Copyright © 2017 The Nielsen Company. Confidential and proprietary.

JORDAN ROSTVP, CONSUMER INSIGHTS

THE TOTAL ORGANIC SHOPPER

@JORDANROST

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EATING WITH A CONSCIENCE

Source: Nielsen two week online survey (April 2017) of 1163 respondents. Percent who somewhat or strongly agree.

59%Environmentally

friendly and

sustainably-grown

foods are

important

43%Are willing to

sacrifice taste for a

healthier option

51%Choose local,

natural and

organic when

possible

53%Will pay more for

foods that promote

health benefits

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9.5% 7.3%

GMO FREE

7.2%

GLUTEN FREE

DOLLAR SALES GROWTH VS. YAGO

TRANSPARENCY H&W CLAIMS GROWING

SALES AND ITEMS ACROSS THE STORE

Source: Nielsen Answers, Total U.S. All Outlets Combined, period ending February 25, 2017, UPC-coded items only

12%

ORGANIC NATURAL

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TOP ORGANIC FRESH CATEGORIES

ORGANIC DRIVING GROWTH ACROSS ALL

FRESH FOODS

Source: Nielsen FreshFacts total U.S., 52 weeks ended Dec. 31, 2016. Ranked by dollar sales.

PACKAGED SALAD

$887M6%

1

4APPLES

$293M6%

5HERBS, SPICES & SEASONINGS

$260M13%

3CHICKEN

$296M15%

2BERRIES

$480M25%

DOLLAR SALES

SALES GROWTH VS. YAGO

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ORGANIC SHARE OF SALES & GROWTH

ORGANIC CLAIMS DRIVE OUTSIZED

GROWTH

Source: Nielsen Answers, Total U.S. – All Outlets Combined (plus Convenience), Last 52 Weeks ending May 27, 2017 (vs. year ago)

12%

1% 0% 0%

36%

7%

2% 1%

PRODUCE SALTY SNACKS HOUSEHOLD CLEANING COSMETICS

Share of Sales Share of Growth

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CATEGORIES WITH KALE INGREDIENTS: DOLLAR GROWTH VS YAGO

THE HEALTHY “HALO” OF KALE CAN BE

SEEN ACROSS THE STORE

Source: Nielsen Product Insider, powered by Label Insight, 52 weeks ending 01/28/2017

KALE

+6%

Dairy

DeliMeat

Frozen

No

n fo

od

HB

CGrocery

Alc

oh

olic

Bev

erag

e

Bakery

RxFloristGeneral Merch

Produce

Seafood

SOUPS

+42%

SAUSAGE

+45 %

VITAMINS/

SUPPLEMENTS

+97%

ACROSS THE STORE PRODUCTS WITH KALE

INCREASED DOLLARS 9.3% FROM YA

BABY

FOOD

+40%

FROZEN

ENTREES

+44%

66different consumable

categories have Kale

across the store

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RETAILERS DEFINING THEIR OWN PATHS TO SUCCESS

Source: Nielsen Answers on Demand, Total U.S., UPC-coded

Top 100 Brands

Top 100 Brands

Only

ONE BRANDmade it onto both lists

ALL OUTLETS COMBINED

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SHARE OF TOTAL FOOD SALES

FRESH FOODS KEY TO THE FUTURE OF

RETAIL

Source: Nielsen 2017 Fresh Guiding Principles

49%

29%

51%

71%

HIGH FRESH VELOCITY RETAILERS LOW FRESH VELOCITY RETAILERS

FRESH

OTHER

+4% +1%TOTAL FOOD GROWTH

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ORGANIC IS A DIFFERENTIATOR

Source: Nielsen 2017 Fresh Guiding Principles

8.7%

2.1%0%

2%

4%

6%

8%

10%

AVERAGE ORGANIC DOLLAR SHARE OF FRESH FOODS

HIGH FRESH VELOCITY RETAILERS LOW FRESH VELOCITY RETAILERS

16%

6%

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# OF RETAILERS REPRESENTING 80% OF DOLLAR SALES

76 7369 66 63 62 61 59 58 55 52

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CPG DOLLARS ARE GOING TO FEWER

RETAILERS

Source: Nielsen Answers on Demand, Total U.S., 52 weeks ending December 31, 2016, UPC-coded

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E-COMMERCE SHARE OF SALES

28%

27%

14%

12%

10%

3%

3%

2%

2%

1%

1%

1%

Beauty Care

Pet Care

Health Care

Personal Care

Household Care

Packaged Grocery

Produce

Meat

Dairy

Bakery

Beer and Wine

Frozen Foods

FRESH FOOD CATEGORIES SLOWER TO MOVE ONLINE COMPARED TO TOTAL CPG

Source: Nielsen e-commerce measurement, 52 weeks ending April 29, 2017. Projected from ~1MM e-commerce CPG consumers and cooperating ePOS retailers based on

reported commodity groups that may not match prior custom or syndicated category definitions.

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100

LIKELIHOOD TO BE PURCHASED VIA CLICK & COLLECT

280

Alcohol

Fresh Meat

Fresh Produce

Dairy

Deli

Packaged Meat

Frozen Foods

Dry Grocery

Health & Beauty

CLICK AND COLLECT IS BRINGING

PERIMETER SHOPPERS ONLINE

Source: Nielsen Homescan Total Outlets, Total Panel, 52 weeks ending June 3, 2017. Index based on C&C basket inclusion relative to the avg. e-commerce order.

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TOP REASONS FOR PURCHASING A MEAL KIT

MEAL KITS DELIVER HEALTHY, CURATED CONVENIENCE

Source: Nielsen 2017 report on The Mindset of the Meal Kit Consumer

Saves time on mealplanning

Short prep and cook time

Saves time on groceryshopping

Enables me to try newrecipes

Healthy recipes

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INDEXED PLATFORM USAGE BY ORGANIC FOOD CONSUMERS

THE ORGANIC CONSUMER IS A DIGITAL CONSUMER

Source: Nielsen Scarborough USA+ 2016 Release 2 Total (Aug 2015 - Nov 2016). Read as Regular organic food eaters are 34% more likely to use Instagram than the avg.

FACEBOOKINSTAGRAM TWITTERPINTERESTSNAPCHAT

111134 127127129

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THE TOTAL ORGANIC SHOPPER

The organic appeal is expanding across more food

categories and beyond

Organic produce will be critical to the future of brick and

mortar retail with more categories shifting online

The organic shopper is a digital shopper and she’s already

finding new ways to buy online

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

@JORDANROST