Cucumber Report Brand Health & Demographics

1. Cucumber ReportBrand Health& Demographics • Source: • Nielsen Homescan data until 3rd of September 2011 • Nielsen Scantrack data (National Woolworths) until 28th August 2011

2. Cucumber….. 77.5% of Australian Households purchased Cucumbers; spending on average $ 17 in the last year, which equates to 9.4 shopping trips and $1.8 spent per shopping trip Looking at trended information we can see that price spikes during this year natural disasters, have remained higher than previous year levels. However, during the last 2 periods, prices per kilo have started to decrease, closing the gap with previous year’s

3. Cucumber….. Most of the cucumber’s additional value come from current cucumber buyers, while those who decided not to buy it more are spending more in Pumpkin & Tomato Despite Cucumber price increase, most household segments remained purchasing it; however “Bustling Families” (HH with children above 12yo) segment was the only one where cucumber decreased its penetration. Woolworths has held the dominant share of the Cucumber trade, whilst Coles has share gains at expense of IGA, Independents and Green Grocers

4. Homescan Overview

5. 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 Household Panel Information • Volume & Share Tracking • Promotion Execution & Effectiveness • Price Sensitivity • Account Performance • Components of Sales • Brand Loyalty & Repeat • Demographics • Buyer Analyses • Cross Purchasing • Switching/Source of Volume

6. How does Household Panel Information (Homescan) work? At home they scan the purchases via a barcode scanner- supplementing data from a barcode book for shopping trip info and non barcoded items Panel member buys products from any retail outletand takes them home Start with a panel that isstatistically representative of Australian households Purchase data is automaticallymodemed back to Nielsen via the telephone line Information is supplied via Advisor i-sights to clients to evaluate consumer and retail trends. Nielsen processes the data together with stringent QC checking

7. Key Measures

8. During the last year the number of Australian Households purchasing cucumbers decrease by 96k, however those who keep purchasing, spent $2.1 more than previous year in the commodity. This chart compares Cucumber household reach (penetration) against some other vegetables. Blue represents year ago while yellow represent current year *NB - Fresh Salads contain all pre-packed salads This chart show the average household spend across various vegetable commodities. * New Nielsen Scanning guides began capturing loose Asian Vegetables, Celery and Capsicum purchasing despatched to panel in Sept 2009 Nielsen Homescan data until 3rd September 2011

9. Households that buy Cucumbers are purchasing the commodity less often, 9.4 times compared to 9.6 times last year, however they are spending $0.3 more in every shopping trip. This chart compares how frequently Cucumber is purchased each year compared to other vegetable commodities *NB - Fresh Salads contain all pre-packed salads Households are spending approximately $1.80 each time they purchase Cucumber. * New Nielsen Scanning guides began capturing loose Asian Vegetables, Celery and Capsicum purchasing despatched to panel in Sept 2009 Nielsen Homescan data until 3rd September 2011

10. Average household spend on Vegetables peaked immediately following the natural disasters in February Cyclone Yasi QLD Floods This chart shows that the average household increased their spend (red line) on Vegetables in the periods during & after the natural disasters. Nielsen Homescan data until 3rd September 2011

11. Over a two year period we can see that average weight of purchase has increased over the Cyclone Yasi period and has remained at higher levels than a year ago. During peak seasons, average household spend decreased (red line) as the number of households increased (blue bars) Cyclone Yasi QLD Floods Cucumber peak season November- April Nielsen Homescan data until 3rd September 2011

12. Growth in $AWOP are linked to increases in spend per shopping occasion Green Line: how many times consumers buy it – it is stable. Yellow Line: How much they spend each time. It increased in the last period to $2.3 Cyclone Yasi QLD Floods Nielsen Homescan data until 3rd September 2011

13. Looking at Woolworths information, Cucumber volume sales have declined by -5.9%, however total value grew more than 19% due to the effect of price increase (+2.9 $/Kg) Nielsen ScanTrack data until 28th August 2011

14. Looking at trended Woolworths information, the affects of Queensland natural disasters can be seen, however during the last two periods, prices started to close the gap with levels from a year ago. Blue Line: Price per Kg. $19.90 in latest period vs. $14. 07 last year. Yellow Bar: Kgs sold by Woolworths during each period. QLD Floods Cyclone Yasi Nielsen ScanTrack data until 28th August 2011

15. The overall positive value change during the last 52 weeks can be traced mostly from Existing Cucumber buyers, while most of the lost value went to Pumpkin & Tomatoes Most of the value growth (4.1%), come from existing buyers and in a smaller proportion from new cucumber buyers Category Expansion/Contraction Those few households that stop buying cucumber, increase their spend mostly in Tomatoes & Pumkin

16. Demographics

17. Despite penetration is even in most demographics groups, Bustling Families segment show an excellent opportunity to recover its previous level and capitalise the increase it has on spend. The green bar represents the percent of each demographic purchasing in latest period with the red bar representing the percentage last year Nielsen Homescan data until 3rd September 2011

18. Low & Medium income households decreased their value importance for cucumber, while High income households accounts for almost half of cucumber value Opportunity exists develop Low and Medium income households Low & Medium Income households have decreased their importance in value during the last year Nielsen Homescan data until 3rd September 2011

19. 1-2 member households have had the most significant contribution to value sales within Cucumbers, however still opportunity to increase reach within this household size By far, 1-2 member household size is the most important demographic as they account for 48.4% of sales. Opportunity to increase reach as 1- 2 member household has the lowest penetration Nielsen Homescan data until 3rd September 2011

20. Share of Trade

21. Coles has gained 1.9% share points over the last year growing at 22% at expense of IGA, Independents and Green Grocers This pie chart shows how is the Cucumber value distribution among different retailers/classes of trade This show the actual sales values percentage growth/decline behind the share of trade changes Nielsen Homescan data until 3rd September 2011

22. Coles has gained share through increasing average household spend and penetration Nielsen Homescan data until 3rd September 2011

23. Coles variation in AWOP is a result of increases in spend per occasion, while Aldi also show increases in purchase frequency Nielsen Homescan data until 3rd September 2011

24. Glossary

25. 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. 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. Young Senior Transitionals, Couples,14% 15% Start Up Families,9% Established Households, 18% Small Scale Families,11% Bustling Independent Families,16% Singles,17% Lifestage Distribution of Households

28. Scanning guide enhancements were introduced in August 2009, providing greater depth of information…

29. How to read a Source of Volume Chart New/Lost Category Buyers Households that purchased the category in one period but not the other and the focus brand was included in the category purchases. Existing brand buyers The Focus Brand experienced gains/losses from households who increased/decreased their purchases of the focus brand New/Lost Brand Buyers Gains or Losses within the Focus Brands by Households who added/omitted the focus brand to their category purchases. Switching Includes households who shifted their focus brand purchases from/to alternative category items.

30. Appendix

31. Whilst Woolworths has held a dominating share of Cucumbers with 32.9% share, Cucumbers are well developed in both Coles and Green Grocers. Coles is rapidly closing the gap with WW. Nielsen Homescan data until 3rd September 2011