Frozen Momentum and Growth Opportunities

Home , Frozen (House), Frozen meal, Spin (House)

How America Eats Frozen Food Trends: Strategies for Success in a New Consumer Environment

Sally Lyons Wyatt – Executive Vice President, Client Insights Christine Boule – Principal, Client Insights Alison Bodor - President & CEO, American Frozen Food Institute

August 3, 2021 Today’s Objective

Frozen has yielded unprecedented growth as many consumers entered the segment or increased their consumption within COVID-19.

We’re going to review some key trends within Frozen which have resonated with those consumers and which are likely to continue to grow, or may need to pivot in terms of positioning in order to win in the future.

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 2 Throughout the COVID-19 Lifecycle, Food & Beverage, and Frozen In Particular, Have had the Benefit of Strong Tailwinds We’ve All Seen and Experienced The Headlines During COVID-19…

Frozen foods become ‘sales powerhouse’ during coronavirus pandemic https://www.supermarketnews.com/center-store/frozen-foods-become-sales-powerhouse-during- coronavirus-pandemic

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 3 The Frozen Dept. Has Maintained Momentum, Outpacing Total Food & Beverage; B&M Sales Outpace F&B, While E-Commerce Lags Slightly

Dollar % Change vs. YA Total F&B Frozen Refrigerated General Food Beverage Total Omnichannel 52 WE 6-13-21 +7.4% +9.9% +7.2% +5.2% +10.9%

Total B&M 52 WE 6-13-21 +3.7% +6.2% +4.2% +1.1% +7.5%

Total E-Commerce 52 WE 6-13-21 +52% +46% +64% +52% +49%

Source: IRI OmniMarket – 52WE 6-13-21 vs YA | 52WE 6-14-20 vs YA © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 4 Frozen Continues to Lead in Unit Sales Growth Across F&B; Dollars are Outpacing Unit Sales, Indicating Much of the Growth is Driven by Price

Total Omnichannel Total F&B Frozen Refrigerated General Food Beverage Dollars 52 WE 6-13-21 +7.4% +9.9% +7.2% +5.2% +10.9%

Point Change vs. YA -2.3 -5.1 -2.6 -4.4 +3.9

Units 52 WE 6-13-21 +1.2% +4.6% +2.3% -1.0% +4.2%

Point Change vs. YA -3.5 -4.2 -4.2 -6.3 +2.2

Source: IRI OmniMarket – 52WE 6-13-21 vs YA © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 5 However, Frozen Hasn’t Seen as Fast of a Price Increase as Total F&B, Making the Department Attractive to Consumers as Prices Are Rising Across the Store Compared to Most Fresh Direct Counterparts, the Price of Frozen Has Not Risen as Quickly Price Per Unit Price Per Unit vs. YA % Change vs. YA Fresh Meat +4.5% +2.9% Frozen Meat +3.9% Fresh Seafood +3.5% Frozen Seafood +3.0% +3.1% Fresh Fruit +0.5% Frozen Fruit +2.2% +3.6% Fresh Vegetables +0.9% Frozen Vegetables -0.8%

Source: IRI POS, Total US – MULO, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 6 To Date, Consumers Are Spending More as Promotion Reduction and Premiumization Increased Overall Price Paid, But That May Change Going Forward

Decomposition of Price per Volume % Change vs. YA / Grocery Channel / 28 WE 7/11/21 Example Frozen Categories Δ vs 28 WE 12/27/20 Increased Reduction in Mix Shift/ Tot Price/ Everyday Price Promotion Premiumization Vol chg. Mix Shift/ Premiumization Poultry -0.7% 1.5% 7.6% 8.4% +6.5

