How America Eats

THE STATE OF THE INDUSTRY

April 9, 2019 We are Living in a … SNACKING EVOLUTION

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 2 Millennials Were Ages19-34 in 2015, Making Them 23-38 Today; Gen Z Age Range Today is 7-22; We Have Been Monitoring Millennials as They Age and Starting to Get the First Glimpse of Gen Z From a Purchase and Snacking Perspective

Today We Will Share Our Findings and Future Implications

NOTE: Millennials born 1981-1996; Gen Z born 1997-2012 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 3 Agenda

Did You Know? Trend Highlights

Future Trend Drivers Trends

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 4 DID YOU KNOW?

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 5 Did You Know?

• Snacking outpaced F&B but facing competition from Quick Serve & Limited Serve, slowing unit growth

• We have gone from 2 ways consumers purchase and consume (planned and impulse) to 4

• 47% of consumers eat 3+ snacks per day

• If the trends continue to hold, millennials are taking their snacking habits with them creating a generation tailwind

• Macrosnacking will have, at a minimum, $16B of incremental growth over the next 5 years

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 6 TREND HIGHLIGHTS

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 7 Snacks Can Be Found Virtually Everywhere…

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 8 …the Impact is “On Demand” Food and Beverage Including Snacks…

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 9 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 10 …Leading to 4 Main Ways Consumers Purchase and Consume Snacks

Planned Impulse On Demand Experiential

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 11 On Average Consumers are Still Snacking 2.7 Snacks Per Day, and 3+ Snacks Per Day Increased Over the Last 4 Years

Number of Snacks Consumed Daily

47% 3+ snacks per day +4 points vs 2015

2010 2015 2019

Do not snack 1-2 3+

Source: IRI 2019 Snacking Survey

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 12 Snacking Frequency has Continued to Be Prevalent Across the Day, With Early Morning Increasing 8 points in Four Years

AFTERNOON

51% 69% 66% 2010 2015 2019 MORNING EVENING

22% 31% 36% 57% 55% 44% 2010 2015 2019 2019 2015 2010

EARLY MORNING LATE EVENING

7% 18% 26% 40% 39% 24% 2010 2015 2019 2019 2015 2010

Source: IRI 2019 Snacking Survey © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 13 Snacking is Outpacing Total F&B, but Opportunities Exist for Retail to Gain More Snack Occasion Purchases

Total F&B Total Snacking Total Core Snacking +2.6% +0.4% +3.4% +0.4% +3.1% +0.2% Dollars Units Dollars Units Dollars Units

Source: Custom IRI POS and IRI Shopper Intelligence Platform – 52 weeks ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 14 Dollar and Unit Sales Grew Across All Top 10 Categories Except Yogurt, Ice Cream and Crackers

Chocolate Candy Cookies Chips Crackers Non-Chocolate Candy 0.7% | 0.1% 3.0% | 0.8% 2.1% | 1.1% 0.0% | -0.9% 3.0% | 0.3%

Rfg. Yogurt Ice Cream Tortilla Chips Snack Nuts Frz Novelties -4.6% | -6.3% -0.6% | 0.4% 5.5% | 4.0% 1.8% | 0.2% 4.1% | 2.4%

Source: IRI TSV_52 Weeks Ending 12_30_18 $ % Chg Unit % Chg © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 15 Last Year, We Shared Our Macrosnacking Segments

Wellness Permissible True Treats Indulgence Indulgence

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 16 The Category Breaks are Based on Product Roles And Attributes

Wellness Permissible True Treats Indulgence Indulgence Inherently Products consumers “Fully loaded” Confections healthier feel are more traditional categories &/or permissible because nutrition claims they have less of or added benefits to their indulgent favorites

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 17 The Category Breaks are Based on Product Roles And Attributes

Wellness Permissible True Treats Indulgence Indulgence

Snk and Granola Bars (GMO+ Claims) All Other Snk and Granola Bars ( w/o GMO+ Claims)

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 18 When Comparing 2018 vs 2017, All Segments Realized Growth; Permissible Indulgence Drove Dollar Sales for Another Year

+1.6% +3.9% +2.9% +1.2% Wellness Permissible True Treats Indulgence Indulgence

Source: IRI TSV_52 Weeks Ending 12_30_18 $ Share & $ % Chg © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 19 When Looking at Growth Rates Top Categories Varied – Winners From Shelf Stable, Frozen, Refrigerated, as Well as, Sweet, Savory and In Between Dollar % change

