MANGO PERFORMANCE BENCHMARK REPORT 2015-2016
TABLE OF CONTENTS Page 3 Page 5 Page 12 Page 15 Page 27 Page 36 Page 46 Approach and Data Set Parameters Overview and Mango Trend-Spotting Fruit and Tropical Fruit Trends Whole Mango Trends Total U.S. Whole Mango Trends Nine Sub-Regions Organic Mango Trends Fresh-Cut Mango Trends 2
APPROACH In order to conduct the following category review, Nielsen Perishables Group analyzed mango sub-category sales trends to create a historical reference for performance benchmarks Areas of focus include: Overall category trends (including contribution to department, dollar sales, volume and pricing) Category contribution and trends by segment Seasonality Sales performance by geographic sub-region Organic mango sales trends Fresh-cut mango only organic mango only and mix sales trends 3
APPROACH National Mango Board Custom Hierarchy The analysis primarily examines whole mango in Total US market for the 2016 and 2015 calendar years, unless otherwise noted Fresh-cut mango only is separated from whole mango results Whole mango volume is measured in units; for those retailers who sell mangos by the pound, a conversion rate is used About the Nielsen Perishables Group Data Set The data represents retail census sales data of total U.S. grocery store chains with more than $2 million sales annually Data is captured in a universe called the Fresh Coverage Area (FCA) and includes ~18,000 stores nationwide Not included in the data set are small independent chains and alternative format retailers such as Whole Foods Market and Trader Joe s The data represents fruit items sold in the produce department including UPC, PLU and system-2 coded items 4
OVERVIEW AND MANGO TREND-SPOTTING 2015-2016
TREND-SPOTTING: FRUIT AND TROPICAL FRUIT All fruit and mangos grew at a similar pace Fruit dollars per store per week grew 4% in 2016 to $24,416 Mangos grew at the same 4% pace to $217 per store per week in 2016 Mangos maintained the #20 position, consistent with 2015, 2014 and 2013 Declining categories include grapes, bananas, oranges, pears, cantaloupe, nectarines, plums, grapefruit and honeydew Biggest increases were in blackberries at 15% growth, limes at 14% growth and mandarins at 11% growth Tropical fruit category on track in 2016 Tropical fruit dollars per store per week grew 5% in 2016 Mangos are the category captain of tropical fruit with 37% of category dollars For most retailers, success in tropical fruit will depend upon success in mangos Source: Nielsen Perishables Group FreshFacts 6
TREND-SPOTTING: WHOLE MANGOS Mango growth continued into 2016, but slowed Mango dollars per store per week increased 4% in 2016, while it increased 6% in 2015 Mango volume per store per week increased 7% in 2016, while it increased 16% in 2015 Mango dollars and volume increased in every quarter except Q2 2016 (dollars and volume declined by 13% and 18% respectively in Q2 2016) due to a delayed crop which caused a supply gap Despite the Q2 supply gap, mango dollars and volume Q2 were still higher than the other quarters, leading to a more gentle curve, with volume and dollars spread out more into the late summer, fall and winter seasons Average retail price per mango decreased in 2016, down 2% to $.96 each In most sub-regions, mango sales increased in dollars and volume The New England sub-region had both the highest dollars per store per week average and the largest dollar increase, up 14% to $312 mango dollars per store per week Only the Mountain sub-region experienced a decline in dollars compared to 2015, while the Pacific and South Atlantic sub-region sales were flat Source: Nielsen Perishables Group FreshFacts 7
TREND-SPOTTING: PROMOTION AND PRICING Less mango volume was sold on promotion in 2016 32% of mango volume was sold on promotion in 2016, down from 35% in 2015 The New England sub-region percent sold on promotion decreased the most, down 10.6 pts Lower non-promoted price drove an overall decline in average retail price Average retail price dropped 2% to $.96 each in 2016 Promoted average retail price increased 5% to $.81 Non-promoted average retail price dropped 6% to $1.03 Most sub-regions saw a decline in average retail price West South Central sub-region had the lowest average retail price at $.72 each, while Mid Atlantic sub-region had the highest average retail price at $1.17 per mango Only the East North and New England sub-regions increased average retail price, while Pacific and West North sub-regions remained stable compared to the prior year East South Central and Mountain sub-regions saw a 7% decline in average retail price to $1.06 and $.75 each, respectively 8 Source: Nielsen Perishables Group FreshFacts
