INDUSTRY UPDATE │ FEBRUARY 2020 - Harris Williams€¦ · Group Overview Harris Williams ... Westrock Coffee to acquire S&D Coffee, a producer of coffee and tea for $405M, from

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams Ltd, which is a private limited company incorporated under English lawwith its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams Ltd is authorized andregulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams Ltd conduct business.

FOOD AND BEVERAGE

INDUSTRY UPDATE │ FEBRUARY 2020

PAGE |

www.harriswilliams.com

Group Overview

Harris Williams is a leading advisor to the food and beverage market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas:

Agribusiness

Bakery

Beverages

Branded and Private Label

Dairy

Distribution

Ingredients

Meat and Protein

Natural and Organic

Processing

Produce

Restaurant and Retail

Snacks

Contacts

Tim AlexanderManaging [email protected]+1 (612) 359-2716

Ryan BudlongManaging [email protected] +1 (415) 217-3409

Brant CashManaging [email protected]+1 (612) 359-2709

Ryan FreemanManaging [email protected]+1 (612) 359-2703

Andy WarczakVice [email protected]+1 (612) 359-2714

Brant Wilczek

Vice President

[email protected]

+1 (612) 359-2732

Thomas DeMinico

Vice President

[email protected]

+1 (612) 359-2719

Richard Furseth

Vice President

[email protected]

+1 (612) 359-2733

M A R K E T U P D A T E 1

The M&A landscape in the food and beverage industry continues to be very active with

several notable transactions thus far in 2020. Ronnoco Beverage Solutions acquired

Trident Beverage, a dispensed beverage provider. Westrock Coffee to acquire S&D

Coffee, a producer of coffee and tea for $405M, from Cott Corporation. Lakeview

Capital acquired Mochi Ice Cream, a leader in the mochi ice cream category, from

Century Park Capital Partners.

WHAT WE’RE SEEING

FOOD AND BEVERAGE


WHAT WE’VE BEEN DOING

C L O S E D H A R R I S W I L L I A M S T R A N S A C T I O N S

1

has entered into a partnership with

a portfolio company of

has been acquired by













Land Animal Protein Division of


has received a minority investment from


a portfolio company ofa portfolio company of


http://www.harriswilliams.com/

PAGE |

HARRIS WILLIAMS ADVISES KRONOS FOODS, INC.

2

FOOD AND BEVERAGE


VITAL SIGNS

C O M M O D I T Y P R I C E I N D I C E S 1

P R O T E I N P R I C E I N D I C E S 2 , 3

40

80

120

160

Feb-15 Aug-15 Jan-16 Jul-16 Dec-16 May-17 Nov-17 Apr-18 Sep-18 Mar-19 Aug-19 Jan-20

Co

mm

od

ity

Pri

ce In

dex

Crude Oil Soybean Wheat Corn

Wheat:

19.4%

Corn:

1.7%

Crude Oil:

(5.5%)

Soybeans:

(16.3%)

90

100

110

Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19

Pro

tein

Pri

ce In

dex

Beef Pork Poultry

Pork

3.3%

Beef:

0.7%

Poultry

(2.6%)



B U S I N E S S O V E R V I E W K E Y V A L U E D R I V E R S

Harris Williams advised Kronos Foods, Inc., a portfolio company of Grey Mountain Partners, on its sale to Entrepreneurial Equity Partners.

Founded in 1975, Kronos Foods, Inc., is a leading provider of worldcuisine, offering authentic Mediterranean foods, ready-to-eat specialtyproteins, and value-added bakery products

Kronos is a trusted partner to national accounts, regional chains,independent operators, and high-profile foodservice venues

Attractive offering of on-trend, world cuisine

A leadership position in attractive core Mediterraneanmarket

Innovation partner to leading restaurant chains

Robust core independent restaurant customer base

Proven and capable management team

Efficient and flexible operational capabilities

REPRESENTATIVE PRODUCTS

Traditional Mediterranean GyrosReady-to-Eat Gyros and

Specialty Proteins

Sauces and HummusTraditional and Value-Added Bakery

PAGE |

VITAL SIGNS

3

R E S T A U R A N T A N D G R O C E R Y S T O R E S A L E S I N D I C E S 4

C O N S U M E R F O O D P R I C E I N D E X I N F L A T I O N 2

FOOD AND BEVERAGE


VITAL SIGNS

K E Y T R A D I N G S T A T I S T I C S 1

(1.0)

-

1.0

2.0

3.0

4.0


Infa

tio

n (

%)

80

90

100

110

120

130

140


Sa

les

In

de

x

Restaurant Grocery

Grocery:

31.8%

Restaurant:

19.0%

Net Debt /

3 Month 1 Year 3 Month 1 Year Fwd PE LTM PE EV/EBITDA EBITDA

Protein Process ing (8.6%) 11.9% (23.4%) 14.6% 12.3x 17.3x 12.5x 3.0x

Fruit and Vegetable (5.2%) (3.9%) 32.1% (19.2%) 12.2x 26.2x 10.8x 4.2x

Ingredients / Flavors 7.5% 15.7% 3.9% 9.0% 20.3x 36.8x 16.6x 2.2x

Agribus iness 3.1% (6.3%) 12.3% (16.9%) 18.8x 19.5x 9.5x 2.7x

Branded Processed Foods 4.5% 17.5% 8.1% 17.3% 17.9x 26.3x 12.4x 3.8x

Private Label Foods and Beverages 2.2% 32.3% 2.6% (10.6%) 8.7x 26.5x 10.4x 4.7x

Natura l / Organic Foods / BFY 2.4% 16.1% 18.2% 37.6% 28.3x NA 28.8x 6.2x

Baked Goods 2.8% 3.4% 7.3% 0.0% 20.4x 26.2x 11.4x 3.1x

Dairy 7.6% (6.6%) 13.4% 2.2% 14.7x 21.0x 13.8x 3.0x

Non-Alcohol ic Beverages 9.2% 4.3% 6.9% 4.2% 23.5x 19.2x 13.1x 2.2x

Alcohol ic Beverages (1.8%) 6.2% 0.4% 10.9% 21.4x 28.6x 13.5x 3.0x

Snacks (4.8%) 23.8% (3.3%) 15.8% 24.4x 20.2x 17.8x 2.2x

Grocery Dis tribution (4.0%) (17.9%) 28.6% 17.9% 12.0x 20.0x 10.2x 5.8x

Food Retai l 2.1% (11.9%) 6.7% 14.6% 11.8x 14.7x 8.4x 3.9x

Foodservice 2.1% 16.2% 14.8% 20.2% 18.4x 36.9x 17.3x 4.9x

Quick Service Restaurant 2.3% 12.5% 1.3% 11.2% 25.1x 27.2x 19.7x 5.0x

Fast Casual 13.5% 17.6% 9.5% 72.1% 51.9x NA 15.2x 5.7x

Differentiated Casual 0.6% (14.3%) 15.2% 33.9% 17.4x 19.3x 12.1x 5.3x

Casual Dining Restaurant 6.3% 8.2% 13.8% 39.4% 15.0x 16.6x 12.0x 6.7x

Fine Dining (0.4%) (11.3%) (10.8%) 14.4% 14.2x 14.3x 11.9x 4.1x

Pizza 7.2% 26.2% 10.4% 20.1% 35.9x 31.0x 22.8x 4.9x

Beverage / Snack Retai l (0.7%) 14.2% 14.5% 25.2% 24.4x 27.6x 20.6x 6.0x

Fami ly Restaurant 1.7% 15.7% 6.2% 13.9% 16.3x 14.2x 14.5x 2.4x

Overall Median 3.4% 8.0% 6.3% 16.5% 19.0x 22.4x 13.2x 4.0x

Cons

umer

and

Ret

ail

Industry and Segment

Stock Price % Change EV/EBITDA % Change Current Valuation Stats

Inpu

tsFo

od a

nd B

ever

age

PAGE |

PUBLIC EQUITY MARKET OVERVIEW

4

P U B L I C C O M P A N Y S E C T O R P E R F O R M A N C E ( M E D I A N O N E Y E A R C H A N G E I N S T O C K P R I C E ) 1

