Food and Beverage Industry Insight March 2021 0 Food and Beverage Industry Insight | March 2021 U.S

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Food and Beverage Industry Insight March 2021 0 Food and Beverage Industry Insight | March 2021 U.S. F&B - M&A Market Overview U.S. F&B industry transaction activity remains strong, primarily driven by strategic buyers seeking growth

U.S. F&B Transactions by Buyer Type U.S. F&B Transaction Multiples

17.7x

47 41 58 59 53 36 13.1x 45 12.5x 12.1x 48 11.0x 11.4x 9.6x 9.2x 9.8x 368 406 399 393 352 357 316 285 12 2.3x 1.5x 1.6x 97 1.5x 1.4x 0.7x 0.9x 1.1x 0.7x

2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD YTD Strategic Financial EV / EBITDA EV / Revenue

Source: Peakstone & Capital IQ

www.peakstone.com 1 Food and Beverage Industry Insight | March 2021 Peakstone Food and Beverage Index - Trading Statistics The S&P 500 has outperformed the broad Food & Beverage sector

Relative Stock Performance

150%100% S&P 500: 90% 80% Food Ingredients: 53%

100%60% Beverage Products: 25% Food Production: -12% 40% Food Retail: -14%

20%50%

0% Peakstone Food Ingredients Index GIVN, KRZ, IFF, SY1, BARN, SXT, 4914, 4958

0% Peakstone Beverage Products Index -20% ABI, KO, PEP, STZ, MNST, TAP, BF.B, LWAY, FIZZ, FARM

-40% Peakstone Food Retail Index KR, SFM, VLGE.A, SPTN, WMK, NGVC

-50% Peakstone Food Production Index -60% NESN, ULVR, KHC, MDLZ, BN, GIS, ABF, TSN, BIMBO A, HSY, JBSS3, HRL, K, CPB, WN, CAG, SJM, SAP, MKC, PPC, POST, HAIN, FLO, ARYN, FDP, JJSF, LANC, LOTB, THS

Source: Capital IQ, data as of March 2021 www.peakstone.com 2 Food and Beverage Industry Insight | March 2021 Peakstone Food and Beverage Index - Trading Statistics Food Ingredients are receiving a premium valuation relative to earnings when compared with the S&P 500

Comparable Valuation Trends – Enterprise Value / EBITDA

25.0x Food Ingredients: 19.7x S&P 500: 17.7x 20.0x Beverage Products: 16.7x Food Production: 11.3x 15.0x Food Retail: 5.9x

10.0x Peakstone Food Ingredients Index GIVN, KRZ, IFF, SY1, BARN, SXT, 4914, 4958

Peakstone Beverage Products Index ABI, KO, PEP, STZ, MNST, TAP, BF.B, LWAY, 5.0x FIZZ, FARM

Peakstone Food Retail Index KR, SFM, VLGE.A, SPTN, WMK, NGVC

Peakstone Food Production Index 0.0x NESN, ULVR, KHC, MDLZ, BN, GIS, ABF, TSN, BIMBO A, HSY, JBSS3, HRL, K, CPB, WN, CAG, SJM, SAP, MKC, PPC, POST, HAIN, FLO, ARYN, FDP, JJSF, LANC, LOTB, THS

Source: Capital IQ, data as of March 2021 www.peakstone.com 3 Food and Beverage Industry Insight | March 2021 Public Trading Comparables by Sector

Selected Public Trading Comparables

($ in millions) Stock % 52-Week Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Price High Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin %

Food Ingredients T. Hasegawa Co., Ltd. $2,068 81% $87,328 $70,921 1.4x 8.8x 13.8x 18.8x 39% 16% Takasago International Corporation 2,595 95% 52,748 90,528 0.6x 7.5x 17.1x 11.9x 29% 8% International Flavors & Fragrances Inc. 137 96% 34,692 38,877 7.6x 34.5x 52.6x 23.6x 41% 21% Givaudan SA 3,616 88% 33,541 37,595 5.9x 27.1x 36.4x 37.5x 42% 21% Kerry Group plc 105 86% 18,854 20,785 3.0x 21.4x 28.6x 27.6x 100% 14% Symrise AG 101 83% 13,814 15,206 4.3x 20.5x 31.2x 38.5x 39% 21% Barry Callebaut AG 2,088 98% 11,620 12,986 1.9x 18.9x 25.9x 33.0x 15% 9% Sensient Technologies Corporation 75 92% 3,249 3,775 2.8x 16.3x 22.0x 25.4x 32% 17% Food Ingredients Median $1,103 90.1% $26,197 $29,190 2.9x 19.7x 27.2x 26.5x 39% 16%

