Consumer Products and Retail Quarterly Update

Consumer Products and Retail Quarterly update

Q3 2018

Deloitte Corporate Finance LLC | www.investmentbanking.deloitte.com Quarterly update | Q3 2018 | Consumer Products and Retail

Consumer Products and Retail trends In this update

1,2,3 4,5 The Future is sparkling Smart(phone) shoppers • Consumer trends As fewer consumers are drinking soda, Online shopping via mobile devices is • Economic outlook filling the void (and then some) is expected to grow 16 percent, up sparkling water. Americans will drink from 12 percent in 2017. The trend is • Industry analysis approximately 821 million gallons of largely driven by users spending sparkling water in 2018, about three increased time on mobile devices, • Select M&A transactions times American consumption in 2008. forcing retailers to pivot their efforts • Appendix With sales of traditional sparkling water to reach consumers by way of mobile totaling $2.7 billion this year, alcoholic media. The trend has also led many sparkling water also continues to gain social media apps to build out their This update will focus on traction with 2018 annual sales totaling mobile commerce capabilities this news and trends in the $295 million, up from $11 million in year in advance of what is expected 2016. The increase in sales has spurred to be a strong Christmas season for following areas: an increase in M&A activity, with one retailers. This trend is especially true for Generation Z, with half of the notable transaction in 2018 being • Food & Beverages Hiball, a growing caffeinated sparkling demographic planning to complete water, recently being acquired by 100 percent of their shopping online • Products & Durables with a smartphone. Anheuser-Busch. • Restaurant & Food Luxury remains Vogue6,7 Meat alternatives that bleed8,9 Services The luxury fashion and accessories Continued customer interest in • Specialty Retail sector has experienced 42 percent alternative proteins, driven by growth since 2017, making luxury health-, environmental-, and apparel one of the top performing socially-conscious individuals has sectors in the consumer space. driven growth in the sector as Companies in the sector have demand for in-home consumption of continued to show meat alternatives has grown 24 an ability to respond to cultural percent since 2015. New meat Who we are trends, retaining an authentic and alternatives have increased in original feel that has allowed them popularity as newer technology has to grow while still demanding a made it possible to create Deloitte Corporate Finance premium for their name brand alternatives to burgers, chicken LLC is a leading global strips, and steaks consisting of lab- products. Going forward, the future middle market M&A success of these companies will grown meat and high-tech vegetable likely depend on the effectiveness of mashes with new “bloody” versions, advisor. The firm’s their outreach and early marketing including beet juice, in attempts to professionals have to younger generations. appeal to carnivores. extensive knowledge of and transaction experience In the news in the Consumer Products August 16, 2018 10 – Boardroom Salon LLC (d/b/a Boardroom Salon for and Retail space. Men) announced the closing of an investment by affiliates of Lightbay Capital (Lightbay) for an undisclosed amount. Under the terms of the transaction, LightBay will own a majority stake in the company, with Co-Founders Bruce and Heather Schultz retaining significant ownership. As a result of the investment, Boardroom expects to accelerate its growth plans by significantly expanding the number of salons and markets in Contacts which it operates. Deloitte Corporate Finance LLC served as the sole financial advisor to Boardroom Salon LLC. Lorin DeMordaunt July 30, 201811,12 – On July 30, 2018, US Foods Inc. (NYSE: USFD) Managing Director (US Foods) announced the acquisition of Services Group of America’s Food [email protected] Group of Companies (SGA’s Food Group of Companies) for +1 (704) 333-0591 $1.8 billion in an all cash deal representing a 2018(E) EBITDA multiple of 14.6x, or 8.6x when adjusted for tax step-up and run-rate synergies. US Foods management expects to benefit from roughly $260 million in Matt Preece estimated present value of cash tax benefits and approximately $55 Managing Director million in annual run-rate cost synergies by the end of fiscal 2022. The [email protected] acquisition will significantly increase US Foods’ reach across key markets +1 (704) 731-7186 in the attractive growing Northwest region of the U.S. and adds one of the most well-regarded regional distributors to the company. Footnotes: (i) Over the year ended June 30. (ii) Over the year ended July 14.