R E C E N T E Q U I T Y O F F E R I N G S 5

FOOD AND BEVERAGE


Grocery Distribution

Differentiated Casual

Food Retail

Fine Dining

Dairy

Agribusiness

Fruit and Vegetable

Baked Goods

Non-Alcoholic Beverages

Alcoholic Beverages

Casual Dining Restaurant

Protein Processing

Quick Service Restaurant

Beverage / Snack Retail

Family Restaurant

Ingredients / Flavors

Natural / Organic / BFY

Foodservice

Branded Processed Foods

Fast Casual

Snacks

S&P

PizzaPrivate Label

(80.0%) (65.0%) (50.0%) (35.0%) (20.0%) (5.0%) 10.0% 25.0% 40.0% 55.0% 70.0% 85.0%

Inputs Food and Beverage Consumer and Retail

Close Date Filing Date Issuer Ticker Transaction Type Gross Proceeds ($M) Use of Funds

2/14/18 02/14/18 Reeds Inc REED Follow-On -Secondary

2/6/18 02/06/18 Simply Good Foods Co SMPL Follow-On $112.8Secondary

2/5/18 02/05/18 Liquor Stores Na Ltd LIQ.UN Follow-On $82.6General Corp. Purp.

1/31/18 12/13/17 Ipic Entertainment Inc IPIC IPO $15.1General Corp. Purp.

1/26/18 01/26/18 Naturally Splendid Enterprises Ltd NSP Follow-On $2.6General Corp. Purp.

12/17/19 12/11/19 RiceBran Technologies RBIT Follow-On $7.4General Corp. Purp.

11/20/19 11/18/19 Performance Food Group Co PFGC Follow-On $515.0General Corp. Purp.

Reduce Indebtedness

11/19/19 - The Chefs Warehouse Inc CHEF Convertible $150.0Working Capital

General Corp. Purp.

10/30/19 9/27/19 Diamond Estates Wines & Spirits Inc DWS Follow-On $1.8General Corp. Purp.

Marketing & Sales

10/23/19 10/22/19 Reeds Inc REED Follow-On $7.0General Corp. Purp.

Working Capital

10/16/19 9/20/19 BellRing Brands Inc BRBR IPO $552.0General Corp. Purp.

Pay Fees & Expenses

10/7/19 10/7/19 Simply Good Foods Co SMPL Follow-On $352.5General Corp. Purp.

Future Acquisitions

PAGE |

PUBLIC EQUITY MARKET OVERVIEW

5

F O O D A N D B E V E R A G E I N D U S T R Y S T O C K P E R F O R M A N C E I N D E X 4

FOOD AND BEVERAGE


M&A MARKET OVERVIEW

Highlighted Food and Beverage M&A Transactions1

Ronnoco Beverage Solutions acquired Trident Beverage

Based in Houston, TX, Trident Beverage is a dispensed beverage provider serving schools, daycares, restaurants and other food venues throughout the U.S.

With the financial backing of Huron Capital Partners, the acquisition will further bolster Ronnoco’s position as a one-stop, full-line coffee and beverage solutions provider

R O N N O C O B E V E R A G E S O L U T I O N S A C Q U I R E D T R I D E N T B E V E R A G E

Enterprise Value: NARevenue Multiple: NAEBITDA Multiple: NAAnnounced: February 10, 2020

W E S T R O C K C O F F E E C O M P A N Y T O A C Q U I R E S & D C O F F E E

Westrock Coffee Company to acquire S&D Coffee for $405M from Cott Corporation

Based in Concord, NC, S&D Coffee is the largest tea and coffee manufacturer and supplierto restaurants and convenience stores in the U.S.

The strategic combination will create a premier coffee, tea, and extract supplier and willfurther expand the product offerings of Westrock Coffee

Enterprise Value: $405MRevenue Multiple: NAEBITDA Multiple: NAAnnounced: January 30, 2020

L A K E V I E W C A P I T A L A C Q U I R E D M O C H I I C E C R E A M

Lakeview Capital acquired Mochi Ice Cream from Century Park Capital Partners

Based in Los Angeles, CA, Mochi Ice Cream is a leading brand in the mochi ice creamcategory in North America

Michigan-based family office, Lakeview Capital, is looking to deploy significant capital tohelp Mochi become a leading, global branded mochi snack platform

Enterprise Value: NARevenue Multiple: NAEBITDA Multiple: NAAnnounced: January 30, 2020

70

80

90

100

110

120

130

140

150

Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20

Restaurant Protein Processing/DairyNatural/ Organic BeveragePrivate Label Food Manufacturing S&P 500

35.0%

25.0%

23.0%

18.5%

14.8%

(17.4%)

PAGE |

M&A MARKET OVERVIEW*

M E D I A N F O O D A N D B E V E R A G E T R A N S A C T I O N M U L T I P L E S

FOOD AND BEVERAGE


P R I V A T E E Q U I T Y I N V E S T M E N T S & E X I T S

L A S T 1 0 D E A L S A N N O U N C E D

Latest Deals and Announced Private Equity Activity1

Food and Beverage M&A Trends1

A N N O U N C E D F O O D A N D B E V E R A G E T R A N S A C T I O N S

* M&A transactions include European and cross-border deals since 2015.

6

8.0x

11.3x

9.2x 9.7x

8.8x

10.0x 10.9x

10.5x 11.2x

16.3x

0.00x

0.40x

0.80x

1.20x

1.60x

2.00x

2.40x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020YTD

EV / LTM

Sales Mu

ltiple

EV /

LTM

EB

ITD

A M

ult

iple

EV / LTM EBITDA EV / LTM Sales

$8.2

$24.0

$55.7

$120.7

$247.7

$52.9$77.6

$110.6

$58.3

$2.0 0

100

200

300

400

500

600

700

800

900

$0

$40

$80

$120

$160

$200

$240

$280

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020YTD

Nu

mb

er of Tran

saction

s

Agg

rega

te D

eal V

alu

e ($

inb

illio

ns)

Aggregate Deal Value # of Deals

25 2638

31

65

122139 150

131

418

3643 48

65 67

9486

74

7

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD

Nu

mb

er o

f Tr

ansa

ctio

ns

Number of Investments Number of Exits

Announced Target Buyer1/0/1900 0 Cargill, Incorporated2/6/2020 Grieg NL Seafarms Grieg Seafood

2/5/2020 Quinoa Operations of Andean Naturals Ardent Mills

2/5/2020 Assets of Érablier Mondias Natural Products

2/5/2020 Charlestowne Premium Beverage Charlestowne Premium Beverages

2/5/2020 Assets of Bama ICEE Distributors The ICEE Company

2/4/2020 Production Facility in Saint Charles, MI TNT Crust

2/4/2020 Morey's Seafood International SeaPak Shrimp & Seafood

2/4/2020 Bryans at The Fisherman's Lodge Catch Seafood

2/4/2020 Zaks (UK) Limited Neighbourhood Restaurants

2/3/2020 Assets of Cambridge Packing Company Chefs' Warehouse

PAGE |

DEBT MARKET OVERVIEW

Q U A R T E R L Y L O A N V O L U M E

FOOD AND BEVERAGE


Food and Beverage Loan Activity6

A V E R A G E S P R E A D O N F O O D A N D B E V E R A G E L O A N S

C R E D I T S T A T I S T I C S C R E D I T S T A T I S T I C S

Recent Debt Offerings7

7

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17

Loan

Vo

lum

e b

y Q

uar

ter

($ in

bill

ion

s)

Institutional Pro Rata

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

2012 2013 2014 2015 2016 2017

Ave

rage

Sp

read

Ove

r LI

BO

R

Revolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 200

L + 400

L + 600

L + 800

L + 1000A

vera

ge S

pre

ad O

ver

LIB

OR

0.0x

2.0x

4.0x

6.0x

Debt/EBITDA

Senior Debt/EBITDA

EBITDA/Cash Interest

EBITDA - Capex/Cash Interest

EBIT

DA

Mu

ltip

le

2013 2014 2015 2016 2017

Effective Date Borrower Name Description Tranche Amount Type Seniority Type Spread