Snack/Granola Rfg Frz Novelties Fz Cookies Rfg. RTD Coffee (Calories/Serving+Dairy Claims) Bars Peppers/Pimentos/ (Grain Claims + 100% Natural Claims +High Source) Olives

Rfg. Snack Cakes Rfg. Peanut Butter Rfg. RTD Coffee Fresh Eggs Dry Fruit Snacks (Other Natural Claims + Calories & Doughnuts Per Serving + Other Calorie Claims)

Source: IRI TSV_52 Weeks Ending 12_30_18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 20 Top Raw Dollar Growth Categories Were Mixed With BFY, Permissible Indulgence, True Indulgence and Treats Does Not Happen Often – Points Towards Consumers Desire for Variety Top by raw dollar growth

Fresh Eggs RTE Cereal Other Salted Non-Chocolate Snacks Candy Cookies

Nutritional/intrinsic Refrigerated Frz Novelties AO Yogurt Tortilla Chips (w/o Fat+ Claims) health value bars Meat/Cheese/ (Other Protein Cracker/Dessert Claims+Gluten Free Claims)

Source: IRI TSV_52 Weeks Ending 12_30_18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 21 All Generations Purchase and Consume Snacks Today

GenX Boomers 33% 33%

Millennials 23% Seniors 11%

Source: IRI Shopper Intelligence Platform © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 22 If the Trends Continue to Hold, Millennials are Taking Their Snacking Habits With Them as They Age Which is GREAT News for the Industry

3+ snacks/ 18-24 25-34 35-44 day +2pts +13pts +9pts (vs. 2015)

Source: IRI 2019 Snacking Survey

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 23 It is Too Soon to Tell, but Early Indications are That Gen Z Will Snack Frequently as Well!

18-24 53%

3+ snacks per day

Source: IRI 2019 Snacking Survey

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 24 Beverage as a Snack has Evolved to Be a Main Consideration

71% 64% 63% 60% 60% 57% 60%

18-24 25-34 35-44 45-54 55-64 65-74 75+

63% I sometimes have a beverage as a snack Up 3 pts. vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 25 On Demand and Impulse Snacking is Important to Consumers

77% 75% 75% 74% 72% 71%

68%

don’t plan - just grab 18-24 25-34 35-44 45-54 55-64 65-74 75+ snack as I need it 73% Up 6 pts. vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 26 However, When Consumers Pick Where to Get Their Snacks On Demand, Quick Serve and Limited Serve are Capturing Their Attention With Convenience Being the #1 Answer as to Why

54% 57% 54% 41% 33% 26% 8% 18-24 25-34 35-44 45-54 55-64 65-74 75+ 45% Of consumers go 1 to 2 x’s per week Up 6 pts. vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 27 TREND DRIVERS

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 28 Holistic Health Progression Craver Flavor

Generational Divide Key Differences

Packaging, a Little Art and Science Food Influencers

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 29 HOLISTIC HEALTH PROGRESSION

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 30 Consumers Have a Variety of Ways They Practice Holistic Health (Self-care)

90% 86% 82%

55% 47% 44% 30%

23% 21%

Healthcare Personal F&B Exercise Sleep Natural/Home Mental Wearables Medical Care Remedies Wellness Devices

Source: IRI 2018 Self-Care Study © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 31 Snacking has Seen Solid Increases for Products With Relevant Claims

Dollar Growth

DAIRY: ADDED KOSHER GMO OTHER PROTEIN GLUTEN FREE NO PRESERVATIVES

$ % Chg 139%

71% 44% 23% 16% 15%

OTHER IMMUNE OIL BLEND CARBOHYDRATE: OTHER VEGAN/ OTHER CAFFEINE DEFENSE SOURCE/ ANTIBIOTIC VEGETARIAN CONTAINS

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 32 There are Additional Benefits Consumers Look For in Their Snacks and It Sometimes Differs by Age 57% 49% want snacks that contain view snacks as an important vitamins and minerals part of a healthy eating plan +5 pts vs 2015 throughout the day +8 pts vs 2015 Even more important to: Not as important to: 18-24 – 63% 65-74 – 32% 25-34 – 63% 75+ – 24%

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 33 All Generations Agree on These Snack Benefits

