May 2013 ETHNIC OPPORTUNITY – IF ONLY I KNEW… CANADIAN GROCER CONFERENCE

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 SOMETHING’S IN THE AIR… or

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 3 “I FOUND OUT…” 1) What’s happening? 4) Homescan Panel (Canada) “IF ONLY I KNEW…” 2) How ethnic shops 3) Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 1) What’s happening? 2) How ethnic shops 4) Homescan Panel (Canada) 3) Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 VISIBLE MINORITIES WILL DOUBLE WHILE CAUCASIANS WILL ONLY GROW 10% 1 Source: Statistics Canada 2010 Medium Growth (Reference scenario), 2011 Immigration & Ethno-cultural Diversity in Canada VM 6.3 Mil Caucasians 26.5 Mil 2011 VM 12.8 Mil Caucasians 29.2 Mil More than Double! 10% Growth 2031 What’s happening?

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 6 RECENT IMMIGRANTS MOSTLY FROM ASIA 2 Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada What’s happening? Top 10 Countries New Immigrants (2006 to 2011)

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 7 South Asian 3.6M Chinese 2.7M Black 1.8M Arab 930K Population (2006) = Forecasted size in 2031 Filipino 1.0M Latam 733K ~Growth Rate by 2031 SE Asian 449K West Asian 523K Korean 407K Other 489K Japanese 142K GROWTH RATES ARE STAGGERING… The Big M Source: Statistics Canada, What’s happening?

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 8 NEW IMMIGRANTS LIKE TO RESIDE IN FOUR PROVINCES 4 43% 5% 2% 12% 16% 19% % of new immigrants ( ) settling into each province What’s happening? 1% Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 9 VM WILL BRING AN ADDITIONAL $5 BIL TO CDN MANUFACTURERS BY 2017 Source: Statistics Canada, 2010; Homescan data, % of Cdn Pop 21% of Cdn Pop $29.5B$34.2B ~800k increase $4.7B incremental What’s happening? 5

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 10 1) What’s happening? 2) How ethnic shops 4) Homescan Panel (Canada) 3) Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 11 2X as likely to buy food for today’s meal 5X as likely to do quick trips Shoppers in Asia are … How ethnic shops

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 12 ASIAN CONSUMERS COMPARTMENTALIZE THEIR PURCHASES How ethnic shops 1) Ethnic Store 2) Traditional Banner 90% Of Chinese Cdns Source: PanelViews Omnibus October 2012 Base: n= % Of S.Asian Cdns Manufacturers: Listing decisions – Presence in ethnic banners Retailers: Capture more $ into your banner “How many stores do you typically visit to find all/most of the items on your shopping list on a routine planned shopping trip?” Asian Shopping 2 or more stores

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 13 ASIAN CONSUMERS VIEW GROCERY SHOPPING AS FUN, FAMILY TIME How ethnic shops More likely to have entire family (3 generations) on shopping expeditions 56% Asian shoppers actively seek a demo in-store before buying Treat as weekend Excursion Multiple decision makers | Fun, interactive store environment | Sampling Organics

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 14 ASIAN COUNTRIES HAVE GREATER BELIEF THAT ORGANIC FOODS EQUALS INCREASED SAFETY IN FOOD Source: Nielsen Global Online Survey Q How ethnic shops Organic strategy

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 15 1) What’s happening? 2) How ethnic shops 4) Homescan Panel (Canada) 3) Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 16 LEVERAGING OUR GLOBAL NETWORK, WE GAINED A BETTER UNDERSTANDING OF HIGH GROWTH CATEGORIES Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 17 TOP 50 HIGHEST GROWTH CATEGORIES Global Insights * India - Top 26 categories Source: Nielsen Canada, China, India, Philippines China

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 18 Global Insights CHINA’S HIGHEST GROWTH CATEGORIES China Growth (%) Functional Drink40% Asia Traditional Drink32% Beauty Products ChinaGrowth (%) Toner42% Facial Mask40% Skin Moisturizer27% Facial Cleanser26% Confectionery ChinaGrowth (%) Loose Pack Confectionery26% Confectionary chocolate24% Full brand confectionery candy22% Beverages India Source: Nielsen China

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 19 Global Insights INDIA’S HIGHEST GROWTH CATEGORIES HABA IndiaGrowth (%) Hair oils23% Skin creams22% Hair dyes21% Toilet soaps21% Sanitary napkins20% Food Products India Growth (%) Milk foods27% Salty snacks27% Palm olein refined oil20% Beverages20% Philippines Source: Nielsen India

