1 Presented by Empower IT Heidelberg, Germany August 2008 Overview of the European Market Basket.

11

Presented by Empower ITHeidelberg, Germany

August 2008

Overview of the European Market Basket

22

“Here are the groceries Mom. Now can I go out and play?”

33

Let’s begin by taking a look at Europe's Performance vs

ConUS

44Source: American Logistics Association Site

Total DeCA Sales ConUS vs Europe Five-Year Trend (FY 2002 – 2007)

DeCA SalesFY07 vs FY03

Europe: +5.3%ConUS: +9.7%

Despite store closures, Europe has sustained 5.3% growth in the past 5 years

0.0

100.0

200.0

300.0

400.0

500.0

600.0

FY03 FY04 FY05 FY06 FY07

Euro

pe (M

illions)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

ConU

S (Billions)

Europe-Dollars

ConUS-Dollars

55

Total number of stores open by year

Store count includes CDCs and Nexmarts

DeCA Store Count

The majority of store closures during the past 6 years has occurred in Europe

Source: DeCA Headquarters

308 303 302 295 286 286 273 268 266 266

82 79 79 80 80 77 75 74 70 63 57

308

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

DECA Europe

In the European market there are currently 47 stores.

66

Europe Average Dollar Sales per Store

…and average sales per store in Europe have increased dramatically

Source: DeCA Headquarters & ALA Site

$6.98$7.46

$8.31

$6.32

FY04 FY05 FY06 FY07

Europe Avg Sales Per Store (Millions of $)

77

(Millions)

Sales PerformanceConUS vs Europe 52-Week Trends

Source: TotCat 52 weeks ending 6/07/08

(Millions)

Europe +0.8% -4.3%ConUS +4.8% -0.3%

$ % Chg

Pkg % Chg

52 Wk Trend vs YAG

4 Wk Pd. Ending:468

1012141618202224262830

JUL 0707

AUG04 07

SEP 0107

SEP 2907

OCT27 07

NOV24 07

DEC22 07

JAN 1908

FEB 1608

MAR15 08

APR 1208

MAY10 08

JUN 0708

Euro

pe

0

50

100

150

200

250

300

350

ConU

S

Europe-Dollars Europe-PackagesConUS-Dollars ConUS-Packages

88

Sales Performance

25% (12) of the European stores are posting greater than 10% growth over yago!

ConUS is showing similar trends in both dollar and package growth in their top stores.

99

Store Performance Europe Store Ranking


Top six stores accounted for 40% of Europe dollar volumeEurope Store Ranking based on Dollar Volume

Store Rank TOTAL CATEGORIES

Share of Total Europe $s $ Volume $ % Chg

EUROPE 323,049,536 0.8%1 RA-RAMSTEIN AB, GERMANY (E28) 10.0% 32,276,634 4.7%2 UK-RAF LAKENHEATH, ENGLAND (E1H) 8.2% 26,617,618 3.0%3 RA-VOGELWEH AB, GERMANY (E23) 7.0% 22,707,668 6.1%4 RA-HEIDELBERG, GERMANY (E2M) 5.7% 18,495,194 2.5%5 ME-AVIANO AB, ITALY (E5W) 4.4% 14,279,532 10.2%6 WB-WIESBADEN, GERMANY (E24) 4.4% 14,231,178 -1.8%7 RA-PATCH BARRACKS, GERMANY (E4V) 4.1% 13,280,908 13.9%8 ME-NAPLES, ITALY (E5X) 4.1% 13,182,632 11.1%9 RA-MANNHEIM, GERMANY (E2T) 3.9% 12,649,116 1.9%

10 RA-BAUMHOLDER, GERMANY (E27) 2.9% 9,410,792 6.3%11 WB-VILSECK, GERMANY (E41) 2.7% 8,618,887 -24.9%12 WB-GRAFENWOEHR, GERMANY (E4L) 2.6% 8,482,330 188.1%13 WB-SCHWEINFURT, GERMANY (E3W) 2.6% 8,446,152 36.3%14 UK-BITBURG AB, GERMANY (E2E) 2.6% 8,358,079 -4.2%15 UK-CHIEVRES, BELGIUM (E3K) 2.4% 7,660,814 4.3%16 ME-VICENZA, ITALY (E5Q) 2.3% 7,318,807 -5.3%17 ME-SIGONELLA, ITALY (E5V) 2.1% 6,784,543 4.4%18 UK-SCHINNEN, NTHRLND (E3V) 2.1% 6,623,360 9.2%19 WB-HANAU, GERMANY (E3P) 2.0% 6,414,362 -41.1%20 WB-BAMBERG, GERMANY (E3E) 2.0% 6,330,677 9.4%21 WB-ANSBACH, GERMANY (E4C) 1.9% 6,292,892 -2.3%22 UK-SPANGDAHLEM AB, GERMANY (E2Y) 1.9% 6,268,359 5.7%23 ME-ROTA, SPAIN (E5U) 1.7% 5,627,439 6.7%24 UK-RAF ALCONBURY, ENGLAND (E1B) 1.6% 5,188,616 4.3%25 WB-HOHENFELS, GERMANY (E4S) 1.6% 5,079,732 6.9%26 ME-INCIRLIK, TURKEY (E5Y) 1.4% 4,481,338 -7.2%

Store Rank TOTAL CATEGORIES

Share of Total Europe

$s $ Volume $ % ChgEUROPE 323,049,536 0.8%

27 UK-LAJES FIELD, AZORES (E5L) 1.4% 4,400,257 16.8%28 UK-RAF MENWITH HILL, ENGLAND (E1Q) 1.3% 4,146,997 9.9%29 WB-WUERZBURG, GERMANY (E33) 1.1% 3,429,074 -48.8%30 WB-DARMSTADT, GERMANY (E2G) 0.9% 2,750,506 -38.1%31 UK-RAF CROUGHTON, ENGLAND (E1M) 0.8% 2,510,784 -5.4%32 ME-GARMISCH, GERMANY (E4J) 0.7% 2,270,201 7.2%33 ME-CAIRO, EGYPT (E5B) 0.6% 2,045,043 -1.4%34 WB-ILLESHEIM, GERMANY (E4P) 0.6% 2,037,495 3.9%35 ME-LIVORNO, ITALY (E5J) 0.6% 1,918,176 7.3%36 UK-RAF MILDENHALL, ENGLAND (E1J) 0.6% 1,893,900 -12.7%37 RA-SEMBACH AB, GERMANY (E2Z) 0.5% 1,770,548 -16.4%38 UK-RAF FAIRFORD, ENGLAND (E1F) 0.5% 1,490,997 -0.4%39 ME-ANKARA, TURKEY (E5T) 0.4% 1,384,359 17.2%40 ME-IZMIR, TURKEY (E5H) 0.3% 1,091,394 4.1%41 ME-MINEO, ITALY (E6G) 0.3% 874,822 0.3%42 WB-DEXHEIM, GERMANY (E2H) 0.3% 870,353 -8.7%43 ME-RIYADH, SAUDI (E5M) 0.2% 805,200 4.0%44 RA-PANZER, GERMANY (E4U) 0.2% 616,656 33.0%45 RA-KELLEY BARRACKS, GERMANY (E4Q) 0.2% 594,913 38.7%46 WB-GIESSEN, GERMANY (E3Q) 0.1% 443,333 -84.8%47 RA-IDAR OBERSTEIN, GERMANY (E2N) 0.1% 214,376 -9.7%48 RA-NEUBRUECKE, GERMANY (E2U) 0.1% 162,030 24.4%49 WB-BAD NAUHEIM, GERMANY (E2D) 0.0% 86,680 -92.2%50 WB-MCCULLY BARRACKS, GERMANY (E2S) 0.0% 72,287 -62.4%51 WB-BUEDINGEN, GERMANY (E3M) 0.0% 46,882 -89.9%52 WB-GELNHAUSEN, GERMANY (E3N) 0.0% 10,577 -89.8%53 WB-BABENHAUSEN, GERMANY (E2B) 0.0% 4,049 -95.4%

1010

Category Performance

Power categories in Europe show dramatically different shopping patterns from U.S. military shoppers.

They shop the commissary for a taste of home…something to snack on, a can of soda, American chicken, and fish. They stock up for baby needs and basic household items.

1111

43.8

42.4

37.9

28.8

28.4

27.4

23.0

16.6

14.9

13.0

10.3

10.3

7.4

6.5

6.2

4.6

1.5

FROZEN FOODS

REFRIGERATED FOODS

SHELF STABLE BEVERAGES

CANNED & BOTTLED GROCERIES

DRY GROCERIES

HEALTH & BEAUTY PRODUCTS

SNACK FOODS

PAPER & PLASTIC

BABY PRODUCTS

HOUSEHOLD CLEANERS

FRESH BAKERY

HOUSEHOLD SUPPLIES

CONFECTIONERY

PET FOODS

SPECIALTY FOODS

TOBACCO

PRODUCE

Top Commodities in Europe

Dollar Volume (millions)

Commodity RankingEurope Overview


1212

$ Shr Index

To ConUS

Baby Products are twice as developed in Europe than in ConUS Tobacco indexes only 47 compared to ConUS

Commodity PerformanceEurope Overview


$ % Chg

FROZEN FOODS 0.3 5.1 127REFRIGERATED FOODS 6.1 14.2 79SHELF STABLE BEVERAGES 0.0 5.1 110CANNED & BOTTLED GROCERIES -0.6 3.2 92DRY GROCERIES 0.7 5.3 100HEALTH & BEAUTY PRODUCTS -1.1 0.4 100SNACK FOODS 0.7 5.1 103PAPER & PLASTIC -1.6 2.4 96BABY PRODUCTS 3.5 0.2 209HOUSEHOLD CLEANERS -1.3 0.2 93FRESH BAKERY -3.0 6.9 97HOUSEHOLD SUPPLIES -0.6 1.3 128CONFECTIONERY 6.6 5.6 128PET FOODS 5.8 3.5 69SPECIALTY FOODS 3.8 5.2 119TOBACCO 0.8 -12.2 47PRODUCE -25.0 10.9 36

Europe ConUS

1313

Top three categories are Beverages followed by Salty Snacks

Category PerformanceTop 15 Categories by Dollars


SHR INDEX

TOP 15 CATEGORIES $ RANK $ VOLUME$ % CHG YAGO $ RANK $ VOLUME

$ % CHG YAGO

EUROPE VS CONUS

TOTAL ALL CATEGORIES 323,049,554 0.8 3,938,738,432 4.8CARBONATED BEVERAGES 1 11,546,925 -6.0 2 104,446,288 -2.4 135WATER/ NEW AGE BEV 2 8,756,101 3.3 8 87,305,008 7.6 122CANNED/ BOTTLED JUICE/ DRINKS 3 8,736,028 2.3 7 90,766,264 10.4 117SALTY SNACKS 4 7,775,463 -0.6 9 82,164,400 5.7 115RTE CEREAL 5 7,677,032 1.3 6 93,221,016 2.8 100CONFECTIONERY II 6 7,402,380 6.6 11 72,023,008 5.7 125NON BRANDED MILK/ CREAM 7 7,113,075 1.5 3 103,900,488 27.7 83BISCUITS 8 6,749,395 0.0 5 93,584,680 4.9 88NATURAL CHEESE 9 6,745,635 10.8 10 79,401,208 18.2 104BREAD 10 6,698,883 -3.3 4 95,886,624 8.2 85FROZEN FISH/ SHRIMP/ SEAFOOD 11 6,121,184 -1.0 26 36,452,780 4.0 205DIAPERS/ TRAINING PANTS 12 6,120,675 5.8 41 27,800,638 -2.2 268INFANT & TODDLER NUTRITIONALS 13 4,906,056 0.0 42 27,744,738 -0.1 216BATH TISSUE 14 4,761,752 4.7 12 66,203,040 6.1 88HEAVY DUTY LAUNDRY DETERGENT 15 4,575,690 0.6 15 60,809,524 2.8 92

EUROPE CONUS

1414

An astounding 9.4% of European dollar sales comes from only 50 SKUs!