58% 60% seek snacks that offer want fresh/not benefits beyond basic processed nutrition +2 pts vs 2015 +8 pts vs 2015 55% want snacks that 73% provide a serving of Is guaranteed fresh fruit or vegetables +2 pts vs 2015 +7 pts vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 34 However, You Need to Recognize the Differences When It Comes to the Specifics and Ensure Targeted Messaging Aligns to Needs…Like Organic

44% 39% 41% 27% 22% 17% 16%

18-24 25-34 35-44 45-54 55-64 65-74 75+ Seniors 2% Boomers +2% 25% +7% Millennial 32% 43% consumers eat more +10% organic snacks GenX +5 pt vs 2015 30% Contribution to Core Snacks Growth Share +6% and $ % Chg Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 35 All Generations are Embracing Snacks With Probiotics, While Millennials and GenX Are Driving Yogurt With Probiotics

Seniors 14%

Boomers 22%

GenX 18%

Millennials 40% Has 'probiotics' to help with digestion $ % Chg 39% Up 2 pts vs 2015 Pre/Probiotics without Yogurt Total Pre/Probiotics

Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform Yogurt Drinks are Outside of Yogurt © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 36 The Need for Low, Less or No Amount of Certain Ingredients Varies Across Life And Varies Across Categories

Seniors 50% Boomers consumers wants snacks lower in sugar GenX +3 pt vs 2015 Millennials 55-64 – 54%

75+ - 56% $ % Chg Select Snack Categories

Seniors

49% Boomers consumers wants snacks lower in salt +1 pt vs 2015 GenX

65-74 – 55% Millennials

75+ - 56% Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 37 Approximately 45M U.S. Consumers Diet Each Year, Both Commercial and Self-Subscribed, as Part of Their Food & Beverage Practice

Top-Ranked Overall Top Commercial Self-Subscribed

Mediterranean WW (Weight Diet Watchers) Diet

DASH Diet Jenny Craig Diet

Flexitarian Nutritarian Diet Diet

Source: Boston Medical Center U.S. News - Jan. 2, 2019 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 38 When You Look Across a Select Group of Self Subscribed Diets, There are Some Snack Categories Allowed but Not All

Eggs Fruit Vegetables

Whole Grains Cheese Nuts

Source: Primary Research – Not Exhaustive List for Diets or Categories © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 39 Not Only are There Category Implications to Diets, but Also Eating Habit Changes

For example, Keto diet consumers say…

“I have changed 57% my eating habits in other ways"

“I have started 37% intermittent fasting”

Source: IRI Monthly Omnibus Survey, March 2019

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 40 Vegan Realized 16% Dollar Growth Within the Macrosnacking Universe With All Generations Opting In – Some for Dietary Reasons but Preference for Others

Seniors 3% +5% Boomers 20% 8%

Millennial 45% +20% GenX 32% +11%

Contribution to Core Snacks Growth Share and $ % Chg

Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 41 Rise of Plant-Based Protein Snacks in Select Categories Speaks Volumes to the Changing Preferences for Many Consumers

Over $188M +19% +20% in sales dollar sales unit sales

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 42 Plant Based Innovations Crossed Into Many Categories in 2018

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 43 Manufacturers are Leveraging This Holistic Health Opportunity to Message Benefits of Current Approved Products and/or Innovation Aligned With Multiple Benefits

From Diet-Friendly to Functional Benefits

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 44 In Addition, Retailers are Assisting Consumers With Their Nutritional Goals Through Specialists as well as Messaging In and Out of the Store

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 45 CRAVER FLAVORS

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 46 89% State They Want Snacks With the Flavor They Prefer

92% Has Taste They Enjoy

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 47 There Has Been An Explosion of Flavor Combinations Over the Past Few Years and Many Had Growth

Flavor combinations Had Dollar Growth in in Macrosnacking 2018 vs 2017

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 48 Well Known Flavors Continued to Blend Ingredients and Were Snack Fan Favorites Driving Raw Dollar Growth…Like Cheese

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 – Top Flavors Based on $ Change © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 49 Even Peanut Butter Had a Good Year in Snacks

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 – Top Flavors Based on $ Change © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 50 Sweet Flavors Were Also In Demand

Chocolate +8%

Oreo-Flavored Banana Double +125% +21% Chocolate +22%

Mixed Fruit Chocolate Chip +14% +5% Source: IRI MULO+C- 52 Weeks Ending 12-30-18 – Top Flavors Based on $ Change © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 51 Sweet Snacks Has the Largest Share of the Universe, While Savory and Other (Sweet/Savory Combinations, Assorted, etc..) are Driving Growth

