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