Independence Day Research Summary July 2021 TABLE OF CONTENTS

▪ Summary

▪ Holiday Overview

▪ Holiday Trends

▪ Holiday Survey Findings

▪ Expert Interviews

▪ Takeaways

3 Summary “O Say Can You See” SUMMARY

O Say Can You See!

Independence day marks the birth of our nation and commemorates the ratification of the Declaration of Independence. This year especially, we see Independence Day as an opportunity to celebrate our freedoms as Americans and recognize the resilience and innovation that characterized our nation.

Millions of Americans gather each year to celebrate the July 4th holiday; most of us enjoy barbeques and watch fireworks with family and friends. Most cities and towns have parades and in all 50 states, the holiday is the marquee date on the summer calendar.

Access Holdings research team took the time to analyze the historic trends around this holiday and learn more about our own Access family traditions1. We deployed our survey capabilities and conducted expert interviews to learn more about consumption trends, firework regulations, grilling expertise, and more!

We're excited to share our insights into how Americans choose to celebrate Independence Day. (Hint: it's America's top beer-drinking holiday!)

1. The Access family is located across 19 states and is comprised of over 3,000 members 5 Holiday Overview “Stars and Stripes” INDEPENDENCE DAY HISTORY AND TIMELINE

▪ On July 4, 1776, the Continental Congress approved the final wording of the Declaration of Independence. On this date, it was completed, and the handwritten copy was ultimately signed in August.

Timeline1

June 12-27, 1776 July 1-4, 1776 Committee appointed Fair copy of Declares to draft a Declaration committee draft is Congress independence as of Independence Thomas read in Congress debates and revises British fleet and army Jefferson’s draft is the declaration arrive reviewed by committee June 11, 1776 June 28, 1776 July 2, 1776

July 9, 1776 July 6, 1776 Signing of the First public reading of Congress adopts the declaration Washington says declaration in Pennsylvania Evening Post declaration of declaration to be Philadelphia prints first newspaper independence read before edition of declaration American army August 2, 1776 July 8, 1776 July 4, 1776

1. US History 7 THE AMERICAN FLAG

The American Flag has stood as a symbol of justice and freedom in the United States for more than two hundred and twenty-five years. Below we've broken down the history of our flag, and its meaning.

History Today

Contrary to popular belief, the origin of the first American Today the flag consists of 13 horizontal stripes, seven red flag is unknown. However, some historians believe it was alternating with six white. The stripes represent the original 13 designed by New Jersey Congressman Francis Hopkinson Colonies and the stars represent the 50 states of the Union. and sewn by Philadelphia seamstress Betsy Ross. There are a few locations where the U.S. flag is flown 24 hours a Between 1777 and 1960 Congress passed several acts that day, by either presidential proclamation or by law, including two changed the shape, design and arrangement of the flag and in Baltimore, Maryland our home state: allowed stars and stripes to be added to reflect the ▪ Fort McHenry admission of each new state. ▪ Flag House

Did you know? Each color on the flag has a significant meaning: ▪ On June 14, 1777, the Continental Congress passed an act establishing an official flag for the new nation. The Red signifies hardiness and valor resolution stated: “Resolved, that the flag of the United States be thirteen stripes, alternate red and white; that White signifies purity and innocence the union be thirteen stars, white in a blue field, representing a new constellation.” On Aug. 3, 1949, President Harry S. Truman officially declared June 14 as Blue signifies vigilance, perseverance and justice Flag Day1.

1. PBS 8 INDEPENDENCE DAY IN BALTIMORE

A deeper dive into Baltimore’s history surrounding Independence day and local traditions!

History

▪ Baltimore is a city rich in history, with a prominent role in the growth of our nation. Most notably, Baltimore is the birthplace of the Star-Spangled Banner, and Mount Vernon’s Washington Monument shares a birthday with the United States – it was first opened on July 4, 1815, exactly 39 years after the Declaration of Independence was signed.

▪ Maryland was one of the thirteen original colonies, coined “The Free State”, and William Paca, Maryland’s third governor was a signer of the Declaration of Independence. The Maryland State House, located in Annapolis, MD, was the nation’s first peace time capitol from 1783 to 1784 and is the oldest state capitol building still in use in the nation!