OTHER

Sweet Savory other

38% 43% 48% 33% 29% 9%

$ Share $ Contribution to $ Share $ Contribution to $ Share $ Contribution to Growth Growth Growth

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 52 Over the Past 18 Months, Innovation Flavors Have Been More Experiential, “Emotional” and/or “Descriptive” and …

Birthday Speed Cake Bump

Dynamite Scorpion

Chillin’ Blaze Deer Traxx

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 53 …These Innovations Appeal to Consumers Across the Ages

Skews Across Broad Appeal GenX & Younger Bought By All Skews Younger Generations Boomers Birthday Cake Blaze/ Chillin’ Dynamite Deer Traxx Blazin’ Deer Traxx

36 - 45| 185 19 - 25| 149 19 - 25| 159 19 - 25| 132 26 - 35| 138 26 - 35| 144 26 - 35| 155 26 - 35| 124 36 - 45| 144 Avg Repeat ~10% ~19% ~18% ~25% ~6%

Source: IRI Shopper Intelligence Platform - Average Buyer Index of each flavor group Repeat % of 2+Purchasers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 54 In Total, Birthday Cake Flavored Snacks Lit Up the Snacking Universe With Strong Growth

+64% $ % Chg

Source: IRI MULO+C- 52 Weeks Ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 55 Flavor Was One of the Biggest Growth Drivers This Year and You Can See Why With These Flavors

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 56 Flavor Innovation Drives Growth If You Get It Right - AI Influence on Flavor Innovation Will Increase the Number to Ensure the Best Ones are Developed

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 57 PACKAGING, A LITTLE ART AND SCIENCE

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 58 One Role of Packaging Is to Elevate Snacks

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 59 Packaging Can Be Fun and Engaging

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 60 Packaging and Websites are Great for Sharing Sustainability Stories

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 61 Packaging Can Also Assist in Showcasing Authenticity

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 62 Packaging is a Great Vehicle to Communicate Simplicity, Transparency and Clean Labels

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 63 As Younger Generations Age, These Facts Will Become Even More Important With Snack Selections – Like Sustainability…

Snacks with 'green' manufacturing processes 49% Up 8 pts. vs 2015 44% 36% 37% 31% 25% 29% 16%

18-24 25-34 35-44 45-54 55-64 65-74 75+

49% 45% 39% 36% 34% 33% Reduced packaging to 24% be more 39% environmentally friendly 18-24 25-34 35-44 45-54 55-64 65-74 75+ Up 3 pts. vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 64 …and Biodegradable Packaging

32% of consumers want snacks with biodegradable packaging Up 3 pts vs 2015

18-24 – 46%

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 65 Even Portion Sizes are Poised for Additional Growth

62% 61% 59% 57% 57% Want snacks that have convenient portion 53% 52% sizes 52% Up 4 pts. vs 2015 18-24 25-34 35-44 45-54 55-64 65-74 75+ 35% snacks packaged in 100 calorie or similar portions Up 5 pts. vs 2015

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 66 Portion Control Innovation Crossed Categories and Occasions

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 67 Packaging Has Been A Factor Making These Categories Top-of-Mind When Consumers Are Chocolate Candy Non-Chocolate Candy Snack Nuts Commuting

Snack & Protein Bars Bakery Snacks Fruit Based Smoothies

Fresh Veggies

Source: IRI 2019 Snacking Survey - % of Consumer Index over 120

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 68 Augmented Reality Will Begin to Play a Bigger Role in Not Only What Consumers Choose to Snack but From Where

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 69 Remember, Your Package is Your Last Billboard, But Online May be Impacting the Importance to Younger Generations – Find a Way to Gain Better Package Visibility No Matter What Channel

80% 70% 63% 53% 49% 50% 44% SNACKS

18-24 25-34 35-44 45-54 55-64 65-74 75+

gain information about a specific 54% snack brand/product via package

Source: IRI 2019 Snacking Survey % of Consumers © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 70 SNACKING INFLUENCERS

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 71 With the Variety of Ways Consumer Shop and Purchase Snacks, There is a Variety of Influencers and The List is Evolving

1. Item price – 77% 9. Newspaper circulars from home 2. Previous usage and trust of the brands 10.Television or radio advertising 3. Product label/packaging – 54% 11.In-store kiosks 4. Coupons from home 12.Information from website or email – 29% 5. Shopper loyalty card discounts – 50% 13.Smartphone apps – 28% 6. Signs or displays in the store 14.Online ads and banners – 28% 7. Checkout – 37% 15.Information from blogs or social networking sites – 27% 8. In-store flyers

