GREAT LAKES Region

Regional Composite

REGIONALDATA REPORT

JAN – DEC2014 vs. 2013

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Methodology

• IRI gathers chain-wide sales across all RMAs (Retail Market Areas)– Starting in 2013, the IRI Regions reflect an expanded retail data set which

includes sales and volume from Walmart, Sam’s Club, Target and BJ’s, in addition to traditional grocery retailers

• Average Selling Price (ASP) is not Advertised Retail Price– Average selling price is the average of all prices including coupons, promotional

pricing, club/loyalty card deals that are given at the register at the time of purchase

• Categories: Total Avocados, Produce = Total Produce including Avocados

• Timeframe: YTD Q4 (January – December) 2014

• Retail data provided by IRI / FreshLook Marketing

• Important Note: IRI / FreshLook Marketing periodically restates retail data, therefore this review cannot be compared or used in conjunction with prior reviews

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Great Lakes Region: Highlights - YTD Q4

• Overview based on the following geography:– The Great Lakes Region captures the Markets of Chicago, Cincinnati, Cleveland,

Columbus, Detroit, Grand Rapids and Indianapolis, plus additional cities not included in Markets

• Avocados (+15%) outpaced Total Produce (+4%) in retail dollar sales growth rate (2014 vs. 2013)– Great Lakes held a 13% share of Total Produce dollars and a 10% share of Avocado

dollars

• 2014 vs. 2013, Avocado dollars in Great Lakes grew +15% and outpaced Total U.S. (+12%) by +3 points– All Quarters Posted Dollar Growth – During the same time, category volume grew +9%– Category average selling price (ASP) increased +5% to $1.19/unit– Great Lakes large Hass avocado (4225) gain of +12% was +8 points ahead of the

national average

• Great Lakes posted the lowest dollars and second lowest units per store per week– Great Lakes averaged $226 and 190 units per store per week through Q4 2014

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Great Lakes: YTD Q4 - Avocados vs. Produce

• 2014 vs. 2013, Avocado dollars grew +15%, +11 points ahead of Total Produce (+4%)

• Great Lakes held a 13% share of Total Produce dollars and a 10% share of Avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate

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Great Lakes: YTD Q4 Avocado Retail Overview

• 2014 vs. 2013, Category dollars grew +15%, while volume grew +9%– All quarters posted dollar growth

• 2014 vs. 2013, Category average selling price (ASP) increased +5% to $1.19/unit

All Quarters Posted Dollar Growth (2014 vs. 2013)

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RETAIL UNITS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 16,908,050 22,371,391 +32.3% 516,365,787 548,422,526 +6.2%

4225 Large Hass #40 & #48 sizes 65,229,690 69,104,985 +5.9% 573,723,099 558,876,954 -2.6%

4770 X-Large Hass #36 sizes & larger 15,406,391 12,242,792 -20.5% 51,260,370 37,304,289 -27.2%

Other Greenskins, Pinkertons, non-Hass PLUs 1,143,354 1,175,740 +2.8% 29,280,330 30,725,847 +4.9%

Organic All Organic PLUs 1,782,220 2,168,071 +21.7% 16,329,239 21,453,937 +31.4%

Bags All bagged PLUs 24,439,589 29,387,770 +20.2% 187,601,391 244,552,871 +30.4%

124,909,293 136,450,748 +9.2% 1,374,560,217 1,441,336,424 +4.9%

RETAIL DOLLARS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 17,001,180$ 23,635,035$ +39.0% 403,090,522$ 477,446,510$ +18.4%

4225 Large Hass #40 & #48 sizes 79,372,037$ 88,918,188$ +12.0% 707,519,105$ 734,371,105$ +3.8%

4770 X-Large Hass #36 sizes & larger 21,298,522$ 19,912,502$ -6.5% 75,418,753$ 69,385,913$ -8.0%

Other Greenskins, Pinkertons, non-Hass PLUs 2,057,674$ 2,105,762$ +2.3% 48,304,923$ 51,161,023$ +5.9%

Organic All Organic PLUs 2,955,701$ 3,967,171$ +34.2% 26,795,567$ 37,185,059$ +38.8%

Bags All bagged PLUs 18,410,938$ 23,752,885$ +29.0% 168,508,870$ 232,858,765$ +38.2%

141,096,051$ 162,291,543$ +15.0% 1,429,637,740$ 1,602,408,376$ +12.1%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller $1.01 $1.06 +5.1% $0.78 $0.87 +11.5%

4225 Large Hass #40 & #48 sizes $1.22 $1.29 +5.7% $1.23 $1.31 +6.6%

4770 X-Large Hass #36 sizes & larger $1.38 $1.63 +17.7% $1.47 $1.86 +26.4%

Other Greenskins, Pinkertons, non-Hass PLUs $1.80 $1.79 -0.5% $1.65 $1.67 +0.9%

Organic All Organic PLUs $1.66 $1.83 +10.3% $1.64 $1.73 +5.6%

Bags All bagged PLUs $0.75 $0.81 +7.3% $0.90 $0.95 +6.0%

$1.13 $1.19 +5.3% $1.04 $1.11 +6.9%

JAN

UA

RY -

DEC

EMBER

: 201

3 vs

201

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Great Lakes Total U.S.

TOTAL CATEGORY UNITS

Great Lakes Total U.S.

TOTAL CATEGORY DOLLARS

Great Lakes Total U.S.

CATEGORY ASP ($/Unit)

Great Lakes vs. Total U.S. - YTD Q4 PLU Comparisons

• Avocado dollar sales in GL increased +15%, +3 points ahead of Total U.S. (+12%)

– Volume increased +9%, +4 points ahead of Total U.S.

• GL large Hass avocado (4225) drove dollar gains and grew +12%, +8 points ahead of the national average

– Large avocados held the largest dollar share in GL and Total U.S.

• GL category ASP of $1.19/unit was +7% higher than the national average

Great Lakes Outpaced Total U.S. in Dollar and Volume Growth Rates

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Great Lakes: YTD Category Per Store Per Week Averages

• Great Lakes had the slowest dollar velocity– Great Lakes

averaged $226 per store per week through Q4 2014

• Great Lakes had the second slowest unit velocity– Great Lakes

averaged 190 units per store per week through Q4 2014

Lower Dollars and Units Per Store Per Week in Great Lakes Presents Opportunity for Growth

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Great Lakes: 2012 through Q4-2014 Per Store AveragesBy Quarter - Units vs. ASP

• Average Retail Units Per Store– The peak quarter was 2013-Q2 at 2,865 units per store when ASP was $1.05/unit– The lowest quarter was 2012-Q1 at 1,814 units per store when ASP was at

$1.13/unit• ASP

– Lowest ASP to date occurred during 2013-Q1, $1.02/unit– Highest ASP to date occurred during 2014-Q2 at $1.28/unit