Traditions and Fun Facts

▪ Each year Baltimore’s Inner Harbor hosts a light show, which has been a tradition since 1980! During the light show you can climb on board one of Baltimore’s oldest ships, the USS Constellation to attend their annual Independence Day Deck Party.

▪ Just north of Baltimore, Towson hosts a 4th of July Parade that dates back over 120 years and focuses on honoring American veterans.

▪ Independence day is the earnest beginning of crab season, but also the peak! According to the Baltimore Sun, it’s the biggest weekend of the year for crab sales!

▪ Similar to many states in the Northeast, Maryland does not allow the sale or use of consumer fireworks.

1. The Baltimore Sun 2. The Baltimore Sun 9 THE SPARKS OF INDEPENDENCE DAY – FUN FACTS1

The biggest celebration is There are 33 places in the the Macy's 4th of July United States with the Fireworks show, which word “liberty” in their takes over 8,000 hours to names. prepare!

Descendants of people According to Live Science, who signed the Declaration it was seen as unpatriotic of Independence tap the if you kept your business bell, located in open on Independence Philadelphia, Pennsylvania, Day before the Civil War. at 2 p.m. eastern time every 4th of July.

The Liberty Bell rings 13 Americans spend over $1 times every Independence billion on fireworks every Day to honor the 13 year. original states.

1. Good Housekeeping 10 GROWTH OF A NATION

There were an estimated 2.5 million people living in the new nation in July of 17761. Below is a breakdown if the population of the original 13 colonies and their representation Then & Now

Signers Estimated Population* 116th Congress Population Estimates Pennsylvania 9 434,373 18 12,801,989 Virginia 7 747,610 11 8,535,519 Massachusetts 5 378,787 9 6,892,503 New Jersey 5 184,139 12 8,882,190 Connecticut 4 237,946 5 3,565,287 Maryland 4 319,728 8 6,045,860 New York 4 340,210 27 19,453,561 South Carolina 4 249,073 7 5,148,714 Delaware 3 59,094 1 973,764 Georgia 3 82,548 14 10,617,423 New Hampshire 3 141,885 2 1,359,711 North Carolina 3 393,751 13 10,488,084 Rhode Island 2 68,825 2 1,059,361 TOTAL 56 3,637,969 129 95,823,966

*The United States did not conduct its first official census until 1790 –these estimates were cobbled together from a variety of sources 1.US Census Bureau 11 INDEPENDENCE DAY LANDMARKS

Across the United States there are hundreds of historic landmarks that pay tribute to our country’s founding. We surveyed our team to see which monuments are the most visited during this holiday!

Most Visited Independence Day Landmarks by the ▪ You can’t honor the fourth of July without a tribute to our Access Team Nations capitol. During the fourth of July, Washington DC sees an average of 700,00 visitors to the national mall for their fireworks display2 4% 4% 7% ▪ The National Park Service records 553,000 visitors across 3 35% the national parks during the month of July 9% 10% ▪ The longest Independence Day celebration is held by the 30% city of Philadelphia, with a 16-day long tradition! During 14% 2020 they even offered virtual tours of Independence hall.

▪ The oldest Fourth of July celebration in the United States 27% 27% 33% is held in Bristol, Rhode Island. This celebration is more than 234 years old!

▪ The battle at Fort McHenry was a turning point in the war of 1812. Francis Scott Key was inspired by the battle to write our nations anthem, The Star-Spangled Banner.