www.investmentbanking.deloitte.com | Page 2 Quarterly update | Q3 2018 | Consumer Products and Retail

MacroeconomicMacroeconomic andand ConsumerConsumer ProductsProducts andand RetailRetail Sectorsector Outlookoutlook

US gross domestic product1 US Treasury yield curve2 $20.0 5.0% 3.5% (nominal vs. real)

3.0% 4.0% $15.0 2.5% 3.0% 2.0% $10.0 r ate c hange 2.0% 1.5% t rillions in Interest

$ 1.0%

$5.0 p ercent 1.0%

YoY 0.5%

$0.0 0.0% 0.0%

GDP ($ in trillions) YoY % growth (adj. for inflation) Real yield (%) Nominal yield (%)

US unemployment rate3 ISM non-manufacturing index and consumer confidence index4 10.0% 600 64.0 135.0

550 62.0 125.0

500 60.0 115.0 8.0% 450 58.0 105.0

400 56.0 95.0 housands) u nemployed ( t c onfidence 350 54.0 85.0 % 6.0% 300 c laims 52.0 75.0 n on- m anufacturing

250 50.0 65.0 Consumer ISM Jobless 4.0% 200 48.0 55.0

ISM non-manufacturing Initial jobless claims Unemployment rate (%)

US per capita disposable income5 Monthly total US retail sales6

$46.0 $420.0 $44.0 $410.0 $44.0 $400.0 $42.0 $390.0 $40.0 $380.0 $40.0 $370.0 b illions $ in thousands$ in

$38.0 in $360.0 $ $36.0 $350.0 $340.0 $34.0 $330.0 $32.0 $320.0

www.investmentbanking.deloitte.com | Page 3 Quarterly update | Q3 2018 | Consumer Products and Retail

Consumer Products and Retail sector breakdown and trading statistics1

Last twelve months NTM Median Median LTM Median Median Number of % of 52 EV/ EV/ EV/ Sector revenue EBITDA EBITDA enterprise companies Week high Revenue EBITDA EBITDA CAGR (3 Yr) ($M) margin value ($M)

Beauty & cosmetics 12 84.2 % 2.6 % $830.6 15.0 % $9,965.2 1.7 x 11.9 x 11.5 x

Food & beverage 10 87.7 (1.1) 2,526.9 19.2 20,272.0 2.4 12.9 11.9

Home & garden 10 75.6 4.0 734.8 15.8 8,274.4 2.0 11.3 11.7

Restaurant & food services 18 86.3 3.1 379.7 12.8 3,630.6 1.5 13.0 11.7

Apparel & specialty retail 11 78.6 4.8 361.8 13.3 4,945.9 1.4 9.8 9.2

Consumer products index 61 85.3 % 2.7 % $518.5 14.6 % $5,360.6 1.7 x 11.3 x 11.1 x

Public comparables three-year stock market performance2

S&P 500 index 52.26% NASDAQ Composite index 73.56% Consumer index* 21.34%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

(10.0%)

S&P 500 index NASDAQ Composite index Consumer index

*Consumer index companies listed on pages 6 and 7 in the Appendix.

www.investmentbanking.deloitte.com | Page 4 Quarterly update | Q3 2018 | Consumer Products and Retail

Select recent Consumer Products and Retail M&A transactions1

Enterprise EV/ Announce date Target/acquiror Target business description value EBITDA ("EV")

Core Nutrition Sep-18 Core Nutrition, LLC produces organic beverages and bottled water. $477.7 N/A Keurig Dr Pepper Inc.

Sonic Corp. Sonic Corp. operates and franchises a chain of quick-service drive- Sep-18 2,270.0 15.6 ARG Holding Corporation in restaurants in the United States.

Thom Browne, Inc. Aug-18 Thom Browne, Inc. desgins and markets apparel for men. 500.0 N/A Ermenegildo Zegna Holditalia S.p.A.

Zoe's Kitchen Zoe's Kitchen, Inc., through its subsidiaries, develops and operates Aug-18 298.3 16.6 Cava Group, Inc. a chain of fast-casual restaurants.

