SOURCE: Con-way Inc.

August 12, 2008 10:19 ET

Menlo Worldwide Logistics Expands Relationship With Kettle Foods

Logistics Provider Enters Wisconsin Market to Manage New Warehouse for All-Natural Premium Snack Foods Company

SAN MATEO, CA--(Marketwire - August 12, 2008) - Menlo Worldwide Logistics, the global logistics subsidiary of Con-way Inc. (NYSE: CNW), today announced that it has expanded its relationship with Salem, Ore.-based Kettle Foods to include management of a new 105,000-square-foot dedicated warehouse in Beloit, Wis. Menlo previously provided warehouse management for the premium natural snack foods company at a multi-client facility in Illinois. The new warehouse operation -- 50 percent larger than the previous one -- opened in early August near the company's Beloit manufacturing plant. It is Menlo's first logistics operation in the state of Wisconsin.

"By choosing Menlo, we've been able to take advantage of the flexibility they offer in both multi-client and dedicated warehouse management. As our business grew and circumstances changed, our relationship with Menlo has reflected those changes," said Janell Fehlen, director of operations, Kettle Foods. "Menlo also shares our strong commitment to environmental sustainability, one of the top priorities at Kettle Foods."

Menlo is providing the staff, systems and equipment for the new facility, where activities include receiving, storage, inventory management and outbound distribution. The food grade warehouse is operating under the Lean philosophy of waste elimination and continuous improvement followed at Menlo facilities worldwide. Food grade certification requires meeting American Institute of Baking (AIB) rigorous standards for protection of the safety of the food supply chain.

"We began our relationship with Kettle Foods last year at our multi-client operation in Aurora, Ill., and that solution -- with its flexibility and scalability to expand and contract with a customer's business -- was an excellent fit for them initially," said Gary Kowalski, chief operating officer, Menlo Worldwide Logistics. "Due to Kettle Foods' rapid growth and success in the marketplace, a larger, dedicated facility became necessary and locating it near the company's manufacturing facility allowed them to realize savings in fuel costs. We're now leveraging our years of expertise to serve their unique business needs at the Wisconsin warehouse."

Kettle Foods' Beloit potato chip manufacturing plant was awarded Gold-level certification for Leadership in Energy and Environmental Design (LEED) by the U.S. Green Building Council in 2007, in recognition of the company's efforts to minimize the environmental impact of the facility. Other Kettle Foods initiatives at the location include offsetting 100 percent of electricity use through the purchase of wind power and use of on-site wind turbines, recycling of used cooking oil into biodiesel to fuel some company cars, and filtering and reusing potato wash water.

Menlo supports the environment as part of an enterprise-wide sustainability initiative undertaken by its parent company, Con-way Inc. It joined the Environmental Protection Agency (EPA) SmartWay Transport Partner program aimed at reducing fuel consumption and greenhouse gas emissions last year and is working to educate and promote green initiatives among its contract carriers. Menlo recently received a SmartWay Shipper Index Factor (SIF) of 1.25, the highest score awarded under the program. Today, approximately 85 percent of the company's total network miles are covered by SmartWay-approved carriers.

Founded in 1978, Kettle Foods is a privately owned company committed to producing great-tasting, all-natural snacks with a caring commitment to its employees, craft and community. Its manufacturing sites in Salem, Ore., and Beloit, Wis., produce more than 20 flavors and four varieties of potato chip offerings, five flavors of tortilla chips made with organic corn and a variety of nut butters and trail mixes. Visit www.kettlefoods.com for more information.

About Menlo Worldwide Logistics

Menlo Worldwide Logistics, LLC, is a US$1.4 billion global provider of logistics, transportation management and supply chain services with operations in five continents, including North America. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics' services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain reengineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 16 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo Worldwide Logistics creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide Logistics, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW), a $4.7 billion freight transportation and logistics company. For more information, please visit us on the Web at www.con-way.com.

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