Sweet Potato Report Brand Health & Demographics •Source: • Nielsen Homescan data until 181h of Feb 2012 • Nielsen Scantrack data (National Woolworths) until 12th Feb 2012 Sweet Potato….. During last year, Sweet Potato penetration has increased to 64.2%, with buyers spending $13.4 per year and purchasing just under 7 kilos in the same period. Sweet Potato shoppers are visiting the stores more frequently this year and have reduced their average spend per shopping trip to $2.4, while total spend reached $13.4 during the same period. Whilst shoppers have maintained their consumption size per trip, the total average volume increased from 6.6 kilos to 6.9 kilos. 2 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Sweet Potato….. Looking at Woolworths scan information, while traded volume has increased, value decreased due to an average price per kilo drop to $2.19 From a value perspective, Established Couples and Senior Couples are the most important demographic segments for Sweet Potato, accounting for almost 45% of value. While 1-2 members households contribute with almost 56% of total Sweet Potato sales, there is still opportunity to Increase Penetration within this segment. 3 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Homescan Overview 4 Copyright © 2012 The Nielsen Company. Confidential and proprietary. This report leverage two different types of information: 1) Retail Measurement Data (Scanning Sales) 2) Household Panel Information • Complementary data sources, not substitutes for one another • Address separate sets of business issues Store-Level Scanning Sales • Volume & Share Tracking • Promotion Execution & Effectiveness • Price Sensitivity • Account Performance Household Panel Information •Components of Sales •Brand Loyalty & Repeat •Demographics •Buyer Analyses •Cross Purchasing •Switching/Source of Volume 5 Copyright © 2012 The Nielsen Company. Confidential and proprietary. How does Household Panel Information (Homescan) work? Start with a panel that is statistically representative of Australian households Information is supplied via Advisor i-sights to clients to evaluate consumer and retail trends. Panel member buys products from any retail outlet and takes them home Nielsen processes the data together with stringent QC checking At home they scan the purchases via a barcode scanner - supplementing data from a barcode book for shopping trip info and non barcoded items Purchase data is automatically modemed back to Nielsen via the telephone line 6 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Key Measures 7 Copyright © 2012 The Nielsen Company. Confidential and proprietary. During last year, Sweet Potato penetration has increased by 2.6%, with Sweet Potato buyers spending $13.4 per year and purchasing just under 7 kilos in the same period This chart compares Sweet Potato What is driving how much my consumers buy? - Brand Health - Value AUS | MAT TO 18/02/2012 | Based on Value ($000s)/1000 household reach (penetration) against other vegetables. Blue represents year ago while yellow represents current year This chart shows the total average household volume purchase across various vegetable commodities. This one shows the total average household spend across various vegetable commodities. 8 Source : AC Nielsen Homescan Australia Source: Nielsen l Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Sweet Potato shoppers are visiting the stores more often this year whilst have reduced spend per trip by $0.3 and average total spend by $0.7 What is driving how much my consumers buy? - Brand Health - Value ALL SHOPPERS - AUS - MAT TO 18/02/2012 - BASED ON VALUE ($000'S)/1000 This chart compares how frequently Sweet Potato is purchased each year compared to other vegetable commodities Households are spending approximately $2.4 each time they purchase Sweet Potato Households are spending in total, approximately $13.4 per year in Sweet Potato 9 Source : AC Nielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Whilst shoppers have maintained their purchase size per shopping trip, they have increased their average consumption to almost 7kgs as a result of an increase in the number of shopping trips What is driving how much my consumers buy? - Brand Health - Value AUS | MAT TO 18/02/2012 | Based on Value ($000s)/1000 10 Source : AC Nielsen Homescan Australia Source: Nielsen l Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Latest 4 weeks have seen an increase in penetration for Vegetables to the highest level seen ion the last 2 years, while average spend are align to pre-disaster levels. How are the key consumer drivers of sales changing over time? - Brand Health - Value ALL SHOPPERS - AUS - T. Vegetables - BASED ON VALUE ($000'S)/1000 QLD Cyclone Floods Yasi This chart shows that the average household increased their spend (red line) on Vegetables in the periods during & after the natural disasters. 