In the ConUS market, the top 50 best selling items account for only 4.4% of all ConUS dollar volume.

1515

Most of the top European stores carry close to the

full assortment of overall top items

Source: Empower IT, 52 Weeks End Dec 2007

Most stores have more than 9% of their sales in the top 50 items. Only

Lakenheath shows a considerably lower % of volume generated by the

top items.

Store Performance Assortment

% of Store

Dollar Vol

# of Top 50 SKUS Stocked

RA-RAMSTEIN AB, GERMANY (E28) 9.8 50

UK-RAF LAKENHEATH, ENGLAND (E1H) 7.0 46

RA-VOGELWEH AB, GERMANY (E23) 9.7 50

RA-HEIDELBERG, GERMANY (E2M) 8.6 50

WB-WIESBADEN, GERMANY (E24) 9.5 49

ME-AVIANO AB, ITALY (E5W) 10.3 49

RA-MANNHEIM, GERMANY (E2T) 9.9 50

ME-NAPLES, ITALY (E5X) 8.7 47

RA-PATCH BARRACKS, GERMANY (E4V) 8.7 50

WB-VILSECK, GERMANY (E41) 9.9 49

RA-BAUMHOLDER, GERMANY (E27) 11.6 50

WB-HANAU, GERMANY (E3P) 9.8 49

UK-BITBURG AB, GERMANY (E2E) 9.2 50

UK-CHIEVRES, BELGIUM (E3K) 8.8 47

ME-VICENZA, ITALY (E5Q) 9.8 50

WB-SCHWEINFURT, GERMANY (E3W) 9.4 49

ME-SIGONELLA, ITALY (E5V) 9.5 46

WB-ANSBACH, GERMANY (E4C) 9.8 47

UK-SCHINNEN, NTHRLND (E3V) 9.4 49

WB-BAMBERG, GERMANY (E3E) 11.0 49

1616

Rank UPC Category1 008321720517 MLKFRSH 64Z LF 2BF Milk2 008321720501 MLKFRSH 64Z 3.25BF Milk3 008321720518 MLKFRSH SKM 64Z Milk4 004130054107 WONDERBREAD 24Z ORG Bread5 030087127341 ENFAMIL LIPIL 12.9Z PWD Infant Nutritionals6 004900002890*CC CLS COKE 12/12P Soda7 004900001278 CC CLS COKE 12/24P Soda8 001210001030 TYSON 40Z BLS/SKNLS BR Frz Chicken9 072019605401 SAN BENEDTO MNRL 16Z 6P Water10 008321720727 MLKFRSH 64Z LF 1 PER HLF G Milk11 002370060984 TYSON 64Z BLS/SKNL BR Frz Chicken12 004500012508 HOMEPRIDE 24Z ORG Bread13 004500011199 WONDERBREAD 1C ORG Bread14 072019615401 SAN BENEDTO 50.7Z Water15 002820010690 MARLBORO LT NM KGS BX FT RV 1C Cigarettes16 061429965967 CULLIGAN 16.9Z 12P Water17 001210009605*TYSON 80Z HT WNGS Frz Chicken18 002370003803 TYSON 28Z CRSP CK STRP Frz Chicken19 002840004577 LAYS VRTY PK 1.12Z 24P Salty Snacks20 004900001063 DT COKE 12/24P CO Soda21 002370047652 TYSON 40Z BLS/SKNL TNDR Frz Chicken22 007007455958 SIMILAC 12.9Z PWD W/I ADV Infant Nutritionals23 002820010012 MARLBORO NM KGS BX FT RV 1C Cigarettes24 061126910802 REDBULL 8.3Z 4P Energy Drinks25 001200080996 MOUNTAIN DEW 12/12P Soda

Top 25 European Items - Dollars

Source: Empower IT, 52 Weeks End Dec 2007

Of the top 50 items…

• 9 Soda• 5 Milk• 5 Bread• 5 Frz Chicken• 4 Water• 3 Salty Snacks• 3 Infant Nutritionals • 3 Chill Juice• 2 Cigarettes

• 2 Charcoal• 2 Bacon• 1 Toilet

Paper• 1 Sour

Cream• 1 Frz Fish• 1 Energy

Drink• 1 Cheese• 1 Butter

• These 25 items generate 6.4% of all Europe dollar volume

• The top 50 generate 9.3%

Store Performance Dollar Ranking

1717Source: Empower IT, 52 Weeks End Dec 2007

Rank UPC Category1 008321720517 MLKFRSH 64Z LF 2BF Milk2 008321720501 MLKFRSH 64Z 3.25BF Milk3 004130054107 WONDERBREAD 24Z ORG Bread4 008321720518 MLKFRSH SKM 64Z Milk5 004500011199 WONDERBREAD 1C ORG Bread6 072019605401 SAN BENEDTO MNRL 16Z 6P Water7 008321720727 MLKFRSH 64Z LF 1 PER HLF G Milk8 004500012508 HOMEPRIDE 24Z ORG Bread9 004500011286 WONDERBREAD 1C ORG Bread10 003915301218 SAN BENEDTO MNRL 16.9Z Water11 007878300108 GRIMMWAY BABY CRTS 8.75Z Packaged Produce12 007047000650 YOPLAIT LT 6Z STRAWBERRY Yogurt13 007066201003 TOP RAMEN 3Z 1P CHK Oriental Noodles14 007047000654 YOPLAIT LT 6Z STRAW BANANA Yogurt15 004178900211 RAMEN 3Z 1P CHK Oriental Noodles16 072019615401 SAN BENEDTO 50.7Z Water17 007342000011 DAISY SOUR CREAM 16Z Sour Cream18 002840001390 SANTITAS 10Z Salty Snacks19 004900002890*CC CLS COKE 12/12P Soda20 007047000652 YOPLAIT LT 6Z BLUEBERRY Yogurt21 002100065883 KRAFT MAC/CHS 7.25Z ORIGINAL Prep Dinners22 007047000655 YOPLAIT LT 6Z PEACH Yogurt23 002100061223 PHILLY CREAM CHS BRK 8Z Cream Cheese24 007047000653 YOPLAIT LT 6Z CHERRY Yogurt25 004500012504 HOMEPRIDE 24Z ORG Bread

Top 25 European Items - Packages

Store Performance Package Ranking

1818

Key Category Performance Indicators

Let’s examine Key Category Performance Indicators in the European Power

Categories

• Carbonated Beverages• Water & New Age Beverages• Canned Bottled Juices• Salty Snacks• RTE Cereal• Confectionery • Biscuits• Infant/Nutritional• Diapers

1919

Carbonated BeveragesCategory Ranking Europe - #1

Category Development within Top 20 Stores

Top 20 Europe ACV Stores $ VOLUME

Store Ranking Within Category

Category Rank within Store

$ SHR TOTAL ALL

CATEGORIES

Cat Share Development Index to Europe

Cat Shr Development Index to CONUS

Avg # Items Stocked Index to Europe

CONUS (INC AK/HI) 104,446,288 2.7 100EUROPE 11,546,925 3.6 100 133 100RA-RAMSTEIN AB, GERMANY (E28) 1,126,177 1 1 3.5 97 130 121UK-RAF LAKENHEATH, ENGLAND (E1H) 993,852 2 1 3.7 103 137 113RA-VOGELWEH AB, GERMANY (E23) 743,436 3 1 3.3 92 122 106RA-HEIDELBERG, GERMANY (E2M) 660,738 4 1 3.6 100 133 105ME-AVIANO AB, ITALY (E5W) 455,213 7 2 3.2 89 119 108WB-WIESBADEN, GERMANY (E24) 503,416 6 1 3.5 97 130 93RA-PATCH BARRACKS, GERMANY (E4V) 402,151 9 1 3.0 83 111 104ME-NAPLES, ITALY (E5X) 414,960 8 1 3.1 86 115 105RA-MANNHEIM, GERMANY (E2T) 507,104 5 1 4.0 111 148 106RA-BAUMHOLDER, GERMANY (E27) 383,051 10 1 4.1 114 152 101WB-VILSECK, GERMANY (E41) 237,287 19 2 2.8 78 104 95WB-GRAFENWOEHR, GERMANY (E4L) 308,072 12 1 3.6 100 133 99WB-SCHWEINFURT, GERMANY (E3W) 302,520 13 1 3.6 100 133 105UK-BITBURG AB, GERMANY (E2E) 253,602 17 1 3.0 83 111 112UK-CHIEVRES, BELGIUM (E3K) 293,640 15 1 3.8 106 141 81ME-VICENZA, ITALY (E5Q) 199,176 22 2 2.7 75 100 97ME-SIGONELLA, ITALY (E5V) 230,393 20 2 3.4 94 126 104UK-SCHINNEN, NTHRLND (E3V) 254,626 16 1 3.8 106 141 101WB-HANAU, GERMANY (E3P) 308,704 11 1 4.8 133 178 98WB-BAMBERG, GERMANY (E3E) 242,321 18 1 3.8 106 141 93

stores outside of the Europe Top 20 which are top 20 in Carbonated Beverage UK-SPANGDAHLEM AB, GERMANY (E2Y) 301,152 14

2020

Carbonated Beverages

• Carb Bev $ sales in Europe -6.0% 52 wks, with ConUS trends down substantially less at -2.4%. The weak U.S. dollar has been a key driver for dollar volume losses, as U.S. bottled product average price has fallen substantially compared to Foreign bottled competitive product.

• With Average price down more than 11% across the category, Package sales are growing at a rapid pace , up 5.6% in 52-wk and +14.4% YTD. These trends are far outperforming the U.S. market, where package sales remain in negative growth.

• Diet Sodas have outperformed Regular Calorie items, up +11.7% 52-wk, compared to only +2.7% for regular calorie. YTD both Diet and Regular segments have growth of greater than 12%.