Source: IRI 2019 Snacking Survey: How do each of the following sources influence your snack purchase decisions: (Top 15 of Top 2 Box)

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 72 Out of the 37% of Consumers Who are Influenced at Checkout, They Truly Want Variety In Snacking and That Includes Variety At Checkout

Total 18-24 55-64 65-74

Indulgent Snacks 53% 49% 52% 58%

Healthy Snacks 48% 34% 60% 61%

Cold Carbonated Beverages 41% 39% 38% 45%

Cold Bottled Water 41% 39% 33% 27%

Healthy Ready-to-Drink 33% 32% 26% 21% (smoothies, juices, etc.) Source: IRI 2019 Snacking Survey

You mentioned your snack purchase decisions were influenced by the checkout. What specifically influenced your decisions? © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 73 Purchased-Based Behavior Targeting Avoids Key Missteps in Personalization Efforts

Jamie, a Vegan, Gets a Sponsored Ad for Milk and Milk-Based Products …

But her actual cash register receipts shows she buys dairy–free and dairy- alternative products

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 74 Attract Consumers NOT Purchasing but Clearly are Your Target

Deliver Drive conversations consistent from coupons to messaging experiences across channels

Provide quick access to accompanying products with snacking occasion ideas

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 75 Does It Work? YES! Recently a Dairy Snack Was Successful With Targeted Campaigns

$9.31 ROAS SALES

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 76 How Can You Capitalize?

Make a strong first impression

Boost blog engagement

Help consumers discover relevant content

Let your content drive shopping

Provide quick access to similar products

Make finding products simple with the attributes they want

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 77 CLICK AND FEET FAVORITES

Image Source: Search Engine Land © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 78 The Industry Came Full Circle in 2018 With Pure Plays Opening Up B&M Stores and/or Being in Distribution in B&M as a Differentiator; B&M Even Had More Online Options

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 79 The Influencers Have Driven Growth to Across Several Channels

All Other

Grocery Mass Conv Club All Other E-Comm Drug Dollar

$ Sales % Change 1.6% 4.0% 3.3% 0.5% 6.3% 38.8% -2.5% 6.5% vs. 2017

Unit Sales % Change -1.3% 2.8% 0.7% -0.6% 3.9% - -4.8% 4.5% vs. 2017

Source: Custom IRI POS and Consumer Network – Macrosnack - 52 weeks ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 80 Mass, E-Comm, Dollar and All Other Channels are Getting More Than Their Fair Share of Consumer Dollars

All Other

Grocery Mass Conv Club All Other E-Comm Drug Dollar $ Share of All 43% 22% 11% 9% 5% 3% 3% 2% Channels

Share of $ Growth 21% 27% 11% 1% 9% 29% -2% 4%

Source: Custom IRI POS and Consumer Network - Macrosnack – 52 weeks ending 12-30-18 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 81 Online Shoppers are Buying Snacks From All Over the Virtual Store – Shelf Stable, Frozen, Refrigerated

Fz Rfg Meat/Cheese/ Appetizers/ Cracker/Dessert Tortilla Chips Frozen Dairy Corn Snacks Cheese Toasted Corn Snack Rolls Dessert Snacks Nuts 81% 76% 68% 68% 59% 53% 53%

Pretzels Potato Chips Pork Rinds RTE / Crackers Other Salted Pastry Caramel Corn Snacks Doughnuts 51% 51% 49% 49% 46% 44% 44%

Dollar Sales % Chg.

Source: IRI eMarket Insights - 52 weeks ending 12/30/2018 © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 82 Online Sales Continue to Gain Share and Capture Share of Growth

Snack & Granola Bars Tortilla Chips RTE Popcorn/Caramel Corn

9.2% 0.9% 1.9% 0.7% 5.2% 0.5%

E-commerce share of Click and collect share omni-channel sales of omni-channel sales

Source: IRI eMarket Insights - 52 weeks ending 12/30/2018 - “Omni-Channel + C” = MULO + C + eCommerce © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 83 Channel Connectivity Strategies Are Important For Success

Strive to Be Within a Hand’s Reach of Consumers With Optimized Assortment and Occasion and/or Benefit-based Messaging

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 84 INNOVATION: THE REST OF THE STORY

