1. 1 Copyright 2001 ACNielsen Prepared for: Idaho Fresh Pak October, 2001 ACNielsen Homescan  : Demographic Analysis

2. 2 Copyright 2001 ACNielsen Contents Objective Executive Summary Panel Description Research Methodology Detailed Analysis Conclusion/Recommendations

3. 3 Copyright 2001 ACNielsen Objective ­ To understand who the Idahoan consumers are demographically. ­ To determine what differences exist between the consumer groups who purchase the different types of mashed potatoes and the different sizes.

4. 4 Copyright 2001 ACNielsen Executive Summary Slightly more than one-third of all households purchase Instant Mashed Potatoes (36%), about 37 million households. ­ Consumers purchase an average of 4 units of Instant Mashed Potatoes on just under 3 occasions. ­ The category in general is not very deal sensitive as less than 30% of the volume is purchased on deal. Within the Idahoan Mashed Potato products, the Original 13oz Carton (penetration 1.4%) and the Real 13oz (1.3%) attract the greatest number of households. ­ These buyers are purchasing these items on an average of one and a half occasions, satisfying about one-third of their category needs with the items.

5. 5 Copyright 2001 ACNielsen Executive Summary In general, the Instant Mashed Potato category skews above average among middle-to-younger aged households, less affluent, and households with kids. ­ Although, there are products within the franchise that skew away from this general picture. The Original and Complete Mashed Potatoes both tend to skew more heavily among households with kids than do the Real items. The Original products tend to vary in the income levels that they attract. However, they tend to attract a more affluent household than the Real and Complete products. ­ The Complete products are more likely to draw a less affluent household.

6. 6 Copyright 2001 ACNielsen Executive Summary The larger sizes have a greater share of their volume purchased by households with kids than the 13oz size, although still index relatively high. The 2oz size, both Original and Real, skew heavily among the older, retired households without kids. The Complete products are more likely to skew among the African American population whereas the Original has strong skews among the Hispanic households. The Complete products also have stronger skews in the metro counties while the Real items are more likely purchased in the B & C counties, and the Original in the more rural areas.

7. 7 Copyright 2001 ACNielsen Executive Summary Unlike the regular mashed potato items, the flavored items are less likely to attract households with kids. ­ They attract a slightly more affluent household than the average mashed potato buyer. ­ Similar to the Complete items, the flavors skew high within the metro counties. ­ They also have strong skews among the Hispanic population. Specialty Potatoes are purchased by fewer households than Instant Mashed Potatoes, however, they still attract about one-fourth of all households. ­ They are also more likely to attract households with kids. ­ The Specialty Potato buyer tends to be middle-aged and middle-income households with kids, particularly teenagers - similar to the Flavored Mashed Potato buyers.

8. 8 Copyright 2001 ACNielsen Homescan  Household Panel Description

9. 9 Copyright 2001 ACNielsen What is a household panel? A panel of households that continually provide information about their purchases. Who buys What they buy When they buy Where they buy Homescan members use in-home scanners to record all their purchases (from any outlet) intended for personal, in-home use.

10. 10 Copyright 2001 ACNielsen 55,000 Households Over 5 years of back data Geographically dispersed in all 48 contiguous states & demographically balanced Projectable at the national, regional, & market level Continuous reporting at UPC level across all outlets Panel Description

11. 11 Copyright 2001 ACNielsen Known about ACNielsen Homescan households? Female/Male Head of Household ­ Age ­ Employment ­ Occupation ­ Education Other Household Members ­ Age ­ Relationship to Panel Member ­ Employed for Pay Household Income Race Spanish Descent Cable TV Type of Residence Own/Rent Residence Length of Residence Pet Ownership (dog/cat and number owned) Vehicle Ownership (car/truck and number owned) Appliance Ownership Each year, ACN updates panelists’ demographics which includes:

12. 12 Copyright 2001 ACNielsen Data Collection Store Age/Sex of Primary and Secondary Shopper Date of Purchase Complete Item Description Through UPC Dictionary For Each UPC... ­ Number of Units Purchased ­ Price Paid (non ScanTrack stores only) ­ Deals Used Dealing is Specified by the Panelist as Follows: ­ Manufacturer Coupon ­ Store Coupon ­ Store Sale ­ Other Purchase Information Collected on each Shopping Trip