Category Quick Facts:

2121

Top 20 Carb Bev UPC's - Europe $

VOLUME$ % CHG YAGO

$ SHR CAT

$ SHR PT CHG CAT

YAGOPKG %

CHG YAGO

004900001278 CC CLS COKE 12/24P CO 913,994 6.2 7.9 0.9 1.5004900002890*CC CLS COKE 12/12P FRGPK 893,623 -10.1 7.7 -0.3 -10.1004900004748 CC DT COKE BLND 12/12P CO 546,844 535.8 4.7 4.0 663.2004900001063 CC DT CLS COKE 12/24P CO 491,656 12.5 4.3 0.7 21.6001200080996 PC MTDW 12/12P CTR FRGMT 441,168 -7.6 3.8 -0.1 -7.5007800008216 DP DRPPR 12/12P PPR FRGPK 426,031 -6.0 3.7 0.0 -6.2001200000017 PC PEPSI 12/24P CO 401,482 -12.6 3.5 -0.3 -14.8001200000088 PC MTDW 12/24P CTR 389,179 -2.4 3.4 0.1 12.2001200080994 PC PEPSI 12/12P CO FRGMT 348,514 -12.8 3.0 -0.2 -12.9004900004255 CC DT COKE ZERO 12/12P CO FRG PK310,969 120.0 2.7 1.5 121.9001200000053 PC DT PEPSI 12/24P CO 267,245 -18.0 2.3 -0.3 -7.9007800008316 DP DT DRPPR 12/12P PPR CLPK 257,312 -13.5 2.2 -0.2 -13.0001200080995 PC DT PEPSI 12/12P CO FRGMT 250,353 -11.2 2.2 -0.1 -1.1004900002892*CC SPRITE 12/12P LL FRGPK 228,904 -11.6 2.0 -0.1 -11.7007800008213 DP DRPPR 12/24P PPR 228,284 9.6 2.0 0.3 3.5007686000495 DP WLCHRY 12/12P GRP FRGPK 203,667 0.1 1.8 0.1 0.0004900001938 CC SPRITE 12/24P LL 190,651 50.6 1.6 0.6 45.8001200080997 PC DT MTDW 12/12P CTR FRGMT 190,154 -13.3 1.6 -0.1 -13.8007800011316 DP SNKST 12/12P ORNG FRGPK 171,404 -2.9 1.5 0.1 -2.9007800005216 DP A&W 12/12P RTBR FRG PK 161,773 -2.3 1.4 0.1 -2.5


The top 20 selling UPCs account for more than 63% of total category sales.

2222

Many stores were able to post

Dollar and Package growthfor the year, outpacing

Total Europe trends


Stongest Performing Stores - Carb Bev $ % CHG YAGO

$ CHG ACTUAL

PKG % CHG YAGO

WB-GRAFENWOEHR, GERMANY (E4L) 126.3 171,907 202.9RM-KELLEY BARRACKS, GERMANY (E4Q) 52.5 6,905 121.6RM-PANZER, GERMANY (E4U) 32.0 6,812 53.1RM-NEUBRUECKE, GERMANY (E2U) 31.9 2,188 7.4ME-ANKARA, TURKEY (E5T) 29.9 12,569 49.5WB-SCHWEINFURT, GERMANY (E3W) 29.0 68,036 32.8RM-PATCH BARRACKS, GERMANY (E4V) 19.1 64,566 33UK-LAJES FIELD, AZORES (E5L) 9.4 11,215 7.0ME-IZMIR, TURKEY (E5H) 8.9 5,047 29.9ME-MINEO, ITALY (E6G) 6.7 2,086 72.6RM-BAUMHOLDER, GERMANY (E27) 5.7 20,776 12.3UK-SCHINNEN, NTHRLND (E3V) 5.5 13,186 11.5WB-BAMBERG, GERMANY (E3E) 5.1 11,816 9.7ME-NAPLES, ITALY (E5X) 5.1 19,966 22.3UK-CHIEVRES, BELGIUM (E3K) 4.1 11,507 12.5ME-ROTA, SPAIN (E5U) 2.9 5,040 16.7ME-GARMISCH, GERMANY (E4J) 2.1 1,501 24.3UK-RAF ALCONBURY, ENGLAND (E1B) 1.8 3,542 6.0ME-SIGONELLA, ITALY (E5V) 0.9 2,052 49.3ME-LIVORNO, ITALY (E5J) 0.7 420 4.9

Stores with Both Dollar and Package Declines

$ % CHG YAGO

$ CHG ACTUAL

PKG % CHG YAGO

ME-RIYADH, SAUDI (E5M) -52.7 (5,169) -53.8WB-WUERZBURG, GERMANY (E33) -46.6 (122,727) -43.2WB-DARMSTADT, GERMANY (E2G) -35.4 (59,218) -32.4WB-VILSECK, GERMANY (E41) -43.0 (179,020) -30.7WB-HANAU, GERMANY (E3P) -33.1 (152,553) -26.3ME-CAIRO, EGYPT (E5B) -20.3 (13,252) -23.1ME-VICENZA, ITALY (E5Q) -17.1 (41,050) -20.7RM-IDAR OBERSTEIN, GERMANY (E2N) -23.1 (3,070) -20.7RM-SEMBACH AB, GERMANY (E2Z) -26.6 (27,714) -17.4WB-ANSBACH, GERMANY (E4C) -14.0 (35,824) -7UK-RAF FAIRFORD, ENGLAND (E1F) -16.9 (13,416) -5.9ME-INCIRLIK, TURKEY (E5Y) -18.9 (42,129) -5.7UK-BITBURG AB, GERMANY (E2E) -16.1 (48,787) -3.4UK-RAF MENWITH HILL, ENGLAND (E1Q) -2.9 (4,610) -1.7UK-RAF CROUGHTON, ENGLAND (E1M) -6.4 (6,870) -0.5

Dollar Declines, Maintaining Growth in Package Sales

$ % CHG YAGO

$ CHG ACTUAL

PKG % CHG YAGO

WB-ILLESHEIM, GERMANY (E4P) -0.3 -289 11.6RM-HEIDELBERG, GERMANY (E2M) -0.8 -5,330 1.6UK-SPANGDAHLEM AB, GERMANY (E2Y) -1.3 -3,945 17.2WB-WIESBADEN, GERMANY (E24) -1.3 -6,628 2.7UK-RAF LAKENHEATH, ENGLAND (E1H) -1.4 -14,190 9.4ME-AVIANO AB, ITALY (E5W) -3.0 -13,989 18.9RM-MANNHEIM, GERMANY (E2T) -3.3 -17,169 13.6WB-HOHENFELS, GERMANY (E4S) -3.7 -7,127 8.6RM-VOGELWEH AB, GERMANY (E23) -6.2 -49,051 10.6WB-DEXHEIM, GERMANY (E2H) -6.6 -3,359 1.8RM-RAMSTEIN AB, GERMANY (E28) -8.5 -105,140 8.9UK-RAF MILDENHALL, ENGLAND (E1J) -13.9 -16,701 7.3

2323

Water & New Age Beverages Category Ranking Europe - #2


$ VOLUME



$ SHR TOTAL ALL

CATEGORIES

Cat Share Development Index - Europe


Avg # Items Stocked Index Europe

CONUS (INC AK/HI) 87,305,008 2.2 100EUROPE 8,756,101 2 2.7 100 123 100RA-RAMSTEIN AB, GERMANY (E28) 972,466 1 2 3 111 136 119UK-RAF LAKENHEATH, ENGLAND (E1H) 683,322 2 4 2.6 96 118 104RA-VOGELWEH AB, GERMANY (E23) 565,917 4 4 2.5 93 114 109RA-HEIDELBERG, GERMANY (E2M) 528,141 5 2 2.9 107 132 112ME-AVIANO AB, ITALY (E5W) 647,103 3 1 4.5 167 205 109WB-WIESBADEN, GERMANY (E24) 365,561 7 3 2.6 96 118 108RA-PATCH BARRACKS, GERMANY (E4V) 347,550 8 2 2.6 96 118 111ME-NAPLES, ITALY (E5X) 287,780 9 10 2.2 81 100 108RA-MANNHEIM, GERMANY (E2T) 369,103 6 3 2.9 107 132 111RA-BAUMHOLDER, GERMANY (E27) 254,847 12 5 2.7 100 123 100WB-VILSECK, GERMANY (E41) 201,837 15 6 2.3 85 105 104WB-GRAFENWOEHR, GERMANY (E4L) 262,506 10 2 3.1 115 141 89WB-SCHWEINFURT, GERMANY (E3W) 245,219 13 2 2.9 107 132 110UK-BITBURG AB, GERMANY (E2E) 205,010 14 3 2.5 93 114 112UK-CHIEVRES, BELGIUM (E3K) 151,915 22 9 2 74 91 85ME-VICENZA, ITALY (E5Q) 182,951 17 4 2.5 93 114 104ME-SIGONELLA, ITALY (E5V) 261,964 11 1 3.9 144 177 99UK-SCHINNEN, NTHRLND (E3V) 132,613 23 8 2 74 91 87WB-HANAU, GERMANY (E3P) 167,986 18 6 2.6 96 118 92WB-BAMBERG, GERMANY (E3E) 153,425 21 5 2.4 89 109 66

stores outside of the Europe Top 20 which are top 20 in Water / New Age Bev UK-SPANGDAHLEM AB, GERMANY (E2Y) 199,683 16WB-ANSBACH, GERMANY (E4C) 161,007 19WB-HOHENFELS, GERMANY (E4S) 154,940 18

2424


Water & New Age Beverages

• TTL category sales for Europe are up +3.3% and for ConUS +7.6% , current 52-wk. YTD category growth in Europe is explosive at +13.3%.

• TTL Category growth is being driven by one key segment -- Energy Drinks, which have increased in sales by 141% YTD and share + 15 pts vs yago to 28.4% of total category sales.

• Currently Energy Drinks hold a 24% share of the distribution points among all New Age Beverages, yet account for 50% of all New Age Beverage sales. Juice Based NAB and RTD Teas are very heavy in distribution share ( 19.5 and 41% respectively) while accounting for only 7% and 28% of NAB sales. Is your store taking full advantage of the growth surge in Energy Drinks?

• Approximately 20% of total category $ volume is driven by promotion. For the PET water segment, that number jumps to almost 30%. However in the last 52-week promoted volume in PET water was down -16% dollars and -32.5% packages. Have fewer water promotions been a possible source of lost revenue opportunity for stores?

• PET Water remains one of the strongest growth categories in the ConUS market and is a key category for Europe. U.S. sales grew 6% last year, while Europe sales were down -9.6%. Flavored/Enhanced waters are driving growth in the U.S., but in Europe have not been as well received. Flavored Enhanced in Europe has 23% of category sales, but 71% of category distribution points and sales are down -13%. On the other hand, purified water products have 48% of category sales in Europe, but only 18% of distribution points and sales are down far less at -5%. Water products in some regions are likely to be much more “locally” driven. Strong European brands such as Vera, San Benedetto, and Culligan may not be reflected in the POS sales for DeCA, and likely explain low index for stores such as Naples.

