Growth Trends for Fresh-Cut, Ready-to Eat Produce November 2006 Canary Wharf

Growth Trends for Fresh-Cut, Ready-to Eat Produce November 26 Canary Wharf Edward Garner Communications Director TNS Worldpanel

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Lifestyles changes

The core drivers of consumption ENJOYMENT PRACTICALITY HEALTH

1995 1 year trend 26 11% HEALTH BSE, Foot & Mouth, Sudan 1, Child Obesity, Jamie Oliver, Bird Flu, Supersize me, Salt & sugar content, Functional Foods, 5 a day, Fruit for schools 23% 34% ENJOYMENT Organics/ premium, Taste the difference, Sharing, Café culture, Eating out, Debit Credit, Treating 42% 55% PRACTICALITY Ready Meals, Light meals, Snacking, Budget, Microwave, Individual portions, Quick to cook E 35% H P Worldpanel Usage In Home Ann to May 26

Health affecting not just what we eat but how we eat! In home snacking has seen a +5% growth over the last 1 years But, in the last 3 years has seen a 4% decline Worldpanel Usage In Home

Core snacking categories at the heart of the declining occasions Last 1 years + 18% Last 3 years - 8% + 37% - 7% + 35% -1% Worldpanel TM division Usage of TNS In Home 26 Ann to Nov 25

5 A Day Consumption Younger adults have driven the growth in the last year although some way to go until they reach the level of older consumers 5 4.5 4 3.5 3 2.5 2 2.5 2.6 Ann SA 2 Ann SA 4 Ann SA 5 2.7 1.8 1.9 2. 2.7 2.7 2.9 1.5 1.5 ALL CONSUMERS Children Adults

Its not all about health Growth in indulgence Health +9% 13647.5 14826.2 15359.9 1679.5 23 24 25 26 Indulgence +7% 683.1 6766.7 7298 7241.9 23 24 25 26 TNS Worldpanel Usage 52 W/E May 26 Worldpanel TM division of TNS Indulgence 26 (Craving, Something Special/Treat, Social/Entertaining)

Both drivers don t have to be in the same product Treaters are more likely than the average person to also choose foods for health reasons. Credit / Debit lifestyle.

Frozen Chips & Potato Products

Chips & Potato Products Market Trends 5 45 456 446-2.% 435-2.5% 4 35 185 183-1.2% 171-6.4% 3 Potato Products m 25 Oven Chips 2 15 178 179 +.6% 179 +.2% Microchips Fry Chips 1 5 36 34 33 31 22 17 13 14 16 14 15 19 52 w/e Aug 15 4 52 w/e Aug 14 5 52 w/e Aug 13 6 Coated Oven/Fry Products Three Way Cook Chips

Real Household Disposable Income Per Head 25 2 15 1 5 197 1971 1972 1973 1974 1975 1976 1977 1978 1979 198 1981 1982 1983 1984 1985 1986 1987 1988 1989 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 Constant Prices - Indexed on 197 Source: ONS Series IHXZ

25 Food and Drink as a Proportion of UK Household Expenditure % 2 15 1 5 1963 1964 1965 1966 1967 1968 1969 197 1971 1972 1973 1974 1975 1976 1977 1978 1979 198 1981 1982 1983 1984 1985 1986 1987 1988 1989 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 Source: ONS Series ABQI / ABZV

Bread

W rapped Bread Sector Trends m's 2 Premium 15 1 5 Economy Organic 9 1 11 12 13 21 9 1 11 12 13 22 9 1 11 12 13 23 9 1 11 12 13 24 2 3 4 9 1 11 12 13 25 2 3 4 9 1 11 12 13 26 2 3 4 7 8 2 3 4 5 6 7 8 2 3 4 5 6 7 8 2 3 4 5 6 7 8 5 6 7 8 5 6 7 8 5 6 7 8 9 Organic Premium Economy

Free Range

Hens Eggs - 'Free Range' Share Trends 52 Share - % 5 48 46 44 42 4 38 36 34 32 3 28 1998 1999 2 21 22 23 24 25 26 Free Range

Organic

Total Organic Products m s 8 7 6 5 4 3 2 Annualised Value = 99m 1 1998 1999 2 21 22 23 24 25 26

Mineral W ater Retail Sales 1, 9, 8, 7, Litres 6, 5, 4, 3, 2, 1, 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26

Total Grocery Total PL Trends 7 65 6 55 % within Outlet Tesco Sainsbury 5 45 4 35 Asda Morrisons Safeway 3 25 2 1 96 2 3 4 1 97 2 3 4 1 98 2 3 4 1 99 2 3 4 1 2 3 4 1 1 2 3 4 1 2 2 3 4 1 3 2 3 4 1 4 2 3 4 1 5 2 3 4 1 6 2 3

