SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 1

2 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

IS A BRAND STRATEGY,

INNOVATION, AND

CREATIVITY FIRM

SRG

+ Boulder-based, 130 people

+ Global capabilities

+ 28 years and going strong

newhope360.com/ newhope360.com/

Nutrition Business Journal: The leading business intelligence resource

for the global nutrition industry since 1996.

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 4

5 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

+ The Century at a Glance

+ Ancient Wisdom

+ Transcendent Transparency

+ Deconstruction

AGENDA & PARTICIPANTS

+ John Grubb, Managing Partner,

SRG

+ Carlotta Mast, Senior Director of

Content and Insights at New

Hope Natural Media

+ Kevin Whitcher, Director of

Strategy, SRG

6 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 7

8 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 9

THE NATURAL

PRODUCTS

MARKETPLACE

We think of this world in three pieces—though the recession

slowed growth, the market is back to outpacing

conventional and is beginning to reach real scale.

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 10

PRODUCT SEGMENTS

Minerals

Meal

replacements

Specialty/

other

Vitamins

Herbs/

botanicals

Sports

nutrition

Beverages

Snack foods

Packaged/prepared

foods

Condiments

Dairy

Fruits and

vegetables

Breads

and grains

Meat, fish and

poultry

Skincare

Hair

products

Bath/

toilet soap

Natural/organic

household cleaners

Natural/organic

pet food

Organic flowers

Total organic

fiber (lines

and clothing)

Pet

supplements

Herbs/botanicals

$30.6B SUPPLEMENTS

MARKET, 2011

$14.7B NATURAL LIVING

MARKET, 2011

$87.8B NATURAL, ORGANIC

AND FUNCTIONAL FOOD

AND BEV MARKET, 2011

11 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

12 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

NEXT INTRODUCTION

| VIDEO |

13 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

14 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

From forbidden fruit to super fruit. ANCIENT WISDOM

15 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

This is not what we mean by ancient wisdom… ANCIENT WISDOM

16 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

ANCIENT WISDOM

But chia is emerging as another new, novel ingredient—in time

for its fifth millennium of cultivation.

17 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

ANCIENT WISDOM

But chia is emerging as another new, novel ingredient—in time

for its fifth millennium of cultivation.

18 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

ANCIENT WISDOM

BRAD’S RAW FOODS

BRADSRAWCHIPS.COM

NATURAL VITALITY VITALITY B

COMPLEX

NATURALVITALITY.COM

WAY BETTER SNACKS

GOWAYBETTER.COM

19 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

ANCIENT WISDOM

DAHLICIOUS LASSI

DAHLICIOUS.COM

VERIA ID INNERDOSHA AND

SO SELF OPTIMIZE

VERIA.COM

(FARMHOUSECULTURE.COM)

20 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

21 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

TRANSPARENCY TRANSCENDED

Political Implications: Stuxnet virus. Effective but

now public—accidental leak or strategic boast.

22 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

TRANSPARENCY TRANSCENDED

GOOD AND BAD: Kashi vs. Honest Tea

23 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

TRANSPARENCY TRANSCENDED

GOOD AND BAD: Kashi vs. Honest Tea

24 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

ONE DEGREE

| VIDEO |

25 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

TRANSPARENCY TRANSCENDED

ONE DEGREE ORGANIC FOOD

(ONEDEGREEORGANICS.COM)

BROOKLYN SALSA COMPANY

(BKSALSA.COM)

SPROUT SKINCARE

(SPROUTSKINCARE.COM)

26 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

TRANSPARENCY TRANSCENDED

FOODUCATE

(FOODUCATE.COM)

GAIA HERBS

(GIAHERBS.COM) HERBALIFE

(HERBALIFE.COM)

27 SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012

We have entered an age of profound deconstruction that is

evident in product, process, design and messaging.

DECONSTRUCTION

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 28

FUTURES2020: ELEGANT REDUCTION

Elegant Reduction sees the opportunity in right-sizing your solution—delivering less overall, but more of

what your consumer wants. Pretty good is often good enough.

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 29

REVELRY BRANDS,

BRENDAN SYNNOTT

| VIDEO |

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 30

INNOVATION

BACK TO THE ROOTS

BTTRVENTURES.COM

JONES SODA

JONESSODA.COM

MEGA FOOD

MEGAFOOD.COM

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 31

RAW MESSAGING

BLUEPRINTJUICE

BLUEPRINTJUICE.COM

THREE TWINS ICE CREAM

THREETWINSICECREAM.COM

SIR RICHARD’S CONDOM CO.

SIRRICHARDS.COM

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 32

MACRO FORCES

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 33

MACRO FORCES

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 34

MACRO FORCES

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 35

CONCLUSION

This is not about specific

products and brands but rather

the trajectory and change that

these macro forces imply—both

for the natural products industry

and consumer packaged goods

broadly.

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 36

THE NATURAL PRODUCTS

INDUSTRY FORECAST 2013

This is the premier insider’s guide to

where the natural products market is

now—and where it is headed.

Born from the partnership of New Hope Natural Media’s

Nutrition Business Journal and SRG, this comprehensive

report provides a deep dive into the trends and market

forces affecting the natural products industry.

NEXT also identifies the products, people, and macro

forces that will shape and provide the greatest

opportunities for tomorrow’s natural products landscape.

Also available in category specific chapters.

Buy one now at www.nextforecast.com

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 37

Sterling-Rice Group

1801 13th Street, Suite 400

Boulder, Colorado 80302

John Grubb, Managing Partner

303-381-6479

jgrubb@srg.com

Kevin Whitcher, Director of Strategy

303-381-6415

kwhitcher@srg.com

Carlotta Mast, Senior Director of Content and Insights

303-998-9119

carlotta.mast@penton.com

Thanks!

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 38