13. 13 Copyright 2001 ACNielsen Data Collection Easy Transmission of data via phone lines Easy to follow prompts from Scanner “Star Market is where you shopped?” “You are Mary?” Yes No “Did you use a Coupon” STOREMFGSTORE SALE OTHER SALE NO 789 456 123 "FOR" 0---- A B C D E F G H I J K L M N O P Q R S T U V W X Y Z SPACEON/OFF CPN YES ENTER EXITCORRECT

14. 14 Copyright 2001 ACNielsen Methodology - Research Design Data Source: ­ ACNielsen’s National Electronic Homescan Household Panel. A geographically and demographically balanced sample of 55,000 households who continuously scan their purchases of consumer packaged goods from all outlets using an in-home electronic scanning wand. Report - Demographic Analysis Market - Total U.S. Channel - All Outlets Categories: ­ Instant Mashed Potatoes ­ Instant Specialty Potatoes Time Period - 52 weeks ending

15. 15 Copyright 2001 ACNielsen Instant Mashed Potatoes ­ Original 2oz, 13oz Polybag, 13oz Carton, 26oz Carton, 28oz Can ­ Complete Flake.99 cents, Pre-priced $1.42 ­ Real Flake 2.1oz, 8oz, 13oz ­ Flavored 4oz w/4 cheese, Butter & Herb, Roasted Garlic Instant Specialty Potatoes ­ Au Gratin 5.5oz ­ Scalloped 5.5oz Methodology - Items Evaluated

16. 16 Copyright 2001 ACNielsen Detailed Analysis

17. 17 Copyright 2001 ACNielsen Original Regular Flakes Mashed Potatoes

18. 18 Copyright 2001 ACNielsen Key Findings Within the Original segment, the 13oz Carton and 26oz Can attract the greatest number of consumers. ­ Households purchase these items on an average of 1.5 occasions throughout the year. They are also likely to shop the category as they only satisfy about one-third of their total category needs with these items. The 13oz size skews towards families, 45% of the volume is from households with kids. ­ The Polybag attracts a slightly more affluent household than does the Carton. The larger sizes particularly skew high among households with Kids, more than 50% of their volume, and middle-aged households 35-44.

19. 19 Copyright 2001 ACNielsen Key Findings ­ The 26oz Carton attracts a higher income level household than does the 28oz Can. ­ The larger sizes also attracts the middle-aged and older households without kids. The smaller 2oz size attracts an older, retired, 1-2 member household in the lower income range. ­ The 2oz consumers are purchasing an average of 4 units on 2 occasions and satisfy about half of their category needs with the Original 2oz size. ­ The Original size, particularly the Carton, also skews towards Hispanics, 21% of the volume.

20. 20 Copyright 2001 ACNielsen Idahoan Original Mashed Potatoes Purchase Behavior The Original 13oz Carton attracts the largest group of consumers, followed by the 28oz Can size. The Original 2oz buyers are purchasing the greatest number of units, however, given its package size, they may be the lightest brand buyers.

21. 21 Copyright 2001 ACNielsen Summary: Original Regular Flakes As expected, there is a wide discrepancy as to the households who are purchasing the different Original sizes. The smaller size skews towards the older retired households, whereas, the larger sizes are more likely to be purchased by households with kids.

22. 22 Copyright 2001 ACNielsen The 26oz Carton container is more likely to attract a slightly higher income household than the 28oz Can. The 13oz items tend to skew among the middle-to-lower income levels while the 2oz draws the retired low income households. Household Income Volume Index: Original Regular Flake Buyers

23. 23 Copyright 2001 ACNielsen Except for the 2oz, the Original products tend to skew towards the larger member households 3+. Household Size Volume Index: Original Regular Flake Buyers

24. 24 Copyright 2001 ACNielsen The Original products attracts a wide range of households, particularly those 35-44 year olds and 55-64 year olds. Household Female Head Age Volume Index: Original Regular Flake Buyers

25. 25 Copyright 2001 ACNielsen Purchasing is strongest among households with kids under age 18, particularly those 6-12 and teenagers. ­ The 2oz obviously skews among households without kids. Age / Presence of Kids Volume Index: Original Regular Flake Buyers