2525

Opportunities abound for growth in Water; Energy drinks perform well in most all stores. Few stores lack overall category growth.

Water & New Age Beverages

ENERGYWATER PET

Dollar Growth Stores - Water/NAB Category $ % CHG YAGO $ CHG YAGO

$ % CHG YAGO

$ % CHG YAGO

EUROPE 6.0 504,079 100.5 (9.6)WB-GRAFENWOEHR, GERMANY (E4L) 225.1 198,799 548.6 191.6WB-SCHWEINFURT, GERMANY (E3W) 76.7 111,410 425.6 34.2UK-LAJES FIELD, AZORES (E5L) 50.6 29,719 272.4 14.4ME-IZMIR, TURKEY (E5H) 33.4 4,461 70.9 (25.8)RM-NEUBRUECKE, GERMANY (E2U) 28.3 1,348 103.3 0.3RM-KELLEY BARRACKS, GERMANY (E4Q) 27.5 5,329 105.3 17.6RM-PANZER, GERMANY (E4U) 25.5 4,677 54.2 5.0UK-SCHINNEN, NTHRLND (E3V) 24.0 26,144 172.2 2.9ME-RIYADH, SAUDI (E5M) 23.6 1,584 290.6 (16.1)ME-GARMISCH, GERMANY (E4J) 22.6 10,414 168.9 25.8ME-ANKARA, TURKEY (E5T) 22.1 3,897 121.0 37.9UK-SPANGDAHLEM AB, GERMANY (E2Y) 20.9 36,556 194.3 (6.9)UK-RAF ALCONBURY, ENGLAND (E1B) 17.3 13,861 155.7 10.8RM-PATCH BARRACKS, GERMANY (E4V) 16.8 51,369 99.4 10.4ME-SIGONELLA, ITALY (E5V) 15.8 35,928 78.5 (9.2)ME-MINEO, ITALY (E6G) 15.2 4,558 55.6 (13.4)ME-NAPLES, ITALY (E5X) 14.0 36,177 116.3 (2.6)UK-RAF LAKENHEATH, ENGLAND (E1H) 14.0 84,978 120.6 1.0UK-RAF MENWITH HILL, ENGLAND (E1Q) 13.6 8,243 166.2 (12.0)ME-ROTA, SPAIN (E5U) 13.6 13,159 85.6 (21.7)WB-HOHENFELS, GERMANY (E4S) 13.3 18,536 83.9 (2.5)ME-AVIANO AB, ITALY (E5W) 11.8 69,373 94.8 (14.2)WB-BAMBERG, GERMANY (E3E) 10.4 14,961 68.9 12.6RM-VOGELWEH AB, GERMANY (E23) 9.4 49,902 120.5 (8.1)RM-RAMSTEIN AB, GERMANY (E28) 9.2 83,555 108.0 (1.8)RM-MANNHEIM, GERMANY (E2T) 7.3 26,119 209.5 (21.4)ME-LIVORNO, ITALY (E5J) 7.0 4,956 61.2 15.7WB-ILLESHEIM, GERMANY (E4P) 6.9 4,426 71.4 (9.5)UK-CHIEVRES, BELGIUM (E3K) 6.8 9,767 80.3 0.5RM-HEIDELBERG, GERMANY (E2M) 6.6 33,077 134.5 (2.3)UK-BITBURG AB, GERMANY (E2E) 6.2 12,375 87.7 (14.2)UK-RAF FAIRFORD, ENGLAND (E1F) 3.1 836 74.7 (9.9)

TOTAL WATER/NEW AGE BEV

ENERGYWATER PET

Dollar Decline stores - Water / NAB Category$ % CHG YAGO

$ CHG YAGO

$ % CHG YAGO

$ % CHG YAGO

RM-BAUMHOLDER, GERMANY (E27) (0.1) -311 43.7 (13.5)ME-INCIRLIK, TURKEY (E5Y) (0.3) -317 30.4 (26.9)WB-WIESBADEN, GERMANY (E24) (0.5) -1,771 128.4 (16.3)ME-CAIRO, EGYPT (E5B) (4.1) -908 (27.0) 13.3WB-ANSBACH, GERMANY (E4C) (6.0) -10,369 72.1 (21.7)UK-RAF MILDENHALL, ENGLAND (E1J) (7.7) -4,322 45.4 (2.4)RM-SEMBACH AB, GERMANY (E2Z) (10.1) -8,098 95.3 (24.6)UK-RAF CROUGHTON, ENGLAND (E1M) (10.5) -3,890 73.1 (32.8)WB-DEXHEIM, GERMANY (E2H) (10.9) -4,788 54.5 (31.8)ME-VICENZA, ITALY (E5Q) (11.9) -24,809 83.0 (20.1)WB-VILSECK, GERMANY (E41) (30.9) -85,918 19.2 (41.8)WB-DARMSTADT, GERMANY (E2G) (32.6) -45,367 29.6 (44.2)RM-IDAR OBERSTEIN, GERMANY (E2N) (32.8) -3,060 (48.0) (36.3)WB-HANAU, GERMANY (E3P) (41.8) -112,816 24.4 (56.2)WB-WUERZBURG, GERMANY (E33) (44.6) -79,080 9.9 (53.0)

TOTAL WATER/NEW AGE BEV II

2626

Canned/Bottled Juice Drinks Category Ranking Europe - #3


$ VOLUME



$ SHR TOTAL ALL

CATEGORIES




CONUS (INC AK/ HI) 90,766,264 2.3 100EUROPE 8,736,028 3 2.7 100 117 100RA-RAMSTEIN AB, GERMANY (E28) 886,735 1 3 2.7 100 117 111UK-RAF LAKENHEATH, ENGLAND (E1H) 721,079 2 2 2.7 100 117 111RA-VOGELWEH AB, GERMANY (E23) 605,474 3 2 2.7 100 117 110RA-HEIDELBERG, GERMANY (E2M) 503,147 4 3 2.7 100 117 109ME-AVIANO AB, ITALY (E5W) 391,314 5 3 2.7 100 117 108WB-WIESBADEN, GERMANY (E24) 343,746 7 4 2.4 89 104 109RA-PATCH BARRACKS, GERMANY (E4V) 300,217 9 6 2.3 85 100 109ME-NAPLES, ITALY (E5X) 316,546 8 5 2.4 89 104 110RA-MANNHEIM, GERMANY (E2T) 373,097 6 2 2.9 107 126 109RA-BAUMHOLDER, GERMANY (E27) 294,792 10 3 3.1 115 135 104WB-VILSECK, GERMANY (E41) 208,889 13 5 2.4 89 104 106WB-GRAFENWOEHR, GERMANY (E4L) 250,024 11 3 2.9 107 126 89WB-SCHWEINFURT, GERMANY (E3W) 243,759 12 3 2.9 107 126 107UK-BITBURG AB, GERMANY (E2E) 207,939 14 2 2.5 93 109 110UK-CHIEVRES, BELGIUM (E3K) 205,369 15 2 2.7 100 117 100ME-VICENZA, ITALY (E5Q) 196,773 18 3 2.7 100 117 107ME-SIGONELLA, ITALY (E5V) 204,944 16 3 3 111 130 107UK-SCHINNEN, NTHRLND (E3V) 176,551 20 2 2.7 100 117 91WB-HANAU, GERMANY (E3P) 168,631 22 5 2.6 96 113 96WB-BAMBERG, GERMANY (E3E) 201,821 17 2 3.2 119 139 68stores outside of the Europe Top 20 which are top 20 in Canned / Bottled Juice DrinksWB-ANSBACH, GERMANY (E4C) 186,700 19

2727


• The largest segment in shelf stable juices and drinks is Juice Blends at 35%, followed by Sports Drinks at 22.3% of dollar sales.

• Sports Drinks are driving strong dollar and package growth in the category in the ConUS market (+12% and +46%). Again, the weak U.S. dollar has hampered dollar growth, but package sales for Europe are up 19.2% and share of sales in the category are up +3.9 pts. The launch of new Sports drinks such as Gatorade G2 and Accelerade appear to have brought new buyers into the segment.

• Both Juice Blends and Apple Juice show dollar increases of 3%, due a great deal to rising average product prices as production/food prices climb. Package sales fell -2.5% and -7% respectively. These trends follow closely the trends in the ConUS market.

• Promotion is extremely important to the success of the shelf stable juice category, accounting for more than 30% of category dollar volume and 37% of package volume. For Sports Drinks, the number is even greater, at 35% of dollar volume and 47% of package sales. Promoted dollars in Sports Drinks are up 39% YTD in 2008.

Canned/Bottled Juice Drinks

2828

Stores with heavily declining category sales are consistently showing strong declines in Sports Drinks

Canned/Bottled Juice Drinks

SPORTS DRINKS JUICE BL

Dollar Growth Stores $ % CHG YAGO

$ CHG ACTUAL

$ % CHG YAGO

$ % CHG YAGO

EUROPE (0.2) -23,778 (1.5) 3.0WB-GRAFENWOEHR, GERMANY (E4L) 184.8 205,195 135.9 206.1ME-RIYADH, SAUDI (E5M) 141.4 8,600 170.2 206.1WB-SCHWEINFURT, GERMANY (E3W) 35.6 76,693 28.0 39.3RM-KELLEY BARRACKS, GERMANY (E4Q) 33.6 4,836 24.5 49.1RM-PANZER, GERMANY (E4U) 26.2 4,786 20.8 30.1RM-PATCH BARRACKS, GERMANY (E4V) 26.2 74,160 41.4 28.8UK-RAF MENWITH HILL, ENGLAND (E1Q) 15.3 17,377 4.7 31.3RM-NEUBRUECKE, GERMANY (E2U) 14.3 704 (9.4) 18.3ME-GARMISCH, GERMANY (E4J) 13.6 7,787 31.4 14.6ME-LIVORNO, ITALY (E5J) 12.4 6,034 23.4 13.5ME-NAPLES, ITALY (E5X) 11.0 38,360 13.2 12.8UK-SCHINNEN, NTHRLND (E3V) 10.1 20,249 6.0 15.3ME-CAIRO, EGYPT (E5B) 9.3 4,837 (1.3) 16.9RM-RAMSTEIN AB, GERMANY (E28) 7.6 72,870 9.5 13.1WB-BAMBERG, GERMANY (E3E) 7.3 17,315 (11.6) 11.5ME-AVIANO AB, ITALY (E5W) 7.2 29,191 3.5 10.9ME-SIGONELLA, ITALY (E5V) 6.4 14,248 21.7 3.4UK-SPANGDAHLEM AB, GERMANY (E2Y) 6.3 12,075 19.6 4.9WB-ILLESHEIM, GERMANY (E4P) 6.3 4,899 (10.1) 16.0RM-VOGELWEH AB, GERMANY (E23) 6.0 40,692 2.1 5.5ME-ANKARA, TURKEY (E5T) 4.9 1,483 19.8 1.3WB-HOHENFELS, GERMANY (E4S) 4.5 7,551 (14.1) 18.1UK-RAF LAKENHEATH, ENGLAND (E1H) 4.4 35,902 19.2 3.5UK-CHIEVRES, BELGIUM (E3K) 4.4 10,620 3.8 5.2ME-ROTA, SPAIN (E5U) 4.3 7,723 7.3 9.5UK-RAF ALCONBURY, ENGLAND (E1B) 3.1 5,147 8.1 4.4UK-RAF FAIRFORD, ENGLAND (E1F) 1.2 566 (2.8) 4.9RM-HEIDELBERG, GERMANY (E2M) 0.9 5,054 5.0 2.4UK-LAJES FIELD, AZORES (E5L) 0.0 55 (12.8) 8.8

