1. JENNIE-O TURKEY STORE® 2013 Breakfast Strategy

2. Agenda
Brand Overview
Breakfast Trends & Vision
Products
Support

3. Brand Overview

4. Who We Are Our Brand Mission
We believe that eating well shouldn’t come at the expense of taste.
Our Brand Mission
Jennie-O is on a mission to show people that turkey is as lean as it is delicious.
Using our bold MAKE THE SWITCH™ theme, we’re asking people to switch to turkey in their favorite foods.

5. Our Consumer: The “Good Intender”
Demographics
Personality
W 25-54
Affluent
HHI $60K+
Likely to have graduated college
Works on a part-time basis
Principal shopper in a large HH (3 - 5+)
65% have children, typically several
Have good intentions but find it hard to make good choices when it comes to eating better
Cook meals frequently
Trying to eat healthy and watch their nutrition
78% will recommend a food product she likes to friends
Source: MRI Doublebase 2010

6. Value of Our Consumer
The Good Intender spends almost twice as much at checkout when we are in the basket.
Source: Nielsen Market Basket Study, Aug 2007

7. Growing Penetration
We continue to bring new consumers to the category by consistently increasing Household Penetration and are the brand driving the growth in the category
Source: Nielsen, Market Summary Data, Sept 2011

8. Breakfast Trends and Vision

9. Consumer Trends
‘Good Intenders’ are seeking healthy breakfast options at home
62% of women believe that breakfast is the most important meal of the day
Individuals from households with children are much more likely to have pro-breakfast attitudes
54% of adults say they’d like to eat breakfast everyday only, but only 34% do
Affluent households are slightly more likely to indicate that they read labels on breakfast foods before purchase
Source: Mintel Report, Breakfast Entrées and Sandwiches, U.S., November 2010

10. Consumer Trends
There’s still opportunity to make good breakfast more convenient:
Home is where breakfast happens
76% of breakfasts are eaten at home
Roughly half of breakfasts eaten at work or on-the-go are prepared at home
We only spend 15 minutes eating breakfast vs. 30 for lunch and 25 for dinner
90% of people who skip breakfast treat themselves to a snack
The greatest gains in the breakfast food category have been realized by products that promise a ‘Better-for-You’ alternative
Source: Mintel Report, Breakfast Entrées and Sandwiches, U.S., November 2010

11. Foodservice Trends
‘Good Intenders’ are seeking healthy breakfast options out-of-home
66% of restaurant diners are interested in healthier breakfast options*
• 39% of consumers who eat breakfast out say healthy breakfast options are the “most important” factor in selecting a breakfast venue*
• 39% of consumers say breakfast options available at their local eateries are too unhealthy*
• 29% of turkey consumers say they would likely order breakfast sandwiches featuring turkey sausage or turkey bacon**
Source: *Mintel; **Technomic 11

12. Vision: Build a Breakfast Billboard
Establish Anchors:
Today - January
Build Out Set:
February - July
Innovate: Additional items coming soon!
August

13. Establish Anchors

14. Gaining Share – Nielsen 4wks ending 11/10/12
Bacon
Key Attributes
New resealable package
Improved flavor
60% less fat and sodium than USDA data for pork bacon
Only 130mg sodium
Gaining Share – Nielsen 4wks ending 11/10/12

15. SOURCE: AC Niielsen 52 Week Data Ending 10/13/12
Turkey Breakfast SSG
Jennie-O is the category leader in turkey breakfast sausage – Links, Patties, and Rolls
SOURCE: AC Niielsen 52 Week Data Ending 10/13/12 15

16. Breakfast Sausage Opportunity: Turkey’s share of bacon = 6%
Turkey’s share of FC sausage = 29%
Turkey’s share of fresh sausage = 3%
Potential Fresh Sausage:
Increase Share to 6%: $81 MM
Increase Share to 15%: $203 MM
SOURCE: AC Niielsen 52 Week Data Ending 10/13/12 - $ Vol Share for XAOC

17. 16oz Fresh Breakfast Sausage Rolls
Until now, fresh turkey roll sausage had limited opportunity in the fresh breakfast set due to short shelf life…
Sausage Roll Key Attributes
30 days guaranteed to first receiver
High Pressure Processed (HPP)
Available in Hot and Mild
Lean – 90/10
Case Pack: 12
Opportunity: Until now, fresh turkey roll sausage had limited opportunity in the fresh breakfast set - Short shelf life was causing high shrink, which resulted in limited distribution

