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November 2014

Monthly Update

About William Blair


Investment Banking
Food For Thought_Current.indd 1-2

William Blairs investment banking group combines signiicant transaction experience,


rich industry knowledge, and deep relationships to deliver successful advisory and
inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth inancing,
inancial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve. From
2010 - 2013, the investment banking group completed 250 merger-and-acquisition
transactions worth more than $52 billion in value, involving parties in 27 countries and
four continents, was an underwriter on over 20% of all U.S. initial public offerings and
arranged more than $11.5 billion of debt inancing.

Food for Thought

Overview, Analysis, and Trends


in the Food and Food Retailing Industries

11/12/2014 2:31:09 PM

William Blair

Table of Contents
Selected Monthly M&A Activity October ................................................................................................................................................................................... 1
Noteworthy M&A Activity LTM ..................................................................................................................................................................................................... 5
Historical M&A Trends in the Food and Food Retailing Industries ................................................................................................................................... 8
Volume Trends .................................................................................................................................................................................................................................... 8
Participant Trends ............................................................................................................................................................................................................................. 9
Valuation Trends ..............................................................................................................................................................................................................................10
Public Company Trading Statistics ................................................................................................................................................................................................11
Food Production Companies .......................................................................................................................................................................................................11
Food Ingredients Companies ......................................................................................................................................................................................................12
Beverage Production Companies ..............................................................................................................................................................................................12
Food Retail Companies ..................................................................................................................................................................................................................13
Convenience Store Companies ...................................................................................................................................................................................................13
Same-Store Growth Food & Convenience Retail ..................................................................................................................................................................14
U.S. Public Equity Financing Summary LTM ..........................................................................................................................................................................15
IPOs ........................................................................................................................................................................................................................................................15
Follow-Ons ..........................................................................................................................................................................................................................................15
Selected Upcoming Industry Events .............................................................................................................................................................................................16
General Market Update.......................................................................................................................................................................................................................18
Quarterly Market Update All Industries ..................................................................................................................................................................................19
Domestic M&A Market Summary ...................................................................................................................................................................................................19
U.S. Activity Trends ....................................................................................................................................................................................................................19
U.S. Valuation Trends.................................................................................................................................................................................................................20
U.S. Equity Capital Markets Summary .....................................................................................................................................................................................21
Debt Capital Markets Summary ......................................................................................................................................................................................................22
William Blair Food & Beverage and Food Convenience & Retail Investment Banking ...........................................................................................23
Recent William Blair Consumer & Retail Transactions ........................................................................................................................................................25
William Blair Consumer & Retail Coverage ...............................................................................................................................................................................26
Notes ..........................................................................................................................................................................................................................................................27
Disclosures...............................................................................................................................................................................................................................................28

Food For Thought


Table of Contents

William Blair

Selected Monthly M&A Activity October


Food & Beverage Producer Transactions
($ in millions)
Date
Announced
10/31/14

Target (Unit Sold)/


Target Business Description
Harrell Nut Co.
Producer and distributor of pecans

Target
Nation
United States

10/31/14

FELDA IFFCO South China


Producer of edible oils

China

Felda Global Ventures


Holdings

10/31/14

Tomaszowska Spoldzielnia Mleczarska


Producer and seller of dairy products

Poland

10/31/14

True Health
Manufacturer of health supplements and nutritional
products

10/29/14

Buyer
Archer Daniels Midland

Enterprise
Value
-

Enterprise Value/LTM
Sales
-

EBITDA
-

$96.7

SM Mlekovita

United States

Gold Rock Holdings

Petrokholod (11%)
Producer of ice-cream

Russian
Federation

Private Investor

10/29/14

Teasdale Quality Foods


Producer and marketer of canned hominy and beans

United States

Snow Phipps Group

10/29/14

Janneau
Manufacturer of spirits

France

Spirit France

10/29/14

Schirnhofer Gesellschaft
Manufacturer and marketer of prepared meat products

Austria

Zielpunkt

10/28/14

Cedar River Foods


Manufacturer of food and beverage products

United States

Glow Holdings

10/28/14

Conseil Interprofessionnel du Vin de Bordeaux (8%)


Manufacturer of wine

France

Lidl Stiftung & Co.

