1. ZUCCHINI REGULAR ANALYSIS YEAR TO 04/10/2014

2. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 2 1. Market Overview 2. Demographics 3. Retail Health Situation by State Agenda This analysis is part of a vegetable consumer purchase data project funded by HAL using the vegetable levy and matched funds from the Australian Government.

3. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 3 Data Source – Nielsen Homescan Market – Total Australia – States of Australia – Retailers Analysis Measure – Value – Volume Periods – Last year: 52 weeks To 05/10/2013 – This year: 52 weeks To 04/10/2014 ANALYSIS PARAMETERS RESEARCH METHODOLOGY NIELSEN HOMESCAN A Panel of 10,000 Australian households Demographically and geographically representative Households electronically record their household purchases of all take-home grocery goods (fresh and packaged)

4. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 4 Copyright © 2014 The Nielsen Company. Confidential and proprietary. HIGHLIGHTS RECOMMENDATIONS Arrest overall buyer reduction especially where it is more pronounced among families. Reinforce Zucchini’s place in dinner repertoires and family meals(Colmar Brunton Aug ‘14). Coles and WW need to improve conversion levels for Zucchini relative to other vegetables. Focus recipe and meal suggestions within Traditional Australian and Italian cuisines where it is more preferred (Colmar Brunton Aug ‘14). Given the importance of the Eastern Seaboard, investigate potential sourcing or distribution constraints in this region as well as consistency of product quality. The value market share of Zucchini has grown while the volume market share has declined slightly compared to last year. The number of buying households has declined, however, their average $ spend is up likely due to inflationary pressures this year. Senior and Established Couples are the key buyers for Zucchini and account for 44% of the volume sales. However, they have decreased their consumption compared to last year. Larger households are the key buyers for Zucchini and account for more than half of it’s volume sales. All household groups have contributed to the decline in the buyer base of Zucchini this year. All retailers except IGA have grown in terms of value sales of Zucchini this year. However, Woolworths, Coles, IGA and Non-supermarkets declined in volume sales as compared to last year. More than 57% Woolworths shoppers who buy Zucchini, prefer to purchase it at Woolworths stores, whereas this conversion rate is only at 47% for Coles. Household reach of Zucchini declined across all states except in WA.

5. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 Copyright © 2014 The Nielsen Company. Confidential and proprietary. Market Overview Zucchini

6. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 6 Share of Market Volume Total Vegetables Australia Share of Market Value Total Vegetables Australia Zucchini represents 2.3% of volume and value market share this year. Its value market share has grown while the volume market share has declined slightly compared to last year. Source: Nielsen Homescan

7. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 How many Households buy annually? How much (Kg) do they buy per year? How much ($) do they spend per year? This Year Last year Source: Nielsen Homescan Zucchini lost 149,543 buying households this year coupled with a decrease in consumption. However, the average spend has increased substantially compared to last year.

8. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 How much ($) do they spend per occasion? How much (Kg) do they buy per occasion? How often do they buy annually? Source: Nielsen Homescan The decline in consumption is driven by a drop in volume per trip compared. However, the expenditure per shopping visit is up. No change can be seen in number of trips for Zucchini. This Year Last year

9. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 Source: Nielsen Homescan There is an increase in number of buyers in the latest 4 weeks compared to same period last year. However, latest month’s consumption has remained stable for Zucchini. Kg

10. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 Source: Nielsen Homescan http://www.tandfallstates.com.au/UserFiles/CMS/Resources/140708%20Food%20For%20thought.pdf Average spend has slightly dropped compared to same month last year. Note though that average $ expenditure reached a 2 year high of $4.00 in July possibly due to supply constraints*.

11. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 Source: Nielsen Homescan Changes in the average spend on Zucchini is driven by corresponding dip in spend per trip compared to last year.

12. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 Demographics Zucchini

13. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 13 Copyright © 2014 The Nielsen Company. Confidential and proprietary. LIFESTAGE SENIOR COUPLES | 2 or more adults 60+ (17.6% of population) ESTABLISHED COUPLES | 2 or more adults 35-59 (22.4% of population) INDEPENDENT SINGLES | 1 adult >35 with no children (20.9% of population) YOUNG TRANSITIONALS | Adults <35 with no children (9.2% of population) BUSTLING FAMILIES | Oldest Child 12-17 (13.9% of population) SMALL SCALE FAMILIES | Oldest Child 6-12 (9.6% of population) START UP FAMILIES | Oldest Child <6 (6.4% of population) HOUSEHOLD SIZE 1-2 MEMBER HOUSEHOLDS (58.7% of population) 3 MEMBER HOUSEHOLDS (15.9% of population) 4 MEMBER HOUSEHOLDS (15.6% of population) 5+ MEMBER HOUSEHOLDS (9.8% of population) View your consumers according to…

14. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 14 Source: Nielsen Homescan Distribution of Buyers Australia Distribution of Volume Australia Couples (Senior + Established) become more important to Zucchini, contributing towards 44% of the volume sales.

15. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 How many Households buy annually? Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan How often do they buy annually? How much (Kg) do they buy per occasion? All lifestage groups have contributed to the loss of households in Zucchini’s buyer base. Couples have decreased their consumption compared to last year. This Year Last year

16. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 Source: Nielsen Homescan Distribution of Buyers Australia Distribution of Volume Australia Larger households (3 or more members) are the key buyers for Zucchini as they account for more than half of the volume sales while comprising 46% of buyers.

17. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 How many Households buy annually? How often do they buy annually? How much (Kg) do they buy per occasion? Smaller households (1-2 members) witnessed the biggest decline of 92,486 Zucchini buying households this year. Most household sizes also show marked reduction in kg bought on average. This Year Last year Note: The difference in the bar heights for same data labels is due to the difference in decimal points. The data has been rounded up to one decimal point. Source: Nielsen Homescan

18. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 18 Copyright © 2014 The Nielsen Company. Confidential and proprietary. Retail Health Situation by State Zucchini

19. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 Share by Retailers This Year Zucchini Sales vs. Last Year This year vs. Last year Zucchini Other Supermarkets Non Supermarkets Volume Value Zucchini witnessed -5% decline in terms of volume sales, offset by a +16% growth in terms of value. This was driven by the positive performance of all channels except IGA. Source: Nielsen Homescan

20. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 Other Supermarkets Non Supermarkets Value sales growth in all retailers is driven by significant growth in the value spent per trip to purchase Zucchini. Drivers of Account Growth & Decline Year to 04/10/2014 vs Year Ago (YA)

21. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 Source: Nielsen Homescan Almost 57% of Woolworths shoppers purchasing Zucchini anywhere chose to buy at Woolworths. Account Shopper Conversion Year to 04/10/2014 | Woolworths (WW)

22. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 Source: Nielsen Homescan Coles is able to convert about 47% of its shoppers to buy Zucchini at Coles. Gap needs to be filled versus other vegetables like Celery and Sweet Corn. Account Shopper Conversion Year to 04/10/2014 | Coles

23. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 SA + NT (8%) WA (10%) VIC (26%) NSW (35%) QLD (20%) WA (8%) Average KG per Buyer Penetration this year vs. last year ( ) State share of Zucchini $ sales consumption Is there a particular State driving the category performance? Source: Nielsen Homescan Household reach and consumption for Zucchini has declined across all the Australian states except WA. VIC accounts for 26% of the national spend on Zucchini but has lost 58,883 households from its buyer base this year.

24. THANK YOU