K-Va-T Frozen SSM Review - Sept 2015

Frozen Single Serve Meals

October 2015

SINGLE SERVE MEALS CATEGORY BUSINESS REVIEW

Vs. Rest of Market

ConAgra is the Largest Vendor at K-Va-T in Single Serve Meals

Source: IRI Syndicated Data 52 Weeks Ending September 27th, 2015

ConAgra sold over $4.8MM at K-Va-T last year – 38% of the SS Meal category

34%

29%

11%

8%5%

13%38%

23%

14%

9%

7%9%

ROM

Vendor $ Share of SS MealsK-Va-T vs. ROM ROM

SS Meals -0.2 -2.4

-5.6 -3.2

3.2 -3.4

9.0 5.5

-13.9 -18.4

14.3 -1.0

Banquet is the #1 Single Serve Meal Brand at K-Va-T


K-Va-T is outpacing the ROM in SSM and in 6 of the top 8 brands

BANQUET16%

STOUFFERS14%

MICHELINAS10%

MARIE CALLENDERS10%

LEAN CUISINE9%

HEALTHY CHOICE9%

WWSO9%

SWANSON7%

A/O16%

BANQUET13%

STOUFFERS16%

MICHELINAS7%

MARIE CALLENDERS12%LEAN CUISINE

13%

HEALTHY CHOICE7%

WWSO8%

SWANSON5%

A/O19%

ROM

SSM BANQUET STOUFFERS MICHELINAS MARIE CALLENDERS LEAN CUISINE HEALTHY CHOICE WWSO SWANSON

-0.2 -3.3

11.6

1.5

-6.0 -7.1-2.4

-14.5

14.8

-2.4 -3.1

0.2

-6.5

3.6

-7.5 -9.5-18.6

-1.0

K-Va-T ROM

$ Share of SS MealsTop Brands

Buyers Trips HH Pen. Conversion Share of Wallet

Frozen Flat -3.9 -0.3 -3.3 -0.8

Single Serve Meals -7.5 -8.4 -2.5 -2.1 2.0

Economy -18.1 -3.3 -4.1 -2.6 2.1

Premium Regular 15.7 6.6 2.3 7.6 -3.2

Better for You -15.8 -14.4 -2.2 -0.2 6.5

Single Serve Meals are losing Buyers and Trips Faster then Frozen. Driven by losses in Economy & Better for You

Source: IRI Panel Data 52 Weeks Ending October 4th, 2015

Percent Chg. Point Chg.

50% of K-Va-T Shopper Buy Frozen SS Meals at other Accounts

Source: IRI Panel Data 52 Weeks Ending October 4th, 2015

Geography : K-VA-T Foods-RMATime : Latest 52 Weeks Ending Sep-06-2015Product : FRZN SINGLE SERVE MEALSHH Demo Summary : All HH Income Per CapitaTrip Mission : All Trip MissionsParent Company : Total (Unfiltered)

30.7% 16.8% 58.9% 24.7%-5.9pts +0.2pts +4.6pts -7.6pts$7.8MM $4.3MM $9.3MM $3.9MM

80.4% (-1.6pts) (0.6MM HHs)Buy FRZN SINGLE SERVE MEALS

Somew here

19.6% (+1.6pts) (0.1MM HHs)Do Not Buy FRZN SINGLE SERVE MEALS

Anyw here

49.8% (-1.7pts) (0.3MM HHs) BUYER CONVERSIONHouseholds

50.2% (+1.7pts) (0.3MM HHs)

Walmart Supercenter

FRZN SINGLE SERVE MEALS $ Leaked to Other

Channels ($10.0MM)

Walmart Supercenter

Kroger Kroger

FRZN SINGLE SERVE MEALS $ Leaked to

Walmart Total ($8.4MM)

FRZN SINGLE SERVE MEALS $ Leaked to GroceryX ($7.0MM)

FRZN SINGLE SERVE MEALS $ Leaked to Other

Channels ($0.3MM)

100.0% (0.0pts) ($15.7MM)

FRZN SINGLE SERVE MEALS $ Leaked to

Walmart Total ($9.4MM)

FRZN SINGLE SERVE MEALS $ Leaked to GroceryX ($6.0MM)

FRZN SINGLE SERVE MEALS $ Spent in K-VA-T Foods-RMA

FRZN SINGLE SERVE MEALS $ Leaked Elsew here

66.0% (0.0pts) (0.7MM HHs) 34.0% (+0.0pts) (0.4MM HHs)

1.1MM HHsin Mid-South

Do Not Buy FRZN SINGLE SERVE MEALS in K-VA-T Foods-RMA

Shop in K-VA-T Foods-RMA Do Not Shop in K-VA-T Foods-RMA

37.9% (-2.8pts)

CONVERTED BUYERS UNCONVERTED BUYERS

37.4% (-0.7pts) ($9.5MM) 100.0% (0.0pts) ($25.4MM)FRZN SINGLE SERVE MEALS $ Leaked

Elsew here

LEAKAGEDollars

$ Opportunity from 1 Additional Point of Buyer Conversion:

$190,943

2.1% (-2.6pts)33.2% (-3.7pts) 27.5% (+4.6pts) 39.3% (-0.8pts) 60.0% (+5.3pts)

Buy FRZN SINGLE SERVE MEALS in K-VA-T Foods-RMA

• Walmart is their first choice, followed by Kroger• 31% of K-Va-T leakage is to Walmart with another 17% to Kroger

Economy is a Stronger Segment at K-Va-T than in the ROM


• Both Economy & Premium Regular are growing at K-Va-T• K-Va-T is our performing the market in all 3 segments