TREND-SPOTTING: ORGANIC MANGOS Organic mango share held steady even with price increase Organic mangos account for 3% of total whole mango dollars, same as 2015 Despite a 30% decrease in organic mango dollar sales in Q2 2016, organic mango sales were up 3% in 2016 versus prior year Q2 and Q3 had the strongest organic mango sales in 2016 accounting for $1.7 million in sales each quarter The Pacific sub-region had strongest organic mango sales with 7% share of dollars for 2016 Average retail price for organic mangos increased 2% to $2.10 each, compared to a 2% decrease for total whole mangos to $0.96 each Organic mango pricing was highest in the West South Central sub-region at $3.57 each and lowest in the Mountain sub-region at $1.66 Source: Nielsen Perishables Group FreshFacts 9
TREND-SPOTTING: FRESH-CUT MANGOS ONLY Fresh-cut mango results mixed compared to 2015 Mango only fresh-cut ranked #6 in fresh-cut fruit sales, behind mixed fruit, pineapple, watermelon, apples and cantaloupe Mango mix fresh-cut ranked #12 in fresh-cut fruit sales Mango only fresh-cut mango dollar sales slightly decreased in 2016, down 1% to $59.1 million Q1 2016 had the strongest mango only fresh-cut sales at $16.3 million, up 38% from Q1 2015 Mango only fresh-cut sales declined across all sub-regions, except Mountain and New England sub-region The highest dollar sales were in the South Atlantic sub-region at $15.9 million in 2016 Organic mango only fresh-cut dollar sales increased by a factor of 90, from $4000 in 2015 to $361,000 in 2016 Mango mixed fresh-cut dollar sales increased by 32%, with the largest increase of 50% in Q1 Source: Nielsen Perishables Group FreshFacts 10
TREND-SPOTTING: MANGOS GOING MAINSTREAM Recent growth and future potential make mangos a focus item for retailers CPG manufacturers continue launch mango flavored items such as baby food, yogurt, snacks and beverages introducing mango flavored foods to a broader set of consumers In June 2016, Trader Joe s named mango the official flavor of summer with promotions that featured different varieties of fresh mangos and introduced 15 limited time mango flavored offerings, like cookies, crackers, candy and even pizza The biggest obstacle consumers face when consuming fresh mangos is preparing the fruit. A quick google search will populate hundreds of hacks and videos from knife tricks and kitchen tools to using the rim of a glass as a peeler In 2016, Google search identified How to cut a mango as the #1 how to search for food Source: Nielsen Perishables Group FreshFacts 11
FRUIT AND SPECIALTY FRUIT TRENDS FOR TOTAL U.S. 2015-2016
TOP 25 FRUIT DOLLARS & CONTRIBUTION TO PRODUCE Overall, dollars per store/week for fruits increased and contribution to the department increased very slightly Apples had the largest contribution to the department Mangos increased in dollars per store/week, and maintained position #20 in the fruit ranking, the same position was held by mangos in 2015, 2014 and 2013 Product Source: Nielsen Perishables Group FreshFacts, All Stores, 2016 vs. YAGO Rank Fruit Sales and Contribution Trends Dollars per Store/Week % Change vs YAGO % Dollar Contribution to Department %Change vs. YAGO Fruits $24,416 3.8% 46.9% 0.1% Apples 1 $3,195 7.8% 6.1% 0.2% Grapes 2 $2,753-4.4% 5.3% -0.4% Bananas 3 $2,602-3.2% 5.0% -0.4% Strawberries 4 $2,210 5.4% 4.2% 0.1% Avocados 5 $1,464 8.6% 2.8% 0.1% Mandarins 6 $1,279 11.1% 2.5% 0.2% Blueberries 7 $1,210 8.8% 2.3% 0.1% Oranges 8 $846-0.7% 1.6% -0.1% Watermelon 9 $794 2.0% 1.5% -0.0% Cherries 10 $702 10.4% 1.3% 0.1% Raspberries 11 $692 6.9% 1.3% 0.0% Lemons 12 $541 8.2% 1.0% 0.0% Peaches 13 $452 1.4% 0.9% -0.0% Blackberries 14 $407 15.4% 0.8% 0.1% Pears 15 $379-3.7% 0.7% -0.1% Cantaloupe 16 $346-3.1% 0.7% -0.0% Limes 17 $327 14.4% 0.6% 0.1% Pineapples 18 $287 2.9% 0.6% -0.0% Nectarines 19 $265-2.1% 0.5% -0.0% Mango 20 $217 3.8% 0.4% 0.0% Plums 21 $185-5.3% 0.4% -0.0% Grapefruit 22 $161-6.5% 0.3% -0.0% Kiwi 23 $125 6.2% 0.2% 0.0% Honeydew 24 $77-1.7% 0.1% -0.0% Papaya 25 $70 3.5% 0.1% -0.0%