2/7/20 Biscuit International SAS Manufactures gluten and milk free biscuits 120.37 Term Loan Senior

2/7/20 Biscuit International SAS Manufactures gluten and milk free biscuits 536.21 Term Loan B Senior 400

2/7/20 Biscuit International SAS Manufactures gluten and milk free biscuits 93.02 Revolver/Line >= 1 Yr. Senior

2/7/20 Sime Darby Plantations Sdn Bhd Provides palm oil 950 Term Loan Senior

2/5/20 Cerelia Produces and sells ready to bake chilled dough 461.87 Term Loan B Senior

2/5/20 Cerelia Produces and sells ready to bake chilled dough 109.97 Revolver/Line >= 1 Yr. Senior

2/4/20 Philip Morris International Inc Manufactures and sells nicotine-containing products 2000 364-Day Facility Senior 15

1/31/20 Britvic Soft Drinks Ltd Manufactures soft drinks 527.96 Revolver/Line >= 1 Yr. Senior

1/31/20 Tokyo Suirei Offers apartments and related services 1.85 Revolver/Line >= 1 Yr. Senior

1/30/20 Wells Enterprises Inc Produces and markets ice creams and frozen treats 173 Term Loan B Senior 275




1/29/20 Froneri Ltd Produces and markets ice creams and frozen treats 245 Term Loan Senior 575

1/29/20 Froneri Ltd Produces and markets ice creams and frozen treats 2670 Term Loan B Senior 225

1/29/20 Froneri Ltd Produces and markets ice creams and frozen treats 2399.96 Term Loan B Senior 262.5

1/29/20 Froneri Ltd Produces and markets ice creams and frozen treats 269.72 Term Loan Senior 575

1/29/20 Froneri Ltd Produces and markets ice creams and frozen treats 660.54 Revolver/Line >= 1 Yr. Senior 275

1/28/20 Japan Tobacco Inc Manufactures and sells tobacco products 916.34 Term Loan Senior 25

1/28/20 Kellogg Co Manufactures and markets ready-to-eat cereal and convenience foods 1000 364-Day Facility Senior 125

1/23/20 Musashino Foods Co Ltd Operates as bakery Product Manufacturing industry 91.34 Term Loan Senior

1/23/20 Musashino Foods Co Ltd Operates as bakery Product Manufacturing industry 22.84 Term Loan Senior

1/17/20 Nutrition & Biosciences Inc Offers food products 625 Term Loan Senior 125

PAGE |

M&A OVERVIEW*

M E D I A N L T M T R A D I N G M U L T I P L E S

FOOD AND BEVERAGE


Median LTM Trading Multiples & Quarterly Food and Beverage M&A1

Q U A R T E R L Y M & A A C T I V I T Y


Recent Food and Beverage M&A1

8

Enterprise Enterprise Value Private Equity Geographic

Announced Target Seller Buyer Value ($M) Sales EBITDA EBIT Involvement Location

2/5/2020 Quinoa Operations of Andean Naturals Andean Naturals Ardent Mills - - - - N.A.

2/5/2020 Assets of Érablier Érablières des Alléghanys Mondias Natural Products $0.8 - - - N.A.

2/5/2020 Charlestowne Premium Beverage - Charlestowne Premium Beverages - - - - N.A.

2/5/2020 Assets of Bama ICEE Distributors Bama ICEE Distributors The ICEE Company - - - - N.A.

2/4/2020 Production Facility in Saint Charles, MI - TNT Crust - - - - N.A.

2/4/2020 Morey's Seafood International Acuity Capital Partners SeaPak Shrimp & Seafood - - - - P N.A.

2/4/2020 Bryans at The Fisherman's Lodge - Catch Seafood - - - - EU

2/4/2020 Zaks (UK) Limited - Neighbourhood Restaurants - - - - EU

2/3/2020 Assets of Cambridge Packing Company Cambridge Packing Company Chefs' Warehouse - - - - N.A.

2/3/2020 Fitzgerald Burguer - Benknow SL - - - - EU

1/31/2020 Marroquin Organic International - AGRANA Beteiligungs-AG - - - - Cross Border

1/31/2020 Distillerie Claeyssens de WAMBRECHIES - Saint Germain brasserie - - - - EU

1/31/2020 Produits Alimentaires Berthelet - Solina Group - - - - Cross Border

1/30/2020 NuWave Foods - Blackhawk Resource $0.6 - - - N.A.

1/30/2020 S&D Coffee Cott Corporation Westrock Coffee $405.0 - - - N.A.

1/30/2020 Mochi Ice Cream Company Century Park Capital Partners Lakeview Capital - - - - P N.A.

1/30/2020 Strega Ristorante The Varano Group Danu Partners - - - - Cross Border

1/30/2020 Atout Prim - Normandie Fruits - - - - EU

1/29/2020 Banded Peak Brewing - Labatt Brewing Company - - - - N.A.

1/28/2020 Grupo VMR - Plukon Processing Ommel - - - - EU

1/28/2020 Waldfeucht-Haaren DMK Deutsches Milchkontor Schwarz Produktion - - - - EU

1/28/2020 Niven Family Wine Estates- Wines Niven Family Wine Estates WX - - - - N.A.

1/28/2020 Wine & Spirits Distribution Southern Glazer's Wine and Spirits CC One Virgin Islands - - - - N.A.

1/28/2020 Pasticceria Bindi - BC Partners - - - - P EU

1/27/2020 G&W Distilling - Labatt Brewing Company - - - - N.A.

1/27/2020 11 locations of Lucky's Market Lucky's Market Parent Publix Super Markets - - - - Cross Border

1/27/2020 KAM Food Service - Restaurant Brands - - - - EU

1/26/2020 Assets of BL Restaurant BL Restaurant Operations BLH Acquisition $82.5 - - - N.A.

1/24/2020 RYGR BRYGGHÙS - Grans Bryggeri AS - - - - EU

1/23/2020 The London Distillery Company - British Honey Company - - - - EU

1/23/2020 Healthfood24 - AlphaPet Ventures - - - - EU

1/23/2020 Limitless Coffee - Keurig Dr Pepper - - - - N.A.

1/22/2020 LaFenice - Givex Corporation - - - - N.A.

1/22/2020 Atwater Brewing - Tenth and Blake Beer - - - - N.A.

1/21/2020 SFFI Company - Renaissance Food - - - - N.A.

1/21/2020 EARL La Ferme Du Puntoun - Feyel Artzner - - - - EU

1/20/2020 LifeBrandz USA Office Hashida Capital Square - - - - Cross Border

1/20/2020 Westbloom - JUSU BAR - - - - N.A.

1/20/2020 Potager City Rhône-Alpes PME Gestion Carrefour - - - - P EU

118

93 93107

139

167

126 119 125 131

66

111

137

167

211201

170

140

77

8

18 20

17

46

39

3534

3338

25

48

36

41

43 55

17

16

4

0

40

80

120

160

200

240

Q31

5

Q41

5

Q11

6

Q21

6

Q31

6

Q41

6

Q11

7

Q21

7

Q31

7

Q41

7

Q11

8

Q21

8

Q31

8

Q41

8

Q11

9

Q21

9

Q31

9

Q41

9

Q12

0

Nu

mb

er o

f Tr

ansa

ctio

ns

Strategic Acquirer Private Equity Acquirer

10.0x

11.0x

12.0x

13.0x

14.0x

15.0x

16.0x

17.0x

18.0x

Jan

-19

Feb

-19

Mar

-19

Ap

r-19

May

-19

Jun

-19

Jul-

19

Au

g-19

Sep

-19

Oct

-19

No

v-19

Dec

-19

Jan

-20

Med

ian

Tra

din

g M

ult

iple

Food Products, Processing, and Ingredients Retail and Restaurants

PAGE |

M&A OVERVIEW*

FOOD AND BEVERAGE



Recent Food and Beverage M&A1

9

Enterprise Enterprise Value Private Equity Geographic

Announced Target Seller Buyer Value ($M) Sales EBITDA EBIT Involvement Location

1/20/2020 Allier Volailles Maison David Et Perot - Groupe Solexia, SASU - - - - EU

1/17/2020 Ultra-Clean Label CBD Beverage Products MCTC Holdings hempSMART - - - - N.A.

