INSIGHTS IN THE BAKING INDUSTRY Steve French – Managing Partner, NMI Todd Hale – SVP, Consumer & Shopper Insights, Nielsen April 21, 2013

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

TABLE OF CONTENTS •

Retail Landscape & Performance (3)

•

What’s Selling (13)

•

Health & Wellness Consumer Segmentation (31)

•

Key Takeaways (45)

2

RETAIL LANDSCAPE & PERFORMANCE

VALUE & CONVENIENCE WINNING Billions

All Departments – Dollar Sales & Trend $450 $400

Supermarkets 0.5%

Value* +4.7%

$350 $300 $250 $200

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

$150 $100

C-Stores +4.5% Drug Stores +1.5%

$50 $0

Low Growth

High Growth

Total measured channels: $759 Billion & up 2.7% Source: Nielsen Scantrack, Total U.S., 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded; *Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military

4

VALUE PLAYERS DRIVING STRONG GROWTH, BUT Billions

Bread & Baked Goods* – Dollar Sales & Trend $30

-0.4% Supermarkets

$25 $20

Value* 7.1%

$15

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

$10 $5

C-Stores Drug Stores

4.0%

0.2%

$0 No Growth

High Growth

Total measured channels: $37.5 Billion & up 2.1% *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S., 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded; *Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military

5

SMALL BOX & VALUE GROWTH FOR FROZEN, BUT Millions

Baked Goods-Frozen – Dollar Sales & Trend $1,800

-1.7%

Supermarkets

$1,600 $1,400 $1,200

Value*

$1,000

+7.4%

$800

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

$600 $400

C-Stores

Drug Stores

$200

+19.3%

+10.3%

$0 No Growth

High Growth

Total measured channels: $2.1 Billion & up 0.9% Source: Nielsen Scantrack, Total U.S., 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded; *Club Stores, Dollar Stores, Mass-Merchandisers, Supercenters, & Military

6

VALUE & CONVENIENCE GAIN W/EXPANSION U.S. Store Counts 140,655 149,220

Convenience 38,513 40,727

Drug

31,590 33,192

Supermarkets $2MM+

18,579 24,075

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Dollar Stores Mass Merch

4,578 4,184

Supercenters

2,462 3,861

Warehouse Clubs

67% + of growth from niche formats

1,067 1,261

2005 2012

Expansion from all formats but Mass in 2012 Source: Nielsen TDLinx

7

RETAILING AT THE EXTREMES 98% 94%

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

78% 75% 63% 44% 41% 34% 30% 23% 23% 22% 16% 15% 8%

Grocery Mass Dollar Drug Hardware/Home Improvement Department Convenience/Gas Club Office Electronics Pet Automotive Liquor News/Book Toy

99% 90% 39% 79% 77% 73% 24% 70% 50% 40% 40% 14% 31% 28% 16%

Channel Preference: % Household Penetration Income < $25K Source: Nielsen Homescan, 52 w/e 12/29/2012 - excludes gas-only or Rx-only trips

Income $200K+ 8

DIVERSE BANNER ATTRACTION 32%

Aldi/Save-A-Lot

31%

Kroger Corp Grocery

30%

Safeway Corp Grocery

32%

13%

Whole Foods

3% 84%

17%

Walmart

67%

Target

42%

Kmart

30%

71% 18%

Walgreens

49%

47%

CVS

37%

Rite Aid

22% Copyright ©2013 The Nielsen Company. Confidential and proprietary.

11%

Sam’s Club

18%

51% 22% 24%

Costco

10%

BJs’s

5%

45% 12%

Banner Preference: % Household Penetration Income < $25K Source: Nielsen Homescan, 52 w/e 12/29/2012 - excludes gas-only or Rx-only trips

Income $200K+ 9

RETAIL 2017 – WHAT’S IN STORE?