TROPICAL FRUIT DOLLAR SHARE AND TRENDS Overall, tropical fruits increased in dollars per store/week in 2016, up by 5% from the prior year Mangos had the largest sub-category share at 37% and increased dollars per store/week by 4% versus 2015 Kiwi had the second highest share at 21% and dollars per store/week growth, up 6% Most top tropical fruit sub-categories grew in dollars per store/week from 2015, with the exception of pomegranate Share of Category Dollars per Store/Week Tropical Fruits Total U.S., 2016 Other Specialty Fruit 2% Coconut 2% Tomatillo 5% Dates 7% Pomegranate 8% Papaya 12% Figs 2% Guava 1% All Others 3% Kiwi 21% Mango 37% Source: Nielsen Perishables Group FreshFacts, All Stores, 2016 vs. YAGO Dollars per Store/Week Dollars per Store/Week % Change vs YAGO Total Tropical Fruits $594 5% Mango $217 4% Kiwi $125 6% Papaya $70 4% Pomegranate $47-22% Dates $41 32% Tomatillo $31 1% Coconut $14 3% Other Specialty Fruit $13 102% Figs $9 3% Guava $8 85% 14
WHOLE MANGO TRENDS FOR TOTAL U.S. 2015-2016
MANGO VOLUME PER STORE PER WEEK Volume velocity increased 7% compared to 2015 Volume velocity peaked during Q2 at 354 units per store per week, yet Q2 was the only quarter that had a decline (18%) A decline at the peak with increases in late summer/fall/winter resulted in a smoother curve and an overall increase 500 450 400 350 300 250 200 150 100 50 0 130 151 430 Mango Volume Per Store Per Week Total U.S., Whole 354 203 +17% -18% +41% +30% +7% Q1 Q2 Q3 Q4 2016 285 90 117 213 227 16
87 99 84 71 77 107 144 121 115 121 158 189 152 155 230 213 213 227 310 341 369 379 429 433 424 493 MANGO VOLUME PER STORE PER WEEK Volume per store per week increased in all months except March, April and May Largest increases were observed in September (85%), January (66%) and February (60%) 600 Mango Volume Per Store Per Week Total U.S., Whole 500 400 300 200 100 0 +66% +60% -20% -38% -23% +1% +24% +46% +85% +51% +57% +5% +7% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2016 17
MANGO % OF VOLUME SOLD ON PROMOTION 32% of whole mangos were sold on promotion during 2016, down from 35% of volume sold on promotion in 2015 Q3 had the smallest portion of volume sold on promotion at 30% in 2016 Mango Volume % Sold On Promotion Total U.S., Whole 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 37.6% 35.9% 34.1% 34.7% 32.9% 33.1% 31.8% 32.0% 30.0% 29.8% +3.0 pts -5.8 pts -0.2 pts -1.0 pts -2.7 pts Q1 Q2 Q3 Q4 2016 18
MANGO AVG RETAIL PRICE The average retail price (ARP) for whole mangos slightly decreased from $0.98 to $0.96 in 2016 ARP increased in Q2 compared to the prior year ARP decreased the most during Q3 by 14% to $0.89 per mango and Q4 by 15% to $1.17 per mango Mango Average Retail Price Total U.S., Whole $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.21$1.18 $0.80 $0.85 $1.04 $0.89 $1.37 $1.17 $0.98$0.96-3% +6% -14% -15% -2% Q1 Q2 Q3 Q4 2016 19
$0.87 $0.78 $0.84 $0.78 $0.76 $0.83 $0.73 $0.89 $1.11 $1.05 $1.06 $1.07 $0.98 $0.96 $1.20 $1.23 $1.24 $1.24 $1.16 $1.14 $1.12 $1.37 $1.46 $1.49 $1.67 $1.69 MANGO AVG RETAIL PRICE Average retail prices were higher compared to the previous year from March through May, which was consistent with lower available volume $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Mango Average Retail Price Total U.S., Whole -19% -13% +17% +22% +8% -3% -12% -17% -26% -27% -22% -2% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2016-2% 20
MANGO NON-PROMO/PROMO AVG RETAIL PRICE Non-promo average retail price for mangos decreased by 6% but the promotional average increased by 5% Mango Promo and Non Promo Average Retail Price Total U.S., Whole $1.20 $1.00 $0.80 $1.09 $0.77 $1.03 $0.81 $0.60 $0.40 $0.20 $0.32 difference $0.22 difference -6% +5% $0.00 Non-Promo Average Retail Promotional Average Retail 21
MANGO NON-PROMOTED AVG RETAIL PRICE Non-promoted average retail price increased over prior year in Q2 by just 1% but declined in all other quarters in 2016 Q4 had the largest decline by 18% when compared to prior year $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1.35 $1.27 Mango Non-Promo Average Retail Price Total U.S., Whole $0.90 $0.91 $1.12 $0.96 $1.53 $1.26 $1.09-6% +8% +1% -14% -18% -14% -6% -4% +5% -6% Q1 Q2 Q3 Q4 2016 $1.03 22
