Food, Beverage & Agribusiness

FOOD, BEVERAGE & AGRIBUSINESS Q1 SECTOR UPDATE | MARCH 2018

CORPORATE STRATEGY | CAPITAL | ACQUISITIONS & DIVESTITURES | CORPORATE FINANCE WWW.OPUSAP.COM

1 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 INTRODUCTION & OVERVIEW

KEY HIGHLIGHTS OF THIS REPORT CONTENTS Opus Advisory Partners is pleased to provide you with its Q1 2018 Food, Beverage & Agribusiness (FBA) Sector Update, which • Industry Trends & Growth provides a summary of recent sector activity, market trends, operating metrics, valuation information and transaction activity. Opportunities • Food & Beverage Price Indices • Food & beverage input costs, as well as consumer prices, throughout the entire industry • Food for Thought have maintained stability over the past three years—we • Public company valuations and multiples are expected to • Subsector Stock Returns expect this trend to continue until the end of 2018 remain strong in 2018 despite earnings growth pressures • Acquisition Activity • Changing consumer preferences are driving increased and degradation of sales in traditional food staples • Notable Acquisitions demand for foods and beverages that are healthier and • We believe that selective acquisitions will continue to • Whole Foods Market Acquisition “better for you”—food and beverage manufacturers are enhance organic growth initiatives. Merger & acquisition • Growth & Valuation Metrics responding appropriately activity hit a high in 2017, and we expect the trend to • Operating Metrics • The Amazon-Whole Foods Market acquisition in August continue in 2018 as traditional food staples are replaced— • Appendix: Public Company Data 2017 has been transformative in many ways—we believe in particular for healthy, better-for-you foods and snacks • Appendix: Transactional Data that it will help shape overall consumer preferences, as well as niche brands with a strong consumer following. expectations and demand that will reverberate

OPUS ADVISORY PARTNERS—OVERVIEW FBA TEAM CONTACTS

FIRM OVERVIEW FOOD, BEVERAGE & AGRIBUSINESS (FBA) SECTOR Opus Advisory Partners publishes this Opus Advisory Partners advises clients on accelerating growth, Leveraging our midwestern and southern farming roots, and FBA sector update to support corporate building shareholder value, and maximizing returns. The firm having a genuine love and curiosity for foods and beverages, decision makers with their strategic provides advice and execution services to senior executives, our team is passionate about the FBA sector. planning, growth and transactional board members and key shareholders in the areas of corporate initiatives. strategy, corporate finance, M&A and debt & equity capital, This report is designed to provide insight to strategic decision Mark Forbess with a primary focus on growth and value creation. makers of standalone companies and divisions as it relates to Managing Director the food, beverage & agribusiness (FBA) sector, which we (404) 476-4471 Corporate Strategy define broadly to include foods and beverages, agricultural [email protected] • Shareholder Value Enhancement products and services, and related participants in the FBA • Market Expansion & New Market Entry ecosystem. Within the FBA sector, we include the following Lee Miklovic • M&A Integration end markets and niches: Managing Director (404) 476-4470 Investment Banking • Food, beverage and ingredient manufacturers [email protected] Debt & Equity Capital • • Growers, producers & processors Acquisitions & Joint Ventures Josh Baker • • Equipment & technology providers Divestitures & Buyouts Vice President • • Agricultural products manufacturers • Recapitalizations (404) 476-4472 [email protected] Corporate Finance Advisory More specifically, we cover branded and private label products, natural/organic foods, baked goods, dairy, non-alcoholic and • Valuations & Opinions To subscribe to our FBA sector update, alcoholic beverages, snacks, meats, fruits & vegetables, and • Scenario Modeling & Analysis please visit our website or email us at ingredients & flavors. • Restructurings [email protected]. 2 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 INDUSTRY TRENDS AND GROWTH OPPORTUNITIES

In the last 12 months, there have been meaningful contain healthier Omega-3 fats with reduced sugar. We to growing consumer preferences while realizing developments within the overall FBA sector. Led by expect greater market penetration within plant-based greater efficiencies, improving food quality, and Amazon’s acquisition of Whole Foods in August 2017, dairy, including milk, yogurt, kefir and other related reducing labor costs. In addition, we expect that new we expect more industry changes in 2018. Changing products. food safety technologies, such as chromatography and consumer trends, especially among millennials, as well spectroscopy testing, will be utilized for more rapid as social media acceleration, have helped to rapidly Growth in Healthy, Better-For-You Products detection and increased accuracy. shape demand for healthier, natural, organic and more Foods and beverages are transitioning to healthier, customized food options. Evolving consumer tastes will more natural ingredients as consumers are prioritizing Continued Growth in Private-Label Brands require manufacturers to modify their product health and well-being over cost. Healthier alternatives Based on research from Nielson, private-label brands portfolios accordingly, largely through acquisitions of that include natural ingredients with reduced sugar, have grown 3% in the last year versus a decline of 0.5% proven, niche brands rather than commercialization of sodium and unhealthy oils, but without GMOs, artificial for branded products. Premium tier-5 private labels, in in-house R&D efforts. These changes in food flavorings or preservatives, are quickly becoming the particular, have grown 10% during the same period. preferences will likely motivate growers and processors norm. Consumers are becoming indifferent with regard to to modify their operations to accommodate natural and brand preferences, and we believe that this trend will organic offerings while adapting to changes in demand. Moderate levels of merger & acquisition activity are become the norm as private labels take over greater Traditional manufacturers will closely scrutinize their expected to continue in the healthy and better-for-you market share. Grocery retailers will be pressured to portfolio of products to make sure they are poised to categories, with particular emphasis on snack products. further develop their proprietary brands for grow shareholder value in line with consumer trends Acquisitions of growing niche brands with established differentiation, brand loyalty and profitability reasons, over the next five years. We expect increased consumer loyalty are likely to generate higher returns not to mention e-commerce scalability. Specialized acquisition activity in 2018 as a result. than unproven, internally developed products, which grocery retailers such as Whole Foods, Trader Joe’s and require time and resources to develop a following. Over Sprouts have been particularly successful in growing Focus on Plant-Based Alternatives the last 12 months, we have seen notable acquisition their private labels and generating sustainable customer In the last several years, consumer demand for plant- activity in this overall category: loyalty. based foods (tofu, meat alternatives, dairy alternatives and egg substitutes) has accelerated. Plant-based • Kellogg’s acquisition of RXBAR ($600 million) Consumer Demand for Locally Sourced Foods products are now projected to grow to $5 Billion by • Hershey’s acquisition of Amplify Snack Brands A growing number of consumers are demanding “local” 2020. In 2017, Nestle announced the acquisition of ($1.6 Billion) foods and are willing to pay a premium, especially for Sweet Earth, a plant-based foods manufacturer of 48 • Conagra’s acquisition of Angie’s Artisan Treats foods that are fresh, healthy and have a story. The U.S. unique products that contain tofu, legumes and seitan ($250 million) Department of Agriculture estimates that sales of as meat alternatives. • Campbell Soup’s acquisition of Pacific Foods of locally produced foods, which were approximately $12 Oregon ($700 million) billion in 2014, will increase to $20 billion in 2019. As a Within the plant-based food segment, dairy alternatives • Unilever’s acquisition of Tazo Tea ($384 million) result, larger, national food brands are working hard to are growing rapidly, principally driven by taste and the appeal to consumers through a more localized brand elimination of artificial ingredients and GMOs. Plant- Advances in Food Processing presence. We believe that partnerships or co-branding based milk is a $2.1 Billion market that has grown 61% Food processing plants will begin to adopt more opportunities between national brands and regional from 2012 to 2017 (Mintel). Almond, soy, coconut and advanced technologies that increase flexibility, food producers could be an answer to consumer other dairy alternatives have been particularly popular customization, product traceability and safety among demand while generating greater revenue opportunities with consumers who are seeking options for health or other benefits. New extrusion methods have led to for food suppliers and brand loyalty to grocery retailers. lifestyle reasons. Other plant-based dairy products such upgrades or new introductions in healthy snacks that Such partnerships will need to be balanced with the as flax, hemp, oat, pecan and cashew milks are also are puffed or popped. Robotics, artificial intelligence seasonal constraints of conventional farms and/or gaining market traction. These dairy substitutes often and IoT solutions will enable manufacturers to respond supplemented by local greenhouse production. 3 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 FOOD & BEVERAGE PRICE INDICES