E-COMMERCE THE BIG WINNER

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

CAGR 2012 to 2017 E-Commerce Supercenters Pet Dollar Club Discount Dept Drug Sporting Goods Conv/Gas Home, Bed, Bath Supermarkets Auto Hardware Home Improvement Liquor Department Apparel Electronics Office Toy Books Mass Merch

Winning Share Average Growth Losing Share

-10 Source: Nielsen TDLinx & Nielsen Analytics

-5

0

5

10

15 11

NATURAL GOURMET TAKING BIGGEST SHARE BITE Supermarket Channel $ Shares 100 Point Change vs. 2012

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

75

Limited Assortment Deep Discount*

+ 0.7

50

Natural Gourmet**

+ 2.2

25

Mainstream Supermarkets

-2.9

0 2006

2012

2017 forecast

2012 CAGRs at 1.4%, 8.4% & 5.8% Source: Nielsen TDLinx & Nielsen Analytics; *Aldi & Save-A-Lot; **Whole Foods, Trader Joe’s, Fresh Market & Sprouts

12

WHAT’S SELLING?

INFLATION & DEMAND DRIVING GROWTH

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

All Outlets Combined (plus Convenience) – Dollar Trend Total All Departments Alcoholic Bevs Fresh Meat Deli Fresh Produce HBA Dry Grocery Bread & Baked Goods* Non-Food Grocery Packaged Meat Frozen Foods Dairy Baked Goods-Frozen General Merch

3

-1

1 1

2 2

2 2

3

4

4

5

5

6

Fresh Meat prices up 6% + for last year; Alcoholic Beverage prices flat *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

14

DIFFERENT STORY IN SUPERMARKETS

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Supermarket – Dollar Trend Total All Departments Alcoholic Bevs Fresh Meat Fresh Produce HBA Deli Dry Grocery Packaged Meat Bread & Baked Goods* Dairy Frozen Foods General Merch Non-Food Grocery Baked Goods-Frozen

0

-2 -2 -2

-1

0 0

0 0

2 2 2

4

5

Slower growth & more negative departments *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

15

CONSUMERS SHIFTING SPEND OR BUYING LESS

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

All Outlets Combined (plus Convenience) – Unit Trend Total All Departments Alcoholic Bevs Fresh Produce Deli HBA Non-Food Grocery Bread & Baked Goods* Packaged Meat Dairy Dry Grocery Frozen Foods Fresh Meat General Merch Baked Goods-Frozen

0

-2

-2

0 -1

0

0

1 1 1

2

*Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

3

4

5

16

UNITS SHIFTING TO OTHER CHANNELS

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Supermarket – Unit Trend Total All Departments Alcoholic Bevs Fresh Produce Bread & Baked Goods* Packaged Meat HBA Deli Dairy Fresh Meat Dry Grocery Frozen Foods Non-Food Grocery General Merch Baked Goods-Frozen

-2

-4 -4

-3

-3

-2

-1 -1 -2

0 0 0

2

5

Value & convenience players winning with increased presence & strong demand *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

17

DEMAND DRIVING GROWTH All Outlets Combined (plus Convenience) – Dollar Trend Price Change

2 6 5 4

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

4 4 4 3 3 2 -1 -1 -2

Total Bread & Baked Goods* Fresh Brkfst Cakes/Swt Rolls Fresh Muffins Cookies/Ice Cream Cones Mexican Tortillas Fresh Cakes Fresh Rolls Fresh Doughnuts Crackers Fresh Pies Fresh Bread Fresh Buns Rem. Fresh Bread & Bked Goods

+ 1.1 - 0.1 - 0.3 + 2.5 + 1.4 + 3.8 + 1.4 - 6.9 + 1.0 - 0.5 + 0.0 + 0.9 + 1.5

Softness in center-store bread & buns *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

18

LOTS OF POSITIVE UNITS GAINS All Outlets Combined (plus Convenience) – Unit Trend Price Change

1 10 6

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

5 3 2 2 2 2 0 -2 -2 -3

Total Bread & Baked Goods* Fresh Doughnuts Fresh Brkfst Cakes/Swt Rolls Fresh Muffins Fresh Pies Mexican Tortillas Fresh Rolls Cookies/Ice Cream Cones Crackers Fresh Cakes Fresh Bread Fresh Buns Rem. Fresh Bread & Bked Goods

