB
    International
                                                                                                                                                                100 In 2019, AIB International will
                                                                                                                                                                                                                          Leadership Team
    Stakeholders,                                                                                                                                                   celebrate our 100 year legacy.
                                                                                                                                                                                                                                                       Alfonso
                                                                                                                                                                   Stay tuned for news                                       Andre                     Capuchino
                                                                                                                                                                   on the celebration!                                       Biane
                                                                                                                                                                                                                                                       General
                                                                                                                                                                                                                             President &               Manager, AIBI
                                                                                                                                                                                                                             CEO                       Certification
                                                                                                                                                                                                                                                       Services
                      It’s been a year since our last update and what a year          Internal process improvements enabled us to invoice               In this day and age, technology is critical for any growing
                      it’s been. 2017 was a year of growth and stability for AIB      customers more quickly and we closed an unused legal entity       business. A CRM system is the first in a series of system
                      International. We’ve proven to our Board of Trustees, our       in China. The combination of these two, plus diligent follow up   upgrades that will provide needed automation and allow
                      customers and ourselves that we are a relevant force in the     on overdue invoices allowed us to pay down nearly $3 million      for more transparent data sharing across our global                                            Stephanie
                      industry and can operate a profitable business.                 in debt. We also reduced our overall SGA expenses, which          enterprise. Insights are also imperative for our customers,          David
                                                                                      allowed us to accelerate investments in forward looking           so we are positioning AIB International to better leverage                                     Lopez
                      This last year our revenue grew 6.8 percent, which was
                                                                                      projects such as the development of more eLearning, brand         data to benefit industry.
                                                                                                                                                                                                                             Fliss
                      in line with our peers in the inspection and certification
                                                                                      equity research and information system upgrades.                                                                                                                 VP,
                      industry. Our net income improved $3.3 million over the prior                                                                     Our sales and marketing teams have launched a more                   Global VP,                Food Safety
                      year and strong cash flow generated 9 percent EBITDA.           And while making these improvements, we kept our                  holistic go-to-market strategy called the Preferred Partner          Sales                     Services,
                                                                                      customers and employees happy. Our net promoter scores            Program. This program is a portfolio-wide approach
                      So how did we do it? We strengthened the relationships we                                                                                                                                                                        Americas
                                                                                      remained well above industry benchmarks and our employee          designed to assist our clients with the needs of their
                      have with our customers and worked hard to meet their
                                                                                      engagement scores increased 7 points over the prior year.         entire supply chain. This will help us expand business
                      pressing needs. As a result, our strategic accounts grew 21
                                                                                                                                                        with our strategic clients, but also create valuable
                      percent. Website sales were up 15 percent over 2016 due
                                                                                      To say the least, 2017 was highly successful for AIB              partnerships with new clients.
                      to improved marketing efforts, and a successful late year
                      launch of our new Food Defense Coordinator Online course.
                                                                                      International – and this is just the beginning.
                                                                                                                                                        We also launched a global, multilingual website earlier
                                                                                                                                                                                                                             Doug                      Katie
                      Both our loyal customers and changing regulations helped                                                                          this year. The newly designed site truly represents the              Markham                   Mayes
                      our labeling team surpass the $1 million mark for the first                                                                       international aspect of our company, as well as being
                      time ever.                                                                                                                        more customer focused with chat functionality, global                Director,                 VP, Marketing
                                                                                                                                                        credit card capability and a mobile friendly design.                 People                    & Product
                      At the same time, we got smarter about how we operate
                      our business. We streamlined our scheduling processes,                                                                            More than ever, product development and marketing are                Processes                 Development
                      which reduced billed travel expenses. This was good for AIB                                                                       working together to listen to the needs of the market
                      International, but more importantly we were able to lower                                                                         and deliver more relevant products and services. We’re

              We strengthened the
                                                                      “
                      the total cost of our services for our customers.                                                                                 conducting market research and transitioning more of our
                                                                                                                                                        training portfolio to eLearning. In addition, we’re pursuing
                                                                                                                                                        strategic alliances that will expand AIBI’s existing
                                                                                                                                                        capabilities, serve our clients closer to home and prepare
                                                                                                                                                        them for the future.
                                                                                                                                                                                                                             Tom
                                                                                                                                                                                                                             Ogle

                                                                                                                                                                                                                             Chief
                                                                                                                                                                                                                                                       Brian
                                                                                                                                                                                                                                                       Strouts

