Brad McMinn Chief, Perishable Division Brad McMinn Chief, Perishable Division.

Brad McMinn

Chief, Perishable Division

Brad McMinn

Chief, Perishable Division

Thank YOU! For Making It Happen

Thank YOU! For Making It Happen

Market Basket Change

Region Sales per Transactions $ Change

East $70.71 $2.85

Europe $46.66 $1.54

West $63.91 $2.14

DeCA $64.86 $2.41

Outlook

• Saving money on eating out: switching from fine dining to fast foods and seeking supermarket meals solutions in place of restaurant fare

• Saving in the store: buying more value brands, using coupons, buying basic ingredients and shopping with a plan

• Switching store formats: buying at supercenters, warehouse clubs and limited assortment stores

Consumers Adopting New Behavior to Save Consumers Adopting New Behavior to Save on Foodon Food

Source: FMI Grocery Shopper Trends 2009

Consumers are economizing on food purchases: three trends have emerged in 2009:

Increased In-Home Eating OccasionsIncreased In-Home Eating Occasions

• Pressures from the turbulent economy are changing consumers behavior…

• Consumers are doing MORE of:– Going out of their way to find bargains

– Shopping multiple stores for the best price

– clipping & redeeming coupons

– Eating out less and

– Reading supermarket circulars

• Consumers are doing LESS of:– Dining out for lunch & dinner

– Buying less organic produce & meats

– Buying less Starbucks Coffee

– Buying less Premium dark chocolate

Source: NGA, 2009 Consumer Panel Survey & Phil Lempert, Supermarket Guru & Mintel 6

Fundamental Changes in the way Consumers Fundamental Changes in the way Consumers are shopping today . . .are shopping today . . .

Source: Retail Forward ShopperScape, Feb/Mar/Apr 2009

Grocery Food Shopping

They are seeking deals to avoid trading downThey are seeking deals to avoid trading down

Source: Retail Forward ShopperScape, Feb/Mar/Apr 2009

Grocery Food Shopping

• Capitalize on Increased In-Home Eating Occasions– Consumers and Patrons eating out less: Restaurant quality & Healthy meals,

conveniently prepared at home

• Saving Money is a Priority – Increased use of coupons– Buying products on sale– Provide multiple pricing for value and stock up

• Consumers are Time Stressed– Provide convenient home meals solutions, in both Frozen and Shelf Stable

Grocery– Key in on innovation and flavor profiles that meet the needs of the Patrons:

Dining out “At Home”, Convenience, Healthy Fit

• Importance of Variety– Patrons expressed satisfaction with DeCA’s strong variety offering– DeCA Point of difference versus Grocery & Club channels

9

Patron SummaryPatron Summary

Club Packs Meet The Need!

• Economic Trends and DeCA Purchase Patterns

FAVOR Club Packs!• Average 18 times a year – Stock Up

• Perceived as Better Value

• Value overrides variety & convenience

• Create Excitement – Opportunity for COMMUNICATION! – REWARD EXECUTION!

Club Packs – a BIG Success Story!

Item CY 2007 CY 2008 Change

# of Published Packages 3 4 1

Total Sales of Club Pack Items $53.4M 81.6M 28.2M

% of Total Sales from Club Packs 1.0% 1.4% 0.4%

Execution

FYTD DeCA SalesJune 2009 ($K)

* Sales through June 2009

Sales *FY 2009 FY 2008 Diff %

East $2,128,455.4 $2,026,658.7 $101,796.7 5.02%

Europe $379,054.7 $363,336.9 $15,717.8 4.33%

West $1,999,113.0 $1,929,605.9 $69,507.1 3.60%

Total $4,506,623.1 $4,319,601.5 $187,021.6 4.33%

Transactions *FY 2009 FY 2008 Diff %

East 30,581,509 29,854,779 726,730 2.43%

Europe 8,363,896 8,069,860 294,036 3.64%

West 31,842,661 31,337,855 504,806 1.61%

Total 70,788,066 69,262,494 1,525,572 2.20%

FYTD Europe SalesJune 2009 ($K)

Sales through June 2009

Zone Sales 2009 2008 Diff % Change

30 UNITED KINGDOM #30 $ 57,554,527.73 $ 57,588,930.32 $ (34,402.59) -0.06%

31 BAVARIA #31 $ 80,087,381.37 $ 76,809,316.82 $ 3,278,064.55 4.27%

32 RAMSTEIN #32 $ 143,498,886.10 $ 135,372,504.68 $ 8,126,381.42 6.00%

37 MEDITERRANEAN #37 $ 77,007,039.73 $ 71,668,026.67 $ 5,339,013.06 7.45%

41 CDCS #41 $ 16,566,289.08 $ 17,788,665.07 $ (1,222,375.99) -6.87%

42 NEXTMARTS #42 $ 4,340,641.12 $ 4,109,483.66 $ 231,157.46 5.62%

Total 379,054,765.13$ 363,336,927.22$ 15,717,837.91$ 4.33%

Zone Transactions 2009 2008 Diff % Change

30 UNITED KINGDOM #30 1,197,373 1,181,367 16,006 1.35%

31 BAVARIA #31 2,032,959 1,937,436 95,523 4.93%

32 RAMSTEIN #32 3,174,699 3,105,664 69,035 2.22%

37 MEDITERRANEAN #37 1,958,865 1,845,393 113,472 6.15%

41 CDCS #41 - - -

42 NEXTMARTS #42 - - -

Total 8,363,896 8,069,860 294,036 0