TM

Q3 20

09

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Consumer Index Western and Northern Europe

Welcome to the Q3 2009 edition of Consumer Index. We hope you find it interesting. Please do not hesitate to contact us if you have any questions or comments.

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Consumer Index

Western and Northern Europe Total FMCG Trends

Contents

% value changes

Total Europe – Shopping Behaviour p.2-3 Trade Channel and Category Trends: s!USTRIA P s&RANCE P s'ERMANY P s'REAT"RITAIN P s)RELAND P s)TALY P s4HE.ETHERLANDS P s0ORTUGAL P P s3CANDINAVIA P s3PAIN P s$EFINITIONS 0 s3OURCESANDMETHODOLOGY

MAT Q3 09 vs. MAT Q3 08 Q3 09 vs. Q3 08

GB 5.5

SCANDINAVIA

4.8

3.1

IRELAND 1.4 -5.4

NETHERLANDS 2.6

FRANCE 0.8

PORTUGAL 0.1

SPAIN

ITALY 1.6

-0.5

-3.3

Consumer Confidence 10

0

-10

-20

-30

-40

EU (27 countries)

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1.3

0.9

-1.7

TM

2.6

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1.5

AUSTRIA 1.0

0.1

GERMANY 0.0

Consumer Index

Overview of Trends Whilst FMCG in volume terms continues to grow, price reductions due to deflation are impacting a number of countries and categories in terms of value - notably France, Germany and Spain as well as Fresh and Chilled Foods. Both these categories experienced significant price increases throughout 2008 but this trend is now reversed due to deflation, growth of Private Label, sales through Discounters and promotional activity. Frequency of purchase is increasing across a number of countries, supporting FMCG volume growth, although this is not universal and Germany is showing an opposite trend. Downtrading has reduced considerably and the growth in Private Label and Discounters has slowed. Home Care and Personal Care categories are performing well across most countries. Personal Care in particular has been positively impacted by consumers staying at home and buying personal care products for home use rather than going to salons. Ireland is an exception because of the economic situation there and by high prices impacting discretionary purchases. A better summer in 2009 has led to a better performance in Soft drinks and Ice Cream but has been to the detriment of confectionery in Germany!

Richard Herbert Europanel Global Business Development and Insight Director

FMCG Consumer Dashboard % Value Change Q3 2009 vs Q3 2008 Austria

France

GB

Germany

Ireland

Italy

Fresh Food Chilled Food Packaged Grocery Frozen Food Alcohol Soft Drinks Personal Care Home Care Pet Food

Grow by more than 0.5%

Decrease by more than 0.5%

Grow / decrease by 0.5% or less

Category not covered

TM

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Netherlands

Portugal

Scandinavia

Spain

Consumer Index

Austria

Q3 2009

Q3 2009 Key Indicators Austria – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-2.4%

Q4 2008

Food Price Index

Rate of Food Inflation (Value)

-0.5% +24.6%

Rate of Unemployment

Fresh Foods

5.4 2.2

Packaged Grocery

3.3

Frozen Foods

Soft Drinks Personal Care

+2.1%

Average FMCG Basket Size (Value)

FMCG Value Share

33.4

33.7

21.4

21.4

Drug Stores

24.8

25.0

Other

8.1

7.9

12.3

12.0

Hypermarkets Discounters

MAT Q3 2008

MAT Q3 2009

Austria – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

Drug Store Other

0.1

3.1

1.7

1.5

2.7

-3.3

Discounters

Q3 2009

1.8

-1.4

Supermarkets Hypermarkets

Q2 2009

0.1

0.3 -4.7

3.5

-2.5

2.1

-1.8

-8.1

2.5

TM

-5.6

Pet Foods

4.8

-1.1

-3.7

-7.4

10.9

-4.7

2.1 0.8

5.0 3.0

1.5

4.3

3.4

2.9 9.7

3.4

sThe discounters could not profit as much from the crisis as was expected at the beginning of the year. The stagnation in the first half of 2009 has lead to a new wave of price wars. In August Hard Discounter Hofer cut prices by 10% on a number of products which was quickly followed by the other discounters Lidl, Penny and Zielpunkt. However, price decreases did not cause shoppers to increase their consumption. The result was not only a drop in market share but a negative value development for discounters in Q3. sThe only exception to this trend in Q3 was Lidl. Lidl grew above average in the basket of fresh bread & pastry which can be linked to the continuing introduction of baking stations in its outlets. sBesides discounters specialized food stores were also hit severely in Q3 2009 due to consumers shifting their spend to the cheaper traditional grocery trade.

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-1.1

5.0

0.0

-2.1

sIn Q3 Supermarkets and Hypermarkets were again able to win back some terrain from discounters. Their continued focus on price promotions and increasing assortment of low tier private labels helped to secure the loyalty of the more price sensitive households . They also managed to attract shoppers of the recovering organic food segment as well as premium products in general .

Austria – Trade Channels

Supermarkets

Home Care

-2.0

0.0

-1.2

-1.4

-2.0

1.6

-2.4

3.5

-0.5%

3.9 2.2

-3.3

0.1

+0.6%

-0.3

1.8

Q3 2009

1.8

+2.2%

Chilled Foods

Q2 2009

-1.4

+4.1%

Alcohol

-2.8%

Frequency of FMCG Purchase

Q1 2009

3.4

Total FMCG

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Consumer Index

France

Q3 2009

Q3 2009 Key Indicators France - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-2.1%

Q4 2008

Total FMCG Food Price Index

Rate of Food Inflation (Value)

-1.1% +26.1%

Rate of Unemployment

Fresh Foods

+0.7% +1.2%

+2.0%

2.1

1.4

Packaged Grocery

1.6

0.3

Frozen Foods

Soft Drinks

Home Care

-1.1

2.4

3.2 4.2

6.6

1.8 3.3 5.9 7.0 3.0

-4.2

-1.9

-2.8

3.5 -0.9

-0.4

-6.2

Pet Foods

4.5

4.2

6.0

-2.8 -0.1

-0.1

2.2

-3.1

0.9 -1.1%

0.0

3.3

-2.7

Q3 2009

0.9 +0.4%

Chilled Foods

Personal Care

Average FMCG Basket Size (Value)

Q2 2009

1.7

+3.9%

Alcohol

Frequency of FMCG Purchase

Q1 2009

-0.4

1.5 2.1

6.2 3.0

France - Trade Channels FMCG Value Share

Hypermarkets

42.6

42.7

43.0

44.7

29.9

29.6

28.9

27.5

5.5 4.9

5.3 5.2

5.5 5.6

5.4 5.7

17.1

17.3

17.1

16.7

sThe difficulties for Discounters have been confirmed this quarter : Soft Discounters such as Ed, Leader Price, Netto are decreasing by 3.9% while Hard Discounters (Lidl, Aldi) have totally stopped growing in value (0%)

Supermarkets Soft Discounters Hard Discounters Other

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

sOn the contrary, the big hypermarkets (Carrefour, Auchan, Géant, Cora) seem not to have taken advantage of their big "back to school" promotional operations and still register a negative trend in market share.

France - Trade Channels Year-on-Year % Change (Value) Q1 2009

1.7

Total FMCG

Hard Discounters Other

-3.7

1.9

0.9

5.6

-5.5

Soft Discounters

Q3 2009

0.9

7.0

Hypermarkets Supermarkets

Q2 2009

4.6

-0.1

TM

sThe 3 winners in terms of market shares still are : Leclerc (+0.5pt vs. Q3 2008), Système U (+0.5pt) and Champion/ Carrefour Market (+0.2pt)

-3.2

0.9

-0.2

4.5

-3.3

-7.0

sHypermarkets are still the most dynamic channel (+4.5%) thanks to a larger number of stores (conversion of big supermarkets into hypermarkets) and to the dynamism of small/medium-sized hypermarkets.

0.0

0.4

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Consumer Index

Germany

Q3 2009

Q3 2009 Key Indicators Germany - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-4.7%

Rate of Food Inflation (Value)

-2.6%

Q4 2008

Food Price Index

+6.0% -3.0%

Frequency of FMCG Purchase

+2.6%

Average FMCG Basket Size (Value)

Germany - Trade Channels

25.6

25.4

25.1

Supermarkets

15.7

15.6

15.3

15.2

Hard Discounters

25.6

26.0

27.1

26.8

10.7

11.0

11.0

11.6

22.3

21.9

21.2

21.3

Hypermarkets

Soft Discounters

-1.5

-7.3

Frozen Foods

1.2

Alcohol

0.7

Soft Drinks

0.0

Personal Care

3.3

Home Care

2.6

Pet Foods

5.2

-2.4

-2.6%

-0.2%

0.5

4.7

Q3 2009

0.0

+0.6%

4.1

Packaged Grocery

Q2 2009

0.6

-3.1 -7.1

-6.3

0.0

3.7

-3.4

0.0

0.0

-2.7 -2.5 0.1

2.4

-3.9

-0.9

-5.6

-0.8

1.0

-0.6

1.1 5.4

4.2

1.8 7.7

4.2

sAmongst all main channels we see again that only Soft Discounters (Netto, Penny) are growing in value terms, although this growth is slowing down.

FMCG Value Share

25.7

Q1 2009

-1.2

+2.6%

Fresh Foods Chilled Foods

Rate of Unemployment

2.6

Total FMCG

sDrugstores (here incorporated into "Others“) are also showing a positive trend and are the only channel where prices have remained stable.

Other

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Germany - Trade Channels

sHard discounters is the channel to suffer the most. Aldi has seen a reduced purchase frequency due to a poor performance of their non food business whilst Lidl has reduced the number of brands sold and is driving again its own labels. Both have significantly reduced their prices.

Year-on-Year % Change (Value) Q1 2009

Total FMCG

0.0

-1.2

Hypermarkets

-2.6

Supermarkets

-2.4

Hard Discounters

-3.4

1.8

-2.4

-1.3 -3.9

-2.2

2.5

4.5

7.0

1.7

Q3 2009

-4.0

-0.8

Soft Discounters Other

Q2 2009

-0.2

TM

sSoft Discounters are growing due to new store openings, new concepts (fresh food) and introductory offers by Netto following the re-labelling of the former Plus stores.

sHypermarkets have again increased their efforts in promotions, which is impacting on profitability.