Beverage Products The Coca-Cola Company $52 94% $224,170 $259,661 7.9x 20.2x 23.7x 24.2x 59% 35% PepsiCo, Inc. 139 94% 192,696 229,086 3.3x 17.2x 21.2x 23.1x 55% 18% Anheuser-Busch InBev SA/NV 53 89% 102,971 179,197 4.7x 13.4x 17.9x 20.8x 58% 34% Monster Beverage Corporation 89 94% 46,893 44,853 9.8x 26.3x 27.5x 33.0x 59% 37% Constellation Brands, Inc. 229 95% 44,605 55,777 6.5x 16.2x 17.8x 23.5x 52% 38% Brown-Forman Corporation 69 83% 32,198 33,751 10.1x 29.4x 31.5x 37.6x 61% 34% Molson Coors Beverage Company 48 86% 10,872 18,962 2.0x 8.5x 13.9x 13.0x 39% 22% National Beverage Corp. 47 47% 4,489 4,371 4.1x 17.1x 19.6x 25.9x 39% 22% Farmer Bros. Co. 10 85% 160 267 0.6x 11.4x NM NM 25% 4% Lifeway Foods, Inc. 7 76% 95 90 0.9x 10.4x 18.3x 0.0x 29% 8% Beverage Products Median $52 87.4% $38,401 $39,302 4.4x 16.7x 19.6x 23.5x 54% 28%

Food Retail The Kroger Co. $36 83% $27,623 $46,523 0.4x 6.9x 15.0x 12.9x 23% 4% Sprouts Farmers Market, Inc. 25 90% 3,102 4,411 0.7x 5.8x 11.3x 14.2x 37% 8% Weis Markets, Inc. 55 92% 1,516 1,475 0.4x 4.6x 9.0x 0.0x 27% 6% SpartanNash Company 19 80% 706 1,498 0.2x 5.4x 11.7x 11.0x 15% NM Natural Grocers by Vitamin Cottage, Inc. 16 85% 378 782 0.7x 6.6x 25.5x 25.3x 32% 6% Village Super Market, Inc. 24 86% 359 658 0.3x 6.0x 19.6x 0.0x 28% 3% Food Retail Median $25 85.8% $1,111 $1,487 0.4x 5.9x 13.3x 12.0x 28% 6%

Source: Capital IQ, data as of March 2021 www.peakstone.com 4 Food and Beverage Industry Insight | March 2021 Public Trading Comparables by Sector

Selected Public Trading Comparables

($ in millions) Stock % 52-Week Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Price High Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin %

Food Production Nestlé S.A. $104 93% $294,320 $326,471 3.9x 16.7x 20.0x 23.7x 49% 20% Grupo Bimbo, S.A.B. de C.V. 43 95% 194,177 303,547 0.9x 6.2x 9.3x 19.8x 54% 13% Unilever PLC 41 82% 106,462 127,233 2.8x 12.6x 14.9x 19.0x 43% 21% Mondelez International, Inc. 58 97% 82,693 100,184 3.8x 15.3x 21.2x 20.4x 39% 20% JBS S.A. 28 99% 70,236 128,094 0.5x 4.5x 6.2x 6.6x 17% 10% The Kraft Heinz Company 39 97% 47,948 73,823 2.8x 8.8x 12.5x 15.3x 35% 26% Danone S.A. 58 88% 37,976 50,295 2.1x 10.7x 13.8x 17.5x 48% 19% General Mills, Inc. 58 88% 36,312 48,302 2.6x 11.3x 13.1x 16.2x 36% 22% The Hershey Company 158 99% 32,533 36,214 4.4x 16.9x 20.1x 23.4x 45% 26% Tyson Foods, Inc. 74 95% 27,483 36,577 0.9x 7.4x 9.8x 14.2x 13% 11% Hormel Foods Corporation 48 91% 26,186 25,724 2.7x 18.6x 21.7x 27.2x 20% 14% McCormick & Company, Incorporated 88 83% 23,672 28,307 5.1x 22.4x 26.5x 30.1x 41% 21% Kellogg Company 62 85% 21,350 29,578 2.1x 12.0x 16.1x 15.7x 34% 17% Conagra Brands, Inc. 37 94% 18,507 28,057 2.4x 11.0x 13.2x 15.5x 29% 21% Associated British Foods plc 23 92% 18,431 20,598 1.5x 11.0x 21.7x 28.9x 23% 11% George Weston Limited 108 99% 16,490 40,627 0.7x 8.1x 14.0x 14.6x 31% 8% Saputo Inc. 37 96% 15,345 19,070 1.3x 13.2x 19.7x 19.2x 10% 9% Campbell Soup Company 49 91% 14,960 20,275 2.3x 10.0x 14.4x 16.6x 35% 19% The J. M. Smucker Company 124 94% 13,716 18,216 2.2x 9.0x 12.4x 15.1x 39% 24% Post Holdings, Inc. 103 96% 6,793 13,274 2.3x 12.5x 20.6x 25.5x 31% 18% Pilgrim's Pride Corporation 24 92% 5,871 7,906 0.7x 8.5x 18.4x 13.1x 7% 6% Flowers Foods, Inc. 23 93% 5,068 6,083 1.4x 10.4x 16.7x 21.2x 50% 11% The Hain Celestial Group, Inc. 42 93% 4,403 4,745 2.3x 19.3x 27.0x 30.0x 25% 11% J & J Snack Foods Corp. 157 93% 2,994 2,769 2.8x 39.5x NM 52.1x 21% 6% Fresh Del Monte Produce Inc. 28 78% 1,330 2,121 0.5x 8.0x 25.7x 17.1x 7% 4% ARYZTA AG 1 92% 1,037 1,977 0.7x 21.4x NM NM 12% 2% Food Production Median $49 92.9% $19,929 $28,182 2.2x 11.1x 16.4x 19.0x 33% 15%

Source: Capital IQ, data as of March 2021 www.peakstone.com 5 Food and Beverage Industry Insight | March 2021 Selected U.S. F&B Industry Transactions

Selected Food and Beverage Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Lindsay Goldberg LLC entered into a definitive agreement to acquire ARYZTA North 03/12/2021 ARYZTA North America $850 Lindsay Goldberg LLC - America from ARYZTA AG (SWX:ARYN) for enterprise value of $850 million on March 12, 2021.

Controlled Environment AppHarvest, Inc. 03/01/2021 Agriculture (CEA) Facility and $125 - AppHarvest, Inc. (NasdaqGS:APPH) The Property in Morehead

Verano Holdings Corp. (CNSX:VRNO) acquired Terravida Holistic Centers, LLC and Terravida Holistic Centers, Verano Holdings Corp. 02/26/2021 $131 - GVB Holding Group, LLC for approximately $130 million on February 26, 2021. LLC/GVB Holding Group, LLC (CNSX:VRNO) According to The Philadelphia Inquirer the transaction valued at about $135 million.

One Rock Capital Partners, LLC and Metropoulos & Co. entered into a definitive Nestlé Waters North America One Rock Capital Partners, 02/16/2021 $4,300 - agreement to acquire Nestlé Waters North America Inc. from Nestlé S.A. Inc. LLC; Metropoulos & Co. (SWX:NESN) for $4.3 billion on February 16, 2021.

Hormel Foods Corporation (NYSE:HRL) entered into a definitive agreement to Nuts Business of The Kraft Hormel Foods Corporation 02/11/2021 $3,350 12.5x acquire nuts business of The Kraft Heinz Company (NasdaqGS:KHC) for $3.4 billion Heinz Company (NYSE:HRL) on February 10, 2021. The purchase price is subject to customary adjustments.

