1 October 2015

Total suppliers surveyed: 43 Total supplier who responded: 39 Number of companies in market: 20 Number of companies not in market: 19 Those in market at the time of survey:

For the products branded and accounts receiving eat brighter! product, how did the volume of sales trend compared to the same quarter last year?

15 unique companies responded to the question about accounts receiving product (from Dec 2014 – Sept 2015) with 67% reporting at least 1 quarter of increased sales.

Duration in market

Unique Companies

N Increased

N

Average of reported increases

Remained the same

N

3-5 months 3 2 1

6-8 months 5 4 3.8% 1

9-11 months 5 2 3

12-14 months 2 2 5.3% 0

15 10 4.6% 5

The weighted average change, including those that reported no change, is 2%.

The question on branded products was added to 2015-Q3. 9 unique companies responded to

the question.

Companies

N Increased

N

Average of reported increases

Remained the same

N Products Branded 9 7 3.8%(6) 2

The weighted average change, including those that reported no change, is 3%.

2 October 2015

Program Experience

Topic Negative

N Neutral

N Positive

N

Unique Companies

N Retailer’s acceptance/demand 4 2 7 11

Concept of program

3 3 Experience with PMA/Paragon

6 6

Sesame Street assets

3 3 Ability of campaign to get new business

2 2

Ease of use 1

1 2

Unique Companies 5 2 13 20

Five of the seven companies that reported a positive response from retailers also reported an increase to sales volume. The two suppliers who reported being challenged with retailer acceptance of the program mentioned it competes with private label branding.

3 October 2015

Appendix A: Verbatims

Branding

Positive

Great universal appeal characters.

Strong branding, good marketability.

We also love the way Sesame Street meshes with our brand packaging. We went strong on some key "kid-friendly" items (grapes, melons) and we received great support in the press.

Ability of campaign to get new business

Positive

At the time of product launch, we were able to strengthen some of our relationships and commitments with retail partners that are invested in this program.

The ability to put a character and figure so well-known among shoppers for a minimal fee has allowed us to increase our sales volume and merchandising capabilities with several retail outlets.

We've gotten business that we hadn't had before because of it. We are very happy to be doing it. Concept

Positive

This program is great. (12)

We are thrilled to support the program and believe it is engaging children in the produce aisles of grocery stores.

We love the program as do our partners. We have actively promoted the program EXTENSIVELY to the trade since we signed on back in January. We have actively promoted the program at all tradeshows we have been to and have used the messaging in 90%+ of all of our trade facing ads. We are looking forward to continuing the message as we progress through the year.

We love the program. We are getting behind it in every way that we can as I have shared with Donna, Meg, Ashley, and Kate along the way. Too long to go in to detail here but the program has been very good for us in partnering with a national level brand promotion that benefits the entire industry.

Ease of use

Positive

Very good. Good ease of use after initial development.

Negative

As a private brand manufacturer, labeling is a challenge with the restrictions for characters on labels/products. Many different labels for products - confusing & inefficient.

We are applying labels to a number of different product packaging. The program requires that we consistently keep a character with one product. However, it would be more efficient to allow any character on any of the approved products that can have Sesame Street.

PMA/Paragon

Positive

I love the eat brighter! program as it add vibrancy and fun to produce. PMA has been great to deal with on all levels, and has been incredibly responsive when we had fruit on hold due to trademarks.

It's been great! they've been responsive and give us help when needed. People that don't know about the initiative ask us questions about it.

The eat brighter! team is wonderful to work with; very responsive and supportive.

The only notable "bump in the road" would be when our melons were stopped by customs and we did not have the correct paperwork proving we were legally allowed to market the fruit. However,

4 October 2015

Donna and her team responded expediently and got me the files I needed, which we now have for any future stops.

Very positive! We love using it and love working with Paragon.

We are very happy working with Paragon on any approvals needed.

We have been pleased with the support provided by the program and the affirmations and testimonials from Michelle Obama make it a great selling tool. We look forward to more consumer feedback as our cherry products hit the stores in the next 2 weeks. We also plan to use eat brighter! for our fall apple and pear crop packaging.

We have had an extremely positive experience with the eat brighter! program. We love the graphics and love the message it's sending to kids and families about eating fruits and vegetables. Donna Bogia is great at returning emails quickly and the ladies at Paragon are extremely prompt and helpful with design questions and suggestions. They make the program easy and enjoyable to work with. We look forward to adding to our eat brighter! product list.

Retail acceptance/demand

Positive

Customers participating in the program are anxious to continue building their collection of eat brighter! items and other customers are anxious to take eat brighter! labeled product and monitor its ability to increase engagement and sales.