                                                                                                                                                                                                                                                       VP,
    relationships we have with our                                                                                                                      Our employees are also with customers every day, and                 Financial                 Baking & Food
                                                                                                                                                        ensuring they have the latest knowledge and skills is                Officer & VP,             Technical
    customers and worked hard to                                                                                                                        critical to AIBI’s success. This will also enable us to attract      Finance                   Services
                                                                                                                                                        and keep critical talent as we continue to grow.
          meet their pressing needs                                                                                                                     AIB International is a unique technical service organization
                                                                                      Moving Forward                                                    that specializes in assisting the global food and beverage
                      We implemented a hybrid staffing model in parts of the          We’ve entered 2018 with momentum and a sustainable                industry. We appreciate the ongoing support from all our             Jeff
                      world where demand is less predictable. We also executed        business model. Now we want to “ride the wave” so we can          stakeholders.                                                        Wilson
                      a larger proportion of our GFSI certification audits with       grow with our clients and enhance the capabilities of the
                      independent contractors. When combined, these moves             organization.
                                                                                                                                                                                                                             VP,
                      increased our capacity 1,000 days and reduced operating         In 2018 we are investing in technology, sales and marketing,                                                                           Food Safety
                      expenses by $1.2 million. This is even more impressive          product development, and training to further improve the          Andre Biane
                                                                                                                                                                                                                             Services, EAA
                      when you consider that our inspection and audit volume          skills of our staff.                                              President and CEO, AIB International
                      increased 4.6 percent.

2   AIB International 2018                                                                                                                                                                                                                   AIB International 2018   3
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Delivering Exceptional Results
    Through Online Training
      In 2017, AIB International further strengthened our online training portfolio by launching six new courses.
                                                                                                                                                                                                      “
                                                                                                                                                                                   The courses are well
      These courses were developed with the knowledge that not every baker or food safety professional can
      take time away from their facility responsibilities. Online training allows for in-depth learning without
                                                                                                                                                                                designed and loaded with
      unnecessary expense or time away from work, and investment in this area resulted in a measurable
      impact on our 2017 financials.
                                                                                                                                                                                  technical information

                                                                                                                      500+                 ENROLLMENTS                               4            NEW BAKING COURSES

                                                                                                                    Food Defense Coordinator Online                              Baking Specialist Online Collection
                                                                                                                    Whether on the line, in the warehouse, or working            AIBI is evolving from a provider of in person seminars to a
                                                                                                                    alongside the management team, protecting food and           creator of multi-platform learning. Last fall, AIBI added four
                                                                                                                    ingredients from intentional adulteration is one of the      new courses to the Baking Specialist Online Collection:
                                                                                                                    most critical challenges facing our global clients.             • Variety Hearth Breads Online
                                                                                                                    Food Defense Coordinator Online prepares a food                 • Variety Pan Breads Online
                                                                                                                    facility to prevent intentional adulteration. AIBI’s            • Tortillas Online
                                                                                                                    unparalleled community of experts shared their best             • Hamburger Buns Online
                                                                                                                    practices to meet FDA’s Food Safety Modernization Act
                                                                                                                                                                                 According to Brian Strouts, AIB International’s Vice President
                                                                                                                    (FSMA) requirements. By providing our customers with
                                                                                                                                                                                 for Baking and Food Technical Services, this collection allows
                                                                                                                    modules on how to prepare a vulnerability assessment,
                                                                                                                                                                                 industry professionals to curate their own education based
                                                                                                                    establish mitigation strategies, and maintain records,
                                                                                                                                                                                 on their needs.
                                                                                                                    we’ve helped them further their food protection plan.
                                                                                                                    Since launching in November, more than 500 online            “The Baking Specialist Online Collection is one of the best
                                                                                                                    enrollments have been sold.                                  offerings at AIBI,” Strouts said. “The courses are well designed
                                                                                                                                                                                 and loaded with technical information crafted specifically for