FOOD & BEVERAGE INPUT COSTS: CHANGE FOOD CONSUMER PRICE INDEX IN PRODUCER PRICE INDEX 5% 4% 10-Yr. Avg. 10-Yr. Avg. 10-Yr. Avg. 3% 2.50% 0% 2% 1.29% 1% -5% 0.38% 0%

-1% -10% -2%

-15% -3% Unprocessed Foods/Feeds Processed Foods/Feeds Finished Consumer Foods Mar-2015 Sep-2015 Mar-2016 Sep-2016 Mar-2017 Sep-2017 Mar-2018 2015 2016 2017 YTD All Food Food at Home Food Away from Home

COMMODITY PRICE INDICES PROTEIN PRICE INDICES

130 130 120 122.7 120 110 105.1 110 100 98.9 96.5 103.8 90 100

80 90 90.9 70 82.4 80 60 70 50 40 60 Mar-2015 Sep-2015 Mar-2016 Sep-2016 Mar-2017 Sep-2017 Mar-2018 Mar-2015 Sep-2015 Mar-2016 Sep-2016 Mar-2017 Sep-2017 Mar-2018

Soybeans Corn Wheat Crude Oil Beef Poultry Pork

Source: U.S. Bureau of Labor Statistics, U.S. Department of Agriculture. 4 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 FOOD FOR THOUGHT

NOTABLE COMMENTS BY INDUSTRY EXECUTIVES SECTOR NEWS OF INTEREST

Shifting the Mindset from Products to Occasion (Feb 2018) Plowed Under | The Next American Farm Bust Is Upon Us (Steven Cahillane, CEO of Kellogg Company) Low prices for corn, wheat and other commodities, coupled with rising costs and “…we have to shift our mindset away from categories and products and to occasions. global competition, are driving U.S. farmers out of business. You can access the This is the way the consumer thinks, this is the way the consumer behaves…Winning article here. Through Occasions means delivering the right food in the right packaging at the right time for any particular occasion. In effect, we've been moving beyond breakfast for The Transformation of the American Farm, in 18 Charts some time, but we have a lot further that we can go.” American farms have become more specialized, focusing on one or several products, which has resulted in greater profit opportunities but also greater exposure to price Strategic Shift Towards Consumer Snacking (Dec 2017) swings. Access the article here. (Denise Morrison, CEO of Campbell Soup Co.) “…the macro snacking trend is quite literally becoming the way we eat today. The Dairies Are Awash in Organic Milk as Consumers Jump to Alternatives lines between snacks and meals are blurring. Snacking occasions are expanding Consumer demand for dairy alternatives such as almond, coconut and other plant- rapidly and even extending in traditional meals. 90% of consumers snack multiple based milks have led to oversupply of organic milk and reduced prices for dairy times per day. In the U.S., more than 50% of all eating occasions are snacks, and farmers. You can access the article here. nearly half of U.S. consumers replace meals with snacks at least 3 to 4 times per week. It's no wonder that snacking is an $89 billion market in the U.S., with a 3-year Getting Your Product on Shelves at Whole Foods Just Got Harder compound annual growth rate of approximately 3%.” Since its acquisition by Amazon, Whole Foods has taken steps to enhance its profitability by increasing the cost of shelf space and requiring deep price cuts on The Market Shift to E-Commerce Purchases (Feb 2018) supplier promotions. Access the article here. (Irwin Simon, Founder, Chairman & CEO of Hain Celestial Group Inc.) “In my 25 years at Hain Celestial, I haven't seen an industry change as much it has Smart Farming—Automated and Connected Agriculture over the last couple of years. During our meetings with major retail partners, we have Smart farming and precision agricultural technologies such as IoT/sensors, drones and a seat at the table and they are focused on three key areas: Brick & Mortar; Click 'N' autonomous robots are changing the future of agriculture from planting to Pick and e-commerce. According to IRI, e-commerce could represent 10% of grocery harvesting. You can access the article here. sales by 2022. In addition, it is estimated that 70% of shoppers will be buying their groceries online within 5 to 7 years, according to projections from the Food Marketing 10 Food Trends That Will Shape 2018 Institute and Nielsen's. Total online grocery spending could reach $100 billion. So we Changing consumer behaviors and demands are prompting significant changes in keep moving where the consumers are moving to.” nearly all aspects of the food industry, from farming to consumption. Access the article here. Merger & Acquisition Growth Strategy (Mar 2018) (Mark Clouse, CEO of Pinnacle Foods Inc.) Once-Hungry Investors Pass on Meal-Kit Startups “I think on the overall strategic thought around M&A, again completely consistent Investors are questioning the viability of meal-kit companies, such as HelloFresh and with what we have said historically, we believe very strongly in the contribution that Blue Apron, based on rising competition, challenges in attracting and retaining M&A can make to our overall business. We don't want to ever be dependent on it to customers, and logistical hurdles. You can access the article here. deliver our algorithm, but we definitely see it as an accelerator And so it's not for lack of participation or interest, but we are going to maintain our discipline. And I think we've got to be very focused on making sure we see the road to value creation.”

