food and beverage - harris williams · 3. food and beverage. ... –the $120 billion u.s. snack...

www.harriswilliams.de

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

FOOD AND BEVERAGEINDUSTRY UPDATE │ FEBRUARY 2015

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www.harriswilliams.de

WHAT WE’RE SEEING

1

CONTENTS

INDUSTRY VITAL SIGNS

EQUITY MARKET OVERVIEW

M&A MARKET OVERVIEW

DEBT MARKET OVERVIEW

RECENT M&A ACTIVITY

PUBLIC COMPARABLES

EARNINGS CALENDAR

GROUP OVERVIEW

Harris Williams & Co. is a leading advisor to the food and beverage market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas:

Agribusiness

Baked and Prepared Goods

Beverages

Branded and Private Label

Dairy

Distribution

Ingredients

Meat and Protein

Natural and Organic

Processing

Produce

Restaurant and Retail

Snacks

CONTACTS

Glenn GurtcheffManaging [email protected]+1 (612) 359-2702

Tim AlexanderManaging [email protected]+1 (612) 359-2716

Ryan [email protected]+1 (415) 217-3409

Brant [email protected]+1 (612) 359-2709

Ryan FreemanVice [email protected]+1 (612) 359-2703

Matt WhebbeVice [email protected]+1 (612) 359-2727

Andy WarczakVice [email protected]+1 (612) 359-2714

MARKET UPDATE

M&A deal activity in the food and beverage sector has remained robust to start

2015. Year-to-date there has been over $8.5 billion of announced transaction

value. The “better-for-you” segment continues to garner interest from strategic

acquirers, with Mondelez International announcing the acquisition of Enjoy Life

Foods. There were also two notable large, strategic deals highlighting continued

interest from strategic acquirers in pursuing transactions that are either

transformative in nature or help to consolidate more mature markets, such as

cereal. J.M. Smucker agreed to acquire Big Heart Pet Brands from KKR, Vestar,

and Centerview for $5.8 billion. Post announced its intention to acquire MOM

Brands for $1.2 billion. HW&Co. anticipates an active marketplace for the

remainder of the year as both strategic and private equity buyers continue to

pursue attractive assets.

FOOD AND BEVERAGE

INDUSTRY UPDATE │ FEBRUARY 2015

WHAT WE’VE BEEN DOING

SALE OF ENJOY LIFE FOODS TO MONDELEZ INTERNATIONAL

Overview

On February 13, Enjoy Life Foods completed its sale to Mondelez International, Inc. The acquisition will provide Mondelez with a fast-growing, better-for-you snack platform supported by a strong, well-recognized brand. Mondelez plans to operate Enjoy Life as an independent, wholly-owned subsidiary.

has been acquired by

Company Description

Enjoy Life Foods produces a variety of gluten-free snacks, free from the eight

most common allergens - wheat, dairy, peanuts, tree nuts, egg, soy, fish and

shellfish. The Company’s products include cookies, cereals, snack bars, fruit

mixes, plentils and grab-and-go packs. Enjoy Life pioneered the Free-From

market, which is estimated to be about $2 billion.

Key Value Drivers for Enjoy Life

Leading, extendable pure-play brand that is

viewed as the “trustmark” in the industry.

Growing market fueled by increased awareness for

food allergies and intolerances.

Passionate, growing consumer base.

Superior product offering that is free from gluten

and the common allergens, is verified non-GMO,

and does not sacrifice taste.

Appeals to consumers with food allergies as well as

those looking for healthy-lifestyle options.

Proven track record of successful product

introductions.

Compelling growth platform fueled by a rapidly

growing customer base and ability to deliver great

products, with revenue growth of 40% YOY since

2011.

http://www.harriswilliams.com/

mailto:[email protected]







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WHAT WE’VE BEEN DOING CONT.

2

FOOD AND BEVERAGE


WHAT WE’RE READING

On February 16th Mondelez International announced it’s acquisition of Enjoy Life Brands, a private snacking company

in the growing “free from” segment. Enjoy Life gives Mondelez a boost to their portfolio by giving them a brand on

trend with healthy-lifestyle options as well as a growing incidence and awareness of food allergies and intolerances.

Enjoy Life’s products are free from wheat, dairy, peanuts, tree nuts, egg, soy, fish and shellfish – which account for

about 90% of all food allergies.

Access to the full article here.

MONDELEZ ACQUIRES ENJOY LIFE BRANDS

After the Performance Food Group agreed to buy assets from both Sysco and U.S. Foods in order to assist the twocompanies get approval to merge the FTC has sent subpoena to a third party, signaling that they are not donereviewing the proposed merger. At this point it is unclear whether or not the FTC is preparing to clear the merger, or isseeking more information that can be used to block the deal.


REGULATORS MAY DELAY APPROVAL FOR SYSCO-U.S. FOODS DEAL

Nestlé announced on February 17th that they would be removing artificial flavoring and colors from it’s chocolatecandy products. The move comes as a response to a shift in consumer preferences, with customers desiring food withsimpler ingredients. Recent surveys from Nielsen show more than 60% of Americans say no artificial colors or flavors isimportant to their decisions in purchasing food products.


NESTLÉ USA TO REMOVE ARTIFICIAL FLAVORS AND COLORS FROM CHOCOLATE CANDY

CLOSED HW&CO. TRANSACTIONS

a portfolio company of




and






has divested selected assets to

and



has acquired




http://files.shareholder.com/downloads/AMDA-1A8CT3/3991708503x0x809560/9869C5C1-C8FC-42D9-990C-F562E06DCDA9/MDLZPRENJOYLIFE.pdf

http://www.reuters.com/article/2015/01/29/us-foods-m-a-sysco-idUSKBN0L20AV20150129

http://www.wsj.com/articles/nestle-usa-to-remove-artificial-ingredients-from-candy-1424176075

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KEY CONSUMER TRENDS FOR 2015

3

FOOD AND BEVERAGE


U.S. PRIVATE LABEL MARKET SIZE(1)

Better-For-You – The Free-From food categories are expected to continue

exhibiting strong growth, as consumers become increasingly health conscious

and more aware of food-related allergies. With this broad trend for healthier

food alternatives, restaurant menus are expected to serve-up more small

plate menu options than ever before.

Clean Label – Clean and clear label claims are expected to increase in 2015

as companies look to differentiate their products with labels such as non-

GMO, organic, additive-free, etc.

Going Local – Consumers are demanding more transparency when it comes

to proteins and produce. To cater to a more discerning palate, foodservice

operators are responding with offerings featuring locally sourced meat,

seafood, and vegetables as a point of differentiation.

GLOBAL GLUTEN-FREE PRODUCTS MARKET SIZE(5)

Private Label Trends – The private label market in the U.S. has yet to fully mature, with saturation levels below those in

Europe. Packaged Facts projects retail sales of private label food and beverages to grow at a 4% CAGR, reaching

$122 billion by 2018.(1)

Specialty Food Trends – The $120 billion U.S. snack industry is seeing increased demand for protein-packed snacks. This

trend is driving sales in categories such as jerky, which experienced 13% year-over-year sales growth in 2014; up 46%

since 2009.(2)

Frozen Foods Segment to Heat Up – After several years of declining sales, the frozen foods segment is expected to

climb from $22 billion in 2014 to $23 billion in 2019. Natural and organic initiatives are adding appeal to the category

previously plagued by negative perceptions of quality, taste, and healthfulness.(3)

Foodservice Trends – The premium fast casual segment is poised for growth heading into 2015. In 2013, the segment

grew at a rate of 11%, significantly outpacing a flat QSR segment. Foodservice products are being influenced by

trendy grocery items. For instance, fast food giant Taco Bell began testing Greek yogurt parfaits as a breakfast

offering, while Fazoli’s appeased restaurant –goers with a seasonal Nutella cheesecake.(4)

M&A Trends – 2014 activity was robust, with deal volume and aggregate deal values at or near record levels. This

momentum is expected to translate into a strong 2015, as strategic and financial buyers continue to put capital to

work in high-quality food and beverage assets.

$104

$122

$95

$100

$105

$110

$115

$120

$125

2014E 2018P

$4,204

$6,200

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

2014E 2018P

($ in billions)($ in millions)

KEY MARKET SIZE PROJECTIONS

(1) Packaged Facts

(2) Specialty Food Association

(3) Food Business News

(4) Foodservice Equity & Supplies

(5) Food Product Design

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80

100

120

140

Nov-10 May-11 Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14

Sa

les

Ind

ex

Restaurant Grocery

VITAL SIGNS

4

FOOD AND BEVERAGE


RESTAURANT AND GROCERY STORE SALES INDICES4

CONSUMER FOOD PRICE INDEX INFLATION2

Restaurant:

26.5%

Grocery:

14.8%

-0.5

1.0

2.5

4.0

5.5

Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14

Infla

tio

n (

%)

COMMODITY PRICE INDICES1

PROTEIN PRICE INDICES2,3

50

100

150

200

Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

Co

mm

od

ity P

ric

e In

de

x

Corn Soybeans Wheat Crude Oil

90

100

110

120

130

140

150

Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14

Pro

tein

Pri

ce

Ind

ex

Beef Pork Poultry

Beef:

43.6%

Pork:

17.6%

Poultry:

8.2%

Wheat:

(23.9%)

Soybeans:

(28.1%)

Corn:

(34.1%)

Crude Oil:

(48.8%)

PAGE |

Net Debt /

Industry and Segment 3 Month 1 Year 3 Month 1 Year Fwd PE LTM PE EV/EBITDA EBITDA