Fort McHenry The Liberty Bell

The National Archives Independence Hall

1. Access Holdings Proprietary Research Data 2. The District 3. National Park Service 12 THE BUSINESS OF INDEPENDENCE DAY

MACRO MICRO

▪ ▪ Economy: COVID has severely affected supply chains across the Family: 61% of Americans choose to spend time with their friends and world. Due to this disruption, and consumer fireworks sales family at cookouts and BBQ’s. The second most popular activity was doubling in 2020, the country is experiencing a severe fireworks attending local fireworks and community celebrations. The least popular shortage in 2021. activity is attending a parade. ▪ ▪ Over 95% of all fireworks in the United States are imported Only 83% of Americans reported celebrating Independence Day. from China ▪ Food: According to the National Retail Federation, the average person ▪ Travel - AAA anticipates over 48 million Americans will travel over spends $80.54 on food items for this holiday. 50 miles to celebrate Independence Day this year, which is the ▪ Americans will spend over $727 million just on beef! second highest holiday travel volume on record (2019 being first, ▪ Household Expenditure: The demographic that spends the most money having 49 million) during this holiday are males between 35-44 years of age. The average ▪ Food – July 4th is America’s top beer drinking holiday. The beer spend for a male during Independence day is $87.3 compared to the industry brings in over $1 billion in sales during this holiday. average female spend of $74. ▪ 150 million hot dogs are consumed each Independence Day ▪ Shopping: Each year the National Retail Federation reports 29% of ▪ Entertainment: The Macy’s Fireworks Display is estimated to cost Americans go shopping for new Independence Day paraphernalia. The approximately $6 million each year. Each year Macy’s launches over most common being the American Flag, to the least common being 65,000 firework shells into the air! bumper stickers. ▪ ▪ New York City Fireworks – Over 3 million people go to New 58% of women report having Independence day themed clothing, York every year to watch the Macy’s fireworks display on the while 47% of men report the same. Hudson. ▪ Flag Sales– Annually, Americans spend $6.7 million dollars on flags.

1. APA 2. WalletHub 13 Holiday Trends “The Sparklers” FIREWORKS: HISTORY AND LEGAL PARAMETERS

You can't think of an Independence Day celebration without fireworks! History1 Legal Framework2

▪ Before the Declaration of Independence was even ▪ The American Pyrotechnics Association “APA” was signed, John Adams envisioned fireworks as a part of founded in 1948 and has become the voice of the the festivities. In a letter to Abigail Adams on July 3, fireworks industry since! 1776, he wrote that the occasion should be commemorated “with Pomp and Parade, and ▪ The Consumer Product Safety Commission and US Illuminations from one End of this Continent to the Customs are responsible for intercepting imported other from this Time forward forever more.” fireworks that do not comply and issuing recalls on unacceptable consumer fireworks that are found to have ▪ The first commemorative Independence Day fireworks "slipped through" were set off on July 4, 1777. The Pennsylvania Evening Post wrote that in Philadelphia, “The evening was ▪ Bureau of Alcohol, Tobacco, Firearms and Explosives closed with the ring of bells, and at night there was a (ATF) is the federal agency that regulates explosives, grand exhibition of fireworks (which began and including Display Fireworks in the US (like those at concluded with thirteen rockets) on the Commons, and Disney) but not consumer fireworks! the city was beautifully illuminated.” The paper noted that “Everything was conducted with the greatest order ▪ The federal law is only the minimum standard however, and decorum, and the face of joy and gladness was and each state is free to enact laws that are more universal.” stringent if they so choose.

1. Slate 2. Wikipedia 15 A STATES RIGHTS ISSUE: FIREWORKS

Firework rules and regulations vary by state, and even time of the year! The governing body over fireworks, the APA (American Pyrotechnics Association), identified that in 2020 over 385.8 Million lbs. of fireworks were utilized in the United States1 !

Did you know, Massachusetts is the States that allow the sale of consumer States that do not allow the sale of fireworks consumer fireworks only state that has completely ban Consumer Fireworks are called “Class C” or 1.3G fireworks, and are categorized based on their size, powder the sale of consumer fireworks, content, and chemical restrictions. Display fireworks are “Class B” or 1.4 G and are not sold commercially. including novelties and sparklers1 !

