1. Apple Juice Nate Wolfe | Bo Renner

2. Category Snapshot TOTAL APPLE JUICE (JC,DRK-CAN,BTL) OZ. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 218226265220253261242 Small Scale Families Small HHs with Older Children 6+ 12610311715911584113 Younger Bustling Families Large HHs with Children (6+), HOH <40 249220236173241216221 Older Bustling Families Large HHs with Children (6+), HOH 40+ 210197177160166145177 Young Transitionals Any size HHs, No Children, < 35 77716468668772 Independent Singles 1 person HHs, No Children, 35-64 44314548393040 Senior Singles 1 person HHs, No Children, 65+ 5140313829 34 Established Couples 2+ person HHs, No Children, 35-54 73667698715872 Empty Nest Couples 2+ person HHs, No Children, 55-64 76706186696168 Senior Couples 2+ person HHs, No Children, 65+ 65675576685763 Total 1031091021059789100

3. Demographic Variables Musselman'sJuicy JuiceLanger'sMinute MaidPrivate Label Race of Head of Household% VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex White54.5%7959.7%8660.1%8765.1%9461.3%89 Black15.0%12512.9%10815.9%13311.0%9213.1%109 Hispanic22.9%18520.4%16415.3%12316.4%13219.0%154 Asian4.9%1154.8%1115.0%1175.7%1324.3%100 Other2.7%1262.3%1073.8%1731.9%872.3%105 Number of Persons 1 Person12.5%465.8%219.4%359.6%369.6%35 2 Persons22.7%7016.4%5121.3%6618.5%5720.9%65 3 Persons18.7%11622.9%14226.8%16622.9%14219.8%122 4 Persons22.6%17127.1%20520.0%15222.6%17125.2%191 5+ Persons23.5%21127.8%25022.5%20226.4%23824.5%220 Household Income Under $10,0005.5%704.9%6213.3%1685.3%664.8%60 $10,000 - $19,9996.5%569.9%8512.1%1045.7%4910.4%90 $20,000 - $29,9998.8%7811.4%1019.7%856.5%579.9%87 $30,000 - $39,9998.5%8110.4%999.5%908.0%769.2%87 $40,000 - $49,9999.8%1058.0%8710.0%1088.7%9310.3%111 $50,000 - $74,99920.1%11122.1%12222.7%12520.9%11522.0%121 $75,000 - $99,99913.7%11712.9%1099.6%8214.3%12213.1%112 $100,000 - $149,99914.7%12812.5%1098.1%7117.9%15611.9%105 $150,000 or More12.4%1547.9%984.9%6113.0%1618.4%104

4. Category Role Theory: Families, and in particular, upper-middle class, with children tend to be the most consistent consumers of apple juice. National Sales: $562 million – middle range

5. Category Role

6. Why Apple Juice? High number of different product offerings at multiple different locations. High competition among private label brands against traditional, well-established brands. Influx of various types of different juices to compete against the industry all together. E.g. Strawberry- Pineapple Juice, Kiwi-Melon Juice, etc.

7. Stores Audited Walmart – MLK Walmart – Mall Walmart Neighborhood – Weddington Harps – College Marvins Walgreens – W. MLK Walgreens – Township Walgreens – College Flash Mart – MLK Kum & Go - MLK

8. Retailers Audited Walmart on College had the largest assortment with 33% of SKUs available. Locations most popular among families carried the largest selection.

9. The Suppliers Coca Cola – Minute Maid Mott’s Nestle – Juicy Juice Musselman’s Walmart – Great Value Old Orchard Brands

10. The Suppliers Old Orchard – most dominant with six SKU’s at five different stores. Juicy Juice & Pepsi’s Oceanspray – very limited selection and higher price.

11. Gross Margin by Store and Manufacturer

12. Determining Gross Margins Minute Maid, on average, has the highest cost among major manufacturers, with $.10/ounce. Always Save, on average, had the lowest cost with $.015/ounce. The estimated private label cost per ounce is approximately $.02/ounce. There were slight adjustments made on differentiating between the major manufacturer and private label price per unit.

13. Circular Trade Area – Fayetteville Demography Harps 124Marvins 220Wal Mart 359Wal Mart 144 % HHsHHs Index% HHsHHs Index% HHsHHs Index% HHsHHs Index Race of Head of Household White80.2%11683.2%12176.8%11177.8%113 Black7.0%586.1%514.9%417.9%66 Hispanic4.8%384.0%3211.7%945.1%41 Asian4.6%1073.1%743.7%875.3%123 Other3.5%1543.5%1562.9%1284.0%178 Number of Persons 1 Person45.2%16742.3%15635.8%13248.0%177 2 Persons32.0%9933.1%10231.3%9731.1%96 3 Persons12.6%7812.8%7914.3%8911.4%70 4 Persons6.4%488.1%6210.1%776.3%48 5+ Persons3.8%343.7%338.4%763.2%29 Household Income Under $10,00022.5%29320.5%26812.5%16325.9%339 $10,000 - $19,99921.4%19120.1%18014.6%13123.4%209 $20,000 - $29,99912.8%11812.9%11813.3%12214.2%130 $30,000 - $39,99912.2%12112.0%11916.0%15811.9%118 $40,000 - $49,9997.1%797.9%888.0%897.5%84 $50,000 - $74,9999.6%539.2%5211.9%668.1%45 $75,000 - $99,9995.3%445.4%467.7%653.2%27 $100,000 - $149,9996.6%547.1%589.8%803.9%32 $150,000 or More2.6%294.8%536.3%701.9%21

