Breakfast Opportunity Sam’s Club Deep Dive

Sam’s Club Current Offerings

Sam’s Club Frozen Breakfast SAVORY Frozen Breakfast Products* Item # Count Ounce Retail $/Count $/Ounce Star Rating Status Hot Pockets Breakfast Sandwiches 755147 13 52 $ 8.98 0.69 0.17 N/A A Owens Tacos (Sausage, Egg, and Cheese) 17791 24 57.6 9.98 0.42 N Jimmy Dean Snack Size Sausage Biscuits 496939 36 61.2 10.78 0.30 0.18 Jimmy Dean Biscuit Sandwich (Sausage, Egg, and Cheese) 452889 12 54 0.83 Jimmy Dean Sausage and Cheese Croissant 778 10.68 0.89 0.20 Jimmy Dean Delights Turkey Sausage Muffin Sandwiches 943979 11.98 1.00 Jimmy Dean Pancakes and Sausage 126124 18 45 8.98 0.50 Jimmy Dean Biscuit Sandwich (Bacon, Egg, and Cheese) 475888 43.2 0.90 0.25 Great Day Kolache Sausage Rolls 34431 20 40 0.53 0.27 *All listed products based on availability in Bentonville, AR Club

Sam’s Club Frozen Breakfast SWEET Frozen Breakfast Products Item # Count Ounce Retail $/Count $/Ounce Star Rating Status Kellogg's Eggo Homestyle Waffles 909303 60 74.1 $ 8.98 0.15 0.12 N Kellogg's Eggo Blueberry Waffles 152365 8.98 N/A A FarmRich Cinnamon Sprinkle French Toast Sticks 877045 55-62 52 5.98 0.11 Pillsbury Toaster Strudel Variety Pack 11342 24 46 0.25 0.13 Pillsbury Mini Pancakes Maple Burst'n 440004 16 50.7 0.56 0.18   14 TOTAL Current Products in Frozen Breakfast Category

Closer Look - Current Products Eggo Homestyle Waffles Eggo® Homestyle waffles toast up golden brown with a light, crispy texture and a wonderfully classic taste — making them a delicious way to start your day! Quantity: 6 – 10 packs Retail: $8.98 Customer Reviews: 3 Pro: Convenient and inexpensive Con: Need more flavor options Eggo Blueberry Waffles They have a light, crispy texture and the perfect amount of blueberry flavor to give every day a berry-good start! Quantity: 6 – 10 packs Retail: $8.98 Customer Reviews: 0

Closer Look – Current Products Farm Rich Cinnamon Sprinkle French Toast Sticks Made with whole white wheat and contain 0g trans fat per serving. Its fortified with 11 vitamins and minerals and is an excellent source of calcium! Retail: $5.98 Quantity: 55-62 Customer Reviews: 4 Pro: Quality product, Inexpensive Con: None Pillsbury Toaster Strudel Variety Pack Convenient fruit-filled toaster pastries are great from the freezer to the toaster. Variety Pack Includes: 12 Strawberry and 12 Apple Retail: $5.98 Quantity: 24 Customer Reviews: 0

Closer Look – Current Products Pillsbury Mini Pancakes Maple Burst’n Delicious microwavable, pre-flavored mini pancakes in a ready to serve pouch Retail: $8.98 Quantity:16 individual packages Not listed online in Bentonville club Exclusive Club Product Customer Reviews: 1 Hot Pockets Breakfast Sandwich Made with premium bacon, low fat cheese and real scrabbled eggs with sauce in a flaky crust Retail: $8.98 Quantity:13 (Value pack) Individually wrapped, 13 – 4 oz. sandwich Customer Reviews: 0

Closer Look – Current Products Jimmy Dean Delights Turkey Sausage Muffin Sandwich Fully cooked and made with whole grain muffin, turkey sausage patty, egg white and cheese. Delights™ sandwiches are a 1/3 fewer calories and 1/2 the fat compared to the leading breakfast sandwich Retail: $11.98 Count: 12 Only clear healthy option Reviews: 20 Pro: Quality, healthy, great buy Con: Poor cooking instructions Jimmy Dean Sausage, Egg and Cheese Croissant A delicious combination of Jimmy Dean Sausage and a flaky croissant along with eggs and cheese to make a great sandwich Retail: $10.68 Count: 12 Reviews: 8 Pro: Inexpensive Con: None

Closer Look – Current Products Owens Tacos (Sausage, egg, and cheese) Individually wrapped and microwaveable sausage, egg, and cheese tacos Retail: $9.98 Quantity: 12 – twin packs Customer Reviews: 1 “Decent breakfast, decent price” Jimmy Dean Snack Size Sausage Biscuits A hot breakfast sandwich featuring delicious Jimmy Dean® sausage on a biscuit. This pack includes 36 sausage biscuits: Individually wrapped twin packs Retail: $10.78 Quantity: 18 – twin packs Only snack size savory item Customer Reviews: 2 Pro: Quick fix Con: Price