Frozen Novelties 0.1% 2.2% 3.6% 5.9% +1.5

Breakfast Food -1.5% 1.7% 3.9% 4.1% +2.3

Meat -0.9%0.8% 4.2% 4.1% -1.3

Processed Poultry -1.3% 3.7% 0.7% 3.1% +0.3

Appetizers -0.5% 1.1% 2.4% 3.0% +1.6

Ice Cream -0.7% -0.1% 3.6% 2.9% 0.0

Dinners/Entrees 0.0% 1.1% 1.7% 2.8% +0.4

Seafood -0.5% 1.1% 1.7% 2.3% -0.1

Pizza -0.3% -1.1% 2.6% 1.2% +1.1

Plain Vegetables -0.2% -0.3% 1.5% 0.9% -0.4

Note: Everyday price at item level. Promotions includes promotion frequency and depth (driven by frequency). Mix shift refers to different in product mix vs. YA, driven by shifts to more premium brands (positive effect) countering shift to larger pack sizes (negative effect). Source: IRI POS 28 weeks ending 7/11/21, 28 weeks ending 12/27/20, Grocery channel. IRI Strategic Analytics.. © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 7 Consumers are buying more frozen items, more often

Resulting in a nearly +10% increase in spend per buyer, compared to the time period which included COVID-19 panic buying!

Frozen Dept $ Growth Share Contribution Frozen Department Buyers $/Trip Frequency Change 3.7 +2.2 pts 5.9 Measure Current vs. YA % HH Buying 98.9 -0.2 36.8 +14.9 pts 51.7

Dollars per Buyer $611.18 +$50.95

Product Trips 59.5 -17.1 pts per Buyer 49.1 +1.9 42.4

Unit Sales 157.7 +7.9 per Buyer 52WE Jun 2020 52WE Jun 2021

Source: IRI CSIA (Panel), Total US – All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 8 These New Buyers Are Comprised of Younger and More Diverse Consumers, and Households With Kids Are Spending More Than Their Fair Share Cohorts Are Growing Faster Than Average in Frozen

Families African Acculturated Younger Cohorts: Asians with 1+ Child Americans Hispanics Gen Z + Millennials

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 9 These Cohorts are Specifically Spending More Than Their Fair Share in E-Commerce and Club, the Two Channels That Have Gained Share Within Frozen Dollar Share Change vs. YA by Outlet | Total Frozen

Over Indexing On Online $ African Americans, Acculturated 1.2 Hispanics and Families Raising Teens

0.1 0.0

-0.1 -0.1 -0.3

-1.6 Internet Club Convenience Drug Dollar Mass Food

Over Indexing on Club $: Asians, Acculturated Hispanics and Families Raising Teens, Gen X, 1+ Child

Dollar Index = Dollar Distribution / Panel Distribution *100; IRI CSIA, Total US – All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 10 Today, E-Commerce Has the Largest Share of Frozen Meal Components, Whereas Categories Not Related to Meals / Higher Variety Seeking Sell More in B&M Frozen is still primarily sold in B&M. How can retailers approach variety-seeking online differently? Top 5 Frozen Categories Dollar Share of Sales

E-Commerce Brick & Mortar Total Frozen 12.4 Total Frozen 87.5 Meat 32.7 Processed Poultry 95.3 Poultry 25.6 Novelties 94.8 Dinners/Entrees 14.6 Pies 93.1 Breakfast Food 13.9 Ice Cream / Sherbet 93.0 Plain Vegetables 12.9 Appetizers/Snack Rolls 91.5

Source: IRI OmniMarket - Top 5 Frozen Categories by Share of Sales – 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 11 Thinking About Maslow’s Hierarchy, Frozen is Well Positioned to Continue to Meet Evolving Consumer Needs Moving Through and Beyond COVID-19 Frozen Can Deliver Upon Convenience, Variety, Value and Personalization

Post COVID-19 Self Actualization Food As Medicine Priorities Functional Ingredients, Personalization

Elevated Experiences, Flexibility, Benefits Esteem Interesting Flavors, Indulgences, Minimal Waste, Sustainability, Aligned to Consumer Needs

Love, Belonging Meals with Family & Friends Reconnecting

Safety Value Shopping Did not come to fruition, but could still happen

The desire to stock up/spend less time in store led new consumers Food, Water, Shelter to frozen, and existing consumers to buy more frozen

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 12 • High value with prices rising more slowly Across the than other departments, and consumers are Frozen feeling the squeeze across the store. • Younger, more diverse consumers have Department, discovered (and returned) to Frozen yielding There Are Key faster than average growth. • Frozen provides flexibility without waste Attributes to especially for larger households, and Celebrate, benefits aligned to needs. • eCommerce opportunity to grow snack Communicate sales, as Frozen lags other departments, and Consider and consumers tend to buy Frozen meal components online, and snacks and in Order to Stay desserts in store. Top of Mind with • As we move out of COVID-19, consumer needs will continue to evolve and Frozen Consumers is well positioned to meet those needs through variety, and convenience.