10/27/14

High Country Shrimp Co.


Producer and supplier of shrimp

United States

Alkame Holdings

10/27/14

Junior Alimentos Industria e Comercio


Processer and marketer of convenience food products

Brazil

Kerry Group

10/24/14

Euro Gourmet
Manufacturer and seller of gourmet food and beverage
products

United States

Chefs' Warehouse

10/24/14

ProNatura
Producer and distributor of organic fruit and vegetables

France

Naxicap Partners

10/24/14

Gloria Jean's Gourmet Coffees


Producer of gourmet coffee

United States

Retail Food Group

$158.4

10/23/14

Benson Park
Manufacturer of poultry products

United Kingdom Cranswick

10/23/14

De Chocolate Korea Co.


Producer and distributor of coffee and related beverage
products

South Korea

Hollys F&B Co.

10/22/14

Chocri
Manufacturer and web-based retailer of made-to-order
chocolates

Germany

Hans Riegelein & Sohn

10/22/14

Pfunda Tea (90%)


Manufacturer of tea

Rwanda

McLeod Russel India

$21.7

10/22/14

Freskaleche
Manufacturer of dairy products

Colombia

Productos Naturales de la
Sabana SA - Alqueria

10/21/14

Sociedad Agrcola e Industrial San Carlos


Producer and seller of sugar and sugar products

Ecuador

Mayagez

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in October 2014
Sources: Dealogic and Capital IQ

Food For Thought


Selected Monthly M&A Activity October 1

William Blair

Food & Beverage Producer Transactions (cont.)


($ in millions)
Date
Announced
10/21/14

Target (Unit Sold)/


Target Business Description
Peresscol
Producer of flavorings and seasonings

Target
Nation
Malaysia

10/20/14

Doux (25%)
Producer and distributor of poultry

France

Abdullah Ali Almunajem


Sons Co.

10/20/14

Senagral (49%)
Manufacturer of dairy products

France

Agrial

10/20/14

Hainan Yedao Co. (11.2%)


Manufacturer of food and beverage products

China

China Orient Capital


Investment Group

10/20/14

Betta Foods Australia


Manufacturer of confectionery

Australia

Hilco Capital

10/20/14

Tanfield Food Company


Manufacturer of gourmet convenience foods

10/17/14

Buyer
T Hasegawa Co.

Enterprise
Value
-

Enterprise Value/LTM
-

EBITDA
-

6.19x

United Kingdom Symingtons

Gilbertson & Page


Supplier of malt and related products

Canada

Rahr Corp

10/17/14

Bogorodskie Delikatesi (5.7%)


Manufacturer and processer of meat and meat products

Russian
Federation

Sangri Management Co.

10/16/14

Falbygdens Ostnederlag
Manufacturer of cheese

Sweden

Arla Foods

10/16/14

Mercaoleo (50%)
Producer of olive oil

Spain

Dcoop S. Coop

10/16/14

Iquique U.S.
Producer and marketer of seafood products

United States

Kirin International

$87.2

10/16/14

Pa.fi.al. Group
Manufacturer of food dressings and sauces

Italy

La Doria

$83.5

0.91x

8.0x

10/16/14

Mars (20%)
Manufacturer of bread and bakery products

Kazakhstan

Private Investor

10/15/14

Yarkhlad
Producer and distributor of dairy products

Russian
Federation

Ekologiya Gorod

10/15/14

Cebu Canning Corp.


Processer of canned seafood

Philippines

Millennium Global Holdings

10/14/14

Savor Coffee
Roaster and distributor of coffee

United States

American Diversified
Holdings Corporation

10/14/14

Masada Bakery
Operator of a bakery

United States

Nashville Bun Company

10/13/14

Akhtyrskiy Khlebozavod
Manufacturer of bread and bakery products

Russian
Federation

Investservis

10/10/14

Cosmo Enterprise (20%)


Manufacturer of in-flight meals

Japan

Deutsche Lufthansa

10/10/14

Fletchers Bakeries
Manufacturer of bread and bakery products

United Kingdom Finsbury Food Group

$90.5

10/10/14

Lotte Chilsung Beverage Co. (Coffee Business)


Producer of coffee

South Korea

Lotte Food Co.