26. 26 Copyright 2001 ACNielsen While not strongly biased, the 2oz, 13oz Carton, and 28oz Can all skew more towards the non-working while the 13oz Polybag and 26oz Carton have skews to the full-time employed. Employment Status Volume Index: Original Regular Flake Buyers

27. 27 Copyright 2001 ACNielsen White households index at close to 100 and due to their size account for most of the volume. The 13oz Carton and the 28oz Can do have skews among the Hispanic households. Race / Origin Volume Index: Original Regular Flake Buyers Black = Low Sample Size

28. 28 Copyright 2001 ACNielsen The 13oz Carton and 28oz Can size have strong skews in the smaller D counties. The 2oz has strength in the C counties. County Size Volume Index: Original Regular Flake Buyers

29. 29 Copyright 2001 ACNielsen The 13oz Polybag, 2oz, and 28oz Can all have strength in the South, whereas the Cartons are stronger in the East. Census Region Volume Index: Original Regular Flake Buyers

30. 30 Copyright 2001 ACNielsen Original Mashed Potatoes - Comparison of Different Sizes/Packaging

31. 31 Copyright 2001 ACNielsen Summary: Original Mashed Potatoes

32. 32 Copyright 2001 ACNielsen The 26oz Carton had stronger skews among the middle-to-upper income households, whereas the 28oz Can was stronger among the lower income. Household Income Volume Index: Original Mashed Potato Buyers

33. 33 Copyright 2001 ACNielsen Both large sizes skewed towards larger households, the 28oz Can had slightly stronger skews among 5+ member households. Household Size Demographics: Volume Index: Original Mashed Potato Buyers

34. 34 Copyright 2001 ACNielsen Both products have above average skews among middle-aged households 35-44 and older households 55-64. Household Female Head Age Demographics: Volume Index: Original Mashed Potato Buyers

35. 35 Copyright 2001 ACNielsen Purchasing is strongest among households with kids under age 18. ­ The 28oz Can skews higher among the younger kids, where the 26oz Carton skews among the older children. Age / Presence of Kids Demographics: Volume Index: Original Mashed Potato Buyers

36. 36 Copyright 2001 ACNielsen While not strongly biased, the 26oz Carton is more likely to be purchased by a full time working household where as the 28oz Can skews among the non-working household - retired or non- working mother. Employment Status Demographics: Volume Index: Original Mashed Potato Buyers

37. 37 Copyright 2001 ACNielsen White households index at close to 100 and due to their size account for most of the volume: 94% of the 26oz Carton and 84% of the 28oz Can. ­ The 28oz Can has skews among the Hispanic households. Race / Origin Demographics: Volume Index: Original Mashed Potato Buyers

38. 38 Copyright 2001 ACNielsen The 28oz Can has 50% more volume being purchased in the smaller ‘D’ counties than expected. County Size Demographics: Volume Index: Original Mashed Potato Buyers

39. 39 Copyright 2001 ACNielsen The 28oz Can has above average purchasing in the South and East. Census Region Demographics: Volume Index: Original Mashed Potato Buyers

40. 40 Copyright 2001 ACNielsen Complete Mashed Potatoes

41. 41 Copyright 2001 ACNielsen Key Findings About one percent of all households purchase each of the Complete products. They are buying about 2 boxes per household. ­ The.99 cents consumers are heavier category buyers by 1 unit which may be why they are more price conscience. The Complete products attract a less affluent household than do the Original products, under $30K. ­ They are heavy buyers though, both of the brand and category. They purchase 2.5 to 3 units of the item and nearly 9 units of the category. The pre-priced item has a greater share of its volume consumed by households with kids than the.99 cent item (56% vs. 43%).

42. 42 Copyright 2001 ACNielsen Key Findings ­ The.99 cents attracts households with older kids 6-17 while the pre-priced skews among all households with kids (price-value perception?). ­ The.99 cent item also has skews among older 55-64 year old households. Both products skew high among the African American population. The.99 cents also has a disproportionate share of volume from Hispanic households. Location is also a distinguishing factor which may be driving the demographic differences, the.99 cents has strengths in the South where as the Pre-priced item has skews in the East, both in the more metro areas.

