PLAINS Region

Regional Composite

REGIONALDATA REPORT

JAN – JUN2015 vs. 2014

2

Methodology

• IRI gathers chain-wide sales across all RMAs (Retail Market Areas)– Regional Composite Reports reflect multi-outlet retail data. Multi-outlet reporting

includes an aggregation of the following channels: grocery, mass, club, drug, dollar and military

• 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:– Avocados– Total Produce: Includes avocados

• Timeframe: YTD Q2 (January – June) 2015

• Retail data provided by IRI / FreshLook Marketing– *HAB's calculation based in part on data reported by Information Resources, Inc. through its Freshlook

Service for the Avocado category for Multi-Outlet (MULO). The information is believed to be reliable at the time supplied by IRI but is neither all-inclusive nor guaranteed by IRI. Without limiting the generality of the foregoing, specific data points may vary considerably from other information sources.

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

3

Plains Region: Highlights - YTD Q2

• Overview based on the following geography:– The Plains Region captures the St. Louis Market, plus additional cities not included in

Markets

• 2015 vs. 2014, avocado dollars in Plains grew +12%, on par with the Total U.S. growth rate– Avocado dollars outpaced total produce (+3%) by +9 points– During the same time, category volume grew +24%– Category average selling price (ASP) decreased -10% to $1.08/unit– Small Hass avocados (4046) drove category dollar growth, adding over +$7MM– Small Hass avocados also drove volume growth adding nearly +10MM units to the

category

• Plains posted dollar and volume velocities lower than the national average– Plains averaged $304 and 282 units per store per week through Q2 2015

4

Plains: YTD Q2 - Avocados vs. Total Produce

• 2015 vs. 2014, avocado dollars grew +12%, outpacing total produce (+3%) by +9 points

• Plains held a 7% share of total produce dollars and a 5% share of avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate (All Periods)

5

Plains: YTD Q2 Avocado Retail Overview

• 2015 vs. 2014, Category dollars grew +12%– Units grew +24%

• 2015 vs. 2014, Category average selling price (ASP) decreased -10% to $1.08/unit

Plains Avocado Sales Posted Double-Digit Growth in Dollars and Units (2015 vs. 2014)

6

RETAIL DOLLARS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 17,562,327$ 25,102,409$ +42.9% 253,434,027$ 285,990,209$ +12.8%

4225 Large Hass #40 & #48 sizes 20,971,508$ 17,245,864$ -17.8% 389,686,532$ 413,086,630$ +6.0%

4770 X-Large Hass #36 sizes & larger 1,107,514$ 990,975$ -10.5% 31,826,619$ 44,757,598$ +40.6%

Other Greenskins, Pinkertons, non-Hass PLUs 270,480$ 219,279$ -18.9% 21,396,246$ 21,987,911$ +2.8%

Organic All Organic PLUs 930,348$ 1,133,948$ +21.9% 19,462,786$ 22,988,428$ +18.1%

Bags All bagged PLUs 6,195,917$ 8,033,476$ +29.7% 113,017,948$ 143,651,329$ +27.1%

47,038,094$ 52,725,953$ +12.1% 828,824,158$ 932,462,106$ +12.5%

RETAIL UNITS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 17,243,771 27,098,636 +57.2% 297,106,683 368,944,679 +24.2%

4225 Large Hass #40 & #48 sizes 14,924,409 12,160,629 -18.5% 289,296,532 322,478,032 +11.5%

4770 X-Large Hass #36 sizes & larger 464,239 397,839 -14.3% 16,754,415 24,798,131 +48.0%

Other Greenskins, Pinkertons, non-Hass PLUs 157,274 139,209 -11.5% 11,776,080 14,847,801 +26.1%

Organic All Organic PLUs 469,944 570,028 +21.3% 11,568,789 14,659,214 +26.7%

Bags All bagged PLUs 6,148,327 8,451,584 +37.5% 121,245,656 157,177,068 +29.6%

39,407,965 48,817,925 +23.9% 747,748,154 902,904,926 +20.7%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller $1.02 $0.93 -9.0% $0.85 $0.78 -9.1%

4225 Large Hass #40 & #48 sizes $1.41 $1.42 +0.9% $1.35 $1.28 -4.9%

4770 X-Large Hass #36 sizes & larger $2.39 $2.49 +4.4% $1.90 $1.80 -5.0%

Other Greenskins, Pinkertons, non-Hass PLUs $1.72 $1.58 -8.4% $1.82 $1.48 -18.5%

Organic All Organic PLUs $1.98 $1.99 +0.5% $1.68 $1.57 -6.8%

Bags All bagged PLUs $1.01 $0.95 -5.7% $0.93 $0.91 -2.0%

$1.19 $1.08 -9.5% $1.11 $1.03 -6.8%

TOTAL CATEGORY UNITS

Total U.S.Plains

JAN

UA

RY -

JUN

E: 2

014

vs 2

015

CATEGORY ASP ($/Unit)

Total U.S.Plains

TOTAL CATEGORY DOLLARS

Total U.S.Plains

Plains vs. Total U.S. - YTD Q2 PLU Comparisons

• Avocado dollar sales in PL increased +12%, on par with the Total U.S. growth rate

– Volume increased +24%, +3 points ahead of Total U.S.

• Small Hass avocados (PLU 4046) drove dollar growth in PL, adding over +$7MM to the category

– Small Hass avocados also drove category units adding nearly +10MM units

– Small Hass avocado ASP decreased -9% to $0.93/unit

Plains Outpaced Total U.S. in Volume Sales Growth Rate

7

Plains: YTD Q2 Category Per Store Per Week Averages

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

$304 per store per week through Q2 2015

• Plains had a volume velocity lower than the national average– Plains averaged 282

units per store per week through Q2 2015

Lower Dollars and Units Per Store Per Week in Plains Presents Opportunity for Growth

8

Plains: 2013-Q1 through 2015-Q2Units vs. ASP

• Retail Units– The peak quarter was 2015-Q2 at 26MM units when ASP was $1.08/unit– The lowest quarter was 2013-Q4 at 13MM units when ASP was at $1.26/unit

• ASP– Lowest ASP to date occurred during 2013-Q1, $1.01/unit– Highest ASP to date occurred during 2013-Q4 at $1.26/unit