1. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. New Product Trends 2005 Non-Food Valerie Skala Walker VP, Analytic Product Management, IRI valerie.walker@infores.com March 1, 2005

2. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 2 Overview  Non-food  Looking back  What happened to last year's Pacesetters  2003-2004 Pacesetters  Looking forward  2005 New Brands to Watch  Trends

3. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 3 Year-One FDMx Sales ($MM) Top 10 New Brands of 2003: Where are they now? SOURCE: IRI InfoScan Reviews, year-one sales for the Top 10 new brands introduced between Feb ’02 and Jan ’03, compared versus CY2004 sales. * Mops category sales figures are based on a reduced Mass Merch sample. 2004 $273 $166 $29 $82 $56 $81 $136 $70 $89 $55

4. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 4 Which NON-FOOD brand was #1 in year-one FDMx dollar sales? $14 $8$5 $18$15 $16 $30 $11 $3 $9

5. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 5 Year-One FDMx Sales ($MM) Health Remedy Personal Appearance Top-Selling New Non-Food Brands, 2003-04 Source: IRI InfoScan Reviews FDMx $ sales, new brands with full year post-launch as of 12/26/04

6. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 6 Top 10 Non-Food Brands – Ad Spending * Source: Nielsen Media Research, total measured media spending Ad $MM* $71 $98 $45 $44 $49 $37 $57 $9 $55 $62 Source: IRI InfoScan Reviews FDMx $ sales, new brands with full year post-launch as of 12/26/04 Year-One FDMx Sales ($MM)

7. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 7 Projected Year-One FDMx Sales ($MM) Non-Food Ones To Watch in 2005, < 1 year old Source: IRI InfoScan Reviews, FDMx sales from each brand’s launch through 12/26/04, projected to estimate total year-one sales. Weeks in Mrkt 40 20 48 16 48 24 20 32 44

8. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 8 Leading Trends in Home, Health, and Beauty Care in 2003-2005 I gave at the officeVitality: feeling good, looking good Value - on my terms Connections / Legacy Old brands try to regenerate interest in their category with innovative delivery systems that attract consumer attention

9. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 9 Bathroom Cleaning $16mm Y1 est. Y1 $27mm est. Y1 $31mm Source: IRI InfoScan Reviews, actual or estimated year-one FDMx sales based on from each brand’s launch through 12/26/04. new Toilet Brushes: $72 mm Y1 FDMx

10. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 10 Around the Kitchen and Laundry Room Source: IRI InfoScan Reviews, actual or estimated year-one FDMx sales based on from each brand’s launch through 12/26/04. est. Y1 $59mm Y1 $35mm est. Y1 $21mm

11. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 11 Air Freshening / Odor Neutralizing Sprays Source: IRI InfoScan Reviews, actual Food-Drug sales from each brand’s launch date through 12/26/04. NOTE: This is a rare Reviews category for which we only report Food+Drug outlet sales, not Total FDMx. Febreze Air Effects $12 mm CY2004 Oust #13 - $33mm Y1 $65mm CY2004 Lysol Neutra-Air $26mm 2004

12. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 12 Decorative and "Motion" Air Fresheners #8 Ones to Watch est. $32mm Y1 Source: IRI InfoScan Reviews, actual Food-Drug sales from each brand’s launch date through 12/26/04. NOTE: This is a rare Reviews category for which we only report Food+Drug outlet sales, not Total FDMx. #47 - $15mm Y1 tbd #27 Ones to Watch est. $19mm Y1

13. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 13 He's So Vain $9mm $16mm Source: IRI InfoScan Reviews, actual or estimated year-one FDMx sales based on each brand’s launch through 12/26/04. #19 - $27mm Y1 #23 - $25mm Y1

14. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 14 DIY Botox / Face Lift / Facial Peel Alternative to "drastic measures" like peels, surgery, lasers Reduce wrinkles without Botox injections Like a salon facial Microderm- abrasion Facial Peel Source: IRI InfoScan Reviews, actual or estimated year-one FDMx sales based on each brand’s launch through 12/26/04.

15. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 15 Interesting Make-Up News from 2004 #30 on 2003-2004 Pacesetters $22mm Y1 Source: IRI InfoScan Reviews, actual or estimated year-one FDMx sales based on each brand’s launch through 12/26/04. #72 on Brands to Watch List est. $9mm Y1 #39 on 2003-2004 Pacesetters List $18mm Y1

16. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 16 Misc. Health Remedies: Wart Removers  Cost $20 - $25, but work in one treatment  Previous products only cost $9 but took weeks of repeated treatment to work  Grew the category, now a 50% $ share of category (25% unit share) $10mm Y1 $15mm Y1 est. $17mm Y1

17. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 17 Health Care  Airborne  Just came out in Q4 '04  Only in 41% of drugstores and very few supermarkets  Not yet a Pacesetter but getting good buzz

18. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 18 Home Testing Kits Self-diagnosis & health monitoring via home testing kits The latest: - Test your cholesterol level - Determine if you're reaching menopause

19. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 19 Next Steps  If you'd like a copy of this material ASAP including this year's dataset (for sale after this conference for $2,000):  Leave your card with me here or at the Analytics booth with and I'll email it to you  Bring your JumpDrive by the Analytics booth in the Idea Exchange exhibit hall and I'll copy it for you  Email me any time at Valerie.Walker@infores.com  Visit the Idea Exchange to learn about  AttitudeLink surveys of new product triers & repeaters  ShopperLink in-store studies  Individual User within household  Attribute Drivers 3 - predict sales & incrementality for new product concepts

20. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 20 Ways to Drive Brand Growth Through Innovation Sustaining - Established brand line extensions - Keep pace with population and market growth Market Creating Expansion into adjacent categories Disruptive Innovation within own category - Up-market march - Down shift (specialist to mass market) Brand Growth

21. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 21 Dollar Sales Change vs. YAG 2004 Growth Heroes: Health News, Vitality, Convenience (+15% and +$50 million CY2004 vs. YAG, real volume growth, still growing in Q4'04) Source: InfoScan Reviews, Net FSP $ Sales, CY2004, FDMx (except Groc. Only for Rfg Meats, Frz Breakfast, & Air Fresh) % Chg..… 15% 28% ………… 15% 26% ………………….. 62% 19% ……………………… 27% 16% ……………………. 15% 17% Red Bull Many.........................................40%

22. Copyright © 2005 Information Resources, Inc. All Rights Reserved. Confidential and proprietary. 22 When category is - ADVERTISE YOUR BRAND to grow share and defend against lower-priced alternatives An Important Lesson Many