43. 43 Copyright 2001 ACNielsen Complete Mashed Potatoes Purchase Behavior The purchase dynamics are fairly similar between the two priced Complete products. The.99 cent buyers are heavier category buyers, by one box, which may be why they are more price conscience.

44. 44 Copyright 2001 ACNielsen Summary: Complete Mashed Potatoes

45. 45 Copyright 2001 ACNielsen Both Complete products are stronger among the lower income level households. ­ The Complete segment is more likely to attract the lower income households as compared to the Original and Real products. Household Income Volume Index: Complete Mashed Potato Buyers

46. 46 Copyright 2001 ACNielsen The Pre-Priced item had above average skews among larger household sizes, most likely those with kids. The.99 cents item was strong among 2 member and 5+ member households. Household Size Volume Index: Complete Mashed Potato Buyers

47. 47 Copyright 2001 ACNielsen Both Complete products are strong among middle-aged households 45-54. Household Female Head Age Volume Index: Complete Mashed Potato Buyers

48. 48 Copyright 2001 ACNielsen Both products have high skews among households with kids, however, the regular priced item is stronger among the younger kids under 12 while the.99 cents item skews among the teenagers. Age / Presence of Kids Demographics: Volume Index: Complete Mashed Potato Buyers

49. 49 Copyright 2001 ACNielsen The.99 cents items has strong skews among part-time working households. The regular priced skews above average among full- time workers. Employment Status Volume Index: Complete Mashed Potato Buyers

50. 50 Copyright 2001 ACNielsen Both Complete products have strong skews among African- Amercian households. One-fourth to one-third of the volume comes from these households. Race / Origin Volume Index: Complete Mashed Potato Buyers

51. 51 Copyright 2001 ACNielsen The Complete products has above average volume coming from ‘A’ size counties. County Size Volume Index: Complete Mashed Potato Buyers

52. 52 Copyright 2001 ACNielsen The Regular Priced product has strong skews in the East whereas the.99 cents product has an above average share of volume from the South. Census Region Volume Index: Complete Mashed Potato Buyers

53. 53 Copyright 2001 ACNielsen Real Premium Mashed Potatoes

54. 54 Copyright 2001 ACNielsen Key Findings The Real 13oz size attracts nearly 1.5 million households, just shy of the number of households that the 13oz Original attracts. ­ Consumers purchase this segment on a little over one occasion, the 2oz size slightly more. ­ This is a highly dealt segment, particularly the 8oz and 13oz sizes. The 8oz and 13oz both attract households with kids, however, the 8oz more than the 13oz. ­ The 8oz skews towards a less affluent household than the 13oz. ­ The 8oz’s strength among households with kids is an older child in its teenage years. ­ The 13oz also has an above average share of volume from older households 55-64.

55. 55 Copyright 2001 ACNielsen Key Findings Similar to the Original 2oz size, the Real 2oz consumers tend to be older, childless households within the lower income level - ‘Getting By’. ­ The 2oz is more likely to be purchased in the non-metro areas and in the South.

56. 56 Copyright 2001 ACNielsen Real Mashed Potatoes Purchase Behavior The Real 13oz size product clearly attracts the greatest number of buyers over the 2.1oz and 8oz sizes. The 2.1oz size buyers purchase this size more frequently than the 8oz and 13oz buyers, and they are heavier category buyers. However, this may be indicative of the size they are purchasing.

57. 57 Copyright 2001 ACNielsen Summary: Real Premium Mashed

58. 58 Copyright 2001 ACNielsen The 2oz Real item is more likely to be purchased by a lower income level household, whereas, the 13oz product has stronger skews among middle income level households. Household Income Volume Index: Real Premium Buyers * * Sample Size = 16

59. 59 Copyright 2001 ACNielsen The 2oz size has stronger skews among the 2 member households. The 8oz and 13oz have above average purchasing from slightly larger 3-4 member households. Household Size Volume Index: Real Premium Buyers

60. 60 Copyright 2001 ACNielsen The 2.1oz Real product tends to skew towards the older households 55+. The 13oz also skews among the older households 55-64 while the 8oz has above average purchasing from the younger households 35-44 years old. Household Female Head Age Volume Index: Real Premium Buyers