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 85 Many Consumers Look for Snacks That are Filling 73% want snacks that provide sustenance Up 1 pt vs 2015 18-24 – 80%

Source: IRI 2019 Snacking Survey © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 86 Some Look to Gain Energy

64% Millennials ((+9%) and Provides an energy Up 8 pts vs 2015 Gen Z (+4%) are driving the majority of snack 18-24 – 68% “Energy” purchase growth 25-44 – 69%

Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform_Core Snack All Outlet Purchases with Energy claims © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 87 …Especially When Snacks Fuel Their Day

74% 77% 66% 64% 58% 52% 44%

18-24 25-34 35-44 45-54 55-64 65-74 75+

snack to fuel my day 66% Up 11 pts. vs 2015

Source: IRI 2019 Snacking Survey and IRI Shopper Intelligence Platform © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 88 There’s Protein Innovation…

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 89 …Which Consumers are Purchasing and Consuming at Any Age, but Millennials and Gen X Driving the Majority of Dollar Growth…

Seniors Boomers 2% 13%

Millennials 41%

Contribution to Growth

Gen X 44%

Source: IRI Shopper Intelligence Platform_Core Snack All Outlet Purchases with Other Protein claims © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 90 …and Then There’s Grass-Fed Collagen Innovation Delivering Protein!

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 91 It’s Table Stakes to Have a Benefit Within the Bars Category – from Protein to Cheese to Free Range Chicken – This Year's Innovation Delivered

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 92 Meat Snacks Variety Continues to Expand – Textures, Ingredients, Forms, Flavors, Packaging

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 93 Nuts and Dried Fruit are Either Enrobing, Adding New Ingredients and/or Enhancing With Artisanal Flavors and Packaging

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 94 Yogurt Also Innovated With Flavors Targeting Adults and Kids

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 95 If Your Freezer Didn’t Grow… You Need to Make Room! Frozen Desserts/Ice Cream/Novelties and…

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 96 …Lactose/Dairy-free Innovations Were Launched Delivering on Flavors and Benefits

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 97 Puffed or Popped Snacks Have Proven to Be Fun and Rewarding

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 98 Keeping Consumers Engaged in Snacking from Retail is Critical – Therefore Experiential Innovations are Needed and These are Some

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 99 FUTURE TRENDS

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 100 Future trends…

…are exciting and include conversational commerce, smart kitchens, lab-grown protein and cannabis in snacks, to name a few

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 101 At Our Recent Industry Conference, IRI Growth Summit, We Shared the Top Types of Edible Marijuana Consumed

Consumed Past 6 Months Preferred Consumption Method

64%

46% 45% Fully Legal States 32% 39%

20% 13% 5% Baked Goods Gummy Candy Chocolate Hard Candy

BDS Analytics Consumer Research Q3 2018 Level 1 States: U.S. adults 21+ © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 102 CBD and Hemp Snacks are Lining Up and There are More to Come

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 103 We are Seeing Ghee Being Leveraged for Many Uses Including Spreads and Beer Grain Being Used as a Prebiotic in Some Snacks

Ghee Beer Grain Ghee as an option for an Leftover grain from beer alternative spread making – rich in prebiotic fiber and protein being used in crackers and snacks

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 104 Food Service and Innovations Can All Be Predictors for Future Snacking Trends

Bitter Flavors Butter Technology Continuing to expand in Food Butter as an ingredient is Heat your snack with your Service and Snacking and we will trending in food service – will phone charger?* see more in the coming years butter flavor snacks see a boost too?

*Source: Inductive Intelligence © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 105 To Gain a Portion of the $16B Incremental Growth, Please Consider: • All generations are important so cater to their differences and needs

• Be within a hand’s reach of your target being mindful of the FOUR ways consumers snack

• Channel strategies should be comprehensive and include their top influencers, as well as, assortment and innovation variations to avoid cannibalization • Leverage loyalty data to gain granular understanding of your mutual targets

• Purchase-based targeting will improve ROAS and ensure you get to the right consumers in the right place at the right time

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 106 SALLY LYONS WYATT THANK YOU! [email protected]

© 2019 Information Resources Inc. (IRI). © 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 107107 Appendix

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 108 The category breaks have been based on consumer attributes – part 1 WELLNESS PERMISSIBLE INDULGENCE