-1.4

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Consumer Index

Great Britain

Q3 2009

Q3 2009 Key Indicators Great-Britain - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-6.0%

Q4 2008

(Q2 09) Food Price Index

Rate of Food Inflation (Value)

+2.6% +33.7%

Rate of Unemployment

+10.4%

Fresh Foods

+2.9%

Packaged Grocery

7.7

7.1

Frozen Foods

7.4

6.6

FMCG Value Share

Top 4

65.5

66.3

66.3

67.1

Hard Discounters Chemists-Drugstores Total Independents

11.7

10.8

4.1 3.4 1.8

4.4 3.3 1.8

13.6

MAT Q3 2006

All Others

15.1

14.8

13.3

4.8 3.3 1.6 8.9

5.1 3.1 1.4 8.5

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Great-Britain - Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

5.5

Top 4

6.6

Chemists-Drugstores

1.1

7.8

8.2

0.2 -9.4

-0.5

5.3 6.0

4.4 5.5 3.4 8.4 5.3 3.6

1.5 3.2 8.1

5.5 9.1

sFast-forward to today and Waitrose is the top performer with a growth rate of 11.2% - the highest since August 2006. Admittedly this will be boosted by the stores acquired from the Co-operative / Somerfield combination but it is hardly a sign of a rush downmarket. Growth for Aldi and Lidl continues to fall back from 2008 levels with Aldi growing ahead of the market at 8.0% and Lidl just keeping pace with the market growth of 5.2%.

1.2

sAsda, Sainsbury’s and Morrisons all continue to grow share and have added 1.1 share points between them. It is too early yet to assess the impact of Tesco’s Clubcard 2 within this 12 week period and the Tesco share continues under pressure.

-1.2

sIt is worth noting that there is challenge to the sector coming from the falling grocery inflation rate (see below) – this will restrict value growth for the industry going forward.

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8.5

7.6

2.6

-10.4 1.8

TM

Pet Foods

3.7

-1.5

2.8

3.5

10.7

3.4 0.2

2.1

5.7

6.6

3.9

0.2

Total Independents -9.8

4.8

7.7

14.0

Hard Discounters

Q3 2009

6.1

5.0

Other Multiples

All Others

Q2 2009

Home Care

3.3 0.6

5.5

sThe “recession panic” seems to be ebbing away as far as the grocery market is concerned. This is not to imply that all sectors of the High Street will instantly return to pre-recession growth. Rather that food remains a manageable proportion of most household budgets by historical standards and, it could be argued, the grocery sector suffered from an over-reaction at the end of 2008 when Aldi posted year-on-year sales growth of 26% and Waitrose saw a sales decline.

Great-Britain - Trade Channels

Other Multiples

5.1

4.8

+2.6%

+6.1%

7.0

Personal Care

Average FMCG Basket Size (Value)

4.9

Q3 2009

6.1

+10.7%

7.0

Soft Drinks

Q2 2009

5.5

Chilled Foods

Alcohol

+0.9%

Frequency of FMCG Purchase

Q1 2009

5.5

Total FMCG

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Consumer Index

Ireland Q3 2009 Q3 2009 Key Indicators Ireland – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

-7.4%(Q2 09)

GDP (Value)

Q4 2008

Food Price Index

Rate of Food Inflation (Value)

-5.0%

Fresh Foods

+89.0%

Frozen Foods

Personal Care -6.2

-12.3%

Average FMCG Basket Size (Value)

Home Care

-11.2 6.2

1.6

-6.1

-2.4

-1.9

-3.5

-0.7

Pet Foods

1.1 -2.7 -12.4

-15.1 2.6

6.2

-3.4

4.7 -3.7

17.0 -17.3

Soft Drinks

-6.9 3.4

-0.3

Alcohol

+3.9%

Frequency of FMCG Purchase

3.0

-1.5

-5.0%

-3.3

0.2

8.2

-5.4

+1.0%

0.1 0.9

Q3 2009

-2.0

+1.1%

-3.2

Packaged Grocery

Q2 2009

-0.6

+3.9%

Chilled Foods

Rate of Unemployment

Q1 2009

2.4

Total FMCG

-13.5

-4.7

-13.1 -9.8 -17.1

Ireland – Trade Channels FMCG Value Share

sDue to their lower price points and new store openings, the Discounters continue to experience the highest growth rates of the retailers situated in the Republic of Ireland.

Supermarkets

Discounters

78.4

79.7

78.8

79.7

Symbols

6.1 6.9

Other

6.8 6.0 7.5

8.7 MAT Q3 2006

8.0 5.5 7.7

7.2 5.9 7.1

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Ireland – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

Supermarkets

-0.6

-2.3

Discounters

Symbols

Other

Q2 2009

-2.0

-5.4

-3.0

-6.4

6.0

-4.5

Q3 2009

10.8

-14.0

11.5

sLoss of trade to retailers in Northern Ireland remains a key problem for retailers in the Republic as favourable currency exchange rates and the lower VAT rate in the North make it a more attractive market for consumers from the Republic to shop in. To combat this loss the major multiples in the Republic, led by Tesco, have launched an EDLP strategy to try and curb the number of consumers who are travelling North of the border. Early analysis showed that these strategies have had an initial impact, however a further decline in the value of Sterling against the Euro since the change in strategy seems to have negated much of this initial success.

-12.2

15.3

5.8

TM

-5.9

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Consumer Index

Italy

Q3 2009

Q3 2009 Key Indicators Italy - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-6.2%

Q4 2009

(Q2 09) Total FMCG Food Price Index

+0.9%

Rate of Food Inflation (Value)

+4.5%

Fresh Foods

+8.8% (Q2 09)

Packaged Grocery Frozen Foods

-2.6%

Frequency of FMCG Purchase

Soft Drinks

+0.5%

Average FMCG Basket Size (Value)

Pet Foods

+3.2%

Q3 2009

1.4

1.5

+2.4%

+0.9% 1.9

2.5

0.4

6.3

0.9

0.9

-0.5

-1.3

1.2

1.5

0.9

-1.3

0.6

2.4

1.8

-0.5

0.9

3.0

Personal Care Home Care

Q2 2009

0.3

1.7

Chilled Foods

Rate of Unemployment

Q1 2009

3.4

6.3 0.7 2.6

3.2 1.6 2.9

5.3 1.8

-0.3 0.2 0.8

1.8 6.5

Italy - Trade Channels FMCG Value Share 13.9

14.5

14.7

14.8

Hypermarkets

Supermarkets

Discounters

Other

43.4

44.4

44.9

45.6

7.6

7.8

8.2

8.6

35.1

33.3

32.1

31.0

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

sSupermarkets continue to outperform Hypermarkets; Discounters are slowing down after having gained market share for a couple of years thanks to economic downturns and households being worried about their budgets.

MAT Q3 2009

Italy - Trade Channels Year-on-Year % Change (Value) Q1 2009

Q2 2009

Q3 2009

Total FMCG

0.3

1.4

1.5

Hypermarkets

1.2

1.9

1.9

Supermarkets

1.4

2.9

2.7

3.6

Discounters

Other

-2.4

TM

sSummer sales have been somewhat boosted by the weather which has been better than last year (particularly benefiting the Beverages and Ice Cream categories).

3.5

9.4

-3.6

sWhile in Q3 07 households were increasing their frequency of purchase, this is no longer the case. Compared with last year, households are shopping less often for FMCG products, suggesting that they are less concerned about reducing the size of their baskets and keeping their expenditure under strict control (average spend per trip has remained stable).

-0.5

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Consumer Index

Netherlands

Q3 2009

Q3 2009 Key Indicators Netherlands - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-3.7%

Q4 2008

Total FMCG Food Price Index

Rate of Food Inflation (Value)

-0.5%

Fresh Foods

Rate of Unemployment

+0.6%

Frequency of FMCG Purchase

Packaged Grocery

+0.5%

Netherlands - Trade Channels

1.5

Supermarkets 70.7

71.2

Home Care Pet Foods

0.0

0.2

-1.2

-1.3

2.0

7.8

2.1

10.8

0.4 4.0

8.2

5.3

9.7

3.9 4.9 5.9

4.9

5.3 5.7

-0.5

5.8 3.9

-1.3

2.7

1.8

-0.5%

+3.7%

0.6

3.2

Alcohol

Q3 2009

6.5

7.8

9.4

9.4

4.0 14.3

2.1

sThe hard discounters (Aldi and Lidl) are still showing a large growth from last year and this can be explained by an increase in the number of customers they have had recently. These discounters have also extended their attention to fresh foods to increase sales.

FMCG Value Share

71.5

1.1

0.3

Personal Care

Average FMCG Basket Size (Value)

2.1

Frozen Foods

Soft Drinks

Q2 2009

1.3

+4.0%

+5.3%

Chilled Foods

+29.6%

Q1 2009

2.0

Hard Discounters

Other

12.0

12.9

13.6

16.6 16.5

16.1 16.0

15.8 15.7

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Netherlands - Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

Supermarkets

Q2 2009

1.3

-0.3

Hard Discounters

Other

sAnother reason for this growth is due to the decrease in confidence in the economy which has encouraged consumers to switch to these hard discounters.

8.9

Q3 2009

6.5

1.8

5.6

2.1

8.1

-1.6

5.2

TM

sThis decrease in confidence in the economy has put the "other channels", also known as specialist shops under pressure. The number of shoppers going to traditional stores (e.g. bakers, butchers, green grocers and florists) is falling due to this rise in hard discounters.

-1.2

sWithin Supermarkets, Albert Heijn is still expanding due to the acquisition of 59 C1000 shops and because of a very loyal group of customers. It is especially the medium price supermarkets that are suffering from the growth of the hard discounters falling from 38.9% to 37.6% of market share.

0.0

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Consumer Index

Portugal Q3 2009 Q3 2009 Key Indicators Portugal – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

-4.1%(Q2 09)

GDP (Value)

Q4 2008

Total FMCG Food Price Index

Rate of Food Inflation (Value)

-6.1%

Rate of Unemployment

+18.0%

Fresh Foods

-0.4 -1.6

Frozen Foods Alcohol

Frequency of FMCG Purchase

-2.0%

Soft Drinks Personal Care

Average FMCG Basket Size (Value)

+2.6%

Home Care

+0.6%

-2.2%

4.2

Pet Foods

2.2

6.9 5.1

9.7

13.3 5.3

3.8

-3.1

8.4

5.7 -5.6

5.0

-7.9

2.4 -6.0

-1.8

19.2

-3.5

-6.4 1.9

3.4 1.7

-6.5

-6.1%

-0.5

0.2

-9.6

Q3 2009

-1.7

2.2 2.9 9.7

-0.8 -11.3

3.8

sSupermarkets have shown the strongest performance due to the success of “Pingo Doce” (Jeronimo Martins Group) and its new stores.

Portugal – Trade Channels FMCG Value Share

29.5

+2.9%

Chilled Foods

0.0

3.5

-0.9

Packaged Grocery

Q2 2009

Q1 2009

-1.9

25.5

28.2

Hypermarkets

sAmong Hypermarkets, Continente is showing a very strong evolution, thanks to a very successful marketing strategy. This good performance has mainly been achieved through the recruitment of buyers. Continente has a strong and efficient TV advertising campaign matching consumers’ needs (“Continente will help you in these difficult times”; “Basic food products at very low prices”). Additionally Continente have 4 more marketing practices: a strong loyalty card, a varied fresh products assortment, a solid Private Label portfolio and constant manufacturers’ brand promotions.