MGP Ingredients, Inc. (NasdaqGS:MGPI) entered into a definitive agreement to MGP Ingredients, Inc. 01/25/2021 Luxco, Inc. $504 18.0x acquire Luxco, Inc. from lux family for approximately $500 million on January 22, (NasdaqGS:MGPI) 2021.

Portfolio of Global American International Group, Inc. (NYSE:AIG) acquired an unknown stake in a Agricultural Holdings of American International 01/16/2021 $1,000 - Portfolio of Global Agricultural Holdings from Harvard Management Company, Inc. Harvard University's Group, Inc. (NYSE:AIG) for $1 billion on October 8, 2020. Endowment

Source: Capital IQ, data as of March 2021 www.peakstone.com 6 Food and Beverage Industry Insight | March 2021 Selected U.S. F&B Industry Transactions (continued)

Selected Food and Beverage Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Mondelez International, Inc. (NasdaqGS:MDLZ) acquired remaining 93% stake in HU Mondelez International, Inc. 01/05/2021 Hu Master Holdings, LLC $231 - Master Holdings, LLC on January 4, 2021. Following a competitive bid for Hu, (NasdaqGS:MDLZ) Mondelez successfully acquired 100% ownership of the brand.

Central Garden & Pet Company (NasdaqGS:CENT) signed an agreement to acquire Central Garden & Pet all outstanding shares of Green Garden Products LLC from Freeman Spogli 12/31/2020 Green Garden Products LLC $532 - Company (NasdaqGS:CENT) Management Co., L.P. and other shareholders for approximately $530 million on December 30, 2020.

US Based Chile Pepper Olam Americas, Inc. agreed to acquire US based chile pepper business from Mizkan 12/21/2020 Business of Mizkan America, $109 Olam Americas, Inc. - America, Inc. for approximately $110 million on December 21, 2020. The purchase Inc price is subject to net working capital adjustment at closing.

Whole Earth Brands, Inc. (NasdaqCM:FREE) entered into a definitive agreement to Whole Earth Brands, Inc. 12/17/2020 Wholesome Sweeteners, Inc. $241 - acquire Wholesome Sweeteners, Inc. from Edward Billington & Son Ltd. and others (NasdaqCM:FREE) for approximately $240 million on December 17, 2020.

Murphy USA Inc. Murphy USA Inc. (NYSE:MUSA) entered into an agreement to acquire Quick Chek 12/14/2020 QuickChek Corporation $645 - (NYSE:MUSA) Corporation from family for approximately $650 million on December 12, 2020.

Ventures Acquisition LLC acquired a 22.674% stake in Piedmont Coca-Cola Bottling Piedmont Coca-Cola Bottling 12/10/2020 $100 Ventures Acquisition LLC - Partnership from Carolina Coca-Cola Bottling Investments, Inc. for $100 million on Partnership December 9, 2020. The consideration is paid in cash. The remaining 77.

McCormick & Company, Incorporated (NYSE:MKC) entered into an agreement to The Cholula Food Company McCormick & Company, 11/24/2020 $800 - acquire The Cholula Food Company Inc. from L Catterton Partners for $800 million Inc. Incorporated (NYSE:MKC) on November 24, 2020.

Source: Capital IQ, data as of March 2021 www.peakstone.com 7 Food and Beverage Industry Insight | March 2021 Selected U.S. F&B Industry Transactions (continued)

Selected Food and Beverage Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Heron Holding Corporation entered into a definitive agreement to acquire Truco 11/12/2020 Truco Enterprises, LP $480 Heron Holding Corporation - Enterprises, LP from Insignia Capital Group, L.P. and Constitution Capital Partners, LLC for $480 million on November 11, 2020.

Amsterdam Commodities N.V. (ENXTAM:ACOMO) (“Acomo”) signed an agreement The Organic Corporation Amsterdam Commodities to acquire The Organic Corporation B.V. and Tradin Organics USA LLC from SunOpta 11/10/2020 $390 10.0x B.V./Tradin Organics USA LLC N.V. (ENXTAM:ACOMO) Inc. (TSX:SOY) and COÖPERATIE SUNOPTA U.A for €330 million on November 9, 2020.

