WATERMELON US CONSUMER STUDY RETAILER & MEDIA Prepared by: Rose Research LLC November 8, 2011 Page § 1 YOUR LOGO HEALTH PERCEPTIONS Page § 2 YOUR LOGO Health Perceptions – Awareness A growing segment of the population (about two-fifths) is aware of the health benefits provided by watermelon. Awareness of Health Benefits - Summer 70% 65% 62% 64% 60% 63% Yes No 56% 50% 50% 50% 40% 44% 38% 36% 35% 37% 30% 20% 10% 0% 2004 2006 Q2a. Are you aware of any health benefits that watermelon provides? Page § 3 2008 2009 2010 2011 Base: Total Respondents YOUR LOGO Health Perceptions – Purchase Intent Knowing that watermelon is healthy and nutritious makes consumers more likely to purchase it in the future - - as three-quarters of them feel this way, close to an all-time high. Purchase Intent Based on Health Benefits - Summer 90% 80% 78% 77% 74% 76% 72% 71% Yes 70% No 60% Don't know 50% 40% 30% 21% 21% 20% 10% 0% 2% 18% 20% 2008 2009 8% 8% 20% 9% 16% 8% 0% 2004 2006 Q2b. Does knowing that watermelon is healthy and nutritious make you more likely to purchase watermelon in the future? Page § 4 2010 2011 Base: Total Respondents YOUR LOGO Health Perceptions – Purchase Intent (Yes) Younger watermelon purchasers (under 46) are even more apt to want to purchase watermelon because it’s healthy and nutritious. Age 79% 78% 78% 77% 76% 75% 74% 73% 73% 72% 71% 70% Under 46 Q2b. Does knowing that watermelon is healthy and nutritious make you more likely to purchase watermelon in the future? Page § 5 46+ Base: Total Respondents YOUR LOGO Health Perceptions – Specific Awareness The vast majority know that watermelon is “low in fat” (81%) and “low in calories” (75%). Knowledge that watermelon is “good for cardiovascular function” and “helping arteries and blood flow promoting heart health” is lower (nearly half know this) – but growing. 2011 Summer % 2010 Summer % 2009 Summer % 2008 Summer % Watermelon is low in fat 81 82 82 84 Watermelon is low in calories 75 76 76 80 Watermelon has vitamins 66 67 61 68 Red Watermelon contains the antioxidant lycopene 57 55 55 49 Watermelon is high in Vitamin C 49 48 45 52 Watermelon consumption is good for cardiovascular function 49 45 34 35 The amino acids in watermelon help maintain arteries and blood flow promoting heart health 42 36 29 32 Watermelon is high in Vitamin A 32 31 27 29 Watermelon is high in Vitamin B-6 27 23 20 25 (1192) (1140) (1408) (1389) BASE Q2c. What health benefits are you aware of that watermelon provides? Page § 6 Base: Respondents Aware of Watermelon Health Benefits YOUR LOGO Health Perceptions – Source of Information More of the respondents are learning about watermelon health benefits from magazines/newspapers (2011 32% vs. 2010- 27%), while the internet (28%), friends/family (23%), television (18%), nutrition labeling (16%), books (15%), supermarket/grocery store (13%) and school/classes (10%) were other sources played back. 2011 Summer % 2010 Summer % 2009 Summer % 2008 Summer % 2006 Summer % 2004 Summer % Magazines and newspapers 32 27 25 27 36 29 Internet (not via social networking) 28 27 NA NA NA NA Friends/family 23 25 22 27 9 9 Television 18 15 14 21 4 6 Nutrition labeling 16 12 9 9 5 3 Books 15 13 11 11 9 10 Supermarket/grocery store 13 11 9 11 2 3 School/classes 10 9 9 12 9 10 Doctor/healthcare provider 9 8 5 6 3 3 Internet (via social networking) 6 6 NA NA NA NA On the actual watermelon 4 4 4 2 - - Radio 4 4 2 3 1 * Weight Watchers 7 3 4 6 - - On the watermelon