Bacon Audit Fall, 2013 Mitchell Wayman Boe Armstrong

A.C. Nielsen Product Snapshot For Total Consumption of Fresh Meat TOTAL FRESH MEAT (FRESH MEAT) OZ. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural LivingTotal Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Bacon Brand Demographics FarmlandTysonHormelCorn KingPrivate label Demographic Variables % VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex Race of Head of Household White 79.8% %7568.3%9981.8% %99 Black 3.6%3023.8%1987.1%593.5%2914.0%117 Hispanic 11.2%9116.4% % %8714.2%115 Asian 3.1%735.5%1272.4%562.0%462.0%47 Other 2.3%1042.8%1291.4%632.0%921.5%70 Household Income Under $10, %1278.9%1125.8%7313.7%1738.0%101 $10,000 - $19, % % % % %92 $20,000 - $29, % %9619.7% % %110 $30,000 - $39, % % % % %113 $40,000 - $49, %1108.8%955.4%588.9%969.2%99 $50,000 - $74, % % %5716.7%9219.3%107 $75,000 - $99, %7910.0%8510.4%896.7%5712.3%105 $100,000 - $149, %6310.2%899.8%864.8%4210.3%90 $150,000 or More 3.4%427.1%889.1%1121.2%145.9%73

Bacon Category Role

Category Assessment: Stores Audited StoreLocationSKUsUnique SKUs*Audited by SupercenterJoyce Blvd381Boe SupercenterMLK Blvd (6 th )5912Mitchell Neighborhood MarketMission250Mitchell WalgreensS School Ave21Boe & Mitchell Harp’sElkins303Boe & Mitchell Harp’sMission323Boe Marvin’s IGA15 St546Boe & Mitchell Marvin’s IGALafayette246Boe & Mitchell Complete Audit 9732 Slide “D”

Bacon Share of Display Manufacturer Walmart 6th St Facings WalMart Joyce Blvd Facings Harps Elkins Facings Harps Mission Facings WalMart NMkt Mission Facings Farmland FoodsN44691 % of Total Sum7.0%10.3%23.3%29.4%4.2% % of Total N7.1%10.5%22.2%29.0%4.2% HormelN % of Total Sum21.1%23.1%13.3%17.6%25.0% % of Total N19.6%23.7%14.8%19.4%25.0% KraftN % of Total Sum24.6%20.5%10.0%11.8%25.0% % of Total N25.0%18.4%11.1%12.9%25.0% Petit Jean MeatsN44333 % of Total Sum7.0%10.3%10.0%11.8%12.5% % of Total N7.1%10.5%11.1%9.7%12.5% TysonN % of Total Sum17.5%20.5%36.7%23.5%16.7% % of Total N17.9%21.1%33.3%22.6%16.7% Wal-MartN116 4 % of Total Sum19.3%15.4% 16.7% % of Total N19.6%15.8% 16.7% WilliamsN2 22 % of Total Sum3.5% 6.7%5.9% % of Total N3.6% 7.4%6.5% TotalN % of Total Sum100.0% % of Total N100.0%

Bacon, Fall 2013: Market Stocking Rates Number of Stores Carrying Total MSR Private Label Manufacturer Williams Tyson Hormel Kraft JC Potter Petit Jean Farmland Total

SPSS % Gross Margin Dollars Manufacturer Walmart 6thSt $Gross Margin WalMart Joyce Blvd $Gross Margin Harps Elkins $GrossMargin Harps Mission $Gross Margin WalMart NMkt Mission $GM Farmland Foods% of Total Sum4.7%7.5%16.7%18.0%2.2% % of Total N7.1%10.5%22.2%30.0%4.2% N44691 Hormel% of Total Sum21.2%24.2%7.9%18.0%23.2% % of Total N19.6%23.7%14.8%20.0%25.0% N Kraft% of Total Sum22.8%15.1%11.8%15.0%21.2% % of Total N25.0%18.4%11.1%10.0%25.0% N Peit Jean Meats% of Total Sum8.2%12.2%15.0%14.8%12.8% % of Total N7.1%10.5%11.1%10.0%12.5% N44333 Tyson% of Total Sum18.1%21.3%37.9%23.6%20.8% % of Total N17.9%21.1%33.3%23.3%16.7% N Wal-Mart% of Total Sum20.1%19.7% 19.8% % of Total N19.6%15.8% 16.7% N116 4 Williams% of Total Sum4.9% 10.7%10.6% % of Total N3.6% 7.4%6.7% N2 22 Total% of Total Sum100.0% % of Total N100.0% N

Mean % Gross Margins for Stores with Deepest Assortments

Demography Reference#359#177#2745#144 % HHs HHs Index % HHs HHs Index % HHs HHs Index % HHs HHs Index % HHsHHs Index Race of Head of Household White 69.2% % % % %106 Black 12.0% % 214.8%264.8%364.4%199 Hispanic 12.4% % %739.2%745.3%50 Asian 4.3% % 82 N/A 6.5%773.2%105 Other 2.2% % % % %60 Under 10, %1008.4% % % %163 $10,000 - $19, % % % %1669.6%129 $20,000 - $29, % % % % %117 $30,000 - $39, % % % % %106 $40,000 - $49, %1009.6%1038.4%898.4%9512.8%82 $50,000 - $74, % % %7313.0%7214.3%79 $75,000 - $99, %1009.8%847.3%667.3%627.5%78 $100,000 - $149, %1009.5%8411.1%6511.1%596.9%83 $150,000 or More 8.1%1005.6%69 N/A 2.9% 692.4%102

Comparing Prior Bacon Audits #SKUsPrivate Label SKUsAvg. Unit Cost Fall Fall Depth of assortment was reduced slightly across similar stores while the number of private label SKUs increased drastically. This could be due to Wal-Mart wanting to be more competitive in the fresh meats market.