+ 1.1 - 6.9 - 0.1 - 0.3 - 0.5 + 1.4 + 1.4 + 2.5 + 1.0 + 3.8 + 0.9 + 0.9 + 1.5

But bread & buns limiting total category growth *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

19

TOTAL SEGMENT GROWTH, BUT A # OF ISSUES All Outlets Combined (plus Convenience) – Dollar Trend Price Change

Total Baked Goods-Frozen

+ 3.2

8

Pies - Frozen

+ 1.1

8

Cheesecake - Frozen

+ 7.5

Biscuits/Rolls/Muffins-Frozen

+ 3.9

Bread/Dough Products - Frozen

+ 2.0

Rem. Frozen Baked Goods

+ 2.1

Dessert Cakes - Frozen

+ 5.4

Bagels - Frozen

+ 2.4

1

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

-3 -4 -10 -11

Breakfast Cake/Sweet Roll-Frz

+ 10.0

Higher prices part of the issue Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

20

ARE HIGHER PRICES REDUCING CONSUMER DEMAND? All Outlets Combined (plus Convenience) – Unit Trend Price Change

-2 7 0 -2 -4 Copyright ©2012 The Nielsen Company. Confidential and proprietary.

-5 -9 -12 -19

Total Baked Goods-Frozen

+ 3.2

Pies - Frozen

+ 1.1

Cheesecake - Frozen

+ 7.5

Biscuits/Rolls/Muffins-Frozen

+ 3.9

Bread/Dough Products - Frozen

+ 2.0

Rem. Frozen Baked Goods

+ 2.1

Dessert Cakes - Frozen

+ 5.4

Bagels - Frozen

+ 2.4

Breakfast Cake/Sweet Roll-Frz

+ 10.0

Consumers making trade-offs or buying less Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 02/16/2013 (vs. year ago), UPC-coded

21

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

“DEATH BY A 1,000 CUTS” Aging population

Delayed family starts

Smaller households

Multicultural infants

Immigration

Job market

Payroll taxes

Income squeeze

Food stamps

Gas prices

Weather impact

Higher prices/reduced promotions

Alternative channels

Away-from-ho me consumption

Prepared meals

Consumption patterns

Units

DIY movement

22

CONSUMERS FLOCK TO FRESH, BUT Volume Trend Price Change 8% 5% 4% 3%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

2% 0% -1% -1%

Fresh Seafood

- 0.3%

Deli Prepared Foods

+ 3.2%

Fruits

+ 3.0%

Deli Cheese

+ 1.0%

Vegetables

- 2.4%

Bakery

+ 3.8%

Deli Meat

+ 2.6%

Fresh Meat

+ 5.4%

Dollar growth for all, but higher prices part of the issue Source: Nielsen Perishables Group FreshFacts®, Total U.S. – Fresh Coverage Area; 52-weeks ending 12/29/2012 (vs. year ago)

23

HIGHER PRICES NOT ALWAYS AN ISSUE Dollar Trend

Volume Trend

10% 8% 6% 4% 2% 0% -2% Copyright ©2012 The Nielsen Company. Confidential and proprietary.

-4%

Bakery

Muffins

Brownies and Dessert Bars

Pies

Rolls

Cookies

$ Share

100.0

4.4

1.5

5.6

12.8

10.3

Vol Share

100.0

4.5

1.0

4.5

20.0

7.8

AP %Chg*

3.8

6.9

1.4

-0.5

2.6

8.9

*average price per volume percent change Source: Nielsen Perishables Group FreshFacts®, Total U.S. – Fresh Coverage Area, 52-weeks ending 12/29/2012 (vs. year ago)

24

VOLUME DECLINES WHERE PRICES UP THE MOST Dollar Trend

Volume Trend

6% 4% 2% 0% -2%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

-4%

Donuts

Specialty Desserts

Cakes

$ Share

7.6

1.3

30.1

Vol Share

14.8

0.9

AP %Chg*

5.8

0.3

Sweet Goods

Breads

Bagels

6.4

15.8

2.3

12.5

6.6

19.3

5.5

2.0

5.0

4.2

3.6

*average price per volume percent change Source: Nielsen Perishables Group FreshFacts®, Total U.S. – Fresh Coverage Area, 52-weeks ending 12/29/2012 (vs. year ago)

25

STRONG PRIVATE BRANDS GROWTH

16.3%

growth rate! 2013 Copyright ©2012 The Nielsen Company. Confidential and proprietary.

