KEHE_GoodnessReport_2023 | Page 34


Goodness is like a seed — it needs fertile ground and regular tending to grow and thrive . For KeHE , the soil is our relationships with suppliers , retailers , and employees , and the watering and tending are our hard work and commitment .
Making the conditions right for goodness to grow means making accurate forecasts about future growing conditions . KeHE President & CEO Deb Conklin shares her views and projections for our future .
The Supply Chain
We ’ re seeing global supply chain disruptions begin to moderate , and KeHE employees are committed to continuously improving our supply chains .
Deb says , “ We have some of the smartest people in the industry working for this company , dedicated to making the entire supply chain better .”
Higher inflation helps boost our profitability since it makes our inventory more valuable . So , while lower inflation this year may be good for our purchasing power , it increases the importance of growing case sales .
Deb explains , “ We ’ re not going to see that same level of lift this year . Our math shows we will have sales headwinds as price inflation moderates .”
The Economy
Strong economic tailwinds have helped businesses over the last few years , but FY24 is not likely to be as strong . Part of our fiduciary responsibility as owners is to acknowledge , plan for , and act on the conditions that we anticipate will impact us in the future .
Deb and our senior leadership remain confident that KeHE ’ s relationships will help us weather challenging conditions ahead .