1/17/2020 Guisabel - Sarl Saveurs Et Delices - - - - EU

1/17/2020 HANS IM GLÜCK Franchise - GAB Beteiligungsgesellschaft - - - - EU

1/16/2020 Frulact - Ardian - - - - P EU

1/16/2020 Van-Lang Enterprises - Gourmet Culinary Holdings - - - - N.A.

1/16/2020 Daroma caffÃ - Mandarin Investment Management S.A. - - - - P EU

1/15/2020 Thrushwood Farms Quality Meats - Western's Smokehouse - - - - N.A.

1/15/2020 Outer Galactic Chocolates - Mendo Distribution and Transportation $0.5 - - - N.A.

1/15/2020 Processing Plant of Anthony Seafoods St. Anthony Seafoods Clearwater Seafoods - - - - Cross Border

1/15/2020 Schlafly Bankside - The Saint Louis Brewery - - - - N.A.

1/15/2020 Seattle Fish Seattle Fish Fortune Fish Company - - - - N.A.

1/14/2020 LÁCTEAS FLOR DE BURGOS - CAPSA - - - - EU

1/14/2020 Dunn's River Brands Fireman Capital Partners Purity Organic - - - - P N.A.

1/14/2020 Selma's Cookies - Byrd Cookie Company - - - - N.A.

1/14/2020 Artebianca Natura & Tradizione Alto Partners SGR Panealba - - - - P EU

1/14/2020 Riunione Industrie Alimentari - Angulas Aguinaga - - - - EU

1/14/2020 Business and Brand of Le Boulanger Le Boulanger Athens Baking Company - - - - N.A.

1/13/2020 Primo Water Corporation - Cott Corporation $789.1 2.6x 16.7x 44.2x N.A.

1/12/2020 Point Lobster Company - Europa South Restaurant - - - - N.A.

1/8/2020 RBI Ventures - Tevano Payment Systems - - - - N.A.

12/31/2019 Augsburger Gebrüder - Groupe Minoteries - - - - EU

12/31/2019 RB Foods L Catterton Partners Good Bean - - - - P N.A.

12/31/2019 Hare and Hounds Middleton - Daniel Thwaites - - - - EU

9/29/2019 Plain and Fancy Foods - Hopeloft - - - - N.A.

7/31/2019 5 Restaurants Noodles & Company Noodles & Company River City Restaurant Group - - - - N.A.

1/10/2020 Bonny Doon Winery - WarRoom Ventures - - - - N.A.

1/9/2020 Florida Veg Investments - Shoreline Equity Partners - - - - P N.A.

1/8/2020 Certain Assets Of US Star 39 US Star 39 Newco Dining $1.5 - - - N.A.

1/7/2020 The Ashwood Pub - Green Brick Property - - - - EU

1/7/2020 Creminelli Fine Meats - Daniele International - - - - N.A.

1/7/2020 Bovendis - Le Delas SA - - - - EU

1/7/2020 Healthy People BV - Riedel Drinks - - - - EU

1/7/2020 Eating with the Seasons - GrubMarket - - - - N.A.

1/6/2020 2 Chevys Fresh Mex Units (St. Louis) Chevys Restaurants Xperience Restaurant - - - - N.A.

1/5/2020 The Habit Restaurants KarpReilly YUM! Brands $546.5 1.2x 15.9x 75.4x P N.A.

1/5/2020 The Airedale Heifer - Bridgehouse Brewery - - - - EU

1/3/2020 America's Food Technologies - Sunny Sky Products - - - - N.A.

1/3/2020 SA L'Epi Salvagnacois - Arterris SCA - - - - EU

1/3/2020 fairlife Select Milk Producers Coca-Cola Company - - - - N.A.

1/2/2020 Biscuit and Buttercream - Southern Grounds & Co. - - - - N.A.

12/31/2019 Pamela's Products - Quinoa Corporation - - - - N.A.

12/31/2019 Bercloux distillery - Bellevoye - - - - EU

12/31/2019 Kitchen Cooked - Utz Quality Foods - - - - N.A.

12/31/2019 Farnese Vini Srl NB Renaissance Partners Platinum Equity $202.0 2.4x - - P Cross Border

12/31/2019 D & S Distributors - The Center for an Agricultural Economy - - - - N.A.

12/30/2019 Golden Island Jerky Company Tyson Foods Link Snacks - - - - N.A.

12/30/2019 Ellicott Mills Brewing Company - Phoenix Emporium - - - - N.A.

12/27/2019 SquireSide Cafe - The Coffee Company - - - - N.A.

12/27/2019 Ancestry Pet Food - Health Extension - - - - N.A.

12/24/2019 Country Pure Foods Toyota Tsusho Corporation Blue Point Capital Partners - - - - P N.A.

12/23/2019 Klaas Puul BV H2 Equity Partners Sykes Seafoods - - - - P EU

12/23/2019 Bare Arms Brewing - Two Rivers Beer Company - - - - N.A.

12/21/2019 Portfolio of Four Village Inn Restaurants - Dow Sherwood Corporation $7.2 - - - N.A.

12/20/2019 IHOP DRA Advisors Carrols Corporation $1.2 - - - N.A.

12/20/2019 Assets of Barley Forge Brewing Company Barley Forge Brewing Company Green Cheek Beer Company $0.0 - - - N.A.

12/20/2019 Peeters Produkten Zentis GmbH & Co. KG Krüger GmbH & Co. KG - - - - EU

12/19/2019 Sauvage Viandes - Groupe Alliance - - - - EU

12/19/2019 SCHOKINAG-Schokolade-Industrie GmbH Nimbus GCB Cocoa Singapore $33.3 - - - P Cross Border

12/19/2019 Cérélia SA IK Investment Partners Ardian - - - - P EU

12/19/2019 Herta S.A.S. Nestlé Casa Tarradellas - - - - EU

12/19/2019 Flavors Holdings MacAndrews & Forbes Holdings Act II Global Acquisition $546.7 - - - P N.A.

12/19/2019 Lender Bagel Business of Conagra Brands Conagra Brands Bimbo Bakeries USA - - - - N.A.

12/19/2019 Jelly beans brand Gimbal Brothers Jelly Belly Candy Company - - - - N.A.

12/19/2019 Ten Hectares of vineyards in Monferrato - Michele Chiarlo - - - - EU

12/19/2019 Oma Bobs Snacks B.V. - Vanreusel Snacks - - - - EU

12/18/2019 Profile Food Ingredients - Mantrose-Haeuser - - - - N.A.

12/17/2019 Packington Pork - Cranswick - - - - EU

12/17/2019 Cesarini Sforza Spumanti La Vis Cavit s.c. - - - - EU

12/17/2019 Cleveland Pickle - The US Foods Group - - - - N.A.

12/17/2019 Captain Foods - House-Autry Mills - - - - N.A.

12/16/2019 Vitalkost - MedicaNatumin $2.9 - - - EU

12/15/2019 Verhey Vlees - Van Loon Group - - - - EU

12/13/2019 Zumbro River Brand - SensoryEffects Flavor $52.0 - - - N.A.

12/12/2019 JMH International - Southeastern Mills - - - - N.A.

12/12/2019 Glendalough Irish Whiskey - Mark Anthony Brands - - - - EU

12/12/2019 Alcass Spa - Italian Frozen Food Holding S.P.A. - - - - EU

PAGE |

FOOD AND BEVERAGE EARNINGS RELEASE CALENDAR

FOOD AND BEVERAGE


Earnings Release Calendar1

10

January 2020Date Company

1/29/2020 Mondelez International, Inc.

1/30/2020 The Hershey Company

1/30/2020 The Coca-Cola Company

February 2020Date Company

2/13/2020 PepsiCo, Inc.

2/19/2020 The Boston Beer Company, Inc.

2/20/2020 Hormel Foods Corporation

2/25/2020 B&G Foods, Inc.

2/26/2020 Hostess Brands, Inc.

2/26/2020 MGP Ingredients, Inc.

