Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit NZ Industry Review.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Agenda Business Needs Assessment Executive Summary & Recommendations Homescan Methodology & Definitions How has the fruit category performed? How has summerfruit performed this summer? How does this compare to other fruits? Have prepacked summerfruit sales been successful? Did the negative press in the Dominion (Lower NI newspaper) on 30 January impact peach sales? What impact have early summerfruit season pickings (pre November) had on the category? Did the overlap in regions fruit crops in January effect demand in 2010?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Business Needs Assessment Background Summerfruit NZ want to understand how their category performs in relation to other fruit categories to help with industry planning. Report will be used for planning for the industry with relevant portions shared with the growers. Information will be used to help build on relationships with supermarket retailers. Business Decisions/Research Questions How did the summerfruit season perform? Was it better or worse than a year ago? What is driving this performance? Have prepacked summerfruit sales been successful? Did the overlap in regions fruit crops in January effect demand in 2010? Did the negative press in the Dominion (Lower NI newspaper) on 30 January impact peach sales? What impact have early summerfruit season pickings (pre November) had on the category?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Executive Summary How has summerfruit performed this summer? Summerfruit maintains #2 ranking for summer despite value declines – $ decline of 8.5% over summer (vs. -2% for total fruit) and down 1.1% category share – 70 cents less spent on loose summerfruit each purchase occasion – Adult households, young families and older families driving the decline Mixed families increase loyalty to summerfruit, increasing spend on loose fruit Have prepacked summerfruit sales been successful? Strong growth of prepacked summerfruit (+17%) with an increase of 90 cents each purchase occasion 46,800 more households purchasing this summer than YA Increased value spend by lifestages less engaged with summerfruit overall this summer Fewer young and mixed families buying this year – Is summerfruit less appealing for households with young children vs. other fruit types?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Executive Summary cont. Did the overlap in regions fruit crops in January effect demand in 2010? Hhld penetration was higher post January than last year but average spend was considerably lower Lower spend per trip is the key driver behind negative performance of loose summerfruit – Spend per trip dropped immediately after Christmas and did not stabilise until February/March Did the excess supply of fruit in January deflate prices vs. YA? Did the negative press in the Dominion (Lower NI newspaper) on 30 January impact peach sales? There is no apparent effect on shopper purchase measures What impact have early summerfruit season pickings (pre November) had on the category? Early season household penetration is below last summers levels but higher prices could be driver summerfruit loyalty took a dive below last summers levels in October and never recovered Are these factors due to early season fruit pickings or other environmental factors?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Recommendations  Focus on increasing spend per trip to drive up summerfruit value Prepacked formats are already achieving this Target independent outlets where prepacked produce share of trade is low – positive growth opportunity for retailer Communicate recipies using fresh fruit during the season  Re-gain shopper loyalty to summerfruit Re-engage older singles & couples and older families with summerfruit Increased spend on total fruit but decreased share spent on summerfruit How can customers be rewarded for higher purchase weights of loose produce? Cross promotion opportunities with other fruit or non-fruit suppliers eg. plums and chocolate  Communicate benefits of summerfruit for young children to overcome the potential barrier to purchase For example, small fruit size for small hands, essential vitamin levels of fruit types to meet daily growth requirements

Confidential & Proprietary Copyright © 2010 The Nielsen Company The following information sources have been used in this presentation – Nielsen Homescan – Sample based measurement of household purchasing – 2500 panellists representative of households in major and secondary urban areas (71% of New Zealand population) – Updated to week ending the Nov ’09 to Apr ’10 vs Nov ’08 to Apr ‘09 – Category: Fresh Fruits – Focus : Summer Fruits (this may be referred to as stonefruit in presentation as this is how the panelists are asked to scan the product) Page 7 Methodology / Data Sources

Confidential & Proprietary Copyright © 2010 The Nielsen Company How much do they spend? Drivers of buyer behaviour How often do they shop? How much do they spend on each shopping trip? How many households shop? Value Sales $ Shopper Penetration Purchase Frequency Spend per Occasion

