IRI COVID-19 Thought Leadership

HOW COVID-19 IS REINFORCING AND RESHAPING THE TOP TRENDS IN FRESH

Hosted with thought leadership from FMI associate member

August 26, 2020 Today’s Speakers

Rick Stein, Vice President, Fresh, FMI Sally Lyons Wyatt, EVP, IRI Center-of-Store & Produce Vertical Jonna Parker, Principal, IRI Fresh Center of Excellence

www.fmi.org 2 This presentation and any opinions expressed therein are not created, sponsored or endorsed by FMI – The Food Industry Association

FMI ANTITRUST COMPLIANCE

◆ It is FMI policy to comply in all respects with the antitrust laws.

◆ All participants in FMI meetings and events are expected to comply with applicable antitrust and competition laws.

◆ Avoid discussions of sensitive topics that can create antitrust concerns. ▪ Agreements to fix prices, allocate markets, engage in product boycotts and to refuse to deal with third parties are illegal. ▪ Discussions of prices (including elements of prices such as allowances and credit terms), quality ratings of suppliers, and discussions that may cause a competitor to cease purchasing from a particular supplier, or selling to a particular customer, should be avoided. ▪ No discussion that might be interpreted as a dividing up of territories. ◆ It is important to avoid even the appearance of unlawful activity.

◆ Questions or concerns? Please consult with FMI staff.

www.fmi.org 3 As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply.

FMI brings together a wide range of members across the value chain — from retailers who sell to consumers, to producers who supply the food, as well as the wide-variety of companies providing critical services — to amplify the collective work of the industry. Tackling Emerging Issues

FMI identified five major categories of Emerging Issues through the detailed review of the industry.

www.fmi.org 5 Strategic Plan – Value Proposition

Focused offer around value proposition Distinct from the plan, an updated communication of the value proposition will benefit members and other stakeholders. used offer around value proposition Distinct from the Plan, an updated communication GOVERNMENTof the value RELATIONS proposition will benefit members and other stakeholders. FOOD SAFETY

INDUSTRY COLLABORATION

VOICE OF FOOD RETAIL

HEALTH & WELLBEING RESOURCES

EVENTS & EDUCATION

ORIGINAL & SECONDARY RESEARCH

Refining and designing the precise communication will be critical to the future rebranding effort

www.fmi.org 6 FMI Fresh Community

FMI Fresh Executive Committee- (FEC) Primary Members

FMI Fresh Foods Leadership Council- (FFLC) Primary Members and Assoc. Members combined

Seafood Strategy Committee- (SSC) Primary Members

Seafood Strategy Leadership Council- (SSLC) Primary Members and Assoc. Members combined

• Both groups meet 2x per year • Seafood additional quarterly calls 2x per year • Group email communications • Individual calls on-going

www.fmi.org 7 FMI Fresh Executive Committee (FEC)

John Ruane (Chair) Nate Stewart Geoff Waldau Pat Brown

Ahold USA Hy-Vee Food Lion Albertsons LLC

Alex Corbishley (Co-Chair) John Haggerty Bob Gleeson Scott Evans

Target Burris Logistics Weis Markets Price Chopper/Mkt 32

Tom DeVries Mark Hilton Marc Lieberman Randy Riley

Giant Eagle, Inc. Harris Teeter LLC Walmart Kroger

John Beretta Terry Murphy Rick Findlay Curtis Funk

Albertsons, LLC Wakefern Food Corporation Fresh Thyme Lunds Byerly

Dave Bornmann Kirk Laboyteaux Gary York John Burns

Publix Super Markets, Inc. Brookshire Grocery Company CH Robinson Fresh Whole Foods

Scott Bradley Dan Murphy Steve Howard Greg Hilborn

Target Corporation SuperValu Bristol Farms/Lazy Acres Loblaws

Alex Corbishley Pat Pessotto Mike Richter Adam Almond

Target Corporation Longo Brothers Fruit Markets Inc. Coborns Amazon

Buddy Jones Nick Carlino Jerry Goldsmith Nicole Wegman*

MDI Distributors MDI Distributors Spartan Nash Wegmans Food Markets, Inc.