MANGO PROMOTED AVG RETAIL PRICE Promotional average retail price increased during Q1 and Q2; overall increase for 2016 was 5% to $0.81 $1.20 $1.00 $0.80 $0.60 $1.02 $0.94 Mango Promo Average Retail Price Total U.S., Whole $0.86 $0.71 $0.73 $0.65 $1.05 $0.99 $0.81 $0.77 $0.40 $0.20 $0.00 +9% +10% -16% -5% +5% Q1 Q2 Q3 Q4 2016 23
MANGO DOLLARS PER STORE PER WEEK Dollars per store per week for 2016 increased 4% compared to 2015 Dollar velocity peaked during Q2 at $300 per store per week Q2 was the only quarter that decreased dollars per store per week from the prior year $400 $350 $300 $250 $200 $150 $100 $50 $0 $179 $158 Mango Dollars Per Store Per Week Total U.S., Whole $345 $300 $211 $254 $136 $123 $209 $217 +14% -13% +20% +11% +4% Q1 Q2 Q3 Q4 2016 Source: Nielsen Perishables Group FreshFacts, All Stores, 2016 vs. YAGO 24
$119 $160 $145 $140 $120 $114 $133 $140 $131 $135 $189 $199 $186 $192 $228 $209 $244 $217 $284 $275 $320 $320 $334 $329 $311 $384 MANGO DOLLARS PER STORE PER WEEK Mango dollars per store per week were lower than the prior year from March through June 2016 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 Mango Dollars Per Store Per Week Total U.S., Whole +35% +31% -13% -24% -17% -1% +10% +21% +37% +11% +23% +3% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2016 +4% 25
MANGO CONTRIBUTION TO DEPARTMENT SALES Overall, mango dollar contribution to the produce department remained stable compared to the prior year The peak mango contribution to the department was during Q2, yet declined from 2015 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Mango Dollar Contribution to Department Total U.S., Whole 0.65% 0.54% 0.48% 0.41% 0.41% 0.41% 0.34% 0.31% 0.28% 0.25% +0.03 pts -0.11 pts +0.07 pts +0.03 pts +0.00 pts Q1 Q2 Q3 Q4 2016 Source: Nielsen Perishables Group FreshFacts, All Stores, 2016 vs. YAGO 26
WHOLE MANGO TRENDS BY SUB- REGION 2015-2016
MANGO PERFORMANCE BY SUB REGION 0.45% $262 282 $0.93 Pacific Mountain 0.38% $197 177 $1.11 West North Central 0.34% $190 188 $1.01 East North Central 0.38% $252 215 $1.17 Mid- Atlantic New England 0.47% $312 293 $1.07 0.37% $200 267 $0.75 Legend Total U.S. Dollar Contribution 0.41% Dollars per Store/Week $217 Volume per Store/Week 227 Average Retail Price $0.96 West South Central 0.56% $261 362 $0.72 East South Central 0.29% $136 128 $1.06 South Atlantic 0.42% $187 177 $1.06 28
117 128 178 190 172 160 188 177 177 213 227 215 260 267 260 293 282 282 318 362 MANGO VOLUME PER STORE PER WEEK BY SUB-REGION Mango volume velocity was up compared to the prior year across all sub-regions, except Pacific The top sub-regions based on volume per store per week in 2016 were West South Central, New England, Pacific and Mountain The sub-region with the highest growth in volume was West South Central, up by 14% Mango Volume Per Store Per Week Total U.S., Sub-Regions, Whole 400 350 300 250 200 150 100 50 0 +6% +6% +10% +13% +2% +12% 0% +3% +10% +14% Total U.S. East North Central East South Mid Atlantic Central Mountain New Pacific Subregion England South Atlantic West North Central West South Central 29
28.1% 27.1% 34.7% 32.0% 32.4% 32.8% 28.7% 24.7% 23.6% 28.7% 26.5% 38.8% 34.9% 35.3% 32.1% 28.6% 40.6% 38.8% 46.6% 42.3% MANGO VOLUME SOLD ON PROMOTION BY SUB-REGION The percent of volume sold on promotion increased for mangos across three of the nine sub-regions The New England sub-region % on promotion decreased the most, down 10.6 pts While the East South Central sub-region increased the most, up 4.3 points compared to the prior year Mango Volume % on Promotion Total U.S., Sub-Regions, Whole 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -2.7 pts Total U.S. +1.9 pts East North Central Subregion +4.3 pts East South Central Subregion -4.1 pts Mid Atlantic +3.9 pts Mountain New England Pacific Subregion South Atlantic West North Central Subregion West South Central Subregion 30-10.6 pts -4.3 pts -3.4 pts -2.3 pts -3.5 pts
$0.81 $0.75 $0.76 $0.72 $0.98 $0.96 $0.97 $1.01 $0.93 $0.93 $1.15 $1.06 $1.06 $1.09 $1.22 $1.17 $1.07 $1.06 $1.11 $1.11 MANGO AVG RETAIL PRICE BY SUB-REGION The West South Central sub-region had the lowest average retail price for whole mangos, down 5% over prior year Only the East North and New England sub-regions increased in average retail price for whole mangos, while Pacific and West North sub-regions remained stable compared to the prior year Mango Average Retail Price Total U.S., Sub-Regions, Whole $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20-2% +4% -7% -4% -7% +1% 0% -3% 0% -5% $0.00 Total U.S. East North East South Mid Atlantic Central Sub-Centraregion Subregion Mountain New England Pacific Subregion South Atlantic West North West South Central Sub-Centraregion Subregion 31