Closer Look – Current Products Jimmy Dean Sandwich (Bacon, egg, and cheese) 12 individually wrapped bacon, egg, and cheese biscuits Retail: $10.78 Quantity: 12 Customer Reviews: 1 “Excellent product. Great for those days, when I or my husband want bacon, instead of sausage” Jimmy Dean Pancakes and Sausage Jimmy Dean full-flavored sausage inside a sweet pancake covering: microwave for less than two minutes Retail: $8.98 Quantity: 18 individually wrapped Combines sweet and savory Customer Reviews: 6 Pro: Portable, tasty Con: Hard to find

Closer Look – Current Products Jimmy Dean Biscuit Sandwich (Sausage, egg, and cheese) Made with flavor fill Jimmy Dean sausage patty, egg and cheese on a fluffy biscuit Retail: $9.98 Quantity: 12 Customer Reviews: 5 “The folks in my office love these sandwiches. The sausage is very good and it's a good value.” Great Day Kolache Sausage Rolls 20 smoked sausage with cheddar baked in a roll Retail: $10.68 Quantity: 20 New Packaging – Not listed online in Bentonville club Customer Reviews: 5 Pro: Delicious, quality Con: Quantity

Schwan’s Opportunity

Opportunity Current “White Space” Best Options Volume Potential Breakfast Pizza Value Breakfast Items Best Options Red Baron Scrambles or Red Baron Breakfast Minis Tony’s or Private Label – to capture value option Possible Schwan’s offerings: Mega Pouches Biscuit Sticks Pancake and Sausage Bites Toastwich Volume Potential Test: $250,000 (assuming 100 club test for 3 months) Annual – all clubs: $7.5MM (assuming $300/club)

Closer Look – Future Product Options Red Baron Scrambles 8ct. Bacon or variety Pack Cost: $7.24/unit or $.90/pz Retail: $8.89 = 20% value to WM retail of $2.78 / 2 pack ($1.39 ea) $1.11 per piece and $.20/oz Most expensive on a $/count basis in category On par with Jimmy Dean on a $/oz basis Red Baron Mini Scrambles 30ct. Bacon and Egg (10 – 3 count packs) Cost: $6.50 Retail: $7.98 retail = 20% value to dollar channel $.798 per piece (3pk) and $.196/oz Slightly below Jimmy Dean Biscuit sandwich on a $/count basis. On Par with Jimmy Dean on a $/oz basis

Closer Look – Future Product Options Tony’s Mega Pouch 10ct. Bacon Egg and Cheese Cost: $6.50 Retail: $7.98 retail = 20% value to dollar channel $.798 per piece (3pk) and $.09/oz Slightly below Jimmy Dean Biscuit sandwich on a $/count basis. $.10 above hot pocket. Lowest in category on a $/oz basis Other Opportunities Biscuit Sticks Pastry Sticks Pancake and Sausage Bites Toastwich

Schwan’s Past Offerings

Appendix

Red Baron Singles Breakfast Solution Red Baron breakfast fulfills consumer needs Consumers are looking for quick meals for breakfast Consumers are looking for variety of options that provide a complete breakfast meal (a protein & a starch) Red Baron pizza with a twist! Red Baron has taken the pizza dough crust that consumers love and added breakfast toppings to fill the breakfast occasion . Red Baron is a trusted brand name Red Baron is recognized by 91% of households* Consumers trust Red Baron quality Source: AAU Study May 2009

Red Baron Singles Breakfast Details Product Description: Red Baron Single Serve Breakfast Scrambles are biscuit style deep dish crusts topped with scrambled eggs, 100% real cheeses and high quality meats. There are three varieties available and each package contains two 5” Scrambles. Western WM item number 9120714 Sausage WM item number 9120693 Bacon WM item number 9120686 Best Selling in WMT! Current Wal-Mart EDLP: $2.96 $/count – 1.48 $/ounce - .30

Biggest Competitor Jimmy Dean Products New Non-club Breakfast Product (Currently in grocery) Launched March 1, 2012 Two Options Sausage Delights turkey sausage 2 Count package: $3.99

Industry Statistics Dollar Sales: Total Frozen Breakfast Foods: $1,583,927,773 Frozen/Refrigerated Breakfasts: $830,571,676 Frozen Waffles/Pancakes, French Toast: $753,356,097 Sales Units: 545,631,083 244,014,661 301,616,422 Source: Nielsen; data for the 52 weeks ending Nov. 26, 2011, for U.S. food stores with at least $2 million in sales (excluding supercenters)