Holiday 2019 2019 – 107 Years in Premium Confection…and growing. ALMOND ROCA® Buttercrunch created Significant investment in ROCA® manufacturing and packaging equipment ® Introduction of ROCA Buttercrunch2003 evolved into a family of Award Winning ROCA ® Flavors ROCA® THINS Harry Brown and J.C. ALMOND ROCA® is Haley found Brown & sealed in the now-famous MACADAMIA ROCA® Haley in Tacoma, WA pink tin, to extend shelf life launched in Hawaii, Introduction of in 1912 Singapore and China Sea Salt CARAMEL ROCA® 1912 1916 1923 1927 1941-1945 1980s 2000 2003 2009 2012 2015 2016 2017 MOUNTAIN® Bar ALMOND ROCA® ® introduced: a chocolate emerges as a favorite 100 YEARS MOUNTAIN and nut confection with treat of soldiers during New Packaging Design THINS launch to a vanilla-cream center WWII New DARK ROCA® expand on the New DARK growing Chocolate CHOCOLATE Snacking! PEPPERMINT ROCA® Finish-packing established in mainland China for Chinese market SQF – Safe Quality Food Brown & Haley is a Safe Quality Food certified food manufacture. 2018 score 96% Good Rating. SQF (Safe Quality Food) is the global food safety initiative used as benchmark for food safety standards. 3 2019 Holiday Presentation V2 02/06/2019 ROCA®– The Original Buttercrunch Special Treat • Distinctive Confection. A special treat that will delight your customers, and those they care about. • Premium Ingredients. Made with fine, fresh ingredients such as local butter, California Almonds and pure vanilla. • Sensational Taste. Master Confectioners create an irresistible taste and texture from butter, nuts and a special blend of cacao beans. • Memorable Packaging. Luxuriously packaged in iconic pink, with formats for gifting, sharing and self-indulgence. • Meaningful Promotions. Programs to match premium confection category price points, and the best value in ROCA® Buttercrunch premium confection. is a holiday favorite. Customers keep • Gluten Free, No Preservatives, Halal & Kosher Dairy coming back for the irresistible taste. • SQF Level 2 Certified Facility. 4 2019 Holiday Presentation V2 02/06/2019 Made from Natural, Premium Ingredients Cacao from Africa and Central America Almonds from California Butter from Washington Premium Ingredients Pure Confection • California almonds • No artificial colors, flavors or preservatives • Fresh local butter • Kosher • Signature blend of cocoa beans • Halal • Artisan-roasted coffee • Gluten Free • Tropical cashew nuts • Sealed in nitrogen for freshness • Pure vanilla • Zero Trans Fat 5 2019 Holiday Presentation V2 02/06/2019 ROCA® Buttercrunch is stocked nationally, across all retail channels. And MANY regional retailers too! ALMOND ROCA® Ranks high with US Food Retailers. ALMOND ROCA® is a top item in the Food Channel nationally, the #7 ranked Premium Chocolate Item in US Food retailers • Based on Sales per Point of Distribution, ALMOND ROCA ® Canister is the #3 Premium Chocolate SKU in MULO • The ROCA ® Brand responds extremely well to promotion, delivering 2.5x category lift when featured and displayed, and outpacing other similar chocolate SKUs Mid-priced and Large Items were very popular with