Protein Processing (3.2%) 25.0% (7.4%) (14.1%) 12.9x 14.2x 6.8x 3.0x

Fruit and Vegetable (0.0%) 9.7% (12.2%) 4.8% 15.5x 29.0x 12.4x 1.0x

Ingredients / Flavors 7.8% 23.5% 2.6% 13.1% 21.2x 29.6x 14.6x 1.4x

Agribusiness (6.3%) 11.7% 0.3% 5.2% 15.0x 19.5x 9.9x 1.2x

Branded Processed Foods 1.9% 8.1% 4.8% 13.6% 20.9x 28.1x 14.1x 2.7x

Private Label Foods (3.0%) 1.3% (2.3%) 45.5% 20.6x 41.8x 16.1x 6.7x

Natural / Organic Foods 7.3% 34.0% 1.8% 9.2% 32.3x 46.6x 17.3x 3.1x

Baked Goods / Snack Foods (3.0%) 6.6% (3.8%) 1.1% 22.4x 26.5x 11.9x 2.5x

Dairy (2.4%) 7.4% (4.7%) 15.7% 20.4x 24.2x 12.4x 2.2x

Non-Alcoholic Beverages 4.7% 7.9% 6.0% 14.9% 21.8x 24.3x 13.9x 1.6x

Alcoholic Beverages (2.7%) 9.2% 4.8% 10.6% 22.1x 25.4x 14.6x 2.9x

Food Retail 23.2% 7.7% 9.2% 9.8% 20.8x 22.9x 7.3x 2.3x

Grocery Distribution 10.0% 18.0% 6.5% 1.3% 26.5x 33.8x 11.5x 2.0x

Foodserv ice 2.1% (2.0%) 0.6% 9.7% 23.5x 34.1x 11.0x 3.5x

Quick Serv ice Restaurant 17.7% 17.0% 13.5% 33.5% 30.1x 34.2x 14.3x 2.3x

Fast Casual 0.6% (12.9%) (6.6%) (10.6%) 41.6x 31.1x 18.5x 0.8x

Differentiated Casual 0.7% 6.0% 1.2% 5.6% 30.4x 31.9x 14.1x 0.3x

Casual Dining Restaurant 9.6% 17.6% 6.2% 3.6% 21.9x 26.2x 10.4x 2.4x

Fine Dining 4.8% 3.0% 0.1% (3.7%) 19.4x 25.0x 11.0x 0.3x

Pizza 23.8% 33.9% 20.8% 13.4% 30.7x 36.7x 17.9x 4.1x

Beverage / Snack Retail 9.5% 14.5% 9.5% 10.9% 31.0x 28.3x 20.3x 0.0x

Family Restaurant 6.4% 12.0% 10.6% 38.5% 24.9x 22.6x 12.5x 2.2x

Overall Median 2.8% 12.0% 4.6% 10.2% 21.6x 26.2x 13.1x 2.2x

Co

nsu

me

r a

nd

Re

tail

Stock Price % Change EV/EBITDA % Change Current Valuation Stats

Fo

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an

d B

ev

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ge

Inp

uts

PUBLIC EQUITY MARKET OVERVIEW

5

FOOD AND BEVERAGE


PUBLIC COMPANY SECTOR PERFORMANCE5 (ONE YEAR CHANGE IN STOCK PRICE)

Fast Casual

Foodserv ice

Priv ate Label Foods

Fine Dining

Differentiated Casual

Baked Goods / Snack Foods

Dairy

Food Retail

Non-Alcoholic Bev erages

Branded Processed Foods

Alcoholic Bev erages

Fruit and Vegetable

Agribusiness

Family Restaurant

S&P

Bev erage / Snack Retail

Quick Serv ice Restaurant

Casual Dining Restaurant

Grocery Distribution

Ingredients / Flav ors

Protein Processing

Pizza

Natural / Organic Foods

-40.0% -27.5% -15.0% -2.5% 10.0% 22.5% 35.0% 47.5%

Inputs Food and Beverage Consumer and Retail

KEY TRADING STATISTICS5

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Price at As a % of Market Cash & Enterprise P/E

($ in millions, except per share data) Ticker 2/13/15 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA

Food and Beverage

Branded Processed Foods

Associated British Foods plc ABF $44.72 88.3% $35,178 $1,566 $842 $35,902 $21,010 $2,555 (0.6%) 6.3% 24.3% 12.2% 30.3x 1.71x 14.1x 1.74x 14.9x

B&G Foods Inc. BGS 29.60 85.5% $1,588 $1,045 $6 $2,628 $822 $188 19.6% 15.3% 31.4% 22.8% 32.9x 3.20x 14.0x 2.96x 12.4x

Campbell Soup Company CPB 46.88 97.0% 14,690 4,072 242 18,520 8,358 1,571 4.3% 2.7% 34.8% 18.8% 18.8x 2.22x 11.8x 2.28x 12.0x

ConAgra Foods, Inc. CAG 34.83 93.0% 14,835 8,479 132 23,182 17,617 2,336 7.9% 11.0% 20.2% 13.3% NM 1.32x 9.9x 1.44x 10.5x

General Mills, Inc. GIS 52.48 94.3% 31,685 10,535 895 41,325 17,642 3,229 (2.5%) 3.8% 34.4% 18.3% 21.9x 2.34x 12.8x 2.27x 11.5x

Hormel Foods Corporation HRL 55.73 100.0% 14,693 250 334 14,608 9,316 1,049 6.5% 5.7% 16.8% 11.3% 25.0x 1.57x 13.9x 1.46x 12.5x

Kellogg Company K 63.20 90.4% 22,438 7,370 443 29,365 14,580 1,865 (1.4%) 3.4% 35.9% 12.8% 36.1x 2.01x 15.7x 2.11x 11.5x

Kraft Foods Group, Inc. KRFT 64.42 95.1% 37,929 10,032 1,293 46,668 18,205 2,374 (0.1%) (0.7%) 26.9% 13.0% 37.0x 2.56x 19.7x 2.55x 12.4x

McCormick & Company, Incorporated MKC 74.64 96.8% 9,566 1,285 85 10,766 4,243 691 2.9% 4.7% 40.8% 16.3% 22.3x 2.54x 15.6x 2.52x 14.7x

Mondelez International, Inc. MDLZ 36.78 93.0% 61,788 16,700 1,631 76,857 34,244 5,096 (3.0%) (1.5%) 36.8% 14.9% 28.7x 2.24x 15.1x 2.46x 14.2x

Nestlé S.A. NESN 75.53 94.2% 241,008 26,355 4,244 263,118 101,648 18,950 4.3% 2.3% 47.8% 18.6% 23.7x 2.59x 13.9x 2.68x 14.2x

Post Holdings, Inc. POST 48.62 80.2% 2,545 3,945 177 6,313 3,188 388 191.4% 49.0% 24.9% 12.2% NM 1.98x 16.3x 1.38x 10.3x

The Hain Celestial Group, Inc. HAIN 59.48 98.4% 6,050 875 135 6,790 2,469 295 27.8% 26.8% 24.3% 11.9% 44.3x 2.75x 23.0x 2.43x 17.7x

The Hershey Company HSY 106.02 95.2% 23,417 2,184 472 25,129 7,422 1,656 3.9% 6.9% 45.0% 22.3% 28.1x 3.39x 15.2x 3.19x 14.1x

The J. M. Smucker Company SJM 113.89 99.1% 11,590 2,180 112 13,658 5,480 1,167 (4.1%) 0.8% 36.2% 21.3% 20.9x 2.49x 11.7x 2.27x 10.6x

Mean 17.1% 9.1% 32.0% 16.0% 28.5x 2.33x 14.8x 2.25x 12.9x

Median 3.9% 4.7% 34.4% 14.9% 28.1x 2.34x 14.1x 2.28x 12.4x

Private Label Foods

Seneca Foods Corp. SENE.A 26.58 81.4% 297 303 23 577 1,302 31 (1.5%) 1.6% 6.0% 2.4% 47.8x 0.44x 18.8x NA NA

Treehouse Foods, Inc. THS 80.00 86.1% 3,386 1,563 31 4,918 2,946 366 28.4% 12.8% 21.1% 12.4% 35.9x 1.67x 13.5x 1.37x 11.1x

Mean 13.5% 7.2% 13.5% 7.4% 41.8x 1.06x 16.1x 1.37x 11.1x

Median 13.5% 7.2% 13.5% 7.4% 41.8x 1.06x 16.1x 1.37x 11.1x

Natural / Organic Foods

Boulder Brands, Inc. BDBD 10.47 56.7% 640 308 19 929 514 68 14.4% 26.6% 38.1% 13.3% NM 1.81x 13.6x 1.65x 12.0x

SunOpta Inc. TSX:SOY 11.55 88.8% 775 151 7 919 1,276 70 9.3% 8.2% 11.6% 5.5% NM 0.72x 13.2x 0.70x 10.1x

The Hain Celestial Group, Inc. HAIN 59.48 98.4% 6,050 875 135 6,790 2,469 295 27.8% 26.8% 24.3% 11.9% 44.3x 2.75x 23.0x 2.43x 17.7x

The WhiteWave Foods Company WWAV 38.65 99.1% 6,739 1,517 50 8,206 3,437 392 35.2% 19.3% 33.6% 11.4% 48.9x 2.39x 20.9x 2.17x 16.9x

Mean 21.7% 20.2% 26.9% 10.5% 46.6x 1.9x 17.7x 1.7x 14.2x

Median 21.1% 22.9% 28.9% 11.7% 46.6x 2.1x 17.3x 1.9x 14.5x

Baked Goods / Snack Foods

ARYZTA AG SWX:ARYN $72.73 76.3% $6,413 $3,150 $930 $8,633 $6,436 $888 7.7% 4.9% 27.8% 13.8% 47.0x 1.34x 9.7x 1.40x 9.8x

Diamond Foods, Inc. DMND 26.78 75.3% 841 659 11 1,489 877 85 4.4% (4.3%) 23.9% 9.7% NM 1.70x 17.4x 1.58x NA

Flowers Foods, Inc. FLO 21.68 99.6% 4,551 763 8 5,307 3,749 430 (0.1%) 10.6% 48.0% 11.5% 26.4x 1.42x 12.3x 1.40x 11.6x

George Weston Limited WN 82.31 98.7% 10,528 12,698 2,061 21,165 35,619 2,526 9.9% 4.6% 26.4% 7.1% NM 0.59x 8.4x 0.57x 6.7x