TOTAL CANNED/BOTTLED SPORTS

DRINKS JUICE BL

Dollar Decline Stores $ % CHG YAGO

$ CHG ACTUAL

$ % CHG YAGO

$ % CHG YAGO

RM-BAUMHOLDER, GERMANY (E27) (0.6) -2,071 (1.9) 1.2RM-MANNHEIM, GERMANY (E2T) (1.2) -5,260 (5.5) 5.7WB-ANSBACH, GERMANY (E4C) (2.3) -5,116 (10.5) (0.1)ME-IZMIR, TURKEY (E5H) (5.0) -1,590 (9.3) (9.5)WB-WIESBADEN, GERMANY (E24) (5.6) -24,275 (10.8) (4.8)UK-BITBURG AB, GERMANY (E2E) (5.9) -15,159 (6.8) 0.6ME-INCIRLIK, TURKEY (E5Y) (10.7) -19,258 (19.9) 0.7UK-RAF CROUGHTON, ENGLAND (E1M) (11.4) -8,421 (19.6) 0.3ME-VICENZA, ITALY (E5Q) (11.4) -29,940 (25.2) (10.8)ME-MINEO, ITALY (E6G) (13.6) -4,515 (19.8) (15.7)RM-SEMBACH AB, GERMANY (E2Z) (15.7) -10,656 (5.2) (20.1)WB-DEXHEIM, GERMANY (E2H) (17.8) -6,513 (20.2) (4.5)UK-RAF MILDENHALL, ENGLAND (E1J) (19.3) -16,657 (29.9) (4.0)RM-IDAR OBERSTEIN, GERMANY (E2N) (23.4) -2,432 (43.4) (9.8)WB-VILSECK, GERMANY (E41) (34.1) -126,417 (49.6) (26.4)WB-HANAU, GERMANY (E3P) (43.5) -146,549 (50.8) (38.0)WB-DARMSTADT, GERMANY (E2G) (46.9) -70,828 (45.3) (46.6)WB-WUERZBURG, GERMANY (E33) (52.4) -103,887 (50.4) (49.6)

TOTAL CANNED/ BOTTLED

2929

Salty Snacks Category Ranking Europe - #4


$ VOLUME



$ SHR TOTAL

ALL CATEGOR

IES




CONUS (INC AK/HI) 82,164,400 2.1 100EUROPE 7,775,463 2.4 100 114 100RA-RAMSTEIN AB, GERMANY (E28) 791,595 1 5 2.5 104 119 109UK-RAF LAKENHEATH, ENGLAND (E1H) 594,907 2 7 2.2 92 105 108RA-VOGELWEH AB, GERMANY (E23) 554,682 3 5 2.4 100 114 108RA-HEIDELBERG, GERMANY (E2M) 440,341 4 4 2.4 100 114 106ME-AVIANO AB, ITALY (E5W) 339,863 5 5 2.4 100 114 107WB-WIESBADEN, GERMANY (E24) 333,778 6 6 2.3 96 110 108RA-PATCH BARRACKS, GERMANY (E4V) 296,960 9 7 2.2 92 105 107ME-NAPLES, ITALY (E5X) 302,618 8 8 2.3 96 110 101RA-MANNHEIM, GERMANY (E2T) 309,354 7 4 2.4 100 114 107RA-BAUMHOLDER, GERMANY (E27) 243,275 10 6 2.6 108 124 102WB-VILSECK, GERMANY (E41) 183,417 14 9 2.1 88 100 106WB-GRAFENWOEHR, GERMANY (E4L) 220,104 11 4 2.6 108 124 93WB-SCHWEINFURT, GERMANY (E3W) 204,091 12 4 2.4 100 114 108UK-BITBURG AB, GERMANY (E2E) 193,394 13 5 2.3 96 110 110UK-CHIEVRES, BELGIUM (E3K) 181,930 15 6 2.4 100 114 97ME-VICENZA, ITALY (E5Q) 160,831 20 7 2.2 92 105 106ME-SIGONELLA, ITALY (E5V) 168,367 17 5 2.5 104 119 108UK-SCHINNEN, NTHRLND (E3V) 159,033 21 5 2.4 100 114 97WB-HANAU, GERMANY (E3P) 178,008 16 3 2.8 117 133 96WB-BAMBERG, GERMANY (E3E) 161,043 19 4 2.5 104 119 73stores outside of the Europe Top 20 which are top 20 in Salty Snacks UK-SPANGDAHLEM AB, GERMANY (E2Y) 162,386 18

3030

Category Quick Facts:• Salty Snacks dollar volume in Europe fell -0.6% and package sales fell -2.3% for curr 52-wk. ConUS sales grew +5.6% dollars and package sales are flat.

• Potato Chips segment showed very positive growth, increasing in both dollars +2.3% and packages +2.2%, but the highest growth rates have come from the Multi-Grain segment ( +14.3% dollars and +19.1% packages), as patrons seek healthier snack alternatives.

• Processed Chips have also contributed heavily to dollar volume gains ( +11.6% ), but package sales remain down -3.5% for the segment .

Salty Snacks

Brand SEGMENT $ % CHG YAGO

PKG % CHG YAGO

TDP % CHG YAGO

Frito-Lay Snack Mix 155.1 166.9 265.5Kettle Foods Potato Chip 35.1 15.5 22.8Andersons Pretzel 21.1 (4.8) 6.4Pringles Processed Chip 17.8 0.0 8.6Sunchips Multi-Grain 15.3 19.1 34.5Rold Gold Pretzel 12.4 17.0 (10.6)Chee-tos Cheese Puff 6.4 5.2 13.2Ruffles Potato Chip 0.6 3.4 (2.3)

Brands Driving Growth in Salty Snacks

+

Brand SEGMENT $ % CHG YAGO

PKG % CHG YAGO

TDP % CHG YAGO

Lays Variety Pack (19.3) (16.8) (0.3)Doritos Tortilla Chip (11.6) (9.0) 2.9Chex Mix Snack Mix (11.4) (25.8) (2.8)Stax Processed Chip (8.5) (12.5) 8.7Snyder's of Hanover Pretzel (5.8) (10.2) 1.1Lays Potato Chip (4.2) (1.6) 5.8

-Brands Driving Declines in Salty Snacks

3131

A majority of stores outperform Europe in dollar and package trends

Salty Snacks

Dollar Growth Stores Salty Snacks $ % CHG YAGO$ CHG YAGO

PKG % CHG YAGO

EUROPE (0.6) -47,448 (2.3)WB-GRAFENWOEHR, GERMANY (E4L) 156.1 134,157 149.1RM-NEUBRUECKE, GERMANY (E2U) 34.8 1,282 32.9RM-KELLEY BARRACKS, GERMANY (E4Q) 33.2 3,969 17.2WB-SCHWEINFURT, GERMANY (E3W) 29.8 46,890 23.5RM-PANZER, GERMANY (E4U) 24.9 4,078 27.3UK-LAJES FIELD, AZORES (E5L) 23.6 23,135 31.2RM-PATCH BARRACKS, GERMANY (E4V) 17.7 44,673 15.6ME-ANKARA, TURKEY (E5T) 17.6 4,511 15.2UK-RAF MENWITH HILL, ENGLAND (E1Q) 11.5 9,923 8.4ME-AVIANO AB, ITALY (E5W) 9.4 29,104 6.7ME-NAPLES, ITALY (E5X) 8.0 22,528 6.7UK-RAF FAIRFORD, ENGLAND (E1F) 7.0 2,435 4.0UK-SCHINNEN, NTHRLND (E3V) 6.5 9,708 5.4RM-RAMSTEIN AB, GERMANY (E28) 6.2 46,469 3.5ME-GARMISCH, GERMANY (E4J) 5.9 3,485 1.3ME-ROTA, SPAIN (E5U) 5.6 6,735 2.6RM-VOGELWEH AB, GERMANY (E23) 5.3 28,152 3.3UK-SPANGDAHLEM AB, GERMANY (E2Y) 4.9 7,630 3.9ME-SIGONELLA, ITALY (E5V) 4.7 7,518 7.2UK-RAF ALCONBURY, ENGLAND (E1B) 4.0 4,604 0.3RM-BAUMHOLDER, GERMANY (E27) 4.0 9,250 0.5WB-BAMBERG, GERMANY (E3E) 3.7 5,675 4.5UK-CHIEVRES, BELGIUM (E3K) 2.3 4,072 2.4ME-LIVORNO, ITALY (E5J) 1.6 697 1.8RM-MANNHEIM, GERMANY (E2T) 1.3 4,021 0.5ME-CAIRO, EGYPT (E5B) 0.6 266 (1.3)WB-HOHENFELS, GERMANY (E4S) 0.5 628 (0.6)ME-MINEO, ITALY (E6G) 0.2 47 2.2

Dollar Decline Stores Salty Snacks $ % CHG YAGO$ CHG YAGO

PKG % CHG YAGO

WB-WUERZBURG, GERMANY (E33) (45.0) -76,279 (45.8)WB-HANAU, GERMANY (E3P) (34.8) -95,098 (34.4)WB-VILSECK, GERMANY (E41) (33.1) -90,603 (34.9)WB-DARMSTADT, GERMANY (E2G) (33.0) -32,765 (32.5)ME-RIYADH, SAUDI (E5M) (26.9) -4,750 (34.8)RM-IDAR OBERSTEIN, GERMANY (E2N) (25.2) -1,967 (20.5)RM-SEMBACH AB, GERMANY (E2Z) (16.5) -9,561 (17.4)ME-INCIRLIK, TURKEY (E5Y) (15.8) -18,309 (19.0)UK-RAF MILDENHALL, ENGLAND (E1J) (14.9) -11,359 (17.1)ME-VICENZA, ITALY (E5Q) (10.8) -19,394 (14.1)UK-RAF CROUGHTON, ENGLAND (E1M) (9.0) -5,749 (11.0)WB-DEXHEIM, GERMANY (E2H) (7.9) -1,995 (7.8)WB-ILLESHEIM, GERMANY (E4P) (6.4) -3,352 (6.9)UK-BITBURG AB, GERMANY (E2E) (4.6) -9,387 (7.8)WB-ANSBACH, GERMANY (E4C) (2.8) -4,470 (2.7)WB-WIESBADEN, GERMANY (E24) (2.7) -9,376 (2.9)ME-IZMIR, TURKEY (E5H) (0.6) -143 0.2UK-RAF LAKENHEATH, ENGLAND (E1H) (0.5) -2,964 (4.4)RM-HEIDELBERG, GERMANY (E2M) (0.1) -604 (1.0)