61. 61 Copyright 2001 ACNielsen As expected, the 2.1oz size is more likely to be purchased by households without kids and the 8oz by households with kids. ­ The 13oz does not have strong skews either way but does have an above average share of volume from households with a kids under 6. Age / Presence of Kids Volume Index: Real Premium Buyers

62. 62 Copyright 2001 ACNielsen While none of the sizes are strongly biased, the 8oz item does have an above average skew towards non-working households. Employment Status Volume Index: Real Premium Buyers

63. 63 Copyright 2001 ACNielsen White households index at close to 100 and account for 85-90% of the volume. Race / Origin Volume Index: Real Premium Buyers * Sample Size = 19

64. 64 Copyright 2001 ACNielsen The 8oz and 13oz items have above average skews within ‘B’ size counties while the 2.1oz size is strong among all of the smaller counties - B, C, and D. None are particularly strong in Metro counties. County Size Volume Index: Real Premium Buyers

65. 65 Copyright 2001 ACNielsen All three Real sizes have a large share of their volume being purchased within the South, more than two times the expected share. Census Region Volume Index: Real Premium Buyers

66. 66 Copyright 2001 ACNielsen 13oz Mashed Potatoes - Comparison of Different Products

67. 67 Copyright 2001 ACNielsen Key Findings The Original 13oz Carton skews to a wider income range and on a higher end than the Complete and Real size. The Complete 13oz skews to a lower income household than does the Real 13oz product. ­ However, based on household size, the Real product attracts households that are slightly more affluent ‘Living Comfortably’ while the Complete and Original households are ‘Getting By’. The 13oz sizes all attract households with kids. The Real and Original skew among the younger children while the Complete among the older kids. The Real and Complete 13oz are more likely to attract a slightly older consumer than the Original product.

68. 68 Copyright 2001 ACNielsen Key Findings The Complete and Original both skew among Hispanic households and the Complete among African Americans. The Real & Complete are both strong in the South while the Original’s strength is in the East.

69. 69 Copyright 2001 ACNielsen Summary: 13oz Mashed Potatoes

70. 70 Copyright 2001 ACNielsen The Complete 13oz had stronger skews among the lower income households while the Original tends to attract a more middle income household. The Real product has much more consistent indices across all income levels with an above average among $30-39K. Household Income Volume Index: 13oz Mashed Potato Buyers

71. 71 Copyright 2001 ACNielsen The 13oz size across all product types skews towards larger sized families. The Original Carton has slightly stronger skews among the 5+ member households. Household Size Volume Index: 13oz Mashed Potato Buyers

72. 72 Copyright 2001 ACNielsen While all 13oz items skews towards the middle-aged households, the Complete 13oz has particular strength among 45-54 year olds, while the Original Carton is stronger among older 55-64 year olds. Household Female Head Age Volume Index: 13oz Mashed Potato Buyers

73. 73 Copyright 2001 ACNielsen The Complete and Original Carton both are more likely to attract households with kids while the Real product does not have strong skews towards kids. ­ The Complete product skews stronger among the older children while the Original has skews among the younger kids. Age / Presence of Kids Volume Index: 13oz Mashed Potato Buyers

74. 74 Copyright 2001 ACNielsen The Complete product tends to attract part-time workers while the Original Carton attracts non-workers. The Real does not have strong skews among any employment groups. Employment Status Volume Index: 13oz Mashed Potato Buyers

75. 75 Copyright 2001 ACNielsen While White households accounts for the majority of the 13oz volume, the Complete product is the only 13oz size that has strong skews among African American households. Race / Origin Volume Index: 13oz Mashed Potato Buyers

76. 76 Copyright 2001 ACNielsen The Complete product tends to skew more among the metro households while the Original Carton has strong skews among the ‘D’ county households. County Size Volume Index: 13oz Mashed Potato Buyers

77. 77 Copyright 2001 ACNielsen Real and Complete both have above average skews within the South Census Regions. The Original Carton attracts more than their fair share of volume from the East. Census Region Volume Index: 13oz Mashed Potato Buyers

78. 78 Copyright 2001 ACNielsen 2oz Mashed Potatoes - Comparison of Different Products

79. 79 Copyright 2001 ACNielsen Key Findings The 2oz Original and Real products both attract an older household, without kids, and most likely retired. The Original attracts a slightly lower income level consumer than the Real, however, it may be due to their average household size. ­ The Original has higher skews among 1 member households while the Real skews among 2 member households. Both products are more likely to be purchased in the more rural counties in the South.