Dan Koch Don Sanderson Anthony Sattler * Silent members

Associated Wholesale Grocers, Inc. Meijer, Inc. C&S Wholesalers

www.fmi.org 8 FMI Fresh Foods Leadership Council (FFLC)

John Ruane (Chair) Paul Mastronardi Art Yerecic Kurt Vetter Randy Evins

Ahold USA Mastronardi Produce Yerecic Label Wonderful SAP

Alex Corbishley- (Co-Chair) David Sherrod Brad Roche Jim Randazzo Tom Windish

Target SE Produce Council Hill Phoenix Aqua Star Seafood Cargill

All- FEC Members Miriam Wolk Rich Rutecky Danny Sweeting Shane Faucet

FMI Fresh Executive Council United Fresh Produce Assoc. Hussmann Trident Seafood Bimbo Bakeries

Chris Dubois Julie Anna Potts Robb MacKie Jeff Baker Jason Adlam

IRI North American Meat Institute American Bakers Assoc. Hormel Foods Chep

Michael Eardley Tom Super Jim Huston Sally Lyons-Wyatt Adam Johnson

International Dairy-Deli-Bakery National Chicken Council Johnsonville IRI Ecolab Assoc. Jarrod Sutton Chad Gregory Wendy Reinhardt Kapsak Maureen Davis Jason Jerome National Pork Board United Egg Producers Produce for Better Health (PBH) Taylor Farms National Cattleman's Beef Association Joe Watson Jenny Maloney Michael Lang Danny Sweeting

Sarah Schmansky Produce Marketing Assoc. Bayer Crop Invatron Trident

Nielsen Perishables Group Joe Weber John Knorr Tom Daniel

Smithfield Foods Inc. Phillips Seafood Sterilox/Chemstar

www.fmi.org 9 Reminder

If you registered for this webinar, you will receive a link to this recorded presentation by e-mail in 2-3 days, including the Q&A.

www.fmi.org 10 Top Trends in Fresh Webinar HOW COVID-19 IS REINFORCING AND RESHAPING FRESH FOODS

August 26, 2020 The Top Fresh Trends Localization That We Have Holistic Examined For Years Health Fresh Prepared Are Still Relevant, But Have Evolved Dramatically Over the Past Five Months Connected Convenience New Supply Consumer Chains Food Transparency

Atomization of Personalization Customization to Consumerism

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 12 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 13 What’s Changed to Reinforce and Reshape the Top Trends in Fresh…

MAJOR FACTORS ARE TOP-OF-MIND FOR CONSUMERS IN 2020

Mouths Community Economic New Needs Homebound to Feed Engagement Uncertainty & Behaviors

• More deeply engaged with food than ever • New routines bring new buyers trying new foods 2020 Evolution and Revolution • Emerging ways to personally connect with consumers in cost- effective and impactful ways • Creative ideas to repurpose and revolutionize what we offer in store departments

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 15 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 16 COVID-19 Concern is Rebounding as Cases Rise; In Mid-July, 56% of U.S. Shoppers Were Extremely Concerned About COVID-19

COVID-19 Mindset Expected Length Of Health Crisis

I am more concerned about COVID-19 than I was last week Overall US Response to COVID 19: Not doing enough 7-12 more months 59% 57% More than 12 months 26%

30% 34% 39% 6% 6%

Week Ending July 12, Over a Third of Americans Said They Were More Concerned Than They Were Last Week, Driven by California (49%), Texas (46%) and Florida (42%)

Source: IRI Surveys among National Consumer Panel representing Total US Primary Grocery Shoppers . © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 17 Working at Home Continues – with 18% Saying They Planned to Work from Home in May to 35% Working Every Day at Home in Late July

of consumers rarely or never worked 70% from home before Coronavirus… to… 40% Likely Work at Home

34%

5% 6% 3% 3%

5 or more 4 days per 3 days per 2 days per 1 day per days per week week week week week

Source: OH&S online, The WSJ– pre-COVID 19 work from home statistics; IRI Weekly Surveys among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – avg. of wave 16 7/26-7/28 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 18 Less Than 1 in 5 Parents Plan to Send Their Child Back to School Full-Time Also, almost half of parents who usually have a childcare provider for their young child continue to say they’ll wait over 4 more weeks to resume care

Back-to-School Plans Online Only / At Home 42% 50%

At the School 24% Some Days Online, 19% Some Days at School One of My Children Will Go 15% 19% to School, Another Online 1% 2% Don’t Know Yet 15% 13%

Kids Age 6-12 Teens Age 13-17

Based on what you know today about school plans in your area, what are you most likely to do for school this fall for your ch ild:

Source: IRI Survey fielded 7/24-26 among National Consumer Panel representing Total US Primary Grocery Shoppers © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 19 The COVID-19 Pandemic Affected Consumer F&B Mindset With Long Lasting Impact

What Shoppers Are Telling Us…

Spent 20 minutes or less in the Biggest challenge is either new Prepare 91-100% or of meals at home grocery store on my regular trip- meal ideas lack of inspiration 49% 44% less time than before COVID-19 49% to cook

Source: IRI COVID19 Weekly survey of primary shoppers, as of Wave 12, week ending 7/10-7/12/20 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 20 Although Consumers Have Gone Out to Dine Recently, They Are Spacing Out Time Between Visits, Presenting Opportunities for Retail

56% 6/12 - 6/15 7/10 - 7/13 45%

26% 25% 26%

17%

4% 2%

Will wait over 4 Less often than I Same amount in the Will dine out more weeks before dining did before next 4 weeks as I often in the next 4 out again did before weeks than I did before COVID-19

Source: IRI Survey fielded 6/12-6/15 among National Consumer Panel representing Total U.S. Primary Grocery Shoppers © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 21 Shoppers Favoring Fresh When Extra Money Is Available, Critical for All Retailers, Food Suppliers to Factor in Fresh in the Weeks Ahead

Buy more meat (chicken, turkey, beef, pork, etc.) 16% 21% Use of Prior Payment Buy more fresh fruits and vegetables 15% 20% Plans for Future Payment Go to restaurants or get take-out more often 5% 7% Buy more over-the-counter healthcare items 6% 7% Buy more beauty or personal care items 5% 7% Fill more prescriptions 3% 5% Treat myself / my family to more premium products 3% 5% Buy more snacks 6% 5% Buy more pre-packaged convenient meals rather than cooking from scratch 4% 4% No impact on my choices for these types of products 70% 62%

Source: IRI Survey of Primary Grocery Shoppers 7/31-8/2 among the 85% of respondents who received stimulus money © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 22 As the Pandemic Continues, Fresh Foods Remains Top of Mind

Expected Shopping Changes in RECENT PAST the Next 2 Weeks July 26 May 3

Stock Up On Pantry Essentials 30% 65%

Making Fewer, Larger 41% 35% Trips to the Store

Buying More Fresh Foods 17% 12%

Buying More Immune- 11% 13% Boosting Products None of the Above / 21% 31% No Change Expected

Source: IRI COVID19 Weekly survey of primary shoppers, as of Wave 16, week ending 7/24-28 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 23 Shoppers are Making Fewer Trips, But Spending More… 13% Winning in the perimeter remains critical for retail success Trips per Buyer – % Change vs. YA More Fresh 1%

Food Sales -3% -2% -2% -4% -4% -2% -4% Year-to-Date

Through Dollars per Trip – % Change. vs. YA 15% 11% 13% July 2020 12% 12% 12% 13% 12%

6-14 6-21 6-28 7-5 7-12 7-19 7-26 8-2

Avg Basket Size – % Change vs. YA

19% 20% 18% 18% 17% 19% 19% 17%

6-14 6-21 6-28 7-5 7-12 7-19 7-26 8-2

Source: IRI Panel 8 weeks ending Aug 2, 2020. All Outlets. © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 24 …Predominantly in Traditional Grocery and Club, Which Gained Share in a Scenario Where Less Trips Were Taken

Share of Fresh Foods Spending During Pandemic Months

4 WE 3-22-20 4 WE 8-9-20 40.0 40.9

17.0 16.2 10.2 10.7 7.6 7.3 3.6 3.3

Health / Specialty Traditional Grocery Mass & Supercenter Club Discount Grocery Grocery

Source: IRI Household Panel including fixed and random -weight, Dollar Sales Share of All Outlets Combined, Data Ending 8/9/20 (m onth to month hidden as trends did not vary widely) © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 25 The Meat Department, and More Recently Seafood, Drove Fresh Trends while Weaker Growth in Deli and Bakery Pull Down the Fresh Average