$10.8

10/09/14

Just Water International (29.2%)


Manufacturer of bottled water

New Zealand

Harvard Group

$20.7

1.00x

3.7x

10/09/14

Doma
Manufacturer of mayonnaise, flavored sauces and
dressings

Slovak Republic Nordic Partners

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in October 2014
Sources: Dealogic and Capital IQ

Food For Thought


2 Selected Monthly M&A Activity October

$679.0

Sales

William Blair

Food & Beverage Producer Transactions (cont.)


($ in millions)
Date
Announced
10/08/14

Target (Unit Sold)/


Target Business Description
Bakalland (17.5%)
Manufacturer and distributor of dried fruits and nuts

Target
Nation
Poland

10/08/14

Liaoning Huishan Dairy Group (50%)


Producer of milk and related dairy products

China

Koninklijke
FrieslandCampina

10/07/14

Salov
Manufacturer of cooking oils

Italy

10/07/14

Atlantic Trading Co.


Manufacturer and distributor of seafood

10/07/14

Buyer
Innova Capital;
EMP Investments

Enterprise
Value
$43.5

Enterprise Value/LTM
Sales
0.67x

EBITDA
-

$227.9

Bright Food Co.

United States

High Liner Foods

Cadaico Catalunya
Distributor of food and beverage products

Spain

Pomona

10/06/14

Belvedere (7.3%)
Producer and marketer of alcoholic beverages

France

Diana Holding - Groupe


Zniber

$362.7

0.54x

NMF

10/06/14

Premia Foods (Ice-Cream and Frozen Goods Business)


Producer of ice-cream and frozen food

Estonia

Food Union

$33.9

10/06/14

Trentinalatte
Producer of yogurt

Italy

Livia International Ventures


& Investment Activities

10/06/14

Broderna Nilsson Delikatesser


Wholesaler of meat

Sweden

Scandza

10/03/14

Cremolatti
Producer of ice-cream

Peru

Alimentos Trendy

$10.0

10/03/14

Mondelez Argentina (Pasta Division)


Manufacturer of pasta

Argentina

Molinos Rio de la Plata

$17.0

10/02/14

Anastasia Confections
Manufacturer and marketer of sweets and chocolates

United States

BBX Capital

10/02/14

Bay Hill Seafood


Distributor of seafood products

United States

Private Investor (Justin


Conrad)

10/01/14

Free House Wine & Spirits


Producer and distributor of wine

Canada

Icon Fine Wine & Spirits

10/01/14

Kinmon Shuzou
Manufacturer and seller of Japanese sake

Japan

Private Investor (Hirohisa


Nishiide)

10/01/14

Angie's Artisan Treats


Manufacturer and distributor of popcorn and other
flavored snack foods

United States

TPG Capital

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in October 2014
Sources: Dealogic and Capital IQ

Food For Thought


Selected Monthly M&A Activity October 3

William Blair

Food & Convenience Retail Transactions


($ in millions)
Date
Announced

Target (Unit Sold)/


Target Business Description

Target
Nation

Buyer

Enterprise
Value

10/31/14

Maruetsu
Operator of a chain of supermarkets

Japan

Kasumi

$685.6

10/27/14

Bimart Hypermarket
(3 hypermarkets in Central Russia)
Operator of hypermarkets

Russia

Lenta

10/24/14

C.D.E.B. Trgovacko Drustvo


Operator of a chain of supermarkets

Bosnia and
Herzegovina

Bingo Export Import

10/24/14

JA Tomikawa
Operator of a chain of supermarkets

Japan

10/22/14

Koa Trading Co.


Wholesaler of groceries

10/15/14

Enterprise Value/LTM
Sales

EBITDA

0.23x

7.5x

$37.9

JA Biratoricho

United States

Y. Hata & Co.

RS Service
Wholesaler of general line groceries

Russian
Federation

Alnasmash

10/15/14

Agrotorg-Samara
Operator of a chain of grocery stores

Russian
Federation

X5 Retail Group

10/10/14

Simply Fresh & Local (20%)


Operator of retail stores that sell groceries and other
items

United Kingdom Bibby Line Group

10/08/14

Jibi Handel
Operator of a chain of grocery stores

Germany

J. Buenting Beteiligungs

10/07/14

Kaiser's Tengelmann
Operator of a chain of food retail stores

Germany

Edeka Zentrale & Co.

