1. Food Bites Canned Protein Annual Market Quantification August 2011

2. Setting the scene 2 This report covers canned meat and fish. The canned meat is primarily red meat, sometimes processed. Much of this meat is prepared and canned locally, with very little imported. Most of the canned red meat is canned locally, while canned ham is imported. Canned fish comprises mainly of pilchards, tuna and sardines. Some of the pilchards are caught locally, while all tuna is imported. Among other factors, local fish supplies are determined by quotas. Local production does not meet demands and the market relies heavily on imports. Pilchards are generally used more by lower LSM consumers, while tuna consumption is seen predominantly by higher LSM consumers.

3. 2010 Category Share 3

4. 2010 Category Distribution 4

5. Annual Growth Rates 5

6. Good growth for canned protein in 2010 6 Canned protein saw a fair level of volatility in annual rates of growth and decline historically. However, the category managed to maintain consistent growth from 2007 onwards. The 2010 category performance represents a continuation of this growth trend, with a increase of 11.9% recorded for the year. Though there was only limited movement amongst local players during the base year, imports and exports saw good growth as new laws and players began affecting the market. This served to grow market volumes. In addition, canned protein usually offers a cost-effective alternative to meat during the less bullish economic times. Given the recession and the subsequent constraints placed on consumer budgets, canned protein volumes benefited from increased demand. The growth seen for 2010 is seen within both canned meat and canned fish. While canned fish is larger in volume terms, the growth within the two categories collectively bolstered market volumes. The future outlook for canned protein overall remains conservative but positive with limited growth anticipated for the short term.

7. Food Bites Canned Protein For more information, contact: Jan Wegelin Research Manager Tel: (011) 615 7000 Mobile: 082 938 0744 www.bmi.co.za