5 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 SUBSECTOR STOCK RETURNS & ACQUISITION ACTIVITY

Public Company Stock Returns by FBA Subsector

Summary Highlights 50% Alcoholic Fruits/ • Beverages (alcoholic and non-alcoholic) 2015 2016 2017 YTD 2018 Beverages Protein Vegetab. have seen the largest increases in equity 40% Non- Processing market capitalizations since 2015 Alcoholic Ingredients/ • Stock price performance for most FBA 30% Beverages Flavors subsectors was positive in both 2016 and S&P 500 2017 (9.5% median overall) Branded Dairy 20% Processed Natural/ Private Baked Agri- • Overall, YTD 2018 performance has seen Foods Organic Snacks Label Goods Business a decline (3.7% median overall) in part 10% based on reduced earnings growth Food/Bev expectations 0% • While revenue growth estimates for all subsectors are positive, we believe that -10% there is lower profitability associated with shifting consumer food trends -20%

-30%

U.S. Merger & Acquisition Activity (2010-2017) Selected Active Strategic Acquirors (2015—2017)

Summary Highlights 500 16x • For the fourth year in a row, U.S. merger Unilever 16 & acquisition activity increased in 2017, 450 14x Premium Brands 14 and we estimate that M&A activity will 400 Anheuser Busch 14 12x continue to be strong in 2018 350 Kerry Group plc 9 Beverage manufacturers, such as • 300 10x Constellation Brands 8 Anheuser Busch and Premium Brands, Archer Daniels 8 will continue to seek acquisitions as they 250 8x Conagra 7 broaden their product portfolio 200 6x McCormick & Co. 7 • Traditional consumer packaged goods 150 7 manufacturers will expand aggressively 4x Cargill 2015 100 Kellogg Company 5 2016 into categories emphasizing (i) healthy, 2x better-for-you foods/beverages, and (ii) 50 Hormel Foods 5 2017 snacking consumables 0 0x Int'l Flavors & Frag. 5 2010 2011 2012 2013 2014 2015 2016 2017 0 2 4 6 8 10 12 14 16 18 Transactions EBITDA Multiple Number of Transactions

Notes: (1) Annual stock price returns based on subsector constituent group; excludes dividends. (2) Merger and acquisition activity involving U.S. targets only. (3) Sources: public data, S&P Capital IQ, Opus Advisory Partners. 6 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 SELECTED NOTABLE M&A TRANSACTIONS

Date Enterprise Acquiror Target Announced Valuation Summary / Rationale

McCormick & Co. Reckitt Benckiser’s Food 7/18/2017 $4.2B • R&B portfolio includes French’s (#1 in market share), Frank’s RedHot (#1 Division in market share) and Cattlemen’s sauce and condiment brands • Complementary to McCormick’s existing brand portfolio • EV/EBITDA: 19.5x; EV/Revenue: 7.2x

Kellogg Company Chicago Bar Company 10/6/2017 $600MM • RXBAR is the fastest-growing nutrition bar in the United States (RXBAR) • The acquisition bolster’s Kellogg’s position in the clean-label, high-protein snacking segment • EV/Revenue: 6.0x

Unilever NV Tazo Tea Company 11/2/2017 $384MM • Tazo Tea is the leader in the fast-growing specialty tea category with (Starbucks) multiple formats and multiple channels • The acquisition further strengthens Unilever’s focus on millennials • EV/Revenue: 3.4x

The Hershey Company Amplify Snack Brands 12/18/2017 $1.6B • Brands include SkinnyPop , Paqui, Oatmega and Tyrrell’s • Expands Hershey’s snacking portfolio with synergies related to distribution, marketing activation and innovation • EV/EBITDA: 18.4x; EV/Revenue: 4.3x

Campbell’s Soup Co. Snyder’s-Lance 12/18/2017 $6.1B • Portfolio includes Snyder’s of Hanover, Lance, Kettle Brand, Kettle Chips, Cape Cod and Pop Secret • The acquisition will grow Campbell’s snack sales to nearly 50% of total revenues and provide exposure to higher-growth markets • EV/EBITDA: 19.9x; EV/Revenue: 2.7x

General Mills Blue Buffalo 2/23/2018 $7.9B • Establishes General Mills as the market share leader in wholesome natural pet food category—4x larger than the next competitor and the #1 selling online pet food brand • The wholesome natural pet food category has 10% penetration • EV/EBITDA: 25.3x; EV/Revenue: 6.2x