Golden Enterprises Inc. GLDC 3.98 81.3% 47 8 2 52 133 6 (3.4%) (0.3%) 49.0% 4.8% 49.2x 0.39x 8.1x NA NA

Grupo Bimbo, S.A.B. de C.V. BIMBO A 2.73 94.2% 12,851 4,499 268 17,082 13,730 1,498 3.3% 15.7% 53.2% 10.9% 35.6x 1.24x 11.4x 1.24x 11.5x

Inventure Foods, Inc. SNAK 10.29 71.0% 201 89 1 289 271 23 35.2% 21.4% 18.0% 8.4% 22.4x 1.07x 12.8x 0.95x 10.1x

J&J Snack Foods Corp. JJSF 100.08 86.6% 1,870 0 98 1,773 929 143 5.6% 6.9% 31.1% 15.4% 26.6x 1.91x 12.4x 1.83x 11.2x

John B Sanfilippo & Son Inc. JBSS 37.24 76.5% 414 71 4 481 833 57 12.1% 6.8% 14.9% 6.9% 16.9x 0.58x 8.4x 0.55x NA

Lancaster Colony Corporation LANC 89.48 89.7% 2,447 0 256 2,191 1,064 165 3.0% (0.9%) 23.1% 15.5% 25.6x 2.06x 13.2x 1.97x 12.1x

Penford Corporation PENX 18.87 98.8% 241 79 0 320 438 31 (4.4%) 2.3% 14.1% 7.0% 26.2x 0.73x 10.4x 0.73x 7.2x

Snyder's-Lance, Inc. LNCE 30.72 98.3% 2,163 447 35 2,574 1,621 165 (8.0%) (0.3%) 35.7% 10.2% 36.6x 1.59x 15.6x 1.50x 12.7x

Mean 5.5% 5.6% 30.4% 10.1% 31.3x 1.2x 11.7x 1.2x 10.3x

Median 3.8% 4.7% 27.1% 10.0% 26.5x 1.3x 11.9x 1.4x 11.2x

EV / LTM EV / 2014ERevenue Growth LTM MarginsLast Twelve Months (LTM)

TRADING STATISTICS DETAIL5

6

FOOD AND BEVERAGE


PAGE |



Dairy

Bongrain SA ENXTPA:BH $64.31 86.8% $901 $1,698 $782 $1,818 $6,406 $351 21.2% 5.2% 32.6% 5.5% 18.1x 0.28x 5.2x 0.34x 6.7x

Danone BN 66.11 95.9% $39,623 $16,239 $4,208 $51,654 $28,348 $4,304 1.7% 2.0% 47.2% 15.2% 31.7x 1.82x 12.0x 2.09x 12.9x

Dean Foods Company DF 16.19 82.0% 1,519 917 16 2,420 9,503 189 5.4% (0.7%) 17.6% 2.0% NM 0.25x 12.8x 0.29x 7.1x

Emmi AG SWX:EMMN 341.91 81.6% 1,829 689 290 2,228 3,784 315 11.6% 5.4% 33.1% 8.3% 23.6x 0.59x 7.1x 0.61x 7.4x

Glanbia plc GL9 17.14 99.9% 5,067 762 121 5,708 3,317 288 8.6% 0.3% 29.0% 8.7% 28.7x 1.72x 19.8x 1.87x 19.2x

Lifeway Foods Inc. LWAY 19.83 93.4% 324 9 6 328 115 7 25.0% 19.2% 25.4% 6.2% NM 2.85x 46.2x 2.42x 22.7x

Parmalat SpA BIT:PLT 2.86 97.4% 5,237 148 1,354 4,031 6,888 547 (6.6%) 4.7% 19.4% 7.9% 22.5x 0.59x 7.4x 0.62x 7.5x

Saputo Inc. TSX:SAP 28.66 95.1% 11,207 1,719 41 12,885 9,179 956 10.8% 11.6% 10.4% 10.4% 24.8x 1.40x 13.5x 1.46x 13.4x

Mean 9.7% 6.0% 26.8% 8.0% 24.9x 1.19x 15.5x 1.21x 12.1x

Median 9.7% 5.0% 27.2% 8.1% 24.2x 1.00x 12.4x 1.04x 10.2x

Non-Alcoholic Beverages

A.G.Barr p.l.c. LSE:BAG $9.95 95.2% $1,149 $25 $19 $1,155 $443 $81 17.9% 5.8% 46.2% 18.3% 24.3x 2.61x 14.3x 2.83x 14.7x

Cott Corporation BCB 7.95 99.3% 739 609 47 1,300 2,043 176 (4.1%) (4.1%) 11.8% 8.6% NM 0.64x 7.4x 0.49x 4.2x

Dr Pepper Snapple Group, Inc. DPS 76.95 94.5% 14,960 2,591 237 17,314 6,121 1,413 2.1% 1.2% 59.3% 23.1% 21.6x 2.83x 12.3x 2.79x 11.6x

Keurig Green Mountain, Inc. GMCR 118.53 74.6% 19,163 277 606 18,834 4,707 1,204 6.8% 13.3% 38.6% 25.6% 32.5x 4.00x 15.6x 3.59x 14.1x

Lassonde Industries Inc. LAS.A 110.07 96.2% 769 374 0 1,143 1,000 105 (0.3%) 18.1% 27.3% 10.5% 21.0x 1.14x 10.9x NA NA

Monster Beverage Corporation MNST 117.74 96.3% 19,737 0 996 18,740 2,400 721 10.2% 14.2% 53.5% 30.0% 47.1x 7.81x 26.0x 6.84x 21.0x

National Beverage Corp. FIZZ 21.88 80.1% 1,014 20 42 992 639 81 (2.0%) 1.5% 34.0% 12.6% 21.9x 1.55x 12.3x 1.52x NA

Pepsico, Inc. PEP 99.13 98.4% 146,947 28,897 8,726 167,118 66,683 12,416 0.4% 0.1% 53.7% 18.6% 23.2x 2.51x 13.5x 2.56x 13.0x

Starbucks Corporation SBUX 91.58 99.6% 68,667 2,085 1,953 68,798 17,011 3,709 11.1% 11.8% 30.4% 21.8% 27.8x 4.04x 18.6x 3.49x 15.1x

The Coca-Cola Company KO 41.99 93.3% 183,921 41,745 21,675 203,991 45,998 12,500 (1.8%) (0.4%) 61.1% 27.2% 26.2x 4.43x 16.3x 4.49x 16.3x

Mean 4.0% 6.2% 41.6% 19.6% 27.3x 3.16x 14.7x 3.18x 13.8x

Median 1.2% 3.7% 42.4% 20.2% 24.3x 2.72x 13.9x 2.83x 14.4x

Alcoholic Beverages

Anheuser-Busch InBev SA/NV ENXTBR:ABI $121.45 97.0% $195,158 $55,511 $8,845 $241,824 $46,756 $18,010 11.9% 6.6% 60.2% 38.5% 24.2x 5.17x 13.4x 5.08x 12.6x

Brown-Forman Corporation BF.B 90.72 92.6% 19,175 1,122 235 20,062 3,053 1,015 4.3% 3.7% 69.7% 33.2% 29.2x 6.57x 19.8x 4.76x 17.9x

Carlsberg A/S CPSE:CARL B 80.67 88.7% 12,496 6,651 569 18,578 11,453 2,294 (2.8%) 0.7% 49.6% 20.0% 15.0x 1.62x 8.1x 1.91x 9.5x

Constellation Brands Inc. STZ 113.03 98.8% 21,858 7,346 71 29,132 5,963 1,746 39.6% 29.6% 43.5% 29.3% 29.0x 4.89x 16.7x NA 15.0x

Diageo plc DGE 28.28 89.5% 70,912 17,709 1,250 87,371 15,937 4,967 (14.6%) (0.0%) 58.5% 31.2% 23.7x 5.48x 17.6x 5.07x 15.2x

Heineken NV ENXTAM:HEIA 75.02 97.7% 43,052 13,404 824 55,631 21,939 4,698 (17.0%) 4.0% 38.9% 21.4% 24.7x 2.54x 11.8x 2.43x 10.5x

Kirin Holdings Company, Limited TSE:2503 12.98 92.8% 11,873 6,786 413 18,246 18,534 2,221 (13.6%) 7.9% 43.0% 12.0% 43.7x 0.98x 8.2x 0.97x 7.9x

Pernod-Ricard SA RI 118.37 95.5% 31,231 11,998 755 42,473 9,679 2,707 (14.7%) (2.7%) 62.1% 28.0% 27.9x 4.39x 15.7x 4.33x 14.6x

SABMiller plc LSE:SAB 53.22 89.7% 85,931 16,581 3,015 99,497 16,967 5,839 (0.9%) 2.1% 70.8% 34.4% 25.4x 5.86x 17.0x 5.67x 15.0x

Sapporo Holdings Ltd. TSE:2501 3.92 84.1% 1,530 2,167 83 3,614 4,378 363 (9.7%) 4.9% 35.2% 8.3% NM 0.83x 10.0x 0.79x 10.4x

Mean (1.7%) 5.7% 53.2% 25.6% 27.0x 3.83x 13.8x 3.44x 12.9x

Median (6.3%) 3.9% 54.0% 28.6% 25.4x 4.64x 14.6x 4.33x 13.6x

Inputs

Protein Processing

Cal-Maine Foods, Inc. CALM $35.73 74.0% $1,729 $56 $201 $1,583 $1,503 $234 10.5% 12.6% 23.8% 15.6% 12.5x 1.05x 6.8x 1.01x 5.9x

JBS S.A. BOVESPA:JBSS3 4.11 93.7% 11,889 15,659 5,126 22,423 46,208 3,813 17.4% 13.1% 15.0% 8.3% 21.4x 0.49x 5.9x 0.47x 5.5x

Sanderson Farms, Inc. SAFM 78.56 75.6% 1,819 20 166 1,673 2,775 446 3.4% 11.9% 18.8% 16.1% 7.3x 0.60x 3.7x 0.57x 3.4x

Seaboard Corp. SEB 3,876.00 91.3% 4,539 35 465 4,108 6,553 442 (1.3%) 5.7% 9.3% 6.7% 14.2x 0.63x 9.3x 0.62x NA

Tyson Foods, Inc. TSN 40.70 92.0% 16,538 7,527 383 23,682 39,636 2,237 14.0% 6.3% 7.7% 5.6% 16.9x 0.60x 10.6x 0.56x 7.4x

Mean 8.8% 9.9% 14.9% 10.5% 14.4x 0.67x 7.3x 0.64x 5.5x

Median 10.5% 11.9% 15.0% 8.3% 14.2x 0.60x 6.8x 0.57x 5.7x

EV / 2014ELTM MarginsLast Twelve Months (LTM) EV / LTMRevenue Growth

TRADING STATISTICS DETAIL5 CONT.