Confidential & Proprietary Copyright © 2010 The Nielsen Company Nielsen definitions & terminology MAT – moving annual total YA- year ago Penetration – % of all households buying product Average Spend per Occasion – how much on average each household is spending on product each time they purchase Average Frequency of Purchase – how many times on average a household shops for product in a given time period AWOP$ – average $ spend per household in a given time period CATWOP$ - average $ spend per household on the fruit and vegetable category in a given time period Loyalty – AWOP/CATWOP ie. Share of fruit/veg $ being spent on summerfruit Barcoded is used interchangeably with prepacked

Confidential & Proprietary Copyright © 2010 The Nielsen Company Fresh fruit has increased in annual value due to strong growth from barcoded fruit, but performs behind other fruit formats in supermarkets. A poor performance from loose fruit in the summer period has caused category decline. What is driving the loose fruit decline? 84% share 16% share Annual Supermarket $ Growth Total Scanned Grocery4.4% Canned Fruit2.9% Frozen Fruit14.7%

Confidential & Proprietary Copyright © 2010 The Nielsen Company Although shoppers are still purchasing loose fruit on the same frequency, they are spending 30 cents (5%) less on average each time they purchase loose fruit. Barcoded fruit is growing due to more buyers who are shopping more often than last summer. +46,800 hhlds -30 cents

Confidential & Proprietary Copyright © 2010 The Nielsen Company Who is driving the decline at a retail level? Foodstuffs have declined on both MAT and 26weeks, with non supermarkets performing poorly in loose fruit vs. last summer. Progressive has gained share of trade with strong growth, particularly prepacked formats which now account for 19% of all fruit sales in their stores. 27% share of trade 29% share of trade 44% share of trade

Confidential & Proprietary Copyright © 2010 The Nielsen Company Fruit Category Summary Fresh fruit performs behind supermarket frozen and canned fruit Loose fruit is driving category decline as prepacked fruit has strong growth off a small base – 30 cents (5%) less being spent on loose fruit each shopping trip – 46,800 more shoppers of prepacked fruit shopping more often PAK’nSAVE and independants driving decline as Progressive gains share of trade

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit has performed behind the category for both MAT and summer vs. prior year. As the majority of sales, loose summerfruit is driving the decline. Prepacked formats have excellent growth and gain category share, although off a small base. Mat $ Share 10.1% - 0.9% vs YA 93% of summerfruit -2% vs YA (MAT) Summerfruit retains #2 ranking despite losing 1.1% category share this summer vs. YA.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit has gained buyers this summer although is being purchased less often. Prepacked summerfruit has attracted heavier summerfruit buyers while loose summerfruit has attracted lighter spenders. How do prices compare this summer to last summer? -70 cents +90 cents +32,400 hhlds +42,000 hhlds

Confidential & Proprietary Copyright © 2010 The Nielsen Company What is driving how much my consumers buy over time? ALL SHOPPERS - NEW ZEALAND - TOTAL STONE FRUIT (TP) Source : ACNielsen Homescan NZ Summerfruit Season (08-09) Summerfruit Season (09-10) Spend per occasion was down versus last summer, exceeding the $5 mark for the Christmas period only vs. last year when it remained elevated until April. Buyer base was slow to build, despite stronger start than last summer. Extended summer meant shoppers were buying later into the season on a more frequent basis than last summer. Is the deflated $ per occasion the result of the over-supply in the market?

Confidential & Proprietary Copyright © 2010 The Nielsen Company What is driving how much my consumers buy over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) LOOSE Source : ACNielsen Homescan NZ Summerfruit Season (08-09)Summerfruit Season (09-10)

Confidential & Proprietary Copyright © 2010 The Nielsen Company Despite shoppers spending less on fruit overall, the decrease in spend on summerfruit has seen a drop in shopper loyalty this summer. Who is driving this decline? How is loyalty changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ Summerfruit Season (08-09) Summerfruit Season (09-10)

Confidential & Proprietary Copyright © 2010 The Nielsen Company How is loyalty changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) LOOSE - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Adult hhlds, older families and young families have reduced $ spent on summerfruit this summer. High income hhlds have decreased their loose summerfruit spend by 17% this summer vs YA. Mixed families & Older S&C spent more on fresh fruit, but only mixed families increased summerfruit share of fruit repertoire. What else are they buying? Which groups are driving my growth/decline? (Lifestage) NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - HALF YEAR TO 25/04/2010 - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ Although summerfruit has become less important for all lifestages (other than mixed families), spend on prepacked summerfruit increased this summer increasing share of fruit repertoire.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Which Lifestage groups Drives my Brand? Based on STONE FRUIT BUYERS Source: Nielsen | Homescan® (New Zealand) - Issue # 162183 The decline in the average value spend is evident across all the life stages however it is more due to Young Families and Older Families. High income hhlds have decreased their spend by 17% this summer. $10 less $7 less