                                                                                                                        11
                                                                                                                                                                                 up-and-coming bakers.”
                                                                                                                                      MODULES
                                                                                                                                                                                 As a leader in both grain-based foods and food safety, AIBI
                                                                                                                    Baking Basics Webinar Series                                 is focused on providing more online learning in our core
                                                                                                                                                                                 markets.
                                                                                                                    Featuring 11 lessons designed for new bakers and
                                                                                                                    non-bakers, the Baking Basics Webinar Series is              Keep an eye out for these online product
                                                                                                                    the perfect program for those who want on-demand
                                                                                                                                                                                 launches:
                                                                                                                    training. AIBI thought of the entire training journey, so
                                                                                                                    lessons begin with baking lingo and build up to the          - New! FDA Food Labeling Online – April 23 release
                                                                                                                    essential knowledge about specialized products. The          - Updated! Food Safety Essentials – available in English
                                                                                                                    webinar series also saves time for our customers.              and Spanish, Summer 2018

4   AIB International 2018                                                                                                                                                                                                 AIB International 2018   5
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Partnering for Success
    “GFSI certification audit volume continues to grow for AIBI-CS,” said Alfonso Capuchino,
       General Manager, AIBI Certification Services. “And our certification offerings will
     continue to expand as more companies strive to improve their food safety programs.”

                                                                                               While AIB International’s food safety      Certification audits ensure that    “Companies committed to building
                                                                                               business grew in 2017, our certification   a well-developed management         a strong food safety culture realize
                                                                                               body also realized growth. AIBI            system is in place. Having          that they need both a management
                                                                                               Certification Services, a wholly owned     such a system in place helps        system audit and a thorough and
                                                                                               subsidiary of AIB, saw significant year-   organizations achieve their food    detailed physical inspection to realize
                                                                                               over-year growth in these areas:           safety goals.                       success,” said Stephanie Lopez, Vice
                                                                                                • BRC audit days increased 15 percent                                         President, Food Safety Services,
                                                                                                • SQF audit days increased 14 percent     On the other hand, AIBI’s GMP       Americas, AIB International. “These
                                                                                                • FSSC audit days increased 23            inspection is focused on a more     companies reap the benefits of
                                                                                                  percent                                 complete assessment of one          having both a documentation-focused
                                                                                                                                          component of the management         audit and a physical inspection. They
                                                                                               The total growth in certification          system, the implementation of       receive a more rounded assessment
                                                                                               audit days from 2014 to 2017 was 10        prerequisite programs. During       of the food safety level in their plants.”
                                                                                               percent.                                   an inspection, AIBI’s food safety
                                                                                                                                          professionals often uncover a       For AIBI, revenue from GMP
                                                                                               “GFSI certification audit volume           weakness or gap. He or she          inspections was also up 9 percent,
                                                                                               continues to grow for AIBI-CS,” said       can immediately begin an            which speaks to the strong demand
                                                                                               Alfonso Capuchino, General Manager,        investigation and consult with      for both inspections and certification
                                                                                               AIBI Certification Services. “And our      the client to determine how to      audits.
                                                                                               certification offerings will continue to   mitigate the risk.
                                                                                               expand as more companies strive to                                             As AIBI’s Certification Services grew
                                                                                               improve their food safety programs.”       Due to the benefits of each,        in 2017, our staffing approach also
                                                                                                                                          many clients choose to do both      evolved to allow more flexibility.
                                                                                               Both audits and inspections are            a certification audit and a GMP     Our certification team utilized more
                                                                                               important to a company’s food safety       inspection.                         approved contractors to extend our
                                                                                               programs.                                                                      global reach and serve markets where
                                                                                                                                                                              we wouldn’t otherwise have had
                                                                                                                                                                              staff. Contractor utilization allows
                                                                                                                                                                              AIBI-CS to adjust to market forces and

                                                                                                                                   “
                                                                                                                                                                              responsively serve our customers.

                                                                                                                                                                              AIBI-CS is already working toward
                                                                                                 Companies committed to building a strong                                     meeting the 2018 goal to expand
                                                                                                                                                                              our certification capabilities with
                                                                                                  food safety culture realize that they need                                  the addition of the BRC Brokers and
                                                                                                                                                                              Agents and IFS Logistics audits. We’re
                                                                                                   both a management system audit and a                                       also actively pursuing the expansion
                                                                                                                                                                              of our capabilities with key alliances
                                                                                                 thorough and detailed physical inspection                                    in Latin America and Europe.