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Fruit and Vegetable

Calavo Growers Inc. CVGW $41.64 84.2% $720 $44 $7 $757 $783 $44 13.2% 14.4% 9.3% 5.6% NM 0.97x 17.2x 0.84x 13.3x

Fresh Del Monte Produce Inc. FDP 34.10 97.4% 1,918 140 37 2,021 3,878 233 8.3% 2.3% 8.7% 6.0% NM 0.52x 8.7x 0.51x 8.2x

Seneca Foods Corp. SENE.A 26.58 81.4% 297 303 23 577 1,302 31 (1.5%) 1.6% 6.0% 2.4% 47.8x 0.44x 18.8x NA NA

Total Produce plc ISE:T7O 1.19 89.4% 393 228 133 488 3,542 87 5.1% 1.2% 14.0% 2.5% 10.1x 0.14x 5.6x 0.17x 7.3x

Mean 6.3% 4.9% 9.5% 4.1% 29.0x 0.52x 12.6x 0.51x 9.6x

Median 6.7% 2.0% 9.0% 4.0% 29.0x 0.48x 12.9x 0.51x 8.2x

Ingredients / Flavors

Givaudan SA SWX:GIVN $1,910.16 91.2% $17,546 $1,215 $479 $18,282 $4,433 $909 (9.6%) 1.9% 46.0% 20.5% 29.6x 4.12x 20.1x 4.03x 16.9x

International Flavors & Fragrances Inc. IFF 116.96 98.6% 9,470 942 479 9,934 3,089 691 4.6% 3.5% 44.4% 22.4% 23.1x 3.22x 14.4x 3.22x 13.7x

Kerry Group plc ISE:KRZ 71.75 95.5% 12,615 1,861 317 14,159 7,914 952 3.5% 1.7% 43.2% 12.0% NM 1.79x 14.9x 2.08x 15.6x

Sensient Technologies Corporation SXT 61.31 95.8% 2,922 451 20 3,353 1,448 273 (1.3%) 0.4% 33.9% 18.8% 36.7x 2.32x 12.3x 2.36x 12.0x

Symrise AG XTRA:SY1 63.03 93.3% 8,182 1,818 266 9,734 2,473 527 0.6% 5.4% 43.5% 21.3% 34.6x 3.94x 18.5x 3.43x 16.1x

Tate & Lyle plc TATE 8.59 75.0% 3,985 1,291 527 4,749 4,592 608 (5.5%) 0.5% 26.2% 13.2% 14.7x 1.03x 7.8x 1.15x 8.3x

Mean (1.3%) 2.2% 39.5% 18.1% 27.8x 2.74x 14.7x 2.71x 13.8x

Median (0.4%) 1.8% 43.3% 19.7% 29.6x 2.77x 14.6x 2.79x 14.7x

Agribusiness

Archer-Daniels-Midland Company ADM $48.10 89.2% $30,625 $5,690 $1,614 $34,701 $81,201 $3,755 (9.6%) (2.7%) 5.9% 4.6% 14.0x 0.43x 9.2x 0.42x 8.4x

Bunge Limited BG 82.22 88.3% 11,926 5,200 1,705 15,421 57,828 1,782 (5.7%) 1.0% 4.7% 3.1% 20.9x 0.27x 8.7x 0.27x 7.2x

CF Industries Holdings, Inc. CF 301.40 97.0% 14,990 4,592 2,651 16,931 4,853 2,151 (13.8%) (4.8%) 39.7% 44.3% 10.9x 3.49x 7.9x 3.79x 7.7x

Darling Ingredients Inc. DAR 17.29 80.8% 2,847 2,283 193 4,937 3,323 462 93.2% 27.8% 25.2% 13.9% NM 1.49x 10.7x 1.32x 8.5x

Monsanto Company MON 124.77 96.9% 60,339 8,179 3,152 65,366 15,582 4,686 3.4% 7.8% 54.2% 30.1% 24.7x 4.19x 13.9x 3.96x 12.8x

Nutreco N.V. ENXTAM:NUO 51.50 96.3% 3,457 667 167 3,958 6,358 374 (11.8%) 1.2% 19.7% 5.9% 20.5x 0.62x 10.6x 0.64x 10.5x

The Andersons, Inc. ANDE 45.11 64.5% 1,295 377 115 1,558 4,540 137 (19.0%) (0.3%) 8.7% 3.0% 11.7x 0.34x 11.3x 0.35x 7.4x

The Mosaic Company MOS 52.33 99.5% 19,233 3,833 2,375 20,691 9,056 2,243 10.8% (5.8%) 21.3% 24.8% 19.5x 2.28x 9.2x 2.03x 8.0x

Mean 5.9% 3.0% 22.4% 16.2% 17.5x 1.64x 10.2x 1.60x 8.8x

Median (7.7%) 0.4% 20.5% 9.9% 19.5x 1.05x 9.9x 0.98x 8.2x

Consumer and Retail

Food Retail

Costco Wholesale Corporation COST $147.10 93.8% 64,798 5,034 7,619 62,213 114,489 4,374 7.5% 7.8% 12.6% 3.8% 30.6x 0.54x 14.2x 0.52x 13.1x

Establishments Delhaize Freres DELB 88.01 99.5% 8,944 3,434 1,769 10,609 26,898 1,491 (5.3%) (1.2%) 24.0% 5.5% 32.9x 0.39x 7.1x 0.41x 6.4x

Fairway Group Holdings Corp. FWM 5.55 60.1% 242 258 40 460 799 (4) 5.9% 25.8% 31.4% NM NM 0.58x NM 0.57x 11.3x

Ingles Markets, Incorporated IMKT.A 42.26 87.5% 856 970 6 1,820 3,855 233 2.8% 2.3% 22.5% 6.0% 16.3x 0.47x 7.8x 0.47x 7.5x

J. Sainsbury plc LSE:SBRY 4.11 75.4% 7,854 4,981 2,304 10,531 38,904 2,256 1.2% 4.5% 6.2% 5.8% NM 0.27x 4.7x 0.29x 5.5x

Koninklijke Ahold N.V. ENXTAM:AH 18.68 99.0% 15,391 3,993 2,219 17,166 40,299 2,676 (9.7%) (0.1%) 26.5% 6.6% 18.9x 0.43x 6.4x 0.43x 6.7x

Natural Grocers by Vitamin Cottage NGVC 30.28 67.9% 681 28 2 707 546 44 19.9% 25.5% 29.0% 8.0% 48.2x 1.30x 16.3x 1.08x 14.2x

Roundy's, Inc. RNDY 4.25 57.9% 205 657 47 815 4,229 142 21.5% 3.4% 26.8% 3.3% NM 0.19x 5.8x 0.20x 6.7x

Sprouts Farmers Market, Inc. SFM 38.38 96.0% 5,806 385 118 6,072 2,841 244 23.1% NA 29.9% 8.6% NM 2.14x 24.9x 1.79x 20.1x

SUPERVALU Inc. SVU 10.21 97.9% 2,668 3,223 418 5,473 17,411 759 1.8% (21.9%) 14.8% 4.4% 21.4x 0.31x 7.2x 0.30x 7.0x

Tesco PLC LSE:TSCO 3.72 70.8% 30,209 23,001 7,006 46,203 102,935 5,666 3.3% 0.3% 6.1% 5.5% 23.0x 0.45x 8.2x 0.49x 9.7x

The Kroger Co. KR 72.86 99.9% 35,798 11,536 264 47,070 106,480 4,883 7.4% 6.2% 21.3% 4.6% 22.6x 0.44x 9.6x 0.42x 8.9x

The Pantry, Inc. PTRY 36.72 98.5% 863 930 123 1,670 6,635 261 (4.0%) (3.7%) 13.0% 3.9% 22.8x 0.25x 6.4x 0.25x 7.2x

Village Super Market Inc. VLGE.A 28.17 93.9% 396 47 69 373 1,541 55 4.5% 4.9% 27.1% 3.5% 25.2x 0.24x 6.8x 0.24x NA

Weis Markets, Inc. WMK 46.64 88.4% 1,255 0 94 1,160 2,749 160 1.8% 0.9% 27.0% 5.8% 22.0x 0.42x 7.3x NA NA

Whole Foods Market, Inc. WFM 56.15 98.9% 20,229 64 738 19,555 14,626 1,351 10.0% 11.7% 35.5% 9.2% 35.1x 1.34x 14.5x 1.20x 13.3x

Mean 5.7% 4.4% 22.1% 5.6% 26.6x 0.61x 9.8x 0.58x 9.8x

Median 3.9% 3.4% 25.2% 5.5% 22.9x 0.43x 7.3x 0.43x 8.2x

EV / 2014ELast Twelve Months (LTM) Revenue Growth EV / LTMLTM Margins


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Grocery Distribution

AMCON Distributing Co. DIT $82.50 88.8% $51 $25 $0 $75 $859 $12 3.7% 5.6% 8.9% 1.4% 11.6x 0.09x 6.3x NA NA