3232

RTE Cereal Category Ranking Europe - #5


$ VOLUME



$ SHR TOTAL ALL

CATEGORIES




CONUS (INC AK/HI) 93,221,016 2.4 100EUROPE 7,677,032 2.4 100 100 100RA-RAMSTEIN AB, GERMANY (E28) 761,291 1 7 2.4 100 100 116UK-RAF LAKENHEATH, ENGLAND (E1H) 690,735 2 3 2.6 108 108 111RA-VOGELWEH AB, GERMANY (E23) 540,160 3 6 2.4 100 100 106RA-HEIDELBERG, GERMANY (E2M) 420,643 4 5 2.3 96 96 110ME-AVIANO AB, ITALY (E5W) 321,930 7 7 2.3 96 96 107WB-WIESBADEN, GERMANY (E24) 336,978 6 5 2.4 100 100 111RA-PATCH BARRACKS, GERMANY (E4V) 343,454 5 3 2.6 108 108 111ME-NAPLES, ITALY (E5X) 315,953 8 6 2.4 100 100 112RA-MANNHEIM, GERMANY (E2T) 291,036 9 6 2.3 96 96 110RA-BAUMHOLDER, GERMANY (E27) 216,738 10 7 2.3 96 96 99WB-VILSECK, GERMANY (E41) 201,757 12 7 2.3 96 96 112WB-GRAFENWOEHR, GERMANY (E4L) 193,336 15 7 2.3 96 96 91WB-SCHWEINFURT, GERMANY (E3W) 196,342 13 5 2.3 96 96 110UK-BITBURG AB, GERMANY (E2E) 202,939 11 4 2.4 100 100 110UK-CHIEVRES, BELGIUM (E3K) 195,839 14 3 2.6 108 108 93ME-VICENZA, ITALY (E5Q) 182,080 16 5 2.5 104 104 108ME-SIGONELLA, ITALY (E5V) 141,378 20 9 2.1 88 88 107UK-SCHINNEN, NTHRLND (E3V) 171,508 17 3 2.6 108 108 82WB-HANAU, GERMANY (E3P) 134,347 23 9 2.1 88 88 86WB-BAMBERG, GERMANY (E3E) 151,864 18 6 2.4 100 100 65stores outside of the Europe Top 20 which are top 20 in RTE Cereal :UK-SPANGDAHLEM AB, GERMANY (E2Y) 145,159 19

3333

Category Quick Facts:• In Europe, Total RTE Cereal is down -2.8% in packages, up +1.8% in dollars.

• Losses on the Kraft cereals are driving declines, with total Kraft down -17.1% in packages and -3.2% in dollars vs year ago. Also down are Ralston (-14.4% dollars, -14.7% packages) and Malt-O-Meal (-7.3% packages). Trends are similar for all players except Ralston, which is showing strong growth in ConUS.

• Ralston’s declines are being driven by deletions on a number of SKUs.

• 37% Of RTE Cereal dollars were sold on promotion during the latest 52-weeks. >% Product Sold on Promotion <% Product Sold on Promotion

RAMSTEIN AB, GERMANY (E28) 43.1 DEXHEIM, GERMANY (E2H) 42.3BAMBERG, GERMANY (E3E) 42.0VOGELWEH AB, GERMANY (E23) 42.0ANSBACH, GERMANY (E4C) 40.8VILSECK, GERMANY (E41) 40.5INCIRLIK, TURKEY (E5Y) 39.0MANNHEIM, GERMANY (E2T) 39.0BITBURG AB, GERMANY (E2E) 38.9SEMBACH AB, GERMANY (E2Z) 38.7

KELLEY BARRACKS, GERMANY (E4Q)26.3

LAJES FIELD, AZORES (E5L) 27.6WUERZBURG, GERMANY (E33) 29.3NEUBRUECKE, GERMANY (E2U) 29.5MINEO, ITALY (E6G) 29.6RAF MENWITH HILL, ENGLAND (E1Q)

29.8RIYADH, SAUDI (E5M) 30.3CAIRO, EGYPT (E5B) 30.5LIVORNO, ITALY (E5J) 31.2NAPLES, ITALY (E5X) 31.6Source: Empower IT, 52-Week P/E July 5, 2008

RTE Cereal

3434

Among the larger stores, more stores outpaced total Europe performance; however, several of the stores that declined

posted significant declines.

Source: Empower IT, 52-Week P/E July 5, 2008

RTE Cereal

$ % Change $ Chg

EUROPE 1.8 134,951WB-GRAFENWOEHR, GERMANY (E4L) 193.1 137,898WB-SCHWEINFURT, GERMANY (E3W) 46.3 63,878RM-PATCH BARRACKS, GERMANY (E4V) 21.5 61,990UK-LAJES FIELD, AZORES (E5L) 13.6 11,840ME-AVIANO AB, ITALY (E5W) 13.5 39,033UK-SCHINNEN, NTHRLND (E3V) 11.8 18,217ME-LIVORNO, ITALY (E5J) 11.3 4,677ME-NAPLES, ITALY (E5X) 11.2 32,038UK-RAF MENWITH HILL, ENGLAND (E1Q) 10.1 11,156ME-SIGONELLA, ITALY (E5V) 9.9 12,814RM-RAMSTEIN AB, GERMANY (E28) 7.5 53,862WB-HOHENFELS, GERMANY (E4S) 7.4 7,855RM-VOGELWEH AB, GERMANY (E23) 7.2 36,449ME-ROTA, SPAIN (E5U) 6.9 8,418UK-RAF ALCONBURY, ENGLAND (E1B) 6.8 8,989UK-RAF LAKENHEATH, ENGLAND (E1H) 6.4 41,837RM-MANNHEIM, GERMANY (E2T) 3.8 10,771UK-CHIEVRES, BELGIUM (E3K) 3.8 7,236UK-SPANGDAHLEM AB, GERMANY (E2Y) 3.0 4,226WB-BAMBERG, GERMANY (E3E) 2.7 3,960RM-BAUMHOLDER, GERMANY (E27) 2.0 4,147ME-CAIRO, EGYPT (E5B) 1.2 513ME-GARMISCH, GERMANY (E4J) 0.8 458UK-RAF CROUGHTON, ENGLAND (E1M) 0.7 457RM-HEIDELBERG, GERMANY (E2M) 0.2 676UK-BITBURG AB, GERMANY (E2E) -0.8 -1,743WB-WIESBADEN, GERMANY (E24) -1.1 -3,621

$ % Change $ Chg

EUROPE 1.8 134,951ME-CAIRO, EGYPT (E5B) 1.2 513ME-GARMISCH, GERMANY (E4J) 0.8 458UK-RAF CROUGHTON, ENGLAND (E1M) 0.7 457RM-HEIDELBERG, GERMANY (E2M) 0.2 676UK-BITBURG AB, GERMANY (E2E) -0.8 -1,743WB-WIESBADEN, GERMANY (E24) -1.1 -3,621WB-ILLESHEIM, GERMANY (E4P) -2.3 -1,101WB-ANSBACH, GERMANY (E4C) -3.4 -4,875ME-VICENZA, ITALY (E5Q) -5.3 -10,288ME-INCIRLIK, TURKEY (E5Y) -8.3 -8,289WB-VILSECK, GERMANY (E41) -32.2 -91,212WB-DARMSTADT, GERMANY (E2G) -44.3 -47,889WB-HANAU, GERMANY (E3P) -46.3 -107,918WB-WUERZBURG, GERMANY (E33) -52.6 -76,225

3535

Confectionery Category Ranking Europe - #6


$ VOLUME



$ SHR TOTAL ALL

CATEGORIES




CONUS (INC AK/ HI) 72,023,008 1.8 100EUROPE 7,402,380 2.3 100 128 100RA-RAMSTEIN AB, GERMANY (E28) 776,939 1 6 2.4 104 133 116UK-RAF LAKENHEATH, ENGLAND (E1H) 599,005 2 6 2.3 100 128 119RA-VOGELWEH AB, GERMANY (E23) 425,709 3 13 1.9 83 106 99RA-HEIDELBERG, GERMANY (E2M) 411,514 4 7 2.2 96 122 108ME-AVIANO AB, ITALY (E5W) 313,859 6 8 2.2 96 122 115WB-WIESBADEN, GERMANY (E24) 309,262 7 9 2.2 96 122 111RA-PATCH BARRACKS, GERMANY (E4V) 284,374 9 8 2.1 91 117 108ME-NAPLES, ITALY (E5X) 316,923 5 4 2.4 104 133 104RA-MANNHEIM, GERMANY (E2T) 285,838 8 7 2.3 100 128 107RA-BAUMHOLDER, GERMANY (E27) 192,393 10 11 2 87 111 108WB-VILSECK, GERMANY (E41) 187,257 11 8 2.2 96 122 96WB-GRAFENWOEHR, GERMANY (E4L) 186,707 13 8 2.2 96 122 87WB-SCHWEINFURT, GERMANY (E3W) 186,364 14 9 2.2 96 122 109UK-BITBURG AB, GERMANY (E2E) 186,885 12 7 2.2 96 122 114UK-CHIEVRES, BELGIUM (E3K) 164,387 16 8 2.1 91 117 94ME-VICENZA, ITALY (E5Q) 149,523 20 11 2 87 111 103ME-SIGONELLA, ITALY (E5V) 151,938 19 7 2.2 96 122 107UK-SCHINNEN, NTHRLND (E3V) 128,769 23 10 1.9 83 106 86WB-HANAU, GERMANY (E3P) 174,322 15 4 2.7 117 150 88WB-BAMBERG, GERMANY (E3E) 130,483 22 13 2.1 91 117 66stores outside of the Europe Top 20 which are top 20 in ConfectionaryWB-ANSBACH, GERMANY (E4C) 155,007 17UK-LAJES FIELD, AZORES (E5L) 154,097 18

3636

• Total Confectionery dollars are +6.3% on package growth of +1.3% in Europe. Growth is being driven by Chocolate (+5.9% dollars), Gum (+5.9% dollars), and Non-Chocolate (++12.5% dollars). The only segment posting decline is the very small Mints segment (-20.1% dollars).

