A Message From Our CEO

To our customers,

As we move into the spring season, a range of global conditions continues to influence the foodservice landscape. Shifting agricultural cycles, evolving trade dynamics, and broader geopolitical factors are shaping both near‑term considerations and longer‑term planning. While these conditions introduce variability, we remain focused on navigating the environment thoughtfully and maintaining continuity across our business.

With regard to global trade, in February, the U.S. Supreme Court ruled the current IEEPA tariffs illegal. In response, the Trump Administration implemented Section 122 tariffs on all imports (exclusions include USMCA-compliant goods from Canada and Mexico). These tariffs have been enacted under an executive authority that allows for the imposition of temporary tariffs on all imports for up to 150 days; as a result, unless ratified by Congress, they are set to expire on July 24^th, 2026. We will continue to monitor the shifting tariff landscape, anticipating further action by the current administration after the expiration of the Section 122 tariffs.

The war in Iran continues to severely impact the Persian Gulf. Many carriers have suspended services through or near the Strait of Hormuz, resulting in thousands of containers and several vessels sitting idle. In addition to sailing delays and equipment imbalances, carriers have implemented emergency fuel surcharges that will be updated monthly as the price of oil continues to fluctuate. While this hasn't caused any significant disruptions to our import operations, we do expect slower ocean transit times and higher shipping costs for the foreseeable future.

In the crop landscape, olive harvests have been impacted by recent storms, creating near-term uncertainty within the olive oil market. We continue to closely monitor weather developments, utilizing spot contracting when appropriate.

Challenging conditions related to crop health are impacting Kalamata olive production this season, leading to earlier harvesting in some regions. This has resulted in some natural variation in color and appearance. We continue to work closely with our suppliers to source the best available olives and maintain expected quality standards.

In the peppercorns category, producers are working through recovery efforts in the wake of a hurricane affecting the Tamatave region of Madagascar. There have been temporary disruptions to green peppercorn production and local port activity with no immediate supply impacts.

Through ongoing market and supply challenges, our teams remain focused on proactive planning and supply continuity. We appreciate your continued partnership and look forward to supporting you in the months ahead.

Sincerely,

Keith Dougherty

CEO of Roland Foods