6   AIB International 2018                                                                                                                                                                        AIB International 2018   7
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“
                                                                                                                                                                   With Nutrified Labels, our clients
                                                                                                                                                                 can be completely confident that the
                                                                                                                                                                information they receive from AIBI is
                                                                                                                                                                compliant with the latest regulations

                             2017 was a blockbuster year for AIB International’s Food Labeling group,     To prepare for market demand, the organization        “Food labels are a foundational tool that food companies
                             as they exceeded expectations and surpassed $1 million in revenue for        ramped up marketing efforts – including the first     use to communicate with consumers about their product.”
                             the first time ever.                                                         ever Facebook Live event for AIBI – and updated       Meloan said. “Smart companies will want to continue to make

           The
                                                                                                          its Nutrified Labels database.                        transitions without delay.”
                             “I want to congratulate Labeling Services for blowing their revenue
                             goals out of the water and and delivering outstanding results for our        “With Nutrified Labels, our clients can be            Some companies also prefer to update and maintain their

         Perfect
                             business.” said Andre Biane, President and CEO, AIB International.           completely confident that the information they        own food labels, so we host instructor led seminars and
                                                                                                          receive from AIBI is compliant with the latest        recently launched online learning.
                             AIBI’s Food Labeling group conducts compliance reviews and can               regulations,” said Elaine Meloan, Manager of AIBI’s
                                                                                                                                                                Food Labeling Online, released April 23, covers food labeling

       Label for
                             provide nutrition panels, ingredient statements and allergen disclosures     Food Labeling group. “Our team of experienced
                             using our Nutrified Labels database. Designed for compliance with US                                                               basics and how to comply with FDA labeling requirements.
                                                                                                          labeling professionals has been trained on the
                             regulations, the database helps AIBI’s labeling experts quickly calculate                                                          The course has five modules with interactive built-in quizzes,
                                                                                                          new requirements and are able to critically

        Further
                             and verify the nutrition information for clients’ products and efficiently                                                         and following each module there is an exam. The course
                                                                                                          analyze the database information supplied by
                             compile a compliant ingredient listing for placement onto a food label.                                                            describes how to declare ingredients, how to calculate
                                                                                                          ingredient manufacturers to ensure that the final
                             Information generated by Nutrified Labels can also be used by our                                                                  servings per container, what FDA recognizes as dietary fiber,
                                                                                                          label information is correct.”

        Growth
                             Canadian partner to develop information compliant with Canadian                                                                    how to identify sweeteners, and much more. Customers can
                             regulations.                                                                                                                       also benefit from the module on food labeling claims.
                                                                                                          Into the future
                             By now most food companies know that the nutrition facts panels on           The Food Labeling group continues to satisfy AIBI     With it’s second to none experts and proprietary Nutrified
                             their food labels must change following FDA’s new regulations. Though        customers well into 2018, and will continue to        Labels database, Food Labeling will continue to be a hot area
                             the proposed compliance dates have been moved out to January 2020,           encourage companies not to wait.                      for AIBI well into the future.
                             it’s best to not wait to update your labels – which was the message AIBI
                             delivered to the market last year.

8   AIB International 2018                                                                                                                                                                                AIB International 2018   9
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Judy                Brad               Greg
                               Abrams               Allen              Boyd
                               Senior Vice
                               President &                              Vice
                                                                    President of
                                                                                       Dear Friends and Colleagues,
                              Chief Financial   Vice President
                                  Officer                          Manufacturing
                                                of Operations
                                Gateway                            Flowers Foods,
                                                 Ardent Mils
                              Region YMCA                                Inc.               When AIB International was founded nearly 100 years ago, the food industry was very different than
                                                                                            what it is today. Innovation has changed the way we, and the consumer, look at food. The supply
                                Barry             Jeff                Brian                 chain has increased in complexity and many more people today depend on commercially produced
                               Clayton          Dearduff              Dwyer                 food that is safe to eat.
                                Senior Vice
                                 President,        Corporate         Director,
                                  Bakery        Director, Baking   Manufacturing            In this age of 24/7 information, consumers are more engaged than ever before. There are unlimited
                                Ingredients         & Snack         Operations              sources for nutrition and the background of ingredients. Product news, especially bad news, travels
                                AB Mauri          The Austin           Kroger               very fast. Social media is consumer research in action, which can both help and create challenges for
                              North America        Company            Company
                                                                                            companies attempting to lead their food categories, geographic markets, or channels.
                                 Todd            Michael            Michael                 The consumer is more aware and wants to know where their food and beverages come from and if
                                Larson           Leikam             Martin                  the contents are authentic. And as consumers seek more locally sourced foods and different ethnic
     Board of Trustees

