1. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 1 June 2015 Driving Growth of Authentic Italian in the U.S.

2. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 2 Project Scope

3. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 3 What is the ITA’s Custom Segmentation? Italian Sounding Italian Tasting Mainstream 1.“ITALIAN TASTING” This designation represents vendors and/or brands that are manufactured in Italy, “Authentic”, AND those that are owned by an Italian based company, but also manufactured in the U.S., (“Italian Manufactured in USA”). 2."ITALIAN SOUNDING“ This designation represents vendors and/or brands that are manufactured in the U.S. or elsewhere and utilize Italian names, symbols, colors, and/or words. Total Sales $12.9B Total Sales $1.2B Total Sales $41.2B Growth Rate 25.2% Growth Rate -2.20% Growth Rate 21.8%

4. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 4 Power Category Distillation Process Project Scope Power Categories Dry Pasta RFG Pasta FZ Pasta Spaghetti/Italian Sauces Tomato Products Refrigerated Pasta Sauces Natural Cheeses Coffee Water Wine Olive Oils Vinegars Salad Dressings 40 Categories Analyzed Italian Segmentation present PASTA SAUCE CHEESE OILS/VINEGARS/DRESSING BEVERAGES

5. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 5 Power Categories Pasta Sauce Cheese Oils/Vinegars/Dressing Beverages

6. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 6 “Power” Categories…The Premise behind them Total Sales $52.8B Italian Tasting $12.9B Italian Tasting products have increased $2.6B over 5 years. Italian Tasting products growth rate is 25.2% over 5 years, outpacing mainstream growth of 22.3% Over 290 basis points in growth!

7. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 7 Pastas Dry Pastas Frozen Pastas Refrigerated Pastas

8. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 8 Penetration - Purchase Trends & Demographics 88.0% of consumers buy Dry Pasta. 55.0% of US Households buy “Italian Tasting” Pasta. Average trip size for “Italian Tasting” RFG Pasta is up 32.8% to $7.21. Repeat buyers of “Italian Tasting” RFG Pasta jumped from 28.9 to 36.7 The “Italian Tasting” segment indexes high towards Younger households with kids Incomes greater than $70K Urban households

9. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 9 Total Pasta Total Pasta has been flat as a category with slight decreases over the past 2 years. Italian Tasting products have driven 71% of category growth while only comprising 24.9% of category sales.

10. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 10 Pasta-Composition Dry pasta, overall is flat, while the Italian Tasting segment has grown $70M! in 5 years Italian Tasting products drove 90% of category growth, but only comprised 31.0% of sales DRY FRZ RFG Over the past 3 years, $50M has left the dry pasta space. However, refrigerated pasta has grown $30M Italian Tasting products drove 66% of category growth, but only comprised 12.5% of sales Frozen pasta has grown $16M in past 5 years However, there is NO Italian Tasting products in this category, a great opportunity for manufacturers!

11. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 11 Total Pasta Performance Across Key Regions 10.7% 4.4 12.6% 5.8% 9.6% 10.5% 32.6% 14.0% Top 3 Regions: 1.Northeast 2.Great Lakes 3.California Eastern US has the top 3 regions for total pasta dollars share.

12. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 12 Sauces Spaghetti/Italian Sauces Tomato Products Refrigerated Pasta Sauces

13. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 13 Sauces-Purchase Trends & Demographics RFG “Italian Tasting” sauces increased repeat buyers from 25.3% to 27.3%. “Italian Tasting” sauces appeal to upper income & larger households with kids. Repeat buyers purchasing “Italian Tasting” Spaghetti Sauce decreased by 3.4 days, meaning consumers are purchasing more frequently! 81.3% of consumers purchase Spaghetti/Italian Sauce and 78.2% of consumers purchase Tomato Products. Consumers purchasing “Italian Tasting” products is on the rise across all 3 categories.

14. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 14 Total Sauce Italian Tasting Sauce saw the highest dollar growth over the last 5 years growing $24.9M from $122.0M to $146.9M Italian Tasting products have driven 18% of category growth while only comprising 3.6% of category sales

15. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 15 Sauces-Composition RFG Sauce Gravy Marinade Mixes Spaghetti Italian Sauce Tomato Products Italian Tasting’s positive sales growth has outpaced the overall category which is declining Italian Tasting products has driven over 100% of growth, but only comprised 4.6% of sales Italian Tasting sales growth has outpaced overall category performance Italian Tasting products drove over 7.2% of growth, but only comprised 3.2% of sales The Italian Tasting introduction over the last 2 years is helping to build refrigerated sauces Italian Tasting only entered the category 3 years ago, but drove 22% of growth

16. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 16 Total Sauce - Performance Across Key Regions 8.3% 2.7% 10.0% 5.3% 13.2% 8.7% 42.2% 9.7% Top 3 Regions: 1.Northeast 2.Southeast 3.California Northeast has massive share at 42.2% of sales

17. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 17 Natural Cheeses Fixed Weight Random Weight

18. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 18 Cheeses - Purchase Trends & Demographics 95% of consumers purchase Natural Cheeses. Buy Rate – Average Dollars per Buyer is $117.07, up 6.6%. Repeat buyers purchasing “Italian Tasting” cheeses decreased by 3 days, meaning consumers are purchasing more frequently! Natural Cheeses indexes to young families raising teens with incomes greater than $70K. The “Italian Tasting” cheese segment also appeals to larger, urban households.

19. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 19 Natural Cheeses Total Cheese is growing at 21.6%, while Italian Tasting is outpacing at 42.03% Italian Tasting products represent 19.7% of growth while only comprising 11.8% of category sales

20. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 20 Natural Cheeses-Composition Fixed Wt. Random Wt. Mirroring the category, Italian Tasting Fixed Weight outpaces the category growth at 43.5%. Italian Tasting products drove 21.5% of growth, but comprised 14.2% of sales. Random Weight Cheeses grew 8.6% overall, but the Italian Tasting segment did not contribute to this. Decreases in the Italian Tasting segment, which could be a good opportunity for manufacturers.

21. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 21 Natural Cheese - Performance Across Key Regions 13% 8% 10% 7% 14.5% 12.8% 16.3% 15.2% Top 3 Regions: 1.Northeast 2.Great Lakes 3.Southeast Cheese is more evenly spread and distributed throughout each US region.

22. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 22 Olive Oils, Vinegars & Dressings Olive Oils Vinegars Salad Dressings

23. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 23 Olive Oils, Vinegars, & Dressings– Purchase Trends and Demographics The Italian segments skew towards Older boomers & retirees Smaller households Incomes greater than $70K. 90.5% of consumers purchase Oils 59.6% of consumers purchase Vinegars The average dollars per trip for “Italian Tasting” vinegars is 45% higher than all vinegars

24. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 24 Total Olive Oils, Vinegars, & Dressings Although the overall category growth is 9%, Italian Tasting Sales is not contributing to this growth Italian Tasting products comprise only 4.7% of category sales, but have not contributed to any growth within the category itself. Of all the power categories, this grouping is the weakest performer.

25. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 25 Olive Oils, Vinegar, Dressing - Composition Oils Dressing Vinegar Italian Tasting Vinegars have grown each year for the past 5 Italian Tasting Vinegars comprise 8.5% of the sales, but growth lags category Italian Tasting Dressings although have grown over 30% since 2010, but off a small base An opportunity exists to leverage the growth of the “Italian Tasting” segment seen in other categories Italian Tasting Oils, predominantly olive, have remained flat over the past few years Italian Tasting Oils comprised 7.0% of sales, & have not contributed to growth within the category

26. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 26 Beverages Wines Waters Coffees

27. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 27 Water, Coffee, Wine – Product Purchase & Demographics Consumers of “Italian Tasting”, waters & coffees appeal to: Families with kids Consumers of “Italian Tasting”, wines appeal to: Older Boomers and Seniors Consumers of all “Italian Tasting” skew towards households with incomes greater than $70K 88.4% of consumers buy Water 78.1% of consumers buy Coffee 48.1% of consumers buy Wine Consumers purchasing “Italian Tasting” products is on the rise across all 3 categories. Consumers willing to spend 70% more for “Italian Tasting” waters

28. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 28 Total Water, Coffee, Wine Italian Tasting is the fastest growing segment and has been increasing year-over- year from $445.6MM in 2010 to $525.1 in 2014 Italian Tasting products have driven 71% of category growth while only comprising 22% of category sales

29. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 29 Water, Coffee, Wine - Composition Overall Water sales grew 20.8% over 5 years, but “Italian Tasting” grew 47.5% Waters are a $9B category! Italian Tasting products are only 1.1% of sales. A great opportunity for other manufacturers Water Wine Coffee Italian Tasting Coffee sales rebounded in 2014, growing 23% compared to the category at 4.3% Coffees are a $8.7B category! Italian Tasting products are only.4% of sales. Another great opportunity for manufacturers The wine category has shown strong growth year over year with Italian Tasting growth keeping pace with the category Italian Tasting Wine sales grew $64.3M over 5 years

30. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 30 Domande e Risposte

31. Copyright © 2015 Information Resources, Inc. (IRI). Confidential and Proprietary. 31 Grazie!