ECONOMY34%

PREMIUM REGULAR

35%

BETTER FOR YOU31%

ROMECONOMY

26%

PREMIUM REGULAR

39%

BETTER FOR YOU35%

SSM ECONOMY PREM REGULAR BETTER FOR YOU

-0.2

0.7

5.1

-6.4

-2.4-4.1

3.6

-7.3

K-Va-T ROM

$ Share of SS MealsSegments

Single Serve Meal trends improve in Late 2014 to the Present


13 w/e Sep 30, 2012

13 w/e Dec 30, 2012

13 w/e Mar 31, 2013

13 w/e Jun 30, 2013

13 w/e Sep 29, 2013

13 w/e Dec 29, 2013

13 w/e Mar 30, 2014

13 w/e Jun 29, 2014

13 w/e Sep 28, 2014

13 w/e Dec 28, 2014

13 w/e Mar 29, 2015

13 w/e Jun 28, 2015

13 w/e Sep 27, 2015

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

SSM ECONOMY PREM REGULAR BETTER FOR YOU

Dollar % Chg. Vs. YASSM & Segments

Economy:• Strong growth in 2013, decline

in 2014• Started 1st half of 2015 strong,

negative last 26 weeks

Premium Regular:• Strong growth in the last 4

quarters• Negative trends in the

previous 2 years

Better for You:• Consistently Negative trends

over the past 2+ years

Banquet is the #1 Brand in the Economy Segment


• Banquet is down over 3% at K-Va-T, which mirrors Market trends• Swanson is up significantly at K-Va-T, but down 1% in the ROM

BANQUET46%

MICHELINAS30%

SWANSON20%

A/O4% RO

M

ECONOMY BANQUET MICHELINAS SWANSON

0.7

-3.3

1.5

14.8

-4.1 -3.1-6.5

-1.0

K-Va-T ROM

$ Share of Economy SSMEconomy Brands

BANQUET50%

MICHELINAS28%

SWANSON19%

A/O3%

Banquet and Michelina’s Declines Cause Dip in Economy SS Meals

13 w/e Sep 30, 2012

13 w/e Dec 30, 2012

13 w/e Mar 31, 2013

13 w/e Jun 30, 2013

13 w/e Sep 29, 2013

13 w/e Dec 29, 2013

13 w/e Mar 30, 2014

13 w/e Jun 29, 2014

13 w/e Sep 28, 2014

13 w/e Dec 28, 2014

13 w/e Mar 29, 2015

13 w/e Jun 28, 2015

13 w/e Sep 27, 2015

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

ECONOMY BANQUET MICHELINAS SWANSON

Dollar % Chg. Vs. YAEconomy Segment and Key Brands

Banquet:• Strong growth in 2013 and

early 2014• Modest declines in the last 6

quarters

Michelina’s:• Declines in 2013 and early

2014• Modest growth in the last year

Swanson:• Erratic trends in 2013 and

2014• Growing in 2015

Source: IRI Syndicated Data Last 13 Quarters Ending September 27th, 2015

Marie Callender’s is 29% of Sales at K-Va-T but is down 6%


• K-Va-T is out pacing the market on Premium Regular, Stouffers and Boston Market• Marie Callender’s is an outlier. The ROM is up almost 4%; while K-Va-T is down

MARIE CAL-LENDERS

29%

KID CUISINE7%

STOUFFERS39%

BOSTON MKT8%

A/O17%

ROM

PREM REG MARIE CALLENDERS KID CUISINE STOUFFERS BOSTON MKT

5.1

-6.0

-12.2

11.6

5.43.6 3.6

-8.8

0.23.1

K-Va-T ROM

$ Share of Prem. Reg. SSMKey Premium Reg. Brands

MARIE CAL-LENDERS

30%

KID CUISINE4%

STOUFFERS41%

BOSTON MKT6%

A/O19%

Premium Regular SSM Grow in Last 4 Quarters, after 9 Straight Declines

13 w/e Sep 30, 2012

13 w/e Dec 30, 2012

13 w/e Mar 31, 2013

13 w/e Jun 30, 2013

13 w/e Sep 29, 2013

13 w/e Dec 29, 2013

13 w/e Mar 30, 2014

13 w/e Jun 29, 2014

13 w/e Sep 28, 2014

13 w/e Dec 28, 2014

13 w/e Mar 29, 2015

13 w/e Jun 28, 2015

13 w/e Sep 27, 2015

-50.0-40.0-30.0-20.0-10.0

0.010.020.030.040.0

PREM REG MARIE CALLENDER'SSTOUFFERS BOSTON MKT

Dollar % Chg. Vs. YAPremium Regular Segment and

Key Brands

Marie Callender’s:• Strong trends in 2013• Declines in 7 of the last 8

quarters

Stouffers:• Reversed declines in 2013 and

2014• Growth vs. YA in the last 5

quarters

Boston Market:• Declines in the last 3 years,

except for dramatic increase in the last quarter


Healthy Choice is a strong #2 Brand at K-Va-T


• BFY is the worst performing segment at K-Va-T, driven by declines in top 3 brands• WWSO is declining the fastest of the 3 major BFY brands at K-Va-T and in the ROM

HEALTHY CHOICE

29%

LEAN CUISINE30%

WW SMART ONES28%

AMY'S4%

ATKINS6%

A/O3%

ROM

BFY HEALTHY CHOICE LEAN CUISINE WWSO AMY'S ATKINS

-6.4-2.4

-7.1-14.5

14.6 14.7

-7.3 -9.5 -7.5

-18.6

12.6 14.5K-Va-T ROM

$ Share of Better for You SSMKey BFY Brands

HEALTHY CHOICE20%

LEAN CUISINE37%

WW SMART ONES22%

AMY'S8%

ATKINS7%

A/O5%

Update – should be BFY

Better for You Meals Continue to Trend Negative – 9 Quarters Straight


13 w/e Sep 30, 2012

13 w/e Dec 30, 2012

13 w/e Mar 31, 2013

13 w/e Jun 30, 2013

13 w/e Sep 29, 2013

13 w/e Dec 29, 2013

13 w/e Mar 30, 2014

13 w/e Jun 29, 2014

13 w/e Sep 28, 2014

13 w/e Dec 28, 2014

13 w/e Mar 29, 2015

13 w/e Jun 28, 2015

13 w/e Sep 27, 2015

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

BFY HEALTHY CHOICELEAN CUISINE WW SMART ONES

Dollar % Chg. Vs. YABetter of You Segment and Key Brands

Healthy Choice:• Negative trends vs. YA in 2013• 3 of last 5 quarters positive or