Premium Private Label Sales Trends 8 7 Sales (Expenditure m) 6 5 4 3 2 1 2 23 4 56 7 89 1 11 12 13 21 23 4 56 7 89 1 11 12 13 22 23 4 56 7 89 1 11 12 13 23 23 4 56 7 89 1 11 12 13 24 23 4 56 7 89 1 11 12 13 25 23 4 5 6 7 89 1 11 12 13 26 23 4 56 7 8 9 1 11 Tesco Finest Sainsbury Taste the Difference Asda Extra Special Safeway/MorrisonsThe Best

Cash-rich Time-poor

We are changing from this

To this

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Fresh Fruit Market Trends 4, 3,5 3,119 3,343 +7.2% 3,547 +6.1% 3, 2,5 1,61 1,89 +12.4% 1,981 +9.5% m 2, Prepacked 1,5 1, 1,59 1,534 +1.6% 1,566 +2.1% Loose 5 52 w/e Oct 1 4 52 w/e Oct 9 5 52 w/e Oct 8 6

Fresh Vegetables Market Trends 4,5 4, 3,5 3,553 3,762 +5.9% 3,83 +1.8% 3, m 2,5 2, 2,452 2,615 +6.7% 2,724 +4.2% Prepacked 1,5 1, Loose 5 1,11 1,148 +4.2% 1,17-3.6% 52 w/e Oct 1 4 52 w/e Oct 9 5 52 w/e Oct 8 6

Fruit - Weekly Seasonality 6 5 4 Sales m 3 2 1 Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb 29 24 Mar 28 24 Apr 25 24 May 23 24 Jun 2 24 Jul 18 24 Aug 15 24 Sep 12 24 Loose Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb 27 25 Mar 27 25 Apr 24 25 May 22 25 Jun 19 25 Jul 17 25 Aug 14 25 Sep 11 25 Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan 29 26 Feb 26 26 Mar 26 26 Prepacked Apr 23 26 May 21 26 Jun 18 26 Jul 16 26 Aug 13 26 Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

Vegetables - Weekly Seasonality 7 6 5 Sales m 4 3 2 1 w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb 29 24 w/e Mar 28 24 w/e Apr 25 24 w/e May 23 24 w/e Jun 2 24 w/e Jul 18 24 w/e Aug 15 24 w/e Sep 12 24 Loose w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb 27 25 w/e Mar 27 25 w/e Apr 24 25 w/e May 22 25 w/e Jun 19 25 w/e Jul 17 25 w/e Aug 14 25 w/e Sep 11 25 w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan 29 26 w/e Feb 26 26 w/e Mar 26 26 Prepacked w/e Apr 23 26 w/e May 21 26 w/e Jun 18 26 w/e Jul 16 26 w/e Aug 13 26 w/e Sep 1 26 w/e Oct 8 26 Weekly 3 Point Centred Moving Average

Vegetables - Weekly Seasonality 8 7 6 5 Sales m 4 3 2 1 w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb 29 24 w/e Mar 28 24 w/e Apr 25 24 w/e May 23 24 w/e Jun 2 24 w/e Jul 18 24 w/e Aug 15 24 w/e Sep 12 24 Loose w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb 27 25 w/e Mar 27 25 w/e Apr 24 25 w/e May 22 25 w/e Jun 19 25 w/e Jul 17 25 w/e Aug 14 25 w/e Sep 11 25 w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan 29 26 w/e Feb 26 26 w/e Mar 26 26 Prepacked w/e Apr 23 26 w/e May 21 26 w/e Jun 18 26 w/e Jul 16 26 w/e Aug 13 26 w/e Sep 1 26 w/e Oct 8 26

Key Performance Indicators for Prepacked Fruit - Value up 9.5% worth 171.4m Expenditure ( s) 52 w/e 9 Oct 5 189189 52 w/e 8 Oct 6 198572 Actual Change 171383 % Change 9.5 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 16959 187813 26854 2.5 Penetration % 97.2 97.3.12.1 Purchase Frequency 34.4 35.3.88 2.6 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 75.85 44.5 2.21 82.78 45.5 2.35 6.93.98.14 9.1 2.2 6.4-5 5 1 15 2 Expenditure ( s) Trip Vol Price per Vol 1.3 1.71 1.3 1.82..12 -.3 6.8 198.6m +9.5% Increase of 171.4m Volume (s Units) 187.8m vol +2.5% Contribution = 46.8m Price per Vol 1.82 +6.8% Contribution = 124.6m AWP (Vol per Buyer) 45.5 vol +2.2% Contribution = 41.1m Penetration % * 97.3% +.1% Contribution = 5715k Trip Vol 1.3 vol -.3% Contribution = - 621k Purchase Frequency 35.3 trips +2.6% Contribution = 47.3m * Pen Contribution includes Population growth of.2%