Total Store with Fresh Total Edibles Excl. Fresh Fresh Perimeter Produce Department 4 WE 03-08-20 5.7% 4 WE 03-08-20 5.8% 4 WE 03-08-20 3.6% 4 WE 03-08-20 3.1% 4 WE 04-05-20 39.3% 4 WE 04-05-20 53.8% 4 WE 04-05-20 31.3% 4 WE 04-05-20 23.2% 4 WE 05-03-20 16.2% 4 WE 05-03-20 24.0% 4 WE 05-03-20 17.1% 4 WE 05-03-20 15.6% 4 WE 05-31-20 15.6% 4 WE 05-31-20 21.0% 4 WE 05-31-20 15.4% 4 WE 05-31-20 16.2% 4 WE 06-28-20 12.3% 4 WE 06-28-20 15.0% 4 WE 06-28-20 13.2% 4 WE 06-28-20 12.8% 4 WE 07-26-20 12.6% 4 WE 07-26-20 15.3% 4 WE 07-26-20 13.0% 4 WE 07-26-20 12.6% 1 WE 07-26-20 13.6% 1 WE 07-26-20 17.0% 1 WE 07-26-20 13.1% 1 WE 07-26-20 12.8% 1 WE 08-02-20 9.2% 1 WE 08-02-20 12.0% 1 WE 08-02-20 9.4% 1 WE 08-02-20 9.4% 1 WE 08-09-20 9.4% 1 WE 08-09-20 11.6% 1 WE 08-09-20 8.9% 1 WE 08-09-20 9.5%

Meat Department Total Bakery Total Seafood Deli Department 4 WE 03-08-20 4.6% 4 WE 03-08-20 2.2% 4 WE 03-08-20 7.7% 4 WE 03-08-20 2.6% 4 WE 04-05-20 63.4% 4 WE 04-05-20 23.7% 4 WE 04-05-20 12.9% 4 WE 04-05-20 -4.0% 4 WE 05-03-20 41.0% 4 WE 05-03-20 6.8% 4 WE 05-03-20 21.6% 4 WE 05-03-20 -19.9% 4 WE 05-31-20 28.3% 4 WE 05-31-20 5.9% 4 WE 05-31-20 49.6% 4 WE 05-31-20 -14.0% 4 WE 06-28-20 21.7% 4 WE 06-28-20 6.8% 4 WE 06-28-20 45.1% 4 WE 06-28-20 -9.2% 4 WE 07-26-20 21.5% 4 WE 07-26-20 6.7% 4 WE 07-26-20 36.8% 4 WE 07-26-20 -7.5% 1 WE 07-26-20 22.6% 1 WE 07-26-20 7.0% 1 WE 07-26-20 34.7% 1 WE 07-26-20 -7.7% 1 WE 08-02-20 15.8% 1 WE 08-02-20 5.4% 1 WE 08-02-20 28.1% 1 WE 08-02-20 -8.3% 1 WE 08-09-20 14.7% 1 WE 08-09-20 5.5% 1 WE 08-09-20 24.8% 1 WE 08-09-20 -8.6%

Source: IRI, Total US, MULO, 4 week & Latest 1 week % growth versus year ago © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 26 In the Beginning, In The Next 8 Weeks, In Summer, Meat & Potatoes Center-of-Plate Cuts & Complementary Grilling (Literally) Fueled Fresh Seasonal Favorites Staples & Fresh Citrus Foods Demand Were Top-of-Mind & Veggies Did Well

Top 15 Fresh Foods with the Top 15 Fresh Foods with the Top 15 Fresh Foods with the Highest Growth vs. YA and Prior Highest Growth vs. YA, Highest Growth vs. YA, Period, 4 WE 4-12-20 8 WE 6-7-20 8 WE 8-2-20

• Bacon • Ground Beef • Deli Grab & Go • Beef Sirloin • RW Shellfish • Limes • Beef Brisket • Ground Pork Cheese • Beef • Deli Grab & Go • Beef Chuck • Beef Ribeye • Oranges • Fresh Oranges Tenderloin Meat • Mushrooms Steaks • Pork Ribs • RW Shellfish • Beef Chuck • Oranges • Lemons • Deli Grab & Go • Potatoes • Deli Grab & Go • Chicken • Deli Grab & Go • Whipped Sliced Cheese • Sausage Meat Wings Cheese Topping • Deli Grab & Go • Sweet • Fresh Cherries • Whole Bird • Beef Tenderloin • Peppers Sliced Meats Chicken Potatoes • Pork Ribs • Pork Ribs • RW & Pkg • Frankfurters • Pork • Whole Bird • Dairy Butter • Beef Ribeye Bagels • Fresh Garlic Turkey • Beef Round Shoulder • Beef Sirloin

Source: IRI POS Total Store View with Perimeter, Categories of over $100MM, data period 4 WE 4-12-20; 8 WE 6-7-20 and 8 WE 8/2/20 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 27 A Few Categories Posted Consistent High Sales Throughout the Pandemic