1. APA 16 HOLIDAY TRENDS: FIREWORK SALES

Fireworks Industry Revenue Breakdown ($ in Millions)1

Consumer Fireworks Display Fireworks 1993 93

1375 1305 1238 1170 1095 375 1027 360 967 965 990 353 345 340 1900 318 320 328 332

945 1000 825 885 649 645 662 695 755

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

▪ Americans spent $93 million on display fireworks and $1900 million on consumer fireworks in 2020, with Independence Day being the most popular occasion for fireworks all year.2

▪ On 4th of July 2020, due to the broad cancellation of parades, fireworks and other public festivities and celebrations, the sales of display fireworks was materially impacted. However, consumer fireworks saw an increase in sales due to people celebrating in their backyards and neighborhood with family and friends.

▪ Demand for DIY firework shows was so high in 2020 that Phantom Fireworks, estimates that approximately 40% of its customers bought for the first time.3

1. Access Holdings Proprietary Survey Data (2020) (n=516) 3. Fire Department of New York 17 2. Fox News HOLIDAY TRENDS: FIREWORK vs GRILLING ACCIDENTS

Firework Injuries by Age Group - June 21st to July 21st1

0-4 5-9 10-14 15-19 20-24 25-44 45-64 65+ % of Total Injuries in a year

10000 75.0% 8700 73.0% 8000 7400 7600 8000 7000 7300 70.0% 5600 6000 68.5% 67.4% 66.7% 67.2% 65.0% 4000 64.9%

61.5% 60.0% 2000

0 55.0% 2013 2014 2015 2016 2017 2018 2019

Fireworks ▪ In 2018, approximately 60% of fireworks-related injuries happened within the two weeks before and after the holiday, according to the Consumer Product Safety Commission.

▪ According to the National Fire Protection Association, fireworks started an estimated 19,500 fires in 2018, including 1,900 structure fires, 500 vehicle fires, and 17,100 outside.

▪ The National Fire Protection Association says two of every five structure; fires are blamed on fireworks and cause approximately $105 million in direct property damage.

Grilling ▪ The most common insurance claim on July 4th are caused by cooking fires.

▪ Every year, fire departments respond to nearly 10,000 home fires involving grills, hibachis or barbecues.

1. CPSC 18 WHO MAKES THE DOGS?

The top suppliers of hot dogs in the US are Tyson Foods Inc. and Smithfield Foods Inc.1

▪ Founded in 1935, they operate under the brands of Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Aidells Sausage Company and State Fair. ▪ Headquartered in Springdale, AR, the vertically integrated company raises, slaughters and processes chicken, beef and pork products for consumers across 117 countries, although most of its sales are generated domestically. ▪ Tyson has more than 122,000 workers worldwide, with 117,000 of those based in the United States. Products are sold through four major segments: chicken, beef, pork and prepared foods. Industry-relevant sales come from the company's prepared foods segment; although outside of hot dogs and sausages, this segment also includes other products, such as cured deli meats and bacon. ▪ Tyson now commands a 42.5% share of the Hot Dog and Sausage Production industry with leading positions in all major product segments. Tyson Foods Inc. ▪ Generated $ 6.9 Billion revenue in 2019-20.

▪ Founded in 1981, they operate under the brands of Smithfield, Eckrich, Farmland, Armour Pepperoni, Carando and John Morell. ▪ Although headquartered in Smithfield, VA, Smithfield has operations in Mexico, China, and a handful of European countries. The company employs more than 54,000 people worldwide. In September 2013, Chinese meat processor WH Group Limited (WH Group) completed its purchase of Smithfield for $4.7 billion, making it one of the largest takeovers of a US company by a Chinese company. Since the purchase, Smithfield is no longer listed on the New York Stock Exchange, and after an August 2014 initial public offering, WH Group is now listed on the Hong Kong Stock Exchange. ▪ Smithfield commands 12.9% of the market share of Hot Dog and Sausage production industry. ▪ Generated $ 2.1 Billion revenue in 2019-20. Smithfield Foods Inc.