bin 6 3 4 4 - - Don‘t know 18 18 20 15 28 33 (1192) (1140) (1408) (1389) (1220) (2296) BASE Q3. And, do you remember where you learned or read about watermelon health attributes? Page § 7 Base: Summer Respondents Aware of Watermelon Health Benefits YOUR LOGO Health Perceptions – Lycopene Content Awareness that watermelon also contains more lycopene than any other fresh produce item continues to climb - - as more than 4 in 10 know this fact. Watermelon and Lycopene Content - Summer 80% 76% 74% Yes 70% 62% 59% 60% 58% 53% 47% 50% 41% 40% 30% No/Don't know 26% 38% 42% 24% 20% 10% 0% 2004 2006 2008 2009 Q2d. Are you aware that watermelon contains more lycopene than any other fresh produce item? Page § 8 2010 2011 Base: Respondents Who Are Aware Red Watermelon Contains Lycopene YOUR LOGO Health Perceptions – Lycopene Content (Yes) Specifically, those under the age of 46 are significantly more likely to know that watermelon contains more lycopene than any other fresh product item compared to their counterparts. Age 50% 48% 48% 46% 44% 41% 42% 40% 38% 36% Under 46 Q2d. Are you aware that watermelon contains more lycopene than any other fresh produce item? Page § 9 46+ Base: Respondents Who Are Aware Red Watermelon Contains Lycopene YOUR LOGO Health Perceptions – Benefits Associated with Lycopene Also positive, 3 in 10 say that watermelon is “good for the heart” (29%) and while one-fifth played back that it “fights/prevents cancer” (20%). Benefits Associated with Lycopene - Summer 50% 45% 45% Cancer fighting/ Prevents cancer 40% 35% 30% Eye health/Good for vision 29% Antioxidant/Fights free radicals 25% 20% Good for heart/ Cardiovascular health 20% Good for your health 15% 11% 11% 8% 10% 8% Prostate health 5% Nothing/ Don't know 0% 2011 Q2e. And, what benefits do you associate with the antioxidant lycopene? Any others? Page § 10 Base: Summer Respondents Who Are Aware Red Watermelon Contains Lycopene YOUR LOGO Health Perceptions – Heart Healthy Those who know that watermelon is heart healthy say that they’ll buy more of it in the future – about four-fifths. Awareness of Heart Healthy Benefits - Summer 90% 82% 76% 80% 77% 74% Yes 70% No 60% Don't know 50% 40% 30% 20% 13% 10% 16% 5% 18% 8% 7% 15% 8% 0% 2008 2009 2010 Q4. And, would knowing watermelon is good for your heart make you want to purchase more of it in the future? Page § 11 2011 Base: Total Respondents YOUR LOGO VALUE FOR THE MONEY Page § 12 YOUR LOGO Perceived Value for the Money Watermelon is “a great value for the money” say the consumers and this feeling is growing – three-fifths of the shoppers feel this way. Value for the Money - Summer 70% 62% 60% 61% 57% 57% Much/ Somewhat better value for the money 50% 40% 39% 39% An equal value for the money 36% 33% 30% Somewhat/ Much worse value for the money 20% 10% 5% 4% 3% 3% 0% 2008 2009 2010 Q7b. Compared to other produce items you’ve purchased this summer, do you think watermelon is…? Page § 13 2011 Base: Summer Watermelon Purchasers YOUR LOGO Perceived Value for the Money Younger watermelon purchasers (under 46) are more apt to consider watermelon a good value for the money. Age 60% 50% 52% Under 46 46 + 46% 40% 29% 30% 33% 20% 10% 3% 3% 0% Top-2 Box Equal value for $ Q7b. Compared to other produce items you’ve purchased this summer, do you think watermelon is…? Page § 14 Bottom-2 Box Base: Summer Watermelon Purchasers YOUR LOGO PURCHASE BEHAVIOR Page § 15 YOUR LOGO Purchase Behavior – Types of