flat vs. YA

Lean Cuisine:• 9 straight quarter declines vs

YA until latest 13 weeks• Strong growth in last quarter

WW Smart Ones:• 2 years of steady decline thru

the present quarter

What We’ve Learned


12

3

K-Va-T is flat in Single Serve Meals, but is out performing the market

Frozen SS Meals are losing trips and buyers faster than Frozen as a whole. Economy and BFY are the main drivers of this trend.• $ per trip and buyer are up at K-Va-T which is helping to stabilize $ sales

With 38% of Dollars, ConAgra is the #1 Manufacturer at K-Va-T, but is down 5.6% vs. YA

Better for You is the largest drag on the Single Serve Meal category• Down 6.4% vs. YA, Driven by all 3 brands• WWSO is the worst performing brand• Lean Cuisine is down for the year, but up 5% in the last 26 weeks

Premium Regular is up 5% vs. YA – strongest segment at K-Va-T• Marie Callender’s is down vs. YA; while Stouffers and Boston Market are up

Economy is flat vs. YA

4

56

SINGLE SERVE MEALS M.A.P.S

Vs. Kantar Validated Best in Class Tactics

3 Major Issues in Single Serve Meals

Decreasing Display Support and Lower Promotional Lifts

Segments should have adequate assortment

and the deepest variety should be

concentrated on the Power Brands

Shelving Flow should align with Consumer Decision Tree

12

3

9 Best in Class Principles to Drive Growth

Merchandising Assortment1. Optimize Display at 41

Weeks

2. Bundle Premium & Healthy on Display

3. Align Displays with Key SSM Periods – avoid the Holiday Months

1. Allocate Proper Space to Segments

2. Stock the Key Single Serve Meal Brands

3. Stock Deepest Assortment on these Key SSM Brands

1. Book-end Single Serve Meals with Economy & Healthy

2. Lead & End each Segment with Top 2 Brands

3. Block Segments & Brands Vertically

Shelving

1.9%

0.5%

0.9%

3.3% Growth Opportunity!Source: Kantar Frozen Baked Desserts 2015* Average $ Growth Opportunity by Area

PROMOTION

M.A.P.S.

Optimize Display Weeks for Single Serve Meals

41 31

Best in Class Poorer Performers

Average # of Display Weeks

Target # of Weeks = 41

• Display informs Shopper what is on Deal

• Display drives traffic into aisle

• Shopper goes into section to pick up additional varieties not on display

Best in Class have:

+55%

+29%

Higher Share of Wallet %

Better Buyer Conversion %

Source: IRI 52 weeks ending 5/2015 & IRI S3 Panel Data 52 Weeks Ending 5/2015

Display is a Powerful Method to Increase SS Meal Sales

Single Serve Meals Generate Stronger Lifts than most other

Frozen Categories

Display and F&D Drive Higher Lifts than an

Unsupported Feature

Any Feature Any Display Feature and Display

47%

88%

133%% Increase in Volume

K-Va-T

• Feature and Display Drives almost 3 times greater lift than a Feature

• Display drives a higher lift than Feature


Pies

Seafood

Prp Veg

SS Meals

Ice Cream

MS Meals

Snacks

Pizza

Breakfast

Novelties

Poultry

269%134%

120%115%113%

103%89%86%

78%72%

59%

At 30 Display Weeks, on SS Meals, K-Va-T is Below Best in Class

2741

30

# of Display Weighted WeeksK-Va-T vs. BiC and ROM

ROM

BiC

Shortfall of 14 Display Weeks for the Current Year

K-Va-T Chg

ROM

Banquet 3.9 -6.3 10.1

Stouffers 8.1 4.7 7.5

Michelina’s 3.0 -0.3 8.6

Marie Callender’s 6.1 0.6 11.9

Lean Cuisine 9.4 5.0 6.5

Healthy Choice 5.8 -3.7 3.5

WW Smart Ones 7.1 -0.1 5.4

Swanson 4.9 0.9 3.0

• 3 Brands (Banquet, Michelina’s and M.C.) are under display vs. ROM & other brands• K-Va-T tends to have more displays on BFY than the ROM


02468

10121416

15

11

6

1013

11 10

42 2 3

7 68

Total # of Features Supported by Display

K-Va-T has an Opportunity to Increase Display Support of Features


27%

• Only 42% of Features are supported by a Display ACV of 40% or greater• Better for You brands fare better than the Economy and Premium Regular Brands

18%

33%

30%

54%

55%

80%

Displays Drive the Majority of Top Brands Top 10 Sales Weeks at K-Va-T# of Top 10 Weeks with a Display

…Additionally, Display Drives Strong Sales Increases at K-Va-T for Top SSM

Brand


4 2 4 6 6 6 7

7% 1%

24%

35%

35% 25

%24%

Bundle Premium Regular & BFY on Display

185

Best in Class Poorer Performers

• Display informs Shopper what is on Deal

• Display drives traffic into aisle

• Shopper goes into section to pick up additional varieties not on display

Average # of Bundled Weeks (SSM)Premium Regular & Healthy

Source: IRI 52 weeks ending 5/2015 ;IRI Panel data 52 weeks ending 6/2015

Bundle to encourage Shopper to buy both segments on same trip

leading to…

Larger Baskets

Premium Regular

40%Healthy

19%Premium Regular

50%Healthy

41%

41%

9%Buyer Overlap

Basket Overlap Disconnect:

41% buy both Premium Regular and Healthy, yet

Only 9% of Baskets contain both.

