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A CASE STUDY UNIVERSITY OF MARY For years, Newman and his long-time friend, author A.E Hotchner, filled old wine bottles with his homemade dressing for Christmas gifts. The Newman family would set off Christmas caroling with bottles of their homemade salad dressing to give to friends and neighbors. They were overwhelmed with cries for more each successive year One day, Newman and Hotchner were inspired to market the dressing, reasoning that what was good enough for their pals was good enough for the public. As a result, Newmans Own was founded and in its first year, Paul Newman gave away approximately $1,000,000 to charity. In 1982, Newmans Own began with Mr. Newmans famous Oil & Vinegar Salad Dressing. Newmans Own now offers an expanded line of salad dressings, pasta sauces, salsas, popcorn, lemonade and steak sauce. The companys products have achieved a stellar place on supermarket shelves with a range of distinctive, high-quality foods. Based on Paul Newmans belief that eating

well is the best revenge, the Newmans Own line of products reflects his goal to create nutritious, all-natural versions of his favorite foods. Newman attributes the extraordinary success of his food company to two policies, from which he never deviates. First, he insists on top-quality products without the addition of artificial ingredients or preservatives. Second, he gives away all profits, after taxes, from the sale of the products to educational and charitable organizations, both in the United States and foreign countries where his products are sold. Newmans Own is now distributed in all major retail grocery chains in the United States. Since its inception, Newmans Own has also increased its international distribution to include Canada, Australia, Iceland, England, Germany, France, Israel and Japan. Thousands of charities have received donations from Paul Newman as a result of the sale of Newmans Own products worldwide. A project that is very dear to Newmans heart is The Hole In

The Wall Gang Camp, which he founded with Ursula Gwynne and A.E Hotchner in 1986 with funds from Newmans Own, in addition to other generous donors. Paul Newman once quipped, "From salad dressings all blessings flow." His unique flair in successfully combining business and philanthropy has proven to be right on target, endorsed by satisfied customers and appreciated by charities throughout the world. Paul Newman, as sole owner of Newmans Own®, donated all his profits and royalties after taxes for educational and charitable purposes. Paul Newman has given over $400 million to thousands of charities since 1982. Products include: Two Thousand Island Dressing Twice the islands of any other brand. Red Wine Vinegar & Olive Oil Dressing A rich, full-bodied vinaigrette! Parmesiano Italiano Dressing A dreamy, creamy Italian! Tomato & Roasted Garlic Sauce A simple sauce thats simply scrumptious. In addition, the Newman website contains other products and recipes for

consumers. In 1993, Newman’s daughter Nell, introduced a line of Newman’s Own Organic products that include pastas, lemonade, pretzels, popcorn, chocolate bars and pet food. The company’s success was such that as of 2001, it became its own company, separating from the Newman’s Own corporation. As a privately held company, no financial information was available. Newman’s Own Organic pays a licensing fee to Newman’s Own as part of the arrangement. In 2003, Newman’s Own made another announcement: NEWMANS OWN® AND McDONALDS® ANNOUNCE EXCLUSIVE ALLIANCE Two Premium Brands Come Together in Delicious Salad Venture NEW YORK (March 10, 2003) At a special event in New York City today, Paul Newman, President and Founder of Newmans Own, Inc., philanthropist and actor, joined McDonalds executives to announce an exclusive alliance. This agreement features Newmans Own all-natural salad dressings served with McDonalds new Premium Salads in restaurants nationwide starting March 24,

