1

Avocado Regional Composite

MidSouth Region2012 YTD Q2 (January – June)

Prepared by: Fusion Marketing

Methodology

• Sales and Market Data is obtained using CAST (Category Avocado Sales Trend)

– Symphony Information Resources Inc. Group (SymphonyIRI Group) gathers chain-wide sales across all RMAs (Retail Market Areas)

• Regional figures include data collected from all reporting retailers, as well as imputed data (non-reporting retailers such as club, warehouse and independent stores) for a total of 100% of retail sales for the area

– Data is entered into CAST system– Using CAST, data is queried and reported

• 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

• Analysis is based on a Calendar Quarters unless otherwise noted

• Total U.S. totals and averages utilized in comparisons includes all U.S. regions

• Retail data provided by SymphonyIRI Group / FreshLook Marketing

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

2

MidSouth Region HighlightsYTD Q2

• Overview based on the following markets:– Baltimore, MD; Louisville, KY; Memphis, TN; Raleigh, NC; Richmond, VA; Roanoke, VA

• MidSouth Overview– Avocado retail dollar average trends outpaced Fruit and Produce retail dollar trends for 2

consecutive years– Category dollars grew for 2 consecutive years, for net growth of +33% from 2010 to 2012– Category units grew for 2 consecutive years, for net growth of +65% from 2010 to 2012– Category average selling price (ASP) in 2012 was -19% lower than the 2010 ASP

• MidSouth Per Store Averages– 2012 Average dollars of $3,073 per store were +11% higher than 2011 and +24% higher

than with 2010– 2012 Average units of 3,578 per store were +30% higher than 2011 and +54% higher than

2010’s average of 2,329 units per store

• MidSouth versus Total U.S. trends– MidSouth’s 2012 category dollar trend of +20% was +11 points higher than the national

average– MidSouth’s 2012 category unit growth of +41% was +5 points higher than the national

average– MidSouth’s 2012 category ASP of $0.86/unit was -6% lower than the national average of

$0.91/ unit

3

MidSouthYTD Q2 Retail Dollar Trend ComparisonsAvocados vs. Fruit vs. Produce

• Avocado retail dollar average trends through Q2 outpaced Fruit and Produce retail dollar trends for 2 consecutive years

– 2011 versus 2010, Avocados outpaced Fruit by +7 points and Produce by +6 points

– 2012 versus 2011, Avocados outpaced Fruit by +18 point and Produce by +20 points

– 2012 versus 2010, Avocados dollars grew +33% which outpaced Fruit by +27 points and Produce by +28 points

4

MidSouthYTD Q2 Avocado Retail Overview

• Category dollars grew for 2 consecutive years, +11% in 2011 and +20% in 2012 for a net growth of +33% over 2010

• Category units grew for 2 consecutive years, +17% in 2011 and +41% in 2012 for a net growth +65% over 2010

• Category average selling price (ASP) declined -5% in 2011 and -15% in 2012 to $0.86/unit

– 2012 ASP was -19% lower than the 2010 ASP

5

MidSouth vs. Total U.S.YTD Q2 PLU Comparisons

• MidSouth’s category unit growth of +41% was +5 points higher than the national average

– MidSouth’s growth was driven by all segments which collectively grew +22.8 million units from the prior year

• MidSouth’s category dollar trend of +20% was +11 points higher than the national average

– MidSouth’s growth was primarily driven by PLU 4046 which grew +$5.7 million

• MidSouth’s 2012 category ASP of $0.86/unit was -6% lower than the national average of $0.91/ unit

6

RETAIL UNITSPLU Description 2011 2012 Variance 2011 2012 Variance4046 Small Hass #60 sizes & smaller 13,646,936 20,584,004 +50.8% 210,610,831 313,695,361 +48.9%4225 Large Hass #40 & #48 sizes 16,888,901 23,552,445 +39.5% 253,156,474 331,324,613 +30.9%4770 X-Large Hass #36 sizes & larger 3,425,724 4,110,835 +20.0% 33,581,668 18,401,438 -45.2%

Other Greenskins, Pinkertons, non-Hass PLUs 615,498 669,084 +8.7% 10,933,981 12,228,384 +11.8%Organic All Organic PLUs 675,091 778,004 +15.2% 6,484,256 9,979,735 +53.9%

Bags All bagged PLUs 20,471,552 28,828,061 +40.8% 110,111,259 163,998,949 +48.9%55,723,702 78,522,433 +40.9% 624,878,469 849,628,480 +36.0%

