Specialty Foods

Don Kremin

Group Vice President

Growth

Specialty Foods Group Purpose

DiversificationOperational synergies

Performance

• Leverage segment assets

• Splenda exit• CytoSport acquisition

3

In millions

*2015 sales number is estimated based on 5% organic growth plus expected addition of CytoSport

Drivers

2009 2010 2011 2012 2013 2014 2015est.*

Sales

Portfolio & Vision

Balanced Portfolio

Legacy PortfolioGrowth Platform

Retail Industrial Foodservice

Health and Nutrition Core54%* 46%*

Retail Industrial Foodservice*Projected 2015 segment profit percentage

Balanced Growth Strategies

Grow Muscle Milk Franchise

Grow Hormel Health Labs

Health and Nutrition Core

Realize Synergies between CytoSport and Century Foods

Expand value-added ingredients

Expand margins by offering branded solutions

Utilize capacity and innovate

Core - Offer Branded Solutions

• Kid’s Kitchen• Emeril

• Café Delight• Wholesome

ActiveRecovery

Health and Nutrition Consumer StrategyCore strategy based on linking protein to consumer need for various levels of activity

Protein

Least ActiveLifestyle

Recovering patient, aiming to get back to normal function

Active lifestyle, workout 2-3 times a week

Performance

Physical performance important aspect of life,

workout every day

Most ActiveLifestyle

Delivering Franchise Growth

• #1 brand for Dysphagia

• Expand domestic distribution

• Innovate

• Develop new trade channels

Global Multicultural Healthy / Holistic On-the-Go

• #1 brand ready-to-drink

• Relationship with Century Foods

Why CytoSport?BRAND

Global Multicultural Healthy / Holistic On-the-Go

9

Specialty

22% of sales

DSD

38% of sales

Channels of TradeBRAND

FDM* and Club

40% of sales

*Food, Drug, and Mass channels

• Weak state of Specialty & Club channel

• Lack of innovation

State of the Acquired Business

Opportunities

• Growing category• Distribution voids in FDM• Synergies with Century

Foods

BRAND

Challenges

2015 Focus

• Realize synergies between CytoSport and Century Foods

• Launch new items for all sales channels

• Complete rebranding in specialty channel

• Develop sales in FDM channel

BRAND

Plant Assets and Production

Competency

Sales, Marketing, Innovation, &

Financial Management

Value Creation

1. Improved asset and capacity utilization

2. Improved customer service

3. Synergy gains

CytoSport and Century Foods Synergies

Innovation in All Sales Channels

DSDFDM and Club Specialty Channel

Rebranding in Specialty ChannelSuccess with Monster Launch

Develop Sales in FDM and Club

Leveraged Hormel Foods

competency in FDM and Club to

drive incremental sales

Muscle Milk brand share the last 4 weeks is at 33%, with dollar sales up + 6%, and the category with growth of + 5%

Source: Nielsen Last 12/4Wks Ending 3/21/2015; US AOC+Convenience Total

Brand Share Total

Last 12WksLast

12Wks

RTD + Powder Total

Dollar ShareDollar Share

64%Single Serve

RTD Total

Take Home

Powder

+ 6%

Dollar % GrowthDollar % Growth

Last 12WksLast

12Wks

36%+ 14%

54%+ 8%

11%+ 18%

32%+ 9%

Last 4WksLast 4Wks

+ 3%

+ 13%

+ 5%

+ 14%

+ 6%

Last 4WksLast 4Wks

65%

35%

54%

11%

33%

Future Growth

Grow Muscle Milk Franchise

Grow Hormel Health Labs

Health and Nutrition Core

Realize Synergies between CytoSport and Century Foods

Expand value-added ingredients

Expand margins by offering branded solutions

Utilize capacity and innovate

Specialty Foods

Don Kremin

Group Vice President