Confidential & Proprietary Copyright © 2010 The Nielsen Company Which Lifestage groups Drives my Brand? Based on STONE FRUIT BUYERS Source: Nielsen | Homescan® (New Zealand) - Issue # 162183 More impact from High Income HHs -17%

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit buyers have spent a greater proportion of their fruit spend on bananas and berries this summer. All lifestages except mixed families have spent more $ on bananas this summer, growing share of fruit repertoire. Does mixed family loyalty to summerfruit indicate a preference when in season? Berries gaining share predominantly from adult households. What else are my brand buyers purchasing? STONE FRUIT BUYERS - NEW ZEALAND - MAT TO 25/04/2010 - BASED ON VALUE ($000'S) - SHARE BASED ON TOTAL FRUIT Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company BRAND SHIFTING ANALYSIS | Based on Value STONE FRUIT - New Zealand For Period Nov '09 to Apr 10 vs YA Source: Nielsen | Homescan® (New Zealand) - Issue # 162178 This decline in value is predominantly due to existing buyers spending less on summerfruit, which suggests a price decrease versus last year. Only 14% of value decline is due to shoppers buying other fruit.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Progressive is the only retailer with positive growth in summerfruit for the summer period. Are summerfruit shoppers buying differently in Progressive?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Progressive has the lowest spend per occasion and purchase frequency with a strong increase in households driving the retailer growth. Progressives new shoppers are shopping more frequently as all other outlets have had fewer purchases of summerfruit this summer. Spend per occasion is down across the board, suggesting lower fruit prices this year.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Foodstuffs undertrades in summerfruit due to New World share of loose fruit as does Progressive. Supermarkets overtrade in prepacked summerfruit due to non supermarkets predominance of loose fruit. Is there an opportunity to drive growth of prepacked with independent outlets? Estimated Fair Shares 42.3% 20.6% 21.8% 32.1% 25.5%

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit summary Summerfruit maintains #2 ranking for summer despite value declines – $ decline of 8.5% over summer (vs. -2% for total fruit) and down 1.1% category share – Increase in buyer base but less frequent purchases of summerfruit Loose summerfruit drives decline (down 10.2% vs. YA) with 70 cents less spent each purchase occasion – Adult households, young families and older families driving the decline Prepacked summerfruit grows at 17%, (up 2% of summerfruit) with an increase of 90 cents each purchase occasion – Majority of lifestages are less engaged with summerfruit overall but increased $ spend on prepacked formats Mixed families increase loyalty to summerfruit, increasing spend on loose fruit Bananas and berries gaining share of summerfruit buyers fruit repertoire Progressive performing ahead of the market with more summerfruit buyers and more frequent shopping

Confidential & Proprietary Copyright © 2010 The Nielsen Company Considerable decline across the fruit category, with summerfruit and apples the key drivers. Loose & prepacked formats are driving the category decline, with only barcoded summerfruit and citrus growing vs. last summer. Pears, citrus and melons decline vs. last summer although MAT performance is positive. 86.6% Summer $ share of category 23.0% 15.8% 15.0% 10.4% 7.5% 5.7% 4.0% 3.4% 3.0% Summerfruit retains #2 ranked fruit for summer (MAT#4)

Confidential & Proprietary Copyright © 2010 The Nielsen Company Average spend on summerfruit, apples and citrus is below last years levels. Bananas and berries have maintained higher spend per buyer throughout this summer. Summerfruit only managed #3 ranked average fruit spend per buyer this summer. Summerfruit Season (08-09)Summerfruit Season (09-10) #3 #1

Confidential & Proprietary Copyright © 2010 The Nielsen Company Berries achieved higher penetration levels this summer. Summerfruit holds #2 penetration ranking ahead of apples in January and February. Number of hhlds buying bananas are consistently above other fruits year round. Summerfruit Season (08-09) Summerfruit Season (09-10) #2