Key Performance Indicators for Prepacked Vegetables - Value up 4.2% worth 18.8m Expenditure ( s) 52 w/e 9 Oct 5 2614882 52 w/e 8 Oct 6 2723694 Actual Change 18812 % Change 4.2 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 2429565 256186 76621 3.2 Penetration % 99.2 99.2 -.4. Purchase Frequency 53.7 54.6.88 1.6 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 17.38 99.8 2. 111.68 12.8 2.4 4.31 3..5 4. 3. 2.3 2 4 6 8 1 12 Expenditure ( s) Trip Vol Price per Vol 1.9 1.8 1.9 1.9.2.1 1.3 1. 2723.7m +4.2% Increase of 18.8m Volume (s Units) 256.2m vol +3.2% Contribution = 82.9m Price per Vol 1.9 +1% Contribution = 25.9m AWP (Vol per Buyer) 12.8 vol +3% Contribution = 79.1m Penetration % * 99.2% % Contribution = 3873k Trip Vol 1.9 vol +1.3% Contribution = 35.6m Purchase Frequency 54.6 trips +1.6% Contribution = 43.4m * Pen Contribution includes Population growth of.2%

Prepacked Fruit & Veg Demographic Signatures Fruit & Vegetables Sector Share within Demographic Group - MAT to October Social Class Household Size 7 6 5 4 3 2 1 Class AB Class C1 Class C2 Class D Class E 24 25 26 8 7 6 5 4 3 2 1 1 in HH 2 in HH 3 in HH 4 in HH 5+ in HH 24 25 26 Housewife Age 8 7 6 5 4 3 2 1 Age under 28 Age 28-34 Age 35-44 Age 45-64 Age 65+ 24 25 26 No. of Children 8 7 6 5 4 3 2 1 No Children 1 Child HH 2 Child HH 3+ Child HH 24 25 26

Lifestyles Prepacked Fruit & Vegetables I am among the first to buy new products when they appear on the market 12 We often visit fast food outlets 119 I tend to give my children what they want for their meals 118 I would use cosmetic surgery to improve my appearance 114 People regularly smoke in my house 114 I often buy take-away meals to eat at home 113 I tend to spend money without thinking 112 It s more important that my children enjoy their food than they eat healthily 111 I often buy things just because I see them on the shelf 11 I like introducing new brands and products to my friends 19 I have little time to myself 19 My children eat what I eat 18 I try to give my children healthy meals 17 I rely heavily on convenience products to make cooking simple/quick 17 I regard myself as a connoisseur of food and wine 17 We really enjoy barbequeing in the summer 17 I am prepared to pay more for organic food 16 I like trying out new brands 16 I often visit a supermarket on the way home 16 It's always a struggle to pay the bills at the end of the month 16 Prepacked Spend indexed on Loose 52 w/e Oct 8 26

Prepared Fruit & Vegetable Market Trends 7 6 575 +7.7% 534 36-2.6% 5 37 61 45 +36.1% 62 29 79 +4.8% -18.7% +29.5% m 4 3 21 26 +2.5% 218 +5.4% Mixed Tray Salads Fruit 2 Vegetables 1 25 271 +8.2% 276 +1.9% Leafy Salads 52 w/e Oct 1 4 52 w/e Oct 9 5 52 w/e Oct 8 6

Prepared Fruit & Vegetables Long-Term Trends - m 3 Leafy Salads 25 2 Vegetables 15 1 Fruit 5 Mixed Tray Salads 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 Fruit Vegetables Leafy Salads Mixed Tray Salads

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Prepared Fruit Classic Salad Sunshine Fruit Salad Luxury Fruit Salad Seasonal Melon Medley Melon Medley Fruit Medley Pineapple Chunks Apple Slices+Grapes Pineapple Slices Apple+Grape Fruit Selection Exotic Fruit Salads Pineapple Pieces Apple Segments Sliced Melon Selection Grape+Melon Fresh Fruit Salad Mango Pieces Fruit Salad Pineapple Cubes Melon+Grape Melon Slice Mango Chunks Red Grape Tropical Fruit Salad Watermelon Melon Selection Pineapple Mixed Fruit Salad Pineapple Rings

Prepared Fruit - Weekly Seasonality 2 1.8 1.6 1.4 1.2 Sales m 1.8.6.4.2 Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb 29 24 Mar 28 24 Apr 25 24 May 23 24 Jun 2 24 Jul 18 24 Aug 15 24 Sep 12 24 Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb 27 25 Mar 27 25 Apr 24 25 May 22 25 Jun 19 25 Jul 17 25 Aug 14 25 Sep 11 25 Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan 29 26 Feb 26 26 Mar 26 26 Apr 23 26 May 21 26 Jun 18 26 Jul 16 26 Aug 13 26 Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