Outstanding! The eat brighter! program has been very well accepted by both retail customers and consumers. As Peak of the Market has said on many occasions, eat brighter! is a game changer for the produce industry. Finally, we have something that can compete with the fast food industry for the attention of not only kids in North America but adults as well. We are extremely proud to be participating in the eat brighter! program.

Overall, very well received... we are adding to our line-up of offerings. 2 Costco Canada items will be packed in eat brighter! BAGS. (mini cucumbers and mini bell peppers) Staff and art department very good to work with. Questions and feedback are always answered promptly. Looking forward to the extension of the program...

There is positive feedback from accounts on the attention being garnered by the Sesame Street characters in the marketplace.

Very good/positive from customers and consumers alike. (5)

Very well received since the initial concepts were created. The team was very easy to deal with. Looking forward to seeing the response from consumers and to compare if sales were influenced positively. Just now starting to get more retails requesting and looking at expanding our offerings.

We feel PMA has done an excellent effort getting retailers on board with the program and we have had the opportunity to create new and exciting packaging options (e.g. peel-off watermelon stickers) under the umbrella at the program. It positions us as leaders in the industry.

We've received positive feedback

Neutral

Our retail customers are mixed about the bag -- many love it but some are indifferent. I'm trying to understand why some aren't open to us packing their order in this bag and will share that with you once I know more.

We do not see accounts pulling product specifically because it is Sesame Street branded. It is a perishable product and we our volumes year after year are the same regardless of this program or not. On our Clementine oranges we have a Little Buddies cartoon graphics aimed at kids as well. If Sesame Street makes kids excited about eating fruits and veg then that is great. Also, quite often retailers share the category with numerous suppliers. It could still happen, as the program gains momentum that retailers specifically ask for Sesame Street branded produce, in which case this would increase sales momentum. Costco Canada (Oleen) is really behind this program. Previously we had the Cookie Monster wrap on Clementines (which are now finished), grapes from Peru, and 3 count cukes will be starting soon and possibly melon bins (creative stage). It does not mean we will move more product as we have contracts, however, I think she is trying to ascertain whether this

5 October 2015

creates additional customer interest. We don’t have their sales rings. It would be interesting for you to follow up with her on same.

Negative

Ok. Not as many customers as we had hoped were interested in the eat brighter! label option.

Retailers are reluctant to take the products due to conflicting agendas (their own P/L efforts). Many have a branded private label program and don't want to replace it with eat brighter! product. Additionally, some have provided feedback that it targets too young an audience and isn't broad enough in scope.

Unfortunately only one retailer has picked up the program, as many feel it competes with their own initiatives (especially those with private label produce brands). The eat brighter! packaging isn't showing any real increase in sales.

We could use help in gaining the support of eat brighter! at the buyer level. We understand many senior leadership at large retailers are very supportive of the program and PMA. However, we ultimately sell to individual commodity buyers, and the corporate support is not always adopted by the buyer level. We had several buyers refuse to accept Sesame Street-branded product.

Retailers have not gotten behind it. Most could care less if we ship eat brighter! product and some even ask not to get eat brighter! branded produce.

Suppliers

Negative

It was difficult conveying our ideas to our supplier in China.