18. 16oz Fresh Breakfast Sausage Rolls
Consumers are looking for ways to eat better without the sacrifice. JENNIE-O® Turkey Sausage Rolls provide that solution at a great value!
Unit / Serving Size
16oz / 56g
12oz / 56g
Retail Price / Lb*
$3.24
$5.26
$3.99
Calories
110
140
180
Fat 6g
10g
15g
Saturated Fat
1.5g
3.5g 5g
Sodium
570mg
330mg
420mg
Protein
14g
Reduced Fat Item: 50% less fat than regular pork sausage
SOURCE: Jimmy Dean consumer website 11/18/12
*SOURCE: Nielsen Base Price / Lb Total US – 8wks ending 11/10/12

19. Stage 2: Build Out Set

20. Fully-Cooked Links and Patties
Precooked is growing as consumers look for convenient and fast morning proteins
*Total Breakfast Sausage – All Proteins
$Vol % Share of Breakfast Category by Protein
Turkey is a key component of precooked success
6 of the top 20 precooked skus are turkey
SOURCE: AC Niielsen 52 Week Data Ending 11/10/12

21. Fully-Cooked Links and Patties
Key Attributes:
Fully-Cooked / Refrigerated
No preservatives
Lean
High Pressure Processed
Vacuum packed
50 days guaranteed first receiver
9.6oz resealable lid package
#1 recyclable
Link nutrition is same as above – Serving Size = 3 links (68g)
List of Ingredients :
Turkey, Water, Soy Protein Concentrate , Contains 2% or Less Sausage Seasoning (Spices, Sugar, Yeast Extract, Dried Red Pepper), Dextrose, Salt, Natural Flavoring, Sodium Phosphate, Caramel Color.
Contains: SOY
Consumer UPC
Item Description
Size
Case Pack
Unit Width
Unit Height
Unit Depth
Turkey Breakfast Patties
9.6 oz 6
8.35”
5.96”
2.0”
Turkey Breakfast Links

22. Fully-Cooked Links and Patties
Unit / Serving Size
9.6oz / 68g
Retail Unit Price*
$3.99
$4.09
Calories
110
120
Fat 6g 7g
Saturated Fat
2.0g
Cholesterol
40mg
55mg
Sodium
410mg
490mg
Protein
12g
13g
SOURCE: JOTS estimated based on 40% retailer margin. JD based on Nielsen Total US Base Price 8wks ending 11/10/12

23. Fully-Cooked Links and Patties
Dimension Comparison:
Jennie-O: 8”w x 2”d x 6”h
JD Patties: 7.8”w x 1.5”d x 6.3”h
JD Links: 7.8”w x 1”d x 6.3h
Note: The Jennie-O product tilts back but the units stack together on shelf so full utilization of space is still achieved

24. Fully-Cooked Links and Patties
Consumer prefer to purchase refrigerated breakfast meats.
“It is a lot more fresh that way. When it’s frozen who knows how long it has been that way.”
“It looks more appealing when purchased.”
“Because I do not have time in the morning to defrost my frozen breakfast food.”
“Because if frozen it gets freezer burnt and the meat does not taste as good.”
“Because freezing sometimes makes the food taste bad.”
“More simple, seems fresher.”

25. Uncured Bacon Key Attributes: 8oz Zipper Pack Thick-Cut Uncured
All-Natural
Lean 93% Fat Free
List of Ingredients :
DARK TURKEY, SUGAR, VINEGAR, CONTAINS 2% OR LESS SALT, CELERY JUICE POWDER, BAKING SODA, NATURAL FLAVORING, NATURAL SMOKE FLAVORING. NO GLUTEN.
Consumer UPC
Item Description
Size
Case Pack
Unit Width
Unit Height
Unit Depth
Uncured Turkey Bacon
8 oz 16
10”
5.62”
.75”

26. Uncured Bacon
A 3.3MM lb segment of Turkey Bacon that has doubled in two years.
SOURCE: Nielsen 52 Week Data Ending 8/18/12

27. Looking for the best flavor / health alternative to pork*
Uncured Bacon
Fits the need of ‘Health Enthusiasts’
75%
25%
= 100% of Turkey Bacon Consumers
Looking for the best flavor / health alternative to pork*
Health Enthusiast
Potential Crossover
Uncured Consumers**:
Value both uncured and all-natural
Generally avoid nitrates in bacon – but not all products
Less price sensitive
Sources:
*F3152 Hormel Consumer Insights 2011
**F3152 Hormel Consumer Insights 2010