7 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 AMAZON’S ACQUISITION OF WHOLE FOODS MARKET

forced to adapt to a highly efficient distribution and inventory management system. We see this ultimately strengthening WFM foods suppliers’ operating The Amazon-Whole Foods Market Platform models over time but there will be some hiccups in the interim. As WFM’s e- Amazon acquired Whole Foods Market (WFM) on August 28, 2017 for $13.7 commerce (and potential meal-kit product offering) grows, food suppliers will Billion in an all-cash deal. The valuation reflects a TTM EBITDA multiple of 10.3x be pressured to increase the quality of vegetable and fruit produce (the leading (NTM EBITDA multiple of 11.2x). From a macro perspective, the effects on reason for consumer reticence to online grocery). consumer preferences and trends, the food industry and trade in general are meaningful and transformative. As a result of this deal, we believe that WFM is Small healthy/organic food suppliers unable to provide competitive pricing or poised for stronger revenue growth, market share gains and greater influence meet minimum WFM volume requirements will likely become acquisition over suppliers, but at reduced gross margins: candidates. We believe that strategic buyers (mid-sized organic/healthy food suppliers and large national brands) will seek out these opportunities at above- • We expect WFM to reduce overall consumer prices in 2018, which should market valuation multiples based on notable revenue and expense synergies. increase sales volumes—the #1 reason why consumers don’t shop at WFM is due to perceived higher prices (AlphaWise) Changes in Consumer Behavior & Preferences • We believe that consumer price reductions will also necessitate reductions in We expect that as initial consumer demand for convenience and quality are met supplier pricing as well as the number of WFM food suppliers despite an and proven out under the WFM model, there will be accelerated adoption. As overall increase in purchase volumes Jeff Bezos once said about Prime, “We want Prime to be such a good value, • We expect that organic and natural foods will become more widely available you’d be irresponsible not to be a member.” Much like the adoption of Amazon across more households and income levels, resulting in greater acceptance Prime, we believe that consumers will drive a “new normal” in the food industry. • Amazon’s Prime Now program allows for a more robust WFM e-commerce offering with delivery in as little as two hours; this should greatly strengthen Whole Foods Market Store Locations (464) WFM’s competitive position—we expect both expansion of the addressable online market and WFM market share gains as a result • WFM’s e-commerce platform will result in strong revenue growth but overall gross margin degradation due to the requisite increased costs (margins are less affected as average order size increases) • Amazon Prime member incentives will create growth, greater stickiness and brand loyalty for WFM offerings among consumers (62% of WFM shoppers are Prime members; 80% of Amazon Prime members don’t shop at WFM) • WFM has an opportunity to capitalize on the struggling meal kit market, leveraging its healthy/organic core competency, physical store and meal prep capabilities, and existing online presence via Amazon • Utilizing WFM stores for Amazon Prime orders, as well as the future potential for in-store pharmacies, are expected to generate greater foot traffic

Supplier Effects While the Amazon-WFM combination creates new growth opportunities and stronger customer retention for WFM, we expect some disruption in WFM’s supply chain. As Amazon as their effective customer, food suppliers will be 8 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 SELECTED VALUATION AND GROWTH METRICS BY SUBSECTOR

Public Valuation Multiples—EV / TTM EBITDA Public Valuation Multiples—EV / NTM EBITDA

Summary Highlights Branded Processed Foods Branded Processed Foods Beverages (alcoholic and non-alcoholic) • Private Label Foods & Beverages Private Label Foods & Beverages and Ingredients & Flavors companies exhibit the highest valuation multiples Natural/Organic Foods Natural/Organic Foods based on strong operating margins, Baked Goods Baked Goods continued growth prospects and Dairy Dairy operating scalability Non-Alcoholic Beverages Non-Alcoholic Beverages • Consolidation in the beverage industry, in both alcoholic and non-alcoholic Alcoholic Beverages Alcoholic Beverages categories, has also contributed to Snacks Snacks sustained high public multiples Protein Processing Protein Processing • We anticipate valuation levels to stabilize in 2018 across the overall FBA Fruits & Vegetables Fruits & Vegetables N/A sector Ingredients & Flavors Ingredients & Flavors Agribusiness Agribusiness

0x 5x 10x 15x 20x 0x 5x 10x 15x 20x

Historical Revenue CAGR—Last 3 Years Projected Revenue CAGR—Next 3 Years

Summary Highlights Branded Processed Foods Branded Processed Foods • Collectively, the FBA sector is projected Private Label Foods & Beverages Private Label Foods & Beverages to grow at a 3.4% CAGR over the next three years—higher than the previous Natural/Organic Foods Natural/Organic Foods three years’ actual CAGR Baked Goods Baked Goods • Revenue growth is being fueled by Dairy Dairy increased consumer demand for higher- Non-Alcoholic Beverages Non-Alcoholic Beverages priced, higher-quality products versus traditional food staples Alcoholic Beverages Alcoholic Beverages • As food & beverage manufacturers Snacks Snacks adopt to changing consumer demands, Protein Processing Protein Processing new branding strategies focused on freshness, snacking and better health are Fruits & Vegetables Fruits & Vegetables expected to further drive sales growth Ingredients & Flavors Ingredients & Flavors Agribusiness Agribusiness

-8% -6% -4% -2% 0% 2% 4% 6% 8% 0% 1% 2% 3% 4% 5% 6%

Notes: (1) Data based on median information; trailing 12 months (TTM) as of March 31, 2018. (2) EV = enterprise value; CAGR = compound annual growth rate; NTM = next 12 months. (3) EBITDA = earnings before interest, taxes, depreciation and amortization. (4) Source: Opus Advisory Partners, S&P CapitalIQ, Thomson Reuters. 9 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 SELECTED OPERATING METRICS BY SUBSECTOR

Adjusted EBITDA Margin (TTM) Gross Margin (TTM)

Summary Highlights Branded Processed Foods Branded Processed Foods • Beverages (alcoholic and non-alcoholic), Private Label Foods & Beverages Private Label Foods & Beverages Branded Processed Foods, and Ingredients & Flavors command the largest gross Natural/Organic Foods Natural/Organic Foods margins and adjusted EBITDA margins Baked Goods Baked Goods • The manufacturing scale and technology Dairy Dairy inherent in these categories, as well as the Non-Alcoholic Beverages Non-Alcoholic Beverages high product utility, allow companies to operate on a highly efficient basis Alcoholic Beverages Alcoholic Beverages • The Beverage and Branded Processed Snacks Snacks Foods categories exhibit strong consumer Protein Processing Protein Processing loyalty and branding, which contribute to Fruits & Vegetables Fruits & Vegetables attractive gross margins • Reduced media and advertising expenses Ingredients & Flavors Ingredients & Flavors are helping to bolster strong operating Agribusiness Agribusiness margins 0% 5% 10% 15% 20% 25% 30% 35% 0% 10% 20% 30% 40% 50% 60%

Net Leverage Ratio (TTM) CapEx as a Percent of Revenues (TTM)