The Boardroom Salon, LLC The Boardroom Salon Company, LLC provides hair services for men, Aug-18 N/A N/A LightBay Capital including cutting, styling, shaving, and spa services.

MVMT Watches Inc. MVMT Watches Inc. manufactures and sells watches, sunglasses, Aug-18 200.0 N/A Movado Group, Inc. and accessories.

Pizza Crust Business of Tyson Foods, Inc. produces partially-baked Pizza Crust Business of Tyson Foods, Inc. Aug-18 and self-rising pizza crusts for frozen pizza manufacturers and N/A N/A Peak Rock Capital foodservice customer.

Jamba, Inc. Jamba, Inc., through its subsidiary, Jamba Juice Company, owns, Aug-18 204.7 56.8 FOCUS Brands Inc. operates, and franchises Jamba Juice stores.

Food Group of Companies of Services Group of America represents Food Group of Companies of Services Group of the combined operations of Amerifresh, Inc., Ameristar Meats, Inc., Jul-18 America 1,800.0 N/A Food Services of America, Inc., GAMPAC Express, Inc., and Systems US Foods, Inc. Services of America, Inc.

SUPERVALU INC., together with its subsidiaries, operates as a SUPERVALU Inc. Jul-18 grocery wholesaler and retailer in the United States and 2,907.1 6.8 United Natural Foods, Inc. internationally.

Rise Baking Company Rise Baking Company produces and retails bakery products, Jul-18 N/A N/A Olympus Partners including breads, cookies, and bars.

U.S. Baking Business of The J.M. Smucker U.S. Baking Business Of The J. M. Smucker Company comprises Jul-18 Company baking products producing businesses, including Pillsbury , Hungry 375.0 N/A Brynwood Partners Jack , White Lily , Jim Dandy , and Martha White brands .

Annual Consumer Products and Retail M&A transaction volume2

3,500 3,213 3,199 3,041 2,874 3,000 2,772 2,603 2,479 2,500 2,369 1,983 d eals 2,000 1,805

1,500 1,367

Number of Number 1,000

500

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 2018 YTD YTD

Undisclosed <$100M $100-$250M $250M-$500M $500M-$1,000M >$1,000M

www.investmentbanking.deloitte.com | Page 5 Quarterly update | Q3 2018 | Consumer Products and Retail

Appendix

Consumer Products and Retail trading multiples1

Historical Last twelve months NTM % of 52 Revenue LTM EBITDA Enterprise EV/ EV/ EV/ Company (ticker) Week high LTM revenue CAGR (3 Yr) EBITDA margin value ("EV") Revenue EBITDA EBITDA ($ in millions) Beauty & cosmetics (12) Avon Products, Inc. (NYSE:AVP) 61.5 % $5,732.0 (3.6) % $453.9 7.9 % $2,012.3 0.4 x 4.4 x 4.9 x Coty Inc. (NYSE:COTY) 51.7 9,398.0 28.8 1,384.0 14.7 15,605.5 1.7 11.3 10.4 L'Occitane International S.A. (SEHK:973) 82.9 1,625.4 3.9 244.4 15.0 2,317.2 1.4 9.5 8.9 L'Oréal S.A. (ENXTPA:OR) 85.6 30,337.8 2.5 6,733.9 22.2 118,897.6 3.9 17.7 16.6 Nu Skin Enterprises, Inc. (NYSE:NUS) 77.8 2,550.3 2.7 381.9 15.0 3,886.6 1.5 10.2 9.2 Oriflame Holding AG (OM:ORI) 50.7 1,534.6 2.1 220.3 14.4 1,476.2 1.0 6.7 6.1 Revlon, Inc. (NYSE:REV) 93.5 2,620.6 11.4 105.2 4.0 4,324.9 1.7 41.1 15.3 Sally Beauty Holdings, Inc. (NYSE:SBH) 97.1 3,940.8 1.1 575.5 14.6 3,992.4 1.0 6.9 7.3 The Estée Lauder Companies Inc. (NYSE:EL) 79.9 13,683.0 8.3 2,789.0 20.4 47,304.5 3.5 17.0 15.9 The Procter & Gamble Company (NYSE:PG) 86.1 66,832.0 (1.9) 17,615.0 26.4 219,439.9 3.3 12.5 12.6 Ulta Beauty, Inc. (NasdaqGS:ULTA) 98.0 6,311.7 21.3 1,085.7 17.2 16,616.2 2.6 15.3 13.6 Unilever PLC (LSE:ULVR) 87.8 61,068.7 0.7 11,918.1 19.5 167,042.9 2.7 14.0 13.3