Core-Mark Holding Company, Inc. CORE 67.61 96.0% 1,563 65 24 1,603 8,056 104 8.0% 10.8% 7.0% 1.3% 36.5x 0.20x 15.5x 0.15x 12.1x

SpartanNash Company SPTN 25.99 94.8% 975 557 8 1,523 7,355 201 178.1% 41.9% 14.8% 2.7% 37.1x 0.21x 7.6x 0.19x 6.7x

United Natural Foods, Inc. UNFI 81.10 99.4% 4,055 547 18 4,585 7,185 275 14.8% 15.2% 16.4% 3.8% 31.0x 0.64x 16.7x 0.54x 13.8x

Mean 51.2% 18.4% 11.8% 2.3% 29.1x 0.28x 11.5x 0.29x 10.9x

Median 11.4% 13.0% 11.8% 2.1% 33.8x 0.20x 11.5x 0.19x 12.1x

Foodservice

Colabor Group Inc. TSX:GCL $2.68 69.6% $74 $170 $0 $244 $1,312 $28 (5.9%) 2.1% 2.2% 2.1% NM 0.19x 8.7x 0.20x 7.3x

Sysco Corporation SYY 39.54 95.4% 23,421 7,637 4,908 26,150 48,097 2,383 5.8% 5.4% 17.5% 5.0% 26.9x 0.54x 11.0x 0.52x 10.5x

The Chefs' Warehouse, Inc. CHEF 22.76 94.1% 570 145 5 710 802 40 28.7% 28.7% 24.7% 5.0% 41.4x 0.89x 17.7x 0.72x 11.9x

Mean 9.5% 12.1% 14.8% 4.0% 34.1x 0.54x 12.4x 0.48x 9.9x

Median 5.8% 5.4% 17.5% 5.0% 34.1x 0.54x 11.0x 0.52x 10.5x

Quick Service Restaurant

Brickworks Limited BKW 10.11 87.0% 1,500 306 20 1,786 623 73 14.7% (3.7%) 30.7% 11.6% 18.8x 2.86x 24.6x 3.18x 13.9x

Jack in the Box Inc. JACK 87.12 98.4% 3,366 508 11 3,863 1,484 269 (0.4%) (3.1%) 26.1% 18.1% 38.5x 2.60x 14.3x 2.53x 13.6x

McDonald's Corp. MCD 95.65 92.2% 93,087 15,130 3,233 104,984 27,441 9,617 (2.4%) 0.5% 38.1% 35.0% 19.8x 3.83x 10.9x 4.06x 11.4x

Popeyes Louisiana Kitchen, Inc. PLKI 61.07 97.4% 1,425 110 10 1,525 227 70 10.7% 14.4% 65.7% 31.0% 40.2x 6.71x 21.7x 5.74x 17.9x

Restaurant Brands International Inc. QSR 38.74 90.1% 18,094 3,017 1,037 20,074 1,046 708 (18.6%) (23.5%) 79.1% 67.6% NM 19.19x 28.4x 18.12x 26.3x

Sonic Corp. SONC 31.59 98.3% 1,691 461 45 2,106 566 147 4.1% 1.2% 53.9% 26.0% 35.4x 3.72x 14.3x 3.54x 13.0x

The Wendy's Company WEN 10.95 95.2% 4,000 1,447 342 5,104 2,061 369 (17.1%) (5.4%) 32.0% 17.9% 34.2x 2.48x 13.8x 2.78x 12.7x

Yum! Brands, Inc. YUM 74.69 89.4% 32,676 3,344 578 35,442 13,279 2,795 1.5% 1.7% 25.9% 21.0% 32.2x 2.67x 12.7x 2.50x 11.9x

Mean (0.9%) (2.2%) 43.9% 28.6% 31.3x 5.51x 17.6x 5.31x 15.1x

Median 0.6% (1.3%) 35.1% 23.5% 34.2x 3.29x 14.3x 3.36x 13.3x

Fast Casual

Chipotle Mexican Grill, Inc. CMG $674.89 92.7% 20,936 0 758 20,178 4,108 828 27.8% 21.9% 37.8% 20.2% 47.8x 4.91x 24.4x 4.18x 20.1x

El Pollo Loco Holdings, Inc. LOCO 24.20 58.0% 902 189 42 1,048 331 56 12.8% NA 25.4% 17.0% 38.8x 3.17x 18.7x 2.87x 16.4x

Fiesta Restaurant Group, Inc. FRGI 61.80 93.3% 1,629 69 2 1,696 591 79 17.3% 36.0% 25.2% 13.4% NM 2.87x 21.5x 2.55x 18.1x

The Habit Restaurants, Inc. HABT 30.87 69.8% 255 14 2 266 162 17 17.3% 36.0% 21.9% 10.7% 1.1x 1.64x 15.4x 1.31x 15.4x

Noodles & Company NDLS 25.96 62.5% 773 22 2 793 387 43 17.3% 36.0% 20.2% 11.2% NM 2.05x 18.4x 1.72x 14.5x

Panera Bread Company PNRA 155.02 80.2% 4,181 100 146 4,135 2,529 397 17.3% 36.0% 34.1% 15.7% 23.3x 1.63x 10.4x 1.51x 10.2x

Potbelly Corporation PBPB 13.92 60.4% 403 1 69 335 317 32 17.3% 36.0% 30.3% 10.0% NM 1.06x 10.5x 0.95x 10.2x

Zoe's Kitchen, Inc. ZOES 31.34 81.6% 604 22 41 585 160 4 47.9% NA 20.3% 2.8% NM 3.65x 130.8x 2.83x 35.4x

Mean 21.9% 33.7% 26.9% 12.6% 27.8x 2.62x 31.3x 2.24x 17.5x

Median 17.3% 36.0% 25.3% 12.3% 31.1x 2.46x 18.5x 2.14x 15.9x

Differentiated Casual

BJ's Restaurants, Inc. BJRI $45.62 88.9% $1,190 $32 $24 $1,198 $831 $84 9.4% 12.6% 17.1% 10.1% NM 1.44x 14.2x 1.32x 11.6x

Buffalo Wild Wings Inc. BWLD 187.27 95.6% 3,521 0 113 3,409 1,516 238 19.7% 24.6% 24.4% 15.7% 37.8x 2.25x 14.3x 1.87x 11.9x

Chuy's Holdings, Inc. CHUY 22.04 50.8% 362 9 3 368 234 26 16.9% 23.6% 18.5% 11.1% 31.9x 1.57x 14.1x 1.33x 12.1x

Ignite Restaurant Group, Inc. IRG 6.95 42.7% 182 163 33 312 847 24 17.3% 36.0% 29.9% 2.8% NM 0.37x 13.1x 0.37x 7.9x

The Cheesecake Factory Incorporated CAKE 48.22 87.5% 2,301 102 22 2,381 1,977 228 5.3% 4.0% 42.5% 11.5% 24.6x 1.20x 10.5x 1.12x 9.6x

Mean 13.7% 20.2% 26.5% 10.3% 31.5x 1.37x 13.2x 1.20x 10.6x

Median 16.9% 23.6% 24.4% 11.1% 31.9x 1.44x 14.1x 1.32x 11.6x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2014E


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Casual Dining Restaurant

Bloomin' Brands, Inc. BLMN 24.45 92.4% 3,072 1,414 145 4,342 4,385 426 7.5% 6.5% 16.3% 9.7% 24.2x 0.99x 10.2x 0.95x 9.2x

Brinker International, Inc. EAT 59.16 94.3% 3,734 929 78 4,585 2,969 443 3.7% 2.2% 19.5% 14.9% 24.7x 1.54x 10.4x 1.49x 9.5x

Darden Restaurants, Inc. DRI 61.72 99.0% 7,656 1,554 158 9,053 6,423 643 29.9% (6.0%) 20.1% 10.0% NM 1.41x 14.1x 1.32x 11.3x

DineEquity, Inc. DIN 104.49 94.9% 1,981 1,365 133 3,213 648 272 1.1% (17.0%) 60.2% 41.9% 26.2x 4.95x 11.8x 4.84x 11.7x

Red Robin Gourmet Burgers Inc. RRGB 77.77 92.7% 1,090 147 22 1,215 1,146 118 12.7% 7.8% 22.6% 10.3% 34.6x 1.06x 10.3x 0.94x 8.6x

Ruby Tuesday, Inc. RT 6.40 74.7% 396 252 48 601 1,147 80 (3.6%) (4.2%) 17.0% 7.0% NM 0.52x 7.5x 0.53x 10.1x

Texas Roadhouse, Inc. TXRH 34.59 97.0% 2,402 53 59 2,395 1,554 186 14.6% 13.0% 33.0% 12.0% 28.6x 1.54x 12.9x 1.40x 11.4x

Mean 9.4% 0.3% 26.9% 15.1% 27.7x 1.72x 11.0x 1.64x 10.3x

Median 7.5% 2.2% 20.1% 10.3% 26.2x 1.41x 10.4x 1.32x 10.1x

Fine Dining

Del Frisco's Restaurant Group, Inc. DFRG 19.14 64.6% 448 6 1 453 293 41 15.0% 16.8% 24.4% 14.0% 29.0x 1.54x 11.0x 1.33x 9.3x

Ruth's Hospitality Group Inc. RUTH 15.73 98.4% 556 30 3 583 346 53 (14.9%) (2.0%) 25.0% 15.3% 21.0x 1.68x 11.0x 1.54x 10.5x

Mean 0.0% 7.4% 24.7% 14.6% 25.0x 1.6x 11.0x 1.4x 9.9x

Median 0.0% 7.4% 24.7% 14.6% 25.0x 1.6x 11.0x 1.4x 9.9x

Pizza

Domino's Pizza, Inc. DPZ 100.00 96.2% 5,501 1,524 31 6,994 1,917 364 8.0% 5.6% 30.1% 19.0% 35.8x 3.65x 19.2x 3.45x 17.4x