Summary Highlights Branded Processed Foods Branded Processed Foods • Overall industry net leverage has increased Private Label Foods & Beverages Private Label Foods & Beverages every year since 2015 as companies have Natural/Organic Foods Natural/Organic Foods funded new growth initiatives related to changing consumer tastes Baked Goods Baked Goods • Two subsectors have accumulated Dairy Dairy significant leverage: Private Label Non-Alcoholic Beverages Non-Alcoholic Beverages Foods/Beverages (4.4x) and Natural/ Organic Foods (4.0x) primarily due to Alcoholic Beverages Alcoholic Beverages acquisitions or operational challenges Snacks Snacks • Agribusiness, Alcoholic Beverages and Protein Processing Protein Processing Ingredients & Flavors are investing heavily Fruits & Vegetables Fruits & Vegetables in capital expenditures (as a percent of revenues) in support of manufacturing Ingredients & Flavors Ingredients & Flavors upgrades and technology efficiencies Agribusiness Agribusiness

0x 1x 2x 3x 4x 5x 0% 2% 4% 6% 8% 10%

Notes: (1) Data based on median information; trailing 12 months (TTM) as of March 31, 2018. (2) Net leverage is equal to net debt (total debt less cash & equivalents) divided by TTM adjusted EBITDA. (3) EBITDA = earnings before interest, taxes, depreciation and amortization. (4) Source: Opus Advisory Partners, Thomson Reuters. 10 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED PUBLICLY HELD COMPANY VALUATION METRICS

(U.S. dollars in millions, except per share data) 3-Year 3-Year Valuation Metrics Percent Equity Hist. Proj. TTM Net Multiple of Enterprise Value (3): Price/ of 52-Wk Market Enterprise TTM Revenue Revenue EBITDA Debt/ TTM TTM NTM Forward Country Ticker High Value (1) Value (1)(2) Revenues CAGR CAGR Margin EBITDA Revenues EBITDA EBITDA Earnings Branded Processed Foods Nestle S.A. Switz. NESN:SW 87.9% $ 231,212 $ 250,360 $ 94,180 -0.7% 3.7% 20.0% 0.8x 2.66x 13.3x 15.6x 20.1x Associated British Foods plc U.K. ABF:LN 73.9% 27,638 27,584 21,699 5.9% 4.8% 12.5% 0.0x 1.27x 10.2x N/A 18.9x General Mills, Inc. U.S. GIS 74.9% 26,716 35,757 15,657 -4.5% 4.3% 20.5% 2.7x 2.28x 11.1x 10.1x 13.5x Kellogg Company U.S. K 88.5% 22,558 30,962 13,070 -3.9% 2.3% 18.5% 3.5x 2.37x 12.8x 11.8x 13.7x Hormel Foods Corp. U.S. HRL 91.1% 18,174 18,672 9,219 -0.5% 4.2% 14.9% 0.4x 2.03x 13.6x 13.2x 19.1x Hershey Company U.S. HSY 85.3% 14,718 18,868 7,608 0.4% 3.0% 23.9% 2.3x 2.48x 10.4x 9.8x 16.9x ConAgra Foods, Inc. U.S. CAG 90.1% 14,513 18,130 7,834 -12.9% 0.9% 19.3% 2.3x 2.31x 12.0x 11.9x 16.4x J.M. Smucker Company U.S. SJM 94.3% 14,087 18,835 7,360 9.6% 0.4% 22.2% 2.9x 2.56x 11.5x 11.1x 11.8x McCormick & Company, Inc. U.S. MKC 96.1% 13,959 18,926 5,028 4.4% 6.5% 19.4% 5.1x 3.76x 19.4x 16.5x 20.7x Campbell Soup Company U.S. CPB 73.5% 13,036 16,753 8,130 -1.5% 9.7% 21.6% 4.5x 2.06x 9.5x 8.4x 10.7x Post Holdsings, Inc. U.S. POST 85.7% 5,098 12,217 5,740 29.4% 8.1% 19.6% 6.3x 2.13x 10.8x 9.4x 15.2x B&G Foods, Inc. U.S. BGS 55.8% 1,578 3,557 1,682 25.3% 2.1% 19.7% 6.0x 2.11x 10.8x 10.1x 13.0x

Median 86.8% -0.1% 4.0% 19.6% 2.8x 2.30x 11.3x 11.1x 15.8x

Private Label Foods & Beverages TreeHouse Foods, Inc. U.S. THS 42.6% $ 2,158 $ 4,560 $ 6,252 28.9% -0.1% 8.6% 4.4x 0.73x 8.5x 8.1x 20.8x Cott Corp. U.S. COT 83.5% 2,060 3,143 2,727 2.6% 3.9% 12.5% 3.2x 1.15x 9.2x 9.6x N/M Seneca Foods Corp. U.S. SENEA 73.3% 279 725 1,315 -2.4% N/A 3.4% 9.9x 0.55x 16.0x N/A N/M

Median 73.3% 2.6% 1.9% 8.6% 4.4x 0.73x 9.2x 8.9x 20.8x

Source: S&P Capital IQ, Opus Advisory Partners, SEC public filings. Note: N/A = Not Applicable; N/M = Not Meaningful; TTM = Trailing 12 Months; NTM = Next 12 Months; CAGR = Compound Annual Growth Rate. (1) Based on reported fully diluted shares and closing prices as of 03/31/2018. (2) Enterprise value equal to equity market value, (i) plus outstanding debt, preferred stock and non-controlling interests, (ii) less cash & equivalents and short-term investments. (3) EBITDA refers to earnings before interest, taxes, depreciation & amortization, adjusted for certain non-recurring items.

11 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED PUBLICLY HELD COMPANY VALUATION METRICS (cont.)

Median 71.3% 6.7% 1.4% 10.6% 4.0x 1.40x 13.5x 12.8x 21.1x

Baked Goods George Weston Ltd. Can. WN:CN 83.0% $ 10,295 $ 25,511 $ 37,418 3.2% 2.2% 9.0% 2.8x 0.68x 7.6x 7.5x 14.2x Flowers Foods, Inc. U.S. FLO 100.0% 4,608 5,435 4,219 1.5% 1.8% 10.9% 1.7x 1.29x 11.8x 11.4x 17.4x Lancaster Colony Corp. U.S. LANC 91.6% 3,384 3,196 1,205 4.9% 1.9% 16.3% 0.0x 2.65x 16.2x 14.9x 24.9x Aryzta AG Switz. YZA:ID 54.9% 2,071 4,112 4,531 3.8% 0.4% 9.6% 4.7x 0.91x 9.5x N/A 10.8x