Apple Chips Pickles AO Appetizers/Snack Rolls (w/o Sushi) Fz HH Entrees Non Bkfast (GF+ Claims) Bagels and Bialys (GF+ Claims) Potato Chips (High Fiber + Low Fat+ Claims) AO BAGELS/BIALYS (w/o GF+ Claims) Fz Ice Cream and Ice Milk Desserts (100% Bfast Cereal and Snk Bars (Other Natural+ Claims) Pretzels (Fat+ Claims) AO Bfast Cereal and Snk Bars (w/o Other Nat+) Natural+ Claims) Breakfast Drink Mixes Refrigerated Meat/Cheese/Cracker/Dessert AO Canned/Bottled Fruit (w/o Non GMO+GF+Low Fz Jams Jellies and Preserves (100% Natural+ Sugar+Organic+ Claims) Claims) Canned/Bottled Fruit (Non GMO+GF+Low Sugar+Organic+ Claims) Relish AO Cappucino/Iced Coffee (w/o Fat+ Claims) Fz Novelties (100% Natural+ Claims) Cappucino/Iced Coffee (Fat+ Claims) RFG Appetizers/Snack Rolls - Sushi AO Cheese Snacks (w/o Fat+ Claims) Fz Pizza (100% Natural+ Claims) Cheese Snacks (Fat+ Claims) Rfg English Muffins (Multigrain+Fat+ Claims) AO Dried Meat Snacks (w/o Fat+ Claims) FZ Pretzels Chutney Rfg Flav Spreads (Fat+ Claims) AO Dry Fruit Snacks (w/o Gluten Free + Organic + Non FZ Yogurt/Tofu Cottage Cheese (Fat+ Claims) AO Rfg Flav Spreads (w/o Fat+ Claims) GMO+ Claims) Ice Cream (Low Fat+High Protein+Organic+ AO Cottage Cheese (w/o Fat+ Claims) AO Rfg Juc and Drk Smoothies (w/o Other Protein+ AO English Muffins (w/o GF+Multigrain+Calorie+ Claims) Claims) Crackers (Other Grain+ Claims) Claims) AO Granola Bars (w/o Natural+Organic+Non GMO+Grain+ Ice Milk and Fz Dairy Desserts (Low and Spreads (Fat+ Claims) RFG Honey Claims) Fat+Gluten Free+Natural+ Claims) AO Cream Cheese and Spread (w/o Fat+ Claims) Rfg Juc and Drk Smoothies (Other Protein+ Claims) AO Jams Jellies and Preserves (w/o Organic+Low Ice Pop Novelty (Natural+Low Fat+ Claims) Dried Fruit RFG Marinated Vegetables/Fruit Sugar+Low Fat+ Claims) Muffins (Gluten Free+Low Fat+Natural+Grain+ Dried Meat Snacks (Fat+ Claims) Rfg Peanut Butter (100% Natural+ Claims) AO Luncheon Meats (w/o Natural+No Preservatives+ Claims) Dry Fruit Snacks (Gluten Free + Organic + Non GMO+ Claims) RFG Pickles Claims) Oth Salted Snack xNuts (Gluten Free+Non AO Nutri and Intri Hlth Vlu Bars (w/o Other Protein+ Claims) GMO+Low Fat+ Claims) English Muffins (GF+Multigrain+Calorie+ Claims) RFG Relishes/Appetizer Relish AO Peanut Butter (w/o Non GMO+Low Fat+Organic+Sugar+ Pork Rinds Fresh Eggs Rice Cakes/Popcorn Cakes Claims) Rfg Bagels and Bialys (Low Fat+Grain+ FZ Fruit RTE Cereal (Grain+ Claims) AO Pretzels (w/o Fat+ Claims) Claims) Granola Bars (Natural+Organic+Non GMO+Grain+ Claims) RTE Popcorn Savory (Fat+ Claims) AO Rfg English Muffins (w/o Multigrain+Fat+ Claims) Rfg Desserts (Low Sugar+Gluten Free + Jams Jellies and Honey (Organic+Low Sugar+Low Fat+ Claims) RTE Popcorn Sweet (Fat+ Claims) AO Rfg Peanut Butter (w/o 100% Natural+ Claims) Natural+ Claims) Kernel Popcorn (Organic+Natural+Home Grown+ Claims) Salsa AO RTE Cereal (w/o Grain+ Claims) Rfg Dips (Fat AO Kernel Popcorn (w/o Organic+Natural+Home Grown+ Claims) Snack Nuts AO Snack and Granola Bars (w/o GMO+ Claims) Claims+Natural+Calories/serving+ Claims) Luncheon Meats (Natural+No Preservatives+ Claims) Snk and Granola Bars (GMO+ Claims) AO Specialty Nut Butter (w/o Non GMO+Natural/Organic+ Rfg Pizza (GF Claims+Natural/Organic+ Microwave Popcorn (Fat+Organic+Natural/Organic+ Claims) Soups - BFY Claims) Claims) Natural Cheese (Fat+ Claims) Specialty Nut Butter (Non GMO+Natural/Organic+ Carob/Yogurt Coated Snacks RFG Ready-to-Drink Coffee AO Natural Cheese (w/o Fat+ Claims) Claims) Chocolate Covered Salted Snacks Sherbet/Sorbet/Ices Nutri and Intri Hlth Vlu Bars (Other Protein+ Claims) Sunflower/Pumpkin Seeds Cookies (Energy+ Claims) SS Bottled Juice and Drink Smoothies Crackers(w/o Other Grain+ Claims) Tortilla and Tostada Chips (100% Natural+ Nutritional Snacks/Trail Mixes Total Snack Size Produce Cupcakes and Brownies (GF+ Claims) Claims) Olives Yogurt (Fat+ Claims) Fz App and Snk Rolls (Protein+Natural+ Claims) Tortilla/Eggroll/Wonton Wrap - RFG Peanut Butter (Non GMO+Low Fat+Organic+Sugar+ Claims) AO Yogurt (w/o Fat+ Claims) Picante Sauce

