1. New Product Launch Ground Turkey & Breakfast Sausage Fresh Chubs

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

3. Category

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

5. 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™

6. 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™

7. 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

8. 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

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

10. 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: Nielsen Market Summary

11. 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/ /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: Nielsen Market Summary

12. 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

13. 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

14. Introducing…

15. 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

16. 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

17. Focus Markets

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

19. Pricing

20. 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

21. 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 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

22. Specifications

23. Product Specs 013016 013021 013018 013025 013017 Item Number
Item Description
85/15 Ground Turkey
90/10 Ground Turkey
Breakfast Sausage
Unit UPC
Unit Net Weight
1 lb
3 lb
Unit Tare Weight
0.01
Units per Case 12 6
Case UPC
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

24. Appendix

25. 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.