Median 87.3% 3.5% 1.8% 10.2% 2.3x 1.10x 10.7x 11.4x 15.8x

Dairy Saputo Inc. Can. SAP:CN 87.1% $ 16,026 $ 17,698 $ 8,935 6.5% 9.9% 11.2% 1.3x 1.98x 17.7x 16.1x 19.8x Parmalat S.p.A. Italy PLT:IM 92.2% 6,838 6,546 8,250 6.5% N/A 6.8% 0.0x 0.79x 11.7x N/A 28.4x Savencia SA Fra. SAVE:FP 98.1% 1,495 2,286 5,979 1.7% 3.8% 5.7% 1.9x 0.38x 6.7x N/A 11.0x Dean Foods Company U.S. DF 43.0% 787 1,666 7,780 -6.4% -1.5% 4.3% 2.6x 0.21x 4.9x 5.4x 14.7x Lifeway Foods, Inc. U.S. LWAY 56.6% 95 98 116 0.0% N/A 1.6% 1.2x 0.84x N/M 12.5x N/M

Median 87.1% 1.7% 3.8% 5.7% 1.3x 0.79x 9.2x 12.5x 17.3x

12 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED PUBLICLY HELD COMPANY VALUATION METRICS (cont.)

Median 89.5% 3.0% 3.5% 22.5% 1.6x 3.81x 16.1x 15.9x 21.7x

Alcoholic Beverages Anheuser-Busch InBev SA Belg. ABI:BB 81.6% $222,121 $337,438 $ 61,720 12.2% 2.6% 39.1% 4.4x 5.47x 14.0x N/A 19.2x Carlsberg A/S Denm. CARL-A:DC 89.0% 134,973 163,708 76,154 -1.4% N/A 21.7% 1.5x 2.15x 9.9x N/A N/M Diageo plc U.K. DGE:LN 88.5% 84,144 99,807 17,041 5.5% 2.9% 33.7% 2.3x 5.86x 17.4x 17.7x 25.5x Heineken NV Neth. HEIA:NA 95.9% 61,332 78,915 26,968 4.4% 3.9% 24.4% 2.4x 2.93x 12.0x 13.0x 20.5x Pernod Ricard SA Fra. RI:FP 99.8% 43,998 53,318 11,127 4.3% 2.8% 29.3% 2.8x 4.79x 16.4x N/A 23.8x Constellation Brands Inc. U.S. STZ 98.9% 43,642 53,747 7,585 8.0% 7.2% 38.2% 3.5x 7.09x 18.6x 17.6x 22.6x Brown-Forman Company U.S. BF.A 95.8% 25,979 27,789 3,210 0.0% N/A 36.8% 1.5x 8.66x 23.5x N/A N/M Sapporo Holdings Ltd. Japan 2501:JP 97.9% 9,486 5,469 164 0.6% N/A N/M N/M N/M N/M N/A N/M

Median 95.9% 4.3% 2.9% 33.7% 2.4x 5.47x 16.4x 17.6x 22.6x

13 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED PUBLICLY HELD COMPANY VALUATION METRICS (cont.)

Median 88.6% 0.6% 3.9% 16.9% 1.5x 2.40x 13.9x 13.2x 17.2x

Protein Processing Tyson Foods, Inc. U.S. TSN 87.5% $ 26,934 $ 36,756 $ 39,997 0.6% 3.9% 10.4% 2.4x 0.92x 8.8x 8.5x 10.5x Seaboard Corp. U.S. SEB 91.6% 4,992 4,385 5,989 -3.5% N/A 6.4% 0.0x 0.73x 11.4x N/A N/M Sanderson Farms, Inc. U.S. SAFM 68.9% 2,718 2,329 3,426 6.4% 5.0% 14.9% 0.0x 0.68x 4.6x 5.4x 11.1x Cal-Maine Foods, Inc. U.S. CALM 87.8% 2,125 1,851 1,334 -9.3% 12.7% 8.1% 0.0x 1.39x 17.2x 7.5x 18.4x

Median 87.7% -1.5% 5.0% 9.2% 0.0x 0.83x 10.1x 7.5x 11.1x

Fruits & Vegetables Fresh Del Monte Produce Inc. U.S. FDP 73.7% $ 2,207 $ 2,989 $ 4,160 1.3% 7.0% 6.0% 3.0x 0.72x 12.0x N/A 14.1x Calavo Growers, Inc. U.S. CVGW 98.1% 1,617 1,648 1,097 11.2% N/A 6.7% 0.4x 1.50x 22.6x 18.3x 29.1x Total Produce plc U.K. T7O:ID 93.7% 1,305 1,575 5,150 11.3% 2.3% 2.8% 1.1x 0.31x 10.8x N/A 18.3x Seneca Foods Corp. U.S. SENEA 73.3% 279 725 1,315 -2.4% N/A 3.4% 9.9x 0.55x 16.0x N/A N/M

Median 83.7% 6.3% 4.6% 4.7% 2.1x 0.63x 14.0x 18.3x 18.3x

14 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED PUBLICLY HELD COMPANY VALUATION METRICS (cont.)

Median 87.4% 3.2% 4.6% 19.3% 1.1x 2.66x 15.5x 15.2x 19.7x

Agribusiness Monsanto Company U.S. MON 94.4% $ 51,484 $ 56,953 $ 14,593 -2.6% 3.8% 28.5% 1.3x 3.90x 13.7x 12.2x 24.7x Archer-Daniels-Midland Corp. U.S. ADM 94.7% 24,244 32,420 61,366 -9.2% 2.5% 4.0% 3.3x 0.53x 13.1x 10.1x 14.1x Bunge Limited U.S. BG 88.8% 10,418 17,492 45,314 -7.1% 2.3% 2.5% 5.5x 0.39x 15.3x 8.5x 11.5x The Mosaic Company U.S. MOS 83.2% 9,358 13,450 7,765 -6.5% 10.5% 17.7% 3.3x 1.73x 9.8x 7.0x 17.4x CF Industries Holdings, Inc. U.S. CF 84.7% 8,805 15,633 4,050 -4.5% 5.1% 24.5% 3.8x 3.86x 15.7x 11.0x N/M Darling Ingredients Inc. U.S. DAR 88.9% 2,848 4,580 3,658 -2.5% 2.3% 12.2% 3.7x 1.25x 10.3x N/A 23.0x Andersons, Inc. U.S. ANDE 85.3% 943 1,875 3,470 -6.7% 4.0% 3.3% 7.9x 0.54x 16.3x 11.0x 16.0x