6 October 2015

Appendix B: Retailers receiving product from surveyed suppliers

4M Fruit Distributors G. Cefalu & Bro., Inc. Northmart A&J Produce Corp. General Produce, Inc. Northstar Produce Inc. ACME Geresbek OK Produce Affiliated Midwest Giant Overwaitea Foods Group Ag Foods Giant Eagle Group Pardise Produce Dist. Ahold USA Group Giant Tiger Paul Collins Produce Co. Albertsons Golub Corp. PeaPod Aldi Grand Supercenter, Inc. PEARL HARBOR COMMISSARY Andrews Brothers, Inc. Green Valley Markets Pemberton Transport Co. Ltd Anthony Marano Company Grocery Outlet Price Chopper Associated Grocers of the South Inc. H & W Produce Pro* Act LLC Associated Supermarkets Harris Teeter Publix Supermarkets Associated Wholesale Grocers Harvest Fare Ralph's Belgarden Heartland Produce Co. Redner's Bi Rite HEB Regal Marketing Inc. Big A Heinen's, Inc. Rhee Bros., Inc. Bigway Foods HICKAM COMMISSARY Riser Foods Box H-Mart RLB Food Dist. Bravo Hy-Vee Food Stores Inc. Roundy's Inc Brookshire Bros IGA Russ Davis Wholesale Bt Produce Co. Inc. Independent Grocers Safeway Buy Low Foods Jewel Food Stores Sam's Club C & S Wholesale Produce JJ Jardina Co. Inc. Save-a-lot C&K Markets John J Jerue Truck Broker, Inc. Schnucks Markets C.H. Robinson Worldwide Johnson Associated Fruit Co. Inc. SCHOFIELD COMMISSARY Caito Foods Jungle Jim's Shop Easy Castellini Company KANEOHE BAY COMMISSARY Shop Rite Cavalier-Gulling-Wilson Katzman Berry Corp. Smiths Central Grocers, Inc. Krasdale Foods Sobeys Charlies Produce Kroger Co. Spartan Nash Chops Supermarkets K-Va-T Food Stores Inc. Sprouts Markets Classic Harvest LLC L&R Trading Stater Brothers Cohn Produce, LLC Lange, Tom, Company, Inc. Stop & Shop Co-Op (Grocery People) Lauer's Sun City Produce COSTCO Canada Liberty Fruit Co. Super A Foods Costco Wholesale Lipman Produce Dallas Super H Mart C-Town Loblaw Group (Canada) Superstore (Loblaw) D'Arrigo Bros. Co. Lowe's Foods Supervalu Group Del Monte Fresh Produce Inc Lund Food Holdings, Inc. Sysco Foodservice Dollar General Marano Company Target Empacadora Hill Brothers Market Basket Produce Inc. The Boys Farmers Market, Inc. Extra Foods Marketplace TMK Produce Fairway Market Bronx-Walnut Mars Topco Corporation Family Foods Mckay's Turkey Hill Fine Fare Meijer United Salad Flowers MGI Produce Wakefern Food Circus Military Produce Group Walmart Food Depot Mitchell Grocery Corp. Wegmans Four Seasons Produce Nardella, Inc. Weis Markets Master Hierarchy Francis Produce New Generation Produce Whole Foods Group

7 October 2015

Corporation Frank Donio, Inc New Son Yeng Produce LLC Wholesale Club Fresh & Easy No Frills WinCo Freshfields Farm - Jacksonville North Bay Produce Winn Dixie Freshfields Orlando, LLC Northeast Trading Inc. Wise Northern Stores Wood Supermarket

8 October 2015

Suppliers not in market

The negative responses are focused on retail acceptance/demand and the ability of the licensee to take a design concept to completion. Branding

Positive

Graphics are well done and very appealing. We look forward to launching to our customers.

We're excited to get going and see what we can make of this. It looks like a very well-thought out program, and the marketing materials provided look excellent.

Concept

Positive

It has been a very exciting program to promote so far! Ease of use

Neutral

Only able to use the Sesame Street characters in a small way. They had one big customer that took some material and then wasn't allowed to use it. But the green plums that they did get to market featuring the assets sold well.

Negative

The product that Sun Pacific wanted to use the Sesame Street assets for decided to change course and they have no plans to actually use the assets

Unfortunately, since we are a distributor, we are not able to label items or use stickers, packaging, etc. including eat brighter! but we have found way to reach out to our customers with marketing materials. I have created educational pieces for schools which include popular produce items along with our favorite Sesame Street residents.

Unfortunately, we have not launched packaging assets as originally planned, but it's possible we may later this year. We have occasionally used social media images to positive response.

We have had good interaction with the program, but the store packages of table grapes we originally had expected to feature the program on did not make it to completion. I put an anticipated date of July 2016 because the survey required an answer and that is the earliest I would expect something to appear, but we have no set plan at the moment for the store packs. We have used some of the provided imagery on social media.

We have not identified the right opportunity for the use of the eat brighter! program to-date. Not likely to change in the near term.

Category Negative Neutral Positive Total

Retail acceptance/demand 5

2 7 Ease of use 5 1

6

PMA/Paragon

3 3 Branding

2 2

Concept

1 1

Total 10 1 8 19

9 October 2015

Not in market Positive

Great program, but we are no longer doing sales or marketing, so we will not be participating.

Neutral

Due to the pear season just beginning we have no product in the market yet, but expect to soon.

It's got quite a bit of attention, but we don't have anything in market yet.

No experience with eat brighter!

Unfortunately at this time we have not yet implemented any Sesame Street materials into our product line. (2)

We are currently developing bags program with this license

We do not participate in the eat brighter! campaign.

We have no data yet to support the success of the program since Sesame product is not in the market yet, but we are encouraged that it will drive incremental sales.

Will find out shortly. Season begins in a few days. PMA/Paragon

Positive

It's been pretty painless. Very organized.

Staff has been extremely helpful in answering questions and providing direction. We are just sorry that we have not been able to roll this out sooner.

We decided to have eat brighter! packaging in market for limited time from late July to August and our experience with the program was fantastic. The team was very helpful and accommodating when providing guidance and the necessary approvals.

Retail acceptance/demand

Positive

So far it's been positive and we find retailers open to the promotion.