$0.89 $0.84 $0.81 $0.74 $1.09 $1.03 $1.15 $1.13 $1.22 $1.13 $1.15 $1.09 $1.13 $1.05 $1.15 $1.09 $1.32 $1.23 $1.23 $1.20 MANGO NON-PROMO AVG RETAIL PRICE BY SUB-REGION Non-promo average retail price declined across the board in 2016 The West South Central had the lowest non-promoted average retail price at $0.74, down 8% from the prior year Mango Non-Promo Average Retail Price Total U.S., Sub-Regions, Whole $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00-6% -2% -8% -6% -6% -5% -7% -5% -3% -8% Total U.S. East North Central Subregion East South Central Subregion Mid Atlantic Mountain New England Pacific Subregion South Atlantic West North Central Subregion West South Central Subregion 32
$0.77 $0.69 $0.65 $0.61 $0.70 $0.66 $0.81 $0.83 $0.95 $0.92 $0.88 $0.77 $0.67 $0.91 $0.84 $1.02 $1.01 $0.98 $0.95 $0.89 MANGO PROMO AVG RETAIL PRICE BY SUB-REGION Promotional average retail price increased in six of nine sub-regions in 2016 Four of these six sub-regions had an increase in promotional average retail pricing of greater than 5% East North Central sub-region had the largest promotional average retail price growth, up 20% to $0.83 Mango Promo Average Retail Price Total U.S., Sub-Regions, Whole $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 +5% +20% -3% -1% -6% +11% +11% +4% +6% +2% Total U.S. East North Central Subregion East South Central Subregion Mid Atlantic Mountain New England Pacific Subregion South Atlantic West North Central Subregion West South Central Subregion 33
$134 $136 $173 $209 $190 $232 $210 $187 $179 $217 $200 $187 $197 $252 $275 $262 $262 $242 $261 $312 MANGO DOLLARS PER STORE PER WEEK BY SUB-REGION Mango sales per store/week increased by 4% in 2016 The top three sub-regions based on dollars per store per week in 2016 were New England, Pacific and West South Central Mountain was the only sub-regions with mango sales per store per week decline, down 5% $350 $300 $250 $200 $150 $100 $50 $0 Total U.S. East North Central East South Mid Atlantic Central Mango Dollars Per Store Per Week Total U.S., Sub-Regions, Whole +4% +9% +2% +9% -5% +14% 0% 0% +10% +8% Mountain New Pacific Subregion England South Atlantic West North Central West South Central 34
0.32% 0.29% 0.29% 0.34% 0.41% 0.38% 0.36% 0.41% 0.38% 0.41% 0.37% 0.43% 0.47% 0.47% 0.45% 0.43% 0.42% 0.38% 0.52% 0.56% MANGO CONTRIBUTION TO PRODUCE BY SUB-REGION The West South Central had the greatest dollar contribution to the produce department during 2016, contributing 0.56%, up from 0.52% in 2015 Overall, Total U.S remained stable in 2016 when compared to prior year 0.60% Mango Dollar Contribution to Department Total U.S., Sub-Regions, Whole 0.50% 0.40% 0.30% 0.20% 0.10% +0.00 pts +0.02 pts +0.00 pts +0.00 pts -0.04 pts +0.04 pts -0.02 pts -0.01 pts +0.03 pts +0.04 pts 0.00% Total U.S. East North East South Central Sub-Centraregion Subregion Mid Atlantic Mountain New England Pacific Subregion South Atlantic West North West South Central Sub-Centraregion Subregion 35
ORGANIC MANGO TRENDS 2015-2016
ORGANIC MANGO VOLUME Organic mango volume sales were up 1% in 2016 compared to the prior year Volume peaked during Q2 2016, yet only Q2 had a decrease (-33%) in organic mango volume from the prior year 3500 3000 2500 2000 1500 Organic Mango Volume in Thousands Total U.S., Whole 1,407 2,889 2,914 1000 500 0 943 893 776 544 635 443 +17% -33% +15% +172% +1% Q1 Q2 Q3 Q4 2016 163 37
ORGANIC MANGO AVG RETAIL PRICE The average price for organic mangos increased 2% in 2016 In Q1 and Q2, organic mango prices increased 6% and 5%, respectively $3.50 Organic Mango Average Retail Price Total U.S., Whole $3.00 $2.50 $2.00 $2.48 $2.62 $1.76 $1.84 $2.09 $1.94 $2.95 $2.21 $2.05 $2.10 $1.50 $1.00 $0.50 $0.00 +6% +5% -7% -25% + 2% Q1 Q2 Q3 Q4 2016 38