Key Performance Indicators for Prepared Fruit - Value up 29.5% worth 18.1m Expenditure ( s) 52 w/e 9 Oct 5 61327 52 w/e 8 Oct 6 79423 Actual Change 1896 % Change 29.5 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 11248 13732 2483 22.1 Penetration % 23.3 25.9 2.55 1.9 Purchase Frequency 5.2 5.7.53 1.3 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 1.71 2. 2.7 12.48 2.2 2.19 1.77.19.12 16.5 9.8 5.7-5 5 1 15 2 Expenditure ( s) Trip Vol Price per Vol.4 5.45.4 5.78..33 -.4 6.1 79.4m +29.5% Increase of 18.1m Volume (s Units) 13.7m vol +22.1% Contribution = 14m Price per Vol 5.78 +6.1% Contribution = 453k AWP (Vol per Buyer) 2.2 vol +9.8% Contribution = 6611k Penetration % * 25.9% +1.9% Contribution = 7432k Trip Vol.4 vol -.4% Contribution = - 22k Purchase Frequency 5.7 trips +1.3% Contribution = 6831k * Pen Contribution includes Population growth of.2%

Prepared Fruit Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size 14 12 1 8 6 4 2 Class AB Class C1 Class C2 Class D Class E 24 25 26 25 2 15 1 5 1 in HH 2 in HH 3 in HH 4 in HH 5+ in HH 24 25 26 Housewife Age 14 12 1 8 6 4 2 Age under 28 Age 28-34 Age 35-44 Age 45-64 Age 65+ 24 25 26 No. of Children 12 1 8 6 4 2 No Children 1 Child HH 2 Child HH 3+ Child HH 24 25 26

Lifestyles Prepared Fruit I'm prepared to pay more for products that make life easier 145 I am among the first to buy new products when they appear on the market 135 I tend to spend money without thinking 134 I eat out regularly 133 I like to pamper myself 13 I think of myself as a brand loyal consumer 128 It is important to me which brand I buy 125 I rely heavily on convenience products to make cooking simple/quick 123 I am prepared to pay more for organic food 122 I often buy things just because I see them on the shelf 121 I like introducing new brands and products to my friends 119 I regard myself as a connoisseur of food and wine 119 I buy free range products whenever I can 118 Country of origin is important to me when choosing groceries 117 The BBC is an institution that I can rely on 116 I am prepared to pay more for quality ingredients 115 I am actively trying to manage my cholesterol level 114 The brand name of the clothes I wear is important to me 114 I find it hard to spend all the money that I earn 114 We often visit fast food outlets 113 Spend indexed on Households 52 w/e Oct 8 26

Prepared Fruit Range Shares % 52 w/e Oct 1 24 52 w/e Oct 9 25 52 w/e Oct 8 26 M+S 27.9 23.4 32. Tesco 16.6 18. 23. Sainsbury 13.3 1.4 11.1 Asda 16.7 18.7 9.9 Waitrose 6.1 7.5 5.9 Morrisons 2.1 5. 4.1 Asda Great Stuff..6 4. M+S Food To Go 5. 6.1 3.5 Co-op 2.3 2. 1.6 Somerfield 1.6 1.1 1.2 All Others 8.4 7.2 3.7 Total PL 98.9 98.6 99.1

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Leafy Salads Sweet+Crunchy Salad Leaf Salad Iceberg Lettuce Four Leaf Salad Watercress Tender Leaf Salad Italian Salad Crispy Leaf Salad Crispy Salad Mixed Leaf Salad Caesar Salad Rocket+Spinach+Watercress Mixed Salad Italian Leaf Salad Rocket Salad Fine Cut Salad Herb Salad Watercress+Spinach+Rocket Rocket Watercress Salad Bistro Salad Baby Leaf+Watercress Sld Baby Leaf Salad Seasonal Baby Leaf Salad Alfresco Salad Sweet Leaf Salad Spinach+Watercress+Rocket Sld Ruby Salad Crisp Mixed Salad Santa Plum Tomato Salad

Leafy Salads - Weekly Seasonality 9 8 7 6 Sales m 5 4 3 2 1 Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb 29 24 Mar 28 24 Apr 25 24 May 23 24 Jun 2 24 Jul 18 24 Aug 15 24 Sep 12 24 Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb 27 25 Mar 27 25 Apr 24 25 May 22 25 Jun 19 25 Jul 17 25 Aug 14 25 Sep 11 25 Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan 29 26 Feb 26 26 Mar 26 26 Apr 23 26 May 21 26 Jun 18 26 Jul 16 26 Aug 13 26 Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