$109.5 billion

2009

$94 billion Source: Nielsen Scantrack, Total U.S. – All Outlets Combined, 52 weeks ending 12/26/2009 vs. 52 weeks ending 02/16/2013, UPC-coded

26

BUT OPPORTUNITY REMAINS Dollar Share

2013 2009

17% 16% Private Brands

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Branded 84% 83%

Source: Nielsen Scantrack, Total U.S. – All Outlets Combined, 52 weeks ending 12/26/2009 & 52 weeks ending 02/16/2013, UPC-coded

27

HIGHER DEVELOPMENT IN EDIBLE DEPARTMENTS Private Brands: Dollar Share 36 28

23

20

17.3% AVG (+0.1 pts) 18

17

17

16

15

15

14

10

Dairy

Deli

Bread & Baked Goods*

Frozen Foods

Fresh Produce

Health & Beauty Aids

Non-Food Grocery

Fresh Meat

Baked Goods-Frozen

Dry Grocery

Packaged Meat

General Merch

Alcoholic Bevs

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

1

-1.0

+1.4

+0.2

+0.2

+0.3

+0.8

+0.7

-0.7

+0.2

+0.0

+0.4

+0.2

-0.0

(Point Change verses Year Ago)

Private Brand share gains in bread & baked goods *Bread & Baked Goods plus Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Scantrack, Total U.S. – All Outlets Combined, 52 weeks ending 02/16/2013, UPC-coded

28

LOWER AFFLUENT SHARE DUE TO BRAND SPEND Affluent have strong store brands spend relative to other incomes

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

2,411

2,753

2,931

3,112

3,340

647

698

721

740

736

< $25K

$25K $34K

$35K $49K

$50K $69K

$70K $99K

Branded $ Buying Rate Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012 (UPC-coded)

3,490

727

3,702

735

3,657

3,764

711

675

$100K - $125K - $150K - $200K + $124K $149K $199K Store Brands $ Buying Rate 29

> AFFLUENT ATTRACTION TO BRANDS Dollar Buying Rate by Income Total Bread & Baked Goods*

PL Bread & Baked Goods*

Brand Bread & Baked Goods*

Under $25k

101

36

70

$25k - $34k

111

38

77

$35k - $49k

116

39

81

$50k - $69k

119

38

85

$70k - $99k

121

37

88

$100k - $124k

121

35

91

$125k - $149k

123

34

94

$150k - $199k

119

33

90

$200k+

116

31

90

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Household Income

Private Label spending falls as income rises *Bread & Baked Goods excludes Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Nielsen Homescan, Total U.S. 52 weeks ending 12/29/2012

30

HEALTH & WELLNESS CONSUMER SEGMENTATION

OPPORTUNITIES & CHALLENGES W/ PERSONAL H&W NMI’s Health & Wellness Consumer Segmentation

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

WELL BEINGS® 17%

FOOD ACTIVES® 18%

MAGIC BULLETS® 24%

FENCE SITTERS® 19%

EAT, DRINK & BE MERRYS® 22%

• Most health proactive

• Mainstream healthy

• Conveniently healthy

• ‘Wannabe’ healthy

• Least health active

• Market leaders & Influencers

• Basics, balance and control

• Most likely to have kids

• Unconcerned about prevention

• Highest organic usage

• Desire inherently healthy foods

• Heavy pill usage – supplements OTC, Rx

• Focused on taste

• Use some supplements

• Most influenced by physicians

• Stressed out, want help and control

• Use many health modalities

• Least eco-friendly

• Most Green

• Price sensitive

• Health managers vs. preventers • Weight managers • Least likely to cook at home • Least likely to exercise