11 Source : AC Nielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Latest 4 weeks have seen an increase in penetration for Sweet Potato whilst average spend remains stable, reaching similar levels than a year ago. How are the key consumer drivers of sales changing over time? - Brand Health - Value ALL SHOPPERS - AUS - T. Sweet Potato/Kumara - BASED ON VALUE ($000'S)/1000 During peak seasons, average household spend decreased (red line) as the number of households increased (blue bars) QLD Cyclone Floods Yasi 12 Source : ACNielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. While spend per occasion is showing a decline trend, purchase frequency remains at the same level. Green Line: how many times consumers buy it – it is stable. What is driving how much my consumers buy over time? - Brand Health - Value ALL SHOPPERS - AUS - T. Sweet Potato/Kumara - BASED ON VALUE ($000'S)/1000 Yellow Line: How much they spend each time. For February, this index reached: $2.5 QLD Cyclone Yasi Floods Sweet Potato peak season March - August 13 Source : AC Nielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Looking at Woolworths scanning information, traded volume of Sweet Potato has increased by 10%, while traded value decreased by 5% as a result of a dip in prices to $2.19 during last MAT. Table Report | AUS WOOLWORTHS/SAFEWAY - T. Sweet Potato/Kumara | T. Fresh Frt Veg Dried Frt Nut Units of Measure: Units = UNITS (000'S) | Volume = VOLUME (000'S) KILOGRAMS | Value = VALUE ($000'S) MAT TO 19/02/2011 MAT TO 18/02/2012 VOLUME (000'S) KILOGRAMS 9,086.7 10,038.6 VALUE ($000'S) 23,243.1 21,990.6 Price per Vol (Kg) $2.56 $2.19 14 SOURCE: Nielsen Australia ScanTrack (HIFVDHAL ) Copyright © 2012 The Nielsen Company. Confidential and proprietary. Looking at trended Woolworths information, latest 3 periods are showing higher level of volume traded, however prices per kilo are lower than the same period a year ago. Blue Line: Price per Kg. Table Report | AUS WOOLWORTHS/SAFEWAY - T. Sweet Potato/Kumara | T. Fresh Frt Veg Dried Frt$2.36 Nut in latest period vs. Units of Measure: Units = UNITS (000'S) | Volume = VOLUME (000'S) KILOGRAMS | Value = VALUE ($000'S) QLD Cyclone Floods Yasi $2.50 last year. Yellow Bar: Kgs sold by Woolworths during each period. 15 SOU RCE: Nielsen Australia ScanTrack (H IFVDHAL ) Copyright © 2012 The Nielsen Company. Confidential and proprietary. Sweet Potato value growth can be traced mostly from switched buyers, most of them used to buy Potatoes, Mushroom and Other Vegetables. Brand Shifting | Based on Value AUS - SWEET POTATO/KUMARA - MAT to 18/2/2012 Most of the value growth came from buyers that switched to Sweet Potato from other commodities Category Expansion/Contraction Source: Nielsen | Homescan® (Australia) - Issue # WBSF390259_532390 Those buyers that switched to Sweet Potato, used to buy Potatoes, Mushrooms, and Other Vegetables 16 BSF390259_532390 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Demographics 17 Copyright © 2012 The Nielsen Company. Confidential and proprietary. From a value perspective, Established Couples and Senior Couples are the most important demographic segments for Sweet Potato Who buys my brand? (Lifestage) - Demographics - Value AUS - T. Sweet Potato/Kumara - MAT TO 18/02/2012 - BASED ON VALUE ($000'S)/1000 The green bar represents the percent of each demographic purchasing in latest period with the red bar representing the percentage last year 18 Source : AC Nielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. High Income households contribute with almost 45% of Sweet Potato value sales, and penetration keep increasing within this Who buys my brands? (Income) - Demographics - Value segment. AUS - T. Sweet Potato/Kumara - MAT TO 18/02/2012 - BASED ON VALUE ($000'S)/1000 High Income households have increased their importance in value at expense of Low income during the last year 19 Source : ACNielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. While 1-2 members households contribute with almost 56% of total Sweet Potato sales, there is opportunity to increase reach within this group. Who buys my brands? (Household Size) - Demographics - Value AUS - T. Sweet Potato/Kumara - MAT TO 18/02/2012 - BASED ON VALUE ($000'S)/1000 1-2 member household size is the most important demographic as they account