Bundled Events see +17% Unit Lift and +10% Higher $ Sales, & 24% Bigger Basket

K-Va-T has an Opportunity to Increase Bundling with CAG & Nestle Brands

• Nestle September 28th Feature week was the best week in last 2 years for Lean Cuisine & Stouffers Entrées

• Over $59K in sales• Both brands were supported with Displays (ACV >40%)

ConAgra Nestlé

6 13 10 11Features

Yet, just 1 Bundled Week:W/E May 17th, 2015

FeaturesYet, just 2 Bundled Weeks:

W/E Sept 28th, 2014W/E April 12th, 2015


Align Display Weeks to Single Serve Meals

Source: IRI 208 weeks ending 6/2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 85

90

95

100

105

110

115

Single Serve Dollar SalesIndex by Month

Post-Holiday Spring Summer Back to School October Fling Holiday

Drive Strongest SSM events in the Key TimesLimit SSM promotional activity in the Holiday Months (Nov & Dec)

No more than 3 Weeks per Month in November/DecemberPrioritize Display in first 2 weeks, leave display in back half for Holiday items

Key Time Key Time

Economy Brand Features Fare Better in 1st Half of Month vs. Back Half

Both Banquet and Michelina’s Index high with SNAP Shoppers

Majority of SNAP Benefits Distributed in 1st Half of Month in K-Va-T States

191 148

1st – 9th 1st – 19th

1st – 20th

As a Result, both Banquet and Michelina’s Ads run in

first half of the month drive higher sales

$27,909 $23,67

0$23,47

0 $20,675

First 2 Weeks Back Half Weeks

In the last 2 years at K-Va-T, only 12 of 22 Bqt/Michelina’s ads ran in SNAP

weeks

19%

14%

Source: USDA Website & IRI Syndicated Data 104 Weeks Ending September 27th, 2015

Next Steps - Merchandising

1

2

3

Increase Display support of SS Meal Features• Best in Class Retailers have 41 Displays a year• Display Drives higher sales at K-Va-T on top SS Meal Brands

Bundle BFY and Premium Regular on Display• 41% of Buyers buy both• Yet, only in 9% of baskets

Display Economy SS Meals in Key SNAP Weeks• 14% - 19% Better sales in first half of month at K-Va-T• Second Week of month appears to be optimal based on SNAP distribution in

States

PRICING

M.A.P.S.

K-Va-T tends to be parity priced to ROM on Shelf

Source: IRI Syndicated Data 26 Weeks Ending June 15th, 2015

0%10%20%30%40%50%60%70%80%90%

100%

35% 22% 40%9%

13%15%

56% 65% 45%

> 10% Higher Between 5-10% Higher Parity or Lower

TotalSales

ShelfSales

PromoSales

SS Meals Promotional Groups Pricing Gap vs. Food - ROM

• 65% of Non-Promoted Sales are parity are lower and another 13% are within tolerances

• Promoted Sales is where K-Va-T is at a larger disadvantage. 40% are > than 10% higher

15 Promo Groups with Biggest Price Gaps to Competition - Shelf

Source: IRI Syndicated Data 26 Weeks Ending June 15th, 2015

Promo Group K-Va-T Units (000s)

K-Va-T ROM Index

Banquet Selects Dinners 6 1.99 1.53 130

Chili’s Entrées 22 3.68 2.85 129

Marie Callender’s Complete Dinners 115 3.33 2.59 128

Boston Market Dinners 65 3.51 2.84 124

Healthy Choice Café Steamers 127 3.35 2.72 123

Atkins Entrees 16 4.62 3.77 123

Tai Pei Entrées 45 2.99 2.44 122

Stouffers Morning Classics 7 3.25 2.74 119

Stouffers Satisfying Servings 39 4.00 3.39 118

WWSO Creations Entrées 78 3.34 2.84 117

Marie Callender’s HT Pot Pies 44 3.20 2.73 117

Marie Callender’s LT Pot Pie 21 2.39 2.08 115

Healthy Choice Complete Meals 61 3.00 2.63 114

Banquet SS Pies 28 1.00 0.88 114

Jimmy Dean Bowls 8 3.35 2.99 112

15 Promo Groups with Biggest Price Gaps to Competition - Promo

Source: IRI Syndicated Data 26 Weeks Ending August 30th, 2015

Promo Group K-Va-T Units (000s)

K-Va-T ROM Index

Marie Callender’s HT Pot Pies 44 3.00 2.11 142

Atkins Entrees 16 3.82 2.81 136

Marie Callender’s Complete Dinners 115 2.68 2.05 131

Lean Cuisine Culinary Collection Panini 11 2.80 2.20 127

Stouffers Satisfying Servings 39 3.50 2.75 127

Lean Cuisine Culinary Collection Pizza 23 2.79 2.23 125

Tai Pei Entrées 45 2.51 2.04 123

Lean Cuisine Culinary Collection Entrées 59 2.77 2.25 123

WWSO Creations Entrées 78 2.51 2.07 121

Marie Callender’s LT Pot Pie 21 2.39 2.00 119

Stouffers Classics Entrées 154 2.54 2.19 116

Banquet Pot Pies 262 0.88 0.76 116

Boston Market Dinners 65 2.43 2.18 112

Swanson HM Pub Favorites 30 2.57 2.31 111

Chili’s Entrées 22 2.55 2.29 111

ASSORTMENT

M.A.P.S.