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 14 Category Share Performance Within Frozen Has Shifted Since COVID-19, Benefitting Breakfast and Novelties, but Slipping for Pizza, Veg, Meat and Poultry Share of Frozen Change vs. YA | 52 W Including Peak COVID-19, 52 W Post Peak COVID-19

Apps & STICKY Snacks Processed Seafood Meat Potatoes/ Poultry Vegetables Onions Pizza SLIPPERY 19 - Poultry Fruit Novelties

Soups/ REBOUNDING Ice Sides/ Cream/ Breakfast Sherbet Other

SLUMPING Dinners Entrees Note: Size of Bubble Based on Share of Frozen 52WE 6.13.21 52 WE 6.14.20 | Incl. Peak COVID PeakIncl.| 6.14.20WE52 52 WE 6.13.21 | Post Peak COVID-19

IRI, Total US MULO, COVID Defined: 52WE 6.14.20; Post COVID Defined: 52WE 6.14.21, Includes Frozen Categories with >2% Share in the 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 15 The View Looks Different YTD, with Dinners / Entrees Rebounding, and Slippage for All Other Segments, Some Possibly Attributed to Seasonality Share of Frozen Change vs YA | YTD 2021 vs. Same Period 2020 STICKY 19

- Potatoes/ Onions Apps & Seafood Vegetables Snacks

SLIPPERY Meat Processed Poultry Poultry Pizza Fruit

Novelties REBOUNDING Ice Cream/ Soups/ Breakfast Sherbet Sides/ Other

Dinners SLUMPING Entrees Note: Size of Bubble based on

YTD WE 7.12.20 vs YA | Incl. Peak COVID Peak Incl. | YA vs 7.12.20 WE YTD Share of Frozen YTD 7.11.21 YTD WE 7.11.21 vs YA | Post Peak COVID-19

IRI, Total US MULO, YTD WE 7.11.21 vs YA, Includes Frozen Categories with >2% Share in the YTD WE 7.11.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 16 Keep in Mind That Losing Share Within Frozen Doesn’t Mean That Category Sales Have Gone Down vs. YA, as All of Elevated Sales Are Still Occurring Across the Store, as These Categories Continue to Grow Many Consumers Continue to Eat More Meals at Home Dollar Sales % Change vs. YA 18.9%

15.1% 13.5% 12.1%

8.2% 6.6% 5.3% 3.5% 3.2%

IRI POS, Total US - MULO © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 17 Taking a Closer Look Across Categories Experiencing Different Growth Trajectories, There Are Pockets of Growth and Decline That Present Key Opportunities Within Frozen

Appetizers / Dinners / Ice Cream/ Seafood Novelties Breakfast Pizza Snacks Entrees Sherbet Social media Pivot from Portion Convenient, Familiar Natural, Playful OOH control, and satiating Exploration personalized flavors, alternative to unique offerings something Social formats for everyone gathering occasions

Outperformed 9.7 Dollar % Change the Frozen 19.8

Department 0.6 Buyer % Change By 2x 2.7

Through 4.8 $ / Trip % Change 5.6 New Buyers and Increased 4.1 Trips / Buyer % Change 10.5 Trips

Source: IRI CSIA, Total US - All Outlets © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 19 Frozen Seafood’s Gains in the Category Has Been Driven by Continued Shift Towards Shellfish Options With Shrimp as it’s Key Driver Total Multi-Outlet | Frozen Seafood: $7.2B, 19% Species $ Share of Seafood

19 CRAB - 0.8% SHRIMP Crab, Scallops, Salmon 0.6% SCALLOPS and Shrimp Are Also 0.4% Growing Among New

POLLOCK CATFISH STICKY SLIPPERY 0.2% Frozen Seafood Buyers CRAWFISH LOBSTER New Buyer % Growth 0.0% -1.2% -0.7% -0.2% 0.3% 0.8% 1.3% Crab 37% -0.2% Scallops 37% ROC -0.4% SALMON COD Salmon 23% -0.6% TILAPIA Shrimp 16% SLUMPING