Supermarkets 37.7

38.2

42.5

16.9

17.5

16.9

7.6

6.9

6.5

8.3

9.2

9.0

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Discounters Traditionals Other

Portugal – Trade Channels Year-on-Year % Change (Value) Q1 2009

3.5

Total FMCG Hypermarkets

Q2 2009

-1.2

Supermarkets

0.0

-13.1

-5.2

Traditionals

-5.5

Other

-4.4

-1.7

-12.8

14.6

Discounters

Q3 2009

14.3

-7.4

12.0

-6.9

-2.6

-19.9

-4.2

-3.6

TM

sDiscounters and Traditional stores are now seeing their market share decrease. These two channels are losing shoppers because of a less attractive fresh food assortment and consumers’ perception of a less competitive price offer. For the first time ever LIDL is now investing in traditional mass media advertising on its “quality but low price products”.

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Consumer Index

Scandinavia Q3 2009 Q3 2009 Key Indicators Scandinavia – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value) - Sweden & Norway only

+2.9%

Q4 2008

Total FMCG Fresh Foods

Rate of Food Inflation (Value)

+1.5%

Packaged Grocery

Rate of Unemployment

+50.8%

Frequency of FMCG Purchase

+4.2%

Frozen Foods

-0.7

Soft Drinks

-1.3

Personal Care Home Care

Average FMCG Basket Size (Value)

-1.8%

9.9

Pet Foods

-0.3

-1.2

4.9 2.3 -0.8

-5.2

-0.6

-0.2

-2.9

-2.1 1.2

1.9

-3.5

-3.0 1.4

-1.8

-4.3

-1.7

-1.6

2.6

-7.6

-3.7

3.4

Q3 2009

-3.7

-5.2

-1.3

Chilled Foods

Q2 2009

Q1 2009

-0.4

4.6

3.3

-7.4 0.0

8.2

27.9

Scandinavia – Trade Channels sDiscounters continue to grow in Scandinavia. Scandinavian consumers are still affected by the recession and the economic climate is playing a key role in the consumer's choice of retailer and products. This has led to a more conscious behaviour towards special offers and more shopping trips in discounters.

FMCG Value Share 17.2

16.4

33.5

33.1

26.0

27.4

28.2

18.0

20.6

21.9

22.3

MAT Q3 2006

MAT Q3 2007

21.3

25.1

Hypermarkets

Supermarkets

32.1 36.2

Discounters 20.6

Other

MAT Q3 2008

MAT Q3 2009

sIn Denmark discounters have expanded their assortment with more fresh foods such as meat, bread, dairy products and fruit & vegetables. This makes it easier for the consumer to limit the number of retailers being visited. Furthermore Danish consumers seem to have changed their view on discounters and today they think that it is easy to find branded quality goods in soft discounters.

Scandinavia – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

-0.4

Hypermarkets

Supermarkets

Discounters

Other

Q2 2009

2.0

-8.0

-3.7

2.6

-3.9

3.4

-7.3

-1.2

2.6

0.5

7.3

Q3 2009

-3.3

4.2

sIn spite of more price conscious Scandinavian consumers, there are indications that FMCG consumption will increase next year. In Norway the interest rates are lower, there is an upswing in the housing market and the labour market has improved. In Denmark lower taxes and lower interest rates may affect consumers towards more FMCG consumption and finally in Sweden the latest numbers show a continuing volume growth in Total FMCG market.

6.0

Please note: All value indicators are based on Euro currency.

TM

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Consumer Index

Spain

Q3 2009

Q3 2009 Key Indicators Spain - Category Trade

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-3.4%

Rate of Food Inflation (Value)

-2.2%

Q4 2008

Food Price Index

+3.2%

+59.0% +1.1%

Frequency of FMCG Purchase

Frozen Foods

-3.5

Alcohol

-3.8

-6.0%

Average FMCG Basket Size (Value)

Personal Care Home Care

-4.5

-3.7

-3.4 0.1

5.7 4.3

-1.1 7.1

-6.3 3.0

1.0

3.7

1.3 -0.3

3.7

-1.9

-2.1

7.3

-3.2

-2.2%

-3.5

-1.2

1.6

Soft Drinks

-3.1

-0.1%

0.7

6.5

Q3 2009

-2.4

+1.3%

3.4

Packaged Grocery

Q2 2009

1.5

0.6

Fresh Foods Chilled Foods

Rate of Unemployment

Q1 2009

1.5

Total FMCG

1.7 -5.0

1.9

1.4

Spain - Trade Channels FMCG Value Share 16.8

17.0

16.8

16.2

36.7

37.1

36.7

37.0

3.3 6.7

3.3 6.6

3.5 7.0

3.8 7.1

36.5

36.0

36.1

35.9

Hypermarkets Supermarkets Hard Discounters

sPrivate Label continues to become increasingly important, now accounting for more than 34% of value share.

Soft Discounters Other

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Spain - Trade Channels Year-on-Year % Change (Value) Q1 2009

Supermarkets

Q3 2009

-3.1

-2.4

1.5

Total FMCG Hypermarkets

Q2 2009

-4.7

-2.8

-7.3

-1.7

0.8

-0.9

11.3

Hard Discounters

8.3

sConsumers tend to shop more often than last year, albeit spending less each time, and it seems that this is causing difficulties for Hypermarkets. In contrast, it seems that Supermarkets are benefiting from this, performing better than the market average.

-1.2

Soft Discounters

3.6

-2.5

-3.3

Other

3.0

-2.5

-4.1

TM

sDespite retailers' significant efforts to increase the loyalty of their customers, the constant search for good prices and good value result in shoppers being less loyal to specific retailers.

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Consumer Index

Definitions CATEGORIES UNIVERSE: FMCG: Fast Moving Consumer Goods (includes foods, personal care and home care; excludes clothes, white goods etc...) Total FMCG is not necessarily the sum of the categories shown below it.

Categories: sFresh Foods: fresh fish, fresh meat, fresh poultry/game, fresh fruit, vegetables, salads sChilled Foods: chilled deli products, chilled dairy products, chilled bakery products sPackaged Grocery: bread, biscuits, canned goods, hot beverages, packet breakfast, pickles, sauces, condiments, savoury carbohydrates and snacks, home cooking ingredients, take home confectionery and savouries sSoft Drinks: carbonated soft drinks, chilled drinks and mineral water sHome Care: softeners, detergents and rinse conditioners sPersonal Care: bathroom toiletries, hair care, healthcare, oral care, other toiletries

TRADE RADE CHANNEL DEFINITIONS: Hypermarkets

Supermarkets Selling area from 400m2 to 2000m2

Hard Discounters Hofer, Lidl

Soft Discounters Penny, Plus, Zielpunkt

Austria

Selling area > 2000m2 (excluding hard discounters)

France

Selling area > 2500m2 Selling area : 400m2 to Lidl, Aldi, Norma, 2500m2 (excluding Colruyt hard discounters)

Ed, Leader Price, Netto, Le Mutant

Great Britain

Top 4 multiples: Tesco, Asda, Sainsbury's, Morrison

Lidl, Aldi, Netto

no soft discounters

Aldi, Lidl, Norma

Penny, Plus, Netto

Germany

Selling area from Small hypermarkets: 400m2 to 800m2 800m2 - 1500m2 Medium hypermarkets: 1500m2 - 5000m2 Large hypermarkets: > 5000m2

Aldi, Lidl

no soft discounters

Republic of Ireland

Italy

Netherlands

no hypermarkets

Typical multiple (no hypermarkets in this country)

Selling area > 2500m2 Assortment must include Grocery, white and brown Domestic Appliances, Clothing and Footwear.

Selling area : 400m2 to 2500m2 (excluding hard discounters)

no hypermarkets

All retailers excluding hard discounters

Specialists such as pharmacies, butchers, bakeries, fishmongers, etc. Lidl, Eurospar, Dico, Penny

Aldi, Lidl

no soft discounters

Portugal

Selling area > 2500m2 Selling area < 2500m2

Lidl, Minipreco

no soft discounters

Selling area > 2500m3 Sellin area from 450m2 to 2550m2

Aldi, Lidl

Scandinavia

Netto, Willys, Rema 1000, Coma, Alta, Kiwi, Coop Prix

Aldi, Lidl, Plus, Familia (Eroski group)

Dia, Maxi Dia, Dia Market

Selling area > 2500m4

Spain

TM

Selling area : 400m2 to 2500m2 (excluding hard discounters)

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Others

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Consumer Index

Source & Methodology METHODOLOGY: sA consumer panel is a permanent, syndicated and representative sample of consumers, who provide ongoing details of the fast moving consumer goods they purchase. Using the scanning methodology, each panel member records the details of every item they purchase. sSample sizes in number of households: Austria: 2,800; GB: 25,000; Germany: 30,000; France: 20,000; Ireland: 2,650 (2,000 Republic + 650 N.I); Italy: 8,000; Portugal: 2,500; Spain: 8,000; Netherlands: 6,000; Sweden: 3,000; Denmark: 3,000. sCategory , channel data and Average Basket size data are based on local currency (except Scandinavia which is provided in Euro). Other value indicators are based on Euro.

KEY INDICATORS : Panel data indicators sFrequency of FMCG purchase: Frequency of FMCG purchase during the quarter compared with the same quarter the previous year. sFMCG Average Basket Size: Average amount spent per trip in FMCG during the quarter compared with the same quarter the previous year.

Eurostat data indicators: sFood price index : Harmonized Indices of Consumer Prices (HICPs) are produced and published using a common index reference period (2005=100). sUnemployment : Unemployed persons comprise persons aged 15 to 74 who were without work during the reference week, were currently available for work and were either actively seeking work in the past four weeks or had already found a job to start within the next three months. sConstant Price GDP (based on Euro currency): Gross domestic product (GDP) at market prices is the final result of the production activity of resident producer units (ESA 1995, 8.89). It is defined as the value of all goods and services produced less the value of any goods or services used in their creation. Data are calculated as chain-linked volumes (i.e. data at previous year's prices, linked over the years via appropriate growth rates). Growth rates with respect to the previous quarter (Q/Q-1) are calculated from calendar and seasonally adjusted figures while growth rates with respect to the same quarter of the previous year (Q/Q-4) are calculated from raw data.

KEY COUNTRY FACTS: Source: CIA World Fact Book Individual Population Number Of Households (in 000's) (in 000's)

Country

8,312 5,476 60,470 82,315 60,600 4,240 57,993 16,358 10,599 44,474 9,000

Austria Denmark France Germany Great Britain Ireland Italy Netherlands Portugal Spain Sweden

3,538 2,532 26,130 38,477 25,000 1,484 21,686 7,190 3,772 16,340 4,300

GDP per Capita (2008 est.) $39,200 $38,900 $32,700 $34,800 $37,400 $47,800 $31,000 $41,300 $22,000 $36,500 $36,900

The Europanel Consumer Index is part of the Consumer Index series TM

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Q3 20

09

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Consumer Index Central and Eastern Europe Welcome to the Q3 2009 edition of Consumer Index. We hope you find it interesting. Please do not hesitate to contact us if you have any questions or comments.