2003, with select restaurants adding the new salads and dressings to their menus between March 10th-24th. "We are delighted that McDonalds has chosen Newmans Own to be the exclusive supplier of salad dressings for their premium salads - the only all-natural dressings in the quick service restaurant industry," said Paul Newman. "McDonalds tosses the greens we toss in the dressings - and what a delicious reciprocal trade agreement More profits for us and -VOILA --charity will be the great beneficiary." "Todays announcement introducing McDonalds Premium Salads and Newmans Own salad dressings demonstrates our commitment to offering customers new and compelling menu options," said Mike Roberts, President of McDonalds USA. "We invite all customers to visit McDonalds and taste these delicious, new wholesome products." "McDonalds is very proud to work with Newmans Own and Paul Newman, who have and through this alliance, will continue to do so

much to help others in need," added Roberts. McDonalds new Premium Salads will premier as an exceptional new addition to its nationwide menu - offering customers three wholesome, high quality salad entrée options with warm breast of chicken -- either grilled or crispy -- garden fresh vegetables, flavorful cheeses and Newmans Own all-natural salad dressings. More specifically, the salad and dressing offerings include: • California Cobb Salad: premium mixed greens tossed with succulent grape tomatoes, shaved carrots, crumbled blue cheese, hickory-smoked bacon and chopped egg. Offered with Newmans Own California Cobb Dressing: a Creamy Vinaigrette - hearty, creamy full-bodied dressing with a blend of cheeses, hints of sweet pepper and savory herbs. • Caesar Salad: premium mixed greens with succulent grape tomatoes, shaved carrots, grated Parmesan cheese, and savory garlic croutons. Offered with Newmans Own Creamy Caesar Dressing - Restaurant Style - a rich creamy Caesar

dressing with a perfect blend of olive oil, cheeses and garlic. • Bacon Ranch Salad: premium mixed greens tossed with succulent grape tomatoes, shaved carrots, jack and cheddar cheese with hickory-smoked bacon. Offered with Newmans Own Ranch Dressing - Restaurant Style - a creamy buttermilk dressing made with chives and parsley for a delicious savory flavor. • Also available is a new (no-meat) side salad with premium mixed greens, succulent grape tomatoes and shaved carrots. An additional salad dressing option is Newmans Own Light Balsamic Vinaigrette - a delicious, premium vinaigrette with the distinct, full flavor of aged balsamic vinegar and 50 percent less fat and 50 percent fewer calories than Newmans Own regular balsamic dressing. Newmans Own exclusive alliance with McDonalds includes the offering of the four different types of salad dressings in convenient dressing packets. Nutritional information for Newmans Own all-natural salad dressings is printed on the packaging.

McDonalds new Premium Salads nutritional information, as with all standard products, is available online at www.mcdonaldscom and via McDonalds toll-free customer phone number (1800-244-6227) A new advertising campaign created by DDB Chicago to support the launch of McDonalds new Premium Salads with Newmans Own salad dressings will begin April 21 nationwide. Both Newmans Own and McDonalds come to this alliance with a history of helping those in need. McDonalds, as a Newmans Own Customer, is enabling Paul Newman to donate additional profits to charity through this arrangement. Paul Newman donates all profits, after taxes, from the sale of Newmans Own products to educational and charitable purposes. To date, Mr Newman has donated more than $125 million to thousands of charities.” In April 2002, McDonalds released its first-ever Social Responsibility Report, which provides McDonalds performance and progress in four categories: community, environment, people and economic impact. Just

one example is McDonalds support of Ronald McDonald House Charities (RMHC ) and its more than 217 Ronald McDonald Houses around the world that provide a "home away from home" for families with seriously ill children. Since 1984, RMHC and its global network of local chapters have provided more than $400 million for childrens programs. Newmans Own is an allnatural line of food products created by Paul Newman Paul Newman donates all his profits, after taxes, from the sale of these products for educational and charitable purposes. To date, McDonalds is the worlds leading foodservice retailer, with more than 30,000 restaurants serving over 46 million people. Approximately 80 percent of McDonalds U.S restaurants are owned and operated by independent local businessmen and women While Newman’s Own is still a privately held company, and started as a joke among friend of the family, sales of the products have exceeded $200 million, including a one year sales growth of 74.3% last year

They employ 18 people in their operations That number has not increased in the last 3 years. The top competitor to the company is General Mills, with sales in excess of $11 billion. In 2001, General Mills purchased Pillsbury, which doubled that company’s size. Some say Newman was exploiting his celebrity status, while others say he is simply providing a quality product. Newman was still the sole owner and decision maker for the company, until his death in 2008. His daughter Nell continues to run the company