▪ Kraft Heinz: Market Share of 3.7%

▪ Conagra: Market Share of 3.1% Other Suppliers

1. IbisWorld 19 HOLIDAY TRENDS: HOT DOG EATING CONTEST

Belts Name Year(s) 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2016, 2017, 13 Joey Chestnut 2018, 2019, 2020 7 Miki Sudo 2014, 2015, 2016, 2017, 2018, 2019, 2020

6 Takeru Kobayashi 2001, 2002, 2003, 2004, 2005, 2006

3 Sonya Thomas 2011, 2012, 2013

3 Jay Green 1988, 1989, 1990

3 Mike DeVito 1990, 1993, 1994

2 Hirofumi Nakajima 1997, 1998

2 Ed Krachie 1995, 1996

2 Frankie Dellarosa 1991, 1992

▪ The Nathan's Hot Dog Eating Contest is an annual American hot dog competitive eating competition. It is held each year on Independence Day at Nathan's Famous Corporation's original restaurant at the corner of Surf and Stillwell Avenues in Coney Island, a neighborhood of Brooklyn, New York City.1 ▪ The first ever Nathan’s hot dog eating contest was on July 4, 1926. Rumor has it that three men arguing over who was the most patriotic decided to settle the argument with a hot dog eating contest.2 ▪ The defending men's champion is Joey Chestnut, who ate 75 hot dogs in the 2020 contest. ▪ The defending women's champion is Miki Sudo, who ate 48.5 hot dogs in the same contest. ▪ Major League Eating (MLE), sanctioned by the International Federation of Competitive Eating (IFOCE), has sanctioned the event since 1997. As of current scenario, only entrants currently under contract by MLE can compete in the contest. ▪ The winner of the men's competition is given possession of the coveted international mustard-yellow belt.

1.Wikipedia 2. A slice of Brooklyn 20 INDEPENDENCE DAY BEVERAGE STATISTICS1

Independence Day beverage sales moving beyond beer.

Beer ▪ Consumers spent nearly $800 Million on beer on July 4, 2018. It represents a decline of 1.6% from the same week ending July 7, 2018, a year before. ▪ Domestic Premium beer sold -5.9% fewer dollars than the previous year, but the 4th of July week still accounted for 2.9% of dollar sales for the year, making it the largest contributing week of the year. ▪ Craft beer also struggled in 2018 during the holiday week with dollars sales down 2.5% compared with the previous year.

Flavored Malt Beverages ▪ Flavored Malt Beverages (FMB) / coolers saw dollar sales grow 12.1% in 2018 compared with the previous year. ▪ Additionally, for the segment, the one week of 4th of July contributed more than 4% of FMB/Cooler dollar sales for the year. Hard Seltzers ▪ Hard Seltzers had sizeable growth to the FMB/Cooler category during the week of 4th of July in 2018. ▪ Hard Seltzer dollar sales were $16.1 million, an increase of 150% (300% for variety hard seltzer packs); however, after removing hard seltzers from FMB/Coolers, dollar sales for the week of 4th of July, the category would show a 9.5% decline.

Hard Ciders ▪ Hard ciders performed well in the week leading up to 4th of July in 2018. ▪ Hard cider dollar sales were $9.4 M, up 8.5% for the week of 4th of July, driven largely by the influx of rosé cider offerings.

Wine ▪ Canned wine dollar sales during the week of 4th of July in 2018 were $2.7 million, growing 56.5% in 2018 compared with the previous year. ▪ Dollar sales during that week alone accounted for nearly 4% of 2018’s total canned wine dollar sales.

1. Beverage Industry 21 NOTABLE PARADES AND PARTIES Parades and firework celebrations bring communities from across the country together1

▪ Bristol’s annual Fourth of July ▪ Ancient and Horribles Parade, ▪ Macy’s fireworks is the largest ▪ Breckenridge's Independence Day celebration, which takes over the founded in 1926, is a nationally fireworks event in the country. parade kicks off with a day full of town for the three weeks leading up known Fourth of July parade on festivities. to Independence Day, is the oldest Route 44 (Putnam Pike) in the village 2 3 ▪ The entire Macy’s Fourth of July shindig of its kind in America. of Chepachet, RI. Fireworks uses 55 times more ▪ Visitors get to check off all the fireworks than the average show in Fourth of July activities: an arts ▪It even predates the Fourth of July ▪ The oldest known Ancient and the United States.4 festival, a bike race, live music, a being named a national holiday, Horribles Parade in New England performance by the National which did not happen until 1870. occurred on July 4, 1851, in Lowell, ▪ In 2012, analysts estimated the Repertory Orchestra and ending Massachusetts. 25-minute display to cost $6 million. with a fireworks display, which starts ▪ The very first event took place in at 9:45 p.m. 1785. Bristol, Chepachet, New York City, Breckenridge, Rhode Island Rhode Island New York Colorado