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Consumer Index

Central and Eastern Europe GREECE NOW INCLUDED Total FMCG Trends

Contents

% value changes

Total Europe – Shopping Behaviour p.2-3 Trade Channel and Category Trends: s"OSNIA P s"ULGARIA P s#ROATIA P s#ZECH2EPUBLIC P s'REECE P s(UNGARY P s0OLAND P P s2OMANIA P s2USSIA P s3ERBIA P s3LOVAKIA P s5KRAINE P s$EFINITIONS P s3OURCESANDMETHODOLOGY

CZECH REPUBLIC 9.0

POLAND

9.3

5.2

0.3

1.1

UKRAINE

SLOVAKIA

20.4

0.4

8.7

HUNGARY -1.9

-1.2

15.3

10.8

CROATIA 7.9

7.4

5.1

2.5

BOSNIA & HERZEGOVINA

Consumer Confidence

0

-10

-20

-30

-40

EU (27 countries)

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35.6

MAT Q3 09 vs. MAT Q3 08 Q3 09 vs. Q3 08

10

TM

RUSSIA 28.9

www.europanel.com

8.1

5.1

7.7 -3.7

SERBIA

ROMANIA

3.8 -0.6

GREECE

BULGARIA

Consumer Index

Overview of Trends s4HISMONTHWEINCLUDEANEWCOUNTRYINTOTHE%ASTERN%UROPEAN#ONSUMER)NDEX4HEPANELIN'REECEISONEOFOUR NEWESTPANELSWITHASAMPLEOF (OUSEHOLDSIN!THENS4HESSALONIKI4HISQUARTER'REECEHASEXPERIENCED&-#' GROWTHFUELLEDBYANINCREASEINPURCHASEFREQUENCY#ONSUMERS INTHEIREFFORTTOMANAGETHEIRBUDGET AREDECREASING VOLUMEPERTRIPINORDERTOREDUCETHEIRTRIPSPENDANDARETURNINGTOSMALLERPACKSIZESWHICHAREMOREEXPENSIVEPER VOLUME 4HUS THENUMBEROFSHOPPINGTRIPSISINCREASINGANDTHEREFORETHEIRTOTALSPENDISINCREASING s!CROSS%ASTERN%UROPETHEREISAMIXEDPERFORMANCEACROSSCATEGORIESn3OFTDRINKSHAVESHOWNAPOORPERFORMANCE THISQUARTERIN5KRAINE 3ERBIA #ROATIA "OSNIAAND"ULGARIABUTHAVESEENSOMEGROWTHIN0OLAND!LCOHOLHASSHOWNA NEGATIVE TREND IN "ULGARIA AND 3ERBIA BUT IS AMONGST THE FASTEST GROWING CATEGORIES IN #ZECH 2EPUBLIC 2USSIA AND 2OMANIA&INALLYWHILST(OME#AREPERFORMSBADLYIN(UNGARY APOSITIVETRENDISTHECASEIN"OSNIA #ROATIAAND#ZECH 2EPUBLIC
1UITEAMIXEDBAGDEPENDENTONLOCALCIRCUMSTANCES

Richard Herbert %UROPANEL'LOBAL"USINESS$EVELOPMENTAND)NSIGHT$IRECTOR

FMCG Consumer Dashboard % Value Change Q3 2009 vs Q3 2008 Bosnia & Herzenovina Bulgaria

Croatia

Czech Republic

*Greece

Hungary

Poland

Fresh Food Chilled Food Packaged Grocery Frozen Food Alcohol Soft Drinks Personal Care Home Care Pet Food

Grow by more than 0.5%

Decrease by more than 0.5%

Grow / decrease by 0.5% or less

Category not covered

*Greece: Chilled Food = Dairy products only; Home and Personal Care are one single category

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Romania

Russia

Serbia

Slovakia

Ukraine

Consumer Index

Bosnia

Q3 2009

Q3 2009 Key Indicators Bosnia – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

NA

Rate of Food Inflation (Value)

NA

Rate of Unemployment

NA

Q4 2008

Total FMCG Chilled Foods

-1.0%

Frequency of FMCG Purchase

Soft Drinks Personal Care

+3.6%

Average FMCG Basket Size (Value)

Bosnia – Trade Channels FMCG Value Share 13.3 13.2

Hypermarkets

15.9 16.6

16.7 17.1

23.6

24.3

59.7

58.5

55.2

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

18.6 19.1

21.2 25.7

Supermarkets

65.5

8.7

Home Care

Q2 2009

28.9

7.6

-5.1

4.7 8.5

5.0 2.7

-1.3 4.7

21.0 -0.2 -1.2

-7.1 2.0

3.2

2.5

1.6 2.2

7.0

12.2

Q3 2009

1.7

7.6

6.9

Packaged Grocery Alcohol

Q1 2009

10.0

-0.4 -2.6 2.2

sModern Trade continues to record growth whilst traditional stores are in decline. The growth of modern trade (particularly in Supermarkets which has recorded the most significant growth compared to the previous year) has been driven by Tuš the Slovenian retail chain that opened several new stores in BiH. More store openings are planned before the end of the year.

Other

MAT Q3 2006

Bosnia – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

Q2 2009

Q3 2009

1.7

2.5

7.6

Hypermarkets

31.0

Supermarkets

3.0

Other

3.6

7.7

14.7

15.7

-5.9

13.6

-5.7

TM

sModern trade is also performing strongly through offering a wide variety of products at cheaper prices than other outlets and through a number of promotions, all of which are appealing to consumers in the current economic environment. Other outlets does still hold more than half of FMCG value share but is slowly and surely losing share.

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Bulgaria

Q2 2009

Q3 2009 Key Indicators Bulgaria – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-4.9%

Rate of Food Inflation (Value)

Total FMCG

-2.0% +35.8%

Rate of Unemployment

Q4 2008

(Q2 09) Food Price Index

+7.2% +7.7%

-3.7%

Packaged Grocery

24.0

7.8

+1.7%

Home Care

20.6 17.4

-2.0% 6.2

-0.1

11.6

6.5 -3.7

1.7

27.0 -1.7 23.6

Q3 2009

-0.6

+3.1%

6.9

Soft Drinks

2.1

7.5

+2.9% 24.0

Personal Care

Average FMCG Basket Size (Value)

Q2 2009

Chilled Foods

Alcohol

Frequency of FMCG Purchase

Q1 2009

23.4

0.7

7.6

2.8

6.0

3.4

-4.5 -7.1 1.6 4.9

sDuring the third quarter of 2009 modern trade continued to grow. This is mainly driven by the performance of Kaufland with Supermarket

Bulgaria – Trade Channels

growth, strong during the first half of the year, slowing in Q3.

FMCG Value Share 17.9

Supermarkets & Hypermarkets

18.6

0.6 3.5

20.5

3.8 3.3

6.2 2.7

Discounters Cash & Carry

46.9

47.0

sKaufland’s growth is mainly explained both by an increased loyalty of

22.4

shoppers and by the further expansion of the retailer (in North-Eastern

7.6 2.6

44.5

Bulgaria / Targovishte and Gorna Oriahovitza).

43.9

Small Grocery Shops

sDue to a combination of factors - high inflation rate driving 1.3

Street Vendors + open markets

1.1

1.0

29.8

26.2

MAT Q3 2006

MAT Q3 2007

Other

1.1

modern trade growth, deflation in price levels of food categories

25.1

22.4

and a decline of overall household expenditure, it is unlikely that

MAT Q3 2008

MAT Q3 2009

modern trade will continue to develop at the same rate. sIn October, the first six outlets of the Plus Discounter chain (Tengelmann) have been opened and the long delayed expansion

Bulgaria – Trade Channels

of hard discounters has moved forward. In the meantime another

Year-on-Year % Change (Value) Q1 2009

Total FMCG Supermarkets & Hypermarkets

2.1

16.1

Q3 2009

hard discounter Penny (REWE) opened its logistic centre close to

-0.6

the capital and has just opened its first 2 stores. 11.6

17.8

22.2

Discounters

23.5

35.1

sThe last discounter which will follow the strategy of opening a large number of stores is Lidl who are expected to open stores in

Cash & Carry

2.3

Small Grocery Shops

-24.1

-0.4

8.1

Street Vendors + open markets Other

Q2 2009

7.5

the spring of 2010.

13.3 -3.8

-2.5

0.5

28.9

23.2

-12.5

-14.9

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Croatia

Q3 2009

Q3 2009 Key Indicators Croatia – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

-6.3% (Q2 09)

GDP (Value) Rate of Food Inflation (Value)

NA

Q4 2008

Total FMCG Chilled Foods

+15.0% +8.1%

Frequency of FMCG Purchase Average FMCG Basket Size (Value)

-0.7%

61.1

Alcohol

1.8 5.4

Personal Care

6.3

Petfood

3.2

7.4

-7.7

-9.1

-1.0

10.4

-9.4

11.5 0.3

16.6

Home Care

Q3 2009

7.1

-11.5

Soft Drinks

Q2 2009

-3.3

-6.4

Packaged Grocery

Rate of Unemployment

Q1 2009

20.4

1.0

16.2

-1.8 -0.2

4.2 26.0 13.7

-0.2

14.9

21.9

24.6 19.9 30.8

Croatia – Trade Channels FMCG Value Share 14.7

16.7

17.5

19.8

31.6

31.6

28.9

2.2

3.5

5.3

53.2

49.5

47.4

46.1

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Hypermarkets

32.1

Supermarkets

sLidl, the only discounter in Croatia, continues to grow. Lidl's focus on Private Label and weekly promotions resulted in growth from quarter to quarter.

Discounters

Other

sHypermarkets are growing significantly thanks to several new openings of Interspar stores as well as the re-opening of Ipercoop stores in April and May this year (Interspar bought Ipercoop stores which were temporarily closed for redecoration. Hypermarkets kept the store name "Ipercoop“).