Median 84.2 % 2.6 % $830.6 15.0 % $9,965.2 1.7 x 11.9 x 11.5 x

Mean 79.4 % 6.4 % $3,625.6 15.9 % $50,243.0 2.1 x 13.9 x 11.2 x

Food & beverage (10) Conagra Brands, Inc. (NYSE:CAG) 91.4 % $7,968.5 (10.8) % $1,488.5 18.7 % $18,480.7 2.3 x 12.4 x 11.7 x General Mills, Inc. (NYSE:GIS) 72.1 16,065.2 (2.9) 3,390.0 21.1 41,255.1 2.6 12.2 11.8 Hormel Foods Corporation (NYSE:HRL) 95.9 9,513.6 0.4 1,297.7 13.6 22,063.4 2.3 17.0 15.7 Mondelez International, Inc. (NasdaqGS:MDLZ) 88.6 26,373.0 (6.8) 4,791.0 18.2 84.0 0.0 0.0 0.0 Nestlé S.A. (SWX:NESN) 91.3 91,697.3 (0.2) 18,092.1 19.7 273,717.2 3.0 15.1 13.9 PepsiCo, Inc. (NasdaqGS:PEP) 86.7 64,663.0 0.1 12,714.0 19.7 171,184.0 2.6 13.5 12.8 The Coca-Cola Company (NYSE:KO) 92.8 33,143.0 (10.2) 10,986.0 33.1 219,432.4 6.6 20.0 19.3 The Hain Celestial Group, Inc. (NasdaqGS:HAIN) 57.6 2,457.8 (2.0) 218.6 8.9 3,262.5 1.3 14.9 12.0 The J. M. Smucker Company (NYSE:SJM) 78.2 7,510.7 5.9 1,663.8 22.2 18,388.0 2.4 11.1 10.6 TreeHouse Foods, Inc. (NYSE:THS) 69.4 6,185.7 24.0 531.5 8.6 4,962.2 0.8 9.3 8.8

Median 87.7 % (1.1) % $2,526.9 19.2 % $20,272.0 2.4 x 12.9 x 11.9 x

Mean 82.4 % (0.2) % $5,517.3 18.4 % $77,282.9 2.4 x 12.5 x 11.7 x

Home & garden (10) Central Garden & Pet Company (NasdaqGS:CENT) 73.6 % $2,203.5 10.4 % $212.0 9.6 % $2,383.7 1.1 x 11.2 x 10.6 x Helen of Troy Limited (NasdaqGS:HELE) 89.7 1,567.5 0.9 244.5 15.6 3,459.3 2.2 14.1 14.0 iRobot Corporation (NasdaqGS:IRBT) 77.5 975.7 19.7 118.6 12.2 2,396.2 2.5 20.2 15.8 Newell Brands Inc. (NYSE:NWL) 40.9 14,140.1 34.3 1,974.7 14.0 16,551.3 1.2 8.4 13.2 Snap-on Incorporated (NYSE:SNA) 89.6 4,092.4 4.6 1,032.8 25.2 10,539.5 2.6 10.2 9.7 Stanley Black & Decker, Inc. (NYSE:SWK) 72.9 13,457.1 5.8 2,151.5 16.0 24,268.9 1.8 11.3 9.6 The Clorox Company (NYSE:CLX) 96.2 6,124.0 2.7 1,284.0 21.0 21,185.0 3.5 16.5 15.9 The Toro Company (NYSE:TTC) 83.4 2,568.0 3.4 436.7 17.0 6,009.3 2.3 13.8 12.8 Tupperware Brands Corporation (NYSE:TUP) 47.2 2,206.1 (3.3) 399.2 18.1 2,328.5 1.1 5.8 5.8 Whirlpool Corporation (NYSE:WHR) 56.7 21,171.0 0.5 1,997.0 9.4 12,644.4 0.6 6.3 6.1