10/06/14

ICA Norway
Operator of a chain of grocery stores

Norway

Coop Norge Handel

$387.2

0.18x

10/03/14

Migros Ticaret
Operator of a chain of supermarkets

Turkey

Anadolu Endstri Holding

$2,705.4

0.79x

13.1x

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in October 2014
Sources: Dealogic and Capital IQ

Food For Thought


4 Selected Monthly M&A Activity October

William Blair

Noteworthy M&A Activity LTM


Food & Beverage Producer Transactions
($ in millions)
Enterprise
Value

Enterprise Value/LTM

Date
Announced

Target (Unit Sold)/


Target Business Description

Target
Nation

10/20/14

Hainan Yedao Co. (11.2%)


Manufacturer of food and beverage products

China

China Orient Capital


Investment Group

$679.0

6.19x

10/06/14

Belvedere (7.3%)
Producer and marketer of alcoholic beverages

France

Diana Holding - Groupe


Zniber

$362.7

0.54x

NMF

09/10/14

Windsor Quality Food Company


Producer and marketer of frozen foods and appetizers

United States

Ajinomoto North America

$800.0

1.19x

09/08/14

Annie's
Producer of natural and organic foods

United States

General Mills

$821.2

3.95x

NMF

09/02/14

Archer Daniels Midland Company (Global Chocolate


Business)
Producer of chocolate

United States

Cargill

$440.0

08/21/14

Ebro Foods (2%)


Manufacturer of pasta, rice, and ready-to-eat food

Spain

Empresas Comerciales e
Industriales Valencianas

$3,589.8

1.37x

9.5x

08/15/14

Vietnam Dairy Products (2%)


Manufacturer of dairy products

Vietnam

Fraser & Neave

$4,534.6

2.90x

14.1x

08/11/14

Chiquita Brands International


United States
Producer and distributor of fruit and other fresh produce

Sucocitrico Cutrale;
Banco Safra, Investment Arm

$1,193.1

0.39x

13.6x

08/11/14

Treasury Wine Estates


Producer and distributor of wine

Australia

TPG Capital

$3,323.0

2.00x

14.2x

07/14/14

Russell Stover Candies


Manufacturer and marketer of sweets and chocolates

United States

Chocoladefabriken Lindt &


Spruengli

$1,400.0

07/07/14

WILD Flavors
Manufacturer of food ingredients and preservatives

Switzerland

Archer Daniels Midland


Europoort

$3,096.5

2.28x

06/30/14

CytoSport
Manufacturer of nutritional supplements

United States

Hormel Foods Corporation

$470.0

06/30/14

Flagstone Foods
Producer and distributor of dried fruits and nuts

United States

Treehouse Foods

$860.0

05/29/14

Hillshire Brands Co.


Manufacturer of consumer food and beverage products

United States

Tyson Foods

$8,533.5

2.10x

15.3x

05/22/14

Conopco (North America Pasta Sauces Business)


Producer of pasta sauce

United States

Mizkan Holdings

$2,150.0

3.60x

05/21/14

Tnuva Food Industries


Producer and distributor of dairy and frozen food
products

Israel

Bright Food (Group)

$1,711.2

05/20/14

Treasury Wine Estates


Producer and distributor of wine

Australia

KKR & Co.