These Point to The New Critical “Must Get Right” Categories For Fresh Foods Going Forward c • Deli Grab and Go Cheese • Deli Grab and Go Meats • Beef Grinds, Roasts & Steaks • Pork Ribs • Oranges

• COVID-19 changed how, when, why and where consumers shop with a focus on at-home meals

• In a reduced trip and less time in store scenario, fresh foods remains critical to select and retain store sales

• In the coming months, even with economic uncertainty, fresh foods are high on the demand list for shoppers

• Top growth categories may have evolved as the seasons changed, but the need for fresh high-quality meals and easy-to-shop freshness plus food-as-medicine never waned in shopper priorities

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 29 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 30 We Have Witnessed the Convergence of Macro Fresh Trends and the Impact is the Evolution of Fresh Eating and Drinking Occasions

COOKING CONNECTED HEALTHFUL LOCAL • Food Transparency • Connected • Holistic Health • Localization • Social and Cultural Consumer • Social and Cultural • Fresh Prepared Alignment • Atomization of Alignment Foods • Localization Personalization • New Supply Chains • Holistic Health

AFFORDABILITY CONVENIENCE EXPERIENCE PLEASURE • Customization to the • Convenience • Food Transparency • Social and Cultural New Consumerism • Customization to the • Localization Alignment • Holistic Health new consumerism • Customization to • Atomization of New Consumerism Personalization • Atomization of Personalization

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 31 The Future of Fresh Foods is Reliant Upon These Essential and Experiential Roles and Will Need Varying Options to Address Economic and Health Crises Impacts

COOKING CONNECTED HEALTHFUL LOCAL

New Pic

AFFORDABILITY CONVENIENCE EXPERIENCE PLEASURE

New New Pic Pic

But For Each, Affordability and Value In Their Own “Lens” Must Be Right

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 33 The Pandemic Accelerated Sales Growth in E-Commerce; Online Presence for Fresh is Now a Must-Have, Not a Nice-to-Have New Dollar % Change vs. YA, Total E-Commerce Pic

Perishable Foods 143.0% All Other Food & Bev

Nonedible 114.9% 102.8% 103.2%

79.9% 65.3%

41.1%

4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 4 Weeks Ending 02-23-20 03-22-20 04-19-20 05-17-20 06-14-20 07-12-20 08-09-20

Source: IRI eMarket Insights Model, excludes beer/wine/spirits and RW produce, © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 34 Over 50% of Consumers Utilize Search Tools to Find What They Need Online New Shopping Behaviors During Pic Last Online Shopping Experience

I used the search tool to type in the name of a specific item I wanted 59%

I used the category menus to browse for options within a category 35%

I accessed a list of items I had bought in the past from that site, and re-ordered from that list 32%

I checked which items were on sale before making a decision on which item to choose 29%

I looked for new items to try 12%

Source: IRI COVID19 Weekly survey of primary shoppers, as of Wave 16, week ending 7/24-28 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 35 However, It is Still Hard to Buy Fresh Foods Online New Few Stores Offer Help or Inspiration; Online Shopping Experience Is Totally Different Than In-Store Pic

SUPERMARKET MASS SPECIALTY

Beef

Fresh Bread

Source: IRI Fresh COE Exercise in Phoenix, AZ week of 8/10 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 36 Learning New Skills Became a Lockdown Trend; Many Grocers Are Poised to Help New Homebound Consumers Cook Pic 68% of Consumers Are Making More Meals In the Home Now Than Before COVID-19

Initially, shoppers bought more cuts and varieties purchased, driven both by meals and supply concerns New Buyers 12 Million 12 Million 13 Million

New Buyers are also more Dollars From likely to be younger – Gen Z $450MM $275MM $225MM and Millennials – a group New Buyers less engaged with meat before Basket Size With vs. 198% 199% 207% Without

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 38 Missed Opportunity? COVID-19 Brought Millions of New Buyers to Make New Purchases – the Challenge Will Be Keeping them There New Recent Penetration, Variety Seeking Behaviors Are Eroding Pic

We need to use learnings to shape marketing and sales strategies for years to come

• Identify and deeply understand your new or light buyers during COVID-19 and what they value • Understand what they are looking for in your products and message and whether it is the same as your existing buyer base • Deliver against need and wants to the right people in the right time and right channel – all easier than ever with personalized marketing and addressable media • Engage shoppers when, where and how it matters most

