1. FRESH SALAD REGULAR ANALYSIS MAT TO 21/02/2015

2. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 1. 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).

3. 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 22/02/2014 – This Year :52 weeks To 21/02/2015 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)

4. 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 & Senior Couples and understand potential reasons for lapsing – e.g. Expensive? Suitability for young 0-6 year old kids? Further capitalise on the momentum of Fresh Salad through innovative salad leaf combinations (e.g. rising popularity of kale or Asian leafy vegetables) and continue delivering on convenience and pre-packed freshness. Cross promote and co-merchandise with related products like salad dressings or herb mixes to gain exposure and drive consumption. Fresh Salad represents 2.3% of volume and 7.5% of value market share. Its buyer base has increased this year, with an rise in average annual spend 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. They are the only household group to add Fresh Salad buying households this year. Fresh Salad witnessed growth in terms of both value and volume sales, driven majorly by good performance in Coles, IGA and ALDI. 68% of Woolworths shoppers who buy Fresh Salad, prefer to purchase it at Woolworths stores, whereas this conversion rate is 67% for Coles. The household reach for Fresh Salad has increased across all states in Australia this year. VIC, accounting for a quarter of total $ spend on Fresh Salad, has gained the greatest number of buying households and increased consumption.

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

6. 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 remained stable at 7.5% this year.

7. 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 51,957 additional households to their buyer base this year with shoppers spending almost $1.00 more than they did last year. Source: Nielsen Homescan This Year Last year

8. 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? The rise in the average annual spend is primarily due to an increase in the number of shopping trips taken to purchase Fresh Salad. Source: Nielsen Homescan This Year Last year

9. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 Source: Nielsen Homescan Fresh Salad follows closely the trend in penetration as last year; it steadily increased its household reach to attain a January peak. However, February monthly consumption in kg exhibits a 100g dip vs year ago. Kg

10. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 Source: Nielsen Homescan Average dollar expenditure per month is also following the same seasonal trend, however, it is $0.40 lower in Feb ‘15 compared to the same month last year.

11. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 Source: Nielsen Homescan $ spend per trip on Fresh Salad is lower in the latest 4-weekly period as compared to the same time last year.

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

13. 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+ (18.0% of population) ESTABLISHED COUPLES | 2 or more adults 35-59 (22.5% of population) INDEPENDENT SINGLES | 1 adult >35 with no children (21.0% of population) YOUNG TRANSITIONALS | Adults <35 with no children (8.6% of population) BUSTLING FAMILIES | Oldest Child 12-17 (13.6% of population) SMALL SCALE FAMILIES | Oldest Child 6-12 (9.7% of population) START UP FAMILIES | Oldest Child <6 (6.6% of population) HOUSEHOLD SIZE 1-2 MEMBER HOUSEHOLDS (58.8% 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…

14. 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. However, they both have dropped their volume share this year.

15. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 How many Households buy annually? Young Transitionals and Independent Singles have seen the biggest growth in Fresh Salad buying households. All demographic groups have increased their purchase frequency 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

16. 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 volume sales.

17. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 How many Households buy annually? Smaller households (1-2 Members) are the only household group to have added Fresh Salad buying households this year offsetting the buyer contraction witnessed across other groups. 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

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

19. 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 5% in value & 4% in volume sales, driven majorly by Coles, IGA and ALDI. Non Supermarkets declined while Woolworths remained flat in terms of kg sales.

20. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 Other Supermarkets Non Supermarkets Drivers of Account Growth & Decline Year to 21/02/2015 vs Year Ago (YA) Value growth in Aldi is driven solely by significant rise in the number of buying households whereas in Woolworths and Non Supermarkets, frequency is the main growth driver. Coles grew across all three metrics.

21. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 Source: Nielsen Homescan Account Shopper Conversion Year to 21/02/2015 | Woolworths (WW) 68% of Woolworths shoppers are purchasing Fresh Salad on their shopping trips to Woolworths. A relatively high conversion rate compared to most comparable vegetables.

22. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 Source: Nielsen Homescan Account Shopper Conversion Year to 21/02/2015 | Coles Coles is able to convert 67% of their shoppers to buy Fresh Salad while on their shopping trip to this retailer.

23. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 SA + NT (8%) 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, QLD and WA. Number of buying households increased across all states this year with VIC recruiting the most additional households. Source: Nielsen Homescan

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