$3,188.3

1.90x

NMF

05/12/14

Pinnacle Foods
Manufacturer of convenience food products

United States

Hillshire Brands

$6,729.2

2.70x

15.2x

04/27/14

Goodman Fielder
Manufacturer and distributor of food ingredients

Australia

First Pacific Company

$1,698.4

0.84x

8.8x

04/25/14

Deoleo
Producer of cooking oils

Spain

CVC Capital Partners

$1,261.8

1.16x

12.5x

04/17/14

MFI Holding Corporation


Processer and distributor of commercial food products

United States

Post Holdings

$2,499.5

04/15/14

United Spirits
Manufacturer and seller of alcoholic beverages

India

Diageo

$1.895.8

4.88x

NMF

04/14/14

DIANA
Provider of organic and natural foods

France

Symrise

$1,796.2

2.88x

14.0x

Buyer

Sales

EBITDA

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ

Food For Thought


Noteworthy M&A Activity LTM 5

William Blair

Food & Beverage Producer Transactions (cont.)


($ in millions)
Date
Announced

Target (Unit Sold)/


Target Business Description

Target
Nation

03/17/14

Hearthside Food Solutions


Manufacturer of consumer baked foods and snacks

United States

Goldman Sachs Group,


Merchant Banking Division;
Vestar Capital Partners

03/14/14

Olam International
Supplier of food ingredients such as coffee, cocoa and
cashew nuts

Singapore

Temasek Holdings;
Kewalram Singapore

03/10/14

Cloverhill Pastry-Vend
United States
Producer of baked goods primarily sold through vending
machines

03/03/14

Nuova Castelli
Producer and distributor of dairy and canned tuna fish
products

02/28/14

Buyer

Enterprise
Value

Enterprise Value/LTM
Sales

EBITDA

$1,100.0

1.10x

$11,546.7

0.73x

13.0x

Aryzta

$673.1

Italy

Charterhouse Capital
Partners

$516.6

1.29x

10.1x

Sokolow
Processer of packaged meats such as canned hams,
kielbasa and pre-packaged sliced meats

Poland

Danish Crown

$492.6

02/20/14

Shree Renuka Sugars (26%)


Manufacturer of sugar

India

Wilmar International

$1,331.2

0.79x

11.9x

02/12/14

Canada Bread Co.


Manufacturer of flour based products

Canada

Grupo Bimbo

$1,487.6

1.06x

12.6x

01/20/14

Oriental Brewery Co.


Brewer and marketer of beer

South Korea

Anheuser-Busch InBev

$5,800.0

01/13/14

Tilda
Provider of basmati and specialty rice products

United Kingdom Hain Celestial Group

$357.7

01/13/14

Beam
Manufacturer and seller of distilled spirits

United States

Suntory Holdings

$15,816.6

6.27x

20.4x

12/19/13

Shanghai Jinsihou Food


Manufacturer and marketer of sweets and chocolates

China

Hershey Netherlands

$584.0

12/09/13

Industrias Bachoco (10%)


Producer and distributor of poultry

Mexico

GBM Grupo Bursatil


Mexicano

$1,588.8

0.51x

5.7x

11/21/13

TSB Sugar Holdings (22%)


Producers of sugar

South Africa

RCL Foods

$393.8

11/14/13

Campofrio Food Group


International producer of meat products

Spain

Sigma Alimentos

$1,583.9

0.61x

8.5x

11/14/13

Roxas Holdings
Manufacturer of sugar

Philippines

First Pacific

$358.1

14.08x

NMF

11/07/13

Grieg Seafood (26%)


Provider of seafood

Norway

Marine Harvest

$642.0

1.80x

13.1x

11/01/13

Bega Cheese (6%)


Manufacturer of dairy products

Australia

Fonterra Cooperative Group

$795.3

0.83x

19.1x

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ

Food For Thought


6 Noteworthy M&A Activity LTM

William Blair

Food & Convenience Retail Transactions


($ in millions)
Enterprise Value/LTM

Date
Announced

Target (Unit Sold)/


Target Business Description

Target
Nation

Buyer

Enterprise
Value

10/31/14

Maruetsu
Operator of a chain of supermarkets

Japan

Kasumi

$685.6

0.23x

7.5x

10/03/14

Migros Ticaret
Operator of a chain of supermarkets

Turkey

Anadolu Endstri Holding

$2,705.4

0.79x

13.1x

09/30/14

Seijo Ishii Co.


Operator of a chain of supermarkets

Japan

Lawson

$501.4

1.01x

9.7x

09/16/14

Grocery Outlet Inc.