80. 80 Copyright 2001 ACNielsen Summary: 2oz Mashed Potatoes

81. 81 Copyright 2001 ACNielsen The 2oz size was strong among the lower income households, particularly the Original. The Real was fairly evenly spread among the households with incomes under $50K. Household Income Volume Index: 2oz Mashed Potato Buyers

82. 82 Copyright 2001 ACNielsen The 2oz size had above average skews among the smaller households. ­ The Original was stronger among the 1 member households and the Real among the 2 member households. Household Size Volume Index: 2oz Mashed Potato Buyers

83. 83 Copyright 2001 ACNielsen The 2oz size had strong skews among older households 55+ Household Female Head Age Volume Index: 2oz Mashed Potato Buyers

84. 84 Copyright 2001 ACNielsen Not surprising given the other demographic skews, the 2oz size skews among households without kids. 85% of their volume comes from these households. Age / Presence of Kids Volume Index: 2oz Mashed Potato Buyers

85. 85 Copyright 2001 ACNielsen The Original 2oz size has stronger skews among the non- employed retired households. The Real 2oz size is fairly consistent among part-time and non-employed. Employment Status Volume Index: 2oz Mashed Potato Buyers

86. 86 Copyright 2001 ACNielsen There are no strong biases towards any ethnic groups. White households represent about 90% of the 2oz volume. Race / Origin Volume Index: 2oz Mashed Potato Buyers

87. 87 Copyright 2001 ACNielsen The 2oz size has strong skews among households who live in ‘C’ counties. The Real 2oz is more likely to also attract households that live in ‘B’ and ‘D’ counties than the Original. County Size Volume Index: 2oz Mashed Potato Buyers

88. 88 Copyright 2001 ACNielsen Similarly, both 2oz products receive a disproportionate share of their volume from the South. Census Region Volume Index: 2oz Mashed Potato Buyers

89. 89 Copyright 2001 ACNielsen Flavored Mashed Potatoes

90. 90 Copyright 2001 ACNielsen Key Findings The flavored items attract about a million households each, 4 Cheese and Roasted Garlic slightly more, Butter & Herb slightly less. ­ Even though consumers only purchase an average of 2 boxes of the flavored items they are fairly heavy category buyers. They satisfy less than one-third of their category needs with the flavored item. These products attract a middle-aged consumer 35-44. The Butter & Herb and Roasted Garlic flavors also skew high among older households 55-64 years old. The 4 Cheese and Roasted Garlic have a fair share of volume from households with kids, about one-third of their volume, while Butter & Herb have a smaller share from this consumer group.

91. 91 Copyright 2001 ACNielsen Key Findings Butter & Herb attracts a more affluent households than the other flavors, followed by the the 4 Cheese flavor and then the Roasted Garlic, attracting the least affluent household. All flavors skew high among the Hispanic population Each flavor has a strength in a different part of the country (may be distribution driven): 4 Cheese in the South; Butter & Herb in the East; and Roasted Garlic in the West.

92. 92 Copyright 2001 ACNielsen Flavored Mashed Potatoes Purchase Behavior The 4 Cheese and Roasted Garlic flavors attract slightly more households than does the Butter & Herb flavor. However, the Butter & Herb buyers are slightly heavier buyers which indicates that the other flavors have more one-time triers. The Herb & Butter buyers are also heavier category buyers, followed the 4 Cheese buyers.