for 56% of sales. Opportunity to increase reach as 1- 2 member household has the lowest penetration 20 Source : ACNielsen Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Share of Trade 21 Copyright © 2012 The Nielsen Company. Confidential and proprietary. While WW leads Sweet Potato share of trade with 31.4%, during last MAT Coles and ALDI were the only retailers than gained share reaching 26% and 26.2% respectively. Share of Trade - Share of Trade ALL SHOPPERS - MAT TO 18/02/2012 - T. Sweet Potato/Kumara - BASED ON VALUE ($000'S)/1000 This show the actual sales values This pie chart shows how is the Sweet percentage growth/decline behind the share Potato value distribution among different of trade changes retailers/channels of trade 22 Source : AC Nielsen | H omescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary. Sweet Potato has gained penetration across all retailers with WW having the highest penetration ALL SHOPPERS - T. Sweet Potato/Kumara Consumer KPI's Value Basis: VALUE ($000'S) Source: Nielsen Homescan 23 Copyright © 2012 The Nielsen Company. Confidential and proprietary. However Coles was the only retailer where the number of shopping trips increased. What is driving how much my consumers buy? - Brand Health - Value ALL SHOPPERS - AUS - MAT TO 18/02/2012 - BASED ON VALUE ($000'S)/1000 Source : AC Nielsen Homescan Australia 24 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Glossary 25 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Terms • Penetration – The proportion of households purchasing a product in the specified period expressed as a percentage of all households. • Average Weight of Purchase (AWOP) – The average volume/value/units of a product bought across all buyers of that product in the specified period. • Occasions Per Buyer – The average no. of times each buyer purchases the specified product in a specified period. A product/date/shop combination, eg. a household purchasing 2 identical products on a shopping trip to Woolworths constitutes a single purchase occasion. • Amount Per Occasion – Average value or units purchased on each purchase occasion. • QTR – Quarter year; rolling 13 weeks. • MAT – Moving annual total; a rolling yearly total which accumulates 52 weeks of data. • PP – Prior Period • YA – Year Ago. 26 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Lifestage Demographic Definitions Young Transitionals Adult households (no children <=17) Head of household <35 Small scale families Households with oldest child 6-11 years Start-up families Households with young children only, oldest child < 6 Bustling families Households with oldest child 12-17 years Senior Couples Two (2) or more adults (No children <=17) Head of household 60 or over Independent singles One (1) person adult household (No children <=17) Head of household >=35 Established Couples Two (2) or more adults (No children <=17) Head of household 35-59 27 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Lifestage Distribution of Households Senior Couples, 14% Young Transitionals, 15% Start Up Families,9% Established Households, 18% Independent Singles,17% Small Scale Families,11% Bustling Families,16% 28 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Scanning guide enhancements were introduced in August 2009, providing greater depth of information… 29 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Source of Growth / Decline - Bulla Premiu For Period MAT to 19/02/2011 vs YA | How to read a Source of Volume Chart 65.5 27.8 18.1 18.5 New/Lost Cat Exp/Cont Exp/Cont New/Lost Existing brand Cat New/Lost Brand Category Buyers buyers Buyers Category - Retained - New/Lost Households that The Focus Brand Gains or Losses Buyers Brand Brand purchased the experienced within the Focus Buyers Buyers category in one gains/losses Brands by period but not the from households Households who other and the who added/omitted the focus brand was increased/decrea focus brand to included in the sed their their category category purchases of the purchases. purchases.Incremental focus/ Lost brand Category Sales Switching Switching Includes Total 1.1 Total % Change in Volume households who shifted their focus brand purchases from/to alternative category items. 30 Copyright © 2012 The Nielsen Company. Confidential and proprietary. Appendix 31 Copyright © 2012 The Nielsen Company. Confidential and proprietary. What is driving grocery sales? (Account Comparison) - Bigger Picture - Value ALL SHOPPERS - TOTAL CELERY - SHARE OF TRADE ($) 32 Source : ACNielsen | Homescan Australia Copyright © 2012 The Nielsen Company. Confidential and proprietary.