• More health kicks but no clear goals

• Most price driven • Younger

• Receptive to ecofriendly • Active weight loss • High social media usage

Source: Natural Marketing Institute (NMI), U.S. General Population

32

THOSE MOST ENGAGED IN H&W SHOP AND SPEND Total Retail Channels Shopping Trips Per Household Well Beings Food Actives Magic Bullet Fence Sitters Eat, Drink & Be Merrys

161 163 156 153 145

Basket Ring $ Per Trip Well Beings $49 Food Actives $44 Magic Bullet $46 Fence Sitters $46 Eat, Drink & Be Merrys $45

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

Basket Ring $ Per Household Well Beings Food Actives Magic Bullet Fence Sitters Eat, Drink & Be Merrys

$7,828 $7,169 $7,190 $7,078 $6,533

WELL BEINGS are active shoppers & spend the most annually Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012

33

WHOLE GRAIN: A MAINSTREAM PROPOSITION % indicating they used whole grain foods/beverages over past year Compound Annual Growth 2005 – 2012: 87%

+1%

87%

84%

84%

85%

85%

2010

2011

2012

82%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

80%

2005

2006

2007

2008

2009

Universal index to most H&W segments: WELL BEINGS = 96%, EAT/DRINKS = 74% Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

34

GLUTEN-FREE DOWN SINCE 2008 – UP IN 2012 % indicating they used gluten free foods/beverages over past year Compound Annual Growth 2006 – 2012:

41% 39%

+1.6%

34% 32% 30%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

29%

2006

2007

2008

2009

2010

28%

2011

2012

Significant decrease vs. 2008 at the 95% confidence level

Fad versus trend? Only 1% of Americans have gluten allergies (Celiac disease) Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

35

FENCE SITTERS HIGHEST GLUTEN-FREE USERS % indicating they used gluten free foods/beverages over past year GP

32%

Well Beings (A) Food Actives (B)

42%BCE 22%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Magic Bullets (C)

28%BE

Fence Sitters (D) Eat, Drink, Be Merrys (E)

50%ABCE 22%

Note: Capital letter indicates a significant difference between generation at 95% Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

36

LOW CARB DOWN, BUT SURELY NOT OUT % indicating they used low-carb foods/beverages over past year Compound Annual Growth 2005 – 2012:

68% 65%

-1%

57%

58%

58%

54%

54%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

52% 2005

2006

2007

2008

2009

2010

2011

2012

Significant decrease vs. 2008 at the 95% confidence level

Low carb has migrated from specific packaged foods to general categories Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

37

LOW CARB DRIVEN BY FENCE SITTERS/WELL BEINGS % indicating they used low-carb foods/beverages over past year GP

54%

Well Beings (A)

60%CE

Food Actives (B)

55%E

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Magic Bullets (C)

52%E

Fence Sitters (D) Eat, Drink, Be Merrys (E)

66%BCE 40%

Capitalgenerations, letter indicates a significant between generation at 95% Among Gen Y shows difference highest usage rates – still a diet trend? Note: Capital letter indicates a significant difference between generation at 95% Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

38

LOW/NO SUGAR FOODS SHOW SLIGHT DECLINES % indicating they used low sugar or sugar-free foods/beverages over past year

70%

72%

69%

Low sugar 66% foods/beverages

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Sugar-free foods/beverages 63%

2005

Compound Annual Growth 2005 – 2012:

75% 67%

69% 65%

2006

64%

2007

62%

2008

2009

65%

64%

-0.3%

57%

57%

-1.4%

2011

2012

60%

2010

Significant decrease vs. 2008 at the 95% confidence level

Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

39

SUGAR DYNAMICS VARY ACROSS H&W SEGMENTS % indicating they used low sugar or sugar-free foods/beverages over past year 64% 57%

GP Well Beings (A)

60%E

66%E 62%E

Food Actives (B)

63%E 57%E

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Magic Bullets (C)

Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

Low sugar Sugar-Free

71%CE 67%CE

Fence Sitters (D) Eat, Drink, Be Merrys (E)

74%BCE

43%

51%

40

SWEETENERS: NATURAL VERSUS ARTIFICIAL? Six year CAG: 2006 – 2012 Search for all natural non-calorie sweeteners rather than artificial sweeteners