2/26/2020 The J. M. Smucker Company

2/27/2020 Keurig Dr Pepper Inc.

PAGE |

Price at As a % of Market Enterprise P/E

(USD in millions except per share data) Ticker 1/31/20 52-wk High Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA

Food and Beverage

Branded Processed Foods

Associated British Foods plc ABF $34.64 97.1% $27,328 $26,285 $19,703 $2,412 (3.3%) (0.1%) 23.1% 12.2% 23.6x 1.33x 10.9x 1.23x 8.1x

B&G Foods, Inc. BGS 16.06 59.0% 1,029 2,939 1,648 287 (3.6%) 7.7% 24.0% 17.4% 5.9x 1.78x 10.3x 1.76x 9.7x

Campbell Soup Company CPB 48.39 97.6% 14,597 23,207 8,088 1,457 21.5% 0.5% 33.5% 18.0% 31.6x 2.87x 15.9x 2.84x 14.0x

Conagra Brands, Inc. CAG 32.92 92.5% 16,026 26,658 10,532 2,165 28.8% 8.5% 28.2% 20.6% 19.8x 2.53x 12.3x 2.48x 12.3x

General Mills, Inc. GIS 52.22 92.6% 31,584 46,129 16,783 3,723 3.1% 1.7% 35.1% 22.2% 15.0x 2.75x 12.4x 2.66x 12.7x

The Hershey Company HSY 155.17 95.7% 32,418 36,192 7,986 2,020 2.5% 2.4% 45.4% 25.3% 28.4x 4.53x 17.9x 4.41x 17.3x

Hormel Foods Corporation HRL 47.26 98.4% 25,272 24,858 9,497 1,306 (0.5%) (0.1%) 19.8% 13.7% 26.3x 2.62x 19.0x 2.54x 18.0x

The J. M. Smucker Company SJM 103.61 80.7% 11,817 17,793 7,651 1,625 0.6% 0.6% 38.2% 21.2% 21.1x 2.33x 10.9x 2.33x 10.8x

Kellogg Company K 68.21 96.0% 23,266 31,745 13,578 2,100 0.2% 1.6% 32.6% 15.5% 32.2x 2.34x 15.1x 2.38x 13.8x

McCormick & Company, Incorporated MKC 163.37 93.6% 21,720 25,901 5,347 1,141 0.8% 6.6% 40.1% 21.3% 31.2x 4.84x 22.7x 4.70x 22.4x

Nestlé S.A. NESN 110.44 94.0% 318,889 358,861 95,604 19,305 4.5% 1.4% 50.1% 20.2% 34.1x 3.75x 18.6x 3.73x 16.7x

Post Holdings, Inc. POST 104.57 91.9% 7,395 13,851 5,727 1,136 NM 4.4% 32.2% 19.8% NM 2.42x 12.2x 2.32x 10.9x

Mean 5.0% 2.9% 33.5% 19.0% 24.5x 2.84x 14.9x 2.78x 13.9x

Median 0.8% 1.6% 33.1% 20.0% 26.3x 2.57x 13.8x 2.51x 13.2x

Private Label Foods and Beverages

Lamb Weston Holdings, Inc. LW 91.31 96.7% 13,340 15,730 3,938 879 9.2% 8.6% 26.9% 22.3% 26.5x 3.99x 17.9x 3.76x 15.3x

Seneca Foods Corporation SENE.A 39.55 94.4% 367 705 1,290 68 9.7% 0.0% 8.5% 5.2% NM 0.55x 10.4x NA NA

TreeHouse Foods, Inc. THS 44.60 65.7% 2,507 4,893 5,567 506 9.3% 1.9% 16.9% 9.1% NM 0.88x 9.7x 1.13x 9.9x

Mean 5.3% 3.5% 38.0% 9.2% 26.5x 355.83x 12.7x 2.45x 12.6x

Median 9.2% 1.9% 21.9% 7.2% 26.5x 2.44x 10.4x 2.45x 12.6x

Natural / Organic Foods / Better-For-You

The Hain Celestial Group, Inc. HAIN $24.21 91.4% $2,526 $2,919 $2,239 $168 (2.8%) (5.2%) 21.0% 7.5% NM 1.30x 17.4x 1.45x 15.0x

SunOpta Inc. SOY 2.71 56.7% 239 826 1,215 25 (1.5%) (3.8%) 9.0% 2.0% NM 0.68x 33.3x 0.67x 15.6x

The Simply Good Foods Company SMPL 22.97 73.3% 2,188 2,785 555 97 NA NA 0 17.5% NM 5.02x 28.8x 2.95x 16.3x

Mean (2.1%) (4.5%) 23.8% 9.0% NA 2.33x 26.5x 1.69x 15.6x

Median (2.1%) (4.5%) 21.0% 7.5% NA 1.30x 28.8x 1.45x 15.6x

Baked Goods

ARYZTA AG ARYN $1.01 62.1% $1,000 $1,816 $3,766 $299 (6.3%) (4.6%) 15.3% 7.9% NM 0.48x 6.1x 0.48x 5.0x

Flowers Foods, Inc. FLO 21.53 88.4% 4,554 5,849 4,124 420 4.4% 1.6% 47.7% 10.2% 24.9x 1.42x 13.9x 1.39x 13.1x

George Weston Limited WN 80.64 93.6% 12,385 30,985 37,311 3,403 0.0% 1.2% 31.7% 9.1% NM 0.83x 9.1x 0.79x 7.3x

Grupo Bimbo, S.A.B. de C.V. BMV:BIMBO A 1.79 77.3% 8,241 13,961 14,802 1,744 (2.5%) 5.7% 52.6% 11.8% 22.4x 0.94x 8.0x 0.86x 7.4x

Hostess Brands, Inc. TWNK 13.42 90.3% 1,623 2,445 906 178 8.9% (8.2%) 34.0% 19.6% 27.5x 2.70x 13.7x 2.63x 11.2x

Lancaster Colony Corporation LANC 154.65 93.4% 4,251 4,105 1,334 218 5.0% 3.9% 25.9% 16.3% 28.0x 3.08x 18.8x 2.96x 17.4x

Mean 1.6% (0.1%) 34.5% 12.5% 25.7x 1.58x 11.6x 1.52x 10.2x

Median 2.2% 1.4% 32.8% 11.0% 26.2x 1.18x 11.4x 1.13x 9.3x

LTM EV / LTM EV /2020ERevenue Growth LTM Margins

PUBLIC COMPARABLES4

FOOD AND BEVERAGE


11

PAGE |

PUBLIC COMPARABLES4

12

FOOD AND BEVERAGE




Dairy

Danone S.A. BN $80.27 87.9% $52,040 $68,362 $28,221 $5,363 (3.7%) 4.8% 48.4% 19.0% 21.7x 2.42x 12.7x 2.37x 11.9x

Emmi AG EMMN 970.67 96.1% 5,193 5,406 3,531 351 2.0% 2.0% 36.4% 9.9% 28.2x 1.53x 15.4x 1.41x 13.8x

Glanbia plc GL9 11.67 54.3% 3,446 4,334 3,035 343 (2.9%) 4.0% 27.4% 11.3% 14.2x 1.43x 12.6x 1.00x 11.4x

Lifeway Foods, Inc. LWAY 2.25 47.4% 35 35 94 2 (12.2%) (8.8%) 27.0% 1.7% NM 0.37x 21.8x NA NA

Saputo Inc. TSX:SAP 30.75 87.6% 12,543 15,618 11,150 1,059 16.9% 10.2% 10.0% 9.5% 21.0x 1.40x 14.8x 1.35x 12.2x

Mean 2.6% 5.1% 30.6% 11.5% 18.6x 1.41x 14.1x 1.45x 10.9x

Median (0.4%) 4.4% 31.0% 10.6% 21.0x 1.41x 13.8x 1.35x 11.9x

Non-Alcoholic Beverages

A.G. BARR p.l.c. BAG $7.98 61.7% $888 $892 $328 $63 (7.9%) (0.9%) 43.3% 19.1% 21.4x 2.72x 14.2x 2.54x 13.7x