Confidential & Proprietary Copyright © 2010 The Nielsen Company Spend per occasion down for apples, summerfruit and citrus this summer. Berries and bananas purchase values trending upwards. Summerfruit Season (08-09)Summerfruit Season (09-10)

Confidential & Proprietary Copyright © 2010 The Nielsen Company Seasonality drives summerfruit purchase frequency, with other fruits purchased more consistently through the summer period. Summerfruit Season (08-09)Summerfruit Season (09-10)

Confidential & Proprietary Copyright © 2010 The Nielsen Company Penetration & AWOP - Based on Value For Period NOV '09 to APR '10 vs NOV '08 to APR '09 | Based on New Zealand Source: Nielsen | Homescan® (New Zealand) - Issue # 162174 Relatively stable buyer base across Fruits with reduced average spend from buyers mainly due to Stone Fruit and Apples. Impressive show by Berries in this season. 34K more HHs

Confidential & Proprietary Copyright © 2010 The Nielsen Company Occasions, Amount per Occasion and AWOP - Based on Value For Period NOV '09 to APR '10 vs NOV '08 to APR '09 | Based on New Zealand Source: Nielsen | Homescan® (New Zealand) - Issue # 162174 Spend per occasion is key driver behind fruit movements. Berries has gained lighter buyers as spend per occasion decreases.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Penetration, AWOP & CatWOP - Based on Value For Period NOV '09 to APR '10 vs NOV '08 to APR '09 | Based on New Zealand Source: Nielsen | Homescan® (New Zealand) - Issue # 162174 Almost all the buyers have reduced their category spend. Is this driven by cheaper produce or tighter purse strings?

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summary Decline across many fruit types this summer vs. YA – Apples and summerfruit are key drivers of negative fruit performance – Spend per occasion down this year for apples, citrus and summerfruit Berries and bananas perform this summer – Average spend per household increasing – Highest hhld penetration reached for fruit types by berries in December peak Seasonality less of an impact on other fruits as purchase frequency more stable over summer

Confidential & Proprietary Copyright © 2010 The Nielsen Company What do we know about prepacked summerfruit already? Value growth ahead of the category this summer vs. YA – +17.8% versus category decline of 2% Gaining $ share of summerfruit sales and total fruit sales – Accounts for 7.8% of all summerfruit sales, +1.8% vs. last summer – Gained 0.2% of total fruit sales this summer Captured increased spend from lifestages less engaged with summerfruit this summer – Increased spend from all lifestages except mixed families What else do we need to know to assess success?

Confidential & Proprietary Copyright © 2010 The Nielsen Company The prepacked summerfruit season is short in comparison to loose summerfruit. More early season buyers this year, but drop off this year in January. Unlike loose summerfruit, spend per occasion is higher than a year ago which has driven value sales, What is driving how much my consumers buy over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) BARCODE Source : ACNielsen Homescan NZ Summerfruit Season (08-09)Summerfruit Season (09-10) Prepacked summerfruit accounts for 8% of summerfruit sales

Confidential & Proprietary Copyright © 2010 The Nielsen Company Prepacked apricots, cherries and plums reached higher penetration levels this summer but only for one period. Apricots challenged the penetration highs of cherries and peaches while nectarines never reached the buyer numbers of last year.

Confidential & Proprietary Copyright © 2010 The Nielsen Company On the whole, loyalty to prepacked summerfruit remained consistent this summer. How is loyalty changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) BARCODE - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ Summerfruit Season (09-10)Summerfruit Season (08-09) Although few sales in prepacked summerfruit in April last year, the avg. spend was high as a proportion of avg. spend on total fruit & vegetables which drops at end of summer.

Confidential & Proprietary Copyright © 2010 The Nielsen Company Loyalty $ = AWOP/CATWOP LOYALTY ($) AWOP ($) CATEGOR Y AWOP ($) 4 W/E 09/11/2008NA 4 W/E 07/12/20083.15.2166.3 4 W/E 04/01/200911.110.694.8 4 W/E 01/02/20097.96.379.9 4 W/E 01/03/20097.66.484.5 4 W/E 29/03/20097.15.983.2 4 W/E 26/04/200919.310.654.7 4 W/E 08/11/2009NA 4 W/E 06/12/20095.65.497.5 4 W/E 03/01/201010.910.193.0 4 W/E 31/01/20107.36.690.7 4 W/E 28/02/20108.97.180.2 4 W/E 28/03/20107.16.085.1 4 W/E 25/04/201010.25.958.1 AWOP same as start of season but CATWOP significantly lower

