Frontier Co-op 2022 Biennial CSR Report

OUR CUSTOMERS Wholesale

OUR EMPLOYEES Pay and Benefits

The vast majority of our wholesale customers are member-owners of Frontier Co-op. Our products go through several channels to reach our wholesale customers. About 91% of Frontier Co-op products reach retail stores and businesses via full-line distributors with their own delivery systems. We distribute the rest (plus a variety of products from other manufacturers) directly to our wholesale customers through the distribution part of our business using FedEx or other carriers. Of our thousands of direct whole-sale customers, most are members of Frontier Co-op — members account for 96% of our wholesale sales. These members include natural food stores, restaurants and bakeries, health food and herb stores, co-ops, buying clubs, schools and training centers, all of which use our products. Retail Our non-member, direct-to-consumer business is roughly 8% of our total company sales, but it provides increased product access to consumers and an opportunity to interact with the people who use our products. This gives us insight into product selection, quality, ingredients, packaging and more. We currently maintain four retail websites. We also provide a store locator online to provide consumers with information about purchasing our products at members’ stores.

Our pay is structured to keep us competitive in our community and is reviewed regularly against published state and county data. Our minimum starting wage at Frontier Co-op is $15.06/hr. Pay raises are merit-based. All employees are eligible for an annual bonus based on meeting specified company-wide performance goals. We offer a wide variety of benefits which are also reviewed regularly against the available data to ensure they remain competitive for our community. Full benefits are offered to all full-time and part- time employees. 99% percent of employees qualify for benefits, which include health insurance and dental insurance; fully paid life, disability and vision insurance; a medical and dependent care flexible spending plan; 401(k) savings plan with 4% company match; paid time off; and a number of other self-administered programs, such as tuition reimbursement, interest-free computer purchase loans and adoption assistance. A Health Savings Account is an option for those with a high-deductible health plan. Total health benefits costs covered by Frontier Co-op average 75%. Health and Wellness We want our employees to be healthy so they will not only feel and perform better at work, but have more satisfying lives outside of work. We encourage healthy life practices in a variety of ways. Employees have free access to a gym and fitness area during the workweek and on weekends at our Norway facility. A variety of organized classes and activities take place in the gym throughout the year. There’s also a mile-long walking trail around our 22-acre prairie. Our wellness program, launched in 2010, is aimed at supporting employees’ healthy lifestyles. A variety of health-improvement options, such as individual coaching and online tools, are available through our wellness partner. There is also the opportunity to work with a professional to develop individual improvement plans. Reduced insurance premiums are a reward for those who meet health improvement goals. Spouses are encouraged to participate in the program as well.

Frontier Co-op Memberships and Organizations

• American Herbal Products Association (AHPA) • American Spice Trade Association (ASTA) • Organic Trade Association (OTA) • Iowa Sustainable Business Forum • Sustainable Packaging Coalition • GreenBlue Institute • Polymer and Food Protection Consortium (PFPC) • American Botanical Council • National Cooperative Business Association (NCBA) • Overseas Cooperative Development Council (OCDC)

Safety The main safety metric we track is the OSHA Incident Rate (OIR), which measures the accident rate as a percentage per 100 employees. (OIR is calculated by multiplying the number of injuries by 200,000 and dividing that by the total hours worked.) We also track the total number of OSHA incidents.

Safety Data

FY21

FY22

OIR

7.03

4.18

Recordables

34

23

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