We had a great response last spring from customers on our watermelons and grapes from Mexico. The watermelon season will start again in fall. We are also looking to add more products, possibly citrus.

Negative

Have product available but no one has purchased yet.

None so far, no requests from retailers.

The one issue that we came across is that Walmart and HEB, which are two very important accounts, did not want to take the packaging and participate. I'd like to recommend getting them on board for the program at a corporate level in the future to ensure that suppliers don't come across this issue.

Unfortunately we haven't had much retailer interest in the program. We have created one SKU that is being used in the wholesale environment, and we may have interest from a retailer in the fall, but so far it has been more difficult than expected to sell this program. The reasons vary, but a recurring theme is the proliferation of private label produce and retailers' reluctance to carry SKUs other than their own. I'm not sure if we will have more retailer participation next season--presentations will be taking place over the next 3 months and our season doesn't start until 11/15 or so.

We have not had interest from retailers to date.

10 October 2015

Total promotional boards surveyed: 10 Total promotional boards who responded: 6 Number in market: 3 Number not in market: 3

The current promotional boards in market who responded to the survey have the ability to reach over 300 companies in total but are currently reaching 159 companies with marketing materials.

Are you using the eat brighter! assets on your social media accounts or on your consumer facing websites?

Yes No

Social Media 0 3 Website 0 3

Please estimate how many of each type of promotional/merchandising material you distributed for the eat brighter! initiative during the most recent calendar quarter?

Type of material N

POS Signage 116 POS On Shelf Graphics 102 Labels/Stickers for Packaging 100 POS Display Cartons 0 eat brighter! images on retail ad pages as well for one retail chain on various weekly ad sheets

Verbatims: Customer responses:

It's still a waiting game as not many shippers are providing products with the graphics on it.

The commissary employees think it really looks great in their produce department! Approval process:

Positive experience. Because we do not sell our product, we are somewhat limited in our ability to use the program, but we use it whenever we can and have done so with positive results. Very positive. The approval process was slightly more difficult than we were lead to understand, but working with Paragon was a smooth process overall.

It has been very easy and fun! Excellent. Paragon is wonderful to work with, meeting the requirements was easier than anticipated

The development was challenging through Paragon because of the extensive art requirements, but they were wonderful to work with and very responsive. Honestly, recommend that most people work directly with Paragon to make photo shop changes to fruit. They were reasonable and we were able to get it right the first time.

11 October 2015

Total retailers surveyed: 7 Total retailers who responded: 5

The current retailers in market who responded to the survey have the ability to reach over 580 stores in total but are only reaching 275 stores with marketing materials. Which promotion(s)/merchandising did you use for eat brighter!?

Other:

Kiosk (15 stores)

1 banner, shelf toppers, bin wraps (4 stores)

Shelf talkers, 7"x11" Sign Toppers, Perpendicular Shelf Blades (16 stores)

Approximately how long have you been using eat brighter! marketing materials in your stores?

Duration in Market Retailers N

0-2 months 0

3-5 months 3

6 months or more 2

For the twelve months prior to initiating the eat brighter! promotion, how did the volume of fruit and vegetable sales trend?

Response Fruit Vegetable

Decreased 0 0

Increased 4 2

Remained the same 1 3

Response Retailer N Store N

Label/Sticker on Package 4 55

POS On Shelf Graphic 3 35

POS Sign 4 55

Social Media 2 24

Website 2 35

POS Display carton 1 4

Retailer Ad 2 235

12 October 2015

How did the volume of fruit and vegetable sales trend compared to the same quarter last year?

Response Fruit Vegetable

Decreased 1 0

Increased 4 4

Remained the same 1 2

Which fruit commodities increased in volume during the most recent calendar quarter due to the eat brighter! promotion? Please check all that apply:

Which vegetable commodities increased in volume during the most recent calendar quarter due to the eat brighter! promotion? Please check all that apply:

How would you describe your experience to date with the eat brighter! program?

Additional vendors available to purchase from that are branding items with these assets would improve program. Very small increase, but as more and more companies join the program and bring more commodities to the program, there should be better increases in the product offerings.

Very positive, PMA and the creative contact have been very supportive and responsive.

We are still in the beginning stages of rolling these merchandising materials out to our stores and continue to learn how to use them to drive extra sales. The overall response to the program has been very positive and we will continue to expand on it.

We like the program, we need sue it more in our weekly circulars, and website.

Response Retailers N

Berries 2

Citrus 2

Deciduous Fruit 2

Grapes 1

Melons 1

Tropical Fruits 1

Response Retailers N

Carrots 3

Broccoli 2

Bagged Salad or Lettuce 1

Lettuce 1

Potatoes 1

Tomatoes 0