MIDSOUTH Region

Regional Composite

REGIONALDATA REPORT

JAN – SEP2014 vs. 2013

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Methodology

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

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

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

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

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

• Timeframe: YTD Q3 (January – September) 2014

• Retail data provided by IRI / FreshLook Marketing

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

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Midsouth Region: Highlights - YTD Q3

• Overview based on the following geography:– The Midsouth Region captures the Markets of Baltimore, Charlotte, Louisville,

Nashville, Raleigh, Richmond and Roanoke, plus additional cities not included in Markets

• 2014 vs. 2013, Avocado dollars in Midsouth grew +20% and outpaced Total U.S. (+13%) by +7 points– Category dollars grew +20%, while volume grew +12%– Category average selling price (ASP) increased +7% to $1.25/unit– Midsouth’s extra large avocado (4770) dollar gain of +35% was +49 points ahead of

the national average

• Avocados (+20%) outpaced Total Produce (+7%) in retail dollar sales growth rate (2014 vs. 2013)– Midsouth held a 12% share of Total Produce dollars and a 10% share of Avocado

dollars

• Midsouth posted the second lowest dollars and lowest units per store per week– Midsouth averaged $242 and 194 units per store per week through Q3 2014

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Midsouth: YTD Q3 - Avocados vs. Produce

• 2014 vs. 2013, Avocado dollars grew +20%, +13 points ahead of Total Produce (+7%)

• Midsouth held a 12% share of Total Produce dollars and a 10% share of Avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate

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Midsouth: YTD Q3 Avocado Retail Overview

• 2014 vs. 2013, Category dollars grew +20%, while volume grew +12%– All quarters posted dollar and volume

growth

• 2014 vs. 2013, Category average selling price (ASP) increased +7% to $1.25/unit

Midsouth Avocado Dollars and Volume Sales Posted Double-Digit Growth

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RETAIL UNITS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 18,365,675 18,982,240 +3.4% 404,455,575 425,853,668 +5.3%

4225 Large Hass #40 & #48 sizes 41,514,654 42,456,594 +2.3% 461,288,310 431,465,559 -6.5%

4770 X-Large Hass #36 sizes & larger 6,344,810 7,990,156 +25.9% 45,323,815 29,683,716 -34.5%

Other Greenskins, Pinkertons, non-Hass PLUs 1,363,110 1,528,455 +12.1% 22,199,126 22,431,907 +1.0%

Organic All Organic PLUs 787,798 1,199,774 +52.3% 12,798,655 17,129,180 +33.8%

Bags All bagged PLUs 17,035,961 23,688,969 +39.1% 145,008,096 187,387,206 +29.2%

85,412,008 95,846,187 +12.2% 1,091,073,578 1,113,951,235 +2.1%

RETAIL DOLLARS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 18,483,110$ 20,645,653$ +11.7% 305,460,562$ 377,559,536$ +23.6%

4225 Large Hass #40 & #48 sizes 51,907,429$ 57,098,113$ +10.0% 556,019,497$ 579,308,733$ +4.2%

4770 X-Large Hass #36 sizes & larger 10,901,155$ 14,737,362$ +35.2% 63,954,696$ 55,207,153$ -13.7%

Other Greenskins, Pinkertons, non-Hass PLUs 2,504,994$ 2,804,709$ +12.0% 36,626,529$ 37,813,022$ +3.2%

Organic All Organic PLUs 1,547,586$ 2,357,914$ +52.4% 20,737,656$ 29,664,629$ +43.0%

Bags All bagged PLUs 14,097,313$ 21,756,999$ +54.3% 127,899,167$ 179,442,092$ +40.3%

99,441,585$ 119,400,750$ +20.1% 1,110,698,106$ 1,258,995,166$ +13.4%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller $1.01 $1.09 +8.1% $0.76 $0.89 +17.4%

4225 Large Hass #40 & #48 sizes $1.25 $1.34 +7.6% $1.21 $1.34 +11.4%

4770 X-Large Hass #36 sizes & larger $1.72 $1.84 +7.4% $1.41 $1.86 +31.8%

Other Greenskins, Pinkertons, non-Hass PLUs $1.84 $1.83 -0.1% $1.65 $1.69 +2.2%

Organic All Organic PLUs $1.96 $1.97 +0.0% $1.62 $1.73 +6.9%

Bags All bagged PLUs $0.83 $0.92 +11.0% $0.88 $0.96 +8.6%

$1.16 $1.25 +7.0% $1.02 $1.13 +11.0%

JAN

UA

RY -

SEPTEM

BER

: 201

3 vs

201

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Midsouth Total U.S.

TOTAL CATEGORY UNITS

Midsouth Total U.S.

TOTAL CATEGORY DOLLARS

Midsouth Total U.S.

CATEGORY ASP ($/Unit)

Midsouth vs. Total U.S. - YTD Q3 PLU Comparisons

• Avocado dollar sales in MS increased +20%, +7 points ahead of Total U.S. (+13%)

– Volume increased +12%, +10 points ahead of Total U.S.

• MS extra large Hass avocado (4770) dollar gain of +35% was +49 points ahead of the national average

– Total U.S. extra large avocados declined in dollars and volume

– MS extra large avocado ASP increased +7%, while the national average increased +32%

Midsouth Outpaced Total U.S. in Dollar and Volume Sales Growth Rates

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Midsouth: YTD Category Per Store Per Week Averages

• Midsouth had the second slowest dollar velocity– Midsouth averaged

$242 per store per week through Q3 2014

• Midsouth had the slowest unit velocity– Midsouth averaged

194 units per store per week through Q3 2014

Low Dollars and Units Per Store Per Week in Midsouth Presents Opportunity for Growth

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Midsouth: 2012 through Q3-2014 Per Store AveragesBy Quarter - Units vs. ASP

• Average Retail Units Per Store– The peak quarter was 2014-Q2 at 2,708 units per store when ASP was $1.30/unit– The lowest quarter was 2012-Q4 at 1,656 units per store when ASP was at

$1.14/unit• ASP

– Lowest ASP to date occurred during 2013-Q1, $1.07/unit– Highest ASP to date occurred during 2014-Q2 at $1.30/unit