Median 75.6 % 4.0 % $734.8 15.8 % $8,274.4 2.0 x 11.3 x 11.7 x

Mean 72.8 % 7.9 % $985.1 15.8 % $10,176.6 1.9 x 11.8 x 11.3 x

www.investmentbanking.deloitte.com | Page 6 Quarterly update | Q3 2018 | Consumer Products and Retail

Consumer Products and Retail trading multiples (cont.)1

Historical Last twelve months NTM % of 52 Revenue LTM EBITDA Enterprise EV/ EV/ EV/ Company (ticker) Week high LTM revenue CAGR (3 Yr) EBITDA margin value ("EV") Revenue EBITDA EBITDA ($ in millions) Restaurant & food services (18) Aramark (NYSE:ARMK) 87.9 % $15,530.2 1.8 % $1,336.6 8.6 % $17,687.3 1.1 x 13.2 x 9.9 x Bloomin' Brands, Inc. (NasdaqGS:BLMN) 79.6 4,170.5 (2.3) 372.2 8.9 2,900.5 0.7 7.8 7.2 Brinker International, Inc. (NYSE:EAT) 85.3 3,135.4 1.5 411.0 13.1 3,288.9 1.0 8.0 8.7 Chipotle Mexican Grill, Inc. (NYSE:CMG) 81.9 4,653.1 1.6 518.5 11.1 11,507.0 2.5 22.2 19.6 Core-Mark Holding Company, Inc. (NasdaqGS:CORE) 93.8 12,850.4 14.8 103.6 0.8 2,019.8 0.2 19.5 12.0 Cracker Barrel Old Country Store, Inc. (NasdaqGS:CBRL) 85.7 3,030.4 2.2 387.3 12.8 3,972.4 1.3 10.3 10.2 Darden Restaurants, Inc. (NYSE:DRI) 86.5 8,205.4 6.2 1,100.7 13.4 14,082.7 1.7 12.8 11.8 Dine Brands Global, Inc. (NYSE:DIN) 88.0 597.3 (4.0) 187.4 31.4 2,790.4 4.7 14.9 11.6 Domino's Pizza, Inc. (NYSE:DPZ) 90.8 3,099.9 14.2 581.1 18.7 14,928.2 4.8 25.7 22.2 Dunkin' Brands Group, Inc. (NasdaqGS:DNKN) 95.3 881.9 4.0 487.3 55.2 8,850.2 10.0 18.2 19.0 Jack in the Box Inc. (NasdaqGS:JACK) 75.7 1,381.0 (3.4) 323.9 23.5 3,234.9 2.3 10.0 12.3 Recipe Unlimited Corporation (TSX:RECP) 86.1 715.6 46.8 154.4 21.6 1,692.6 2.4 11.0 9.4 SpartanNash Company (NasdaqGS:SPTN) 65.2 8,199.2 1.3 202.6 2.5 1,343.7 0.2 6.6 6.0 Sysco Corporation (NYSE:SYY) 91.2 58,727.3 6.5 3,260.1 5.6 43,913.7 0.7 13.5 12.4 Texas Roadhouse, Inc. (NasdaqGS:TXRH) 88.9 2,342.5 11.2 300.3 12.8 4,627.9 2.0 15.4 14.1 The Cheesecake Factory Incorporated (NasdaqGS:CAKE) 83.9 2,311.1 4.1 230.8 10.0 2,331.7 1.0 10.1 9.5 United Natural Foods, Inc. (NasdaqGS:UNFI) 50.5 10,226.7 7.7 335.9 3.3 1,675.8 0.2 5.0 4.7 YUM! Brands, Inc. (NYSE:YUM) 96.5 5,752.0 (24.0) 1,940.0 33.7 37,594.0 6.5 19.4 18.9