Operator of a chain of grocery stores

United States

Hellman & Friedman

08/11/14

Kinsho Store Co.


Operator of a chain of supermarkets

Japan

Kintetsu Corporation

$645.3

1.13x

07/02/14

Grupo El rbol Distribucin y Supermercados


Supermarkets operator

Spain

Distribuidora Internacional
de Alimentacin

$205.9

0.18x

06/03/14

DIA France
Operator of a chain of supermarkets

France

Carrefour

$816.9

05/07/14

Roundy's (18 Rainbow Stores)


Operator of 18 retail stores

United States

SuperValu

$65.0

04/28/14

Susser Holdings Corporation


Operator of a chain of convenience stores

United States

Energy Transfer Partners

$2,320.3

0.37x

14.4x

04/11/14

SPAR Group
Operator of a chain of grocery and retail stores

South Africa

Allan Gray

$2,059.8

0.45x

13.0x

04/07/14

Carrefour
Operator of a chain of supermarkets

France

Motier

$1786.3

0.36x

12.2x

03/11/14

SPAR Ceska Obchodni Spolecnost


Operator of a chain of supermarkets

Czech Republic

Albert (Ahold)

$266.2

0.36x

03/10/14

Eataly
Operator of a chain of food retail stores

Italy

Tamburi Investment
Partners

$832.7

03/06/14

Safeway
Operator of a chain of stores offering a selection of food
and general merchandise

United States

Albertsons (Cerberus
Capital Management)

$8,198.9

13.5x

03/04/14

Wumart Stores
Operator of a retail chain of superstores

China

Wumei Holdings

$559.8

0.20x

4.4x

02/13/14

Sobeys (29 stores)


Operator of a chain of grocery stores

Canada

Overwaitea Food Group;


Federated Co-operatives

$391.0

02/11/14

Walmart Chile
Operator of a chain of supermarkets

Chile

Inversiones Australes Tres


Limitada

$7,575.8

1.36x

15.1x

01/31/14

Izumiya Co.
Operator of retail stores that sell groceries and other
items

Japan

H2O Retailing Corporation

$1,099.2

0.33x

11.6x

12/20/13

Arden Group
Operator of supermarkets in Southern California

United States

TPG Capital

$364.0

0.80x

9.9x

11/22/13

Wal-Mart Chile (25%)


Operator of supermarkets in Chile

Chile

Inversiones Australes Tres


(Wal-Mart Stores)

$7,515.1

1.30x

21.6x

Sales

EBITDA

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months
Sources: Dealogic and Capital IQ

Food For Thought


Noteworthy M&A Activity LTM 7

William Blair

Historical M&A Trends in the Food and Food Retailing Industries


Volume Trends
U.S. Monthly Announced M&A Activity
Food & Beverage Production

Food Retail & Convenience

Number of Deals
30

20

20

17

14

22

19

15

17

13

12

14

15

15

10
0
11/13

12/13

01/14

2/14

03/14

04/14

05/14

06/14

07/14

08/14

09/14

10/14

Food & Beverage Production

14

13

15

12

17

16

12

12

13

14

14

Food Retail & Convenience

U.S. Yearly Announced M&A Activity


Food & Beverage Production

Food Retail & Convenience

Total Deal Value

Deal Value

Number
of Deals

($ in billions)

300

232
159

200

181

223

$120

170

166

127

129

159

189

185

159

$80
$40

100

$0

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

Food & Beverage Production

98

128

101

145

127

106

79

109

127

161

147

138

Food Retail & Convenience

61

53

65

87

96

64

48

20

32

24

42

21

$7.9

$13.5

$11.5

$29.1

$33.3

$93.3

$20.5

$39.0

$13.9

$36.0

$43.2

$55.0

Total Deal Value

Global Yearly Announced M&A Activity


Food & Beverage Production

Food Retail & Convenience

Total Deal Value

Number
of Deals

Deal Value
($ in billions)

