NORTHEAST 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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Northeast Region: Highlights - YTD Q3

• Overview based on the following geography:– The Northeast Region captures the Markets of Albany, Boston, Buffalo,

Harrisburg/Scranton, Hartford/Springfield, New England, New York, Philadelphia and Pittsburgh, plus additional cities not included in Markets

• 2014 vs. 2013, Avocado dollars in Northeast grew +16%, outpacing Total U.S. (+13%) by +3 points– Category dollars grew +16%, while volume grew +11%– Category average selling price (ASP) increased +5% to $1.34/unit– Large Hass avocados (4225) held the largest dollar share in Northeast and Total U.S.– Northeast large avocado dollar gain of +10% was +5 points ahead of the national

average

• Avocados (+16%) outpaced Total Produce (+4%) in retail dollar sales growth rate (2014 vs. 2013)– Northeast held a 20% share of Total Produce dollars and a 15% share of Avocado

dollars

• Low Dollars and Units Per Store Per Week in Northeast Presents Opportunity for Growth– Northeast averaged $321 and 240 units per store per week through Q3 2014

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Northeast: YTD Q3 - Avocados vs. Produce

• 2014 vs. 2013, Avocado dollars grew +16%, +12 points ahead of Total Produce (+4%)

• Northeast held a 20% share of Total Produce dollars and a 15% share of Avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate

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Northeast: YTD Q3 Avocado Retail Overview

• 2014 vs. 2013, Category dollars grew +16%, while volume grew +11%– All quarters posted dollar and volume

growth

• 2014 vs. 2013, Category average selling price (ASP) increased +5% to $1.34/unit

Northeast Avocado Dollar 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 5,007,666 5,095,812 +1.8% 404,455,575 425,853,668 +5.3%

4225 Large Hass #40 & #48 sizes 83,092,810 85,282,563 +2.6% 461,288,310 431,465,559 -6.5%

4770 X-Large Hass #36 sizes & larger 657,037 1,020,568 +55.3% 45,323,815 29,683,716 -34.5%

Other Greenskins, Pinkertons, non-Hass PLUs 9,434,288 9,657,563 +2.4% 22,199,126 22,431,907 +1.0%

Organic All Organic PLUs 1,558,010 1,369,252 -12.1% 12,798,655 17,129,180 +33.8%

Bags All bagged PLUs 27,451,066 38,933,085 +41.8% 145,008,096 187,387,206 +29.2%

127,200,877 141,358,842 +11.1% 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 5,629,307$ 6,378,231$ +13.3% 305,460,562$ 377,559,536$ +23.6%

4225 Large Hass #40 & #48 sizes 111,620,379$ 122,301,559$ +9.6% 556,019,497$ 579,308,733$ +4.2%

4770 X-Large Hass #36 sizes & larger 1,047,244$ 1,527,340$ +45.8% 63,954,696$ 55,207,153$ -13.7%

Other Greenskins, Pinkertons, non-Hass PLUs 13,058,758$ 14,574,328$ +11.6% 36,626,529$ 37,813,022$ +3.2%

Organic All Organic PLUs 2,672,820$ 2,510,203$ -6.1% 20,737,656$ 29,664,629$ +43.0%

Bags All bagged PLUs 28,169,058$ 41,530,542$ +47.4% 127,899,167$ 179,442,092$ +40.3%

162,197,565$ 188,822,201$ +16.4% 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 $1.12 $1.25 +11.3% $0.76 $0.89 +17.4%

4225 Large Hass #40 & #48 sizes $1.34 $1.43 +6.8% $1.21 $1.34 +11.4%

4770 X-Large Hass #36 sizes & larger $1.59 $1.50 -6.1% $1.41 $1.86 +31.8%

Other Greenskins, Pinkertons, non-Hass PLUs $1.38 $1.51 +9.0% $1.65 $1.69 +2.2%

Organic All Organic PLUs $1.72 $1.83 +6.9% $1.62 $1.73 +6.9%

Bags All bagged PLUs $1.03 $1.07 +4.0% $0.88 $0.96 +8.6%

$1.28 $1.34 +4.8% $1.02 $1.13 +11.0%

JAN

UA

RY -

SEPTEM

BER

: 201

3 vs

201

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Northeast Total U.S.

TOTAL CATEGORY UNITS

Northeast Total U.S.

TOTAL CATEGORY DOLLARS

Northeast Total U.S.

CATEGORY ASP ($/Unit)

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

• Avocado dollar sales in NE increased +16%, +3 points ahead of Total U.S. (+13%)

– Volume increased +11%, +9 points ahead of Total U.S.

• NE large avocado (4225) dollar gain of +10% was +5 points ahead of the national average

– Large avocados held the largest dollar share in both NE and Total U.S.

– NE large avocado ASP increased +7%, while the national ASP increased +11%

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

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Northeast: YTD Category Per Store Per Week Averages

• Northeast had a dollar velocity slightly lower than the national average– Northeast averaged

$321 per store per week through Q3 2014

• Northeast had a volume velocity lower than the national average– Northeast averaged

240 units per store per week through Q3 2014

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

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

• Average Retail Units Per Store– The peak quarter was 2014-Q2 at 3,195 units per store when ASP was $1.43/unit– The lowest quarter was 2012-Q4 at 1,967 units per store when ASP was at

$1.25/unit• ASP

– Lowest ASP to date occurred during 2013-Q1 at $1.16/unit– Highest ASP to date occurred during 2014-Q2 at $1.43/unit