14. Circular Trade Area – Fayetteville Age of Head of Household Age 18 - 2423.0%54721.4%50812.3%29127.4%651 Age 25 - 3431.6%21025.3%16725.0%16629.7%197 Age 35 - 4415.8%9114.3%8218.0%10413.8%80 Age 45 - 5410.6%5312.7%6314.8%7410.2%51 Age 55 - 649.9%5113.1%6813.8%719.8%51 Age 65 - 745.0%387.5%578.1%615.1%39 Age 75 or More4.0%375.8%548.1%753.9%37 Age and Presence of Children Age < 65.9%805.1%698.0%1085.2%71 Age 6 - 177.8%429.6%5215.8%858.1%44 Age < 6 & 6 - 174.6%704.0%616.6%1013.0%46 No Children81.7%12181.3%12069.6%10383.6%124 Housing Tenure Own25.2%3930.6%4742.3%6517.4%27 Rent74.8%21469.4%19857.7%16582.6%236 Education of Head of Household Not a High School Graduate7.0%548.7%6713.3%1029.1%70 High School Graduate16.0%6317.4%6821.4%8418.3%72 Some College39.1%13633.1%11529.0%10140.5%141 College Graduate21.3%11222.4%11820.8%10918.0%95 Post College Degree16.6%12118.4%13415.5%11214.1%103

16. 52 WEEKS ENDING 12/29/07 ITEM $ (000)DOLLAR SHAREITEM BUYERS (000)ITEM PENETRATION ITEM $ PER ITEM BUYER ITEM TRIPS PER ITEM BUYER ITEM $ PER ITEM TRIP ITEM UNITS PER ITEM TRIP N=RAW BUYERSPURCHASE CYCLE (IN ELAPSED DAYS) % REPEAT BUYERS (% 2+ TIME BUYERS) LOYALTY (SHARE OF $ REQ.) % ITEM $ ON DEAL% DOLLARS WITH MANUFACTURER COUPON JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. NA WEST SOUTH CENTRAL NA LANGERS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 10,818.71.82,345.22.04.61.62.91.61,151.056.525.721.139.61.9 WEST SOUTH CENTRAL 787.81.4229.71.83.41.42.51.7118.059.819.016.339.33.2 MARTINELLI'S GOLD MEDAL - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 13,726.52.2786.70.717.52.18.21.2374.041.835.958.63.30.0 WEST SOUTH CENTRAL NA MINUTE MAID - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 27,839.54.54,383.83.86.41.83.51.42,136.049.028.830.720.53.4 WEST SOUTH CENTRAL 2,883.65.1503.83.95.71.83.11.2272.049.425.934.214.04.7 MOTT'S - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 86,828.314.111,391.09.87.62.33.41.55,606.049.039.438.226.42.4 WEST SOUTH CENTRAL 5,315.79.3996.67.75.31.92.91.4574.047.337.032.117.42.7 MOTT'S ORGANICS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 659.60.1137.90.14.81.72.81.482.042.727.531.26.86.6 WEST SOUTH CENTRAL NA MUSSELMAN'S - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 2,366.60.4479.60.44.91.63.01.4301.047.921.623.030.70.1 WEST SOUTH CENTRAL NA NESTLE JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 43,445.17.15,811.55.07.52.23.41.42,753.048.140.237.016.23.8 WEST SOUTH CENTRAL 2,400.34.2419.03.25.71.93.01.4220.045.241.532.115.25.9 OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 20,272.33.34,384.33.84.61.92.41.62,454.050.332.224.129.70.9 WEST SOUTH CENTRAL 2,294.34.0506.63.94.52.1 1.5279.042.335.828.519.00.7 OLD ORCHARD ORGANICS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 951.00.2138.10.16.92.23.21.285.031.033.323.717.50.6 WEST SOUTH CENTRAL NA

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18. Private Label Share “Good losers? Snacks and confectionary Cosmetics Baby food Alcoholic beverages “Success!” Paper, plastic, and wipes Refrigerated food Frozen food Shelf stable juices Bad winners? – no one but ourselves to blame. Pet food Healthcare Diapers and feminine hygiene “Bad stuff” – why? Home care Nonalcoholic beverages Personal care Price gap with manufacturer brands High>30% Low<30% Private label share Low <12%High > 12%

19. Questions?