1,500
1,000

994

973

1,049

1,193

1,325

1,311

1,159

1,199

1,083

$200
979

926

756

$150
$100

500

$50
$0

0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Food & Beverage Production

859

799

870

996

1,104

1,042

948

969

906

814

768

643

Food Retail & Convenience

135

174

179

197

221

269

211

230

177

165

158

113

$41.7

$61.1

$97.8

$94.9

$132.3

$140.5

$72.0

$94.2

$125.4

$127.4

$109.7

$118.6

Total Deal Value

Note: Data represents announced transactions including U.S.-based targets only


Sources: Dealogic and Capital IQ as of October 31, 2014

Food For Thought


8 Historical M&A Trends in the Food and Food Retailing Industries

2014 YTD

William Blair

Participant Trends
Breakdown of Acquirers by Type

Percent of Deals
60%
50%
40%
30%
20%
10%
0%
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

Private

43.0%

46.8%

44.1%

43.4%

51.9%

47.2%

50.0%

52.8%

49.5%

53.2%

56.0%

48.6%

44.7%

Public

25.6%

24.0%

27.7%

28.0%

19.6%

21.6%

20.3%

17.4%

18.1%

15.6%

19.5%

25.8%

24.8%

Private Equity

11.0%

11.0%

9.2%

10.1%

13.8%

17.2%

13.1%

13.0%

13.2%

12.2%

7.2%

13.6%

12.8%

Foreign

20.3%

18.2%

19.0%

18.5%

14.6%

14.0%

16.7%

16.8%

19.1%

19.0%

17.3%

12.0%

17.7%

Breakdown of Sellers by Type

Percent of Deals
70%
60%
50%
40%
30%
20%
10%
0%
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

Private

50.0%

30.1%

46.4%

53.1%

50.5%

57.2%

46.3%

53.0%

49.7%

47.1%

53.4%

55.2%

53.2%

Public

2.5%

3.3%

6.4%

5.6%

2.0%

1.7%

3.7%

5.1%

6.1%

4.8%

2.5%

4.9%

9.2%

4.2%

17.1%

7.9%

9.1%

12.4%

8.1%

8.0%

8.5%

14.0%

5.3%

8.1%

7.8%

7.8%

43.2%

49.6%

39.3%

32.2%

35.1%

32.9%

42.0%

33.3%

30.2%

42.8%

36.0%

32.1%

29.8%

Private Equity
Divestiture

Note: Data represents announced transactions including U.S.-based targets only


Sources: Dealogic and Capital IQ as of October 31, 2014

Food For Thought


Historical M&A Trends in the Food and Food Retailing Industries 9

William Blair

Valuation Trends
Average EBITDA Multiples for Food Transactions(1)
Average EV/EBITDA Multiple

Number of Disclosed Deals

EV/EBITDA Multiple
40

20.0x

35
15.0x

13.2x
9.1x

10.0x

8.6x

12.0x

11.4x

11.8x
10.4x

9.9x

9.3x

8.4x

30
13.0x

12.4x

25
20

8.2x

15
10

5.0x

5
0

0.0x
Average EV/EBITDA Multiple
Number of Disclosed Deals

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

8.6x

8.4x

9.1x

11.4x

9.9x

12.0x

10.4x

9.3x

8.2x

11.8x

13.2x

13.0x

12.4x

20

25

20

14

28

23

20

14

11

12

22

30

Average EBITDA Multiples for Beverage Transactions(2)


Average EV/EBITDA Multiple

Number of Disclosed Deals

EV/EBITDA Multiple
25.0x

20

20.0x

17.3x
11.8x

15.0x

14.1x

13.5x
12.0x

10.0x

15
13.6x

13.4x
11.7x

9.5x

10.9x

14.5x
11.6x

9.8x

5.0x

0.0x
Average EV/EBITDA Multiple
Number of Disclosed Deals

10

0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

9.5x

11.8x

14.1x

12.0x

13.5x

13.4x

17.3x

11.7x

10.9x

9.8x

13.6x

14.5x

11.6x

15

16

12

15

10

(1) Excludes Food & Convenience retail transactions


(2) Includes alcoholic and nonalcoholic beverages
Note: Data represents global transactions announced in the respective sectors
Note: Transactions with multiples that are not meaningful are categorized as undisclosed
Sources: Dealogic and William Blair as of October 31, 2014