Median 86.3 % 3.1 % $379.7 12.8 % $3,630.6 1.5 x 13.0 x 11.7 x

Mean 84.0 % 5.0 % $679.6 15.9 % $9,913.4 2.4 x 13.5 x 12.2 x

Apparel & specialty retail (11) Carter's, Inc. (NYSE:CRI) 74.2 % $3,427.8 4.9 % $478.1 13.9 % $4,945.9 1.4 x 10.3 x 9.6 x Columbia Sportswear Company (NasdaqGS:COLM) 91.8 2,612.3 5.7 % 361.8 13.8 5,360.6 2.1 14.8 13.9 G-III Apparel Group, Ltd. (NasdaqGS:GIII) 75.4 2,976.3 10.0 % 254.1 8.5 2,349.2 0.8 9.2 8.5 Guess?, Inc. (NYSE:GES) 78.6 2,508.3 2.8 % 172.8 6.9 1,538.3 0.6 8.9 7.9 Hanesbrands Inc. (NYSE:HBI) 69.4 6,631.4 5.5 % 1,039.0 15.7 10,135.4 1.5 9.8 9.2 Iconix Brand Group, Inc. (NasdaqGS:ICON) 4.1 204.2 (18.6) % 89.2 43.7 661.5 3.2 7.4 NA Oxford Industries, Inc. (NYSE:OXM) 83.0 1,104.4 4.7 % 134.7 12.2 1,385.5 1.3 10.3 8.9 Perry Ellis International, Inc. (NasdaqGS:PERY) 92.8 880.7 (1.0) % 46.9 5.3 438.3 0.5 9.3 7.3 PVH Corp. (NYSE:PVH) 75.1 9,504.2 5.7 % 1,149.5 12.1 12,294.3 1.3 10.7 9.3 Ralph Lauren Corporation (NYSE:RL) 85.9 6,225.8 (6.1) % 954.4 15.3 9,125.8 1.5 9.6 9.1 V.F. Corporation (NYSE:VFC) 90.6 12,701.3 NA % 1,690.7 13.3 37,868.7 3.0 22.4 16.7

Median 78.6 % 4.8 % $361.8 13.3 % $4,945.9 1.4 x 9.8 x 9.2 x

Mean 74.6 % 1.4 % $579.2 14.6 % $7,827.6 1.6 x 11.2 x 10.0 x

www.investmentbanking.deloitte.com | Page 7 Quarterly update | Q3 2018 | Consumer Products and Retail

Recent Consumer Products and Retail M&A transactions1

Last twelve months

LTM LTM EBITDA Enterprise EV/ EV/ Target/acquiror Close date revenue EBITDA margin value ("EV") Revenue EBITDA ($ in millions)

Core Nutrition, LLC Pending N/A N/A N/A % 477.7 N/A x N/A x Keurig Dr Pepper Inc.

Sonic Corp. Pending 435.4 145.9 33.5 2,270.0 5.2 15.6 ARG Holding Corporation

Pirate Brands, LLC Pending N/A N/A N/A 420.0 N/A N/A Amplify Snack Brands, Inc.

No Ordinary Shoes Limited/No Ordinary Shoes USA LLC Pending 51.8 N/A N/A 16.9 0.3 N/A Ted Baker Plc

Zoe's Kitchen, Inc. Pending 332.9 17.9 5.4 298.3 0.9 16.6 Cava Group, Inc.

BA Sports Nutrition, LLC Pending N/A N/A N/A N/A N/A N/A The Coca-Cola Company

Food Group of Companies of Services Group of America Pending 3,200.0 N/A N/A 1,800.0 0.6 N/A US Foods, Inc.

SUPERVALU INC. Pending 15,395.0 426.0 2.8 2,907.1 0.2 6.8 United Natural Foods, Inc.

Insomnia Cookies, LLC Pending N/A N/A N/A N/A N/A N/A Krispy Kreme Doughnut Corporation

MVMT Watches Inc. Oct-18 71.0 N/A N/A 200.0 2.8 N/A Movado Group, Inc.

All of the Assets of Sweet Frog Enterprises, LLC Sep-18 92.0 N/A N/A 35.0 0.4 N/A MTY Food Group Inc.