ORGANIC/CONVENTIONAL AVG RETAIL PRICE On average organic mangos were price about $1.16 higher than conventional The largest difference in price happened occurred Q1 with a $1.47 difference between organic and conventional Whole Mango Average Retail Price Total U.S., Organic vs. Conventional $3.00 $2.50 $2.00 $2.62 $1.84 $1.94 $2.21 $2.10 $1.50 $1.00 $1.16 $0.84 $0.88 $1.15 $0.94 $0.50 $0.00 Q1 Q2 Q3 Q4 2016 Conventional Organic 39
ORGANIC MANGO DOLLARS In 2016, organic mango dollar sales were up 3% compared to the prior year Only Q2 had a decrease (-30%) in organic mango dollars from the prior year $7,000 $6,000 $5,000 $4,000 $3,000 $2,472 Organic Mango Dollars in Thousands Total U.S., Whole $6,111 $5,918 $2,000 $1,000 $0 $1,668 $1,732 $1,618 $1,732 $1,348 $979 $480 +24% -30% +7% +104% +3% Q1 Q2 Q3 Q4 2016 40
ORGANIC MANGO VOLUME BY SUB-REGION Organic mango volume sales increased by 1% from 2015 to 2016 The pacific sub-region had the strongest volume sales, but volume decreased by 18% compared to the prior year 3,500 3,000 2,500 2,000 1,500 2,914 2,889 Organic Mango Volume in Thousands Total U.S., Sub-Regions, Whole 1,540 1,267 1,000 500 0 416 262 323 388 254 260 52 87 148 289 136 179 24 35 55 88 +1% +23% +68% +2% +7% +9% -18% +62% +48% +61% Total U.S. East North Central Subregion East South Central Subregion Mid Atlantic Mountain New England Pacific Subregion South Atlantic Subregion West North Central Subregion West South Central Subregion 41
ORGANIC/CONVENTIONAL AVG RETAIL PRICE BY SUB-REGION Five of nine sub-regions drove the national organic mango price increase, up 2% in 2016 Average retail price for conventional mangos decreased by 2% in 2016 Whole Mango Average Retail Price Total U.S., Sub-Regions, Organic vs. Conventional $2.05 $2.10 $0.97 $0.94 Conventional -2% +2% Organic Organic vs. Conventional Mango Average Retail Prices Geography Total U.S. Conventional $0.97 $0.94 Organic $2.05 $2.10 East North Central Conventional $0.96 $0.99 Organic $1.85 $1.87 East South Central Conventional $1.14 $1.05 Organic $2.06 $2.04 Mid Atlantic Conventional $1.19 $1.15 Organic $3.06 $2.98 Mountain Conventional $0.79 $0.73 Organic $1.68 $1.66 New England Conventional $1.04 $1.05 Organic $2.32 $2.77 Pacific Conventional $0.89 $0.90 Organic $1.89 $1.89 South Atlantic Conventional $1.08 $1.05 Organic $2.67 $2.30 West North Central Conventional $1.11 $1.11 Organic $2.14 $2.22 West South Central Conventional $0.76 $0.72 Organic $2.43 $3.57
ORGANIC MANGO DOLLARS BY SUB-REGION Organic mango dollar sales increase by 3% from 2015 to 2016 The pacific sub-region had the strongest sales, but sales decreased by 18% compared to the prior year $7,000 $6,000 $5,000 $4,000 $6,111 $5,918 Organic Mango Dollars in Thousands Total U.S., Sub-Regions, Whole $3,000 $2,000 $2,918 $2,396 $1,000 $0 +3% Total U.S. $606 $688 $778 $485 $177 $776 $654 $665 $410 $78 $316 $107 $315 $476 $51 $134 +25% +66% 0% +5% +30% -18% +40% +54% +136% East North Central Subregion East South Central Subregion Mid Atlantic Mountain New England Pacific Subregion South Atlantic Subregion West North Central Subregion West South Central Subregion 43
ORGANIC/CONVENTIONAL SHARE IN DOLLARS BY SUB-REGION Nationally, organic mango dollars accounted for 3% of total whole mango sales during 2016, same as 2015 Whole Mango Dollar Share Total U.S., Sub-Regions, Organic vs. Conventional 3.0% 3.0% 97.0% 97.0% Conventional Organic Organic vs. Conventional Whole Mango Total Dollar Share Geography Total U.S. Conventional 97.0% 97.0% Organic 3.0% 3.0% East North Central Conventional 97.6% 97.3% Organic 2.4% 2.7% East South Central Conventional 98.4% 97.5% Organic 1.6% 2.5% Mid Atlantic Conventional 96.7% 96.7% Organic 3.3% 3.3% Mountain Conventional 96.1% 95.7% Organic 3.9% 4.3% New England Conventional 97.5% 97.1% Organic 2.5% 2.9% Pacific Conventional 91.8% 93.2% Organic 8.2% 6.8% South Atlantic Conventional 99.0% 98.7% Organic 1.0% 1.3% West North Central Conventional 99.4% 99.1% Organic 0.6% 0.9% West South Central Conventional 99.4% 98.7% Organic 0.6% 1.3% 44