American Italian Pasta Company entered into asset purchase and sale agreement to Certain Assets of its Dry Pasta American Italian Pasta 11/05/2020 $243 - acquire Certain Assets of its Dry Pasta and Noodles Business in USA from Riviana and Noodles Business in USA Company Foods Inc. for approximately $240 million on November 5, 2020.

GoBrands, Inc. entered into a definitive agreement to acquire Beverages & More, 11/05/2020 Beverages & More, Inc. $350 GoBrands, Inc. - Inc. from TowerBrook Capital Partners L.P. for $350 million on November 5, 2020. The transaction includes BevMo and its 161 stores in three Western states.

The Scotts Miracle-Gro Company (NYSE:SMG) signed a non-binding letter-of-intent The Scotts Miracle-Gro 11/04/2020 Bonnie Plants, Inc. $101 - to acquire 50% Bonnie Plants, Inc. from Alabama Farmers Cooperative, Inc. on Company (NYSE:SMG) November 4, 2020.

Aphria Inc. (TSX:APHA) entered into an agreement of merger and acquisition to SweetWater Brewing 11/04/2020 $366 Aphria Inc. (TSX:APHA) 16.3x acquire SweetWater Brewing Company, LLC from TSG Consumer Partners LLC and Company, Inc. others for approximately $370 million on November 4, 2020.

Barilla America, Inc. agreed to acquire Dry pasta business from Catelli Foods Dry pasta business of Catelli 10/28/2020 $124 Barilla America, Inc. - Corporation and Riviana Foods Inc. for approximately CAD 170 million on October Foods Corporation 28, 2020. Deal includes namesake brand, Lancia, Catelli and splendor pasta lines.

Source: Capital IQ, data as of March 2021 www.peakstone.com 8 Food and Beverage Industry Insight | March 2021 Selected U.S. F&B Industry Transactions (continued)

Selected Food and Beverage Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Crisco® Oils and Shortening B&G Foods North America, Inc. and B&G Foods Canada, ULC entered into a B&G Foods North America, 10/26/2020 Business of The J. M. Smucker $550 8.1x definitive agreement to acquire Crisco® oils and shortening business from The J. M. Inc.; B&G Foods Canada, ULC Company Smucker Company (NYSE:SJM) for approximately $550 million on October 26, 2020.

Groupe Lactalis S.A. entered into a definitive agreement to acquire Natural Cheese Natural Cheese Business of 09/15/2020 $3,200 Groupe Lactalis S.A. 12.0x Business from The Kraft Heinz Company (NasdaqGS:KHC) for $3.2 billion on The Kraft Heinz Company September 15, 2020.

Universal Corporation Universal Corporation (NYSE:UVV) signed a definitive agreement to acquire Silva 09/08/2020 Silva International, Inc. $170 - (NYSE:UVV) International, Inc.

Paul Masson Grande Amber Sazerac Company, Inc. signed an agreement to acquire Paul Masson Grande Amber 06/25/2020 Brandy Brand of Constellation $255 Sazerac Company, Inc. - Brandy Brand from Constellation Brands, Inc. (NYSE:STZ) for approximately $260 Brands, Inc. million on June 25, 2020.

Capitol Peak Partners, LLC and KKR & Co. Inc. (NYSE:KKR) agreed to acquire nearly Nearly All of the Assets of KKR & Co. Inc. (NYSE:KKR); 06/16/2020 $340 - all of the assets of Borden Dairy Company for approximately $340 million on June Borden Dairy Company Capitol Peak Partners, LLC 16, 2020.

Buitoni Food Company entered into a definitive agreement to acquire North North American Buitoni® 06/09/2020 $115 Buitoni Food Company - American Buitoni® business of Nestlé USA, Inc., for approximately $120 million on business of Nestlé USA, Inc. June 8, 2020. The transaction also includes acquisition of a 0.

PepsiCo, Inc. (NasdaqGS:PEP) entered into an agreement to acquire Rockstar, Inc. 03/11/2020 Rockstar, Inc. $4,700 PepsiCo, Inc. (NasdaqGS:PEP) - on March 11, 2020. The consideration includes cash payment of approximately $3.

Source: Capital IQ, data as of March 2021 www.peakstone.com 9 Food and Beverage Industry Insight | March 2021 Peakstone Momentum

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