North American Tuna Market

U.S. Market Overview

Total Retail Seafood dollars have grown from $9.8 to $11.4 billion in the past five years. Fresh and Frozen account for a combined 80% of the sales while shelf stable seafood sales account for the balance

Total Seafood Dollar Sales ($ in Millions) $12,000 $10,000 $8,000 $6,000

TTL $9.B

TTL $10.3B

TTL $10.8B

TTL $11.1B

TTL $11.4B

$2,289

$2,239

$2,308

$2,319

$3,859

$4,340

$4,575

$3,659

$4,147

$3,940

$4,100

$4,295

$4,482

$4,546

2011

2012

2013

2014

2015

$2,240

$4,000 $2,000 $0

Source: IRI Multi Outlets

Frozen/Packaged

Fresh Seafood Counter

Shelf Stable

Note: Fresh does not reflect Food Service/restaurants - $9.4B market in N. America

3

Fresh seafood generates $4.6 billion in sales annually. Salmon, Shrimp and Crab are the top three species

Total Fresh Seafood Dollar Share By Species - $4.6B

Source: IRI

4

Of the total fresh sales, Tuna accounts for $76 million which has steadily increased over the last four year period

Total Fresh Tuna Dollar Sales ($ in Millions) $80.0

$75.0

$73.3

$70.0

$76.4

$65.3

$60.0

$57.0

$50.0

$40.0 2011

2012

2013

2014

2015

Total Fresh Tuna Source: IRI

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Total frozen seafood sales delivered $4.5 billion during 2015. Shrimp represents almost one-half of the total category

Total Frozen Seafood Dollar Share By Species - $4.5B

Source: IRI

6

Sales of Frozen tuna have also increased over the last four years, generating $31.9 million last year

Total Frozen Tuna Dollar Sales ($ in Millions) $35.0

$31.9

$30.0

$27.8

$25.0

$20.0

$19.4

$17.9 $14.9

$15.0

$10.0 2011

2012

2013

2014

2015

Total Frozen Tuna Source: IRI

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Frozen Tuna represents a growth opportunity as only 1.5% or U.S. households are currently purchasing

Frozen Tuna Household Purchasing Dynamics

% Households Buying Dollars Per Trip Unit Sales Per Trip Price Per Unit

Source: IRI

1.5% $10.44 1.3 $8.26

Tuna In Basket Dollars Per Trip

$113.92

Tuna Not In Basket Dollars Per Trip

$50.88 8

Shelf Stable seafood accounted for $2.2 billion in sales during 2015. Tuna purchases represent three-quarters of the total category sales

Total Shelf Stable Seafood Dollar Share By Species - $2.2B

Source: IRI

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Shelf Stable Tuna dollar sales, down 2.7% versus the prior year period, are flat compared to five years ago.

Total Shelf Stable Tuna Dollar Sales ($ in Millions) $1,900

$1,800

$1,700

$1,699

$1,714

$1,692

$1,635

$1,645

$1,600

$1,500

$1,400 2011

2012

2013

2014

2015

Shelf Stable Tuna Source: IRI

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A total of 27.6 million EQ cases of shelf stable tuna were sold in 2015, down just 1% versus the prior year, but down 10% from 2011

Total Shelf Stable Tuna Volume (EQ Case Volume in Millions) 30.7 30.0

28.4 27.3

27.9

27.6

25.0

20.0 2011

2012

2013

2014

2015

Shelf Stable Tuna Source: IRI

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StarKist is the leading brand of Tuna in the U.S. market, accounting for 43.3% and 40.5% of category dollars and volume, respectively. Bumble Bee ranks #2 with 28% of dollar sales and 25.6% of the volume

Shelf Stable Tuna Dollar and Volume Share By Brand Dollar Share Private Label 12.6% Chicken of the Sea 13.3%

Other 2.8% Bumble Bee 28.0%

Private Label 17.0%

Other 1.5%

Bumble Bee 25.6%

Chicken of the Sea 15.4%

StarKist 43.3% Source: IRI

Volume Share

StarKist 40.5% 12

Light tuna is the largest segment within shelf stable tuna, contributing 44.3% of the dollars sold and almost 60% of the tonnage. Albacore, follows with 35.2% of dollar sales and almost 29% of volume sales. Bumble Bee is the leading brand of Albacore, while StarKist is the leading brand of Light tuna.

Shelf Stable Tuna Dollar and Volume Share By Type

Dollar Share

Volume Share

Value Add 5.1% Pouch 15.5%

Light 44.3% Source: IRI

Value Add 17.0% Albacore 35.2%

Albacore 28.6%

Pouch 7.8%

Light 59.8% 13

Almost two-thirds of shelf stable tuna is sold in the traditional retail channel (62%). Walmart represents a quarter of the sales (24%), followed by Club stores (6%)

Shelf Stable Tuna Dollar Sales By Channel Drug Military Other 5.0% 2.0% 1.0% Club 6.0%

Walmart 24.0%

Source: IRI

Retail 62.0%

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The total number of households that are purchasing canned tuna declined over the last 5 years. At the end of 2015, 67.8% of U.S. households were tuna purchasers

Total Shelf Stable Tuna Household Penetration 75.0

72.3

71.2 68.9

70.0

68.6

67.8

65.0

60.0

2011

Source: IRI

2012

2013

2014

2015

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The average consumers spends $4.23 for 3 cans during each buying trip, paying an average of $1.43 per unit