93. 93 Copyright 2001 ACNielsen Summary: Flavored Mashed Potatoes

94. 94 Copyright 2001 ACNielsen The 4 Cheese tends to have strong skews among mid-income level households, with Butter & Herb households slightly higher. Household Income Volume Index: Flavored Mashed Potato Buyers

95. 95 Copyright 2001 ACNielsen Although there are no strong biases among household size, the Flavored buyers tend to be middle sized households, 2-4 members. Household Size Volume Index: Flavored Mashed Potato Buyers

96. 96 Copyright 2001 ACNielsen The 4 Cheese flavor attracts a younger female head, 35-44, while the Butter & Herb and Roasted Garlic flavors attracts an older household, 55-64. Household Female Head Age Volume Index: Flavored Mashed Potato Buyers

97. 97 Copyright 2001 ACNielsen There are no strong skews among presence of kids. The Butter & Herb flavor is more likely to be purchased by households without kids while the other 2 flavors have average skews. ­ The Roasted Garlic does have skews among households with teenagers versus younger children. Age / Presence of Kids Volume Index: Flavored Mashed Potato Buyers

98. 98 Copyright 2001 ACNielsen All three flavors have above average skews among full time working households. Employment Status Volume Index: Flavored Mashed Potato Buyers

99. 99 Copyright 2001 ACNielsen Even though White households represents a majority of the volume, Butter & Herb and Roasted Garlic have strong skews among the Hispanic population. They account for about 15% of the flavor’s volume. Race / Origin Volume Index: Flavored Mashed Potato Buyers

100. 100 Copyright 2001 ACNielsen The flavored potatoes are more likely to be purchased in the more metro counties versus the rural areas. County Size Volume Index: Flavored Mashed Potato Buyers

101. 101 Copyright 2001 ACNielsen Each flavor has skews in a different region of the country - distribution related? ­ 4 Cheese is strong in the South, Butter & Herb in the East, and Roasted Garlic in the West. Census Region Volume Index: Flavored Mashed Potato Buyers

102. 102 Copyright 2001 ACNielsen Specialty Potatoes

103. 103 Copyright 2001 ACNielsen Key Findings Just over one-fourth of all households purchase Specialty potatoes, slightly less than purchase Instant Mashed potatoes. ­ They purchase only slightly less frequently than the Mashed Potato buyers. ­ The Specialty category is slightly more heavily dealt with one-third of the volume purchased on deal. Similar to Mashed potatoes, Specialty potatoes are also more likely to be purchased by households with kids. Au Gratin & Scalloped potatoes attract a very similar consumer. ­ They tend to be middle-income level, households with kids, particularly teenagers.

104. 104 Copyright 2001 ACNielsen Key Findings ­ They skew above average within the more rural counties C & D and in the South, Au Gratin is also strong in the Central region. ­ They also skew among older households.

105. 105 Copyright 2001 ACNielsen Specialty Potatoes Purchase Behavior Just over one-fourth of all households purchase Specialty Potatoes, slightly less than Mashed Potatoes. ­ Au Gratin and Scalloped potatoes both have very similar purchase behavior.

106. 106 Copyright 2001 ACNielsen Summary: Specialty Potatoes

107. 107 Copyright 2001 ACNielsen The Specialty buyers are fairly evenly spread over all income levels, particularly the middle income range. ­ The Specialty products are more likely to attract a slightly more affluent buyer than are Mashed Potatoes. Household Income Volume Index: Specialty Potato Buyers

108. 108 Copyright 2001 ACNielsen The Specialty products have strong skews among 3+ member households. ­ Scalloped potatoes have higher skews among 5+ member households while Au Gratin potatoes are stronger among 3-4 members. Household Size Volume Index: Specialty Potato Buyers

109. 109 Copyright 2001 ACNielsen Scalloped potatoes are more likely to be purchased by younger households (35-44) and older households (65+). Whereas Au Gratin potatoes skew stronger among 55-64 year olds. Household Female Head Age Volume Index: Specialty Potato Buyers

110. 110 Copyright 2001 ACNielsen Both Scalloped and Au Gratin potatoes skew above average among households with teenagers. Otherwise, they are fairly in- line with the population in terms of households with kids versus not purchasing the flavored products. Age / Presence of Kids Volume Index: Specialty Potato Buyers

111. 111 Copyright 2001 ACNielsen Employment is not a strong biased segment. The Specialty items are much more likely to be purchased by a household with a female head. Employment Status Volume Index: Specialty Potato Buyers

112. 112 Copyright 2001 ACNielsen White households account for more than 90% of the Specialty potatoes volume. Race / Origin Volume Index: Specialty Potato Buyers

113. 113 Copyright 2001 ACNielsen Au Gratin potatoes have above average skews within the more rural counties - C and D, while Scalloped potatoes are fairly evenly spread. County Size Volume Index: Specialty Potato Buyers