Papa John's International Inc. PZZA 62.11 95.9% 2,494 225 17 2,702 1,561 151 10.0% 9.2% 33.5% 9.7% 37.6x 1.73x 17.9x 1.65x 15.6x

Papa Murphy's Holdings, Inc. FRSH 13.25 92.5% 224 115 1 339 92 22 19.8% NA 55.1% 23.4% NM 3.69x 15.7x 3.36x 11.8x

Mean 12.6% 7.4% 39.6% 17.4% 36.7x 3.02x 17.6x 2.82x 14.9x

Median 10.0% 7.4% 33.5% 19.0% 36.7x 3.65x 17.9x 3.36x 15.6x

Beverage / Snack Retail

Dunkin' Brands Group, Inc. DNKN $46.70 88.0% $4,884 $1,811 $208 $6,487 $749 $371 4.9% 6.0% 78.9% 49.6% 28.3x 8.66x 17.5x 8.17x 15.9x

Jamba, Inc. JMBA 14.50 85.8% 252 0 30 222 218 6 (4.9%) (0.9%) 36.2% 3.0% NM 1.02x 34.3x 1.13x 12.3x

Krispy Kreme Doughnuts, Inc. KKD 21.06 98.0% 1,364 9 44 1,328 478 60 2.6% 6.7% 18.3% 12.6% 38.1x 2.78x 22.0x 2.47x 17.1x

Starbucks Corporation SBUX 91.58 99.6% 68,667 2,085 1,953 68,798 17,011 3,709 11.1% 11.8% 30.4% 21.8% 27.8x 4.04x 18.6x 3.49x 15.1x

Think Media NV THI 0.33 72.6% 2 5 1 6 25 (3) (14.2%) (12.1%) 18.2% NM NM 0.26x NM NA NA

Mean (0.1%) 2.3% 36.4% 21.7% 31.4x 3.35x 23.1x 3.82x 15.1x

Median 2.6% 6.0% 30.4% 17.2% 28.3x 2.78x 20.3x 2.98x 15.5x

Family Restaurant

Bob Evans Farms, Inc. BOBE $56.41 95.9% $1,331 $469 $4 $1,796 $1,326 $112 (1.0%) (7.2%) 35.0% 8.5% NM 1.35x 16.0x 1.29x 10.7x

Cracker Barrel Old Country Store, Inc. CBRL $130.79 91.8% $3,128 $402 $106 $3,424 $2,718 $289 1.9% 3.7% 67.3% 10.6% 22.6x 1.26x 11.8x 1.21x 11.3x

Denny's Corporation DENN 10.68 92.2% 905 172 1 1,075 458 77 (1.4%) (5.6%) 37.6% 16.9% 35.8x 2.35x 13.9x 2.26x 12.3x

Frisch's Restaurants, Inc. FRS 27.79 89.9% 142 6 3 145 211 21 3.0% 7.4% 10.5% 10.2% 14.0x 0.69x 6.8x NA NA

Luby's, Inc. LUB 5.03 72.8% 144 48 2 190 395 15 1.2% 3.9% 30.9% 3.9% NM 0.48x 12.5x 0.47x NA

Mean 0.8% 0.4% 36.2% 10.0% 24.1x 1.23x 12.2x 1.31x 11.5x

Median 1.2% 3.7% 35.0% 10.2% 22.6x 1.26x 12.5x 1.25x 11.3x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2014E


10

FOOD AND BEVERAGE


PAGE |

PUBLIC EQUITY MARKET OVERVIEW CONT.

11

FOOD AND BEVERAGE


Close Date Filing Date Issuer Ticker Transaction Type

Gross Proceeds

($mm) Use of Funds

02/10/15 12/04/14 Captiva Verde Industries Ltd VEG.H Follow-On $0.1 General Corp. Purp.

01/28/15 03/10/14 Post Holdings Inc POST Follow-On $355.1 Acquisition Fin.

01/28/15 01/28/15 Atlantica Seafoods Co Inc N/A IPO $3.8 Prod Dev / R&D, General Corp.

Purp., Working Capital

01/23/15 01/16/15 Avidus Management Group Inc AVD Follow-On $0.5 General Corp. Purp. & Working

Capital

01/22/15 01/22/15 Feronia Inc FRN Convertible $7.2 Working Capital

12/30/14 12/30/14 ZRHO Beverages Inc N/A IPO $0.1 Marketing & Sales

Working Capital

12/11/14 12/11/14 Sweets & Treats Inc N/A IPO $0.0 Secondary

12/04/14 12/04/14 Captiva Verde Industries Ltd VEG.H Follow-On $2.2 General Corp. Purp.

11/27/14 11/27/14 Naturally Splendid Entrp Ltd NSP Follow-On $1.3 Working Capital

Property Development

11/18/14 09/08/14 Pinnacle Foods Inc PF Follow-On $775.6 Secondary

10/31/14 10/31/14 Calavo Growers Inc CVGW Follow-On $64.0 Secondary

10/28/14 10/28/14 RiceBran Technologies RBIT Follow-On $10.8 General Corp. Purp.

10/23/14 10/23/14 Innovative Food Holdings Inc IVFH Follow-On $13.0 Secondary

RECENT EQUITY OFFERINGS6

EARNING RELEASE CALENDAR5

February 2015

Date Company

2/25/2015 Campbell Soup Company (NYSE:CPB)

2/25/2015 Sprouts Farmers Market, Inc. (NasdaqGS:SFM)

2/25/2015 Koninklijke Ahold N.V. (ENXTAM:AH)

2/26/2015 Anheuser-Busch InBev SA/NV (ENXTBR:ABI)

2/26/2015 Boulder Brands, Inc. (NasdaqGS:BDBD)

2/26/2015 Maple Leaf Foods Inc. (TSX:MFI)

2/27/2015 Koninklijke Wessanen N.V. (ENXTAM:WES)

March 2015

Date Company

3/4/2015 Darling Ingredients Inc. (NYSE:DAR)

3/5/2015 Costco Wholesale Corporation (NasdaqGS:COST)

3/5/2015 The Chefs' Warehouse, Inc. (NasdaqGS:CHEF)

3/5/2015 The Kroger Co. (NYSE:KR)

3/6/2015 Parmalat SpA (BIT:PLT)

3/6/2015 Unilever plc (LSE:ULVR)

3/10/2015 Royal Unibrew A/S (CPSE:RBREW)

3/16/2015 ARYZTA AG (SWX:ARYN)

3/18/2015 General Mills, Inc. (NYSE:GIS)

PAGE |

The Hershey Company agreed to acquire KRAVE Pure Foods from the Alliance Growth Consumer Fund and company management.

KRAVE represents a growth opportunity for Hershey, allowing them to tap into a meat snacks category, which is growing at a 10% annual rate.

Hershey plans to operate KRAVE as standalone business with founder Jonathan Sebastiani continuing to lead the company.

Enterprise Value: N/ARevenue Multiple: N/AEBITDA Multiple: N/A Announced: January 29, 2015

PUBLIC EQUITY MARKET OVERVIEW CONT.

12

FOOD AND BEVERAGE


FOOD AND BEVERAGE INDUSTRY STOCK PERFORMANCE5

HERSHEY TO ACQUIRE KRAVE PURE FOODS

Highlighted Food and Beverage M&A Transactions

POST TO ACQUIRE MOM BRANDS COMPANY

J.M. SMUCKER TO ACQUIRE BIG HEART PET BRANDS

Post agreed to acquire MOM Brands Company, the producer of Malt-O-Meal, for nearly $1.2 billion in cash and stock.

The deal combines the third and fourth largest cereal makers in the U.S. and is currently subject to regulatory approval as a condition to close.

Post seeks to recognize synergies by reducing production capacity and effectively lowering costs in response to shrinking cereal market.

Enterprise Value: $1.2 bnRevenue Multiple: 1.5xEBITDA Multiple: 6.8xAnnounced: January 26, 2015

M&A MARKET OVERVIEW

75

85

95

105

115

125

135

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15

Restaurant Protein Processing/Dairy Natural/Organic Beverage Private Label Food Manufacturing S&P 500

J.M. Smucker agreed to acquire Big Heart Pet Brands from a selling group comprised of KKR, Vestar Capital Partners and Centerview Capital.

The acquisition represents a diversification of J.M. Smucker’s business into the growing $21 billion pet food industry.

Big Heart Pet Brands FY2015 estimated sales and EBITDA are $2.3 billion and $450 million, respectively.

Enterprise Value: $5.8 bnRevenue Multiple: 2.6xEBITDA Multiple: 9.8xAnnounced: February 3, 2015

21.3%

20.4%

14.8%

14.6%

9.2%

(8.7%)

PAGE |

RECENT FOOD AND BEVERAGE M&A ACTIVITY

13

FOOD AND BEVERAGE


North American Food and Beverage M&A Trends5

MEDIAN FOOD & BEV. TRANSACTION MULTIPLES

PRIVATE EQUITY INVESTMENTS & EXITS

Latest Deals and Announced Private Equity Activity5

LAST 10 DEALS ANNOUNCED

ANNOUNCED FOOD & BEV. TRANSACTIONS

Announced Target Buyer1/0/1900 0 Cargill, Incorporated

2/16/2015 Enjoy Life Foods, LLC Mondelez International, Inc.

2/13/2015 Better Bakery, Manufacturing Assets AdvancePierre Foods, Inc.