The Coca-Cola Company KO 58.40 98.9% 249,952 283,657 37,266 11,909 17.0% (3.8%) 60.8% 32.0% 28.2x 7.61x 23.8x 7.27x 22.6x

Cott Corporation TSX:BCB 15.31 96.2% 2,064 3,469 2,394 291 2.1% 9.9% 50.7% 12.1% NM 1.45x 11.9x 1.43x 10.0x

Lassonde Industries Inc. LAS.A 106.28 68.2% 737 1,036 1,265 121 4.2% 2.9% 26.6% 9.6% 16.5x 0.82x 8.6x 0.73x 7.5x

Monster Beverage Corporation MNST 66.60 97.9% 35,810 34,528 4,108 1,466 11.2% 11.8% 59.9% 35.7% 33.5x 8.41x 23.6x 7.54x 21.2x

National Beverage Corp. FIZZ 42.91 50.6% 1,998 1,814 976 168 (4.8%) 8.6% 36.3% 17.2% 17.1x 1.86x 10.8x 1.87x 10.9x

PepsiCo, Inc. PEP 142.02 98.2% 198,038 226,399 66,045 12,787 2.1% 2.2% 55.2% 19.4% 16.2x 3.43x 17.7x 3.25x 16.2x

Mean 2.4% 2.9% 44.0% 20.3% 22.1x 3.50x 15.1x 3.52x 14.6x

Median 2.1% 2.5% 47.0% 18.2% 19.2x 2.29x 13.1x 2.54x 13.7x

Alcoholic Beverages

Anheuser-Busch InBev SA/NV ABI $75.85 73.8% $148,626 $260,999 $54,364 $21,383 (1.1%) 8.9% 62.1% 39.3% 15.7x 4.80x 12.2x 4.79x 11.6x

Carlsberg A/S CARL 146.56 92.9% 21,508 24,960 9,897 2,129 3.2% 3.6% 49.5% 21.5% NM 2.52x 11.7x 2.45x 10.8x

Constellation Brands, Inc. STZ 188.30 87.8% 35,923 49,094 8,238 3,017 1.9% 4.4% 51.4% 36.6% 43.7x 5.96x 16.3x 6.12x 16.2x

Diageo plc DGE 39.71 82.8% 92,763 112,252 17,428 5,949 9.0% 7.7% 61.5% 34.1% 23.6x 6.44x 18.9x 6.44x 17.8x

Heineken N.V. HEIA 109.00 94.5% 62,151 81,674 26,307 5,753 2.2% 4.6% 39.8% 21.9% 29.7x 3.10x 14.2x 2.95x 12.6x

Kirin Holdings Company, Limited 2503 22.26 88.4% 19,339 25,121 18,018 1,510 11.9% (4.7%) 43.6% 8.4% 34.4x 1.39x 1.41x 1.41x 10.6x

Pernod Ricard SA RI 173.50 87.2% 45,775 53,545 10,448 3,188 2.7% 2.7% 61.5% 30.5% 28.6x 5.12x 16.8x 4.84x 15.2x

Sapporo Holdings Limited 2501 24.59 94.7% 1,916 4,228 4,843 332 3.4% (3.0%) 30.4% 6.9% 24.9x 0.87x 12.7x 0.89x 10.7x

Mean 4.2% 3.0% 50.0% 24.9% 28.6x 3.78x 13.0x 3.74x 13.2x

Median 3.0% 4.0% 50.5% 26.2% 28.6x 3.95x 13.5x 3.87x 12.1x

Snacks

J & J Snack Foods Corp. JJSF $165.84 84.3% $3,138 $2,975 $1,198 $166 4.6% 6.4% 29.3% 13.9% 33.5x 2.48x 17.9x 2.41x 17.0x

John B. Sanfil ippo & Son, Inc. JBSS 84.30 78.2% 963 1,005 883 90 1.2% (1.3%) 19.8% 10.2% 18.7x 1.14x 11.2x 1.09x NA

Mondelez International, Inc. MDLZ 57.38 96.6% 82,617 100,231 25,868 5,301 (0.3%) (0.1%) 40.0% 20.5% 21.7x 3.87x 18.9x 3.78x 18.2x

PepsiCo, Inc. PEP 142.02 98.2% 198,038 226,399 66,045 12,787 2.1% 2.2% 55.2% 19.4% 16.2x 3.43x 17.7x 3.25x 16.2x

Mean 1.9% 1.8% 36.1% 16.0% 22.5x 2.73x 16.4x 2.63x 17.1x

Median 1.7% 1.1% 34.6% 16.6% 20.2x 2.96x 17.8x 2.83x 17.0x

EV / 2019ELTM EV / LTMRevenue Growth LTM Margins

PAGE |

PUBLIC COMPARABLES4

13

FOOD AND BEVERAGE




Inputs

Protein Processing

Cal-Maine Foods, Inc. CALM $35.69 75.9% $1,738 $1,607 $1,217 ($12) (22.7%) (0.8%) 8.7% NM NM 1.32x NM 1.19x 8.9x

JBS S.A. JBSS3 6.44 80.5% 17,168 30,313 46,731 3,953 5.6% (4.8%) 15.0% 8.5% 17.3x 0.65x 7.7x 0.60x 5.8x

Sanderson Farms, Inc. SAFM 137.69 76.7% 3,061 3,020 3,440 203 6.3% 6.9% 8.1% 5.9% 57.2x 0.88x 14.8x 0.77x 5.9x

Seaboard Corporation SEB 3,855.61 81.3% 4,491 4,476 6,690 188 2.8% 8.0% 5.6% 2.8% NM 0.67x 23.8x NA NA

Tyson Foods, Inc. TSN 82.63 87.7% 30,191 41,782 43,027 4,094 7.5% 5.2% 12.1% 9.5% 15.0x 0.97x 10.2x 0.91x 8.6x

Mean (0.1%) 2.9% 9.9% 6.7% 29.8x 0.90x 14.1x 0.87x 7.3x

Median 5.6% 5.2% 8.7% 7.2% 17.3x 0.88x 12.5x 0.84x 7.3x

Fruit and Vegetable

Calavo Growers, Inc. CVGW $76.61 76.2% $1,348 $1,348 $1,196 $83 9.8% 8.5% 10.7% 6.9% 36.8x 1.13x 16.3x 1.02x 14.0x

Fresh Del Monte Produce Inc. FDP 31.38 80.9% 1,509 2,338 4,510 211 2.5% 3.8% 6.8% 4.7% 26.2x 0.52x 11.1x 0.47x 9.1x

Seneca Foods Corporation SENE.A 39.55 94.4% 367 705 1,290 68 9.7% 0.0% 8.5% 5.2% NM 0.55x 10.4x NA NA

Total Produce plc T7O 1.48 69.5% 576 1,143 4,214 109 (2.6%) 7.7% 13.7% 2.6% 10.0x 0.27x 10.5x 0.28x 11.2x

Mean 4.9% 5.0% 9.9% 4.9% 24.3x 0.62x 12.1x 0.59x 11.4x

Median 6.1% 5.8% 9.6% 5.0% 26.2x 0.53x 10.8x 0.47x 11.2x

Ingredients / Flavors

Givaudan SA GIVN $3,301.32 97.1% $30,432 $34,246 $6,405 $1,240 14.0% 11.7% 40.8% 19.4% 42.1x 5.35x 27.6x 4.89x 22.8x

Ingredion Incorporated INGR 88.00 88.5% 5,875 7,671 5,737 921 (2.0%) 0.2% 22.8% 16.1% 15.0x 1.34x 8.3x 1.31x 8.0x

International Flavors & Fragrances Inc. IFF 131.11 85.7% 13,999 18,328 5,075 1,104 40.5% 18.3% 41.6% 21.8% 38.6x 3.61x 16.6x 3.45x 15.5x

Kerry Group plc KRZ 127.83 97.3% 22,563 24,962 7,910 1,106 5.1% 5.2% 47.4% 14.0% 36.8x 3.16x 22.6x 2.98x 19.4x

Sensient Technologies Corporation SXT 59.75 79.4% 2,529 3,151 1,329 237 (4.5%) (1.5%) 32.8% 17.8% 19.2x 2.37x 13.3x 2.39x 12.9x

