FRESH SALAD REGULAR ANALYSIS MAT TO 29/11/2014

Copyright ©2012 The Nielsen Company. Confidential and proprietary Market Overview 2. Demographics 3. Retail Health Situation by State Agenda This analysis is part of a vegetable consumer purchase data project funded by HIA using the vegetable levy and matched funds from the Australian Government. This report captures only Fresh Vegetables and excludes processed vegetables (e.g. Fresh Sweet Corn excluding Canned Sweet Corn; Fresh Beans excluding Canned Beans).

Copyright ©2013 The Nielsen Company. Confidential and proprietary. 3 Data Source – Nielsen Homescan Market – Total Australia – States of Australia – Retailers Analysis Measure – Value – Volume Periods – Last Year : 52 weeks To 30/11/2013 – This Year :52 weeks To 29/11/2014 ANALYSIS PARAMETERS RESEARCH METHODOLOGY NIELSEN HOMESCAN A Panel of 10,000 Australian households Demographically and geographically representative Households electronically record their household purchases of all take-home grocery goods (fresh and packaged)

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 HIGHLIGHTS RECOMMENDATIONS Despite consistently strong performance of Fresh Salad, there is room to regain the lost buyers amongst Start-up Families and understand potential reasons for lapsing – e.g. Expensive? Suitability for young 0-6 year old kids? Further capitalise on the momentum of Fresh Salads through innovative salad leaf combinations (e.g. rising popularity of kale) and continue delivering on convenience and pre-packed freshness. Cross promote and co-merchandise with related products like salad dressings or herb mixes during spring-summer season. Fresh Salad represents 2.3% of volume and 7.5% of value market share. It’s buyer base has increased significantly this year, with an increase in average spend on Fresh Salad as compared to last year. Established Couples and Bustling Families are the important buyers for Fresh Salad; together, they account for 42% of volume share while representing 38% of buyers. They have witnessed an increase in both the number of Fresh Salad buyers and frequency of purchase. Smaller households (1-2 members) are the key buyers for Fresh Salad, accounting for more than half of volume sales. Fresh Salad witnessed growth in terms of both value and volume sales, driven by good performance across all retailers. 69% of Woolworths shoppers who buy Fresh Salad, prefer to purchase it at Woolworths stores, whereas this conversion rate is almost 67% for Coles. VIC and NSW, accounting for more than half of national spend on Fresh Salad, have witnessed an increase in consumption as well as buyer base.

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 Copyright © 2014 The Nielsen Company. Confidential and proprietary. Market Overview Fresh Salad

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 6 Share of Market Volume Over Total Vegetables Australia Share of Market Value Over Total Vegetables Australia Source: Nielsen Homescan Fresh Salad increased its volume market share to 2.3% compared to last year. However, its value market share dropped down to 7.5% this year.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 How many Households buy annually? How much (Kg) do they buy per year? How much ($) do they spend per year? Fresh Salad added 125,927 additional households to their buyer base this year with the buyers spending almost $1.20 more than they did last year. Source: Nielsen Homescan This Year Last year

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 How much ($) do they spend per occasion? How much (Kg) do they buy per occasion? How often do they buy annually? Fresh Salad buyers are shopping more frequently with an increase in their $ spend and volume purchase per trip. Source: Nielsen Homescan This Year Last year

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 Source: Nielsen Homescan The recent spring-summer season shows promising gains in buying households, with most months from September to November 2014 exhibiting higher penetration and steady consumption. Kg

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 Source: Nielsen Homescan Average dollar expenditure per month this spring-summer season is generally higher than the same period.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 Source: Nielsen Homescan The rise in the $ spend on Fresh Salad in every trip as compared to last year, is the main driver for the increase in monthly average spend.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 Demographics Fresh Salad

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 13 Copyright © 2014 The Nielsen Company. Confidential and proprietary. LIFESTAGE SENIOR COUPLES | 2 or more adults 60+ (17.6% of population) ESTABLISHED COUPLES | 2 or more adults (22.3% of population) INDEPENDENT SINGLES | 1 adult >35 with no children (20.8% of population) YOUNG TRANSITIONALS | Adults <35 with no children (9.3% of population) BUSTLING FAMILIES | Oldest Child (13.9% of population) SMALL SCALE FAMILIES | Oldest Child 6-12 (9.6% of population) START UP FAMILIES | Oldest Child <6 (6.6% of population) HOUSEHOLD SIZE 1-2 MEMBER HOUSEHOLDS (58.7% of population) 3 MEMBER HOUSEHOLDS (15.9% of population) 4 MEMBER HOUSEHOLDS (15.6% of population) 5+ MEMBER HOUSEHOLDS (9.8% of population) View your consumers according to…

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 14 Source: Nielsen Homescan Distribution of Buyers Australia Distribution of Volume Australia Established Couples and Bustling Families are important buyers of Fresh Salad as they contribute more volume sales than their share of buyer base. Senior Couples have increased their volume share this year.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 How many Households buy annually? Bustling Families & Established Couples have added Fresh Salad buyers to the buyer base along with a rise in their shopping trips. How often do they buy annually? How much (Kg) do they buy per occasion? This Year Last year Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 Source: Nielsen Homescan Distribution of Buyers Australia Distribution of Volume Australia Smaller households (1-2 members) are important for Fresh Salad as they account for more than half of the volume sales.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 How many Households buy annually? All household sizes have seen an increase in the number of buying households with Smaller households (1-2 Members) adding the most buyers this year. How often do they buy annually? How much (Kg) do they buy per occasion? This Year Last year Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 18 Copyright © 2014 The Nielsen Company. Confidential and proprietary. Retail Health Situation by state Fresh Salad

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 Share by Retailers This year vs. Last Year T. Fresh Salad Sales vs. Last year This year vs. Last year T. Fresh Salad Other Supermarkets Non Supermarkets Volume Value Source: Nielsen Homescan Fresh Salad grew by 7% in value & 8% in volume sales, driven by consistent sales performance in all the retailers.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 Other Supermarkets Non Supermarkets Drivers of Account Growth & Decline Year to 29/11/2014 vs Year Ago (YA) Value growth in Aldi is driven by significant rise in the number of buying households whereas in Coles it is driven by increase in spend per trip. Frequency is the main growth driver for Woolworths.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 Source: Nielsen Homescan Account Shopper Conversion Year to 29/11/2014 | Woolworths (WW) 69% of Woolworths shoppers are purchasing Fresh Salad on their shopping trips to Woolworths. A relatively high conversion rate compared to most comparable vegetables.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 Source: Nielsen Homescan Account Shopper Conversion Year to 29/11/2014 | Coles Coles is able to convert almost 67% of their shoppers to buy Fresh Salad while on their shopping trip to Coles.

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 SA + NT (8%) WA (10%) VIC (23%) NSW (32%) QLD (21%) WA (11%) Average KG per Buyer Penetration This year vs. Last year ( ) State share of Fresh Salad $ sales Is there a particular state driving the category performance? A rise in consumption was witnessed in VIC, NSW and WA. Number of buying households increased across all states except SA+NT this year with VIC recruiting the most additional households. Source: Nielsen Homescan

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