consumers, driving the highest growth in the Premium segment during Holiday 2018. • Gift items averaging a retail of $6.00-$8.00 grew 24.4% Total Chocolate Sales increased .6% for 2018, representing 59% of total candy • Everyday Chocolate category sales were up 1.4% • Seasonal Chocolate, with a 32% share of total chocolate sales, enjoyed growth of 1.3% in the Christmas segment During Holiday 2018, Premium Confection grew 5.6%, representing a 19.3% share of overall Chocolate during the Holiday Season • Milk continues to be the largest Premium Segment at a 43% share, growing 3.8% • Peppermint is a high-demand flavor, up 14.6% Sources: IRI 52weeks ending 12/30/2018 & 7 IRI 8 weeks ending 12/30/2018 2019 Holiday Presentation V2 02/06/2019 Mid-priced and larger size gifts are up! $26.5 Million over last year! • The Giftables and Large Gifts categories captured most of the dollar growth • Mid-priced Giftable items (avg retail $6.00 to $8.00), reported the largest growth, at 24.4%. • Large Gifts grew nearly $14 million the largest dollar gain year over year. Dollar Sales 8 wks Dollar Sales 8 wks Premium Segment Nov Dec 2018 Nov Dec 2017 $ Change % Change $0.00 to $2.00- Count Goods $15,198,551 $16,908,486 -$1,709,934 -10.1% $2.00 to $3.00- Bars $12,816,827 $10,980,893 $1,835,934 16.7% $3.00 to $4.00- Bags and Small Boxes $48,197,542 $47,459,980 $737,562 1.6% $4.00 to $6.00- Low-priced $187,744,959 $192,589,810 -$4,844,851 -2.5% $6.00 to $8.00- Mid-priced $64,203,967 $51,617,984 $12,585,982 24.4% $8.00+ Large Gifts $117,141,832 $103,183,707 $13,958,125 13.5% Premium Grand Total $445,303,678 $422,740,860 $22,562,818 5.3% ROCA® Large Gifts $9.99 to $15.99 ROCA® Mid-priced $6.00 to $6.99 Source: IRI 8 wks ending 12/30/2018 8 2019 Holiday Presentation V2 02/06/2019 ROCA® The Original Buttercrunch Toffee Top Selling Canister List Case Cost $37.98 List Unit Cost $4.22 SRP $6.99 All Canisters ship in Margin 39.6% Display Ready Penny Profit $2.77 Corrugate. Item # Description Item UPC Case Pack Case UPC Available To Ship 0568 10 oz. ALMOND ROCA® Canister 0 41770 05680 4 9 0 41770 10563 2 NOW 0684 10 oz. DARK ROCA® Canister 0 41770 03460 4 9 0 41770 10624 0 NOW 0569 10 oz. CASHEW ROCA® Canister 0 41770 05690 3 9 0 41770 10564 9 NOW 0567 10 oz. MOCHA ROCA® Canister 0 41770 05740 5 9 0 41770 10562 5 NOW 0664 10 oz. SEA SALT CARAMEL ROCA® Canister 0 41770 06640 7 9 0 41770 10618 9 NOW 5859 10 oz. DARK CHOC. PEPPERMINT ROCA® Canister 0 41770 59190 9 9 0 41770 56630 3 8/1/2019 Pricing based on 500 lb. minimum shipment FOB Destination Dock 9 2019 Holiday Presentation V2 02/06/2019 Nationally, ALMOND ROCA® Canister is ranked #7 in Total FOOD sales. ® • ALMOND ROCA sales grew 8.9% YOY. FOOD • It is a necessary part of any Holiday or Everyday set. Dollar Avg N- Avg Average Price Sales Promoted Promoted Dollar Sales Unit Sales Weekly ACV per %Change Price Per Price Per Distribution Unit Product vs YA Unit Unit FERRERO ROCHER MILK CHOCOLATE HZLNT BALL HAZELNUT ROUND 5.3 OZ - 0009800000712 $6,665,076 7.1% 1,872,933 77.28 $3.56 $4.54 $3.41 GHIRARDELLI SQUARES CHRISTMAS CHOCOLATE CANDY SQUARE 7.9 OZ - 0747599322191 $3,861,516 -8.8% 708,529 52.15 $5.45 $6.03 $5.29 FERRERO ROCHER MILK CHOCOLATE HZLNT GIFT BOX CHOCOLATE 10.6 OZ - 0009800124011 $3,231,003 8.2% 332,492 40.02 $9.72 $11.43 $9.15 FERRERO ROCHER MILK CHOCOLATE HZLNT BALL HAZELNUT ROUND 1.3 OZ - 0009800123011 $3,230,754 10.5% 2,373,110 82.38 $1.36 $1.49 $1.28 FERRERO COLLECTION ASSORTED CHOCOLATE GIFT BOX ASSORTED 4.6 OZ - 0009800200411 $2,229,839 4.8% 610,554 53.23 $3.65 $4.01 $3.56 LINDT LINDOR MILK CHOCOLATE TRUFL BALL TRUFFLE ROUND 5.1 OZ - 0037466015842 $2,139,165 -18.4% 582,303 55.41 $3.67 $4.12 $3.56 BROWN & HALEY ALMOND ROCA CHCLT BTRC TF ALMN BTTR CRNCH 10OZ 0041770056801 $2,012,389 8.9% 431,541 24.58 $4.66 $5.28 $4.54 LINDT LINDOR ASSORTED CHOCLT TRFL BALL TRUFFLE ROUND 5.1 OZ - 0037466015851 $1,790,915 -15.1% 484,162 51.25 $3.70 $4.13 $3.60 LINDT LINDOR ASSORTED CHOCLT TRFL BALL TRUFFLE ROUND 15.2 OZ - 0009542015191 $1,616,403 52.2% 169,839 42.80 $9.52 $10.25 $9.22 LINDT EXCELLENCE DARK CHOCOLATE BAR RECTANGLE 3.5 OZ - 0037466017631 $1,539,097 9.0% 582,294 70.16 $2.64 $2.93 $2.46 FERRERO ROCHER MILK CHOCOLATE HZLNT GIFT BOX CHOCOLATE 7.9 OZ - 0009800120941 $1,523,370 -2.5% 225,262 35.06 $6.76 $7.54 $6.49 LINDT LINDOR MILK CHOCOLATE BAR RECTANGLE 1.3 OZ - 0037466056251 $1,519,704 11.1% 1,482,174 64.58 $1.03 $1.09 $0.98 GHIRARDELLI SQUARES DRK CHCLT PPRMNT BRK BARK PEPPERMINT SQUARE 7.7 OZ - 0747599322211 $1,512,704 15.3% 277,639 42.50 $5.45 $6.07 $5.17 MERCI CHRISTMAS CHOCOLATE CANDY RECTANGLE 7 OZ - 0072799035572 $1,448,450 10.4% 299,197 40.25 $4.84 $5.18 $4.65 LINDT EXCELLENCE DARK CHOCOLATE S SLT BAR SEA SALT RECTANGLE 3.5 OZ - 0037466039411 $1,394,901 9.8% 519,521 68.59 $2.68 $2.95 $2.51 LINDT LINDOR MILK CHOCOLATE TRUFL BALL TRUFFLE ROUND 15.2 OZ - 0009542015201 $1,387,486 45.9% 149,503 39.78 $9.28 $10.05 $8.95 GHIRARDELLI SQUARES HOLIDAY CHOCOLATE CANDY SQUARE 8.95 OZ - 0747599312401 $1,364,783 -23.5% 252,051 37.13 $5.41 $5.97 $5.25 GHIRARDELLI SQUARES MILK CHOC CARAMEL PIECES CARAMEL SQUARE 5.32 OZ - 0747599306511 $1,359,910 -6.4% 368,133 64.55 $3.69 $4.01 $3.54 FERRERO COLLECTION ASSORTED CHOCOLATE GIFT BOX CHOCOLATE 9.1 OZ - 0009800200511 $1,309,079 7.8% 135,215 30.31 $9.68 $11.09 $8.82 GHIRARDELLI SQUARES HOLIDAY CHOCOLATE GIFT BOX 8.25 OZ - 0747599322281 $1,261,377 -32.0% 235,565 37.36 $5.35 $5.96 $5.16 LINDT LINDOR CHRISTMAS CHOCOLATE CANDY ROUND 8.9 OZ - 0009542037231 $1,258,588 244,475 16.22 $5.15 $5.83 $5.10 LINDT EXCELLENCE DARK CHOCOLATE BAR RECTANGLE 3.5 OZ - 0037466042691 $1,249,250 7.8% 478,824 62.68 $2.61 $2.88 $2.44 LINDT EXCELLENCE EXTRA DARK CHOCOLATE BAR RECTANGLE 3.5 OZ - 0037466016451 $1,219,986 2.6% 470,849 66.85 $2.59 $2.89 $2.41 LINDT LINDOR CHRISTMAS TRUFFLE CHOCOLATE CANDY ROUND 8.5 OZ - 0009542017521 $1,163,837 -48.4% 203,602 23.35 $5.72 $6.07 $5.61 GHIRARDELLI INTENSE DARK DARK CHOCOLATE BAR RECTANGLE 3.5 OZ - 0747599607211 $1,153,529 2.8% 450,069 64.50 $2.56 $2.72 $2.38 Source: IRI 8 weeks ending 12/30/2018 10 2019 Holiday Presentation V2 02/06/2019 ROCA® The Original Buttercrunch Toffee Top Selling Canister Floor Displays List Display Cost $202.56 List Unit Cost $4.22 SRP $6.99 Margin 39.6% “$1.00 off 2” I.R.C.