                              Vice President,     President &                               cuisines, today’s centralized, low cost manufacturing model is being challenged.
                                Operations           CEO           Vice President,
                               Henningsen         Centralized       R&D/Quality
                                  Cold                               The Bama
                                                                                            More comprehensive food safety regulations and market driven certifications for safety, authenticity,
                                                 Supply Chain
                               Storage Co.       Services, LLC       Companies              and transparency add to the challenges. Functions supporting manufacturing are playing a larger and
                                                                                            more visible role as everyone works to comply with government standards designed to protect the
                                                  John                                      public.
                              Richard                                 Pat
                                                 Morris,
                              McGrath                                Murphy
                                                PhD, CPA                                    For the food industry, these are all relatively new obstacles that have already caused a significant
                                                 Associate
                                                 Professor,           Director,             impact on the production and go-to-market strategies of every conventional food and bakery
                                 Partner                            Supply Chain
                                                 Director of                                producer.
                                Lockton         MAcc Program        Leader – C&F
                               Companies        Kansas State        General Mills,
                                                 University             Inc.                But it’s challenges like these that AIBI thrives on. Over the last 100 years, we have adapted how we
                                                                                            train and leverage our technical expertise to match the shifting needs of the food industry. We’ve
                                                  Ramon              Craig                  grown alongside our clients, while building the technical capabilities of the industry leaders of today
                                 John
                                                  Rivera           Slavtcheff
                                Riesch                                                      and tomorrow.
                                                                    Vice President,
                                                 Senior Vice         Global R&D –
                                 Director         President        Biscuits & Snacks
                                                                      Division/US
                                                                                            AIBI helps food and baking companies with almost every aspect of their operation, from research
                              Lesaffre Yeast     Operations,
                               Corporation      North America
                                                                   Biscuit & Bakery         and development, to nutritional guidance and labeling, to quality control and assurance, to good
                                                                         Group
                                                   Bimbo           Campbell Soup
                                                                                            manufacturing practices and food safety certification. Not to mention ensuring all employees are
                                 Chair          Bakeries USA           Company              properly trained along the way. AIBI’s global offerings feature a multi-cultural team of technical
                                                                                            experts in tune with the fast pace of change that faces the food industry.
                               Donald              Nick            Campbell
                              Thriffiley,         Weigel           Williams                 In 2018, the Board of Trustees and AIB International’s President will continue to lead AIBI’s long term
                                 Jr.                                                        growth strategy. It’s simple: continue building meaningful relationships with our clients, provide
                                                Vice President,
                                 Principal         Technical          Director of           relevant services and products at the “speed of the customer,” and upgrade our information systems
                                                   Services           Operations
                                  KAT                                                       to streamline processes and leverage data for the good of the baking, food, and beverage industries.
                              Management         ADM Milling         BCW Food
                               Group, LLC         Company          Products, Inc.
                                                                                            It remains a privilege and honor for me to serve as the Chair of AIB International’s Board of Trustees.

                               Lucy
                              Williams,
                                CFP
                              Vice President                                                John N. Riesch
                              & Trust Officer                                               Chair, AIB International Board of Trustees
                                The Trust
                                Company

10   AIB International 2018                                                                                                                                                                 AIB International 2018   11
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AB Mauri

                                                      Cain Food Industries, Inc.           Lallemand/American yeast Div.

                           ADM Milling Co.

                                                 Consumers Flavoring Extract Co., Inc.
                                                                                                      LeMatic

                       Alpha Baking Company
                                                         Dawn Food Products

     The following                                                                       Lesaffre Yeast corp./Red Star Yeast

 companies salute
                                                         Dunbar Systems Inc.
   the activities of    AMF Bakery Sysytems

  AIB International                                                                             Manildra Group USA

by sponsoring this          Ardent Mills

           section.                              DuPont Nutrition & Health/Danisco

                                                                                         Mother Murphy’s Laboratories, Inc.

                                                         Flowers Foods, Inc.
                        Bay State Milling Co.

                                                          Formost Fuji Corp.
                                                                                                Malt Products Corp.

                       B.C. Williams Companies

                                                               Gemini

                                                                                                      Rotella’s

                              Bedford

                                                         Gonnella Baking Co.                              \

                                                                                                 Siemer Milling Co.
                               Brolite

                                                             Great Plains
                                                                                               Sosland Publishing Co.

                       Bundy Baking Solutions

                                                           J&K Ingredients
                                                                                                 Turano Baking Co.
                            Burford Corp.
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