Apple Sauce Fall 2011 Prepared by: Garrett Bills

Demographics Apple sauce covers a wide range of demographics, but here are the highlights: Larger households – 3+ members Kids under 6 Start up Families Senior and Empty Nest couples Caucasians

MOTT'S - CANNED FRUIT - APPLE SAUCE MOTT'S ORGANICS - CANNED FRUIT - APPLE SAUCE MUSSELMAN'S - CANNED FRUIT - APPLE SAUCE SANTA CRUZ ORGANIC - CANNED FRUIT - APPLE SAUCE DOLLAR VOLUME INDEX SIZE MEM SIZE - 5+ MEM KIDS - ANY < START UP FAMILIES EMPTY NEST COUPLES SENIOR COUPLES RACE - CAUCASIAN

Depth There is a lot of competition going on in apple sauce This can be seen in the amount of shelf space awarded to the leading brands and private label Musselman’s is the leading brand with the most shelf space Then Private Label is second, ahead of the other leading brand – Mott’s The following table shows the depth analysis results

Apple Sauce Share of Facings Fall 2011 MFR H-FacingWM-FacingT-FacingI-FacingWA-Facing Mott's% of Total Sum % of Total N N Musselman's% of Total Sum % of Total N N Pvt Lbl% of Total Sum % of Total N N91169 Santa Cruz% of Total Sum 0.02 % of Total N 0.04 N 1 Total% of Total Sum1.0 % of Total N1.0 N

Below shows the stocking rates for the leading brands This contributes to the case that Musselman’s is the stronger brand in this area BrandStocking Rate Mott's27.50% Musselman's39%

Gross Margin Percent Private Label is winning the category when it comes to this analysis At the largest retailers, PL shares the more of the Gross Margin Percent than both of the leading brand At the smaller of the major retailers the leading brand, Musselman’s at both, is winning this analysis The results for Gross Margin Percent can be seen on the following slide

Apple Sauce Share of Gross Margins Fall 2011 MFR H-GM%WM-GM%T-GM%I-GM%WA-GM% Mott's% of Total Sum N Musselman's% of Total Sum N Pvt Lbl% of Total Sum N91169 Total% of Total Sum1.0 N

Recommendations Target needs to add more Private Label because the small variety they have now is doing great Musselman’s needs to add an organic line. It would boost the sales a lot especially in this area. The reason for this is the demographics in the area would support another organic line

Conclusion Private Label is in control, but not by much The leading brands, Musselman’s and Mott’s need to lower costs so they can lower prices to compete with Private Label Now is the time for Private Label to take control before the national brands start to retaliate