Supplemental 511 Foodservice Market Update

Our Company delivers exceptional value and quality products to our trading partners. With extensive distribution and expandable capacity, our core products are readily available.

July 5, 2023

Supplemental 511 Foodservice Market Update West Coast Port Workers Strike

To Our Valued Customers:

As reported earlier today by CNBC and other news organizations, the British Columbia Maritime Employers Association says that negotiations with the International Longshore & Warehouse Union Canada’s Longshore Division are currently paused, pending further discussion with federal mediators. Shipping industry sources that advise the 511 Foodservice and parent company AmerCareRoyal inform us that two of the four key elements of these negotiations have been settled, wages and working conditions, but two major areas of disagreement remain having to do with automation and port facility maintenance. Port workers at Canada’s west coast ports walked out on June 30 and no further servicing of vessels has occurred since, stranding an estimated $19 billion of trade goods offshore, a number that will increase as the strike lengthens. Canad a’s Labor Minister Seamus O’Regan has called for both parties to return to the negotiating table; precedent set in past Canadian port labor disputes suggests that the federal government may stay out of negotiations a few more days, perhaps becoming directly involved if negotiations remain stalled after the strike reaches 10 days. 511 Foodservice and parent company AmerCareRoyal are closely monitoring this situation and developing action plans to route product into Canada via eastern coastal and inland ports, and taping into the network of ACR warehouses located regionally across the United States. The 511 and ACR teams are 100% committed to keeping the supplies you rely on flowing to your business with the least possible interruption - stay in touch with your Sales Representative to help us understand your business’s individual needs as this situation evolves and we will get through this together! We will provide updates as changes to the situation as warranted. Media news services including the Canadian Broadcasting Corporation (https://www.cbc.ca) and CNBC (https://www.cnbc.com) are prominent sources for late- breaking updates on the strike.

Sincerely,

The 511 Foodservice Team

7275 Fifth line, Milton, Ontario L9T 2X8 | Canada T. 905.829.1006, F. 905.855.7505, 1.877.511.3564

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