SOUTHEAST Region

Regional Composite

REGIONALDATA REPORT

JAN – MAR2015 vs. 2014

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Methodology

• IRI gathers chain-wide sales across all RMAs (Retail Market Areas)– Regional Composite Reports reflect multi-outlet retail data. Multi-outlet reporting

includes an aggregation of the following channels: grocery, mass, club, drug, dollar and military

• Average Selling Price (ASP) is not Advertised Retail Price– Average selling price is the average of all prices including coupons, promotional

pricing, club/loyalty card deals that are given at the register at the time of purchase

• Categories:– Avocados– Total Produce: Includes avocados

• Timeframe: YTD Q1 (January – March) 2015

• Retail data provided by IRI / FreshLook Marketing

• Important Note: IRI / FreshLook Marketing periodically restates retail data, therefore this review cannot be compared or used in conjunction with prior reviews

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Southeast Region: Highlights - YTD Q1

• Overview based on the following geography:– The Southeast Region captures the Markets of Atlanta, Jacksonville, Miami, Orlando,

South Carolina and Tampa, plus additional cities not included in those Markets

• 2015 vs. 2014, avocado dollars grew +19% in Southeast and outpaced Total U.S. (+12%) by +7 points– Category dollars outpaced total produce (+2%) by +17 points– Volume increased +21%, +16 points ahead of Total U.S. – Category average selling price (ASP) declined -2% to $1.16/unit– Small Hass (4046) and bagged avocados drove dollar and volume growth, adding a

combined +$7.9MM and +7.8MM units to the category– SE small avocado ASP of $1.10/unit was +40% higher than the national average

• Lower dollars and units per store per week in Southeast presents opportunity for growth– Southeast averaged $72 and 62 units per store per week through Q1 2015

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Southeast: YTD Q1 - Avocados vs. Total Produce

• 2015 vs. 2014, avocado dollars grew +19%, +17 points ahead of total produce (+2%)

• Southeast held a 15% share of total produce dollars and a 12% share of avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate

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Southeast: YTD Q1 Avocado Retail Overview

• 2015 vs. 2014, Category dollars grew +19%, and units increased +21%– Southeast avocado dollars and volume

grew double-digits in all time periods

• 2015 vs. 2014, Category average selling price (ASP) declined -2% to $1.16/unit

Southeast Avocado Dollars and Volume Posted Double-Digit Growth Rates

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RETAIL DOLLARS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 27,380,976$ 32,344,789$ +18.1% 97,961,968$ 137,070,146$ +18.4%

4225 Large Hass #40 & #48 sizes 4,491,661$ 3,826,645$ -14.8% 158,443,718$ 201,162,247$ +3.8%

4770 X-Large Hass #36 sizes & larger 437,884$ 558,555$ +27.6% 11,943,448$ 21,547,506$ -8.0%

Other Greenskins, Pinkertons, non-Hass PLUs 5,593,392$ 6,284,928$ +12.4% 13,267,683$ 16,377,059$ +5.9%

Organic All Organic PLUs 293,588$ 506,909$ +72.7% 5,825,981$ 10,795,377$ +38.8%

Bags All bagged PLUs 5,931,661$ 8,840,152$ +49.0% 43,496,827$ 67,902,177$ +38.2%

44,129,161$ 52,361,978$ +18.7% 330,939,624$ 454,854,511$ +12.1%

RETAIL UNITS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 24,609,608 29,296,326 +19.0% 115,800,731 173,726,357 +6.2%

4225 Large Hass #40 & #48 sizes 3,694,999 3,159,348 -14.5% 125,720,805 165,206,707 -2.6%

4770 X-Large Hass #36 sizes & larger 229,462 322,900 +40.7% 6,981,647 12,219,114 -27.2%

Other Greenskins, Pinkertons, non-Hass PLUs 2,555,691 2,730,385 +6.8% 7,394,686 9,129,268 +4.9%

Organic All Organic PLUs 151,537 291,504 +92.4% 3,661,298 7,189,914 +31.4%

Bags All bagged PLUs 6,094,183 9,182,608 +50.7% 48,792,912 74,216,797 +30.4%

37,335,479 44,983,070 +20.5% 308,352,080 441,688,156 +4.9%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller $1.11 $1.10 -0.8% $0.85 $0.79 -6.7%

4225 Large Hass #40 & #48 sizes $1.22 $1.21 -0.4% $1.26 $1.22 -3.4%

4770 X-Large Hass #36 sizes & larger $1.91 $1.73 -9.4% $1.71 $1.76 +3.1%

Other Greenskins, Pinkertons, non-Hass PLUs $2.19 $2.30 +5.2% $1.79 $1.79 -0.0%

Organic All Organic PLUs $1.94 $1.74 -10.2% $1.59 $1.50 -5.6%

Bags All bagged PLUs $0.97 $0.96 -1.1% $0.89 $0.91 +2.6%

$1.18 $1.16 -1.5% $1.07 $1.03 -4.0%

TOTAL CATEGORY UNITS

Total U.S.Southeast

JAN

UA

RY -

MA

RCH

: 201

4 vs

201

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CATEGORY ASP ($/Unit)

Total U.S.Southeast

TOTAL CATEGORY DOLLARS

Total U.S.Southeast

Southeast vs. Total U.S. - YTD Q1 PLU Comparisons

• Avocado dollar sales in SE increased +19%, +7 points ahead of Total U.S. (+12%)

– Volume increased +21%, +16 points ahead of Total U.S.

• Small Hass (4046) and bagged avocados drove dollar and volume growth, adding a combined +$7.9MM and +7.8MM units to the category

– Small Hass avocados held the largest dollar share in SE and second largest share in Total U.S.

– SE small avocado ASP of $1.10/unit was +40% higher than the national average

Southeast Outpaced Total U.S. in Dollar and Volume Sales Growth Rates

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Southeast: YTD Q1 Category Per Store Per Week Averages

• Southeast had the fourth lowest dollar velocity– Southeast averaged

$72 per store per week through Q1 2015

• Southeast had the third lowest volume velocity– Southeast averaged

62 units per store per week through Q1 2015

Lower Dollars and Units Per Store Per Week in Southeast Presents Opportunity for Growth

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Southeast: 2013-Q1 through 2015-Q1Units vs. ASP

• Retail Units– The peak quarter was 2015-Q1 at 45MM units when ASP was $1.16/unit– The lowest quarter was 2013-Q4 at 28MM units when ASP was at $1.24/unit

• ASP– Lowest ASP to date occurred during 2014-Q4 at $1.13/unit– Highest ASP to date occurred during 2013-Q3 at $1.34/unit