1. China Market Overview Sales of consumer commodities witnessed stable growth, while China economy stepped into a sustained development period. Economy and Consumption  GDP: USD 5.6 trillion (Jan. – Sep., 2012)  Moderate GDP growth rate  Inflation concern relieved: CPI:1.7% (Oct,2012) 1.8% (Oct, 2012, food category)  Sales of consumer commodities: USD 2.69 trillion (Jan. – Oct., 2012)  Peak season: 1. Jan./Feb.: Spring Festival 2. Dec.: Christmas, New Year etc.

2. China Market Overview Market Trends China has been shaped into a key market for imported food products from the world- factory for food-exporting after processing.  Gap between import & export continued to increase from almost zero in 2006.  During first half of 2012, China food import reached USD 54.72 billion, Twice of export value.  Restructure to cultivate a market for consumption instead of processing  The U.S. Association of Food Industries has forecast that China will become the largest consumer of imported foods.

3. China Market Overview Market Trends A market with limited purchasing power has been improved to accept the access of a diversified range of imported food products.  Ever-increasing disposable income guarantees the purchasing power of imported goods.  Various premium imported foods are now widely available in China market and enjoy good sales performance.

4. China Market Overview Consumer Behavior products More exposure of foreign cultures and lifestyles has triggered Chinese consumers’ interests in imported food products. Greater External Exposure Greater External Exposure Access to internet and info tech. Awareness toward Healthy Living Awareness toward Healthy Living Easy access to internet and advanced info tech paves way for the thriving of online retailing in China market. Work-life Balance Duo-working family and fast-working pace increased the frequency of dinning-out of Chinese urban families. Growing awareness toward healthy diet and wellness lead to increasing interest in imported foods with supreme quality.

5. China Market Overview Regular Channel: Supermarkets, hotels, restaurants Emerging Channel: Online B2C website, bakery houses, TV shopping programs Distribution Channel Buying Habit Major Concern: Safety, health and wellness Action Plan: Natural without high sugar, salt and fat Willing to pay 20% more for high value item Brands:Preference for brand with recognition and positive image Country:E.U. and U.S. are favored with high standards. Product Selection Brand/Origin Awareness

6. China Market Overview Sino-U.S. Trading  China continued to be a key export destination of U.S. food and agricultural products in 2011.  Total export reached USD 21.91 billion, up by 12.82% over 2010.  The export value also broke the record since 1970, indicating the strong momentum of China’s position in trading with U.S. in the recent 5 years.