28. Support

29. Breakfast Marketing Plan
2012
2013
2013
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Aug
Sep
Oct
PR: Launch & SMT with Chef Devin Alexander
PR: Chef Devin Alexander article featuring breakfast recipes made with Jennie-O
Breakfast On-The-Go TBD
PR: Media and Blogger Outreach
1/13 FSI:
$4 Off Jennie-O Breakfast Items
3/17 FSI:
$4 Off Jennie-O Breakfast Items
$1 Off Bacon
$1 Off Sausage Roll
$1 Off TP Patties
$1 Off TP Links
$1 Off Bacon
$1 Off Sausage Roll
$1 Off FC Patties
$1 Off FC Links
Broadcast / Cable TV
Banner Ad & Coupons
$1 Off Bacon
$1 Off Sausage Roll
Last fall (Aug – Sept) – We promoted the launch of our new bacon heavily to drive awareness and trial
In January we’ll again use PR and television to drive awareness, and trial, but add heavy couponing through FSI’s, coupons.com, and facebook to entice her to add us to the shopping list
Coupons.com will not only power several coupons, but it will feature Jennie-O banner ads highlighting the $4 savings on breakfast
Paid online search: through Google ad words, we’ll be paying to to appear in searches related to healthy eating and breakfasts
1/28/13
Bacon
4/13/13
Bacon
PAID SEARCH:
SOCIAL MEIDA:

30. Coupons print through SwitchToTurkey.com
January FSI
Coupons print through SwitchToTurkey.com

31. Appendix

32. PR IS LIKE A MEGAPHONE Earned vs. paid media Viewed as highly credible
News segments and posts have pass-along value
Cost-efficient
Earned vs. paid media
Viewed as highly credible
News segments and posts have pass-along value
Cost-efficient

33. TV- The Biggest Loser 14th Season premiers Sunday January 6th
Regular night will be Monday nights
Jillian Michaels is back along with Bob Harper and Dolvett Quince
Season Theme is “Challenge America” and format includes 3 teens under the age of 18
Jennie-O integration- January 28th episode
Focus on breakfast and young people
Devin Alexander 2 new recipes
Program consistently performs well in comparison to the top 4 networks
Nielsen Ratings averaged 3.7% of households in 56 urban markets- reaching approximately 8MM viewers
14th Season premiers Sunday January 6th
Regular night will be Monday nights
Jillian Michaels is back along with Bob Harper and Dolvett Quince
Season Theme is “Challenge America” and format includes 3 teens under the age of 18
Jennie-O integration- January 28th episode
Focus on breakfast and young people
Devin Alexander 2 new recipes
Program consistently performs well in comparison to the top 4 networks
Nielsen Ratings averaged 3.7% of households in 56 urban markets- reaching approximately 8MM viewers

34. TV- Recipe Rehab Saturday mornings on ABC Information and Education
Premise of show –
Family with kids
Favorite Family Recipe to rehab
2 Chefs
Rehabed Recipe gets points for:
Delicious Taste
Ease of prep
Nutrition
Ratings: 1.7MM impressions
Total Recipe Rehab Views on You Tube 4.2MM
Total cummulative time spent viewing Recipe Rehab on You Tube 5 million minutes
Part of a 3 hour block or programming on Saturday morning
#1 block on Saturday morning, beating all network competition
61% of audience is women, 93% 18+ and 69% own their own home
Recipe Rehab women and over-index as Home Cooking Virtuosos and Super Influential Cooking Consumers
Air Date
Recipe
Product Used
Feb 16
Lasagna
Lean Ground
Feb 23
Enchiladas
April 13
Breakfast
Bacon
May 18
Burgers
Lean Ground & Sweet Italian Sausage
Saturday mornings on ABC
Information and Education
Premise of show
Family with kids
Favorite Family Recipe to rehab
2 Chefs
Rehabed Recipe gets points for:
Delicious Taste
Ease of prep
Nutrition
Ratings: 1.7MM impressions
Total Recipe Rehab Views on You Tube 4.2MM
Total cummulative time spent viewing Recipe Rehab on You Tube 5 million minutes
Part of a 3 hour block or programming on Saturday morning
#1 block on Saturday morning, beating all network competition
61% of audience is women, 93% 18+ and 69% own their own home
Recipe Rehab women and over-index as Home Cooking Virtuosos and Super Influential Cooking Consumers

35. 52% of ALL grocery shoppers use technology to shop4%
12%
11%
Check prices: 23% check prices at multiple stores online before going shopping
Online coupons:
32% use online coupons
Mobile:
31% use mobile technology while grocery shopping 6% 4% 9%
Technology as a Fact of Shopping Life: More than half of all shoppers now use technology either before or during their shopping trips. Much of this activity focuses on “value discovery”—deals, coupons, price comparisons, etc. As technology improves, more and more customers will be able to readily discover the lowest prices for the goods they want. In a world in which the lowest price can be located with a few swipes or clicks, retailers are encouraged to utilize online means to build relationships with customers.
Booz & Company with the FMI
Survey among 2000 grocery buyers representative of the US population base
Food Marketing Institute (FMI), 2012 U.S. Grocery Shopper trends 6%
Source: Booz & Company with the FMI