Key Performance Indicators for Leafy Salads - Value up 1.9% worth 5229k Expenditure ( s) 52 w/e 9 Oct 5 27846 52 w/e 8 Oct 6 27674 Actual Change 5229 % Change 1.9 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 42912 4483 1171 2.7 Penetration % 69.3 69.9.6.9 Purchase Frequency 12.4 12.3 -.7 -.5 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 15.93 2.5 1.29 16.6 2.6 1.31.14.4.2.9 1.7 1.4-6 -4-2 2 4 6 8 1 Expenditure ( s) Trip Vol Price per Vol.2 6.31.2 6.26. -.5 2.2 -.8 276.1m +1.9% Increase of 5229k Volume (s Units) 44.1m vol +2.7% Contribution = 7344k Price per Vol 6.26 -.8% Contribution = - 2115k AWP (Vol per Buyer) 2.6 vol +1.7% Contribution = 4487k Penetration % * 69.9% +.9% Contribution = 2857k Trip Vol.2 vol +2.2% Contribution = 598k Purchase Frequency 12.3 trips -.5% Contribution = - 1493k * Pen Contribution includes Population growth of.2%

Leafy Salads Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size 16 14 12 1 8 6 4 2 Class AB Class C1 Class C2 Class D Class E 24 25 26 14 12 1 8 6 4 2 1 in HH 2 in HH 3 in HH 4 in HH 5+ in HH 24 25 26 Housewife Age 14 12 1 8 6 4 2 Age under 28 Age 28-34 Age 35-44 Age 45-64 Age 65+ 24 25 26 No. of Children 12 1 8 6 4 2 No Children 1 Child HH 2 Child HH 3+ Child HH 24 25 26

Lifestyles Leafy Salads I regard myself as a connoisseur of food and wine 142 I am prepared to pay more for organic food 134 My diet is very important to me 122 I/my partner enjoy cooking to entertain friends and family 121 The internet has been a positive innovation for society 119 I am prepared to pay more for quality ingredients 118 I believe in a holistic approach to medical treatment 117 I look out for the 'healthy' products 117 I enjoy eating foreign food 116 I like to keep up with fashion 116 I buy free range products whenever I can 115 I feel good about buying fair trade products 115 I never go out without putting on my makeup 115 I try to give my children healthy meals 115 I try to buy a healthy range of foods these days 115 I eat out regularly 115 I am among the first to buy new products when they appear on the market 114 I try to buy environmentally friendly products 114 I'm often on a diet to lose weight 114 I read the ingredients on the pack before buying 113 Spend indexed on Households 52 w/e Oct 8 26

Leafy Salads Range Shares % 52 w/e Oct 1 24 52 w/e Oct 9 25 52 w/e Oct 8 26 Tesco 22.8 24.1 24.5 Sainsbury 14.9 14.7 14.5 Asda 11.2 1.2 1.6 Morrisons 8.4 11.6 1.4 M+S 6.7 7.8 8.9 Waitrose 5.2 6.3 7.2 Florette 6.7 6.6 6.7 Co-op 2.5 3.1 3.7 Somerfield 2.9 3.1 3.5 Tesco Eat / Keep 2.8 2.6 1.6 All Others 15.9 9.9 8.4 Total PL 92.4 92.5 92.6

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Mixed Tray Salads Potato+Egg Salad Crunchy Lettuce Sld+Cbbg Sweet+Crunchy Salad Crisp Mixed Salad Lettuce+Tom+Cucumber+Clry King Prawn+Pasta Salad Layered Salad With Cheese Tuna+Pasta Mediterranean Salad Egg Salad Fresh+Crispy Potato+Peas+Bean Salad Ribbon Sld Lettuce+Ccmbr Pasta+Pepper Salad Mixed Pepper Salad Salmon+Potato Prawn+Pasta Salad Chicken+Bacon Caesar Sld Tuna Nicoise Avocado Spinach+Tomato Pasta+Cheese Salad Gourmet Tuna Nicoise Mxd Sld White+Red Cabbage Apple+Seed+Raisin Salad Sweet Pepper Salad Mozzarella+Cherry Tomato Orientl Edamame Soya Bean King Prawn Noodle Salad Greek Salad Tomato+Mozrla Pasta Salad

Mixed Tray Salads - Weekly Seasonality 1.9.8.7.6 Sales m.5.4.3.2.1 w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb 29 24 w/e Mar 28 24 w/e Apr 25 24 w/e May 23 24 w/e Jun 2 24 w/e Jul 18 24 w/e Aug 15 24 w/e Sep 12 24 w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb 27 25 w/e Mar 27 25 w/e Apr 24 25 w/e May 22 25 w/e Jun 19 25 w/e Jul 17 25 w/e Aug 14 25 w/e Sep 11 25 w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan 29 26 w/e Feb 26 26 w/e Mar 26 26 w/e Apr 23 26 w/e May 21 26 w/e Jun 18 26 w/e Jul 16 26 w/e Aug 13 26 w/e Sep 1 26 w/e Oct 8 26 Weekly 3 Point Centred Moving Average

