Customer Presentation January 2013

2  Company Information  Consumer Research  Licorice Category Performance  Lucky Country® Proposal Meeting Agenda

3  Lucky Country Inc. is the leading manufacturer of Australian style soft licorice in North America  Began importing soft licorice into the U.S. from Australia in 2000  Established U.S. manufacturing operations in Lincolnton, North Carolina in 2005  Lucky Country® products are known for their soft texture and bold flavor profile  Available in multiple flavors including Traditional Black, Strawberry, Cherry, Apple & Pineapple  Package sizes ranging from 4oz to 1.5lbs to meet every consumer usage occasion Company Information

4 Consumer Research - Licorice Category

Age - Licorice Consumption The sweet spot appears to be consumers age Heavy n=210 Moderate n=358 Infrequent n= 236 Source: Brand Benchmark & Consumer Insights Study, March 2012

Gender - Licorice Consumption Slightly more males tended to be Heavy consumers of licorice while more Infrequent users were female. Heavy n=210 Moderate n=358 Infrequent n= 236 Source: Brand Benchmark & Consumer Insights Study, March 2012

Channels – Licorice Consumption Grocery and mass merchandisers are the dominant purchase venues. n=804 Source: Brand Benchmark & Consumer Insights Study, March 2012

Drivers – Licorice Consumption Taste and texture are the two dominant decision drivers. n=804 Source: Brand Benchmark & Consumer Insights Study, March 2012

Flavor Preferences - Top-3 Shown Strawberry is the #1 flavor followed by black, then cherry. n=804 Source: Brand Benchmark & Consumer Insights Study, March 2012

Frequency - Aussie vs. Standard The Aussie consumer is a “licorice enthusiast” with 75% consuming licorice at least 2-3 times per month Aussie n=82 Standard n=722 Source: Brand Benchmark & Consumer Insights Study, March 2012

11 Licorice Category Performance

Licorice Category Overview $ Sales Chg vs. YAG Source: Nielsen - Licorice Category - Total U.S XAOC - Ending 12/22/12 Lucky Country® Soft Licorice is driving growth in the category … +0.8% +37.9% +1.2% +34.2%

Licorice Category Overview Average Unit Price Source: Nielsen - Licorice Category - Total U.S XAOC - Ending 12/22/12 …And increasing penny profit and register ring! $1.96 $2.72 $1.94 $2.58

14 Lucky Country® Proposal

15 Lucky Country® - Flavor Ranking #1Black #2Strawberry #3Cherry #4Apple #5Pineapple

16 Lucky Country – Package Sizes & Flavors 4oz Peg Bags $1.49 SRP 6oz Peg Bags $1.99 SRP 8oz Gusset Bags $2.59 SRP 1.5lb Gusset Bags $6.99 SRP Immediate Consumption Moderate Consumption Heavy Consumption

17 Lucky Country® Proposal Products 6oz Black 6oz Strawberry 6oz Cherry 6oz Apple 6oz Pineapple Retail Price Price/Ounce Unit Cost Margin Permanent Distribution

18 Lucky Country® Proposal Products 7.2oz Black 7.2oz Strawberry 7.2oz Cherry Retail Price Price/Ounce Unit Cost Margin Promotional Program – 20% More Free

19 Appendix

20  An online study was fielded among:  Adults age 18+  Nationwide US geography  Gender split 50/50  Screener: Must be licorice consumers / at least a couple of times per year or more frequently  The research was fielded February 28-March 2, 2012 and yielded a total of 804 completes (goal = 800). Consumer Research Methodology

Nielsen Expanded All Outlet (XAOC) Grocery Channel:148 Different Chains Mass Channel:Walmart, Target, Kmart, Shopko, Alco & Pamida Drug Channel:Walgreens, CVS, Rite Aid, Kinney, Kerr, Discount Drug Mart, White, Bartell & USA Drug Dollar Channel:Dollar General, Family Dollar & Fred’s Club Channel:Sam’s & BJ’s Data Suppliers