Confidential & Proprietary Copyright © 2010 The Nielsen Company Although average spend on prepacked summerfruit has increased across the board, lighter young and mixed families have left prepacked summerfruit. How has the category's shopper profile changed over time - Lifestage NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) BARCODE - HALF YEAR TO 25/04/2010 - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Prepacked summerfruit has successfully retained shoppers who are less engaged with summerfruit overall this summer. There are fewer young and mixed families buying prepacked summerfruit this summer. Does the ‘stone’ make it less appealing for households with young children? Which groups are driving my growth/decline? (Lifestage) NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) BARCODE - HALF YEAR TO 25/04/2010 - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Prepacked summerfruit summary Value growth ahead of the category this summer vs. YA – +17.8% versus category decline of 2% Gaining $ share of summerfruit sales and total fruit sales – Accounts for 7.8% of all summerfruit sales, +1.8% vs. last summer – Gained 0.2% of total fruit sales this summer Captured increased spend from lifestages less engaged with summerfruit this summer – Increased spend from all lifestages except mixed families Short prepacked season affects buyer reach – Apricots, cherries and plums exceeded penetration levels of last summer but only for one period – Apricot penetration levels challenged highs of cherries and peaches – Repeat of last summers nectarine buyer peak never happened. Why? Loyalty to prepacked summerfruit has remained stable this year Fewer young and mixed families buying this year – Is summerfruit less appealing for households with young children vs. other fruit types?

Confidential & Proprietary Copyright © 2010 The Nielsen Company HHld penetration increased in February in Lower North Island with peak penetration exceeding last summers levels. What is driving how much my consumers buy over time? ALL SHOPPERS - LOWER NORTH ISLAND - TOTAL STONE FRUIT (TP) Source : ACNielsen Homescan NZ Summerfruit Season (08-09) Summerfruit Season (09-10) Negative press on peach sales in Dominion 30 January

Confidential & Proprietary Copyright © 2010 The Nielsen Company Early season hhold penetration is certainly lower this year than last, but average spend was higher until November. How are the key consumer drivers of sales changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ Is the lower penetration levels due to poor fruit quality or higher prices?

Confidential & Proprietary Copyright © 2010 The Nielsen Company What is driving how much my consumers buy over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Pre-season summerfruit loyalty was ahead of last year due to a drop in total fruit purchases preseason in 2009. Category sales recovered in the October month but summerfruit never recovered their share of sales versus last year. How is loyalty changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ Was the lower loyalty to summerfruit this season due to poor quality early season produce?

Confidential & Proprietary Copyright © 2010 The Nielsen Company There has been a steady growth in the no. of HHs making repeat purchase in the first half of the season. New Product Launch - STONE FRUIT How many households have purchased? 24 weeks to 12 Apr '10 Source: Nielsen | Homescan® (New Zealand) - Issue # 162213

Confidential & Proprietary Copyright © 2010 The Nielsen Company What impact have early summerfruit season pickings (pre November) had on the category? What do we know? – Early season household penetration is below last summers levels – But higher prices could have been driver – summerfruit loyalty took a dive below last summers levels in October and never recovered – Repeat purchase rates post November have been steady Are these results due to customer disatisfaction with early season produce? What else do we need to consider? – Impact & quality of imported summerfruit vs. NZ fruit – Other factors that changed market dynamics in October – Pricing of summerfruit this summer vs last summer – Negative impact on summerfruit value share of category

Confidential & Proprietary Copyright © 2010 The Nielsen Company On the whole hhld penetration was higher post January than last year but average spend was considerably lower. How are the key consumer drivers of sales changing over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Spend per occasion did drop immediately following December month this summer and did not stabilise until March. Did the excess supply of fruit cause the drop in average spend due to decreased fruit pricing? What is driving how much my consumers buy over time? ALL SHOPPERS - NEW ZEALAND - TOTAL FRUIT STONE FRUIT (TP) - BASED ON VALUE ($000'S)/1000 Source : ACNielsen Homescan NZ

Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit NZ Industry Review.

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Confidential & Proprietary Copyright © 2010 The Nielsen Company Summerfruit NZ Industry Review.

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