Key Performance Indicators for Mixed Tray Salads - Value down 18.7% worth 6726k Expenditure ( s) 52 w/e 9 Oct 5 35959 52 w/e 8 Oct 6 29233 Actual Change -6726 % Change -18.7 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 7349 5478-1871 -25.5 Penetration % 26.8 2.3-6.57-24.5 Purchase Frequency 3.8 3.6 -.22-5.9 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 5.46 1.1 1.45 5.87 1.1 1.65.41 -.2.2 7.5-1.5 14.2-15 -1-5 5 1 Expenditure ( s) Trip Vol Price per Vol.3 4.89.3 5.34.1.44 4.7 9.1 29.2m -18.7% Decrease of - 6726k Volume (s Units) 5478k vol -25.5% Contribution = - 9819k Price per Vol 5.34 +9.1% Contribution = 393k AWP (Vol per Buyer) 1.1 vol -1.5% Contribution = - 615k Penetration % * 2.3% -24.5% Contribution = - 924k Trip Vol.3 vol +4.7% Contribution = 1596k Purchase Frequency 3.6 trips -5.9% Contribution = - 2211k * Pen Contribution includes Population growth of.2%

Mixed Tray Salads Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size 2 15 1 5 Class AB Class C1 Class C2 Class D Class E 24 25 26 25 2 15 1 5 1 in HH 2 in HH 3 in HH 4 in HH 5+ in HH 24 25 26 Housewife Age 16 14 12 1 8 6 4 2 Age under 28 Age 28-34 Age 35-44 Age 45-64 Age 65+ 24 25 26 No. of Children 16 14 12 1 8 6 4 2 No Children 1 Child HH 2 Child HH 3+ Child HH 24 25 26

Lifestyles Mixed Tray Salads I rely heavily on convenience products to make cooking simple/quick 13 I am among the first to buy new products when they appear on the market 127 We often visit fast food outlets 124 I'm prepared to pay more for products that make life easier 119 I often buy take-away meals to eat at home 119 I am prepared to pay more for organic food 119 It is important to me which brand I buy 118 I often buy things just because I see them on the shelf 117 I tend to spend money without thinking 114 I think of myself as a brand loyal consumer 113 I am actively trying to manage my cholesterol level 112 I never go out without putting on my makeup 111 I would use cosmetic surgery to improve my appearance 11 I'm often on a diet to lose weight 11 I only eat to fill up 11 I should do a lot more about my health 19 My pet is very choosy about what it eats 19 I try to avoid products containing caffeine 17 I am actively trying to manage my blood pressure 17 I find out about new products from TV adverts 17 Spend indexed on Households 52 w/e Oct 8 26

Mixed Tray Salads Range Shares % 52 w/e Oct 1 24 52 w/e Oct 9 25 52 w/e Oct 8 26 M+S 22. 25.2 31.4 Tesco 24.2 19.7 2.3 Sainsbury 16.1 16.2 11. Morrisons 6.1 8. 8.3 Asda 6.6 9.4 7.6 Sainsbury BGTY.. 7.5 Asda Good For You.2 5.4 6.7 M+S Healthily Balanced..3 1.7 Waitrose 6.6 3.2 1.3 Tesco Naturally Good...8 All Others 18.2 12.6 3.4 Total PL 97.6 99.2 99.5

Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

Prepared Vegetables Broccoli+Crrt+Cauliflower Vegetable Medley Sliced Runner Beans Mini Carrots Mushroom Stir Fry Mixed Peppers Stir Fry Vegetable Stir Fry Broccoli Florets Broccoli+Cauliflower Flrt Diced Carrot+Swede Carrot Batons Spinach Leaves Brussel Sprouts Roast Veg W Herb Baby Spinach Lyrd Veg Wth Seasoned Btr Chinese Veg Stir Fry Swede+Carrot For Mashing Bean Sprouts Crunchy Veg Stir Fry Mixed Vegetable Stir Fry Cabbage+Leek Peas Vegetable Selection Young Leaf Spinach Cabbage Medley Runner Beans Broccoli+Carrot New Potatoes+Herbs+Butter American Style Salad

Key Performance Indicators for Vegetables - Value up 5.4% worth 11.1m Expenditure ( s) 52 w/e 9 Oct 5 26445 52 w/e 8 Oct 6 21751 Actual Change 1157 % Change 5.4 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) 64563 6782 3258 5. Penetration % 7.3 7.6.32.4 Purchase Frequency 8.9 8.9.5.6 AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend 11.97 3.7 1.35 12.53 3.9 1.4.56.16.6 4.7 4.4 4.1 2 4 6 8 1 12 Expenditure ( s) Trip Vol Price per Vol.4 3.2.4 3.21.2.1 3.8.3 217.5m +5.4% Increase of 11.1m Volume (s Units) 67.8m vol +5% Contribution = 1.4m Price per Vol 3.21 +.3% Contribution = 616k AWP (Vol per Buyer) 3.9 vol +4.4% Contribution = 919k Penetration % * 7.6% +.4% Contribution = 1332k Trip Vol.4 vol +3.8% Contribution = 797k Purchase Frequency 8.9 trips +.6% Contribution = 121k * Pen Contribution includes Population growth of.2%