Croatia – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

-3.3

Hypermarkets

Supermarkets

Q3 2009

7.1

13.8

7.4

23.4

-13.0

25.3

-0.1

0.8

37.3

Discounters

Other

Q2 2009

-6.0

49.9

50.2

2.1

TM

1.7

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Czech Republic

Q3 2009

Q3 2009 Key Indicators Czech Republic – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

-5.8%(Q2 09)

GDP (Value)

Q4 2008

Total FMCG Food Price Index

Rate of Food Inflation (Value)

-4.9%

+1.6% +7.2%

+59.7%

Frozen Foods

30.5

+13.6%

Soft Drinks Personal Care

Average FMCG Basket Size (Value)

-5.3%

FMCG Value Share

33.1 33.7

34.2 34.4

35.2 35.0

36.9 36.3

17.4

17.2

18.7

19.6

21.2

21.7

20.8

19.5

2.6

3.0

2.8

2.2

20.1

19.1

19.2

18.1

0.2 4.7

0.2 4.7

0.2 3.1

0.2 3.4

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Supermarkets Discounters Cash & Carry Small Grocery Shops Street Vendors + open markets Other

Year-on-Year % Change (Value) Q1 2009

Q2 2009

7.4

Hypermarkets

9.8

Discounters

18.1

-3.0

Small Grocery Shops Street Vendors + open markets Other

1.7

2.4

3.0

0.6

9.0

37.7

21.2 28.5

TM

11.9 28.8

11.0 28.4

3.9

16.1 13.9

25.9

18.5

8.3

15.8 18.2

6.1

sSupermarkets increased their share to 19.4% in Q3 2009. Compared to Discounters, whose share dropped to 19.1%, both formats now hold similar market share.

-35.2 23.9

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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6.0

8.6

7.2

21.6

10.7

2.9

28.7

4.6

4.0

4.3

22.2

16.6

-2.6

Cash & Carry -25.6

11.1

18.1

9.3

14.3

22.8

Supermarkets

Q3 2009

11.0

Pet Foods

27.1 5.0

sMakro, the only retailer in the Cash & Carry format in the Czech Republic - maintains a stable position amongst other formats.

Czech Republic – Trade Channels

Total FMCG

Home Care

1.5

sHypermarkets continue to be the key format and have increased their share of expenditure in Q3 2009. This trend continues the growth seen in previous periods. Tesco, Globus and Kaufland, with the greatest share, are strengthening their position. Only Albert Hypermarket (the new name of Hypernova) has suffered a decrease in expenditure.

Czech Republic – Trade Channels

Hypermarkets

8.4

8.6

-4.9%

2.7

-2.5 -0.2

9.3

+1.1%%

1.3

9.7

Q3 2009

11.0

-1.4%

12.3

Packaged Grocery

Alcohol

Frequency of FMCG Purchase

Q2 2009

7.4

Fresh Foods -13.1 Chilled Foods

Rate of Unemployment

Q1 2009

8.5

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Consumer Index

Greece

Q3 2009

Geece – Category Trends

Q3 2009 Key Indicators

Year-on-Year % Change (Value) Q4 2008

Year-on-Year % Change -0.4% (Q2 09)

GDP (Value)

Total FMCG

18.2

+1.9%

Food Price Index

+22.7% (Q2 09)

Non Alcoholic Drinks

Frequency of FMCG Purchase

+5.9%

Dairy Products

4.6

Average FMCG Basket Size (Value)

-2.4%

Personal & Home Care

4.8

Rate of Food Inflation (Value) Rate of Unemployment

Q2 2009

Q1 2009

3.6

5.4

+3.7%

+4.4%

13.7

-2.2

-8.8

-6.3

Q3 2009

3.8

+1.9%

+3.3%

-2.4

-6.7

-7.1

-0.6

-16.6

-9.4

sThe main trade channels for Groceries in Greece are Supermarkets, Discounters and Traditional stores, with supermarkets being the predominant one with a 80% FMCG value share.

Greece – Trade Channels FMCG Value Share

Supermarkets

80.4

80.0

80.7

12.4

13.0

12.2

7.1

7.0

7.1

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Discounters

Other

Greece – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

3.6

Supermarkets

1.9

Discounters

1.4

Other

Q2 2009

Q3 2009

5.4

3.8

7.7

7.1

-7.4

sCarrefour and AB (which belongs to the Belgian group Delhaize) are part of international groups while the rest of the channel is dominated by local chains. There is a high concentration in the market as the top 5 banners contribute to 54% of the FMCG market value and the trend is towards bigger concentration as larger chains buy off smaller local banners. sDiscounters (Lidl, Aldi, Dia) have also become important in the last years, however not as much as in other European countries (they hold around 12% value share). After a good performance and an increase in market share in 2008, Discounters have been facing a decline in 2009. This is mainly due to Lidl's decision to delist several branded products from the discounter's assortment, thus losing in spend - but not in penetration.

-5.6

27.6

2.5

TM

-15.1

Please note: All values expressed in Euro

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Consumer Index

Hungary

Q3 2009

Q3 2009 Key Indicators Hungary – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-7.2%

Rate of Food Inflation (Value)

+3.0%

Q4 2008

Total FMCG Food Price Index Chilled Foods

+7.2% +4.5%

Packaged Grocery

+22.0%

Rate of Unemployment

3.7

Frozen Foods -11.8 Alcohol

+3.9%

Frequency of FMCG Purchase

Soft Drinks

-17.0%

Home Care

Hungary – Trade Channels FMCG Value Share

Hypermarkets

25.3

26.2

26.6

25.0

14.0

13.8

15.1

19.7

21.7

23.5

22.8

20.7

3.3

3.2

2.3

27.8

25.8

24.4

23.9

1.3 6.3

1.1 6.4

1.1 6.8

1.3 7.2

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Supermarkets Discounters Cash & Carry

3.7

Small Grocery Shops Street Vendors + open markets Other

1.6

Year-on-Year % Change (Value) Q1 2009

Hypermarkets

-5.2

-1.2

-10.8

2.6

Other

2.3

2.3

6.9 -3.6

-6.8

-2.0

-4.0

1.7

-6.7 33.0

25.4

19.8

sThe total value of FMCG dropped slightly in the third quarter of 2009 compared to the same period in 2008. Dog and cat food continued to increase this period, while home-and personal care products fell in value compared to the previous year. sSupermarkets still did well in the third quarter of 2009, they reached a market share of 22,2%, which has never been so high. Plus has ceased to exist in Hungary after Spar finished the restructuring of Plus discounts to Spar supermarkets in this period.

41.4

-46.4 -3.7

Street Vendors + open markets

-8.2

-17.5

-28.0

-10.8

4.9

-3.3

4.4 -9.2

-9.0 28.1

25.3 -12.7

Cash & Carry -25.7 Small Grocery Shops

Q3 2009

-0.2 -3.7

-11.2

Supermarkets Discounters

Q2 2009

-1.9 -5.5

+3.0% -1.4

-0.7

sTesco hypermarkets performance decreased from July to September.

Hungary – Trade Channels

Total FMCG

-10.3

-1.0

Pet Foods

+5.8%

-3.7

-0.5

Q3 2009

-1.2

-0.2

-3.1 -3.3

-6.4

Personal Care

Average FMCG Basket Size (Value)

+4.5% -8.0

-3.2

Q2 2009

Q1 2009

-5.2

-1.0

-1.4 30.8 6.9

TM

28.2 0.8

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Poland

Q3 2009

Q3 2009 Key Indicators Poland – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

Q4 2008

+1.2%

13.7

Total FMCG

Rate of Food Inflation (Value)

+4.7%

Food Price Index

Rate of Unemployment

-0.6%

Frequency of FMCG Purchase

-0.5%

Average FMCG Basket Size (Value)

Poland – Trade Channels FMCG Value Share

Hypermarkets

19.3

19.6

21.2

21.9

Supermarkets

15.4

16.8

16.5

17.1

16.7

17.4

19.2

Discounters

1.6

Cash & Carry Small Grocery Shops

1.7

36.1

21.7

1.7

34.5

1.9

32.2

Street Vendors + open markets

28.8

2.3 8.5

2.1 8.0

1.9 7.4

1.6 7.0

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Other

Poland – Trade Channels

+3.9%

6.3

17.7

Soft Drinks

18.9

Home Care

+4.7%

-1.7

-1.2

1.1 6.2 -0.3

1.1

3.9

5.6

15.0 5.0

Q3 2009

+7.0%

-3.2

Packaged Grocery

Personal Care

Q2 2009

2.3

+3.2% +7.2%

Chilled Foods

+17.4%

Q1 2009

8.5 1.2

0.9 4.2 6.3

4.4 0.5

0.7

sCompared with Q3 2008 Discounters noted the highest increase (+15%), mainly due to Bierdronka (Jerónimo Martins) which has experienced a healthy growth in terms of penetration and expenditure compared to the same period the previous year. sThe most important channel in terms of expenditure is still Small Grocery Shops (value share 29%), followed by Discounters & Hypermarkets. However, Small Grocery noted a decrease (-9.1 %) in comparison with Q3 2008 as shoppers turned to Discounters for a cheaper offering. This search for lower prices during the difficult economic period is also driving the growth of private label brands.

Year-on-Year % Change (Value) Q1 2009

Q2 2009

Total FMCG

2.3

Hypermarkets

3.3

Street Vendors + open markets Other

-7.2 -14.8

15.3

8.1 -5.8

11.8 -9.1

-10.8 -5.1

9.7 15.0

14.2

Cash & Carry Small Grocery Shops

-1.3

7.2 15.7

Discounters

1.1

8.2

7.3

Supermarkets

Q3 2009

3.9

-18.1 -1.0

TM

-2.1

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Romania

Q3 2009

Q3 2009 Key Indicators Romania – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value) Q4 2008

-8.7% (Q2 09)

GDP (Value)

Total FMCG

Rate of Food Inflation (Value)

+2.6% +10.3% (Q2 09)

Rate of Unemployment

Food Price Index

Q1 2009

12.7 +7.2% +6.6%

+5.9%

Chilled Foods

22.7

21.7

Packaged Grocery

26.2

20.1

Alcohol -20.6

Frequency of FMCG Purchase

+4.7%

Average FMCG Basket Size (Value)

+6.5%

FMCG Value Share 6 16

Supermarkets

3 4

13

17

19

14

13

6 3

8 2

42

41

Discounters Cash & Carry

50 46

Small Grocery Shops Street Vendors + open markets

5

4

3

4

Other

16

14

14

13

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Q2 2009

17.8

Hypermarkets

24.5

Supermarkets

Cash & Carry Small Grocery Shops

-2.9

Other

-30.0 7.8

19.4

7.4 -1.4

-2.6

TM

18.0

14.1

13.6

14.5

8.4

16.7

12.6

Personal Care

22.3

16.8

Home Care

23.6

17.9

22.0

14.6

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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14.8

59.2

15.7

27.1 6.1

6.4 51.7

-17.5

Street Vendors + open markets

20.7

37.9

14.5

3.9

sIn-home consumption showed significant value growth rates, particularly chilled food dairy (milk, sour cream, semi hard cheese), home care products (kitchen towels, toilet cleaners, carpet cleaners, toilet paper), alcoholic drinks (beer).

10.8

4.8 65.8

Discounters

11.8

19.7

Q3 2009

16.9

11.7

25.7

sTraditional small grocery shops still hold an important value share but at a constant level during last year (~42%).

Year-on-Year % Change (Value) Q1 2009

10.8 +2.6%

sDiscounters have performed well, gaining almost 3% points in value share compared with same period last year (from 6.4% to 9.2%), thanks to Plus and Profi stores. In the meantime, Supermarkets continued to lose ground to the other store formats.