Symrise AG SY1 103.04 98.3% 13,954 15,338 3,722 744 4.4% 7.0% 39.8% 20.0% 44.8x 4.12x 20.6x 3.70x 17.4x

Tate & Lyle plc TATE 10.46 97.9% 4,872 5,404 3,503 597 (1.8%) 1.1% 46.7% 17.0% 16.2x 1.54x 9.1x 1.45x 8.3x

Mean 8.0% 6.0% 38.8% 18.0% 30.4x 3.07x 16.9x 2.88x 14.9x

Median 4.4% 5.2% 40.8% 17.8% 36.8x 3.16x 16.6x 2.98x 15.5x

Agribusiness

The Andersons, Inc. ANDE $22.62 59.2% $732 $2,023 $7,097 $212 119.3% 21.1% 6.7% 3.0% 20.3x 0.29x 9.5x 0.23x 7.3x

Archer-Daniels-Midland Company ADM 44.76 94.8% 24,917 33,021 64,656 2,662 0.5% 1.2% 6.4% 4.1% 18.3x 0.51x 12.4x 0.49x 9.4x

Bunge Limited BG 52.43 87.9% 7,427 14,461 41,900 (159) (8.5%) (0.1%) 1.2% NM NM 0.35x NM 0.34x 9.8x

CF Industries Holdings, Inc. CF 40.28 73.0% 8,758 15,411 4,673 1,837 6.3% 5.9% 25.4% 39.3% 18.6x 3.30x 8.4x 3.29x 9.0x

Darling Ingredients Inc. DAR 27.13 91.7% 4,441 6,177 3,358 411 (3.7%) 0.4% 22.1% 12.2% 41.8x 1.84x 15.0x 1.74x 12.8x

The Mosaic Company MOS 19.84 58.5% 7,515 11,964 9,351 1,750 2.1% 7.8% 13.7% 18.7% NM 1.28x 6.8x 1.35x 7.4x

Mean 19.3% 6.1% 12.6% 15.5% 24.8x 1.26x 10.4x 1.24x 9.3x

Median 1.3% 3.6% 10.2% 12.2% 19.5x 0.90x 9.5x 0.92x 9.2x

Consumer and Retail

Grocery Distribution

AMCON Distributing Company DIT $77.98 78.0% $44 $102 $1,037 $11 5.9% 4.7% 8.1% 1.1% 19.2x 0.10x 9.2x NA NA

Core-Mark Holding Company, Inc. CORE 23.44 57.2% 1,068 1,848 13,225 149 2.9% 7.2% 6.9% 1.1% 20.0x 0.14x 12.4x 0.11x 9.7x

Performance Food Group Company PFGC 51.79 97.8% 5,463 8,240 22,900 473 26.5% 11.8% 11.9% 2.1% 31.2x 0.36x 17.4x 0.27x 11.1x

SpartanNash Company SPTN 12.18 54.2% 443 1,428 8,435 148 4.7% 3.2% 14.3% 1.8% NM 0.17x 9.6x 0.16x 7.3x

United Natural Foods, Inc. UNFI 7.20 46.1% 385 4,656 24,538 455 130.7% 41.4% 12.8% 1.9% NM 0.19x 10.2x 0.19x 8.5x

Mean 34.1% 13.7% 10.8% 1.6% 23.5x 0.19x 11.8x 0.18x 9.1x

Median 5.9% 7.2% 11.9% 1.8% 20.0x 0.17x 10.2x 0.18x 9.1x

EV / 2019ELTM Revenue Growth EV / LTMLTM Margins

PAGE |



Food Retail

Costco Wholesale Corporation COST $305.52 97.2% $134,966 $135,127 $154,674 $6,379 6.8% 9.0% 13.0% 4.1% 36.2x 0.87x 21.2x 0.81x 19.1x

Ingles Markets, Incorporated IMKT.A 41.69 84.8% 845 1,655 4,219 257 1.9% 3.3% 24.2% 6.1% 10.4x 0.39x 6.4x 0.38x 6.1x

J Sainsbury plc SBRY 2.67 68.3% 5,889 14,043 36,198 1,269 (4.4%) 5.6% 6.8% 3.5% NM 0.39x 11.1x 0.37x 4.9x

The Kroger Co. KR 26.86 89.6% 21,504 41,538 120,989 5,138 (2.9%) 2.0% 22.5% 4.2% 13.7x 0.34x 8.1x 0.33x 7.4x

Natural Grocers by Vitamin Cottage, Inc. NGVC 9.05 57.7% 204 256 912 45 5.1% 8.1% 26.3% 5.0% 21.6x 0.28x 5.6x NA NA

Koninklijke Ahold Delhaize N.V. AD 24.61 90.6% 26,699 39,995 71,343 4,549 NM NM 27.2% 6.4% 14.3x 0.56x 8.8x 0.53x 6.5x

Sprouts Farmers Market, Inc. SFM 15.63 62.1% 1,847 3,494 5,539 334 9.0% 11.5% 33.5% 6.0% 14.7x 0.63x 10.5x 0.58x 10.7x

Tesco PLC LSE:TSCO 3.26 94.8% 31,708 50,002 78,645 4,380 0.5% 3.2% 5.8% 5.6% 18.4x 0.64x 11.4x 0.58x 7.4x

Village Super Market, Inc. VLGE.A 22.26 69.1% 320 382 1,649 57 1.2% 0.3% 27.8% 3.4% 14.7x 0.23x 6.7x NA NA

Weis Markets, Inc. WMK 36.69 68.8% 987 1,053 3,534 172 1.0% 6.3% 26.5% 4.9% 15.8x 0.30x 6.1x NA NA

Mean 2.0% 5.5% 21.4% 4.9% 17.8x 0.46x 9.6x 0.51x 8.9x

Median 1.2% 5.6% 25.3% 4.9% 14.7x 0.39x 8.4x 0.53x 7.4x

Foodservice

The Chefs' Warehouse, Inc. CHEF $36.40 86.5% $1,104 $1,507 $1,559 $76 10.8% 10.9% 25.7% 4.9% 48.7x 0.97x 19.8x 0.87x 14.9x

Colabor Group Inc. TSX:GCL 0.40 49.1% 41 101 903 16 2.2% (3.8%) 1.8% 1.7% NM 0.11x 6.4x 0.15x 5.6x

Sysco Corporation SYY 82.14 95.5% 41,910 50,825 60,461 3,421 1.4% 4.4% 19.0% 5.7% 25.2x 0.84x 14.9x 0.81x 13.3x

US Foods Holding Corp. USFD 40.17 93.2% 8,814 14,040 25,939 1,122 7.3% 4.2% 17.7% 4.3% 22.4x 0.54x 12.5x 0.48x 10.3x

Mean 4.8% 3.9% 15.5% 4.1% 36.9x 0.64x 13.7x 0.61x 11.3x

Median 2.2% 4.4% 19.0% 4.9% 36.9x 0.84x 14.9x 0.81x 13.3x

Quick Service Restaurant

Jack in the Box Inc. JACK $81.75 87.8% 1,887 3,037 950 264 9.2% (6.5%) 36.3% 27.8% 23.2x 3.20x 11.5x 3.10x 11.1x

McDonald's Corporation MCD 213.97 96.4% 161,139 207,117 21,077 10,496 0.2% (5.1%) 52.7% 49.8% 27.2x 9.83x 19.7x 9.43x 18.5x

Restaurant Brands International Inc. QSR 61.01 76.8% 18,188 32,184 5,603 2,212 4.6% 10.6% 58.0% 39.5% 24.8x 5.74x 14.5x 5.48x 13.1x

The Wendy's Company WEN 21.67 94.9% 4,985 8,276 1,345 402 7.0% (5.4%) 46.0% 29.9% 39.4x 6.15x 20.6x 4.55x 19.0x

YUM! Brands, Inc. YUM 105.77 88.3% 31,991 42,676 5,597 2,009 (1.6%) NM 50.3% 35.9% 29.2x 7.62x 21.2x 7.38x 19.6x