▪ The National Independence Day ▪ Philadelphia celebrates the Fourth ▪ The Independence Day Parade is Parade held in Washington, D.C. of July by lighting up the streets, the the oldest running event in skies and the stages across the city Arlington. ▪ It traditionally takes place on and region. Constitution Avenue and is ▪ Started in 1965 by Dottie Lynn and sponsored and co-produced by ▪ From the start of the annual Wawa Church Women United, it was Music Celebrations International Welcome America festival (the City composed of youth on red, white and the National Park Service. of Philadelphia’s official and blue-decorated bicycles. Independence Day fest) to the ▪ This year's parade has been incredible fireworks finale over the ▪The Knights of Columbus hold the cancelled due to logistics and Philadelphia Museum of Art.5 record for having been in all 50 planning limitations. parades.6 Washington, Philadelphia, Arlington, D.C. Pennsylvania Texas

1. TravelandLeisure 3. Wikipedia 5. VisitPhilly 2. Mental Floss 4. NYC Data 6. Arligton 22 Holiday Survey Findings “The Parade” HOLIDAY SURVEY FINDINGS OVERVIEW

Following the excitement around our Thanksgiving Survey, we deployed an Independence Day survey to our team1! We were eager to learn more about how our team celebrates this historic holiday, and have outlined some facts throughout.

Summary

▪ We shared our Independence Day survey across our Access family to explore traditions and celebration plans, parades attended, BBQ secrets and what makes their Independence Day unique and special.

▪ Source Statistics: ▪ Distributed to ~1,500 Access family members across 48 states ▪ Received over 500 responses

Categories Evaluated

Consumption Traditions Activities

▪ Hot dogs vs. Hamburgers ▪ Family traditions ▪ Parade Attendance ▪ Favorite themed desserts ▪ Travel ▪ Fireworks

1. The Access family is located across 19 states and is comprised of over 3,000 members 24 ACCESS SURVEY FINDINGS

The following represents responses to questions about what Independence Day means to the Access Family as well as some fireworks traditions!

What Independence Day Means To You? Fireworks Purchased

3%

Deep Fry Yes 50% No 47% 50% 47% Sometimes 3% White Meat

Oven Roast

Where Access Purchases Fireworks

4% Dark Meat

36% 64% In-State 64% Out Of State 36% Online 4%

25 ACCESS SURVEY FINDINGS The following represents responses to questions about food preferences on Independence Day!

Holiday Dessert Preferred Hot Dog Brand Hot Dogs Or Hamburgers

Fruit 12% Other Salad 26% Nathans Other Berry Pie

Jell-O Ballpark Hebrew National 62% Cake Oscar Meyer

Cake Nathans Hot Dogs 26% 29% 26%

Fruit Salad Hebrew National Hamburgers 16% 16% 62%

Berry Pie Oscar Meyer Other 9% 11% 12%

Jell-O Ballpark 12% 26% Only 13% of our team tunes into Other Other Nathans Hot Dog Eating Contest! 36% 18%

26 ACCESS SURVEY FINDINGS The following represents responses to questions regarding travel plans and traditions on Independence Day!

