CALIFORNIA Region

Regional Composite

REGIONALDATA REPORT

JAN - JUN2014 vs. 2013

2

Methodology

• IRI gathers chain-wide sales across all RMAs (Retail Market Areas)– Starting in 2013, the IRI Regions reflect an expanded retail data set which

includes sales and volume from Walmart, Sam’s Club, Target and BJ’s, in addition to traditional grocery retailers

• 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

• Categories: Total Avocados, Produce = Total Produce including Avocados

• Timeframe: YTD Q2 (January – June) 2014

• Retail data provided by IRI / FreshLook Marketing

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

3

California Region: Highlights - YTD Q2

• Overview based on the following geography:– The California Region captures the Markets of Los Angeles, Sacramento, San Diego

and San Francisco, plus additional cities not included in Markets

• California Overview– In Q2 2014, Avocado dollar growth of +10% outpaced Produce by +2 points– Category dollars grew +6% in 2013 and +10% in 2014 for a net growth of +17% over

2012– Category units grew +8% in 2013 and declined -7% in 2014 for net growth of +1%

over 2012– Category average selling price (ASP) decreased -2.0% in 2013 and increased +18%

in 2014 to $1.07/unit

• California Per Store Averages– 2014 Average dollars of $19,122 per store were +8% higher than 2013, and +13%

higher than 2012– 2014 Average units of 17,922 per store were -9% lower than 2013 and -2% lower

than 2012

• California versus Total U.S. trends– CA category units declined -7% while the national average grew +3%– CA category dollar trend of +10% was -8 points lower than the national average– CA 2014 category ASP grew +18% to $1.07/unit, but was -4% lower than the national

average of $1.11/unit

4

California: YTD Q2 Retail Dollar Trend ComparisonsAvocados vs. Produce

• Avocado retail dollars through Q2 2014 trended ahead of Produce – 2013 versus 2012, Avocados lagged Produce by -4 points– 2014 versus 2013, Avocado dollar growth of +10% outpaced Produce

by +2 points– 2014 versus 2012, Avocados lagged Produce by -3 points

5

California: YTD Q2 Avocado Retail Overview

• Category dollars grew +6% in 2013 and +10% in 2014 for a net growth of +17% over 2012

• Category units grew +8% in 2013 and declined -7% in 2014 for net growth of +1% over 2012

• Category average selling price (ASP) decreased -2.0% in 2013 and increased +18% in 2014 to $1.07/unit

6

RETAIL UNITS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 60,098,987 68,740,026 +14.4% 264,694,895 303,132,864 +14.5%

4225 Large Hass #40 & #48 sizes 70,778,644 51,622,276 -27.1% 323,811,238 296,073,975 -8.6%

4770 X-Large Hass #36 sizes & larger 5,091,333 2,146,271 -57.8% 34,374,820 17,379,846 -49.4%

Other Greenskins, Pinkertons, non-Hass PLUs 17,468 16,759 -4.1% 12,084,056 12,182,463 +0.8%

Organic All Organic PLUs 1,936,218 2,759,144 +42.5% 8,438,646 11,987,570 +42.1%

Bags All bagged PLUs 11,298,098 13,778,465 +22.0% 97,225,194 123,820,515 +27.4%

149,220,747 139,062,940 -6.8% 740,628,849 764,577,232 +3.2%

RETAIL DOLLARS

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller 38,571,661$ 57,406,705$ +48.8% 189,531,524$ 259,310,608$ +36.8%

4225 Large Hass #40 & #48 sizes 77,330,289$ 70,156,130$ -9.3% 370,389,541$ 398,628,802$ +7.6%

4770 X-Large Hass #36 sizes & larger 6,993,086$ 4,942,356$ -29.3% 44,528,664$ 33,037,568$ -25.8%

Other Greenskins, Pinkertons, non-Hass PLUs 19,749$ 18,840$ -4.6% 20,407,504$ 22,099,893$ +8.3%