Focus Assortment on Top Brands in Each Segment

Source: IRI Panel Data TUS MULO 52 WE 6/2015

Buyers Reached by Top Brands

Avoid shoppers “walking” by concentrating deep distribution on Top

2-3 Brands per Segment

Value Premium Regular

Premium Healthy52%

16%

14%

82%Of shoppers reached by 3

Healthy Brands

51%

26%


Premium Regular Brands

69%

15%


Value Brands

https://www.leancuisine.com/

Top Brands at K-Va-T Lose Items to Make Room for Niche Brands


0.3 0.0 -1.0

6.7

-4.3

-1.3-3.1

2.84.0

Item Change vs. YAK-Va-T

Chili’s:• Almost 8 new items• $109K in sales (0.8 share)• 71 $ Velocity Index

Jimmy Dean:• 10 New Items• $82K in sales (0.6 $ share)• 54 $ Velocity Index

Key Items Missing from K-Va-T Set


UPC Code Level Brand $ RankDollar Sales

Dollar Sales %

Chg YrAgo

Cume $ Share

Dollar Velocity per SKU Index to Category

Unit Sales

Unit Sales %

Chg YrAgo

ACV Wtd Distributi

on

HEALTHY CHOICE TOP CHEF CAFE STEAMERS GRILLED CHICKEN PEST CHIC 9.9OZ 7265500107 7265500107 HEALTHY CHOICE 149 $46,936 -20.9 54.8 87.3 19,154 -20.8 76.6

HEALTHY CHOICE TOP CHEF CAFE STEAMERS CHICKEN MARSALA CHCKN PNN 9.9OZ 7265500108 7265500108 HEALTHY CHOICE 279 $28,394 -10.5 75.4 61.0 11,671 -9.4 69.8

HEALTHY CHOICE CAFE SELECTIONS CHICKEN CHC ANG HR PST & VGT ENTRE 11OZ 7265523230 7265523230 HEALTHY CHOICE 401 $16,876 87.1 45.4 5,088 63.4

HEALTHY CHOICE CAFE STEAMERS CHICKEN CHCKN & VGTB STR FRY ENTRE 9.25OZ 7265500125 7265500125 HEALTHY CHOICE 423 $15,003 88.6 63.2 4,427 63.5

LEAN CUISINE CULINARY COLLECTION CHICKEN CLUB SOURDOUGH BREAD PANI 6OZ 1380017000 1380017000 LEAN CUISINE 74 $70,804 38.4 36.4 126.4 27,666 41.5 80.7

LEAN CUISINE CULINARY COLLECTION CHICKEN PARMESAN CHICKEN & S 10.875OZ 1380016607 1380016607 LEAN CUISINE 93 $62,246 63.1 41.8 113.0 25,255 70.8 79.4

LEAN CUISINE SIMPLE FAVORITES FIVE CHEESE RIGATONI ENTREE REGULAR 10OZ 1380017420 1380017420 LEAN CUISINE 99 $59,765 0.7 43.4 106.8 29,387 1.8 76.2

LEAN CUISINE CASUAL CUISINE DELUXE PIZZA FROZEN REGULAR CRUST 1CT 6OZ 1380004718 1380004718 LEAN CUISINE 106 $57,135 22.9 45.1 104.1 22,600 26.6 77.5

LEAN CUISINE CASUAL CUISINE SPINACH AND MUSHROOM PIZZA FROZEN 6.125OZ 1380013520 1380013520 LEAN CUISINE 107 $56,991 14.3 45.4 104.6 22,289 16.1 75.7

LEAN CUISINE SIMPLE FAVORITES CHICKEN BROCOL ALFRD CHICKEN AND PA 10OZ 1380017419 1380017419 LEAN CUISINE 122 $53,699 -4.9 49.0 97.3 26,854 -3.5 72.0

LEAN CUISINE CASUAL CUISINE BBQ RECIPE CHICKEN PIZZA FROZEN THIN C 6OZ 1380044608 1380044608 LEAN CUISINE 135 $51,053 10.3 51.9 98.1 20,218 13.0 75.2

MARIE CALLENDERS CRMY CHCK & SHRM PRM CZ701 ENTREE REGULAR 13OZ 2113150812 2113150812 MARIE CALLENDERS 101 $58,611 -26.1 43.9 106.2 26,113 -26.6 75.7

MARIE CALLENDERS BEEF & BROCCOLI BEEF BROCCOLI RICE ENTREE REGULA 13OZ 2113150817 2113150817 MARIE CALLENDERS 128 $52,578 2.2 50.3 100.3 23,495 2.2 77.6

MARIE CALLENDERS COMPLETE DINNERS HONEY ROASTED TURKEY TRKY MSHD 13OZ 2113150802 2113150802 MARIE CALLENDERS 131 $51,923 -16.9 51.0 95.2 23,792 -16.2 70.5

MARIE CALLENDERS FISH FISH BROCCOLI & RICE DINNER REGULAR FROZEN 12OZ 2113150711 2113150711 MARIE CALLENDERS 144 $48,236 -16.0 53.8 88.8 21,447 -17.2 75.0

MARIE CALLENDERS CREAMY PARMESN CHCKN POTPIE FROZEN 1CT 16OZ 2113150130 2113150130 MARIE CALLENDERS 170 $42,567 -8.3 58.9 84.7 17,379 -7.5 73.4

MARIE CALLENDERS FRESH FLAVOR STEAMERS ROASTED GARLIC CHCKN PENNE 13OZ 2113180037 2113180037 2113180037 MARIE CALLENDERS 191 $39,579 339.0 62.6 85.3 18,320 370.1 68.9

MARIE CALLENDERS COMPLETE DINNERS ROAST BEEF RST BF MSHD PTTS V 14.5OZ 2113150713 2113150713 MARIE CALLENDERS 192 $39,575 -11.4 62.8 79.9 18,047 -10.8 70.0

MICHELINAS CHICKEN CHICKN FRTR MSHD PTT ENTREE REGULAR 5OZ 1785415209 1785415209 MICHELINAS 42 $91,133 0.5 25.4 173.2 90,600 -2.2 67.7