2/13/2015 Cotton Patch Cafe, Inc. Altamont Capital Partners

2/13/2015 Ashbury Chocolates Limited N.V. Baronie Chocolates Belgium

2/12/2015 World's Finest Chocolate Barry Callebaut AG (SWX:BARN)

2/11/2015 U.S. Roasterie, Inc. Ronnoco Coffee (Huron Capital)

2/10/2015 Dulcette Technologies LLC Viachem, LLC

2/10/2015 MRRM Inc. (TSXV:MRR) Marbour SAS

2/10/2015 Lakeview Farms LLC. Falcon Investment Advisors

2/4/2015 Oilseed Works Inc. Mettrum Health Corp. (TSXV:MT)

9.9x

8.8x 8.3x 8.0x

11.3x

9.2x 9.7x

0.00x

0.25x

0.50x

0.75x

1.00x

1.25x

1.50x

1.75x

2.00x

0x

2x

4x

6x

8x

10x

12x

14x

16x

2008 2009 2010 2011 2012 2013 2014

EV

/ LTM

Sa

les M

ultip

leEV

/ L

TM E

BIT

DA

Mu

ltip

le

EV / LTM EBITDA EV / LTM Sales

$110.2

$9.3

$67.2

$8.2

$24.0

$55.7

$120.7

0

50

100

150

200

250

300

350

$0

$20

$40

$60

$80

$100

$120

$140

2008 2009 2010 2011 2012 2013 2014

Nu

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f Tran

sa

ctio

ns

Ag

gre

ga

te

D

ea

l V

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e (

$ in

billio

ns)

Aggregate Deal Value # of deals

27

46

21

14

32

25 26

38

31

8

27 26 27

17

34

18

36

4348

4

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Transactions

Number of Investments Number of Exits

PAGE |

Enterprise Enterprise Value Private Equity Geographic

Announced Target Seller Buyer

Value

($mm) Sales EBITDA EBIT Involvement Location

2/16/2015 Enjoy Life Foods, LLC - Mondelez International, Inc. - - - - N.A.

2/13/2015 Better Bakery, Manufacturing Assets - AdvancePierre Foods, Inc. - - - - N.A.

2/13/2015 Cotton Patch Cafe, Inc. - Altamont Capital Partners - - - - P N.A.

2/13/2015 Ashbury Chocolates Limited - N.V. Baronie Chocolates Belgium - - - - EU

2/12/2015 World's Finest Chocolate Inc., Manufact. World's Finest Chocolate Inc. Barry Callebaut AG (SWX:BARN) - - - - Cross Border

2/11/2015 U.S. Roasterie, Inc. - Ronnoco Coffee (Huron Capital) - - - - P N.A.

2/10/2015 Dulcette Technologies LLC Camlin Fine Sciences Viachem, LLC - - - - N.A.

2/10/2015 MRRM Inc. (TSXV:MRR) Trebuchet, Inc. Marbour SAS $10.6 0.2x 8.1x - Cross Border

2/10/2015 Lakeview Farms LLC. - Falcon Investment Advisors - - - - P N.A.

2/4/2015 Oilseed Works Inc. - Mettrum Health Corp. (TSXV:MT) $0.2 - - - N.A.

2/4/2015 Yellow Chips B.V. - Diamond Foods, Inc. - - - - Cross Border

2/4/2015 Orion Seafood International, Inc. - Chicken of the Sea Frozen Foods - - - - N.A.

2/3/2015 Hawthorne Plaza - CalPERS - - - - N.A.

2/3/2015 Big Heart Pet Brands KKR; Vestar; Centerview The J.M. Smucker Company $5,800.0 2.6x 9.8x - P N.A.

2/2/2015 11 Distribut ion Centers US Foods, Inc. Performance Food Group Company $850.0 0.2x - - N.A.

2/2/2015 funkin Limited - A.G.Barr p.l.c. (LSE:BAG) $31.5 2.3x - - EU

2/2/2015 Sweet Frog Enterprises, LLC - Boxwood Capital Partners - - - - N.A.

2/2/2015 Danube Foods Group B.V. Salford Capital Partners Inc. Mid Europa Partners LLP $651.6 - - - P EU

1/29/2015 Krave Pure Foods, Inc. Alliance Consumer Growth The Hershey Company (NYSE:HSY) - - - - N.A.

1/29/2015 Novy Family Wines and Siduri Wines, LLC - Jackson Family Wines, Inc. - - - - N.A.

1/26/2015 Muscle Maker Franchising, LLC - American Restaurant Holdings Inc. - - - - N.A.

1/25/2015 MOM Brands Company - Post Holdings, Inc. (NYSE:POST) $1,151.5 1.5x 6.8x - N.A.

1/23/2015 Ocean Gold Seafoods, Inc. - Pacific Sea Food Company, Inc. - - - - N.A.

1/20/2015 Salix LLC - United Pet Group, Inc. - - - - N.A.

1/20/2015 Road Runner Food Delivery - Delivered Dish - - - - N.A.

1/20/2015 Van Law Food Products, Inc. - Encore Consumer Capital - - - - P N.A.

1/20/2015 Landshire, Inc., Wholesale and Manufact. Landshire, Inc. AdvancePierre Foods, Inc. - - - - N.A.

1/19/2015 Manna Pro Products, LLC Advantage Capital Partners Broad Sky Partners - - - - N.A.

1/19/2015 Creative Occasions, Inc. - Maplehurst Bakeries, LLC. - - - - N.A.

1/16/2015 Schratter Foods, Inc. Bongrain SA (ENXTPA:BH) ECB-USA; Voss Enterprises, Inc. - - - - N.A.

1/14/2015 XS Energy LLC - Amway Corporation - - - - N.A.

1/13/2015 Mauna Loa Macadamia Nut Corporation The Hershey Company (NYSE:HSY) Hawaiin Host, Inc. - - - - N.A.

1/12/2015 Clover Mountain Foods, LLC Behrhorst & Crawford, Ltd. Lipari Foods, LLC $16.0 - - - N.A.

1/12/2015 J.L. Freeman S.E.C., Cheese Business J.L. Freeman S.E.C. Emmi International AG - - - - Cross Border

1/12/2015 Del Monte Capitol Meat Co. Inc. - The Chefs' Warehouse, Inc. $191.2 - - - N.A.

1/12/2015 B. Roberts Foods, LLC SCP Management, LLC Bakkavör Group Ltd - - - - P Cross Border

1/8/2015 Halpern’s Steak & Seafood Company - Gordon Food Service - - - - N.A.

1/7/2015 Saratoga Sweets, Ltd. - The Candy Co. of Saratoga Springs - - - - N.A.

1/5/2015 Sun Orchard, Inc. - Centre Partners Management LLC - - - - P N.A.

1/5/2015 Lucini Italia Company LLC Molinos USA, Corp. California Olive Ranch Inc - - - - N.A.

10.0x

11.0x

12.0x

13.0x

14.0x

15.0x

16.0x

Ja

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4

Fe

b-1

4

Ma

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Ap

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4

Ma

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Me

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Food Products, Processing, and Ingredients Retail and Restaurants

25

36

22

34 36

46 47

2533

49

3442

53 5248

3933

46 4752

70

89

58 57

27

5

2

3

47

57

136

7

7

5

4 79

610

13 87

10

6

105

8

0

10

20

30

40

50

60

70

80

90

100

Q10

9

Q20

9

Q30

9

Q40

9

Q11

0

Q21

0

Q31

0

Q41

0

Q11

1

Q21

1

Q31

1

Q41

1

Q11

2

Q21

2

Q31

2

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2

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3

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4

Q21

4

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Strategic Acquirer Private Equity Acquirer

RECENT FOOD AND BEVERAGE M&A ACTIVITY CONT.

FOOD AND BEVERAGE


QUARTERLY M&A ACTIVITY

Median LTM Trading Multiples & Quarterly Food & Beverage M&A5

Recent Food and Beverage M&A5

MEDIAN LTM TRADING MULTIPLES

14

PAGE |

Enterprise Enterprise Value Private Equity European

Announced Target Seller Buyer

Value

($mm) Sales EBITDA EBIT Involvement Transaction

1/5/2015 Daystar Desserts LLC - Dianne's Fine Desserts Inc. - - - - P N.A.

1/5/2015 Sauce Pizza & Wine Fox Restaurant Concepts LLC PNC Mezzanine Capital - - - - P N.A.

1/5/2015 KB Wines, LLC Vincraft Group J.W. Childs Associates, L.P. - - - - P N.A.

12/26/2014 Roy's Restaurants Bloomin' Brands, Inc. United Ohana, LLC $20.0 - 4.0x - N.A.

12/25/2014 Distant Lands Trading Co. Centre Partners Management LLC ITO EN (North America) Inc. $83.2 0.1x - 15.0x P N.A.

12/24/2014 Country Pure Foods, Inc. Mistral Equity Partners Silver Springs Citrus Inc. $100.0 0.6x - - P N.A.

12/24/2014 Maxfield Candy Company - Mrs. Fields Confections - - - - N.A.

1/23/2014 Dori Foods - Good Source Solut ions - - - - P N.A.

12/22/2014 Blue Buddha Beverages LLC - Wholesome Tea Company, LLC - - - - N.A.

12/19/2014 Bumble Bee Seafoods - Thai Union Frozen Products PCL $1,510.0 1.5x 8.6x - Cross Border

12/18/2014 The Pantry, Inc. (NasdaqGS:PTRY) - Alimentation Couche-Tard (TSX:ATD.B) $1,744.1 0.2x 7.9x 15.8x N.A.

12/18/2014 Saputo Bakery Group, Inc. Saputo Inc. (TSX:SAP) Grupo Bimbo SAB de CV $103.4 0.8x 8.4x - N.A.

12/17/2014 Freedom Seed and Feed, LLC - IMD Companies, Inc. (OTCPK:ICBU) $1.9 - - - N.A.

12/17/2014 Matt ingly Foods of Louisville, LLC Matt ingly Foods, Inc. Creation Gardens, Inc. - - - - N.A.

12/15/2014 ADM's Global Cocoa Business Archer-Daniels-Midland (NYSE:ADM) Olam International Limited (SGX:O32) $1,300.0 - 7.6x - Cross Border

12/14/2014 PetSmart, Inc. (NasdaqGS:PETM) - BC Partners, Apollo Global Mgmt. $8,706.5 1.2x 9.1x - P N.A.

12/4/2014 Laughing Man Coffee and Tea Brand Laughing Man Worldwide, LLC Keurig Green Mountain, Inc. - - - - N.A.

12/4/2014 Bread & Company - First Watch Restaurants, Inc. - - - - N.A.

