Lettuce Report Brand Health & Demographics Source: Nielsen Homescan data until 21st of Jan 2012 Nielsen Scantrack data (National Woolworths) until 15th Jan 2012 1

Lettuce….. Over 86% of Australian Households purchased Lettuce during the last year, spending $18.9 in average and buying about 1.6 kilos of the commodity during the same period. Increase in the average spend per Household in Lettuce to $18.9 was a result of a rise in the amount spend per shopping trip, which increased from $2.1 to $2.3 Looking at Woolworths scanning information, Lettuce volume increased by 3.3%, while value did by 7.5% as prices increased by around 50 cents during last MAT While Lettuce value growth can be traced mostly from Existing buyers, most switching to Lettuce came from Potatoes, Mushrooms and Other Vegetables.

Lettuce….. As with Total Vegetables, Established Couples, Senior Couples and Bustling Families account for the majority of Lettuce value sales; while there is potential to increase spend at Star Up Families and Established Couples. While Woolworths, Coles and Green Grocers lead Lettuce trade, Green Grocers and ALDI were the only retailers - channel that managed to increase their importance during last year Buyers have increased their total spend and spend per occasion for all Channel/Retailers except for IGA, where spend per shopping trip remained at similar level.

Homescan Overview

Store-Level Scanning Sales Household Panel Information This report leverage two different types of information: 1) Retail Measurement Data (Scanning Sales) 2) Household Panel Information Complementary data sources, not substitutes for one another Address separate sets of business issues Store-Level Scanning Sales Household Panel Information Database name Volume & Share Tracking Promotion Execution & Effectiveness Price Sensitivity Account Performance Components of Sales Brand Loyalty & Repeat Demographics Buyer Analyses Cross Purchasing Switching/Source of Volume

How does Household Panel Information (Homescan) work? Panel member buys products from any retail outlet and takes them home At home they scan the purchases via a barcode scanner - supplementing data from a barcode book for shopping trip info and non barcoded items Start with a panel that is statistically representative of Australian households Purchase data is automatically modemed back to Nielsen via the telephone line Information is supplied via Advisor i-sights to clients to evaluate consumer and retail trends. Nielsen processes the data together with stringent QC checking 6

Key Measures

Source: Nielsen l Homescan Australia Lettuce penetration has Increased by 1.6%, while Lettuce buyers are spending $18.9 per year and purchasing about 1.6 kilos of the commodity per household. This chart compares Lettuce household reach (penetration) against other vegetables. Blue represents year ago while yellow represent current year This chart show the total average household volume purchase across various vegetable commodities. This chart show the total average household spend across various vegetable commodities. Source: Nielsen l Homescan Australia 8

Lettuce buyers are purchasing the commodity less often than a year ago, however this was compensated by a slight increase in the amount spend during each shopping trip to $2.3 This chart compares how frequently Lettuce is purchased each year compared to other vegetable commodities Households are spending approximately $2.30 each time they purchase Lettuce Households are spending in total, approximately $18.9 per year in Lettuce 1 1.5 9

Source: Nielsen l Homescan Australia The total volume decrease was a result of a slight drop in the shopping frequency, while volume per occasion maintained its previous level. Source: Nielsen l Homescan Australia 10

Average household spend on Vegetables decreased in the latest time period QLD Floods Cyclone Yasi This chart shows that the average household increased their spend (red line) on Vegetables in the periods during & after the natural disasters.

Average household spend decreased ,however penetration increased in the latest time period compared to year ago During peak seasons, average household spend decreased (red line) as the number of households increased (blue bars) Lettuce peak season January - August

Green Line: how many times consumers buy it Variation in $AWOP are linked to changes in the level of spend per shopping occasion Green Line: how many times consumers buy it Yellow Line: How much they spend each time. For January, this index reached: $2.0 Lettuce peak season January - August

Looking at Woolworths information, Lettuce volume increased by 3 Looking at Woolworths information, Lettuce volume increased by 3.3%, while value did by 7.5% as prices increased by 56 cents during last MAT

Looking at trended Woolworths information, the affects of Queensland natural disasters can be seen however, prices have dropped at levels below than a year ago while volume is at 2 year high. Blue Line: Price per Kg. $11.87 in latest period vs. $14.03 last year. Yellow Bar: Kgs sold by Woolworths during each period.

Category Expansion/Contraction While Lettuce value growth can be traced mostly from Existing buyers, most switching to Lettuce came from Potatoes, Mushrooms and Other Vegetables. Most of the value growth (3%), came from existing Lettuce buyers Category Expansion/Contraction Those buyers that switched to Lettuce, used to buy Potatoes, Mushrooms, and Other Vegetables

Demographics

While from a demographic perspective overall performance was similar to previous year, there are opportunities to increase spend for Start Up Families and Established Couples. The green bar represents the percent of each demographic purchasing in latest period with the red bar representing the percentage last year

From a Household income perspective, all three income segments increased their spend in the commodity. High Income households have increased their importance in value at expense of Low income during the last year

1-2 member households have had the most significant contribution to value sales when compared to other groups within Lettuce, however penetration in this group could be improved. 1-2 member household size is the most important demographic as they account for 52.5% of sales.