4.3%

Prefer not to serve my family anything with artificial sweeteners

4.0% 3.8%

Prefer foods with no sugars added

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Are concerned about the negative side effects of artificial sweeteners

3.6%

Usually check the package label for forms of sugar/sugar content before I purchase

3.4% 2.1%

Typically watch the sugar content in my diet Use artificial sweeteners for a diabetic diet

Source: NMI’s 2012 Health and Wellness Trends Database (HWTD)

1.1% 41

DIVERSE CATEGORY DEMAND ACROSS SEGMENTS $ Buying Rate Index

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Well Beings Food Actives

Magic Bullets

Fence Sitters

Eat, Drink & Be Merrys

Beer

86

89

102

105

118

Wine

136

103

84

93

84

Carbonated Beverages

75

97

105

103

112

Fresh Produce

143

103

90

95

80

Vitamins

119

114

108

94

48

Tobacco & Accessories

66

82

113

90

119

Bread & Baked Goods*

97

97

104

99

100

Baked Goods-Frozen

96

95

103

100

103

Universal appeal to bread & baked goods *Bread & Baked Goods excludes Crackers, Cookies/Ice Cream Cones, Mexican Tortillas Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012, UPC-coded

42

SOME CATEGORIES PROVIDE CONNECTION POINT $ Buying Rate Index

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Well Beings Food Actives

Magic Bullets

Fence Sitters

Eat, Drink & Be Merrys

Bakery - Bread - Fresh

108

97

101

97

97

Bakery-Breakfast Cakes/Sweet Rolls-Fresh

93

96

100

102

106

Bakery-Buns-Fresh

93

101

100

96

107

Bakery-Cakes-Fresh

91

100

103

100

103

Bakery-Doughnuts-Fresh

96

98

100

104

101

Bakery-Muffins-Fresh

107

100

101

104

91

Bakery-Pies-Fresh

109

101

99

104

93

Bakery-Rolls-Fresh

102

99

99

109

95

Rem Fresh Bread & Bked Goods

105

96

101

102

96

Cookies/Ice Cream Cones

96

101

106

93

98

Crackers

105

110

97

101

91

Mexican Tortillas

104

105

93

100

102

Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012, UPC-coded

43

SOME CATEGORIES PROVIDE CONNECTION POINT $ Buying Rate Index

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Well Beings Food Actives

Magic Bullets

Fence Sitters

Eat, Drink & Be Merrys

Bakery-Bagels-Frozen

96

85

105

96

106

Bakery - Biscuits/Rolls/Muffins Frozen

125

94

101

91

90

Bakery-Bread-Frozen

96

99

100

106

100

Dough Products-Bread-Frozen

93

112

99

97

96

Bakery-Breakfast Cakes & Sweet Rolls-Frozen

129

84

96

93

102

Bakery-Cheesecake-Frozen

107

94

103

100

98

Bakery - Dessert Cakes - Frozen

97

96

94

104

111

Bakery - Pies - Frozen

99

95

102

101

102

Rem Frozen Baked Goods

97

91

103

102

104

Source: Natural Marketing Institute (NMI), Health & Wellness Segmentation, Total U.S. – 52 weeks ending 12/29/2012, UPC-coded

44

KEY TAKEAWAYS

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

KEY TAKEAWAYS •

Economic Divide: Economy remains sluggish; opportunities across the economic spectrum

•

Competition Heats Up! Value & convenience channels winning; how can you also help your biggest channel regain growth?

•

Consumer Demand Fluctuations: manage innovation investments on your big sales drivers & big growth drivers to enhance consumer relevance! 46

Copyright ©2013 The Nielsen Company. Confidential and proprietary.

KEY TAKEAWAYS •

All consumer are not the same; need to target to meet needs & wants

•

Many health & wellness market forces are changing bakery landscape; true positioning of gluten free, carbs?

•

Sweeteners can become the great divide

47

COME SEE WHAT’S NEXT AT CONSUMER 360 Join us on June 3 – 5, 2013 in Phoenix, AZ

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

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http://www.consumer360.com/locations/us/ 48