Frozen Soup Business of NORPAC Foods Inc. Sep-18 N/A N/A N/A N/A N/A N/A Kettle Cuisine, LLC

Woolrich, Inc. Sep-18 181.0 N/A N/A N/A N/A N/A L-Gam Advisors Sarl

Jamba, Inc. Sep-18 78.3 3.6 4.6 204.7 2.6 56.8 FOCUS Brands Inc.

Florida Food Products, Inc. Sep-18 N/A N/A N/A N/A N/A N/A MidOcean Partners

Ciao Bella Gelato Company, Inc. Sep-18 N/A N/A N/A N/A N/A N/A High Road Craft Ice Cream, Inc.

Salsa Business in US of Sabra Dipping Co., LLC Sep-18 N/A N/A N/A N/A N/A N/A STIR Foods, LLC.; Pacifica Foods, LLC

Pizza Crust Business of Tyson Foods, Inc. Sep-18 N/A N/A N/A N/A N/A N/A Peak Rock Capital

U.S. Baking Business Of The J. M. Smucker Company Aug-18 370.0 N/A N/A 375.0 1.0 N/A Brynwood Partners; Brynwood Partners VII L.P.; Brynwood Partners VIII L.P.

Thom Browne, Inc. Aug-18 N/A N/A N/A 500.0 N/A N/A Ermenegildo Zegna Holditalia S.p.A.

Atlantic Beverage Company, Inc. Aug-18 N/A N/A N/A N/A N/A N/A ARC Group

The Boardroom Salon Company, LLC Aug-18 N/A N/A N/A N/A N/A N/A LightBay Capital

Cookietree, Inc. Aug-18 N/A N/A N/A N/A N/A N/A C.H. Guenther & Son, Inc.

Rise Baking Company Jul-18 N/A N/A N/A N/A N/A N/A Olympus Partners

Prive Goods, LLC Jul-18 N/A N/A N/A N/A N/A N/A TSG Consumer Partners butter LONDON, LLC Jul-18 N/A N/A N/A N/A N/A N/A Astral Brands, Inc.

Median 5.0 % 0.9 x 16.1 x Mean 11.6 % 1.6 x 24.0 x

www.investmentbanking.deloitte.com | Page 8 Quarterly update | Q3 2018 | Consumer Products and Retail

Select Deloitte Corporate Finance Consumer transactions

Spice World, Inc. Kar Nut Products Company has been acquired has completed a recapitalization

The undersigned acted as exclusive financial advisor to Spice World, Inc.

Deloitte Corporate Finance LLC

American Importing Company, Inc. has completed a recapitalization with

Gryphon Investors

The undersigned acted as financial advisor to American Importing Company, Inc.

Deloitte Corporate Finance LLC

www.investmentbanking.deloitte.com | Page 9 Quarterly update | Q3 2018 | Consumer Products and Retail