-0.8% REBOUNDING Cod 4% 52WE 6.14.20 | Including| COVIDPeak6.14.20 52WE 52WE 6.13.21 | Post COVID-19 Pollock 3%

Source: IRI, Total US Multi Outlet; COVID Defined: 52 WE 6.14.20; Post COVID Defined: 52 WE 6.13.21; Frozen Seafood Species; Source: IRI CSIA, Total US - All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 20 Social Media has Played a Big Role in Seafood Growth, as There were Substantial Increases in Mentions of Seafood During Throughout the COVID-19 Cycle

2,000K Start of Largest Seafood Largest Seafood Mentions During COVID-19 COVID-19 Category Mentions Stock-Up Shutdown Reopening Vaccine 1,750K (3/20 – 4/20) (5/20 – 7/20) (8/20 – 12/20) (1/21 – 3/21) 1,500K Shrimp 8,000K +51% 1,250K Fish 6,000K +48% 1,000K 750K Salmon 4,000K +90% +83% 500K Seafood +3% 2,000K 250K Crab 0K 0 07/19 01/20 07/20 01/21 Seafood Fish Crab Shrimp Salmon

*“Other” is a combo of “Pollock”, “Tilapia”, “Catfish” mentions / Source: Infegy, Data ending from 6.19 to 6.21, English Language, Total U.S. – Twitter, Instagram, Facebook, Pinterest / IRI Growth Consulting Analysis. © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 21 Trending Seafood Social Media Posts Popular Seafood Healthy never I’m on the Do you know what is looked or tasted so Seafood Diet 🍴🍴 low carb? Shrimp is good!😍😍😋😋 Our I see food low carb! And for that, Conversations house smoked and I eat it – I am eternally grateful! salmon, ancient Delicious crab Our day involved Appear to grain & broccoli deviled eggs defrosting the shrimp salad with nuts, – a Twitter user and making some low seeds & avocado! carb cocktail sauce. Be Centering 🙌🙌🙌🙌🙌🙌 Appetizer for dinner – an Instagram user and all is well. Around Maybe I'll cook tomorrow… maybe. Healthier – an Instagram user Eating and Share of Joyful Posts Share of Joyful Posts Share of Joyful Posts Natural Ingredients

Source: Infegy, Data ending from June 2019 to June 2021, English Language, Total US – Twitter , Instagram., Facebook, Pinterest IRI Growth Consulting Analysis / Last 2 YE 6.26.2021 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 22 Sites from TikTok and Instagram, to Retailer Pages Have Made Seafood More Approachable Through Offered Cooking Lessons and Demonstrations

#BraisedSalmon 5.6M views Among top viral recipe videos on TikTok Creamy Garlic Tuscan Salmon Among most liked 2020 recipes on HuffPost Instagram account

Tasty Pinterest Seafood Board (Suppliers and retailers post recipes)

Sources: Retailer Website Recipe Guides (Kroger, Albertsons/Safeway, Meijer), TikTok, Pinterest, Instagram, © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 23 While Many Home Chefs Emerged Within COVID-19, Many Relied Upon Frozen to Deliver Convenient OOH Alternatives Visible in Growing Appetizer / Snack Formats As people are able to reconnect in person, is there an opportunity to pivot messaging to easy and convenient options for social gatherings?

+28% Vegetables and Multi- Serve +16% +11% +8% Were Among the Formats Growing Share +1% +1% +1%

IRI POS, Total US MULO, 52WE 6.13.21 vs YA; 52WE 6.14.20 vs YA © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 24 Both ‘Americanized’ Favorites and Authentic / Regional Offerings Drove Growth in Asian Apps / Snacks, While Buffalo Propelled Hot / Spicy

Asian +28% Hot / Spicy +28%

Familiarity Dominates “Buffalo” Rules Spicy

of Asian share driven by of hot / spicy share Potstickers and Wontons driven by Buffalo SKUs Regional & Authentic Growing Styles Growing Faster Than Total Asian 394% “Authentic” 137% Korean 71% Shanghai 51% Vietnamese