Prepared Vegetables - Weekly Seasonality 6 New Year s Resolution Market 5 4 Sales m 3 2 1 Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb 29 24 Mar 28 24 Apr 25 24 May 23 24 Jun 2 24 Jul 18 24 Aug 15 24 Sep 12 24 Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb 27 25 Mar 27 25 Apr 24 25 May 22 25 Jun 19 25 Jul 17 25 Aug 14 25 Sep 11 25 Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan 29 26 Feb 26 26 Mar 26 26 Apr 23 26 May 21 26 Jun 18 26 Jul 16 26 Aug 13 26 Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

7 Prepared Brussels Spouts - Weekly Seasonality 6 5 Sales m 4 3 2 1 Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb 29 24 Mar 28 24 Apr 25 24 May 23 24 Jun 2 24 Jul 18 24 Aug 15 24 Sep 12 24 Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb 27 25 Mar 27 25 Apr 24 25 May 22 25 Jun 19 25 Jul 17 25 Aug 14 25 Sep 11 25 Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan 29 26 Feb 26 26 Mar 26 26 Apr 23 26 May 21 26 Jun 18 26 Jul 16 26 Aug 13 26 Sep 1 26 Oct 8 26

Prepared Vegetables Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size 14 12 1 8 6 4 2 Class AB Class C1 Class C2 Class D Class E 24 25 26 14 12 1 8 6 4 2 1 in HH 2 in HH 3 in HH 4 in HH 5+ in HH 24 25 26 Housewife Age 12 1 8 6 4 2 Age under 28 Age 28-34 Age 35-44 Age 45-64 Age 65+ 24 25 26 No. of Children 12 1 8 6 4 2 No Children 1 Child HH 2 Child HH 3+ Child HH 24 25 26

Lifestyles Prepared Vegetables I'm often on a diet to lose weight 124 I am among the first to buy new products when they appear on the market 123 I am prepared to pay more for organic food 122 I tend to spend money without thinking 117 I regard myself as a connoisseur of food and wine 116 I like introducing new brands and products to my friends 115 I buy free range products whenever I can 114 I'm prepared to pay more for products that make life easier 114 I am prepared to pay more for quality ingredients 114 I am actively trying to manage my blood pressure 112 I read the ingredients on the pack before buying 112 Recently I have become more aware of whether the foods I buy are good for m 112 I never go out without putting on my makeup 112 My diet is very important to me 112 The internet has been a positive innovation for society 111 I look out for the 'healthy' products 111 It is important to me which brand I buy 111 I am willing to travel further to shop at the supermarket I prefer 11 I like to pamper myself 11 I prefer to buy low salt products if they're available 11 Spend indexed on Households 52 w/e Oct 8 26

Prepared Vegetables Range Shares % 52 w/e Oct 1 24 52 w/e Oct 9 25 52 w/e Oct 8 26 Tesco 24.8 26.7 25.3 M+S 15.6 14.1 14.6 Asda 16.5 15.3 13.8 Sainsbury 1.2 1.8 12.7 Morrisons 7.2 1.2 9.4 Waitrose 2.8 3.6 4.6 Somerfield 2.9 3.7 3.7 Co-op 3. 3.1 3.1 Sainsbury TTD 2.4 2.7 2.7 Sainsbury Oriental 2.8 2.8 1.9 All Others 11.8 7. 8.2 Total PL 98. 99.1 99.5

The current consumer landscape Stepping into the background.. Processed Frozen 3 course meals Unhealthy snacks In the foreground.. Raw Proteins Chilled Traceability 5 a day Health Organic Smaller baskets Fast casual dining Homemade Indulgence Worldpanel Usage In Home Ann to Nov 25

Whilst the presence of Foodservice was gathering pace, Retailers have been quick to address to meal solutions opportunity In Store. Billion Great Britain: Shares of Consumer Spending on Food Drink & Alcohol Out of Home 29.5 3.2 3.4 3.7 32. 31.6 31.4 In Home 7.5 69.8 69.6 69.3 68. 68.4 68.6 1999 2 21 22 23 24 25

Making it easier to eat out, within your own home

Differing store fascia s now increasing competitive rivalry within the high street Eat now Tesco Metro Share (Index) I am not really worried about eating healthily (123) I often buy takeaway meals to eat at home (115) I like to spend as little time as possible food shopping (11) Sainsburys Local Share (Index) I regard myself as a connoisseur of food and wine (196) I often buy takeaway meals to eat at home (152) I tend to spend money without thinking (123) I am a busy person, so often eat on the run (117)

Profit Sector is worth 27bn +2% y-o-y but Volume is down -3% less people are eating out Premiumisation within Foodservice Source Worldpanel TNS Outlet TM division Tracker- of TNS 526 week to April 6