Romania – Trade Channels

Total FMCG

13.6

+6.4%

Q3 2009

sThe Hypermarket channel continues to develop, accounting for around 19% of total sales. Kaufland strengthened its position, now with more than 7% of total spend. This is followed by Real and Carrefour Hypermarkets. Carrefour Group continued its territorial expansion with a new banner for supermarket format – Carrefour Market.

15 5 4

Soft Drinks

16.9

sAlthough the Romanian FMCG market registered a double digit increase in terms of total expenditure (~11%), this is the lowest level of FCMG growth rate over the last two years.

Romania – Trade Channels

Hypermarkets

Q2 2009

17.8

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Consumer Index

Russia

Q3 2009

Q3 2009 Key Indicators Russia – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

Q4 2008

NA Total FMCG

Rate of Food Inflation (Value)

+20.8%

Food Price Index

+17.1%

Rate of Unemployment

-32.7% +95.7%

Average FMCG Basket Size (Value)

22.8

21.4

27.7

5.5

Personal Care

6.8

Home Care

26.9 36.8 46.1

29.2 36.8

17.7 9.1

19.7

3.6 21.5

28.5 31.7

14.0

14.5

Alcohol Soft Drinks

35.6 +20.8%

39.6

24.9

Packaged Grocery

Q3 2009

33.6 +17.5%

+19.7%

28.2

Frozen Foods

Frequency of FMCG Purchase

Q2 2009

24.2

19.8

Fresh Foods Chilled Foods

NA

Q1 2009

22.3

18.6 25.0

29.1

47.9 32.9 34.5 17.6 31.7 29.5

Russia – Trade Channels FMCG Value Share 2.2 6.3 5.8 0.5

Hypermarkets

3.4 8.7

3.6 9.8

8.4 0.7

10.3 0.8

Supermarkets

5.4 11.6

34.4 31.8

Discounters

32.9

11.0 1.0

sModern Trade channels continued to gain share.

30.8

sMost supermarket banners enjoyed value growth while Hypermarkets grew mainly due to Magnit Hyper, Karusel (X5) and O'Key growth and Cash&Carry was driven by Lenta and Metro growth.

Cash & Carry 21.8

Small Grocery Shops Street Vendors + open markets

19.4

16.6

17.6

29.2

27.5

25.9

22.6

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Other

sAs before Street Vendors and Open Markets continued to lose share in Russia, part of the reason for the decreasing frequency along side increasing trip size seen for FMCG.

Russia – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

Q2 2009

24.2

Hypermarkets

91.5

Cash & Carry Small Grocery Shops

23.5 30.5 13.0

Street Vendors + open markets Other

129.8 68.8

58.2 45.0

43.4

36.4 23.7 48.2

43.5 5.1

35.6 109.8

60.2

Supermarkets Discounters

Q3 2009

33.6

12.3

TM

sAmong discounters, Magnit was the most successful and continued to increase.

122.0 24.6 41.7 13.4

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Serbia

Q3 2009

Q3 2009 Key Indicators Serbia – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

NA

Rate of Food Inflation (Value)

NA NA

Rate of Unemployment

-5.3%

Frequency of FMCG Purchase

+10.1%

Average FMCG Basket Size (Value)

Q4 2008

Total FMCG

Q1 2009

Chilled Foods

Q2 2009

4.7

18.2

1.3

13.1

42.3

1.5

Packaged Grocery

13.3

5.0

3.6

Alcohol

11.4

3.9

4.1

Soft Drinks

10.1

-2.8

Personal Care

10.3

-5.4

12.3

Home Care Pet Foods

-7.0

-3.7 -6.0 -3.1 1.9 -8.4

-5.6

-4.9

-1.0

-1.0

Q3 2009

6.3

0.1 23.9

-0.5

-6.5

Serbia – Trade Channels FMCG Value Share 5.0

4.9

4.9

5.1

17.9

19.5

22.0

23.4

3.0

4.7

5.9

6.4

Hypermarkets Supermarkets

sPrivate Label and promotions continued increasing during the crisis period.

Cash & Carry Small Grocery Shops

63.6

60.5

56.0

53.5

2.3 8.1

2.4 8.0

3.2 8.1

3.4 8.1

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Street Vendors + open markets Other

sSupermarkets decreased the most this quarter, including Maxi, the leading supermarket. sDelta Maxi, a leading retailer on Serbian market, has opened the first hard discounter named Tempo Express and continues its expansion. There are currently ten stores, consisting mainly of private label products.

Serbia – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG

11.5 -0.6

-1.7 -2.9

0.1

-0.4

-2.9 -9.0

5.7

18.0

Street Vendors + open markets Other

1.6

13.3

Cash & Carry

-3.7

4.0

11.6

Supermarkets

Q3 2009

1.3

4.7

Hypermarkets

Small Grocery Shops

Q2 2009

0.2

-4.2 6.0

TM

2.0

Please note: - Category, channel data and Average Basket size data are based on local currency - GDP and inflation rates are based on Euro currency

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Consumer Index

Slovakia

Q3 2009

Slovakia – Category Trends

Q3 2009 Key Indicators

Year-on-Year % Change (Value) Q4 2008

Year-on-Year % Change GDP (Value)

-4.9%

Total FMCG

7.1

Food Price Index

+3.3%

Chilled Foods

Rate of Food Inflation (Value)

-5.6%

Packaged Grocery

-11.1%

Soft Drinks Personal Care

+11.9%

Average FMCG Basket Size (Value)

Home Care Pet Foods

FMCG Value Share

23.6

24.8

25.8

28.1

23.5

23.7

24.9

24.6

14.8

14.0

2.3

2.0

Supermarkets Discounters Cash & Carry Small Grocery Shops

12.8

13.4

2.2

2.4

30.7

28.4

25.5

24.4

0.1 7.1

0.1 7.2

0.1 6.5

0.1 6.8

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Street Vendors + open markets Other

Year-on-Year % Change (Value) Q1 2009

Total FMCG Hypermarkets

-5.0

Supermarkets

-3.5

Discounters Cash & Carry

-22.9

Other

Q3 2009

0.2

0.4

-3.3

-31.1

-3.7

-9.4 1.9

-11.3 50.2

6.4

-6.4

-12.6

-17.3

-5.8

10.2

TM

-4.3

51.3

sThe heavy promotion and introduction of new loyalty cards by retailers in Slovakia (e.g. Tesco’s Club Card) has seen consumers reduce shopping trips to neighbouring countries (Hungary, Czech Republic, Poland, Austria) preferring instead to shop in Slovakia. Hypermarkets have seen their growth continue in Q3 2009.

-18.4

-7.5

Please note: All indicators are based on Euro currency.

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3.4

-8.1

-1.9 -8.2

-2.2

15.1

-10.7

-32.8

Small Grocery Shops Street Vendors + open markets

Q2 2009

16.3

3.2

sLidl is communicating more promotions through Television and has attracted a greater number of consumers as a result. Discounters overall have seen their Value sales grow by over 6% compared with Q3 2008.

Slovakia – Trade Channels

-8.9

2.7

sA new retailer in the Drugstore format has begun trading in Slovakia. Small, affiliated drugstores have been grouped under the TETA Drogerie brand. This formula has been very successful in the Czech Republic and has now been introduced in Slovakia.

Slovakia – Trade Channels

Hypermarkets

9.4

-4.1

35.2

28.8

-7.4

-21.6

4.0

1.8

19.4

-9.4

10.9

-5.6% -4.5

7.3

-4.1

13.5 1.7

0.4

-1.3%

44.5 -8.4

Alcohol

Q3 2009

-6.7

-10.2

9.0

Frozen Foods

Frequency of FMCG Purchase

Q2 2009 0.2

+0.0%

3.9

+28.5%

Rate of Unemployment

Q1 2009 -8.9

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Consumer Index

Ukraine

Q3 2009

Q3 2009 Key Indicators Ukraine – Category Trends

Year-on-Year % Change

Year-on-Year % Change (Value)

GDP (Value)

NA

Rate of Food Inflation (Value)

NA NA

Rate of Unemployment

-5.4%

Frequency of FMCG Purchase

Q4 2008

38.0

Fresh Foods

35.7

Chilled Foods

33.1

Frozen Foods Alcohol

+14.2%

Personal Care Home Care

FMCG Value Share 10.7 1.2 1.7 12.7

11.5 1.6 1.6

12.5 2.2 1.8

0.7 11.6 2.9 1.8

12.3

12.6

13.3

50.4

50.1

48.7

48.2

23.2

22.9

22.2

21.5

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Supermarkets Discounters Cash & Carry Small Grocery Shops Street Vendors + open markets Other

Ukraine – Trade Channels Year-on-Year % Change (Value) Q1 2009

Total FMCG Hypermarkets Supermarkets Discounters

Q2 2009

Q3 2009

16.6

18.3 140.1 10.2

43.6

84.0

46.2

-6.4 53.1

Cash & Carry

14.7

19.7

Small Grocery Shops

13.0

21.3

Street Vendors + open markets

17.5

17.1

21.1

14.1

Other

8.7

1.0

TM

41.7

5.8

12.1

23.2

21.0

25.8

23.6

16.8

23.6

6.6

3.8

2.5

3.2 27.4

2.3

7.9 27.9 46.2

16.9 -2.2

30.2 45.5

23.5 31.8

sThe retailer ATB has kept its position as market leader not only among Discounters but all retail chains. Since the beginning of 2009, ATB opened 40 new stores from January to August and subsequently announced the opening of a further 30 stores by the end of year. sAmong Traditional Trade, Small grocery shops continue to show overproportional growth and increased share. The limited assortment of Supermarkets have seen consumers switch to Traditional Trade. Also, purchases in Small Shops allow for less impulse/spontaneous purchases. The Value share of Private Label in the Ukraine remains small.

32.8 4.8 34.0 9.6 -5.5

Please note: - Category, channel data and Average Basket size data are based on local currency. - GDP and inflation rates are based on Euro currency

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28.3

8.7

sAmong the modern trade channels, Hypermarkets and Discounters continue to show the most positive development, though their respective shares remain small. Auchan and Karavan are among the most successful retailers within the Hypermarket channel. Auchan has taken over the sales area of the Estonian retailer OKEY, which leaves the Ukrainian market due to debts. As a result, Auchan will see its number of stores double (from 4 to 8) by the end of the year.

Ukraine – Trade Channels

Hypermarkets

22.3

Q3 2009

16.6

10.9

22.0 30.1

Q2 2009

18.3

43.8

Packaged Grocery

Soft Drinks

Average FMCG Basket Size (Value)

Q1 2009

Total FMCG

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Consumer Index

Definitions CATEGORIES UNIVERSE: FMCG: Fast Moving Consumer Goods (includes foods, personal care and home care; excludes clothes, white goods etc...) Total FMCG is not necessarily the sum of the categories shown below it.