IRI POS, Total US MULO, 52WE 6.13.21 vs YA; Share gains ranked by absolute share change in the latest 52 weeks versus YA © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 25 Pizza was an Obvious Crowd Pleaser During Lockdown, but Delivery Quickly Rebounded and a Year Later, Sales are Growing Slightly Faster Than Pre-COVID Frozen Pizza Dollar Sales YoY % Chg

21.9 %

4.8% 3.1% 3.5%

2018 2019 2020 52WE 6.13.21

Source: IRI Market Advantage (POS), MULO, IRI CSIA (Panel), Total US – All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 26 Non-Traditional Crusts with Traditional Toppings Are Driving Pizza Growth, as Consumers are Exploring with a Mix of Something New and Something Familiar

Among the Top 20 Pizza SKU’s Growing Share: 15 Had Non- Traditional Crusts: • Croissant 11 were Pepperoni • Deep Dish • Stuffed 3 were Supreme • Brick Oven 3 were Cheese • Crispy Thin 2 were Single Serve • Cauliflower • French Bread 1 was BBQ Chicken

IRI, Total US MULO, New Items and Innovation launched in the L2 years © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 27 Look For an Emergence of Products Which Leverage Growing Trends to Infuse Excitement into the Pizza Category

Occasions | Flavors / Formats Where are there Innovation Opportunities to Explore?

Sweet

Hot & Spicy

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 28 As Consumers Continue to Eat More Occasions in Home, Dinners / Entrées – Driven by Single Serve Are Outpacing 2020! Frozen Dinners / Entrée Dollar Sales YoY Dollar Share of Category $ Sales (B) Change vs. YA

$10.5 $10.4 21.6 -0.7 Multi Serve 29.0 -0.8 Handheld (non Breakfast) $9.3 Single Serve 49.4

+1.4 2019 2020 52WE 6.13.21

Source: IRI Market Advantage (POS), MULO, IRI CSIA (Panel), Total US – All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 29 Growing and Declining Claims Within SS Meals Follow an Evolving Perception of Healthy From Low Fat / Low Cal to Natural, Portioned, and Low Carb Options Health & Wellness Claims I Single Serve Frozen Dinners / Entrees

Growing Claims

Declining Claims

*Not exhaustive list

Source: IRI POS; Total US – MULO; 52WE 6.13.2021 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 30 Comfort / Traditional SS Meal Brands Are Winning Across Cohorts, and ‘Adventurous’ Gained Traction as More Consumers Seek Global Flavors Top 20 Brand Styles by Dollar Sales Change Single Serve Frozen Dinners / Entrees

Getting Raising Established Young Retired Started Teens Workers Total HH’s Families (no kids, age (no kids, (have (no kids, age (kids <12 yrs) 45+, no FT) age <45) 12-17 yr olds) 45+, FT empl)

Comfort Food Traditional, Full Fat / Calorie Meals

Adventurous Adventurous Healthy Halo Adventurous Non- Non- Health Spin Non- European European European Largest Growth YA vs. Ethnic Ethnic Ethnic Cuisine Cuisine Cuisine

Source: IRI CSIA (Panel), Total US – All Outlets, 52WE 6.13.21 $ Sales 52WE 6.13.21 & YA > $1MM Total HH © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 31 Within Breakfast, Handhelds Dominate Dollar Growth and as Consumers Go Back to Mobile Lifestyles, Convenience Will Be Paramount in Retaining Buyers The Frozen Breakfast Dollar Share Change vs. YA / convenience *Hot & Cold Cereal Shared to Breakfast Aisle of cereal will become a 1.0 0.7 threat 0.2 0.0 -0.2 to frozen breakfast as people get back -2.2 Entrees Handhelds Other Waffles Hot Cereal* Cold Cereal* to work Breakfast and school $MM Sales Change +$140.2 +$252.9 +$23.1 +$31.1 -$52.2 -$343.8

IRI POS, Total US MULO, 52WE 6.14.20, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 32 Among Breakfast Handhelds, Sandwiches Are Driving Dollar Growth in the Last Year, But the More Portable Formats Are Growing the Fastest Handheld Breakfast Growth Segments