MICHELINAS CHEESEBURGER BEEF AND MAC&CHEESE ENTREE REGULAR 8OZ 1785410574 1785410574 MICHELINAS 59 $79,101 17.7 31.6 123.0 74,130 14.8 80.9

MICHELINAS CHICKEN CHICKEN & VEG & RICE ENTREE REGULAR 8OZ 1785415100 1785415100 MICHELINAS 139 $50,017 -2.9 52.8 93.4 50,347 -5.6 70.7

MICHELINAS AUTHENTICO FIVE CHEESE ZITI ENTREE REGULAR FROZEN 9OZ 1785415114 1785415114 MICHELINAS 257 $30,807 7.6 72.6 81.1 30,828 3.8 41.6

STOUFFERS BEEF MEATLOAF & MASHD POT ENTREE REGULAR FROZEN 16OZ 1380044831 1380044831 STOUFFERS 52 $84,331 -16.3 29.2 145.3 27,870 -24.1 79.6

STOUFFERS GRILLED CHICKEN CHKN FETTUCINE&BRCLI ENTREE 10.5OZ 1380010115 1380010115 STOUFFERS 57 $80,861 15.9 30.9 144.0 32,813 17.2 80.6

STOUFFERS ROAST TURKEY TRKY VGTBL PTT STFNG DINNER REGULAR 16OZ 1380013308 1380013308 STOUFFERS 88 $64,695 -20.9 40.5 118.7 21,838 -28.8 75.7

STOUFFERS FISH FISH MACARONI&CHEESE ENTREE REGULAR FROZEN 9OZ 1380010201 1380010201 STOUFFERS 90 $63,192 -5.4 41.0 114.9 27,258 -0.4 77.0

STOUFFERS SALISBURY STEAK SALISBURY STEAK/MCRN ENTREE REGULAR 16OZ 1380044835 1380044835 STOUFFERS 137 $50,346 -12.1 52.3 117.7 16,356 -19.4 65.9

STOUFFERS FRIED CHICKEN CHICKEN//MSHD POTATO ENTREE 8.87OZ 1380010039 1380010039 STOUFFERS 140 $49,934 1.3 53.0 98.6 21,732 7.9 76.5

STOUFFERS

MICHELINA'S

MARIE CALLENDER'S

LEAN CUISINE

HEALTHY CHOICE

Potential Items Stocked at K-Va-T for Review


K-VA-T Foods-RMA - Food ROM - MULO

UPC Code $ RankDollar Sales

Dollar Sales %

Chg YrAgo

Cume $ Share

Dollar Vel per

SKU Index

Unit Sales %

Chg YrAgo

ACV Wtd Distributi

on

Dollar Sales

Dollar Sales %

Chg YrAgo

Dollar Velocity per SKU Index to Category

Unit Sales %

Chg YrAgo

ACV Wtd Distributi

on

BANQUET PPRN&CHS BREADSTICK FROZEN 4.66OZ 3100010214 3100010214 356 $4,553 -10.0 96.5 31.1 -8.6 95.5 $2,086 77.0 89.4 80.8 8.4

BERTOLLI RUSTICO BAKES REGULAR STUFFED PASTA SHELL ENTREE REGUL 10.6OZ 3100090009 3100090009 321 $6,292 -22.6 93.6 61.6 -21.3 87.6 $17,659 -48.4 88.2 -41.0 66.4BERTOLLI AL DENTE CHICKEN CHCKN FLRN W/PN PST ENTREE 10.1OZ 3100090014 3100090014 329 $5,720 -23.6 94.4 64.2 -22.5 86.6 $14,550 -38.2 83.8 -31.2 68.8BERTOLLI RUSTICO BAKES CHICKEN CHCK PRTB MSHR & RVL ENTREE REGUL 9.3OZ 3100090005 3100090005 346 $4,979 -22.0 95.8 59.3 -21.0 73.6 $16,090 -33.7 91.1 -25.5 36.0

BOSTON MARKET CHICKEN POTPIE FROZEN 1CT 16OZ 3891202248 3891202248 384 $2,956 98.2 95.7 95.8 $31,117 85.0 126.6 110.1 50.4BOSTON MARKET TURKEY POTPIE FROZEN 1CT 16OZ 3891202249 3891202249 424 $1,365 99.6 65.3 89.2 $92 97.4 6.4

HEALTHY CHOICE CAFE STEAMERS CHCKN SWT PTT & CRRT ENTREE 9.5OZ 7265500121 7265500121 319 $6,384 -16.4 93.4 52.9 -7.7 95.7 $6,050 -15.0 63.5 -13.6 24.4

KAHIKI GENERAL TSAOS CHICKN CHICKEN & VEG & RICE ENTREE REGULAR 11OZ 5434730121 5434730121 310 $6,912 -33.1 92.4 61.3 -35.9 94.1 $3,521 1.9 114.3 -7.4 14.6

KID CUISINE CHERRY AND BLUEBERRY PANCAKE BREAKFAST ENTREE 7.25OZ 3100019691 3100019691 341 $5,222 -11.0 95.4 47.4 -11.0 89.4 $230 -44.8 72.6 -44.8 6.4

LEAN CUISINE CULINARY COLLECTION PARMESAN FISH FISH PENNE PST VGTB 9OZ 1380044699 1380044699 293 $7,886 -18.7 90.5 67.3 -23.6 91.4 $26,194 32.8 73.8 30.3 73.7LEAN CUISINE CHEFS PICK CHICKEN CARBONARA CHCKN BCN MSHRM LNGN ENT 9OZ 1380017124 1380017124 296 $7,556 -27.7 90.8 59.9 -34.4 94.9 $24,758 -25.2 62.0 -24.6 75.0LEAN CUISINE SIMPLE FAVORITES VEGETABLE EGG ROLL AND RICE ENTREE R 9OZ 1380017112 1380017112 302 $7,355 -13.4 91.5 50.2 -18.1 96.7 $1,901 -72.7 42.4 -71.2 26.0LEAN CUISINE SPA COLLECTION GARLIC GINGER CHICKN CHICKN & VEG 9.875OZ 1380014408 1380014408 306 $7,056 -24.0 92.0 61.7 -30.0 87.4 $1,187 -34.5 84.5 -42.7 10.6

