United States, Brazil, China Variations in Purchasing Patterns

2 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Overview Trends in Consumer Choice Environment Focus on United States : modern trade, largely stagnant Focus on Brazil and China: modern and traditional growth Advertising Social media data Bringing it all together: an example 2

3 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Distinguish shoppers around the world 87% of the population lives in urban areas Over 12 million kirana shops 160 cities with population over a million 18.4 million mobile money users 97% have purchased over the Internet

4 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Consider modern vs. traditional trade Modern TradeTraditional Trade 80% of Developed countries 40,000+ SKUs 30,000+ sq ft $43 per trip twice a week Self-service model 80% of global population <2,000 SKUs <500 sq ft $3 per trip daily Retailers are gatekeepers VS

5 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Average monthly spending on food, grocery & personal care vs. fresh food in 2012 Europe Average 298 Euro 51% 41% 40% 46% 43% 45% 64% 50% 43% Belgium, Italy, Spain and France are the 4 countries with the highest expenses on food. Fresh food represents between 40% and 50% in almost all European countries; 64% in Romania

6 Copyright © 2012 The Nielsen Company. Confidential and proprietary. United States: Quantity Shift Analysis: Non-Alcoholic Beverages 2010 Growth 2011 Growth Source: Nielsen ScanTrack; Note: 2009 refers to year ending May 2010, 2011 refers to year ending May 2012;

7 Copyright © 2012 The Nielsen Company. Confidential and proprietary. United States: Carbonated Soft Drinks

8 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Brazil and China: Quantity Shift Analysis: Non- Alcoholic Beverages 2010 Growth 2011 Growth Brazil: China: Source: Nielsen RMS data; Note: 2009 refers to year ending March 31 st 2010, 2011 refers to year ending March 31 st 2012;

9 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Brazil - Light vs. Regular: Non-Alcoholic Beverages Brazil: Source: Nielsen RMS data; Note: 2011 refers to year ending March 31 st 2012;

10 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Purchase Volume Distribution: Non-Alcoholic Beverages, 2011 Brazil China Brazil and China Channel Analysis, Non-Alcoholic Beverages Juice Functional Drinks Tea CSD’s Source: Nielsen RMS data; Note: 2011 refers to year ending March 31 st 2012

11 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Quantity Shift Analysis: Food and Dairy, Total US 2010 Growth 2011 Growth Consumption of non-chocolate candy increased over the past year Volume growth in all food and dairy categories - with the exception of butter - slowed last year from their respective 2010 rates After experiencing positive 2010 volume growth chocolate and chips/crisps both declined over the past year Source: Nielsen ScanTrack; Note: 2009 refers to year ending May 2010, 2011 refers to year ending May 2012;

12 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Quantity Shift Analysis: Food and Dairy, Total Brazil and China Chocolate and chips/crisps experienced notable growth each of the past two years in both Brazil and China While sales of non-chocolate candy continued to grow last year in China, sales slowed in Brazil Source: Nielsen RMS data; Note: 2009 refers to year ending March 31 st 2010, 2011 refers to year ending March 31 st 2012; 2010 Growth 2011 Growth

13 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Share of Light vs. Regular: Dairy China: Brazil: US: Source: Nielsen RMS data; Note: 2011 refers to year ending March 31 st 2012

14 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Sum of USD Discounted (000,000's) Year January to December RegionCountry Name (Q1,Q2) % change 2012 vs 2011 NORTH AMERICAUSA ASIA PACCHINA LATIN AMERICABRAZIL Advertising Spend: Dairy Purchasing Changes: China

15 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Dietary: Eating (21%) Food (18%) Diet (11%) Fat (7%) Water (7%) Calories (4%) Recipes (3%) Metabolic: Weight (12%) Exercise (7%) “Fit” (4%) Physical: Body (12%) Skin (5%) Hair (3%) Family: Family (7%) Children (5%) Kids (5%) Baby (4%) Change: Help (14%) Plan (5%) Natural: Natural (7%) Social Media: US associations with “healthy” focus largely on diet and exercise “ Rright now my head is spinning over food and food choices. The food we eat can make us sick or healthy. It is so expensive and so much work to eat all real food all the time. We cannot afford it and we don't have the time to cook it. I hate cooking... I grew up having packaged brownies and mountain dew for breakfast. On a regular basis. "healthy" breakfasts were eggos covered in freezer jam or lucky charms... Comparatively, I'm doing awesome. We don't eat much processed food and what we do is low in preservatives. Sometimes we eat organic... This is hard for people raised on terrible foods to figure out. It is really expensive. And it can be very crazy-making. I do the best I can but we have a long way to ideal. Right now I'm lucky if I remember to feed myself...” Gentlechristianmothers.com, 28 Feb 2012

16 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Interaction Between Cigarette Sales and Advertising