+$165MM +$44MM +$22 MM +$16MM +$7.6MM

IRI POS, Total US MULO, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 33 Larger Packs Are Driving Growth Within Handhelds in a Lower Variety Seeking Category; There May Be an Opportunity for Shelf Stable Burritos / Wraps in Multipacks

Variety Seeking is Notably Lower in Dollar Sales ($MM) Change vs. Breakfast than in SS Dinners / Entrees 52 WE 6.13.21 YA ($MM) Avg # SKU’s Per Buyer Key Frozen Meals 8ct $507 +$90.3

Breakfast 4.2

12ct $461 +$82.8 Pizza 4.3

Single Serve 1ct $153 > 80% = +$41.7 Dinners / 7.8 Burritos Entrees & Wraps

IRI POS, Total US MULO, 52WE 6.13.21; IRI CSIA (Panel), Total US All Outlets, 52WE 6.13.21 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 34 Leverage Relevant Claims and Attributes to Win Breakfast; Gluten Free, Non-GMO, Whole Grains, Low Carb, While Balancing the Need for Indulgence Growing Attributed Within Frozen Breakfast

No / Low / Less Sugar

No / Low / Less Net Carbs

IRI, Total US MULO, New Items and Innovation launched in the L2 years © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 35 From a Total Frozen Desserts Perspective, Novelties Have Been

Chipping Away at Share, But Spend Frozen Novelties Buyers Increased Their Spending per Buyer on Each is Nearly Equal by Nearly 3x the Spend of Ice Cream Buyers Dollar Share

40.3 40.0 41.3 43.3 44.3 46.0

59.7 60.0 58.7 56.7 55.7 54.0

2016 2017 2018 2019 2020 52 w/e 6/13/2021 $ Ice Cream $ Novelties 67 $ Per Buyer 65 $ Per Buyer Ice Cream Frozen Novelties

Source: IRI Consumer Panel; Total US All Outlets; 52 WE 6.13.21 vs. YA © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 36 Novelties Are Appealing Because They Can Uniquely Offer Portion Control and Snackable Formats, Which We See in Recent Innovation Items In the Past Year, > 70% of Unit Sales Change in the Frozen Desserts Category Have Come From Novelties

Unique Flavors More Bites and Nuggets for Permissible Indulgence

Mochi Variety of Plant Based Options Keto and Diet Friendly

© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 37 Don’t Count Ice Cream Out, as it’s Still the Category Share Leader, and New Innovation Items Also Cater to Unique Flavors and Trending Attributes

Pure Indulgence Unique Flavors Plant Based Options Functional fully loaded may not be just for dessert Almond, Oats, Sunflower Seed Butter & more

Diet Friendly Keto Friendly Hemp Lab-Made Alcohol Inspired low sugar low carb labeled animal free

• Ensure to implement optimal price and assortment (including mix of value and premium) for the diverse Frozen audience • Social media has become a key source of information for consumers: o Recipe sharing and tutorials help fuel the at-home chef trend, meal and holiday plans, and continue co-promoting and merchandising in aisle o Use Social for product, sustainability efforts, nutrition & wellbeing benefits and store news, as well as a fun and easy to use way to connect with consumers • As consumers become more mobile, priorities and needs will evolve: o Create out-of-home replacement messaging to easy, convenient options for reconnecting with friends and family o Convenience and quality are key to maintaining and even winning occasions from out-of-home and other parts of the store • Leverage the competitive advantage of a longer shelf life to meet consumers variety seeking needs

• Global flavors and formats are trending across the store and Frozen is no exception: • Take advantage of younger and more diverse households’ quest for ethnic and more adventurous flavors (e.g., hot / spicy and Asian) • Capitalize on hot to cold formats such as egg rolls and tamales to ice cream with benefits since they are gaining traction • Continue and/or make Innovation a priority to fuel Frozen’s growth trajectory • Stay attuned to consumer shifts in their health focus like the movement from low fat and low calorie to natural, portion control, and personalized options such as low carb or gluten free • Don’t forget to have fun! Consumers love to ‘discover’ new taste experiences and textures

Sally Lyons Wyatt Christine Boule [email protected] [email protected]

Alison Bodor [email protected]

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