MARIE CALLENDERS CHICKEN CORN CHOWDER POTPIE FROZEN 1CT 16OZ 2113150131 2113150131 294 $7,677 -9.4 90.6 66.3 -13.3 94.5 $22,181 14.2 54.8 18.0 79.8

MICHELINAS LEAN GOURMET SNACKERS PEPPRONI SNACK GRILLED 4.65OZ 1785410661 1785410661 278 $8,543 -18.6 88.5 46.0 -18.7 96.9 $370 -94.3 69.6 -94.7 7.4MICHELINAS LEAN GOURMET THREE CHEESE CHICKEN CHICKEN & VEG & RICE 8OZ 1785410755 1785410755 287 $8,336 -22.9 89.7 46.9 -22.8 86.6 $366 -97.0 67.4 -97.2 7.1MICHELINAS LEAN GOURMET SHRIMP SHRIMP PASTA VEGETBL ENTREE REGULAR 8OZ 1785410628 1785410628 295 $7,622 -3.8 90.7 44.2 -3.9 85.4 $10,826 -8.4 65.6 -9.5 32.5

STOUFFERS DELUXE PIZZA FROZEN FRENCH BREAD 12.325OZ 1380015182 1380015182 284 $8,427 -41.5 89.3 60.8 -48.1 95.8 $33,586 -28.9 71.6 -29.9 84.7

WEIGHT WATCHERS SMART ONES ANYTIME SELEC CHICKEN AND CHEESE FLOUR 8OZ 2580002660 2580002660 291 $8,221 -36.7 90.2 66.7 -35.7 93.9 $10,338 -56.9 60.3 -62.0 41.8WEIGHT WATCHERS SMART ONES SPINACH AND RICOTTA PASTA RICOTT & SPNC 9OZ 2580002025 2580002025 316 $6,538 -8.4 93.1 48.7 -8.6 83.9 $36,017 -16.1 66.3 -14.2 82.4WEIGHT WATCHERS SMART ONES CHEESE RIGTONI AND CHEESE ENTREE REGULA 9OZ 2580002024 2580002024 323 $6,277 -5.2 93.8 45.7 -6.0 90.6 $23,185 -10.1 53.5 -7.8 75.9WEIGHT WATCHERS SMART ONES BEEF LASAGNA ENTREE 270 CALORIES FROZEN 9OZ 2580002241 2580002241 343 $5,110 -23.6 95.6 42.8 -24.5 82.5 $7,963 -12.0 40.7 -7.2 36.0WEIGHT WATCHERS SMART ONES REGULAR VEGETABLE FRIED RICE ENTREE 8.5OZ 2580002946 2580002946 347 $4,960 -22.8 95.9 40.0 -23.6 91.2 $11,487 -28.8 36.9 -26.2 44.5WEIGHT WATCHERS SMART ONES TUNA TUNA NOODLE GRATIN ENTREE 240 CALO 9OZ 2580002256 2580002256 354 $4,632 -23.6 96.4 43.3 -24.4 86.3 $22,815 1.1 57.5 3.6 70.2

BANQUET BERTOLLI

HEALTHY CHOICE

BOSTON MARKET

MICHELINA'S

STOUFFERSWW SMART ONES

MARIE CALLENDER'S

LEAN CUISINE

KAHIKI KID CUISINE

SHELVING

M.A.P.S.

First Decision in Convenient Meals is: Who am I Cooking For?

Convenient Meals

Just for Kids Individual Meals

Frozen SSM Shelf Stable

Refrig SS Lunch / Entree

Meals For Many (Many People or Multiple Occasions)

Fz Handheld Mini Meals

Family Involved

Meals

Frozen MSM Frozen Meat

For Kids Only

For Self For Others

• Multi Serve and Single Serve Meals serve different eating occasions based on the number of people eating

• Given this, Single Serve Meals and Multi Serve Meals should be in separate sections

Source: Hendry Market Structure – Convenient Meals

First Break in SS Meal Consumer Decision Tree is Segment

Frozen SSM

Value

Brand

Healthy

Brand

Premium

Brand

Frozen SSM addresses the “cooking for self” decision

First decision point is whether I want a BFY option vs. a full fat/sodium/etc… product

Consumer Behavior Defines SS Meals Shelf Set Recommendation

• Premium Regular Serves as the Bridge Between Economy and BFY, having the highest interaction with each

• Economy and BFY have much lower cross-shop with each other

Economy Premium Regular

Better for You

% of shoppers buying48%

51%

50%

75%

46%

72%

Source: Shopper Card Data from a Major National Retailer – 52 Weeks Ending September 2015

When Shopper Switch from their Primary Brand they first Stay within Segment

Cross Shop

1st

2nd

3rd

Economy brand shoppers choose Premium Regular brands before Better for You

Source: Shopper Card Data from a Major National Retailer – 52 Weeks Ending September 2015

16 Doors is Minimum Size to Drive Profit in SS Meals

Source: Kantar Single Serve Meals 2015 & Willard Bishop Super Study

Bookend Single Serve with Pot Pies/Value and Healthy, Premium Regular Center1

2

3

Bookend Each Segment with the Top 2 Brands

Block Segments & Brands Vertically

Current K-Va-T SS Meal POGs

EconomyMulti Serve Meals Prem. Regular

Better for You

Better for You Premium Regular Economy

9 Door Entrées

15 Door Dinners

Opportunity to Block According to Shopper Behavior

Case for a Pot Pie Door

September 2015

GreaterSouthea

st

Pot Pies are $126 MM and Growing in the Greater Southeast*

*Southeast – MULO + Mid-South MULO Regions

2012 2013 2014 2015

$109

$118 $119

$126Pot Pie $ Sales ($MM)