RETAIL DOLLARSPLU Description 2011 2012 Variance 2011 2012 Variance4046 Small Hass #60 sizes & smaller 15,262,646$ 20,955,926$ +37.3% 208,011,213$ 253,958,543$ +22.1%4225 Large Hass #40 & #48 sizes 26,775,439$ 30,523,856$ +14.0% 377,475,117$ 408,165,711$ +8.1%4770 X-Large Hass #36 sizes & larger 7,840,554$ 7,999,357$ +2.0% 60,941,721$ 31,796,032$ -47.8%

Other Greenskins, Pinkertons, non-Hass PLUs 1,109,883$ 1,266,294$ +14.1% 20,940,774$ 23,767,959$ +13.5%Organic All Organic PLUs 1,426,920$ 1,505,561$ +5.5% 12,562,775$ 16,150,945$ +28.6%

Bags All bagged PLUs 3,678,703$ 5,189,621$ +41.1% 32,289,481$ 42,521,198$ +31.7%56,094,145$ 67,440,616$ +20.2% 712,221,080$ 776,360,387$ +9.0%

AVERAGE SELLING PRICE (ASP) / UNITPLU Description 2011 2012 Variance 2011 2012 Variance4046 Small Hass #60 sizes & smaller $1.12 $1.02 -9.0% 0.99$ 0.81$ -18.0%4225 Large Hass #40 & #48 sizes $1.59 $1.30 -18.3% 1.49$ 1.23$ -17.4%4770 X-Large Hass #36 sizes & larger $2.29 $1.95 -15.0% 1.81$ 1.73$ -4.8%

Other Greenskins, Pinkertons, non-Hass PLUs $1.80 $1.89 +5.0% 1.92$ 1.94$ +1.5%Organic All Organic PLUs $2.11 $1.94 -8.4% 1.94$ 1.62$ -16.5%

Bags All bagged PLUs $0.18 $0.18 +0.2% 0.29$ 0.26$ -11.6%$1.01 $0.86 -14.7% 1.14$ 0.91$ -19.8%

JAN

UA

RY -J

UN

E: 2

011

vs 2

012

Midsouth Total U.S.

TOTAL CATEGORY UNITS

Midsouth Total U.S.

TOTAL CATEGORY DOLLARS

Midsouth Total U.S.

CATEGORY ASP ($/Unit)

MidSouthYTD Q2 Category Per Store Averages

• In 2012, per store dollar and unit averages exhibited growth from 2011

– 2012 Average dollars of $3,073 per store were +11% higher than 2011 and +24% higher than with 2010

– 2012 Average units of 3,578 per store were +30% higher than 2011 and +54% higher than 2010’s average of 2,329 units per store

7

MidSouth2010 through Q2-2012Per Store Averages by Quarter: Units vs. ASP

• Average Retail Units Per Store– The peak quarter was 2012-Q2 at 2,798 units per store when ASP was $0.88/unit– The lowest quarter was 2010-Q1 at 1,491 units per store when ASP was at its highest

point of $1.13/unit

• ASP– Lowest ASP to date occurred during 2010-Q4, $0.82/unit– Highest ASP to date occurred during 2010-Q1, $1.13/unit

8

MidSouth Region HighlightsYTD Q2

• Overview based on the following markets:– Baltimore, MD; Louisville, KY; Memphis, TN; Raleigh, NC; Richmond, VA; Roanoke, VA

• MidSouth Overview– Avocado retail dollar average trends outpaced Fruit and Produce retail dollar trends for 2

consecutive years– Category dollars grew for 2 consecutive years, for net growth of +33% from 2010 to 2012– Category units grew for 2 consecutive years, for net growth of +65% from 2010 to 2012– Category average selling price (ASP) in 2012 was -19% lower than the 2010 ASP

• MidSouth Per Store Averages– 2012 Average dollars of $3,073 per store were +11% higher than 2011 and +24% higher

than with 2010– 2012 Average units of 3,578 per store were +30% higher than 2011 and +54% higher than

2010’s average of 2,329 units per store

• MidSouth versus Total U.S. trends– MidSouth’s 2012 category dollar trend of +20% was +11 points higher than the national

average– MidSouth’s 2012 category unit growth of +41% was +5 points higher than the national

average– MidSouth’s 2012 category ASP of $0.86/unit was -6% lower than the national average of

$0.91/ unit

9

Appendix

• Retail scan data is collected and entered into CAST approximately every 4-6 weeks

– Data collection began in 1997– Data is collected and distributed by Symphony Information Research, Inc. Group

(SymphonyIRI Group) / FreshLook Marketing– Data is scrubbed and reviewed for accuracy prior to entry

• Total U.S. totals and averages utilized in comparisons includes all U.S. regions

• Other data is analyzed by CA Avocado Commission’s Data Analyst (Fusion Marketing) in conjunction with CAC personnel

• Analysis is based on a Calendar Quarters unless otherwise noted

10