12/3/2014 Varied Industries Corporation - Church & Dwight Co. Inc. (NYSE:CHD) - - - - N.A.

12/2/2014 734 Citrus Holdings, LLC 734 Agriculture, LLC Alico Inc. (NasdaqGS:ALCO) $72.0 - - - N.A.

12/2/2014 Talent i Gelato e Sorbetto - Unilever plc (LSE:ULVR) - - - - Cross Border

12/2/2014 Limestone Branch Dist illery, Inc. - Luxco, Inc. - - - - N.A.

12/2/2014 Legend Distribut ing, LLC - Lipman Produce, Inc. - - - - N.A.

12/1/2014 Orange-Co LP., Certain Assets and Liabilit ies Orange-Co, LP Alico Inc. (NasdaqGS:ALCO) $274.0 - - - N.A.

11/24/2014 Mult ibar, Inc. Bank of Montreal; Novacap Nellson Nutraceutical, LLC - - - - P N.A.

11/21/2014 Noosa Yoghurt, LLC - Advent International Corporation - - - - P N.A.

11/20/2014 Primo Smallgoods Group Affinity Equity Partners JBS S.A. $1,250.0 0.9x 8.1x - P Cross Border

11/19/2014 Chief Super Market, Inc. - Fresh Encounter, Inc. - - - - N.A.

11/17/2014 Pro View Foods, LLC - John Soules Foods, Inc. - - - - N.A.

11/16/2014 Mitchell's Restaurants Ruth's Hospitality Group Landry's, Inc. $10.0 - - - N.A.

11/14/2014 Garden Protein International, Inc. TSG Consumer Partners Pinnacle Foods Inc. $154.8 - - - P N.A.

11/12/2014 Poppy's Teas LLC - Lexaria Corp. $0.1 - - - N.A.

11/12/2014 Puget Technologies,Inc Allanwater Enterprises Corp. Qest Acquisit ion Corporation - - - - N.A.

11/10/2014 De Sousa Wine Cellars Corporation Diamond Estates Wines & Spirits Inc. Oakwest Corporation Limited $1.6 - - - N.A.

11/10/2014 Dahl's Foods Inc. - Associated Wholesale Grocers, Inc. - - - - N.A.

11/10/2014 The Alpine Beer Company - Green Flash Brewing Co. - - - - N.A.

11/7/2014 Nature's Pantry, Inc. - Natural Grocers by Vitamin Cottage - - - - N.A.

11/7/2014 Van Houtte Café Franchise Network Keurig Canada Inc. MTY Food Group Inc. - - - - N.A.

11/7/2014 Henry's Foods, Inc. - Crosby's Markets, Inc. - - - - N.A.

11/6/2014 DSS Group, Inc. Crestview Partners, L.P. Cott Corporation $1,246.5 - - - P N.A.

11/6/2014 McAlister's Deli of Georgetown - The Saxton Group, Inc. - - - - N.A.

11/5/2014 10 Barrel Brewing Company - Anheuser-Busch Companies, LLC - - - - N.A.

11/3/2014 Best Maid Cookie Co., Inc. - Arbor Private Investment Company - - - - P N.A.

11/3/2014 Howard and Associates, Inc. - Acosta, Inc. - - - - N.A.

10/31/2014 McArthur's Bakery & Cafe - Live to Venture Holdings, LLC $3.5 - - - N.A.

10/31/2014 Harrell Nut Company - Golden Peanut and Tree Nuts - - - - N.A.

10/31/2014 Maui Beverages, Inc. Thirsty Ventures, Inc. Lyons-Magnus, Inc. - - - - N.A.

10/28/2014 Teasdale Foods Inc. Palladium Equity Partners Snow Phipps Group, LLC - - - - P N.A.

10/28/2014 Crunchies Food Company, LLC - Chaucer Foods, Ltd. - - - - N.A.

10/26/2014 High Country Shrimp Company - Alkame Holdings, Inc. $0.0 - - - N.A.

10/24/2014 Gloria Jean's Gourmet Coffees Corp. - Retail Food Group Limited $158.4 - - - Cross Border

10/23/2014 Café de Coral Holdings Limited, North America Café de Coral Holdings Limited MTY Food Group Inc. $7.0 - - - N.A.

10/21/2014 The Filling Stat ion - Messenger Coffee Co. - - - - N.A.

10/16/2014 Peter Piper, Inc. Acon Investments, L.L.C. CEC Entertainment Inc. - - - - P N.A.

10/15/2014 Hewitt 's Dairy Limited - Gay Lea Foods Co-operative Ltd. - - - - N.A.

10/14/2014 Penford Corporation Equity Group Investments Ingredion Incorporated $339.1 0.8x 16.2x 42.1x P N.A.

10/14/2014 Masada Bakery, Inc. - Nashville Bun Company, LLC - - - - N.A.

10/14/2014 Savor Coffee Inc. - American Diversified Holdings Corp. - - - - N.A.

10/13/2014 The Chocolate Gecko - Uncle Sam's All American Chocolate - - - - N.A.

10/10/2014 Crunchies Food Company, LLC - Chaucer Foods, Ltd. $3.8 - - - Cross Border

10/8/2014 The Toffee Box, LLC - BBX Sweet Holdings - - - - N.A.

10/8/2014 Heinold Feed Company and Farmers Pellet Mill - Belstra Milling Co., Inc. - - - - N.A.

10/3/2014 Merisant Company, Inc. MSD Capital, L.P. Flavors Holdings Inc. - - - - P N.A.

10/2/2014 Anastasia Confections, Inc. - BBX Sweet Holdings - - - - N.A.

10/1/2014 SALOV S.p.A. - ShangHai YiMin NO.1 Foods Co.,Ltd. - - - - Cross Border

RECENT FOOD AND BEVERAGE M&A ACTIVITY CONT.

15

FOOD AND BEVERAGE


Recent Food and Beverage M&A5 cont.

PAGE |

Effective Date Borrower Name Description Tranche Amount Type Rating Spread

02/09/15 Post Holdings Cereal breakfast foods USD 700,000,000 Term Loan N/A / B2 N/A

02/06/15 Nellson Nutraceutical Candy & other products USD 240,000,000 Term Loan N/A / B2 450

02/06/15 Nellson Nutraceutical Candy & other products USD 65,000,000 Revolver/Line >= 1 Yr. N/A / B2 N/A

02/06/15 PT Royal Industries Indonesia Edible fats and oils USD 215,000,000 Term Loan N/A / NR N/A



01/26/15 Hokkaido Sugar Co Ltd Beet sugar JPY 2,000,000,000 Term Loan N/A / NR N/A

01/21/15 Lucas Bols BV Distilled and blended liquors USD 56,000,000 Revolver/Line >= 1 Yr. N/A / NR 260

01/21/15 Lucas Bols BV Distilled and blended liquors USD 24,000,000 Term Loan N/A / NR 260

01/21/15 US Sugar Corp Raw cane sugar USD 100,000,000 Term Loan A N/A / NR 125

01/21/15 US Sugar Corp Raw cane sugar USD 175,000,000 Revolver/Line >= 1 Yr. N/A / NR 125

12/26/14 Imuraya Group Co Ltd Candy & other confectionery JPY 3,000,000,000 Revolver/Line >= 1 Yr. N/A / NR N/A

12/22/14 Ito Ham Foods Inc Sausages and other prepared meats JPY 5,000,000,000 Term Loan N/A / NR N/A

12/23/14 Quality Sausage Co Sausages and other prepared meats USD 60,000,000 Revolver/Line >= 1 Yr. N/A / NR 200

12/23/14 Rosendo Mila SL Bread, cake, and related products EUR 2,000,000 Term Loan N/A / NR N/A

L + 0

L + 200

L + 400

L + 600

L + 800

L + 1000

Av

era

ge

Sp

rea

d O

ve

r LI

BO

R

AVERAGE SPREAD ON FOOD & BEVERAGE LOANS

DEBT MARKET OVERVIEW

16

FOOD AND BEVERAGE


Food and Beverage Loan Activity7

AVERAGE SECONDARY SPREADS

Recent Debt Offerings8

CREDIT STATISTICS

QUARTERLY LOAN VOLUME

$0

$2

$4

$6

$8

$10

$12

$14

$16

4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14

Loa

n V

olu

me

by

Qu

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($ in

bill

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Institutional Pro Rata

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

2008 2009 2010 2011 2012 2013 2014

Av

era

ge

Sp

rea

d O

ve

r LI

BO

R

Revolving Credit / Term Loan A Weighted-Average Institutional

0.0x

2.0x

4.0x

6.0x

Debt/

EBITDA

Senior Debt/

EBITDA

EBITDA/

Cash Interest

EBITDA - Capex/

Cash Interest

EB

ITD

A M

ult

iple

2010 2011 2012 2013 2014

Energy & Power

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501Fax: +1 (617) 482-7503

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400Fax: +1 (216) 689-2401

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700Fax: +1 (612) 359-2701

Philadelphia1600 Market Street21st FloorPhiladelphia, Pennsylvania 19103Phone: +1 (267) 675-5900Fax: +1 (267) 675-5901

Richmond (U.S. Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072Fax: +1 (804) 648-0073

San Francisco575 Market Street31st FloorSan Francisco, California 94105, USAPhone: +1 (415) 288-4260Fax: +1 (415) 288-4269

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00Fax: +49 069 3650638 01

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900Fax: +44 (0) 20 7526 2187

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Consumer

Harris Williams & Co. has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.

OUR FIRM

FOOD AND BEVERAGE


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HARRIS WILLIAMS & CO.

1. IMF

2. U.S. Bureau of Labor Statistics

3. Unweighted Average

4. U.S. Census Bureau

5. Capital IQ

6. Thomson Financial

7. S&P

8. Reuters

SOURCES

FOOD AND BEVERAGEINDUSTRY UPDATE │ FEBRUARY 2015

Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2015 Harris Williams & Co., all rights reserved.

DISCLOSURES

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