• The Gondola portion of category sales accounts for 65% of total dollar sales and is posting growth of +4.9%. Seasonal sales account for 27% of dollars and are posting growth of +15.2% v. year ago. Front End Confectionery (-8.1% of dollars) is down -7.2% v. year ago.

• Five Highest Growth and Decline Brands (Actual Dollars):



Confectionery

$ % Chg $ ChgCHOCOLATE MARS SNACKFOOD M & M̀S 23.7 142,629CHOCOLATE MARS SNACKFOOD DOVE 78.7 74,741CHOCOLATE KRAFT FOODS PLANTERS 662.4 73,231GUM WM WRIGLEY JR COMPANY ORBIT 41.3 65,466GUM WM WRIGLEY JR COMPANY 5 0.0 55,015

$ % Chg $ ChgCHOCOLATE FERRERO ROCHER -72.9 -49,879CHOCOLATE HERSHEY COMPANY KISSES -10.3 -36,442GUM CADBURY ADAMS TRIDENT -27.0 -31,077CHOCOLATE HERSHEY CO CHOCOLATE -10.5 -29,355MINTS WM WRIGLEY JR COMPANY ALTOIDS -54.4 -28,288

3737

Most of the larger stores posted dollar gains – significant losses were seen in only a select few stores


Confectionery

$ % Chg $ ChangeEUROPE 6.3 440,530WB-GRAFENWOEHR, GERMANY (E4L) 163.9 120,336WB-SCHWEINFURT, GERMANY (E3W) 48.1 61,284RA-BAUMHOLDER, GERMANY (E27) 36.5 51,631UK-LAJES FIELD, AZORES (E5L) 27.9 33,343RA-VOGELWEH AB, GERMANY (E23) 18.3 66,711UK-SCHINNEN, NTHRLND (E3V) 16.4 18,420WB-BAMBERG, GERMANY (E3E) 13.1 15,082WB-WIESBADEN, GERMANY (E24) 13.1 36,327RA-HEIDELBERG, GERMANY (E2M) 12.5 45,890ME-AVIANO AB, ITALY (E5W) 12.1 33,903WB-HOHENFELS, GERMANY (E4S) 11.9 13,562UK-RAF LAKENHEATH, ENGLAND (E1H) 10.6 57,673ME-INCIRLIK, TURKEY (E5Y) 9.1 10,200UK-RAF MENWITH HILL, ENGLAND (E1Q) 9.0 8,156RA-RAMSTEIN AB, GERMANY (E28) 8.7 62,483RA-MANNHEIM, GERMANY (E2T) 8.2 21,286ME-LIVORNO, ITALY (E5J) 8.1 3,471RA-PATCH BARRACKS, GERMANY (E4V) 8.1 21,476ME-GARMISCH, GERMANY (E4J) 7.3 4,202ME-CAIRO, EGYPT (E5B) 7.2 5,606

$ % Chg $ ChangeEUROPE 6.3 440,530UK-RAF ALCONBURY, ENGLAND (E1B) 5.6 6,760ME-NAPLES, ITALY (E5X) 5.5 16,620ME-ROTA, SPAIN (E5U) 3.6 4,790ME-SIGONELLA, ITALY (E5V) 2.6 3,838UK-BITBURG AB, GERMANY (E2E) 1.8 3,395ME-VICENZA, ITALY (E5Q) 0.8 1,140UK-CHIEVRES, BELGIUM (E3K) 0.6 1,038WB-ANSBACH, GERMANY (E4C) 0.5 809WB-ILLESHEIM, GERMANY (E4P) 0.5 153UK-SPANGDAHLEM AB, GERMANY (E2Y) -3.2 -4,184UK-RAF CROUGHTON, ENGLAND (E1M) -8.2 -5,033WB-VILSECK, GERMANY (E41) -16.6 -36,356WB-HANAU, GERMANY (E3P) -27.2 -63,289WB-DARMSTADT, GERMANY (E2G) -28.5 -25,609WB-WUERZBURG, GERMANY (E33) -42.2 -67,728

3838

Biscuits Category Ranking Europe - #8


$ VOLUME



$ SHR TOTAL ALL CATEGORIE

S




CONUS (INC AK/ HI) 93,584,680 2.4 100EUROPE 6,749,395 2.1 100 88 100RA-RAMSTEIN AB, GERMANY (E28) 700,076 1 8 2.2 105 92 116UK-RAF LAKENHEATH, ENGLAND (E1H) 540,007 2 9 2.0 95 83 113RA-VOGELWEH AB, GERMANY (E23) 469,473 3 8 2.1 100 88 113RA-HEIDELBERG, GERMANY (E2M) 362,499 4 11 2.0 95 83 112ME-AVIANO AB, ITALY (E5W) 288,123 6 9 2.0 95 83 111WB-WIESBADEN, GERMANY (E24) 318,951 5 7 2.2 105 92 108RA-PATCH BARRACKS, GERMANY (E4V) 279,036 7 9 2.1 100 88 107ME-NAPLES, ITALY (E5X) 267,389 8 11 2.0 95 83 108RA-MANNHEIM, GERMANY (E2T) 253,643 9 11 2.0 95 83 110RA-BAUMHOLDER, GERMANY (E27) 173,381 14 12 1.8 86 75 102WB-VILSECK, GERMANY (E41) 181,279 12 10 2.1 100 88 109WB-GRAFENWOEHR, GERMANY (E4L) 181,813 11 11 2.1 100 88 86WB-SCHWEINFURT, GERMANY (E3W) 160,996 15 13 1.9 90 79 101UK-BITBURG AB, GERMANY (E2E) 181,092 13 8 2.2 105 92 113UK-CHIEVRES, BELGIUM (E3K) 186,631 10 5 2.4 114 100 99ME-VICENZA, ITALY (E5Q) 151,154 16 10 2.1 100 88 107ME-SIGONELLA, ITALY (E5V) 138,472 19 10 2.0 95 83 110UK-SCHINNEN, NTHRLND (E3V) 141,523 18 7 2.1 100 88 93WB-HANAU, GERMANY (E3P) 145,184 17 7 2.3 110 96 96WB-BAMBERG, GERMANY (E3E) 134,608 20 10 2.1 100 88 54

3939


• Pack sales movement is split exactly evenly between Cookies and Crackers in Europe. Pack losses in Cookies (-4.9%) is driving Total Biscuit declines of -2.4%. Cracker pack sales are up nominally (+0.3%). Dollar volume is off very slightly in both segments, resulting in category dollar declines.

• All manufacturers, except Pepperidge Farm, show pack declines in Europe vs year ago. More than 85% of total category sales are moved by Nabisco and Kellogg’s. Nabisco shows dollar increases of +0.5% while Kellogg’s is down -2.9%.

• Five Highest Growth and Decline Brands by Segment (Actual Dollars):


Biscuits

$ % Chg $ ChgCOOKIE NABISCO OREO 8.7 62,783 COOKIE NABISCO LORNA DOONE 536.6 25,953 COOKIE KEEBLER DUNKIN DELIGHTS 570.8 24,980 COOKIE KEEBLER FUDGE SHOPPE 13.7 17,357 COOKIE PEPPERIDGE FARM DISTINCTIVE NEW 16,623

$ % Chg $ ChgCOOKIE KEEBLER SOFT BATCH -46.7 (45,624) COOKIE NABISCO SNACKWELL̀ S -48.2 (35,624) COOKIE NABISCO NUTTER BUTTER -24.2 (30,551) COOKIE KEEBLER EL FUDGE -97.3 (19,502) COOKIE KEEBLER CHIPS DELUXE -9.3 (14,121)

$ % Chg $ ChgCRACKER NABISCO RITZ 12.6 61,275 CRACKER KELLOGGS BRAND ALL BRAN 457.4 35,969 CRACKER NABISCO TRISCUIT 10.1 23,889 CRACKER PEPPERIDGE FARM GOLDFISH 9.0 20,115 CRACKER NABISCO PREMIUM SOUP 752.0 19,424

$ % Chg $ ChgCRACKER NABISCO HARVEST CRISPS -90.9 (30,383) CRACKER NABISCO WHEAT THIN -9.0 (28,242) CRACKER NABISCO PITA CHIPS -100.0 (26,684) CRACKER NABISCO HONEY MAID -9.5 (21,732) CRACKER CHEEZ-IT TWISTERZ -100.0 (19,477)

4040

Infant/Toddler Nutritionals Category Ranking Europe - #13


$ VOLUME



$ SHR TOTAL ALL

CATEGORIES




CONUS (INC AK/ HI) 27,744,738 0.7 100EUROPE 4,906,056 1.5 100 214 100RA-RAMSTEIN AB, GERMANY (E28) 419,803 1 17 1.3 87 186 125UK-RAF LAKENHEATH, ENGLAND (E1H) 390,984 2 14 1.5 100 214 124RA-VOGELWEH AB, GERMANY (E23) 363,331 3 14 1.6 107 229 125RA-HEIDELBERG, GERMANY (E2M) 202,859 8 24 1.1 73 157 122ME-AVIANO AB, ITALY (E5W) 208,459 7 13 1.5 100 214 105WB-WIESBADEN, GERMANY (E24) 196,604 10 16 1.4 93 200 115RA-PATCH BARRACKS, GERMANY (E4V) 125,598 17 26 0.9 60 129 101ME-NAPLES, ITALY (E5X) 173,463 12 17 1.3 87 186 110RA-MANNHEIM, GERMANY (E2T) 234,778 6 12 1.9 127 271 123RA-BAUMHOLDER, GERMANY (E27) 273,902 4 4 2.9 193 414 111WB-VILSECK, GERMANY (E41) 253,244 5 1 2.9 193 414 110WB-GRAFENWOEHR, GERMANY (E4L) 198,185 9 6 2.3 153 329 95WB-SCHWEINFURT, GERMANY (E3W) 187,758 11 8 2.2 147 314 102UK-BITBURG AB, GERMANY (E2E) 134,741 15 14 1.6 107 229 104UK-CHIEVRES, BELGIUM (E3K) 76,864 22 25 1 67 143 93ME-VICENZA, ITALY (E5Q) 134,425 16 13 1.8 120 257 97ME-SIGONELLA, ITALY (E5V) 88,267 19 17 1.3 87 186 78UK-SCHINNEN, NTHRLND (E3V) 71,393 24 21 1.1 73 157 76WB-HANAU, GERMANY (E3P) 69,317 25 22 1.1 73 157 80WB-BAMBERG, GERMANY (E3E) 169,020 13 3 2.7 180 386 78stores outside of the Europe Top 20 which are top 20 in Infant / Toddler Nutritionals : WB-ANSBACH, GERMANY (E4C) 141,763 14UK-SPANGDAHLEM AB, GERMANY (E2Y) 118,507 18

4141


• Total Infant/Toddler Nutritionals is down -9.1% in package sales, but down only -0.1% in dollars for the year. Trends show a distinct switch from traditional Milk and Soy Formulas to Mild Milk Based and Specialty Formulas. That said, Milk Formula remains the largest overall segment. Toddler Formula and Toddler Nutrition show strong pack and dollar gains.