$17 MM

In Dollar Sales Growth in Last 4 Years

16%$ Growth since 2012,

and YoY growth in:

Source: IRI CAG FY Ending 2012-2015 & Current 52 Weeks Ending July 26 th, 2015

+13%

+3%Buyers Trips

Pot Pies are Strong in Single Serve Meals

*Southeast – MULO + Mid-South MULO Regions

Single Serve Meals Pot Pies

-2.5%

4.6%Dollar % Chg. Vs. YA

Greater Southeast Region*

7 Pts Better than the SSM Category as a Whole

Top 2Ranked Items in SSM

5 of the Top 15Ranked Items

And…

3 4In the Top 40 SSM

ItemsSource: IRI Syndicated Data Current 52 Weeks Ending July 26th, 2015

The Time has Come for a Separate Pot Pie Door in Southeast Retailers

Pot Pies Fz Whipped Topping Swt Gds + Cheesecakes

MS Pies

$126$94 $105

$152Annual Dollar Sales ($MM)

Greater Southeast Region*

• At $126MM, Pot Pies are large enough to warrant a separate door in SS Meals• Categories such as Whipped Topping and Frozen Sweet Goods are smaller and

many times have 2 doors• Pies is slightly larger and often has 2+ doors

*Southeast – MULO + Mid-South MULO RegionsSource: IRI Syndicated Data Current 52 Weeks Ending July 26th, 2015

Accounts with a Pot Pie Door See 3% Better Sales Velocities than their Food Competition

Source: Surveyed Pot Pie Door Accounts vs FOOD CRMA 13 WE 7/26/15

Potential Pot Pie Section

3% Better Pot Pie Sales Velocities

81%

Of Retailers with Pot Pie Door Out-

Perform their Market

4Points

Benefits of Pot Pie Door

Better Share of Market than Accts

with No Door

54% of Pot Pie Sales Nationally are Sold by Retailers with a Pot Pie Door

• Yet, these Retailers account for only 44% of Total Edible Sales Nationally• They Over-Index on Pot Pies - 123 $ Index

Source: IRI S3 Panel Data Current 52 Weeks Ending August 9th, 2015

East Retailers with a Pot Pie Door Out-Pace Competition

Acct 1 Acct2 Acct 3

12.9%

7.1%

-1.0%

3.9%2.4%

-2.7%

Pot Pie Dr Acct ROM

Anywhere from 2 – 9 points Better

Dollar % Chg. Vs. YA

Source: IRI Syndicated Data Current 26 Weeks Ending July 26th, 2015

Pot Pie Door Retailers in the East Collectively Have:

Better Trends8% vs. 1%

GrowthStronger Velocities3.5% Better

Growing Share of Market2.0 Pts

Taken from Competition

3 Major Retailers have Converted to Separate Pot Pie Doors with Strong Results

• Collectively these Accounts have added over $1MM in Sales vs. YA

• 6% Growth Rate vs. YA, which is more than double the National Growth rate of 2.8%

• Collectively gained 8 points of Market Share vs. the Competition

Acct 1 Acct2 Acct 3

4.7%6.8%

8.8%

0.1%

5.3%

-4.8%

Pot Pie Dr Acct ROM

All 3 are Growing since Implementation and their ROM

Dollar % Chg. Vs. YA

Source: IRI Syndicated Data Current 52 Weeks Ending July 26th, 2015

The Time is Now for a Pot Pie Door

1

2

5

Pot Pies continue to grow in the SoutheastUp 16% since 2012

Pot Pies are strong in SS Meals5 of the Top 15 Ranked Items

At $126 MM in Sales Pot Pies are larger than Category which have more than 1 Door

Retailers with Pot Pie Door have Better $ Velocity3% Better than other Retailers

East Region Accounts, with a Pot Pie Door, and Newly Converted Accounts Out Perform their

Competition

3

4

Step #1Create a Separate Multi Serve Meal Set

• Separate Multi-Serve Meals from the 15Dr Dinners Set

• Create a 7 DR POG

Step #2Create a Separate Pot Pie Door

• Consolidate all Pot Pie SKUs into 1 Door with a 7 Shelf Profile

• Banquet & Marie are 91% of PP Sales

BANQUET50%

MARIE CALLEN-

DER'S41%

BOSTON MKT1%

STOUFFERS5%

A/O3%

Dollar Shr. Of Pot Pies

Step #3Align SS Meal Set with CDT and Shopper Behavior

• Move Michelina’s from the Entrée’s set inline next to Banquet to block Economy

• Move Teritary Premium Regular Brands next to Marie Callender’s • This will place them between M.C. and Stouffers• Creates a contiguous Premium Regular set in the middle of Single Serve Meals

Stouffers

Premium Reg.Economy

Step #3Align SS Meal Set with CDT and Shopper Behavior

• Move Stouffer’s to the left of WWSO to align with other Premium Regular Brands

• Move Healthy Choice from the Dinners set to the right side of Lean Cuisine/WWSO • Creates a Better for You Block• Healthy Choice remains in a 6 shelf profile

Other Premium Regular

Better for YouPremium Reg.

Next Steps - Shelving

1

2

3

Create a separate Multi-Serve Meal Set• Cooking for many is a different occasion than cooking for one• Easy to break 7 doors off the Dinners POG as they are separated in current set

Create a 1 Door Pot Pie Set• Accounts with Pot Pie door out perform accounts with inline set• Key competition has adopted Pot Pie Door

Reset SS Meals section according to shopper behavior• Economy -> Premium -> Better for You• First decision in the CDT

Documents

K-Va-T Frozen SSM Review - Sept 2015