So within Foodservice, overall meals are down, but Coffee Shops, as well as Sandwich Bars are bucking the trend. 52 w/e 27th July 24 52 w/e 25th July 26 % change QUICK SERVICE RESTAURANTS 1227597 185214-11.6 Burger House 19424 14937-21.6 Pizza Place (Off Premise) 156461 1486-1 Fish and Chips 28419 23489-17.3 Chinese (Off Premise) 3172 272398-9.5 Indian (Off Premise) 134376 122445-8.9 Total Fried Chicken 6334 6415-4.6 Sandwich bar/bakery 25392 32159 26.6 Other QSR 72464 72683.3 NON QUICK SERVICE RESTS 12171 115643-3.8 Pub/Bar/Steakhouse/Carvery 427558 41221-6.2 Hotels 72439 6826-5.8 Chinese (On Premise) 83972 76912-8.4 Indian (On Premise) 75677 74319-1.8 Italian Rest(inc OnPrem Pizza) 12254 96472-5.7 Other Restaurants 168338 17774 1.4 Motorway services/roadside 12566 1212-18.7 Sports club/leisure centre 1553 1237-22.4 Total In Store 74548 67552-9.4 Coffee Shop 115639 118747 2.7 TNS Outlet Tracker - No. of Meals Y/E 25th July 26 (Millions)

Coffee Culture The growth of premium speciality coffee out of home seems to have benefited consumption at home 8 Speciality Coffee in Cafés 35 Speciality Coffee at Home 7 3 6 25 5 2 4 3 15 2 1 1 5 Oct-99 - Sep- Oct- - Sep-1 Oct-2 - Sep-3 Oct-3 - Sep-4 Oct-4 - Sep-5 Oct- - Sep-1 Oct-1 - Sep-2 Oct-2 - Sep-3 Oct-3 - Sep-4 Oct-4 - Sep-5 Source: Worldpanel NDS

Meals Out of Home are getting lighter.. % of Meals featuring a Dessert 1998 16.8% 22 14.7% 26 11.6% 16.4% of kids OOH meals feature a dessert also declining yr on yr

During the week is now becoming more important for Out of Home meals and snacks. This has implications for meal centres. 1% 9% 8% 7% 6% OOH Meals 33.6 32.5 OOH Snacks 21. 19.2 Weekend Weekday rules Lighter meals Sandwiches key 5% 4% 3% 2% 66.4 67.5 Weekday 79. 8.8 On the go formats Individualism Location, location 1% % 24 26 l 24 26 TNS Worldpanel Foodservice 52 W/E to May 26

Within the Out of home market, Fast Casual Dining has been a real area of growth on the high street. 35 Number of Meals ( ) 3 25 2 15 Sandwich bar/bakery 1 5 52 w/e 12th March 22 52 w/e 7th May 22 52 w/e 2nd July 22 52 w/e 27th August 22 52 w/e 22nd October 22 52 w/e 17th December 22 52 w/e 11th February 23 52 w/e 8th April 23 52 w/e 3rd June 23 52 w/e 29th July 23 52 w/e 23rd September 23 52 w/e 18th November 23 52 w/e 13th January 24 52 w/e 9th March 24 52 w/e 4th May 24 52 w/e 29th June 24 52 w/e 24th August 24 52 w/e 19th October 24 52 w/e 14th December 24 52 w/e 8th February 25 52 w/e 5th April 25 52 w/e 1st June 25 52 w/e 26th July 25 52 w/e 2th September 25 52 w/e 15th November 25 52 w/e 1th January 26 52 w/e 7th March 26 52 w/e 3rd May 26 52 w/e 27th June 26 52 w/e 22nd August 26 TNS Outlet Tracker - No. of Meals Y/E 22 nd August 26 (Millions)

Number of Meals ( ) 9 8 Number of Meals ( ) 7 6 5 4 3 2 1 Subway TNS Outlet Tracker - No. of Meals Y/E 25th July 26 (Millions) 52 w/e 8th February 25 52 w/e 8th March 25 52 w/e 5th April 25 52 w/e 4th May 25 52 w/e 1st June 25 52 w/e 28th June 25 52 w/e 26th July 25 52 w/e 23rd August 25 52 w/e 2th September 25 52 w/e 18th October 25 52 w/e 15th November 25 52 w/e 13th December 25 52 w/e 1th January 26 52 w/e 7th February 26 52 w/e 7th March 26 52 w/e 4th April 26 52 w/e 3rd May 26 52 w/e 31st May 26 52 w/e 27th June 26 52 w/e 25th July 26 52 w/e 22nd August 26

Reminders Prepared Vegetables Mixed Tray Salads Leafy Salads Drivers of Growth Prepacked Produce Prepared Fruit

Thank you ed.garner @tns-global.com