1. Confidential & Proprietary Copyright © 2007 The Nielsen Company Summerfruit NZ Industry Review

2. Confidential & Proprietary Copyright © 2009 The Nielsen Company Source: ACNielsen Homescan NZ Summer fruit was the third fastest growing Fruit variety in value sales in the year to April 26 th 2009, growing ahead of the Total Fruit category- which means Stone fruit is gaining in market share within the Fruit and Vegetable category.

3. Confidential & Proprietary Copyright © 2009 The Nielsen Company The 08-09 Summerfruit season… …was a season of two halves.

4. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summerfruit - National View Summerfruit performance November 08 - January 09 was stronger than the previous season. More households purchased Summerfruit, bought them more frequently and were willing to pay more each shopping trip. Summerfruit Season (07-08)Summerfruit Season (08-09)

5. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summerfruit - National View However, the 2 nd half of the season, particularly February – March 09, saw weaker sales than the previous year. Average trip spend was up almost $1 - but this reduced Summerfruit buyer numbers. Summerfruit Season (07-08)Summerfruit Season (08-09)

6. Confidential & Proprietary Copyright © 2009 The Nielsen Company Loose Stone Fruit- National View Loose Summerfruit sales were stronger in the first half of the season……. Stone Fruit Season (07-08)Stone Fruit Season (08-09)

7. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Summer Fruit- National View Whereas, Barcoded Summer fruit had a stronger second half of the season. Stone Fruit Season (07-08)Stone Fruit Season (08-09)

8. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summer Fruit Sales by Pack Type- Total New Zealand Pre-packed (Barcoded) Summer Fruit sales may be driving the Supermarket growth- however Loose Stone Fruit sales in Independents are growing the Stone Fruit category +25%+19%+12%+45% +24% +35% +17% +42% +10% +41% +46% -30% Sales ($) Growth Rates Time Period: 26 weeks to 26 April 2009 Source: Nielsen Homescan

9. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Cherries- National View Though buyer numbers remain small- it is easy to see when the Cherry season peaks- December. And demand and sales spiked significantly in the 08-09 season. Cherry Season –(07-08) Cherry Season –(08-09)

10. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Apricots- National View The demand and availability of Prepacked Apricots remains limited- and in the 08- 09 season appears to have been less significant than the previous season Apricot Season- (07-08)Apricot Season- (08-09)

11. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Plums- National View As with Prepacked Apricots, the demand and availability of Prepacked Plums is currently limited. Plums Season- (07-08)Plums Season- (08-09)

12. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Nectarines- National View Of all the Prepacked Summerfruit options, Barcoded Nectarines seems to be the one which has shown the most improvement/growth in the last year- is this linked to availability within the relevant Retail outlets. Nectarines Season- (07-08)Nectarines Season- (08-09)

13. Confidential & Proprietary Copyright © 2009 The Nielsen Company Barcoded Peaches- National View Availability seems to be the clear reason behind the 8 week peak in demand for Prepacked Peaches in 08-09. Peach Season (07-08)Peach Season (08-09)

14. Confidential & Proprietary Copyright © 2009 The Nielsen Company Nationally- 75% of all New Zealand households bought Summer Fruit in the Summer 08/09 Period and that remained stable. Interestingly, less than 70% of Lower North Island New Zealanders purchase Summer Fruit. And Summer Fruit is most popular amongst South Islanders- where 80% of the population purchase Summer Fruit- these regional variations can be seen as opportunities for market development …..

15. Confidential & Proprietary Copyright © 2009 The Nielsen Company The regional demand and purchasing trends for Loose Summer Fruit are similar to that of Total Summer Fruit sales- with low market penetration levels in the Lower North Island and higher market penetration levels in the South Island

16. Confidential & Proprietary Copyright © 2009 The Nielsen Company The regional picture for Barcoded or Prepacked sales of Summer Fruit is quite different from Loose sales- Barcoded Summer fruit is more popular amongst Upper North Island Shoppers. And Upper North Island Shoppers are also the heaviest purchasers spending on average $10.40 on Barcoded Summer fruit during the 08-09 Season.

17. Confidential & Proprietary Copyright © 2009 The Nielsen Company In February…… ……the kids went back to school……

18. Confidential & Proprietary Copyright © 2009 The Nielsen Company And Summer Fruit went head to head with…. The Apple

19. Confidential & Proprietary Copyright © 2009 The Nielsen Company Monthly Household Penetration by Key Fruit Type In February 09- competition got tougher as Apple demand surged….. Citrus Bananas % of NZ Households buyer during month Summerfruit Apples Source: Nielsen Homescan Summerfruit Apples

20. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summer Fruit was the second most popular fruit after Bananas amongst All New Zealanders….New Zealanders spent more money on Stone Fruit than they did on Apples over Summer 2008-09.

21. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summer Fruit is a clear favourite amongst New Zealand Households where there are no children….are Summer Fruit seen as a “grown-ups” fruit….if so…why- is it Price or Taste/Texture that contributes to this……

22. Confidential & Proprietary Copyright © 2009 The Nielsen Company Apples are much preferred to Summer Fruit amongst Households with Children…..

23. Confidential & Proprietary Copyright © 2009 The Nielsen Company Apples are an important part of a Young Family’s Fruit Basket during Summer……

24. Confidential & Proprietary Copyright © 2009 The Nielsen Company As well as the Mixed Family……

25. Confidential & Proprietary Copyright © 2009 The Nielsen Company And Older Family.

26. Confidential & Proprietary Copyright © 2009 The Nielsen Company Average Trip Spend per Month by Fruit Type When compared to the Average Trip spend on other Fruits during the Summer Fruit season- Summer Fruit appears to be significantly more expensive particularly in the second half of the season….. Source: Nielsen Homescan Summer Fruit- Last SeasonSummer Fruit- This Season Stone Fruit Citrus Apples Bananas Average Trip Spend ($)

27. Confidential & Proprietary Copyright © 2009 The Nielsen Company Households with Children account for just over 1/3 of all Loose Fruit sales and all Loose Summer Fruit sales……. % of Total Sales

28. Confidential & Proprietary Copyright © 2009 The Nielsen Company However, Households with Children- particularly Younger Children are larger buyers of Prepacked Fruit and this includes Prepacked Summerfruit. % of Total Sales

29. Confidential & Proprietary Copyright © 2009 The Nielsen Company Nearly 70% of New Zealand Fruit buyer Households are Households without Children- and these Households account for 60% of all Fresh Fruit sales. Within the Summer Fruit category- Households with Children become more important in sales terms, the smaller the Summer Fruit variety- for examples- Households with Children account for a higher proportion of Apricot sales than they account for Nectarine sales.

30. Confidential & Proprietary Copyright © 2009 The Nielsen Company In particular, pre-packed Plums and Apricots are favoured by Households with Children, particularly younger children. Is this because this group prefers a smaller sized fruit?

31. Confidential & Proprietary Copyright © 2009 The Nielsen Company Comparing Trip Spend for Barcoded v Loose Stone Fruit NZers pay more per trip when they buy Loose Summer Fruit than when they buy Barcoded Summer Fruit packs. Impact of 1kg Cherry packs in December Average Spend Per Occasion ($) Source: Nielsen Homescan Barcode Summer Fruit Average $ per Trip Loose Summer Fruit Average $ per Trip

32. Confidential & Proprietary Copyright © 2009 The Nielsen Company Strategies for market growth: Families – Pack smaller size fruits in Family Packs or Value Packs in order to attract households with children. – Can nectarines and peaches take advantage of the same strategy? Similar to Bobby Bananas and Bagged Gala Apples. – Price Bagged/Punneted Plums and Apricots sharply in February/March. – Communicate message of great for lunchbox, great for after school snacks

33. Confidential & Proprietary Copyright © 2009 The Nielsen Company Households without Children account for….. …..62% of all Summer Fruit sales in NZ

34. Confidential & Proprietary Copyright © 2009 The Nielsen Company Fresh Fruit by Household Lifestage It is always a surprise to learn that 60% of Fresh Fruit sales in New Zealand are from Households without Children.

35. Confidential & Proprietary Copyright © 2009 The Nielsen Company An even greater proportion (62%) of Summer Fruit sales are from Households without Children. Though Families are important to some Fruit types….including Apples. Summer FruitApples 62%

36. Confidential & Proprietary Copyright © 2009 The Nielsen Company Pre-Family Households spend 20% of their fruit budget on Summer Fruit during the Summer Fruit season.

37. Confidential & Proprietary Copyright © 2009 The Nielsen Company Summer Fruit is also a firm favourite amongst Empty Nesters- also the second most favourite fruit during the Summer Fruit season

38. Confidential & Proprietary Copyright © 2009 The Nielsen Company Empty Nesters account for ¼ of all pre-packed Fruit Sales and all pre-packed Summer Fruit sales……. % of Total Sales

39. Confidential & Proprietary Copyright © 2009 The Nielsen Company However, Empty Nesters account for significantly higher levels of spend on Loose Fruit and Loose Summer Fruit % of Total Sales

40. Confidential & Proprietary Copyright © 2009 The Nielsen Company Loose Stone Fruit sales do appeal to Higher Income Households, which adds weight to the suggestion that Loose Fruit could be positioned as more premium…..

41. Confidential & Proprietary Copyright © 2009 The Nielsen Company Strategies for market growth: Empty Nesters Demand and consumption for Summer Fruit are highest in December and January when competition from Apples is at its weakest. – Consumers are willing to pay more per trip for Loose Fruit – Empty Nesters are big purchasers of Loose Stone Fruit – Summer Fruit must “own” Summer – Promote quality- taste, juiciness and provenance heavily during this time – Price in-season, high quality Loose Fruit relatively higher than Pre- packaged Fruit