Independence Day vs. Fourth of July Travel Time Celebration Party Size

6% 10% 13% 17% 9% 26%

13% 43% 38% 83% 68% 62%

Fourth of July One Hour or Less 1-3 People 83% 68% 13%

Independence Day 1-2 Hours 3-7 People 17% 13% 38%

3+ Hours 7+ People 9% 43%

Other Other 10% 6%

27 Expert Interviews “Leaders of the Band” EXPERT INTERVIEW PROFILES

Former VP of Coors Family of Brands

Former VP and GM of Kingsford Charcoal

Professor of History at the University of New Hampshire

Executive Director at the American Pyrotechnics Association

29 EXPERT INTERVIEWS

Former VP of Coors Family of Brands

Beer and Beverage Expert

What are the trends in the beer industry around Independence Day? Summer season is peak season for beer consumption, and Independence Day offers beer companies great sponsorship and marketing opportunities. July 4th marks the “beginning of the second half of the summer” and is a time for companies to re- engage with consumers. Marketing beer for this holiday is universal, many times you can brand beer bottles and cans with American flags, red white and blue labels, and other patriotic iconography. Tapping into people’s emotions through promotions and marketing helps increase sales.

What are sales like around Independence Day? July 4th is the industries largest holiday, even bigger than the Super Bowl! In fact, every single weekend in the summer the industry sees higher sales than during the Super Bowl. This is in part due to consumers taking three-to-four-day vacations and drinking and gathering more during the warmer months.

How did COVID impact sales around Independence Day? 2020 sales decreased significantly because of the restrictions imposed. Bars, baseball games, stadiums and concert venues account for a large portion of sales. With all of that being closed, the industry took a big hit, and is still recovering.

30 EXPERT INTERVIEWS

Former VP and GM of Kingsford Charcoal

Barbeque Expert

What is the significance of Independence Day in the Charcoal industry? July 4th marks the peak of “charcoal season”, which typically runs from May to September. Approximately 70-75% of charcoal sales are made during the summer months with peak sales occurring during Memorial Day, July 4th, Fathers Day and Labor Day. Charcoal brands start planning and production for the season in January.

What are the biggest trends in the Charcoal industry? Many consumers are making the switch to wood pellets, instead of the traditional gas grill. This is due mostly in part by the millennial generation experimenting with new flavors while cooking. Wood pellets have a wider variety of flavors and provide a more experimental experience for young grillers! Social media has also highlighted this trend by increasing the ability to share recipes to a broader network.

Did COVID have any effect on the Charcoal Industry? Historically the Charcoal industry has been flat and wasn’t a large growth category. However, during COVID consumers were forced to eat more at home, and subsequently invested in cooking supplies like charcoal. Charcoal sales increased by 30% in 2020!

How does the weather affect sales? Bad weather can have a severe impact on a seller's entire season. Most retails can’t adjust inventory levels quick enough to account for dips in sales and will have to pivot and try and sell during off peak holidays. This industry has recently included Father’s Day as a peak holiday to try and make up for rainy Memorial Day Weekends!

31 EXPERT INTERVIEWS

Professor of History at the University of New Hampshire

Professor of History of the American Revolution

In your opinion, what is the meaning of Independence Day? Independence Day really has two meanings; the first being the quest for home rule and the freedom from external power. The second meaning is tied to our democratic rights and equality. One of the most famous statements in the Declaration of Independence, and one that has been changed over the years, is that all men are created equal.

How has the meaning of Independence Day changed over time? The idea that “all men are created equal” has evolved over time. There have been many historic movements that utilize this part of the Declaration of Independence to fight for freedom. It began with slaves chanting these words in Massachusetts, the first state to abolish slavery, to the Black Lives Matter movement, and the LGBTQ movement. This part of the Declaration has been iterated many times, most notably to include women.

What did the revolution mean outside the boarders or the United States? Our Declaration of Independence has become a model document for other countries. Since 1776 the Declaration has been used as a template by over 100 countries, including most notably Haiti, Bulgaria, Finland, and Ireland.

What is your favorite fun fact for Independence Day? The actual vote for Independence happened on July 2nd, but the document wasn’t published until July 4th because the founders wanted it to coincide with the “light show”, aka fireworks display!

32 EXPERT INTERVIEWS

Executive Director at the American Pyrotechnics Association

Pyrotechnics Expert

What are the laws and regulations surrounding the fireworks industry? Almost all fireworks are imported from China and have to go through a strict regulatory process to be imported into the United States. Every single firework has to be approved by the Department of Transportation due to the chemical composition and makeup of the product! The APA has helped streamline the process by producing the APA Standards 87-1 which certify products in China before they are offered for import.