ORGANIC/CONVENTIONAL SHARE IN VOLUME BY SUB-REGION Nationally, organic mango volume accounted for 1.4% of total whole mango volume during 2016, same as 2015 Whole Mango Volume Share Total U.S., Sub-Regions, Organic vs. Conventional 1.4% 1.4% 98.6% 98.6% Conventional Organic Organic vs. Conventional Whole Mango Total Volume Share Geography Total U.S. Conventional 98.6% 98.6% Organic 1.4% 1.4% East North Central Conventional 98.8% 98.6% Organic 1.2% 1.4% East South Central Conventional 99.1% 98.7% Organic 0.9% 1.3% Mid Atlantic Conventional 98.7% 98.7% Organic 1.3% 1.3% Mountain Conventional 98.1% 98.1% Organic 1.9% 1.9% New England Conventional 98.9% 98.9% Organic 1.1% 1.1% Pacific Conventional 96.0% 96.7% Organic 4.0% 3.3% South Atlantic Conventional 99.6% 99.4% Organic 0.4% 0.6% West North Central Conventional 99.7% 99.6% Organic 0.3% 0.4% West South Central Conventional 99.8% 99.7% Organic 0.2% 0.3% 45
FRESH-CUT MANGO PERFORMANCE Total U.S. and Nine Sub-Regions 2015-2016
DATA PARAMETERS Segment details: Mango only fresh-cut includes mango product that is sold in a fresh-cut pack that is only mango, no other items Organic mango only fresh-cut includes only organic mango in a freshcut pack Mango mix fresh-cut includes mixed bowls or trays that include mango along with other items Because of the variation in unit size, this report is focused on dollar sales for fresh-cut mango, rather than volume Distribution: 95.4% of stores in the FCA sold mango only fresh-cut items in 2016 Distribution of mango only fresh-cut has increased 33 percentage points since 2012 39.8% of stores in the FCA sold mango mix fresh-cut items in 2016 47
FRESH CUT FRUIT DOLLARS AND CONTRIBUTION TO PRODUCE Overall, dollars per store/week for fresh cut fruit increased, but contribution to the department increased very slightly Mixed Fruit has highest fresh cut fruit sales at $763 stores/weeks Mango Mix (fresh cut with mango plus other items) increased in dollars per store/week by 32.3% in 2016 Product Fresh Cut Fruit Sales and Contribution Trends Rank Dollars per Store/Week % Change vs YAGO % Dollar Contribution to Department %Change vs. YAGO Fresh Cut Fruit $2,095 7.6% 1.3% 0.2% Mixed Fruit* 1 $763 5.6% 0.3% 0.0% Pineapple 2 $342 11.0% 0.3% 0.0% Watermelon 3 $340 2.2% 0.4% 0.0% Apples 4 $276 13.0% 0.1% 0.0% Cantaloupe 5 $111 8.0% 0.1% 0.0% Mango Only 6 $63-1.1% 0.1% 0.0% Other Melons/Mixed Melons 7 $55 4.2% 0.0% 0.0% Strawberry 8 $45 12.2% 0.0% 0.0% Other Value Added Fruit 9 $34 30.8% 0.0% 0.0% Grapes 10 $26 27.0% 0.0% 0.0% Honeydew 11 $20 28.9% 0.0% 0.0% Mango Mix 12 $17 32.3% 0.0% 0.0% Papaya 13 $1-22.0% 0.0% 0.0% Grapefruit 14 $1-13.2% 0.0% 0.0% Orange 15 $1-7.8% 0.0% 0.0% Peach 16 $0 6.9% 0.0% 0.0% Pear 17 $0 50.8% 0.0% 0.0% *Excludes Mango Mix 48
MANGO ONLY FRESH-CUT % OF STORES SELLING The percentage of stores selling fresh cut mangos declined 0.9 percentage points from 2015 to 2016 The largest growth was in Q1 2016 (+1.1 pts) when compared to prior year 98.0% 96.0% 94.0% 94.4% 93.2% Mango % Stores Selling Total U.S., Fresh-Cut 95.4% 95.4% 95.4% 96.2% 95.4% 92.0% 91.5% 90.0% 88.0% 86.0% 88.9% 87.9% 84.0% 82.0% +1.1 pts -3.9 pts -6.5 pts -7.5 pts -0.9 pts Q1 Q2 Q3 Q4 2016 49
MANGO ONLY FRESH-CUT DOLLARS Mango only fresh-cut dollars decreased in three quarters in 2016 Only Q1 increased dollars by 38% compared to the prior year $70.0 $60.0 $50.0 $40.0 $30.0 Mango Dollars in $MM Total U.S., Fresh-Cut $59.6 $59.1 $20.0 $10.0 $0.0 $16.3 $16.8 $16.2 $14.2 $15.2 $14.9 $11.8 $13.3 +38% -15% -6% -11% -1% Q1 Q2 Q3 Q4 2016
MANGO ONLY FRESH-CUT DOLLARS PER STORE PER WEEK Mango only fresh-cut dollars per store/week increased in Q1 2016, up 39% from prior year Overall, mango slightly declined in 2016 by 1% $80 $70 $60 $50 $40 $30 $20 $10 $0 $50 $70 $72 Mango Dollars Per Store Per Week Total U.S., Fresh-Cut $61 $69 $65 $64 $64 +39% -15% -6% -12% -1% Q1 Q2 Q3 Q4 2016 $57 $63 51
ORGANIC MANGO ONLY FRESH-CUT DOLLARS In 2016, organic fresh-cut mango dollar sales increased by $356K from the prior year All the four quarters had significant dollar sales in organic fresh cut mango from the prior year Organic Mango Dollars in Hundreds Total U.S., Fresh Cut Mango Only $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $436 $1,104 $1,131 $6 $6 $13 $17 Q1 Q2 Q3 Q4 2016 +7222% +19127% +8701% +5267% +8489% $936 $42 $3,607 52
ORGANIC/CONVENTIONAL SHARE IN DOLLARS AND VOLUME Nationally, organic mango dollars accounted less than 1% of total fresh-cut mango sales during 2016 Fresh-Cut Mango Only Dollar Share Total U.S Organic vs. Conventional 0.0% 0.6% Fresh-Cut Mango Only Volume Share Total U.S Organic vs. Conventional 0.0% 0.3% 100.0% 99.4% 100.0% 99.7% Conventional Organic Conventional Organic 53