Median 88.8% -6.5% 3.8% 12.2% 3.7x 1.25x 13.7x 10.6x 16.7x

15 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED TRANSACTION ACTIVITY

(Dollars in millions)

Date Enterprise Target Announced Acquiror Target Category Deal Type Value Revenues 3/26/2018 Givaudan SA Naturex Group Food Sale $ 1,775 $ 504 3/15/2018 Premium Brands Holdings Corp. Concord Premium Meats Ltd. Food Sale 94 3/12/2018 The Clorox Company Nutranext LLC Food Sale 700 200 2/28/2018 Buderim Group Ltd. Royal Hawaiian Macadamia Nut, Inc. Agribusiness Sale 24 2/23/2018 General Mills, Inc. Blue Buffalo Co. Ltd. Food Sale 7,935 1,275 2/20/2018 Bonduelle SA Del Monte Canada, Inc., Conagra Brands subsidiary Food Divest. 34 47 2/12/2018 Cott Corporation Crystal Rock Holdings Inc. Beverages Sale 34 57 2/7/2018 Terra Nitrogen GP, Inc. Terra Nitrogen Co. LP Agribusiness Sale 1,475 2/6/2018 Fresh Del Monte Produce, Inc. Mann Packing Co., Inc. Food Sale 361 535 2/1/2018 Hostess Brands, Inc. Breakfast Assets, Aryzta Food Sale 25 2/1/2018 Total Produce Plc Dole Food Company Food 45% Sale 1,924 4,455 1/30/2018 Bunge North America, Inc. Minsa Corp. Agribusiness Sale 75 1/29/2018 Keurig Green Mountain, Inc. Dr Pepper Snapple Group, Inc. Beverages Sale 25,252 6,680 1/17/2018 Nomad Foods Ltd Green Isle Foods Ltd. Food Divest. 276 1/17/2018 Ospraie Management LLC JBS Five Rivers Cattle Feeding LLC Agribusiness Sale 200 1/16/2018 Ferrero SpA Nestlé's U.S. Confectionery Business Food Divest. 2,800 12/22/2017 Colian Holding S.A. Lily O'Brien's Chocolates Food Sale 47 12/20/2017 GreenSpace Brands, Inc. Galaxy Nutritional Foods, Inc. Food Sale 18 16 12/18/2017 The Hershey Co. Amplify Snack Brands, Inc. Food Sale 1,600 372 12/18/2017 Campbell Soup Co. Snyder's - Lance Food Sale 6,070 2,231 12/13/2017 Becle, S.A.B. Hood River Distillers, Inc. - Pendleton Whisky Brands Beverages Divest. 205 12/13/2017 Target Corp. Shipt, Inc. Food Sale 550 12/5/2017 Nestlé S.A. Atrium Innovations Inc. Food PE Exit 2,300 697 11/30/2017 Maple Leaf Foods, Inc. Field Roast Grain Meat Co., Inc. Food Sale 120 38 11/30/2017 John B. Sanfilippo & Son, Inc. Squirrel Brand LP Food Sale 32 36 11/7/2017 Itafos Agrium, Inc. (Conda Phosphate Operations) Agribusiness Divest. 100 11/7/2017 Trammo Nitrogen Products, Inc. Agrium, Inc. (North Bend Nitric Acid Operations) Agribusiness Divest. 15 11/2/2017 Unilever NV Tazo Tea Co. (Starbucks) Beverages Divest. 384 112 11/2/2017 Freiberger USA Inc. Richelieu Foods Inc. Food Sale 435 325 11/1/2017 Saputo, Inc. Betin, Inc Food Sale 264 116 10/31/2017 Hormel Foods Corp. Columbus Manufacturing, Inc. Food Sale 850 300 10/31/2017 Metalmark Capital US Salt LLC Agribusiness Sale 225

Notes: (1) Transaction multiples based on enterprise value of transaction. (2) Source: S&P Capital IQ, Opus Advisory Partners research, and public information. 16 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED TRANSACTION ACTIVITY (cont.)

(Dollars in millions)

Date Enterprise Target Announced Acquiror Target Category Deal Type Value Revenues 10/26/2017 Utz Quality Foods, Inc. Inventure Foods, Inc. Food Sale $ 165 10/26/2017 Saputo, Inc. Murray Goulburn Co-Operative Co. Ltd. Food Sale 1,008 $ 1,954 10/23/2017 Kraft Heinz Co. Cerebos Food & Instant Coffee Business (Suntory) Food Divest. 228 10/20/2017 EnerJex Resources, Inc. AgEagle Aerial Systems, Inc. Agribusiness Sale 20 10/18/2017 Hilton Food Group Plc Icelandic Group UK Ltd. Food Sale 111 341 10/18/2017 SUPERVALU Inc. Associated Grocers of Florida, Inc. Food Sale 180 650 10/16/2017 NEOVIA SAS Epicore BioNetworks, Inc. Agribusiness Sale 23 12 10/6/2017 Kellogg Company Chicago Bar Company LLC (dba RXBAR) Food Sale 600 100 10/6/2017 Cooke Aquaculture, Inc. Omega Protein Corp. Agribusiness Sale 509 342 10/2/2017 Coca-Cola North America Topo Chico Mineral Water Beverages Sale 220 9/22/2017 ConagraBrands Angie’s Artisan Treats Food Sale 250 9/20/2017 McCall Farms, Inc. Sager Creek Foods, Inc. (Del Monte Foods, Inc.) Food Divest. 55 9/18/2017 Valora Holding AG BackWerk Management GmbH Food Sale 227 9/14/2017 Nestlé S.A. Blue Bottle Coffee Beverages Sale 735 9/12/2017 Oregon Potato Co. Frozen Foods Division, Inventure Foods Food Divest. 50 9/11/2017 Pilgrim's Pride Corp. Moy Park Ltd. Food Divest. 1,300 1,857 9/9/2017 Post Holdings, Inc. Bob Evans Farms, Inc. Food Sale 1,650 423 8/25/2017 Coca-Cola Southwest Beverages, LLC Great Plains Coca-Cola Bottling Company, Inc. Beverages Sale 215 8/25/2017 The Chefs' Warehouse, Inc Fells Point Wholesale Meats, Inc. Agribusiness Sale 45 8/24/2017 Hormel Foods Corp. Cidade do Sol Alimentos S.A. Food Sale 104 8/22/2017 Farmer Brothers Co. Boyd Coffee Co. Beverages Sale 59 95 8/20/2017 B&G Foods, Inc. Back to Nature Foods Company LLC Food Sale 163 81 8/17/2017 Hormel Foods Corp. Fontanini Italian Meats (Capital Wholesale Meats, Inc.) Food Divest. 425 8/14/2017 Mars, Inc. Preferred Brands International, Inc. Food Sale 173 8/8/2017 University of San Francisco Star Route Farms LLC Agribusiness Sale 10 8/7/2017 Mexichem, S.A.B. Netafim Ltd. Agribusiness Sale 1,895 855 8/3/2017 Grupo LALA, S.A.B. Vigor Alimentos SA Food Sale 1,830 1,522 8/3/2017 Sapporo Holdings Anchor Brewing Company Beverages Sale 85 33 8/1/2017 Mason Wells King Juice Company, Inc. Beverages Sale 215 25 7/27/2017 Otsuka Pharmaceutical Co., Ltd. Daiya Foods, Inc. Food Sale 326 72 7/25/2017 Refresco Group Carbonated Drinks/Juice Division of Cott Brands Beverages Divest. 1,250 1,700 7/20/2017 Grupo Bimbo, S.A.B. East Balt, Inc. Food Sale 650 420

