Selling Lobster in the U.S. Opportunities and Challenges U.S. Restaurant Industry ATLANTIC LOBSTER SUMMIT HALIFAX, NOVA SCOTIA October, 2007

Opportunities in the U.S. Market

Darden Restaurants, Inc.

Not Only at Red Lobster… Lobster Spaghetti Lobster & Shrimp Pasta

1 st Red Lobster Lakeland, Florida

Red Lobster Lobster Menu Offerings

Lobster Fest

Food & Beverage Spending Other $12 Billion 1% Other $12 Billion 1% Food at Home $778 Billion 61% Food at Home $778 Billion 61% Restaurant Sales Away from Home $314 Billion Restaurant Sales Away from Home $314 Billion $1.3 Trillion Commercial Away from Home $491 Billion 38% Commercial Away from Home $491 Billion 38% Other Sales Away from Home $177 Billion Other Sales Away from Home $177 Billion

2006 U.S. Restaurant Industry Sales $314 Billion Source: CREST & USDC Quick Service Mid-ScaleMid-Scale Casual Dining Fine Dining

U.S. Restaurant Growth Source: National Restaurant Association 2007 Restaurant Industry Forecast 60% Increase in Last 10 Years Restaurant Industry Sales (Billions of Current Dollars) 935,000 restaurants will hit $536.9 billion in sales in 2007

2006 U.S. Restaurant Industry Sales $314 Billion Source: CREST & USDC Mid-Scale$50B16% Average Meal Price $9Mid-Scale$50B16% Quick Service $181B58% Average Meal Price $5 Quick Service $181B58% Average Meal Price $5

2006 U.S. Restaurant Industry Sales $314 Billion Source: CREST & USDC Casual Dining $68B 21% Average Meal Price $15 Casual Dining $68B 21% Average Meal Price $15 Darden 8% Share of Casual Dining Fine Dining $15B5% Average Meal Price $30 Fine Dining $15B5% Average Meal Price $30 Mid-Scale$50B16% Average Meal Price $9 Quick Service $181B58% Average Meal Price $5

Opportunities in the U.S. Restaurant Industry

U.S. Lobster Market Source: National Marine Fishery Service

North American Clawed Lobster Production 1982 – 2007 Metric Tons

Florida/Caribbean/Brazil Lobster Production Western Hemisphere Metric Tons

Spiny Lobster Stock Status Status of StockCountries Under ExploitedVenezuela (some areas) Fully-exploited or stable Puerto Rico & Virgin Isles; Turks and Caicos; U.S.A., Belize; Mexico, Costa Rica; Cuba; Antigua & Barbuda; Venezuela (some areas) Over-ExploitedNicaragua; Jamaica; Dominican Republic; Brazil; Colombia; Honduras UnknownMartinique; Guadalupe; Haiti; Bahamas; other Lesser Antilles countries Regional Workshop on the Assessment and Management of Caribbean Spiny Lobster (Panulirus argus)

Global Seafood Procurement… Not Without Controversy

Darden Environmental Trust

Global Aquaculture -- Darden Actions

Seafood Guides – United States Audubon Society ( Blue Ocean Institute [Seafood MiniGuide: Monterey Bay Aquarium [Seafood Watch Pocket Guide: Environmental Defense [Seafood Selector: NRDC [Mercury in Fish: Shedd Aquarium [Rite Bite Seafood Wallet Card: Wildlife Conservation Society [Go Fish card: Steinhart Aquarium [California Academy of Sciences Seafood Guide: ECHO Fund [Seafood Surveillance Card: Eartheasy [Sustainable seafood guide: Physicians for Social Responsibility [Guide to Healthy Fish: Organic Styles [Seafood Shopping List: Eating Well [The Essential Eating Well Seafood Guide: ww.eatingwell.com] Purdue University [Fish for Your Health:

Standards/Certification Programs

Proposed Solutions -- Short Term The Role of International Organizations Companies in the United States, Japan, European nations, and other developed nations work to reduce number of standards. –Effort should be led by international organizations such as the Food and Agriculture Organization of the United Nations

Proposed Solutions -- Long- Term The Role of Governments Consumer facing companies, production companies, and supply chain companies should petition their respective governments to enhance national laws pertaining to environment and social justice –For emerging nations, credibility of their laws and their enforcement is key to government supplanting private standard setting organizations Partnerships can be developed with stakeholders, such as non-governmental organizations to avoid negative impacts on ecosystems, communities, and other unplanned activities

Summary of Market Opportunities and Challenges The Casual Dining and Fine Dining segments of the U.S. restaurant industry will continue to grow Increasing sales to the Casual Dining segment will require creative approaches where the average meal price is $15.00 A static Western Hemisphere lobster resource is an opportunity tempered by consideration for consumers price sensitivity for restaurant meals Industry needs to address growing media attention to food safety, resource management and sustainability