Sources cited

Page 2: 1. “No Signs of Fizzing Out: America’s Love of Sparkling Water Remains Strong Through August”. Nielsen, 24 July 2018. 2. “Move Over, Soda: Seltzer Sales are Through The Roof.” Fortune, 27 Aug. 2018. 3. Anheuser-Busch Partners with Hiball Energy and Alta Palla Brands.” Anheuser-Busch Press Release, 20 July 2017. 4. Thomas, Lauren. “It’s going to be an Instagram Christmas.” CNBC, 2 Oct. 2018. 5. Williams, Robert. “16% of consumers to use smartphones for holiday shopping.” Retail Dive, 3 Oct. 2018 6. Handley, Lucy. “The Luxury Sector is Growing Faster Than Many others and Gucci is in the Lead.” CNBC, 4 Oct. 2018. 7. Arienti, Patrizia. “Global Powers of Luxury Goods 2018.”, Deloitte, 2018. 8. Chamlee, Virginia. “Why Do People Want Veggie Burgers That Bleed.” Eater, 25 Aug. 2017. 9. Cheng, Andria. “The Plant-Based Meat Trend is Sizzling – Even KFC is Eyeing Faux-Chicken.” Forbes. 7 June. 2018 10. Dorbian, Iris. “LightBay Capital funds Boardroom Salon for Men.” The PE Hub Network, 16 August 2018. 11. S&P Capital IQ. July 9, 2018. Data as of July 9, 2018. 12. Haddon, Heather. “US Foods to Buy Five Food Businesses for $1.8 Billion.” The Wallstreet Journal, 30 July 2018. Page 3: 1. U.S. Bureau of Economic Analysis. October 14, 2018. Data as of September 30, 2018. 2. U.S. Department of the Treasury. October 14, 2018. Data as of September 28, 2018. 3. Bureau of Labor Statistics. October 14, 2018. Data as of September 30, 2018. 4. S&P Capital IQ. October 14, 2018. Data as of September 30, 2018. 5. IBISWorld. October 14, 2018. Data as of June 30, 2018. 6. U.S. Census. October 14, 2018. Data as of October 14, 2018. Page 4: 1. S&P Capital IQ. October 14, 2018. 2. S&P Capital IQ. October 14, 2018. Page 5: 1. S&P Capital IQ. October 14, 2018. 2. S&P Capital IQ. October 14, 2018. Page 6: 1. S&P Capital IQ. October 14, 2018. Page 7: 1. S&P Capital IQ. October 14, 2018. Page 8: 1. S&P Capital IQ. October 14, 2018.

www.investmentbanking.deloitte.com | Page 10 Quarterly update | Q3 2018 | Consumer Products and Retail

Deloitte Corporate Finance LLC (DCF)

DCF provides deal execution and lead financial advisory services to large corporate, middle market, private equity and venture capital firms. DCF and its affiliates maintain a presence in key US financial centers. For additional information or to find out more about how DCF can assist the deal initiation and execution process, please contact one of our DCF Managing Directors:

Phil Colaco Nick Cirignano Jamie Lewin Ron Rivera CEO [email protected] [email protected] [email protected] [email protected] +1 212 436 3273 +1 214 840 7057 +1 404 631 3710 +1 704 333 0533

Jonathan Adams John Deering James Miller Justin Silber [email protected] [email protected] [email protected] [email protected] +1 214 840 1779 +1 704 333 0574 +1 704 731 8230 +1 404 942 6960

Keith Adams Lorin DeMordaunt Byron Nelson Tom Spivey [email protected] [email protected] [email protected] [email protected] +1 404 631 3455 +1 704 333 0591 +1 469 417 2462 +1 214 840 7014

Eric Andreozzi Will Frame Jonathan Ohm Vijay Balasubramanian [email protected] [email protected] [email protected] [email protected] +1 704 333 0518 +1 312 486 4458 +1 212 436 2287 +1 212 313 1723

Tony Blanchard Mike Garcia Lou Paone Charlie Welch [email protected] [email protected] [email protected] [email protected] +1 313 396 3738 +1 213 996 4901 +1 704 731 7202 +1 704 731 7201

Doug Bolt Simon Gisby Jason Porter [email protected] [email protected] [email protected] +1 704 731 7219 +1 212 436 2495 +1 704 333 0136

Hector Calzada Bill Kerkam Matt Preece [email protected] [email protected] [email protected] +1 404 631 3015 +1 980 312 3613 +1 704 731 7186

Deloitte Corporate Finance Business Development Group:

Brad Heston John Lindsey Bill Pucci Senior Vice President Senior Vice President Senior Vice President [email protected] [email protected] [email protected] +1 404 631 3839 +1 469 417 2147 +1 973 602 4542

www.investmentbanking.deloitte.com Quarterly update | Q3 2018 | Consumer Products and Retail

This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

About Deloitte

Deloitte Corporate Finance LLC, an SEC registered broker-dealer and member of FINRA and SIPC, is an indirect wholly-owned subsidiary of Deloitte Financial Advisory Services LLP and affiliate of Deloitte Transactions and Business Analytics LLP. Investment banking products and services within the United States are offered exclusively through Deloitte Corporate Finance LLC. For more information, visit www.investmentbanking.deloitte.com. Please see http://www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.