Notes: (1) Transaction multiples based on enterprise value of transaction. (2) Source: S&P Capital IQ, Opus Advisory Partners research, and public information. 17 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED TRANSACTION ACTIVITY (cont.)

(Dollars in millions)

Date Enterprise Target Announced Acquiror Target Category Deal Type Value Revenues 7/20/2017 Marubeni Corp. Creekstone Farms Premium Beef LLC Agribusiness PE Exit $ 120 7/19/2017 Markel Corp. Costa Farms LLC Agribusiness Sale 315 7/18/2017 McCormick & Co., Inc. Reckitt Benckiser’s Food Division Food Divest. 4,200 $ 581 7/14/2017 Rosewood Corp. Healthy Natural Inc. Food Sale 18 7/14/2017 MCF Holdings Ltd (Canada) JBS Food Canada Inc (Cattle Feeding Business) Agribusiness Divest. 39 7/6/2017 Campbell Soup Co. Pacific Foods of Oregon, Inc. Food Sale 700 218 7/3/2017 Groupe Lactalis SA Stonyfield Farm, Inc. Food Divest. 875 370 6/29/2017 Rubicon Ltd. ArborGen, Inc. Agribusiness Sale 29 6/27/2017 Aventine Renewable Energy Holdings Illinois Corn Processing LLC Agribusiness Sale 76 6/21/2017 Diageo plc Casamigos Spirits Co. (Casamigos Tequila) Beverages Sale 1,000 6/20/2017 Certis USA LLC LAM International Corp. Agribusiness Sale 18 6/16/2017 Amazon.com, Inc. Whole Foods Market, Inc. Food Sale 13,700 19,571 5/30/2017 J. M. Smucker Company Wesson, Conagra Brands subsidiary Food Divest. 285 5/22/2017 Core-Mark Holding Company, Inc. Farner-Bocken Company Food Sale 190 1,400 5/22/2017 HGGC LLC Nutraceutical International Corp. Food Sale 446 235 5/10/2017 High Liner Foods, Inc. Rubicon Resources LLC Food Sale 107 234 4/26/2017 Green Plains, Inc. Cargill, Inc. - Cattle Feed Yards Agribusiness Divest. 37 4/25/2017 Tyson Foods, Inc. AdvancePierre Foods, Inc. Food Sale 4,133 1,589 4/20/2017 Unilever NV Kensington & Sons LLC Food Sale 140 4/18/2017 Post Holdings, Inc. Weetabix Ltd. Food Sale 1,760 4/12/2017 PAI Partners SAS Refresco Group NV Beverages Sale 2,137 4/11/2017 Conyers Park Acquisition Corp. Atkins Nutritionals, Inc. Food Sale 856 408 4/10/2017 TSG Consumer Partners Brewdog PLC Beverages Sale 1,240 4/10/2017 SUPERVALU Inc. Unified Grocers, Inc. Food Sale 375 3,750 4/4/2017 ISS AS Guckenheimer Services LLC Food Sale 225 337 4/3/2017 TBG AG Telvent DTN, LLC Agribusiness Sale 900 213 3/23/2017 The Pictsweet Co. Fresh Frozen Foods LLC Food Divest. 24 3/15/2017 Ferrero SpA Fannie May Confections Brands, Inc. Food Divest. 115 3/13/2017 JBS SA Plumrose USA, Inc. Food Divest. 230 500 3/2/2017 Landec Corp. O Olive Oil, Inc. Agribusiness Sale 10 2/21/2017 Maple Leaf Foods, Inc. Lightlife Foods, Inc. Food Sale 140 40

Notes: (1) Transaction multiples based on enterprise value of transaction. (2) Source: S&P Capital IQ, Opus Advisory Partners research, and public information. 18 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018 APPENDIX: SELECTED TRANSACTION ACTIVITY (cont.)

(Dollars in millions)

Date Enterprise Target Announced Acquiror Target Category Deal Type Value Revenues 2/13/2017 Heineken International B.V. Brasil Kirin Holding S.A. Beverages Divest. $ 1,087 $ 1,187 2/10/2017 Reckitt Benckiser plc Mead Johnson Nutrition Co. Food Sale 17,900 3,743 2/8/2017 Farmer Brothers Co. West Coast Coffee Co. Beverages Sale 15 2/2/2017 Davide Campari - Milano SpA BULLDOG London Dry Gin Beverages Sale 58 1/30/2017 Validus Holdings Ltd ADM Crop Risk Services Inc Agribusiness Sale 128 1/24/2017 Bob Evans Farms, Inc. Pineland Farms Potato Co. Agribusiness Divest. 115

Notes: (1) Transaction multiples based on enterprise value of transaction. (2) Source: S&P Capital IQ, Opus Advisory Partners research, and public information. 19 FOOD, BEVERAGE & AGRIBUSINESS SECTOR UPDATE | MARCH 2018

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