California Transparency Act

The California Transparency in Supply Chains Act of 2010, California Civil Code § 1714.43 (the “Act”), requires retail and manufacturing companies to disclose what efforts they have taken to ensure their supply chains are free from slavery and human trafficking.

California Transparency in Supply Chains Act of 2010

The California Transparency in Supply Chains Act of 2010, California Civil Code § 1714.43 (the “Act”), requires retail and manufacturing companies to disclose what efforts they have taken to ensure their supply chains are free from slavery and human trafficking. Hormel Foods Corporation d/b/a CytoSport, Inc. makes the following disclosures in accordance with the Act:

Verification of Product Supply Chains: Hormel Foods Corporation is committed to providing high-quality, safe products through responsible business practices. To that end, Hormel Foods Corporation has developed Supplier Responsibility Principles http://2010csr.hormelfoods.com/wp-content/uploads/2011/08/Supplier-Responsibility-Principles.FINAL_.08.30.2011.pdf to outline its expectations for suppliers, a copy of which is provided to key suppliers. As part of Hormel Foods Corporation’s Supplier Responsibility Principles, suppliers must be in compliance with all applicable laws and regulations relating to working conditions. Hormel Foods Corporation does not tolerate child labor nor forced or involuntary labor, including bonded, indentured and involuntary prison labor, and will not work with suppliers that do not adhere to these policies. Verification of suppliers is not conducted by a third party.

Auditing of Suppliers: Hormel Foods Corporation does review its supply chain partners to assess compliance with both applicable laws and Hormel Foods Corporation Supplier Responsibility Principles. We do not use third parties to conduct such reviews. Hormel Foods Corporation does not routinely conduct independent, unannounced audits of suppliers but may do so if we have cause to believe they are not in compliance.

Certification By Suppliers: As noted above, Hormel Foods Corporation expects all of its suppliers to adhere to Hormel Foods Corporation Supplier Responsibility Principles. Hormel Foods Corporation’s Purchase Order Terms and conditions further require all suppliers to comply with all applicable laws, including those relating to slavery and human trafficking.

Accountability Standards and Procedures: If we determine that a supplier is not in compliance with our standards or any applicable laws, including those relating to slavery and human trafficking, we will provide such supplier with the opportunity to remedy any potential non-compliance through the implementation of corrective action. Should the supplier continue to fail to meet our standards, we will initiate our supplier discontinuation process.

Training: Hormel Foods Corporation Supplier Responsibility Principles are incorporated into all training of employees and managers who have responsibility for supply chain management and procurement.