Organic All Organic PLUs 2,996,459$ 4,272,307$ +42.6% 13,237,876$ 19,904,947$ +50.4%

Bags All bagged PLUs 8,964,919$ 11,579,887$ +29.2% 82,446,073$ 115,149,905$ +39.7%

134,876,164$ 148,376,224$ +10.0% 720,541,181$ 848,131,724$ +17.7%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2013 2014 Variance 2013 2014 Variance

4046 Small Hass #60 sizes & smaller $0.64 $0.84 +30.1% $0.72 $0.86 +19.5%

4225 Large Hass #40 & #48 sizes $1.09 $1.36 +24.4% $1.14 $1.35 +17.7%

4770 X-Large Hass #36 sizes & larger $1.37 $2.30 +67.7% $1.30 $1.90 +46.7%

Other Greenskins, Pinkertons, non-Hass PLUs $1.13 $1.12 -0.6% $1.69 $1.81 +7.4%

Organic All Organic PLUs $1.55 $1.55 +0.1% $1.57 $1.66 +5.8%

Bags All bagged PLUs $0.79 $0.84 +5.9% $0.85 $0.93 +9.7%

$0.90 $1.07 +18.0% $0.97 $1.11 +14.0%

JAN

UA

RY -

JUN

E: 2

013

vs 2

014

California Total U.S.

TOTAL CATEGORY UNITS

California Total U.S.

TOTAL CATEGORY DOLLARS

California Total U.S.

CATEGORY ASP ($/Unit)

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

• CA category units declined -7% while the national average grew +3%– CA category

units switched from primarily PLU 4225 to 4046

• CA category dollar trend of +10% was -8 points lower than the national average– CA growth was

primarily driven by PLU 4046, which grew +$19 million

• CA 2014 category ASP increased +18% to $1.07/unit, but was -4% lower than the national average of $1.11/unit– 4046 ASP

increased 30% vs. prior year to $0.84/unit

7

$16,939 $17,698$19,122

+4.5% +8.0%

Avg Retail Dollars Per Store

2012 2013 2014

18,313 19,580

17,922

+6.9% -8.5%

Avg Retail Units Per Store

2012 2013 2014

California: YTD Q2 Category Per Store Averages

• In 2014, per store dollar average exhibited growth over the prior year– 2014 Average dollars of $19,122 per store were +8% higher than 2013,

and +13% higher than 2012– 2014 Average units of 17,922 per store were -9% lower than 2013 and

-2% lower than 2012

8

California: 2012 through Q2-2014 Per Store AveragesBy Quarter - Units vs. ASP

• Average Retail Units Per Store– The peak quarter was 2013-Q2 at 10,048 units per store when ASP was

$0.93/unit– The lowest quarter was 2013-Q4 at 7,754 units per store when ASP was at

$1.05/unit• ASP

– Lowest ASP to date occurred during 2012-Q1, $0.87/unit– Highest ASP to date occurred during 2014-Q2 at $1.15/unit

9

California Region: Highlights - YTD Q2

• Overview based on the following geography:– The California Region captures the Markets of Los Angeles, Sacramento, San Diego

and San Francisco, plus additional cities not included in Markets

• California Overview– In Q2 2014, Avocado dollar growth of +10% outpaced Produce by +2 points– Category dollars grew +6% in 2013 and +10% in 2014 for a net growth of +17% over

2012– Category units grew +8% in 2013 and declined -7% in 2014 for net growth of +1%

over 2012– Category average selling price (ASP) decreased -2.0% in 2013 and increased +18%

in 2014 to $1.07/unit

• California Per Store Averages– 2014 Average dollars of $19,122 per store were +8% higher than 2013, and +13%

higher than 2012– 2014 Average units of 17,922 per store were -9% lower than 2013 and -2% lower

than 2012

• California versus Total U.S. trends– CA category units declined -7% while the national average grew +3%– CA category dollar trend of +10% was -8 points lower than the national average– CA 2014 category ASP grew +18% to $1.07/unit, but was -4% lower than the national

average of $1.11/unit