SPINS 30 Pricing Index Updated through Period 11, 2015 (four weeks ending 11/1/2015) Please note: With the Period 10 release both Natural and Conventional Food data reflect channel restatements performed by SPINS and IRI, respectively. This will lead to differences in previously reported basket levels and trends. How does the regular price of an identical set of items compare in the Natural versus Conventional Food versus Specialty Gourmet Channels? To find out, SPINS selected 30 popular grocery items to include in a SPINS 30 market basket and we are monitoring their total cost to see how it changes on an annual and period-to-period basis in each of the channels. Basket: A diverse group of 30 Natural and Organic items, including beverages, entrees, snacks, dairy, cereal, soup and frozen and refrigerated goods. Methodology: Base (i.e., regular) price totals are trended over four-week periods using Total US level SPINSscan Natural, SPINSscan Conventional Food and SPINSscan Specialty Gourmet data. Total Basket: Natural and Specialty Gourmet jump +0.4%; Conventional Food flat. In P11 the basket cost rose by +0.4% in Natural, remained unchanged in Conventional Food and increased by a +0.4% in Specialty Gourmet. Prior period values were +0.4%, +0.2% and +0.5%, respectively. The Conventional Food basket price is lower than Natural by -5.2% (previously -4.8%) and below that of Specialty Gourmet by -12.1% (previously -11.8%). In the period, 18 of the Natural channel item prices increased, nine remained the same and three decreased (a huge net +15). In Conventional Food, 12 of the item prices rose, five were unchanged and 13 fell (a net -1). In Specialty Gourmet, 18 of the item prices moved upward, one was flat and 11 declined (a net +7). SPINS LLC | 222 W. Hubbard St, Suite 300, Chicago, IL | 312.281.5100 | www.spins.com Period-to-Period Percentage Change 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% P11 P12 P13 P1 2015 P2 Natural P3 P4 Conventional P5 P6 P7 P8 P9 P10 P11 Specialty Gourmet Annual Inflation: Trends bounce upward in Natural and Specialty Gourmet, hold stable in Conventional Food. On a year ago basis, P11 prices were up by +2.5% in Natural, rose by +1.5% in Conventional Food and increased by a noteworthy +3.6% Specialty Gourmet. The P10 comparable figures were +2.2%, +1.5% and +3.0%. Year ago trends continue to generally head upward in Natural and Specialty Gourmet. SPINS LLC | 222 W. Hubbard St, Suite 300, Chicago, IL | 312.281.5100 | www.spins.com Commentary: It is interesting to note the acceleration of price increases in Natural and Specialty Gourmet. Yearto-date gains are +2.9% in each of these channels, with a strong possibility of annual increases by year end (i.e. after two more periods) hitting or exceeding +3%. Each period we compare the individual prices of the 30 basket items to see how many are more expensive vs. identically priced vs. less expensive than they were one year ago in each of the channels. Net values rose by three to four points in all channels. Here is how things stand as of P11 2015: Natural: 19 more expensive, three identically priced, eight less expensive (a net +11; previously a net +8) Conventional Food: 20 more expensive, none identically priced, 10 less expensive (a net +10; previously a net +6) Specialty Gourmet: 23 more expensive, two identically priced, five less expensive (a net +18; previously a net +14) Conventional Food trends are powered by IRI. SPINS will continue to monitor the basket every period, so stay tuned. SPINS LLC | 222 W. Hubbard St, Suite 300, Chicago, IL | 312.281.5100 | www.spins.com