New Product Launch Ground Turkey & Breakfast Sausage Fresh Chubs

Category Reviews Market/Account Studies New Offering Focus Markets Pricing Specifications

Category

Fresh Chub Category – Size The Fresh Chub - Ground category consists of 200 million + pounds and over 1 billion dollars in sales Source: AC Nielsen

Category – Ground Beef Chubs 28% of overall ground beef packages are in chub format In Case Ready, chubs represent over 40% share and are growing Source: National Meat Case Study™ - 2007

Category – Ground Turkey Percent of fresh ground turkey chub packaging has increased by 8 points since 2004 While traditional ground turkey packaging (MAP and SSD/SES) are down in overall share due to the increase in chub packaging, both package types are growing in the double-digits in regards to volume from a large base 2004 % of Packages 2007 Ground Turkey MAP 78% 77% SSD/SES 17% 12% PVC Wrap 3% <1% Chub 2% 10% Total 100% Source: National Meat Case Study™ - 2007

Category – Breakfast Ssg Fresh Roll Breakfast Sausage Category is almost 150 million pounds annually and 360 million dollars Jennie-O Turkey Store is outpacing both the roll breakfast sausage and turkey breakfast sausage categories in year on year growth Source: AC Nielsen

Category – Why Jennie-O? Why does Jennie-O Turkey Store make sense? Most widely recognized brand in fresh ground turkey with the highest distribution nationally at 50% Share leader in both volume and dollar sales Jennie-O Turkey Store brand commands a higher price point at shelf, generating 35% of the category dollar sales with only 31% of the volume Source: AC Nielsen

Market / Account Studies Will the addition of fresh chubs affect fresh tray pack sales?

An AC Nielsen market study found that… Tray Buyers are more loyal to package form Tray Buyers meet 87% of their fresh ground turkey purchases with trays while Chub Buyers only meet 50% of their fresh ground turkey purchases with chubs There is an 8% Buyer Overlap of Tray and Chub Buyers, but perhaps more important is that: Only 9% of Tray Buyers also buy chubs While 49% of Chub Buyers also buy trays Loyalty and Cross Purchase interactions of tray and chub suggests that Chub Buyers are more likely to trade up to trays than Tray Buyers are likely to trade down to chubs Source: 2008 Nielsen Market Summary

An AC Nielsen market study found that… There is an 8% Buyer Overlap of trays and chubs 9% of Tray Buyers also buy chubs (1,337 / 15,373) 49% of Chub Buyers also buy trays (1,337 / 2,745) TOTAL U.S. - 09/30/07 - 09/27/08 Buying Households (000) % Buyers Fresh Ground Turkey - Tray Pack 15,373 92% Fresh Ground Turkey - Chub 2,745 16% Fresh Ground Turkey - Tray OR Chub 16,781 100% Fresh Ground Turkey - Tray AND Chub 1,337 8% Fresh Ground Turkey - Tray EXCLUSIVE 14,036 84% Fresh Ground Turkey - Chub EXCLUSIVE 1,408 15,373 Tray Buyers 2,745 Chub Buyers 1,337 Tray and Chub Buyers 8% Overlap Source: 2008 Nielsen Market Summary

Market Study – Los Angeles How will the addition of ground turkey chubs affect your fresh turkey tray pack sales? For the past 3 years, LA has been growing fresh ground turkey sales by 12 – 16% per year With the introduction of fresh ground turkey chubs, sales of tray pack have maintained a 16% growth over prior year The top 10 ground turkey chub markets are growing both chubs and tray pack vs. year ago numbers, with 7 of those 10 growing tray pack by double-digits Cannibalization of traypack was not seen, indicating new consumers are being brought into the category Source: AC Nielsen

Account Study 40+ Store Account - Midwest How will the addition of ground turkey chubs affect your fresh turkey tray pack sales? Fresh Ground Turkey has grown 22 % in the past 52 weeks at this account Fresh chubs are up 83%, while fresh tray pack has continued to grow in the double-digits With one fresh chub item, Jennie-O has a 25% share of the chub sales, while maintaining a 12% growth in tray pack ground items Source: AC Nielsen

Introducing…

Jennie-O Turkey Store’s new Fresh Chub Line 85/15 Ground Turkey 1 lb 85/15 Ground Turkey 3 lb 90/10 Ground Turkey 1 lb 90/10 Ground Turkey 3 lb Turkey Breakfast Sausage 1 lb Available in the most popular ground beef chub sizes; one pound and three pound Varying fat percentages to meet consumers needs

Jennie-O Turkey Store’s new Fresh Chub Line Eye-appealing graphics and appetite shots differentiate Jennie-O ground turkey from ground beef Shelf dividers and rail strips help set the items apart and grab shoppers attention

Focus Markets

Development Index Matrix Fresh Meat - Chubs Fresh Ground Turkey Source: AC Nielsen – 52 weeks ending 9/20/08

Pricing

Ground Beef & Turkey Pricing Ground beef pricing, total US, is averaging $3.88/lb for 85/15 and $3.98/lb for 90/10 Source: Perishables Group data 13 w/e 6/28/08 Jennie-O Turkey Store ground turkey tray pack pricing is averaging $2.92 and $3.57 per pound for 85/15 and 93/7 respectively for total US in the past 12 weeks Source: AC Nielsen

Chub Line Pricing & Comparison Item Description 85/15 Ground Turkey 90/10 Ground Turkey Breakfast Sausage Unit Size 1 lb 3 lb List Price / LB $1.53 $1.48 $1.75 $1.70 $1.65 List Price / Unit $4.44 $5.10 List Price / Case $18.36 $26.64 $21.00 $30.60 $19.80 Retail Price @ 40% per LB $2.55 $2.47 $2.92 $2.83 $2.75 per Unit $7.40 $8.50 Ground Beef Pricing 6/29/08 85 – 89% = $3.88/lb 90 – 95% = $3.98/lb 52% higher than chub SRP 36% higher than chub SRP Ground Turkey TP Pricing 9/20/08 85/15 = $2.92/lb 93/7 = $3.57/lb 14% higher than chub SRP 22% higher than chub SRP

Specifications

Product Specs 013016 013021 013018 013025 013017 Item Number Item Description 85/15 Ground Turkey 90/10 Ground Turkey Breakfast Sausage Unit UPC 0 42222 13016 5 0 42222 13021 9 0 42222 13018 9 0 42222 13025 7 0 42222 13017 2 Unit Net Weight 1 lb 3 lb Unit Tare Weight 0.01 Units per Case 12 6 Case UPC 100 42222 13016 2 100 42222 13021 6 100 42222 13018 6 100 42222 13025 4 100 42222 13017 9 Case Net Weight 12 lb 18 lb Case Gross Weight 12.99 lb 18.99 lb Case Dimensions 14.9 x 7.1 x 5.3 13.1 x 10.1 x 6.6 Case Cube 0.3258 0.504 Pallet Ti x Hi 15 x 5 = 75 11 x 8 = 88

Appendix

Package Term Definitions MAP: Modified Atmosphere Package in tray + lid application, can be high oxygen or low oxygen atmosphere. Most often high oxygen. SSD/SES: (Cryovac terminology) used in many poultry applications. SSD is a flap seal that looks similar to PVC. SES is a three way beaded seal. Both can be printed. BDF: Barrier “D” film (Cryovac terminology), used primarily in case ready turkey packaging. Film totally encases a foam tray. PVC: Poly Vinyl Chloride, used most often in store wrapped meat products. Can be used in case ready applications with master pouch in either high or low oxygen applications. Chub: Ground meat in 1, 3, 5 or 10 pound vacuum packages.