GREAT LAKES Region

Regional Composite

REGIONALDATA REPORT

JAN – JUN2015 vs. 2014

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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

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Great Lakes Region: Highlights - YTD Q2

• Overview based on the following geography:– The Great Lakes Region captures the Markets of Chicago, Cincinnati, Columbus,

Detroit, Grand Rapids and Indianapolis, plus additional cities not included in Markets

• 2015 vs. 2014, avocado dollars in Great Lakes grew +16% and outpaced Total U.S. (+13%) by +3 points– Avocado dollars outpaced total produce (+3%) by +13 points– During the same time, category volume grew +28%– Category average selling price (ASP) decreased -9% to $1.10/unit– Great Lakes Large Hass avocados (4225) drove category dollar growth, adding nearly

+$8MM– Great Lakes Large Hass avocado (4225) volume gain of +28% was +30 points ahead

of the national average

• Great Lakes posted the second lowest dollar and third lowest volume velocity– Great Lakes averaged $276 and 252 units per store per week through Q2 2015

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Great Lakes: YTD Q2 - Avocados vs. Total Produce

• 2015 vs. 2014, avocado dollars grew +16%, outpacing total produce (+3%) by +13 points

• Great Lakes held a 13% share of total produce dollars and a 10% share of avocado dollars

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

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Great Lakes: YTD Q2 Avocado Retail Overview

• 2015 vs. 2014, Category dollars grew +16%– Units grew +28%

• 2015 vs. 2014, Category average selling price (ASP) decreased -9% to $1.10/unit

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

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RETAIL DOLLARS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 13,081,319$ 13,851,508$ +5.9% 253,434,027$ 285,990,209$ +12.8%

4225 Large Hass #40 & #48 sizes 48,527,072$ 56,015,926$ +15.4% 389,686,532$ 413,086,630$ +6.0%

4770 X-Large Hass #36 sizes & larger 9,631,513$ 11,514,831$ +19.6% 31,826,619$ 44,757,598$ +40.6%

Other Greenskins, Pinkertons, non-Hass PLUs 1,088,699$ 902,203$ -17.1% 21,396,246$ 21,987,911$ +2.8%

Organic All Organic PLUs 2,026,050$ 2,680,164$ +32.3% 19,462,786$ 22,988,428$ +18.1%

Bags All bagged PLUs 11,963,752$ 15,121,251$ +26.4% 113,017,948$ 143,651,329$ +27.1%

86,318,406$ 100,085,884$ +15.9% 828,824,158$ 932,462,106$ +12.5%

RETAIL UNITS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 12,243,850 14,188,205 +15.9% 297,106,683 368,944,679 +24.2%

4225 Large Hass #40 & #48 sizes 36,405,226 46,422,087 +27.5% 289,296,532 322,478,032 +11.5%

4770 X-Large Hass #36 sizes & larger 5,983,272 8,191,716 +36.9% 16,754,415 24,798,131 +48.0%

Other Greenskins, Pinkertons, non-Hass PLUs 577,378 530,186 -8.2% 11,776,080 14,847,801 +26.1%

Organic All Organic PLUs 1,141,002 1,631,200 +43.0% 11,568,789 14,659,214 +26.7%

Bags All bagged PLUs 15,141,813 20,200,005 +33.4% 121,245,656 157,177,068 +29.6%

71,492,541 91,163,398 +27.5% 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 $1.07 $0.98 -8.6% $0.85 $0.78 -9.1%

4225 Large Hass #40 & #48 sizes $1.33 $1.21 -9.5% $1.35 $1.28 -4.9%

4770 X-Large Hass #36 sizes & larger $1.61 $1.41 -12.7% $1.90 $1.80 -5.0%

Other Greenskins, Pinkertons, non-Hass PLUs $1.89 $1.70 -9.8% $1.82 $1.48 -18.5%

Organic All Organic PLUs $1.78 $1.64 -7.5% $1.68 $1.57 -6.8%

Bags All bagged PLUs $0.79 $0.75 -5.3% $0.93 $0.91 -2.0%

$1.21 $1.10 -9.1% $1.11 $1.03 -6.8%

TOTAL CATEGORY UNITS

Total U.S.Great Lakes

JAN

UA

RY -

JUN

E: 2

014

vs 2

015

CATEGORY ASP ($/Unit)

Total U.S.Great Lakes

TOTAL CATEGORY DOLLARS

Total U.S.Great Lakes

Great Lakes vs. Total U.S. - YTD Q2 PLU Comparisons

• Avocado dollar sales in GL increased +16%, trending +3 points ahead of Total U.S.

– Volume increased +28%, +7 points ahead of Total U.S.

• Large Hass avocados (PLU 4225) drove dollar growth in GL, adding nearly +$8MM to the category

– Large Hass avocados also drove category units adding over +10MM units

– Large Hass avocado ASP decreased -10% to $1.21/unit

Great Lakes Outpaced Total U.S. in Dollars and Volume Growth Rates

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Great Lakes: YTD Q2 Category Per Store Per Week Averages

• Great Lakes had the second slowest dollar velocity– Great Lakes

averaged $276 per store per week through Q2 2015

• Great Lakes had the third slowest unit velocity– Great Lakes

averaged 252 units per store per week through Q2 2015

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

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Great Lakes: 2013-Q1 through 2015-Q2Units vs. ASP

• Retail Units– The peak quarter was 2015-Q2 at 47MM units when ASP was $1.12/unit– The lowest quarter was 2013-Q4 at 24MM units when ASP was at $1.28/unit

• ASP– Lowest ASP to date occurred during 2013-Q1, $1.02/unit– Highest ASP to date occurred during 2013-Q4 and 2014-Q2 at $1.28/unit