• With space at a premium, it is not surprising that distribution levels on traditional Milk and Soy formulas were reduced; however, given that consumer purchase of Mild Milk Based and Specialty Formulas have not offset those declines, it may be that consumers are not finding their desired formula in the commissary.


Infant/Toddler Nutritionals

$ Vol $ % Chg $ Chg Pkg Vol Pkg % Chg Pkg Chg Cum ACVCum ACV

% Chg

INFANT & TODDLER NUTRITIONALS 4,901,626 -0.1 -3,219 427,057 -9.1 -42,969 4,041 -4.8MILK FORMULA 3,290,900 -5.8 -201,364 280,921 -16 -53,372 1,647 -17.2

SOY FORMULA 447,236 -12.2 -62,342 42,984 -13.7 -6,808 658 -5.1

MILD MILK BASED 429,589 44.8 132,975 38,176 35.1 9,925 493 13.0

TODDLER FORMULA 277,841 41.0 80,805 19,368 15.5 2,604 435 17.7

SPECIALTY FORMULA 206,681 16.6 29,382 11,213 11.1 1,118 296 11.6

TODDLER NUTRITION 184,523 7.2 12,332 20,419 14.7 2,618 335 5.1

FLUID REPLACEMENT 64,857 8.3 4,993 13,976 7.3 946 178 1.8

4242

Diapers Category Ranking Europe - #12


$ VOLUME



$ SHR TOTAL

ALL CATEGOR

IES




CONUS (INC AK/ HI) 27,800,638 0.7 100EUROPE 6,120,675 1.9 100 271 100RA-RAMSTEIN AB, GERMANY (E28) 550,163 2 12 1.7 89 243 118UK-RAF LAKENHEATH, ENGLAND (E1H) 568,920 1 8 2.1 111 300 111RA-VOGELWEH AB, GERMANY (E23) 457,726 3 10 2 105 286 110RA-HEIDELBERG, GERMANY (E2M) 289,723 5 12 1.6 84 229 111ME-AVIANO AB, ITALY (E5W) 266,031 6 10 1.9 100 271 110WB-WIESBADEN, GERMANY (E24) 242,371 8 12 1.7 89 243 110RA-PATCH BARRACKS, GERMANY (E4V) 244,329 7 12 1.8 95 257 113ME-NAPLES, ITALY (E5X) 324,891 4 2 2.5 132 357 105RA-MANNHEIM, GERMANY (E2T) 227,669 9 14 1.8 95 257 104RA-BAUMHOLDER, GERMANY (E27) 202,709 11 9 2.2 116 314 100WB-VILSECK, GERMANY (E41) 224,530 10 3 2.6 137 371 106WB-GRAFENWOEHR, GERMANY (E4L) 185,004 13 10 2.2 116 314 86WB-SCHWEINFURT, GERMANY (E3W) 195,786 12 7 2.3 121 329 114UK-BITBURG AB, GERMANY (E2E) 167,991 15 10 2.0 105 286 112UK-CHIEVRES, BELGIUM (E3K) 124,301 19 12 1.6 84 229 96ME-VICENZA, ITALY (E5Q) 171,293 14 6 2.3 121 329 110ME-SIGONELLA, ITALY (E5V) 142,574 16 8 2.1 111 300 110UK-SCHINNEN, NTHRLND (E3V) 122,484 20 11 1.8 95 257 97WB-HANAU, GERMANY (E3P) 90,320 25 13 1.4 74 200 95WB-BAMBERG, GERMANY (E3E) 131,554 18 12 2.1 111 300 71stores outside of the Europe Top 20 which are top 20 in DiapersWB-ANSBACH, GERMANY (E4C) 17 139,105

4343

• Total Diapers/Training Pants is down -6.8% in packages and +5.8% in dollars. Diapers (-8.5% packages), which account for 82% of the dollars and 75% of packages, is driving pack declines and dollar increases (+7.2%). Training pants are down slightly in both packages (-1.3%) and dollars (-0.3%).

• P&G (-14.3% packagers, +3.1% dollars) is driving the category’s overall pack decline, while Kimberly Clark has posted pack (+2.1%) and dollar (+10.0%) gains.

Source: Empower IT, 52-Week P/E June 7, 2008

Diapers


4444

Differences in Seasonality between ConUS and Europe

Seasonality in some highly seasonal categories is slightly off-shifted in Europe. Traditional “summer” categories seem to begin their upward shift much earlier, peak and then fall off before ConUS.

With the variance it is important to make sure that product displays are up early (or retained later) and special pricing programs are available for those early adopters.

4545

C/C/A/S Seasonality Looks Different in Europe, with Increased Sales Lasting Longer into the Spring and

Starting Later in the Winter$ SDI—ConUS v. Europe

SeasonalityEurope Weekly $ Sales Index

Source: Empower IT, Inc. 2007 Weekly Sales

Cough/Cold/Allergy/SinusCough/Cold/Allergy/Sinus

0

20

40

60

80

100

120

140

160

Wk

Jan

06 0

7

Wk

Jan

20 0

7

Wk

Feb

03 0

7

Wk

Feb

17 0

7

Wk

Mar

03 0

7

Wk

Mar

17 0

7

Wk

Mar

31 0

7

Wk

Apr

14 0

7

Wk

Apr

28 0

7

Wk

May

12 0

7

Wk

May

26 0

7

Wk

Jun

09 0

7

Wk

Jun

23 0

7

Wk

Jul 07

07

Wk

Jul 21

07

Wk

Aug

04 0

7

Wk

Aug

18 0

7

Wk

Sep

01 0

7

Wk

Sep

15 0

7

Wk

Sep

29 0

7

Wk

Oct

13 0

7

Wk

Oct

27 0

7

Wk

Nov

10 0

7

Wk

Nov

24 0

7

Wk

Dec

08 0

7

Wk

Dec

22 0

7

ConUS Europe

4646

While Suncare Presents Much More of a Balanced Bell Curve in ConUS With Peak Sales around Memorial Day,

European Suncare Sales are Much More Strongly Concentrated in Mid/Late-April$ SDI—ConUS v. Europe



SuncareSuncare

0

100

200

300

400

500

600

Wk

Jan

06 0

7

Wk

Jan

20 0

7

Wk

Feb

03 0

7

Wk

Feb

17 0

7

Wk

Mar

03 0

7

Wk

Mar

17 0

7

Wk

Mar

31 0

7

Wk

Apr

14 0

7

Wk

Apr

28 0

7

Wk

May

12 0

7

Wk

May

26 0

7

Wk

Jun

09 0

7

Wk

Jun

23 0

7

Wk

Jul 07

07

Wk

Jul 21

07

Wk

Aug

04 0

7

Wk

Aug

18 0

7

Wk

Sep

01 0

7

Wk

Sep

15 0

7

Wk

Sep

29 0

7

Wk

Oct

13 0

7

Wk

Oct

27 0

7

Wk

Nov

10 0

7

Wk

Nov

24 0

7

Wk

Dec

08 0

7

Wk

Dec

22 0

7

ConUS Europe

4747

The High Season for Pest Control Starts Earlier in Europe as Well

$ SDI—ConUS v. Europe



Pest ControlPest Control

0

50

100

150

200

250

300

Wk

Jan

06 0

7

Wk

Jan

20 0

7

Wk

Feb

03 0

7

Wk

Feb

17 0

7

Wk

Mar

03 0

7

Wk

Mar

17 0

7

Wk

Mar

31 0

7

Wk

Apr

14 0

7

Wk

Apr

28 0

7

Wk

May

12 0

7

Wk

May

26 0

7

Wk

Jun

09 0

7

Wk

Jun

23 0

7

Wk

Jul 07

07

Wk

Jul 21

07

Wk

Aug

04 0

7

Wk

Aug

18 0

7

Wk

Sep

01 0

7

Wk

Sep

15 0

7

Wk

Sep

29 0

7

Wk

Oct

13 0

7

Wk

Oct

27 0

7

Wk

Nov

10 0

7

Wk

Nov

24 0

7

Wk

Dec

08 0

7

Wk

Dec

22 0

7

ConUS Europe

4848

Hot Dogs Show Upward Sales Trends Beginning in March,

While ConUS Seasonality Starts in May$ SDI—ConUS v. Europe



FrankfurtersFrankfurters

0

20

40

60

80

100

120

140

160

Wk

Jan

06 0

7

Wk

Jan

20 0

7

Wk

Feb

03 0

7

Wk

Feb

17 0

7

Wk

Mar

03 0

7

Wk

Mar

17 0

7

Wk

Mar

31 0

7

Wk

Apr

14 0

7

Wk

Apr

28 0

7

Wk

May

12 0

7

Wk

May

26 0

7

Wk

Jun

09 0

7

Wk

Jun

23 0

7

Wk

Jul 07

07

Wk

Jul 21

07

Wk

Aug

04 0

7

Wk

Aug

18 0

7

Wk

Sep

01 0

7

Wk

Sep

15 0

7

Wk

Sep

29 0

7

Wk

Oct

13 0

7

Wk

Oct

27 0

7

Wk

Nov

10 0

7

Wk

Nov

24 0

7

Wk

Dec

08 0

7

Wk

Dec

22 0

7

ConUS Europe

4949

• Great performance in this marketplace, despite store closures. Growth in the past 5 years, dollar sales are up 5.3%.

• Average sales per store are up to $8.3M.• 25% (12) of the stores are posting more than 10% dollar

growth• The top 50 items in Europe are key, they represent more

than 9.3% of the dollar volume. • 50% of the new age category sales comes from energy

drinks, but only equate to 24% of the distribution points.• Water is locally driven by strong European brands such as

Vera, San Benedetto, and Culligan and may not be reflected in the sales. This would explain the low index of sales for Naples and various stores in Italy.

Key Market Facts

5050

• Off shelf promotions are key for growth in the canned and bottled drinks category.

• In the salty snack category, potato chips and multi-grain chips are leading the growth.

• 37% of dollars in the RTE Cereal category is sold off promotion.• Confectionery is growing in all segments, with the exception of

mints. The gondola represents 65% of the dollar sales of the category. Seasonal candy represents 27% of the category dollar sales and is up more than 15%.

• In the biscuit category there are two major players; Nabisco and Kellogg’s, which represent more than 85% of the dollar sales.

• In infant formula and nutritional category, customers have switched from soy based products to mild milk based products. The right SKU assortment is essential.

Key Market Facts Continued

5151

Vielen Dank!Vielen Dank!

http://www.oktoberfest.de/en/10/galerie.php?date=050918_trachtenzug&img=0

1 Presented by Empower IT Heidelberg, Germany August 2008 Overview of the European Market Basket.

Documents

europe source

millions europe

dollar volume slide

items source

europe average dollar

conus dollar volume

european dollar sales

conus market