Share of Trade

While WW, Coles and Green Grocers lead Lettuce value trade, Green Grocers and ALDI have managed to increase their importance during last year This pie chart shows how is the Lettuce value distribution among different retailers/channels of trade This show the actual sales values percentage growth/decline behind the share of trade changes

While Green Grocers and ALDI increased their share, WW decline was a result of an important drop in the penetration for this commodity 23

Buyers have increased their total spend and spend per occasion for all Channel/Retailers except for IGA, where spend per shopping trip remained the same 1 1.5 24 24

Glossary

Terms Penetration – The proportion of households purchasing a product in the specified period expressed as a percentage of all households. Average Weight of Purchase (AWOP) – The average volume/value/units of a product bought across all buyers of that product in the specified period. Occasions Per Buyer – The average no. of times each buyer purchases the specified product in a specified period. A product/date/shop combination, eg. a household purchasing 2 identical products on a shopping trip to Woolworths constitutes a single purchase occasion. Amount Per Occasion – Average value or units purchased on each purchase occasion. QTR – Quarter year; rolling 13 weeks. MAT – Moving annual total; a rolling yearly total which accumulates 52 weeks of data. PP – Prior Period YA – Year Ago.

Lifestage Demographic Definitions Young Transitionals Adult households (no children <=17) Head of household <35 Small scale families Households with oldest child 6-11 years Start-up families Households with young children only, oldest child < 6 Bustling families Households with oldest child 12-17 years Senior Couples Two (2) or more adults (No children <=17) Head of household 60 or over Independent singles One (1) person adult household (No children <=17) Head of household >=35 Established Couples Head of household 35-59

Lifestages Distribution Senior Young Couples17% Transitionals 11% Start Up Families 6% Established Households Small Scale 19% Families 10% Families are obviously a key group but the older households are also key. Young Transitionals (Any Size HHs, No Children, <35) Hopping from uni classrooms to first jobs to “just married” this group is characterised by an abundance of freedom. With the majority between 25-34 years in white collar professions, You will often find them with money to burn in the dance clubs, bars, shopping on the Internet or at local gyms. They enjoy physically active lifestyles, dining out and professional sporting events. This segment tends to live in rented apartment buildings and the internet is part of everyday life Start-Up Families (HHs with Young Children Only < 6) Characterised by households with 1-2 children and a mortgage to boot, Nappies, baby food and shelves overflowing with toys fill the home of the Start-Up Family. Entering a life of nappy changes and late night feedings, these consumers are starting their families. Dependent children and their impact on the lives of these ‘new’ parents sets these consumers apart from the other life stages. Small Scale Families (HHs with Oldest Child 6-11) Unlike the other life stages with children, the small size of these families often allows the adults to strike a balance between their children and pursuing their own interests. Whether they are single parent families with one or two children or two parent families with one child – time, convenience items, are of increasing importance as many of them work to pay the bills and pay off their mortgage. Bustling Families (HHs with Children (Oldest 12+)) – A mix of younger and older families with the eldest child in their teens skewed toward households of 5 more people. These consumers’ lives are hives of activity. With most Heads of Households over 40 years of age, You’ll likely find these parents racing to pick up one child from soccer practice and then running to pick up another from school. With a higher prevalence of internet access than any other group and 3 or more TV sets running at any one time these households are embracing the information age. The children in these households are dependent on their parents for many things. At the peak of their earning power, these households work hard to afford their children the latest trend; which often means both parents are working. Independent Singles (1 Person HHs, No Children, 35+) Predominantly female households, split between older and younger consumers, most consumers get to this life stage either through divorce or from never having been married. 79% of this group over 50 years of age, paid off their mortgage, and typically have a lower than average annual income. In addition, this has the lowest levels of internet access than any group (39%). Often found at their local church playing bingo, reading a book or dining out, these consumers are living the life of retirees with most of this group bringing in less than $24,000 annually. With the 21% who are at the younger end of their life, you will find these consumers living in apartments, are often working in professional white collar established careers dining out with friends or working late in the office. Established Couples (2+ Person HHs, No Children, 35 – 59) This group is a mix of empty nesters, those who have not had children or those who still have adult children (>17) at home. Many are dual income families reaching their peak earning potential with above average household incomes split between those who own and are still mortgaging their home. They tend to live in large houses and can afford the often three TV’s, internet access and all the mod cons our busy lifestyles have become accustom to. Senior Couples (2+ Person HHs, No Children, 60+) Companionship, rather than age, most influences the behaviour of this group. You might find the husband reading the latest issue of Reader’s Digest as his wife knits in her chair. They are quite active, but not as active as Established Households. In addition, Senior Couples are more likely to still live in the family home, a larger house left over from family life with children. At 86%, this life stage has the highest level of home ownership. Bustling Families 15% Independent Singles 22% MAT 24/Dec/2011 28 28

Scanning guide enhancements were introduced in August 2009, providing greater depth of information…

How to read a Source of Volume Chart New/Lost Category Buyers Households that purchased the category in one period but not the other and the focus brand was included in the category purchases. Existing brand buyers The Focus Brand experienced gains/losses from households who increased/decreased their purchases of the focus brand New/Lost Brand Buyers Gains or Losses within the Focus Brands by Households who added/omitted the focus brand to their category purchases. Switching Includes households who shifted their focus brand purchases from/to alternative category items.

Appendix

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