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 20 Global Insights PHILIPPINES’ HIGHEST GROWTH CATEGORIES Coffee PhilippinesGrowth (%) Instant Coffee Mix50% Roasted Coffee34% RTD- Coffee14% Milk Products PhilippinesGrowth (%) Yogurt21% Cultured Milk16% PhilippinesGrowth (%) Liquid Soap17% Hair Treatment15% HABA Source: Nielsen Philippines

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 21 1) What’s happening? 2) How ethnic shops 4) Homescan Panel (Canada) 3) Global Insights

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 22 WE KNOW WHAT CHINESE AND SOUTH ASIAN CANADIANS ARE PURCHASING… Homescan Panel What did you buy? Was it on sale? Where did you buy it? Chinese Over-index

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 23 CHINESE OVER INDEX ON DRIED GRAINS, REFRIGERATED DRINKS, NOODLES, & BEAUTY PRODUCTS Homescan Panel Source: Nielsen Ethnic Action Package (Syndicated) 2X Manufacturers: Product innovation / expansion? Retailers: What are you stocking in your stores? Vegetables / Grains Dried Pasta/Noodles/ Instant light lunches Refrigerated Drinks 1.5X Face care Skin care preparation Interdental products 1.5X ($/buyer index) Deals

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 24 A HIGHER % OF CHINESE SPEND ARE ON DEALS – 36% COMPARED TO 25% FOR GEN POP Homescan Panel Source: Nielsen Homescan Data (Jan - Dec 2012) Deal sensitivity to your category? Blades / Razors Dry Bread (breadsticks, crispbread, croutons, etc.) Gum Where?

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 25 CHINESE LOVE ETHNIC GROCERS & WAREHOUSE CLUBS Homescan Panel Source: Nielsen Ethnic Action Package (Syndicated) 2X More likely to shop at 3X More likely to shop at ‘Remaining Grocery’ Manufacturers: Where are your products listed? Retailers: Where are your customers shopping? S Asians

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 26 SOUTH ASIANS OVER INDEX ON PREPARED FOODS, GRAINS, & MILK PRODUCTS Homescan Panel Source: Nielsen Ethnic Action Package (Syndicated) 2.5X Manufacturers: Product innovation / expansion? Retailers: What are you stocking in your stores? All Other Prepared Foods (e.g. specialty eastern food, pancake, batter mixes) Vegetables / Grains Dried 1.9X Cooking Oils & Spray Milk Yogurt 1.5X ($/buyer index) Where

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 27 SOUTH ASIANS LOVE DISCOUNT BANNERS AND DRUG STORES Homescan Panel Source: Nielsen Ethnic Action Package (Syndicated) 3X More likely to shop at 2X More likely to shop at Manufacturers: Where are your products listed? Retailers: Where are your customers shopping?

5 KEY THINGS TO THINK ABOUT…

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 29 VISIBLE MINORITIES ARE CHANGING THE CANADIAN LANDSCAPE… Source: Statistic Canada, 2010 % of Population that is a Visible Minority 1 in 20 1 in 6 1 in Key Things Led by S. Asians & Chinese $5 B/yr Opportunity by 2017

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 30 THE WAY THEY SHOP IS DIFFERENT FROM MAINSTREAM CONSUMERS… 2 5 Key Things 1) Ethnic Store 2) Traditional Banner

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 31 INTERNATIONAL TRENDS CAN GIVE US AN INDICATION ABOUT AREAS OF GROWTH 3 5 Key Things Beauty Confectionery Beverages HABA Milk foods Salty snacks Coffee HABA Milk Products

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 32 UNDERSTANDING CHINESE & SOUTH ASIAN CANADIANS IS AN ONGOING PROCESS 4 5 Key Things

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 33 THE OPPORTUNITY IS IN YOUR HANDS… DEVELOP AN ETHNIC STRATEGY NOW! 5 5 Key Things TRACK – Do you track performance on ethnic initiatives? KNOW - Do you know this consumer? TEST – Have you piloted a new initiative? WANT – Is your company aligned? SIZE - Have you quantified the opportunity?

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 34 ONLY THE TIP OF THE ICEBERG! Bernice Cheung Ethnic Practice Area Lead (905) | (416) Thank you!