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 109 The category breaks have been based on consumer attributes – part 2 TRUE INDULGENCE CORE INDULGENT

Aerosol/Squeezable Cheese Spreads FZ Onion Rings Chocolate Candy AO Cookies (w/o Energy+ claims) Fz Pizza (w/o 100% Natural+ Claims) AO Fz App and Snk Rolls (w/o Protein+Natural+ Claims) Non-Chocolate Candy AO Fz HH Entrees Non Bkfast (w/o GF+ Claims) FZ Pizza Kits/Toppings AO Fz Ice Cream and Ice Milk Desserts (w/o 100% Natural+ Claims) FZ Plain Potatoes/Fries/Hashbrowns Regular Breath Fresheners AO Fz Jams Jellies and Preserves (w/o 100% Natural+ Claims) Fz Tortillas Regular Gum (No Sugarless) AO Fz Novelties (w/o 100% Natural+ Claims) Microwave Popcorn (w/o Fat+Organic+Natural/Organic+ AO Ice Cream (w/o Low Fat+High Protein+Organic+ Claims) Claims) SF Breath Fresheners AO Ice Milk and Fz Dairy Desserts (w/o Low Fat+Gluten Pastry/Danish/Coffee Cakes Free+Natural+ Claims) Sugarless Gum AO Ice Pop Novelty (w/o Natural+Low Fat+ Claims) Rfg Pastry/Danish/Coffee Cakes (GF+ Claims) AO Muffins (w/o Gluten Free+Low Fat+Natural+Grain+ Claims) RFG Handheld Non-Breakfast Entrees AO Oth Salted Snack xNuts (w/o Gluten Free+Non GMO+Low Fat+ Rfg Snack Cakes and Donuts (GF+ Claims) Claims) RTE Popcorn Savory (w/o Fat+ Claims) AO Potato Chips (w/o High Fiber + Low Fat+ Claims) RTE Popcorn Sweet (w/o Fat+ Claims) AO Rfg Pastry/Danish/Coffee Cakes (w/o GF+ Claims) AO Rfg Bagels and Bialys (w/o Low Fat+Grain) SS Toaster Pastries and Pop Tarts (Organic+GF+ Claims) AO Rfg Desserts (w/o Low Sugar+Gluten Free + Natural+ Claims) AO SS Toaster Pastries and Tarts (w/o Organic+GF+ AO Rfg Dips (w/o Fat Claims+Natural+Calories/serving+ Claims) Claims) AO Rfg Pizza (GF Claims+Natural/Organic+ Claims) Toasted Snacks AO Rfg Snack Cakes and Donuts (w/o GF+ Claims) True Indulg - Soups AO Tortilla and Tostada Chips (w/o 100% Natural+ Claims) Corn Snacks (No Tortilla Chips) Cupcakes and Brownies (w/o GF+ Claims) Dip/Dip Mixes SS Doughnuts FZ Cookies FZ Dips

© 2019 Information Resources Inc. (IRI). Confidential and Proprietary. 110