How does the weather impact your industry? Weather plays a huge role in the sale of fireworks displays; the industry heavily tracks weather for the summer holidays. One of the largest factors as you approach summer holidays are droughts. State laws and regulations can prohibit the sale and use of fireworks in places like California and Arizona if its too dry!

How has COVID impacted your industry? Consumer fireworks sales nearly doubled in 2020 with revenue increasing from $1.bn in 2019 to $1.9 bn in 2020. This is primarily because of the previous restrictions on gathering, which encouraged consumers to host their own personal displays on July 4th. Due to the increased demand, the industry is now experiencing a fireworks shortage in 2021, and many suppliers are having to dip into reserve inventory. Additionally, due to increased gas and oil prices, the cost of importing fireworks from China has nearly doubled, resulting in price increases across the entire industry.

33 Takeaways “The Grand Finale” TAKEAWAYS

The Grand Finale!

▪ On Independence Day, Americans will enjoy 150 million hot dogs, enough to stretch from D.C. to L.A. more than five times.

Did You ▪ More than 60% of fireworks-related injuries happened within the two weeks before and after the holiday in 2018, according to the Consumer Product Safety Commission. Know? ▪ July 4th is America’s top beer drinking holiday. The beer industry brings in over $1 billion this weekend!

▪ The biggest celebration is the Macy's 4th of July Fireworks show, which takes over 8,000 hours to prepare

▪ Exactly half of the Access Team purchases consumer fireworks for the 4th of July! ▪ When our team thinks of Independence day they most often think of; freedom, the pursuit of happiness, and Our Access equality. Survey Says... ▪ Our teams prefers hamburgers over hot dogs, with 62% of the team choosing hamburgers as their holiday go-to! ▪ Only 13% of our team tunes into Nathan’s Hot Dog Eating Competition!

35 DISCLAIMER CONFIDENTIALITY

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Any offer, sale or solicitation of interests with respect to the Fund will be made only pursuant to the Fund’s confidential private placement memorandum (the “Memorandum”), limited partnership agreement, and subscription agreement, and will be subject to the terms and conditions contained in such documents in accordance with applicable securities laws. This presentation is qualified in its entirety by reference to the Fund’s Memorandum, including without limitation all of the cautionary statements and risk factors set forth therein, the limited partnership agreement and the subscription agreement related thereto, copies of all of which will be made available in the future to qualified investors upon request and should be read carefully prior to any investment in the Fund. The information in this presentation is not presented with a view to providing investment advice with respect to any security, or making any claim as to the past, current or future performance thereof, and Access Holdings expressly disclaims the use of this presentation for such purposes. Each recipient should consult its own advisers as to legal, business, tax and other related matters concerning an investment in the Fund. Statements contained in this presentation are based on current expectations, estimates, projections, opinions and beliefs of Access Holdings as of the date hereof. Such statements involve known and unknown risks and uncertainties, and undue reliance should not be placed thereon. Neither Access Holdings nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance of the Fund or any other entity. Unless otherwise noted, the information contained herein is unaudited and may be preliminary and subject to change, and Access Holdings and its members, partners, stockholders, managers, directors, officers, employees and agents do not have any obligation to update any of such information. Certain figures in this presentation have been rounded. In addition, certain information contained herein has been obtained from published and non-published sources and / or prepared by third-parties, and in certain cases has not been updated through the date hereof. While such information is believed to be reliable for the purposes of this presentation, Access Holdings assumes no responsibility for the accuracy or completeness of such information and such information has not been independently verified by it. Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of terms such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “projects,” “future,” “targets,” “intends,” “plans,” “believes,” “estimates” (or the negatives thereof) or other variations thereon or comparable terminology. Forward looking statements are subject to a number of risks and uncertainties, some of which are beyond the control of Access Holdings, including among other things, the risks listed in the Memorandum. Actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which Access Holdings is not currently aware also could cause actual results to differ. In light of these risks, uncertainties and assumptions, prospective investors should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this presentation may not occur. Access Holdings undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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