Mean 3.9% (1.6%) 48.7% 36.6% 28.8x 6.51x 17.5x 5.99x 16.2x

Median 4.6% (5.2%) 50.3% 35.9% 27.2x 6.15x 19.7x 5.48x 18.5x

Fast Casual

Chipotle Mexican Grill, Inc. CMG $866.76 97.5% $24,092 $26,086 $5,586 $692 14.8% 12.7% 34.1% 12.4% NM 4.67x 37.7x 4.19x 28.6x

El Pollo Loco Holdings, Inc. LOCO 13.78 82.5% 481 786 441 59 3.8% 5.7% 21.9% 13.5% NM 1.78x 13.2x 1.74x 12.7x

Fiesta Restaurant Group, Inc. FRGI 9.93 58.9% 269 615 669 55 (2.1%) (2.4%) 21.0% 8.3% NM 0.92x 11.1x 0.92x 9.6x

The Habit Restaurants, Inc. HABT 13.91 98.2% 289 464 446 34 16.1% 18.1% 17.5% 7.7% NM 1.04x 13.5x 0.93x 10.9x

Noodles & Company NDLS 7.14 79.0% 315 608 462 30 0.9% (1.0%) 16.6% 6.5% NM 1.32x 20.3x 1.26x 15.1x

Potbelly Corporation PBPB 4.31 45.8% 102 323 410 21 (5.1%) 0.9% 27.7% 5.2% NM 0.79x 15.2x 0.80x 14.5x

Shake Shack Inc. SHAK 67.45 63.7% 2,277 2,571 567 71 31.6% 32.1% 37.0% 12.5% NM 4.53x 36.4x 3.48x 28.8x

Wingstop Inc. WING 92.77 86.4% 2,732 3,049 187 49 26.5% 29.0% 53.9% 26.1% NM 16.31x NM 13.41x NM

Mean 10.8% 11.9% 28.7% 11.5% NA 3.92x 21.1x 3.34x 17.2x

Median 9.3% 9.2% 24.8% 10.3% NA 1.55x 15.2x 1.50x 14.5x

LTM Revenue Growth LTM Margins EV / LTM EV / 2019E

PUBLIC COMPARABLES4

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PUBLIC COMPARABLES4

15

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Differentiated Casual

BJ's Restaurants, Inc. BJRI $39.78 73.6% $762 $1,361 $1,151 $123 4.9% 6.2% 16.3% 10.7% 20.4x 1.18x 11.1x 1.10x 11.0x

The Cheesecake Factory Incorporated CAKE 38.40 75.1% 1,714 2,792 2,374 221 17.3% 36.0% 41.2% 9.3% 18.3x 1.18x 12.6x 0.95x 11.1x

Chuy's Holdings, Inc. CHUY 24.55 83.4% 408 623 421 37 6.0% 9.3% 16.3% 8.8% 37.7x 1.48x 16.8x 1.37x 14.7x

Dave & Buster's Entertainment, Inc. PLAY 44.16 74.1% 1,350 3,214 1,339 278 8.1% 11.4% 28.1% 20.8% 15.2x 2.40x 11.5x 2.21x 11.2x

Mean 9.1% 15.7% 25.5% 12.4% 22.9x 1.56x 13.0x 1.41x 12.0x

Median 7.1% 10.3% 22.2% 10.0% 19.3x 1.33x 12.1x 1.24x 11.2x

Casual Dining Restaurant

Bloomin' Brands, Inc. BLMN $20.77 85.5% $1,780 $4,329 $4,130 $390 (1.4%) (1.3%) 16.3% 9.4% 16.6x 1.05x 11.1x 1.02x 10.5x

Brinker International, Inc. EAT 42.69 89.7% 1,597 4,178 3,329 377 4.9% 0.9% 15.9% 11.3% 11.7x 1.26x 11.1x 1.16x 10.3x

Darden Restaurants, Inc. DRI 116.43 90.7% 14,147 19,704 8,666 1,195 4.4% 7.4% 21.7% 13.8% 23.0x 2.27x 16.5x 2.14x 15.0x

Dine Brands Global, Inc. DIN 85.25 82.0% 1,432 3,188 897 248 20.6% 11.3% 43.0% 27.6% 14.9x 3.55x 12.9x 3.54x 11.8x

Red Robin Gourmet Burgers, Inc. RRGB 32.87 89.2% 425 1,119 1,319 100 (4.1%) 0.7% 19.6% 7.6% NM 0.85x 11.2x 0.87x 11.0x

Texas Roadhouse, Inc. TXRH 62.50 93.7% 4,338 4,805 2,637 304 10.0% 10.4% 18.4% 11.5% 27.5x 1.82x 15.8x 1.63x 14.2x

Mean 5.7% 4.9% 22.5% 13.5% 18.7x 1.80x 13.1x 1.73x 12.1x

Median 4.7% 4.2% 19.0% 11.4% 16.6x 1.54x 12.0x 1.39x 11.4x

Fine Dining

Ruth's Hospitality Group, Inc. RUTH $20.50 75.5% 587 892 460 75 2.4% 6.3% 27.5% 16.3% 14.3x 1.94x 11.9x 1.77x 11.6x

Mean 2.4% 6.3% 27.5% 16.3% 14.3x 1.94x 11.9x 1.77x 11.6x

Median 2.4% 6.3% 27.5% 16.3% 14.3x 1.94x 11.9x 1.77x 11.6x

Pizza

Domino's Pizza, Inc. DPZ $281.75 93.3% $11,524 $15,134 $3,551 $646 9.5% 14.0% 27.9% 18.2% 31.0x 4.26x 23.4x 3.90x 20.1x

Papa John's International, Inc. PZZA 64.78 96.5% 2,069 2,592 1,510 117 (12.9%) (3.7%) 23.6% 7.7% NM 1.72x 22.2x 1.58x 17.7x

Mean (1.7%) 5.2% 25.7% 13.0% 31.0x 2.99x 22.8x 2.74x 18.9x

Median (1.7%) 5.2% 25.7% 13.0% 31.0x 2.99x 22.8x 2.74x 18.9x

Beverage / Snack Retail

DAVIDsTEA Inc. DTEA $1.44 62.6% $38 $85 $157 $1 (5.0%) 0.7% 52.9% 0.5% NM 0.54x NM NA NA

Dunkin' Brands Group, Inc. DNKN 78.09 92.2% 6,469 9,416 1,370 471 3.7% 3.2% 51.7% 34.4% 27.5x 6.87x 20.0x 6.64x 18.6x

Starbucks Corporation SBUX 84.83 85.1% 99,565 117,087 26,973 5,545 6.7% 7.6% 28.4% 20.6% 27.8x 4.34x 21.1x 4.09x 18.6x

Mean 1.8% 3.8% 44.3% 18.5% 27.6x 3.92x 20.6x 5.37x 18.6x

Median 3.7% 3.2% 51.7% 20.6% 27.6x 4.34x 20.6x 5.37x 18.6x

Family Restaurant

Cracker Barrel Old Country Store, Inc. CBRL $152.93 84.5% $3,680 $4,650 $3,087 $397 1.1% 1.9% 34.8% 12.9% 16.8x 1.51x 11.7x 1.45x 11.5x

Denny's Corporation DENN 20.47 85.7% 1,209 1,644 587 95 (3.1%) 5.4% 36.2% 16.2% 11.7x 2.80x 17.3x 3.88x 16.1x

Luby's, Inc. LUB 2.42 96.8% 73 115 316 (1) (11.0%) (7.3%) 26.4% NM NM 0.36x NM NA NA

Mean (4.3%) (0.0%) 32.5% 14.5% 14.2x 1.56x 14.5x 2.66x 13.8x

Median (3.1%) 1.9% 34.8% 14.5% 14.2x 1.51x 14.5x 2.66x 13.8x

LTM Revenue Growth LTM Margins EV / LTM EV / 2019E

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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FOOD AND BEVERAGE


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HARRIS WILLIAMS

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FOOD AND BEVERAGE


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D I S C L O S U R E S

S O U R C E S

1. Capital IQ

2. Unweighted Average

3. US Census Bureau

4. U.S. Bureau of Labor Statistics

5. Thomson Financial

6. S&P

7. Reuters

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