Categories: sFresh Foods: fresh fish, fresh meat, fresh poultry/game, fresh fruit, vegetables, salads sChilled Foods: chilled deli products, chilled dairy products, chilled bakery products s Packaged Grocery: bread, biscuits, canned goods, hot beverages, packet breakfast, pickles, sauces, condiments, savoury carbohydrates and snacks, home cooking ingredients, take home confectionery and savouries sSoft Drinks: carbonated soft drinks, chilled drinks and mineral water sHome Care: softeners, detergents and rinse conditioners sPersonal Care: bathroom toiletries, hair care, healthcare, oral care, other toiletries

TRADE CHANNEL DEFINITIONS: Hypermarkets

Supermarkets Mainly food assortment; over 400 m2 (Konzum, Interex, Dzanovic, Robot Commerce, Zvornicanka, Mercator, Tropic, Bingo...)

Discounters

Small Grocery Shops

Street Vendors + open markets

Velpro, Slavija

n/a

Kaufland

Fantastico C&C, Metro C&C

ARO, CBA Minimarkets, Street Vendors, Fantastico Minimarkets, Magazin Open Markets 345, T-Market, Minimarkets, Vendors Market Halls, Mixed Assortment

Agro & Food stores, specialized stores: bakeries, butchers, chemists, etc, door-to-door, kiosks, mail order houses / subscr., petrol stations, tobacconists, etc.

Getro, Metro

n/a

n/a

Offering a broad food and non-food assortment; selling to licensed customers (Getro, Metro); Specialist stores: pet shops, fruit shops, chocolate shops and butchers, kiosks, open market places, door-to-door, producer/farmer, mail order, gas stations, news stands; Smaller food/grocery outlets up to 400 m2 (Local convenience stores, Bakmaz, Billa (Minaco), Boso, Diona, Idis, Kerum, Konzum, KTC, Mercator, Pemo, Prehrana, Presoflex, Studenac, Tommy, etc.)

Makro, Hopi C&C

Small self-service grocers: Spar, COOP / Jednota, COOP / Jednota Tuty Over-the-counter specialists

Street Vendors, Open Markets Vendors

Family Frost, petrol station, etc.

Offering a broad food and non-food assortment. Usually offering large car parks.(Interex, Mercator, Robot Commerce, Merkur, Tom, Bingo...)

Bulgaria

HIT, Ramstore Hypermakets, Billa, Boila, Bonjour, Burlex, CBA Supermarkets, ENA, Familia, Fantastico Supermarkets, Oazis, Piccadilly, Ramstore Supermarkets, Other Supermarkets Mainly food assortment; over 400 m2 (Bakmaz, Billa, Biljemerkant, Boso, Diona, Idis, Jolly, Kerum, KTC, Maxi Konzum, Mercator, Pemo, Plodine, Presoflex, Studenac, Tommy, etc.)

Limited range of food, often selling directly from pallets, focused on price (Lidl)

Croatia

Offering a broad food and non-food assortment. Usually offering large car parks.(Interspar, IperCoop, Kaufland, Mercator hypers, Super Konzum)

Globus, Kaufland, Interspar, Hypernova/Hyperalbert, Tesco hypermarket, COOP Terno, Hypermarket

Albert, Billa, Tesco diskont, COOP / Jednota Tempo, COOP / Jednota Tip, COOP Supermarket; independents

Lidl, Penny Market, Plus, Norma, COOP Diskont, Diskont

n/a

Dia, Lidl, Aldi Group Carrefour, Sklavenitis, AB-Vasilopoulos, Veropoulos (Spar), Galaksias, Atlantik, Masoutis, My Market, Arvanitidis, Other

Greece

Others

Limited range of food, often selling directly from pallets, focused on price (Lidl)

Bosnia

Czech Republic

Cash & Carry

butchers, kiosks, open market places, door-to-door, producer/farmer, mail order, gas stations, news stands; Smaller food/grocery outlets up to 400 m2 (Lora, Klas, Dzanovic, DP Market, Braca Karovic, Bingo, Konzum)

Cash&Carry, Traditional stores (groceries, bakeries, etc), Other (beauty stores, gas stations, duty-free stores, pharmacies, pet shops…) Street Vendors, Open Markets Vendors

> 2,500 m2, more than 10,000 articles, at least 30% non-food, more than 10 cash registers (Auchan, Cora, Interspar, Tesco)

400-1,000 m2, food 400-2,000 m2, food and non food, 3-10 cash registers (Kaiser's, Match, and near-food range, Spar, bigger Coop, CBA and Real) cosmetics and chemical products, 3-10 cash registers (Lidl, Penny Market, Plus, Profi, Aldi)

Metro

Selling area less than 400 m2, 1 or 2 cash registers, range of food and non-food articles, belonging to named key account (small Coop, small CBA, small Real, small Honiker and Heliker shops) or being independent.

Auchan, Kaufland, Tesco, Intermarche, Carrefour, Real, E.Leclerc

ABC, Aldik, Alma, Asort, Billa, Bomi, Aldi, Biedronka, Lidl, Carrefour Minut, Carrefour Express, Netto, Plus Discount Dino, Duzy Sklep Wielobranzowy, Eko, Elea, E.Leclerc, Euro Sklep, Grosik, Jedynka, Marcpol, Piotripawel, Polomarket, Rossmann, Sano, Savia, Seic 34, Spar, Stokrotka, Tesco Express, Tesco, Topaz, Zatoka, Zielony Market

Eurocash, Makro, Selgros

Food and non-food, less than 3 cash desks

Street Vendors, Open Markets Vendors

Carrefour Hypermarket, Cora, Auchan Hypermarket, Spar Hypermarket, Real, Trident, Pic, Interex, Kaufland.

Food and non food products: Carrefour Express, Auchan Supermarket, Spar Supermarket, Mega Image, Billa, G’market, Angst, etc and independents

Metro Cash & Carry, Selgros Cash & Carry

Traditional shops, selling food and non food products, kiosks and agro & food stores (traditional over-the-counter shops for food, where you can also buy personal and household care products).

Other Shops: specialists stores, gas Street Vendors, market hall and open stations; drugstores; “Economat” stores, market vendors (open etc. spaces for trade, especially for food products).

Ramstore, O'Key, Auchan

Sedmoy Kontinent, Stolitsa, BIN, etc Kopeyka, Magnit, Pyaterochka, Kopeyka

Metro Cash&Carry

Limited food and non-food assortment

Street Vendors and Open Markets

Over 400m2 C Market, Pekabeta, M Rodić, Maxi, Jabuka, Si Market, Univerexport, Interex, Ziper 024, Impex Promet, IDEA Super, DIS, Tus, etc

n/a

Serbia

1000s m2, food and non-food assortment Mercator, Interex, Super Vero, M Rodić, Idea extra, Super Maxi, Tus

Stores with specific payment regulation and/or specific membership cards Tempo, Metro, Roda, Figrad, etc

Up to 400m2, miniMaxi, C Market, Pekabeta, M Rodić, Univerexport, Idea, Jabuka, Si Market, Višnjica, DIS, Luki Komerc, etc

Street Vendors, Open Specialist stores Drogeries (DM, Lilly), Perfumeries, Markets Vendors Pharmacies, Door-to-Door, Bakeries, Coffee Shops, Beverages discounts, Dairy Shops, Candy Shops, Kiosks, etc

Food assortment. Billa, Terno, COOP/Jednota

Limited range of food assortment, often selling directly from pallets, focused on price (Lidl, Rema 1000, etc.)

Selling to licenced customers only (retailers, small entrepreneurs (examples: Metro).

Small food-self service: Sama, Coop Small food retailers over-the-counter: Bala

Street Vendors, Open Gas stations, tobacconist´s/newsstands, etc. Markets Vendors

Slovakia

Food and non-food assortment, minimal sales area 2500 sqm, usually offering large car parks (examples: HM Tesco, Hypernova, Carrefour, Kaufland).

400-1,500 m2. ATB, Fora, Barvinok, etc.

Selgros & Makro for households and Metro for businesses

Selling mainly food, less than 3 cash registers, counter or selfservice

n/a

Hungary

Poland

Romania

Russia

Ukraine

More than 400m2. Silpo, Furshet, Billa, Velyka Kyshenya, Karavan, ProStor, Tam-Tam, Auchan, etc.

TM

Lower prices for food and non food products: Penny Market, Penny Market XXL, MiniMax Discount, Plus, Profi

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Mail order, direct marketing, D.I.Y etc.

Petrol stations, Pharmacies, Drugstores, Cosmetics shops, Kiosks, Wholesalers, etc

Drugstores, Petrol stations, etc.

Direct sales, specialized stores, etc.

Consumer Index

Source & Methodology METHODOLOGY: sA consumer panel is a permanent, syndicated and representative sample of consumers, who provide ongoing details of the fast moving consumer goods they purchase. Using the scanning methodology, each panel member records the details of every item they purchase. sSample sizes in number of households: Russia: 7,000 HHs; Poland: 5,000 HHs; Ukraine: 5,000 HHs; Czech Republic: 2,000 HHs; Hungary: 2,000 HHs; Bulgaria: 2,500 HHs; Romania: 2,200 HHs; Croatia: 1,500 HHs; Slovakia: 1,500 HHs; Serbia: 1,500 HHs; Bosnia&Herzegovina: 1,000 HHs; Greece: 1,250 HHs. sCategory, channels data and Average Basket size data are based on local currency.

KEY INDICATORS: Panel data indicators sFrequency of FMCG purchase: Frequency of FMCG purchase during the quarter compared with the same quarter the previous year. sFMCG Average Basket Size: Average amount spent per trip in FMCG during the quarter compared with the same quarter the previous year.

Eurostat data indicators: sFood price index : Harmonized Indices of Consumer Prices (HICPs) are produced and published using a common index reference period (2005=100). sUnemployment : Unemployed persons comprise persons aged 15 to 74 who were without work during the reference week, were currently available for work and were either actively seeking work in the past four weeks or had already found a job to start within the next three months. sConstant Price GDP (based on Euro currency): Gross domestic product (GDP) at market prices is the final result of the production activity of resident producer units (ESA 1995, 8.89). It is defined as the value of all goods and services produced less the value of any goods or services used in their creation. Data are calculated as chain-linked volumes (i.e. data at previous year's prices, linked over the years via appropriate growth rates). Growth rates with respect to the previous quarter (Q/Q-1) are calculated from calendar and seasonally adjusted figures while growth rates with respect to the same quarter of the previous year (Q/Q-4) are calculated from raw data.

KEY COUNTRY FACTS: Source: CIA World Fact Book Individual Population Number Of Households (in 000's) (in 000's)

Country Bulgaria Bosnia & Herzegovina Croatia Czech Republic Greece Hungary Poland Romania Russia Federation Serbia Slovakia Ukraine

GDP per Capita (2008 est.)

