1. A Summary Update of the Irish Grocery Market to 26 December 2010

2. Grocery Performance Summary
The Grocery market continues to show value growth, the latest quarter shows market value growth of +2.1% year on year.
Price inflation continues to be the key driver of this return to growth, standing at just under +4%.
Branded vs. Private Label: Private label performance has dropped back this period as compared to the 12 weeks to November as consumers move back to branded for the holidays. Overall the trend continues to be upwards as the private label value share of the Irish grocery market is up almost one point compared to same period last year.

3. 4 weekly trended YoY Growth
How has the grocery market performed this year? We continue to see growth for the grocery market over shorter periods.
4 weekly trended YoY Growth
Source: Kantar Worldpanel Data to 4w/e 26th Dec 2010
KANTAR WORLDPANEL: 4 W/E 26TH DEC 2010

4. HOW IS THE TOTAL GROCERY MARKET PERFORMING? 52 & 12 w/e 26th Dec 2010
Annual Performance
Quarterly Performance
-3.5%
-2.3%
-6.8%
+2.1%
52 we €000’s
12 we €000’s
Source: Kantar Worldpanel Data to 52 & 12 w/e 26th Dec 2010

5. HOW IS THE TOTAL GROCERY MARKET PERFORMING
HOW IS THE TOTAL GROCERY MARKET PERFORMING? 4 W/E 4 w/e 26th Dec The total grocery market has improved performance on last year in the 4 week run up to Christmas.
4 we €000’s
-7.5
+3.4%
Source: Kantar Worldpanel Data to 4w/e 26th Dec 2010

6. WHICH SECTOR IS DRIVING QUARTERLY MARKET GROWTH
WHICH SECTOR IS DRIVING QUARTERLY MARKET GROWTH? 12 w/e 26th December 2010 – The food categories continue to see strong value growth while healthcare suffers
Value share
% Value change
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

7. HOW IS TOTAL FOOD PERFORMING
HOW IS TOTAL FOOD PERFORMING? 52 & 12 w/e 26th Dec Food continues to see growth over the shorter term, driven by Ambient.
-2.0%
- 2.0%
-6.0%
3.0%
52 we €000’s
12 we €000’s
Source: Kantar Worldpanel Data to 52 & 12 w/e 26th Dec 2010

8. HOW IS THE FOOD MARKET PERFORMING ON TRENDED BASIS
HOW IS THE FOOD MARKET PERFORMING ON TRENDED BASIS? % VALUE GROWTH VS LAST YEAR, 12 WEEKLY TRENDED
Source: Kantar Worldpanel Data to 12w/e 26th Dec 2010

9. WHICH SECTOR IS DRIVING MARKET VOLUME (PACK) GROWTH
WHICH SECTOR IS DRIVING MARKET VOLUME (PACK) GROWTH? 12 w/e 26th December 2010 – We are seeing some growth for ambient and frozen as they recover slightly in pack sales over the Christmas period
Volume share (Pack)
Volume (Pack) change
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

10. % Value Sold on Deal in Total Grocery, €
Promotional activity is beginning to pick up again but remains behind the Christmas period last year.
% Value Sold on Deal in Total Grocery, €
Source: Kantar Worldpanel Data to 12w/e 26th Dec 2010

11. Private Label Share of Grocery
Private label value share declining in latest 12 week period, while pack share continues to rise to its highest point in two years
Private Label Share of Grocery
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010 13

12. WHERE IS PRIVATE LABEL STRONG?
46.5%
Private Label Spend % 12 w/e 26 Dec 10
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

13. Market Growth & Inflation Inflation has come down slightly this period, but value growth continues to improve.
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

14. The number of markets seeing inflation remains high at around 80%
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010 16

15. Change in sales Share of sales
Grocery Volume (Packs) Growth by Price Brand The budget tier continues to see growth as shoppers seek cheaper packs
Growth in Grocery sales (Packs)
Change in sales
Share of sales
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010 17

16. What has been the Effect on Shopper Behaviour?
SHOPPERS CUT BACK THIS PERIOD: SHOPPING LESS OFTEN, BUT MAINTAINING SPEND AT €24 PER TRIP
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

17. More emphasis on Trolley shops In the latest period, shoppers are looking to plan ahead more, instead of smaller top-up shops.
% of spend
4.2%
35.4%
60.4%
1 item
2-9 items
10+ items
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

18. Brief Overview of the UK Market

19. Change in sales Share of sales
UK Grocery Volume (Packs) Growth by Price Brand UK are also seeing an increase in budget products, but we are also seeing an increase in the amount of super premium products bought.
Growth in Grocery sales (Packs)
Change in sales
Share of sales
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010

20. UK Grocery evolution – Inflation and shopper reaction
12 w/e 26 Dec 2010

21. UK Grocery update to 26 Dec 2010
Inflation rate has risen to 3.0 this period and we expect this to continue in the coming periods.
70% of markets are in growth (volume) in the 12 weeks leading up to Christmas.
The average discount is higher in many stores compared to the same time last year.
Households are taking advantage of the increase in promotional activity in the run up to the festive period.
Source: Kantar Worldpanel Data to 12 w/e 26th Dec 2010