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 39 As The Pandemic Continues Indefinitely, Categories Originally Neglected Have Seen Shoppers Drift Back as Their Conveniences Became Increasingly Relevant Perishables Categories with Accelerating Growth Rates 4 WE 8/2/20 Change in Growth vs. 4 WE 5/31/20 -4% pts FRESH FOODS +10% pts Refrigerated Pre-Packaged Meals +7% pts Celery +6% pts Fresh Cookies +4% pts Deli Meat +3% pts Refrigerated RTE Desserts

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 40 Takeout is Still Top of Mind for Many Time-Starved Consumers Online is the primary way to order, with 63% ordering through restaurants’ native app or website Restaurants report upwards of 75% of sales through digital

Frequency % of Consumers

Few Times a Month 29%

Once a Week 22%

Few Times a Week 25%

Multiple Times a Day 4% Have Not Placed a Restaurant 14% Order, But Normally Would Have

Source: Toast survey reported in Restaurant Dive 8/6/20 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 41 Opportunity for Retailers to Leverage their Online ‘Boom” by Offering Meals for Delivery, Pickup and Carryout Best-in-Class Approaches Are Being Utilized Across the Country

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 42 Health-Minded Consumers Did Not Abandon Their Lifestyles Due to the Pandemic, and Also Have Significant Opportunities for Fresh Foods As the Pandemic Continues, Many Health-Minded Consumers Seek Solutions

22% Finding Things That Are Quick and Healthy

18% Finding Fresh / Healthy Foodsc That Won’t Spoil Quickly 13% Finding Healthy Foods That Don’t Require a Lot of Preparation 8% Finding Healthy Foods for 1 or 2 People 4% Finding Foods That Fit Their Dietary Restrictions

to Drive Fresh Foods Categories c Two Healthiest Segments Have Increased Their Spend On Fresh Foods More Than Any Other Households In the Latest 26 Weeks Ending 8/2/20 vs. Year Ago +24% +22% Super Sensible Healthy Moms Chic

Orange Search Vitamin C Search Immunity Search

New New Pic Pic

In both July 2020 survey waves, more than half of all consumers strongly agreed they have seen food prices rise because of COVID-19 and 65% said they expect the economic crisis impact to last 12 months or longer

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 47 © 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 48 Fresh Foods Remains In-Demand And Ripe With Opportunity Companies who can rapidly adapt will win in the world reshaped and reimagined by COVID-19 Surgically and strategically evaluate pricing and trade spend in the context of this year’s buying behaviors

Deeply understand your consumer – both the new/expanded and the core base

Utilize what benefits and motivations your products or departments have to provide value – not just price Now is the time for fresh to look beyond individual categories and Leverage targeted, personalized marketing vehicles for commodity-based selling to bring most valuable ROI and impact with your audience total store solutions and creative connections to consumers

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 49 Insights and Strategic Guidance for Better Decisions IRI’s Online Resources Include Real-Time Updates and Weekly Reports That Track the Impact of the Virus on CPG and Retail

The IRI COVID-19 lmpact Includes COVID-19 impact analyses, dashboards and the latest thought leadership on supply chain, consumer behavior and channel shifts for the U.S. AND international markets.

IRI CPG Economic Indicators, Including the IRI CPG Demand Index™, IRI CPG Supply Index™ and IRI CPG Inflation Tracker™ Accessible through the insights portal to track the daily impact of COVID-19. This includes top-selling and out-of-stock categories across the country and consumer sentiment on social media.

The IRI CPG Demand Index™ provides a standard metric for tracking changes in spending on consumer packaged goods. It measures weekly changes in consumer purchases, by dollar sales, against the year-ago period across departments, including fixed and random weight products, grocery aisles and retail formats. The IRI CPG Demand Index™ is available for eight U.S. regions, all U.S. states, UK, France, Italy, Germany and the Netherlands.

CLICK HERE FOR MORE!

IRI COVID-19 IMPACT THE CHANGING SHAPE ASSESSMENT REPORTS OF THE CPG DEMAND CURVE RECESSION PROOF YOUR BUSINESS

Jonna Parker [email protected]

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 54 IRI Global Headquarters CONTACT US 150 North Clinton Street Chicago, IL 60661-1416 FOR MORE [email protected] INFORMATION +1 312.726.1221 Follow IRI on Twitter: @IRIworldwide