1. In-Store Bakery Savoury Pastry Introduction

2. NEW Savoury Pastries Innovation in the Category
Cheese Twist
Tomato & Cheese Swirl
Summer Vegetable Braid
Spinach & Ricotta Braid

3. With history of success from Europe
Successful product line from our sister company in the U.K.

4. Success in the UK
The Savoury ISB segment is worth £11.8m with strong year on year growth, both in sales (value) and volume
Value & volume and % growth – UK ISB Savouries
+5.9%
+3.6%
+9.3%
+5.9%
52 WE 9/21/ WE 9/20/ Weeks Ending Aug. 18, 2012
Source: Nielsen scantrack to 18th August 2012

5. Savoury ISB is a clear and distinct group to shoppers, highlighting the need to have a strong range available
Fresh sweet bakery
Pre-pack sweet products
Sandwiches
Fresh savoury bakery
Pre-pack meat products
On the go lunch options
Source: UK Leapfrog research December 2011
Crisps/savoury snacks
Chocolate
Bread for sharing

6. Characteristics of each sector
Fresh sweet bakery
Continental, sophisticated associations
Treat connotations
With hot drink
ISB, ‘freshly baked’
‘The ones you serve with tongs’
Pre-pack sweet products
In home consumption (for whole household)
Planned purchase
Relatively long life once in home
Sandwiches
Default purchase for lunch (+ other occasions)
Wide range of options
‘Proper food’; opportunity to be more or less health/nutrition conscious
Fresh savoury bakery
Immediate link with hot serving for many
Relatively filling; comfortably nourishing
Pre-pack meat products
Old fashioned, traditional
Meat based
Very filling
Manufactured, synthetic
Limited appeal for women
On the go lunch options
Filling
Relatively balanced/healthy
Small meal > snack
Crisps/savoury snacks
Light snack
Accompaniment as well as on own
Typically ‘grazing’ when bored
Chocolate
‘Pick me up’ (emotionally and when have ‘munchies’)
Fun
‘Naughty’
Bread for sharing
In home
Family/friends, informal meal occasion
Sophisticated

7. Who buys my brand (index vs total store) – UK Savouries
Success in the UK
Who is the consumer of savoury pastries?
Savouries have mainstream appeal with a slight bias towards the convenience shopper
Tend to eat ‘on the go’ and are impulsive in behavior, with price being less of a concern
Prone to addictive cravings and emotional snacking, often giving into impulse purchases later in the day
We expect the target consumer in the U.S. to match this demographic
Who buys my brand (index vs total store) – UK Savouries
Source: Loyalty card data

8. Introducing Savoury Pastries in the U.S.

9. U.S. Industry Trends: Traditional Dayparts are Blurring
Mini meals are on trend:
Nutritionists recommend smaller meals with greater frequency to promote healthy metabolism
78% of operators have seen an increase in off-peak hour business (2-5pm)
Key portion of afternoon snack choices resemble lunch orders
Breakfast menus/hours are being extended
Savoury Pastries are perfect for mini meals.
Savoury pastries appeal to all dayparts and have the broadest appeal as a snack or as a light meal when paired with a soup or salad.
Sources: Datassentials’ Foodbytes, Restaurant Industry Analysis – NPD Group

10. U.S. Industry Trends: Demand is Rising for Portability
Restaurants and foodservice operations are reporting increased offerings of smaller portable foods
IDDBA “What’s in Store 2012” released these in-store bakery trends
Single serve offerings are growing in popularity
Consumers see mini pastries as a lower calorie option and often buy more than one
Three factors are critical for mini products’ success in the in-store bakery:
Value
Innovation
Point-of -Sale Packaging (create a system to make 1 or 2 portions available)
Among C&U Foodservice Operators who offer grab & go, an average of 25% of their revenue comes from portable foods
Savoury pastries are highly portable and do not need to be refrigerated.
Sources: IDDBA, Fresh Facts® Shopper Insights, NPS Group/CREST OnSite

11. Savoury Pastries Product Profiles

12. Savoury Pastry Cheese Twist
All butter pastry
Twisted and topped with Mozzarella and Swiss cheeses
Flavored with a dash of Dijon mustard
Portable shape for on-the-go eating, to be served hot or ambient
Freezer to oven ease
Bakes in 15 minutes

13. Savoury Pastry Tomato & Cheese Swirl
Rich tomato filling in a soft bread swirl
Topped with Gouda cheese and basil
A unique spin on a mealtime favorite – pizza – but in a unique snacking format
Portable shape for on-the-go eating, to be served hot or ambient
Freezer to oven ease
Bakes in 15 minutes

14. Savoury Pastry Spinach & Ricotta Braid
Delicious pastry wrapped around a filling of spinach, Mascarpone and ricotta cheeses
Topped with finely grated Parmesan cheese
Portable shape for on the move eating.
Best served hot
Freezer to oven easy
Bakes in 20 minutes

15. Savoury Pastry Summer Vegetable Braid
A filling of summer vegetables (zucchini, red and yellow peppers) in a rich tomato sauce
Encased in flaky puff pastry with a herb crumb topping
Portable shape for on-the-go eating, to be served hot or ambient
Freezer to oven easy
Bakes in 25 minutes

16. Savoury Pastry Recap
Portable shapes make our savouries perfect for eating on-the-move.
Great as hot snacks and also delicious ambient. They do not need to be kept warm, eliminating hot cabinet costs.
Our savouries can be served as a mini meal, enabling you to maximize sales and profits.
Short bake times for convenience and quick turnaround time.
Versatile products – they’re great as a soup accompaniment or even as bruschetta.

17. Savoury Pastry Execution in Store
More learnings from the UK:
Secondary placement of Savoury Pastries is crucial in driving impulse purchases, particularly for ‘busy workers’
Decision regarding sweet versus savoury is usually made outside of the store, however, it is possible to encourage impulse purchasing
Category requires prominence within ISB as well as other locations to disrupt shopping mission and tempt them to buy (e.g. display as entering larger supermarkets, by checkouts, etc.)
Some shoppers visit an outlet looking for it to provide ideas for purchase, but won’t browse the whole store
‘ Sometimes I am looking for something as a bit of a change from the usual sandwich, but I haven’t got much time so I will not wander all over the place’
Source: UK Leapfrog research December 2011

18. Frozen Unit Weight (oz)
Summary & Pricing
The Savoury ISB segment is worth £11.8m in the market and posting strong growth
Fresh Savoury ISB is a clear and distinct group to shoppers, highlighting the need to have a strong range available
Savoury ISB appeals to snacking and lunch missions in store, however, placement alongside the substitution set is key for the lunch occasion as shoppers have limited time to walk the store
Secondary placement of Savoury ISB is crucial in driving impulse purchasing outside of the bakery category, particularly for ‘busy workers’
Savouries is an area in the US and fits with US eating trends
Savoury
Pastries
Item Number
Frozen Unit Weight (oz)
Case Ct
Case Price
Price per Piece
Cheese Twist
151342
3.2 50 $
$0.00
Tomato & Cheese Swirl
151344
4.0 35
Spinach & Ricotta Braid
151343
4.2 36
Summer Vegetable Braid
201341 40
Prices reflect delivered cost
All items are bulk packed
Order lead time is 7-10 days for repeat order; 6 weeks for first time orders