114. 114 Copyright 2001 ACNielsen Overall, Specialty potatoes are strong in the Central. Au Gratin potatoes have above average skews in the Central while Scalloped potatoes are stronger in the South. Census Region Volume Index: Specialty Potato Buyers

115. 115 Copyright 2001 ACNielsen Conclusion

116. 116 Copyright 2001 ACNielsen Conclusion/Recommendation Is there a market for all of the types and sizes of Mashed Potatoes that Idahoan offers? Are there enough differences in demographics to justify? Each of the Idahoan types do appeal to a slightly different consumer, however, there is a great deal of overlap. There may be an opportunity to consolidate. ­ Since the Complete product is currently dwindling in sales, this may be an opportunity to replace the Complete type with the Original. ­ Both attract a large share of households with kids in the same lifestage, as well as without kids. ­ However, the Complete does skew among a less affluent household and is strong among African American households.

117. 117 Copyright 2001 ACNielsen Conclusion/Recommendation Is there a market for all of the types and sizes of Mashed Potatoes that Idahoan offers? Are there enough differences in demographics to justify? ­ If making the switch to Original, maintain distribution levels of the Complete products. ­ Focus on advertising flavor vs. convenience of the Original products to African American households. ­ Place coupons on/in the Complete box for their next purchase of Original to promote trial. ­ Determine if households are currently purchasing both the Original and Complete items - easier switch. ­ Consider the competitive availability, are there competitive items that these households will switch to or does Idahoan have a good chance of keeping these households in the franchise?

118. 118 Copyright 2001 ACNielsen Conclusion/Recommendation It also does not appear that there is a need for both the Original 26oz Carton and the 28oz Can. ­ Both items have a greater than expected share of volume from households with kids as well as an appeal among households without kids and in the same age groups. ­ Income levels may be driven more by areas of distribution versus a preference of Carton vs. Can. ­ Currently the Can attracts more households than the Carton, however, this may also be driven by distribution. ­ If penetration differences are driven by distribution, replace the Can with the Carton since it is a more profitable item for the company.

119. 119 Copyright 2001 ACNielsen Conclusion/Recommendation It also does not appear that there is a need for both the Original 26oz Carton and the 28oz Can. ­ Keep the same level of distribution of both the Carton and the Can. ­ Maintain the heritage of the Can, have a nostalgic promotion at least once a year in the fall or around the holidays. Promote storage usages Smaller size buyers may purchase up just to buy the ‘original’ Idahoan can.

120. 120 Copyright 2001 ACNielsen Conclusion/Recommendation Is there an opportunity to convert the 2oz size to a 4oz pouch? The 2oz size has its niche among older, retired, 1 & 2 member households. The 2oz consumers also tend to be less affluent than the larger size buyers. When compared to the Real 8oz item (2 pre- measured 4oz pouches), this product has a much stronger skew among households with kids and larger families. Because of the niche consumer group, there is a need to maintain the 2oz size. There may be an opportunity to add additional 2oz pouches to a box as the 2oz consumer purchases an average of 2.5 units per shopping occasion.

121. 121 Copyright 2001 ACNielsen Conclusion/Recommendation Is there an opportunity to introduce a new flavor that appeals to the Hispanic market? The Original style mashed potatoes, particularly the 13oz Carton, has a strong skew among Hispanic households (20% of volume - more than 2 times the expected share). The flavored varieties also appeal to this ethnic group, especially the butter & Herb and Roasted Garlic flavors. Do capitalize on this growing ethnic population by introducing a flavor that would appeal to Hispanic households - Green Chili Mashed Potatoes????

122. 122 Copyright 2001 ACNielsen Conclusion/Recommendation Should the Specialty potatoes be downsized from a 5 serving size to a 3 1/2 serving? Nearly half of the Specialty potato volume is purchased by households with kids, particularly 6-17 year olds. 59% of the volume is from households with 5+ members - a 3 1/2 serving box would not feed this household. The 2 member households are already purchasing this product and a downsize may or may not effect them. However, a downsize may risk losing the larger families who do not want to purchase 2 boxes for a single meal.

123. 123 Copyright 2001 ACNielsen Thank You!