Fruit Watermelon purchasing is high – 7 in 10 of the consumers bought it in the past year, more than last year. Types of Fruit Purchased in Past 12 Months - Summer 78% 77% 76% 74% 74% 72% 70% 70% 70% 69% 68% 2002 2004 2006 66% 65% 66% 2008 2009 64% 2010 2011 62% 60% 58% Watermelon Q1. Which of the following fruits have you purchased in the last 12 months? Page § 16 Base: Total Respondents YOUR LOGO Purchase Behavior – Watermelon Watermelon appeals to everyone – it doesn’t really matter how old you are or how much money you make – purchasing is high across all population groups. Aware of Health Attributes Income 100% 80% 70% 60% 50% 40% 30% 20% 10% 0% 79% 80% 60% 60% 40% 20% 0% Yes No 80% 77% 75% 70% 66% 65% 60% Yes Q1. No $50k - $75k Age 70% 69% 68% 67% 66% 65% 64% 63% 62% 61% Which of the following fruits have you purchased in the last 12 months? Page § 17 62% Under $50k Children Under 18 Years OId $75k or more Education Level 69% 64% Under 46 76% 70% 46+ 70% 69% 68% 67% 66% 65% 64% 69% 66% Under College Grad. College Grad. + Base: Total Respondents YOUR LOGO Purchase Behavior – Frequency by Type Watermelon is a frequently bought item in the supermarket – and it is purchased at least once a month by the majority of the respondents. Whole Sections/Slices 2009 Summer Mini 2010 Summer 47%46% 48% 50% 50% 50% 47% 32% 34% 35% 40% 32% 34% 30% 34% 30% 40% 40% 44% 40% 37% 46% 44% 42% 45% 42% 40% 31% 29%29% 30% 26% 20% 2011 Summer 60% 60% 50% Cubes 21% 20% 20% 29% 28% 28% 27% 25% 23% 23% 20% 20% 21% 18% 15% 11% 11% 9% 10% 10% 4% 4% 6% 4% 4% 3% 6% 3% Once a 2-3 times week or a month more Once a month Once a season Once a week or more 2-3 times a month Once a month Once a season Q8a/b/c/d. How often do you buy (whole watermelon/watermelon in sections or slices/watermelon cubes/mini watermelon) during the summer? Page § 18 4% 5% 2% 5% 0% 0% 0% 12% 10% Once a 2-3 times Once a week or a month month more Once a season Base: Summer Watermelon Purchasers By Type YOUR LOGO Purchase Behavior – Reasons for Purchase With all of the consumer concerns today about the safety of food products (i.e. listeria, etc.) watermelon stands out for being considered a safe product – 4 in 10 feel this way. 2011 Summer % 2011 Import % 2010 Summer % 2010 Import % 2009 Summer % 2009 Import % 2008 Summer % 2008 Import % Tastes good/I like to eat it 81 72 79 71 81 74 85 69 It‘s cool/refreshing/juicy 79 56 78 55 78 68 83 57 It‘s in season 71 11 73 5 69 3 74 5 It‘s a good snack 66 67 64 68 64 65 72 67 My family/kids like it 54 46 53 34 53 50 62 55 It looked fresh/appealing 54 53 52 45 52 53 59 57 It‘s healthy and nutritious 56 61 55 61 50 65 56 36 It‘s fun to eat 53 45 50 42 50 41 55 45 It‘s a good value 43 26 43 16 41 12 40 12 For a picnic, party or special occasion 42 19 40 5 40 9 48 7 It is a safe food to eat 40 38 35 50 34 35 40 26 When there is an advertised or promotional price 27 21 29 18 28 15 28 21 It has a lot of vitamins 30 35 27 34 23 38 29 21 It‘s good for my heart 28 34 21 16 17 35 22 14 I saw a large display at the store 16 12 15 8 14 15 19 17 It‘s part of my diet to help me lose weight 14 21 12 24 9 21 14 10 To make a carving 7 10 6 8 6 12 6 2 To use as an ingredient in a recipe 6 14 5 3 6 6 6 - Given a sample in store 4 10 3 - 2 - 3 7 (2147) (556) (1995) (38) (2147) (34) (1913) (42) BASE Q6a. For which of the following reasons do you buy watermelon during the summer/winter months? Page § 19 Base: Watermelon Purchasers YOUR LOGO