MANGO ONLY FRESH-CUT PERFORMANCE BY SUB-REGION Pacific 0.13% $78 94.6% 0.10% $58 95.4% Total U.S., 2016 Dollar Contribution to Department Dollars per Store/Week % of Stores Selling Mountain 0.12% $63 95.4% 0.11% $56 88.7% 0.16% $79 96.4% Source: Nielsen Perishables Group FreshFacts, All Stores, 2016 vs. YAGO West North Central West South Central 0.08% $45 88.1% East North Central East South Central 0.10% $47 97.9% 0.11% $75 96.3% Mid- Atlantic South Atlantic 0.13% $59 98.7% New England 0.10% $70 96.3% 54
MANGO ONLY F/C DOLLARS PER STORE/WEEK BY SUB-REGION Mid-Atlantic, Mountain and New England sub-regions dollars per store/week sales increased for fresh cut mango only versus year ago West South Central sub-region sold the most dollars per store/week at $79 (down 7% over prior year), followed by the Pacific sub-region at $78 (down 1% over prior year) $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 $64 $63-1% Total U.S. $49 $46 $45 $47 East North Central $75 $73 East South Mid Atlantic Central $58 $55 Mango Dollars Per Store Per Week Total U.S., Sub-Regions, Fresh-Cut Mountain $68 $70 $79 $78 New Pacific Subregion England $60 $59 $58 $56 South Atlantic West North Central $85 $79-2% -4% +3% +6% +3% -1% -1% -3% -7% West South Central 55
MANGO ONLY FRESH-CUT SHARE BY SUB-REGION Fresh-cut mango only s share of total mango dollars decreased 0.8 points over prior year, down to 22.5% of total mango dollars per store/week Eight of the nine sub-regions decreased fresh-cut mango share (Only Mountain subregion increased by 1.8 points) Mango Only Fresh-Cut Share Dollars per Store/Week Total U.S., 2015-2016 23.4% 22.5% 76.6% 77.5% Whole Mango Only Fresh-Cut Dollars per Store/Week % Change vs. YAGO Mango Only Fresh-Cut -4% Whole -1% Mango Dollars Per Store Per Week Total U.S., Sub-Regions, Fresh-Cut 2015-2016 Geography Mango Total U.S. Mango Only Fresh-Cut 23.4% 22.5% Whole 76.6% 77.5% East North Central Mango Only Fresh-Cut 20.9% 19.2% Whole 79.1% 80.8% East South Central Mango Only Fresh-Cut 26.7% 25.5% Whole 73.3% 74.5% Mid Atlantic Mango Only Fresh-Cut 24.0% 23.1% Whole 76.0% 76.9% Mountain Mango Only Fresh-Cut 20.7% 22.5% Whole 79.3% 77.5% New England Mango Only Fresh-Cut 19.8% 18.3% Whole 80.2% 81.7% Pacific Mango Only Fresh-Cut 23.1% 22.8% Whole 76.9% 77.2% South Atlantic Mango Only Fresh-Cut 24.2% 24.0% Whole 75.8% 76.0% West North Central Mango Only Fresh-Cut 24.5% 22.2% Whole 75.5% 77.8% West South Central Mango Only Fresh-Cut 25.9% 23.2% Whole 74.1% 76.8%
MANGO MIX FRESH-CUT % OF STORES SELLING The percentage of stores selling fresh-cut mango mix declined 5.6 percentage points from 2015 to 2016 The largest decline was in Q4 2016 (-11.5 pts) compared to prior year 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Mango % Stores Selling Total U.S., Fresh-Cut Mango Mix 37.0% 37.7% 37.9% 35.5% 35.8% 36.6% 32.7% 26.4% 45.4% +0.4 pts -0.4 pts -5.0 pts -11.5 pts -5.6 pts Q1 Q2 Q3 Q4 2016 39.8% 57
MANGO MIX FRESH-CUT DOLLARS Mango mix fresh-cut dollars increased in all quarters in 2016 Q1 had the largest increase in dollars by 50% compared to the prior year $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $2.6 Mango Dollars in $MM Total U.S., Fresh-Cut Mango Mix $4.6 $3.9 $4.1 $3.2 $3.4 $3.1 $3.6 $12.2 +50% +31% +37% +15% +32% Q1 Q2 Q3 Q4 2016 $16.2
MANGO MIX FRESH-CUT DOLLARS PER STORE PER WEEK Mango mix fresh-cut dollars per store/week increased in 2016, up 32% from prior year Q3 2016 had the strongest fresh-cut mango mix sales $25 Mango Dollars Per Store Per Week Total U.S., Fresh-Cut Mango Mix $20 $15 $17 $13 $18 $14 $20 $15 $14 $13 $17 $10 $11 $5 $0 +50% +32% +36% +14% +32% Q1 Q2 Q3 Q4 2016 59
$1 $0 $5 $6 $8 $10 $9 $11 $13 $13 $12 $13 $17 $16 $24 $25 $27 $31 $29 $38 MANGO MIX FRESH-CUT DOLLARS PER STORE/WEEK BY SUB-REGION Pacific sub-region sold the most dollars per store/week at $38 (up 30% over prior year), followed by the Mid Atlantic sub-region at $31 (up 90% over prior year) East North, East South and West South sub-regions dollars per store/week sales decreased for fresh-cut mango mix versus year ago Mango Dollars Per Store Per Week Total U.S., Sub-Regions, Fresh Cut Mango Mix $40 $35 $30 $25 $20 $15 $10 $5 $0 +32% -16% -48% +90% +15% +285% +30% +71% +18% -32% Total U.S. East North Central East South Central Mid Atlantic Mountain New Pacific Subregion England South Atlantic West North Central West South Central 60