Shelf Stable Tuna Household Purchasing Dynamics

% Households Buying

67.8%

Dollars Per Trip

$4.23

Unit Sales Per Trip

Source: IRI

3.0

Price Per Unit

$1.43

Tuna In Basket Dollars Per Trip

$89.98

Tuna Not In Basket Dollars Per Trip

$40.84 16

Despite the household declines, canned and pouch Tuna is positioned for growth

Consumer Trends Favorable For Tuna • Demographic trends support long term growth opportunities – Aging population focused on health – Convenience is a critical factor in product offerings – Health awareness on the rise and greater interests in “better for you” products – Increasing ethnic diversity with “fish forward” attitudes and behaviors • Shelf Stable Tuna fits consumer needs – Protein is “hot” today – Healthy, nutritious and convenient – Low in fat, calories and cholesterol – High in Omega-3 EPA/DHA and excellent source of protein – Linked to reduction in heart disease, Alzheimer’s, strokes – Easy to prepare – Affordable “go to source” of lean protein 17

The leading U.S. brands continue to invest in efforts to drive their brand platform and engage consumers. A key push is also underway through the National Fisheries Institute, to capitalize on the latest Dietary Guidelines that highlight the importance of eating 2-3 servings of Seafood per week Situation Overview • 2015-2020 Dietary Guidelines for Americans were released in January 2016; positive with respect to fish, especially tuna • New aspects of socioeconomic considerations, such as access and affordability, provide opportunity for continued engagement for 6 months • Six month window to promote while DGA is still considered “new” • Timing and content of FDA final advice continues to be uncertain

Communications Objectives • Educate HCPs and allied professionals about the DGA to encourage consumption of fish, especially tuna

Strategic Approach • Amplify DGA as most current recommendation for pregnant and nursing women, supported by Net Effect Report • Arm HCPs and influencers with tools for discussion with patients

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There are targeted initiatives underway to disseminate the new dietary guidelines and also increase awareness of a comprehensive report released by the U.S. Food and Drug Administration validating the incredible health benefits of seafood

Leverage The Positive Science And Reach Key Targets Key Opinion Leaders

Stakeholders

RDs, MDs, Scientists

Engagement & Accountability

Consumers

Medical

Pregnant/Nursing Moms

Institutions & Associations

Net Effects Report Health Care Providers

Media

OBGYN, Peds, Nurses

Traditional and Non-Traditional 19

Canada Market Overview

The Canadian shelf stable seafood market delivered $414 million in sales in 2015 representing a 10.6% increase versus 2010

Total Seafood Dollar Sales ($ in Thousands) $450,000

TTL $414.1M

TTL $374.4M

$35,633 $48,285

$400,000 $350,000 $300,000

$33,203 $46,546

$250,000 $200,000

$178,482

$158,946

$150,000 $100,000

$39,539

$50,854

$50,000

$96,206

$100,832

$0 2010 Salmon Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

Value Add Tuna

2015 Non Value Add Tuna

Specialty

Sardines 21

While total dollar sales have increased, volume is down 8.8% during the same time frame. Volume declines were posted in each segment with the exception of Value Added Tuna

Total Seafood Volume Sales (EQ Cases in Thousands) $6,000 $5,000 $4,000 $3,000

TTL 4,770

TTL 4,356

403 294

364 260

2,573

2,415

346

362 955

$2,000 $1,000

1,154 $0 2010 Salmon

Value Add Tuna

2015 Non Value Add Tuna

Specialty

Sardines

Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

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Clover Leaf is the brand leader in the Canadian marketplace generating almost 48% of the total dollar sales. Private Label ranks #2 followed by Oceans Fisheries

Shelf Stable Seafood Dollar Share By Brand Other 13.0%

Private Label 16.2%

Clover Leaf 47.6%

Oceans Fisheries 13.0% Canfisco 10.2% Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

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Tuna is the largest canned seafood segment driving 61.2% of the category volume, followed by Salmon (24%) and Sardines/Herring (9.4%). Among canned seafood buyers, more than 3 out of 4 consumers purchased tuna last year, while 45% purchased canned salmon

Total Canned Seafood Development – By Species

Share of Requirements 61.2

24.0 5.4

Salmon % Seafood 45 Buyers Purchasing…

Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

Tuna 77

Specialties 29

9.4

Sardines & Herring 27

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Within the Tuna segment, Skipjack represents two thirds of volume sales, followed by Albacore at 19% and value added tuna at 13%

Shelf Stable Tuna Volume Share By Type Value Added Tuna 13.0% Yellowfin 2.5%

Albacore 18.8%

Skipjack 65.7% Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

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The Grocery channel delivers 66% of sales, followed by Club Stores (15.5%) and Mass Merchandisers (10.5%)

Shelf Stable Tuna Volume Sales By Channel Drug/All Other 7.9% Mass Merch 10.5%

Club 15.5%

Grocery 66.1%

Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

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The typical Canadian tuna buyers are likely to be older empty nesters, with above average income

The Canadian Tuna Consumer THE TOTAL TUNA BUYER IS LIKELY TO BE:

AVG DISTRIBUTION OF BUYERS

Age 45+

62%

1-2 member household

58%

Couples (established/empty nest/seniors)

41%

High Income $70k - $100k+

45%

No Kids

68%

Source: ACNielsen Homescan52 Weeks Ending Nov 14, 2015

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Thank You And Enjoy The Conference!