2,908 1,114 1,477 4,423

7,680 3,900 4,439 10,349 10,737 10,051 38,115 21,680 142,221 7,498 5,400 46,424

$12,900 $6,500 $18,400 $25,900 $32,100 $19,800 $17,400 $12,200 $16,100 $10,800 $22,000 $7,400

3,811 13,350 7,320 52,700 2,521 1,900 18,200

The Europanel Consumer Index is part of the Consumer Index series TM

PANEL Worldpanel - Asia

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Q3 20

09

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Consumer Index United States of America

Welcome to the Q3 2009 edition of Consumer Index. We hope you find it interesting. Please do not hesitate to contact us if you have any questions or comments.

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Consumer Index

Q3 20

09

United States of America

Q3 2009

Total FMCG Trends % Change (Value) MAT Q3 09 vs. MAT Q3 08

5.6 3.5

Q3 09 vs. Q3 08

NORTH CENTRAL

7.0

TOTAL TOTALUS US

NORTH EAST

3.7

6.2 3.8 WA ME

MT

3.0

VP

WI

WY

2.4

NY

MN

SD

ID

WEST

ND

NI

OR

PA OH

IN

NV

UT

CO

RI

MT

IA

NE KS

WV

IL

VA

KY

MO

NC

TN CA

OK AZ

NM

SC

AR MS

TX

MA

CT

AL

NJ DE MD

SOUTH

6.1

3.9

GA

LA

WESTERN NORTH CENTRAL SOUTH NORTHEAST

FL

Categories Overview s4HE RECESSION IS DRIVING SOME CHANGES IN CONSUMER BEHAVIOUR )NDEED IN VIRTUALLY EVERY CATEGORY OF CONSUMER PACKAGEDGOODS EVIDENCEOFLIFESTYLECHANGEANDADAPTIVEBEHAVIOURCANBEOBSERVED4HECATEGORYOFSPIRITSISNO EXCEPTION.OTONLYHASTHEAMOUNTOFALCOHOLBEINGCONSUMEDONANANNUALBASISCHANGEDCONSIDERABLYDURINGTHE RECESSION ITISALSOEVIDENTTHATCONSUMERSAREINCREASINGLYCONSUMINGATHOMERATHERTHANINBARSANDRESTAURANTS/NE KEYDRIVEROFTHISELEVATEDLEVELOFCONSUMPTIONISTHEFACTTHATMANYYOUNGADULTSARESTILLEXPERIMENTINGWITHALCOHOL s4HEHEALTHIEREATINGTRENDˆSPURREDBY!MERICANSFEDUPWITHRISINGRATESOFOBESITYANDDIABETESˆHASHELPEDBOOST FRESHFRUITANDVEGETABLESCONSUMPTION s%VENTHE0ERSONAL#AREHASNOTBEENIMMUNETOFALLOUTFROMTHERECESSIONARYECONOMY#ONTINUINGCONCERNOVERTHE RECESSIONISCAUSINGCONSUMERSTOSEEKOUTWAYSINWHICHTHEYCANhTRADEDOWNvTOLESSEXPENSIVEGOODSANDSERVICES 7HAT THIS MEANS FOR 0ERSONAL #ARE IS THAT INSTEAD OF PURCHASING MORE EXPENSIVE BRANDS CONSUMERS ARE TURNING TO VALUE SIZEDORMULTI ACTIONPRODUCTS s$ESPITETHERECESSION SALESOFPETFOODANDSUPPLIESHAVEHELDSTRONG ASMOSTPETOWNERSREMAINCOMMITTEDTOFEEDING ANDCARINGFORTHEIRPETS)NCREASEIN0ETPOPULATIONISALSOTHEMOSTFUNDAMENTALDRIVEROFPETFOODSALES s4HECHALLENGINGECONOMYISFORCINGCONSUMERSTOBUY0RIVATE,ABELTOSTRETCHTHEIRSHOPPINGBUDGETS0ACKINGOFTHE 0RIVATE,ABELPRODUCTSHASBEENIMPROVEDFROMGENERICBLACK AND WHITELABELSTOCOLOURFULPACKAGESIMPARTINGA SENSEOFQUALITYANDPRESTIGE0RIVATE,ABELSHAREOFSPENDINGVARIESACROSSRETAILCHANNELSANDREMAINSHIGHESTINTHE GROCERYCHANNEL0RIVATELABELgSSTRONGESTGROWTHPERFORMANCETENDSTOBESUCHCATEGORIESAS"UTTER )CE#REAM3HERBET &ROZEN-EAT .ATURAL#HEESE 4OMATOPRODUCTS &ATFORCOOKINGAND/ILTONAMEAFEW TM

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Q3 20

09

Consumer Index

United State of America

Q3 2009

Q3 2009 Key Indicators USA - Category Trade

Year - on - Year % Change

Year-on-Year % Change (Value)

GDP (Value)

-1.7%

Q4 2008

Total FMCG Food Price Index

Rate of Food Inflation (Value)

0.0% +9.6%

Frozen Foods

Soft Drinks Personal Care

-2.8%

Average FMCG Basket Size (Value)

Home Care Pet Foods

Q2 2009

8.8

7.9 5.3 2.6

6.7 10.5

0.0%

4.4

1.1

4.4

1.5

0.3 -1.6 8.9

7.7

4.9

4.7

5.8

2.1

2.9

4.2 10.7

4.5

2.2

1.6

2.3

5.7 4.3

3.9

3.1

2.4

5.2

3.5

-1.1%

4.0

0.7

Q3 2009

5.0

5.2

-0.1%

5.2

Packaged Grocery

Alcohol

+5.4%

Frequency of FMCG Purchase

+1.6%

Fresh Foods Chilled Foods

Rate of Unemployment

Q1 2009

6.1

9.9

8.8

USA - Trade Channels FMCG Value Share

Grocers Drug Stores

58.2

57.4

57.7

58.7

5.2 8.4

5.3 7.8

5.5 7.0

5.2 6.9

12.7

14.6

14.9

14.5

7.7

8.3

8.3

8.1

7.8

6.6

6.6

6.7

MAT Q3 2006

MAT Q3 2007

MAT Q3 2008

MAT Q3 2009

Mass Supercenters Club Stores Other

USA - Trade Channels Year-on-Year % Change (Value) Q1 2009

Q2 2009

All outlets

5.2

Grocers

5.3

Drug Stores Mass Supercenters Club Stores Other

3.9

7.2 9.0 4.6

5.0

3.5

7.1 2.9

2.8 1.1 3.4

TM

sMass channel retailers have shown growth of +2.5%. Due to the continual increase in gas prices the Mass merchandisers are leveraging their one-stop shopping convenience, low pricing and private label brands to appeal to time-starved consumers in difficult economic times.

Q3 2009

0.6

-2.0

sGrocery holds around 58.7% share of the total FMCG market in U.S. as they provide a broad range of general food and non-food merchandise including groceries and other food products, like meals, snack, alcohol, tobacco, health, cleaning and paper merchandise.

5.2 -1.5 2.5

sSupercenter channel retailers have shown growth of +0.3%. These were driven by better customer service and competitive prices, which offset obstacles such as higher energy costs and food inflation.

0.3 0.4 5.1

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Consumer Index

Source & Definitions METHODOLOGY: s!CONSUMERPANELISAPERMANENT SYNDICATEDANDREPRESENTATIVESAMPLEOFCONSUMERS WHOPROVIDEONGOINGDETAILSOF THE FAST MOVING CONSUMER GOODS THEY PURCHASE 5SING THE SCANNING METHODOLOGY EACH PANEL MEMBER RECORDS THE DETAILSOFEVERYITEMTHEYPURCHASE s3AMPLESIZE (OUSEHOLDS

CATEGORIES UNIVERSE: FMCG: &AST-OVING#ONSUMER'OODSINCLUDESFOODS PERSONALCAREANDHOMECAREEXCLUDESCLOTHES WHITEGOODSETC  Categories sFresh Foods: FRESHEGGS FRESHBREADROLLSRANDOMWEIGHTFRESHFOODSAREEXCLUDEDFRESHFISH MEAT FRUIT ORVEGETABLES  sChilled Foods:CHILLEDDELIPRODUCTS CHILLEDDAIRYPRODUCTS CHILLEDBAKERYPRODUCTS s Packaged Grocery: BREAD BISCUITS CANNED GOODS HOT BEVERAGES PACKET BREAKFAST PICKLES SAUCES CONDIMENTS SAVOURYCARBOHYDRATESANDSNACKS HOMECOOKINGINGREDIENTS TAKEHOMECONFECTIONERYANDSAVOURIES sSoft Drinks:CARBONATEDSOFTDRINKS CHILLEDDRINKS MINERALWATERANDJUICESOFALLTYPESREFRIGERATED BOTTLED CANNED FROZEN  sHome Care:SOFTENERS DETERGENTSANDRINSECONDITIONERS sPersonal Care:BATHROOMTOILETRIES HAIRCARE HEALTHCARE ORALCARE OTHERTOILETRIES sPet Food:CATFOODANDDOGFOOD

TRADE CHANNELS: sGrocers:4HISGOVERNMENT DEFINEDTERMENCOMPASSESANYRETAILSTORESELLINGFOODITEMSINCLUDINGNOTONLYSUPERMARKETS BUTALSOCONVENIENCESTORES SUPERMARKETSANDSPECIALTYSTORESSUCHASDELISBUTEXCLUDINGWHOLESALECLUB¬ sDrug store:4HOSESTORESTHATCARRY(EALTH"EAUTYITEMSINADDITIONTOPRESCRIPTIONMEDICINES ALONGWITHLARGERUNITS THATSELLCONSUMERPACKAGEDGOODS LIMITEDLINESOFFOOD PAPER ANDSEASONALITEMS sMass:$EFINEDASDISCOUNTSTORES GENERALMERCHANDISESTORES ANDVARIETYSTORESORDOLLARSTORES¬ sSupercenters:!RETAILUNITWITHAFULLLINESUPERMARKETANDAFULLLINEDISCOUNTMERCHANDISERUNDERONEROOFTHESTORE MAYHAVESEPARATEORCOMBINEDCHECKOUTS sClubs:4HESEMEMBERSHIPCLUBSTORESARECHARACTERIZEDBYHIGHVOLUMEONARESTRICTEDLINEOFPOPULARMERCHANDISEINTO ANO FRILLSENVIRONMENT4HEAVERAGECLUBSTOCKS 3+5gS WHICHAREGROCERYITEMS

KEY COUNTRY Y FACTS: Country

Individual Population Number Of Households (in 000's) (in 000's)

USA

301,621

114,996

North Central

66,389

26,100

Northeast

54,681

21,138

South

110,455

43,017

West

70,097

24,741

TM

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GDP per Capita (2007 est.) 46,000