Food For Thought


10 Historical M&A Trends in the Food and Food Retailing Industries

William Blair

Public Company Trading Statistics


Food Production Companies
($ in millions)
Company
Nestl
Unilever

Forward

% Change
Market Cap
MTD
$233,373.3
(0.4%)

YTD
(0.3%)

Enterprise Value/LTM

17.5x

PEG
380.1%

Enterprise
Value
$257,258.3

P/E

Sales
2.54x

EBITDA
13.6x

$114,197.8

(4.1%)

(2.2%)

16.9x

168.9%

$127,682.6

1.93x

11.5x

Mondelez International

$59,444.4

2.9%

(0.1%)

17.8x

165.1%

$75,869.4

2.17x

14.3x

Danone

$40,724.4

1.5%

(5.7%)

16.5x

190.2%

$52,800.5

1.86x

12.3x

Associated British Foods

$34,697.5

1.4%

8.7%

25.2x

260.1%

$36,585.8

1.74x

14.3x

General Mills

$31,370.7

3.0%

4.1%

17.3x

221.0%

$41,289.0

2.32x

12.5x

Kellogg Company

$23,033.5

3.8%

4.7%

15.1x

193.1%

$30,318.5

2.08x

8.1x

The Hershey Company

$21,183.6

0.5%

(1.4%)

21.2x

249.3%

$23,129.2

3.14x

14.4x

Tyson Foods

$15,154.0

2.5%

20.6%

13.6x

160.4%

$16,406.0

0.45x

7.8x

ConAgra Foods

$14,592.8

4.0%

1.9%

14.9x

223.4%

$23,059.3

1.30x

9.8x

Hormel Foods Corporation

$14,202.9

4.9%

19.3%

24.1x

283.5%

$13,930.2

1.53x

13.5x

Campbell Soup Company

$13,882.3

3.4%

2.1%

17.3x

288.0%

$17,648.3

2.13x

11.3x
12.1x

Grupo Bimbo

$13,745.8

0.8%

(4.9%)

24.5x

54.5%

$18,098.0

1.32x

JBS

$13,011.8

20.5%

21.1%

12.1x

NA

$24,786.4

0.51x

7.1x

Saputo

$11,093.4

1.1%

24.5%

9.0x

90.2%

$13,038.9

1.44x

13.4x

The J. M. Smucker Company

$10,589.0

5.1%

0.4%

16.6x

214.2%

$12,777.9

2.29x

10.8x

George Weston

$10,455.9

3.4%

11.9%

15.0x

149.6%

$28,769.2

0.86x

16.4x

McCormick & Company

$9,128.0

5.7%

2.6%

21.4x

259.6%

$10,412.1

2.46x

14.3x

ARYZTA

$7,498.2

(1.2%)

10.7%

14.6x

49.5%

$9,835.3

1.53x

11.1x

Pilgrim's Pride Corporation

$7,359.0

(7.0%)

74.8%

39.5x

NA

$6,995.9

0.82x

6.0x

The Hain Celestial Group

$5,456.4

5.8%

19.2%

31.5x

212.8%

$6,200.6

2.69x

22.0x

Flowers Foods

$3,981.3

3.5%

(11.5%)

16.1x

151.0%

$4,798.9

1.28x

11.4x

Treehouse Foods

$3,583.0

5.8%

23.6%

21.2x

199.0%

$4,577.1

1.69x

13.5x

Lancaster Colony Corporation

$2,501.6

7.3%

3.8%

22.3x

202.9%

$2,274.1

2.16x

13.2x

Cal-Maine Foods

$2,123.7

(1.7%)

45.8%

9.1x

NA

$1,972.2

1.33x

9.1x

Snyder's-Lance

$2,092.5

12.4%

3.9%

21.2x

141.0%

$2,778.1

1.53x

14.4x

Sanderson Farms

$1,937.5

(4.5%)

16.1%

9.2x

NA

$1,818.2

0.66x

4.9x

J&J Snack Foods Corp.

$1,921.0

10.1%

16.3%

27.0x

300.4%

$1,853.8

2.02x

12.8x

Fresh Del Monte Produce

$1,809.9

0.7%

13.5%

13.4x

267.6%

$1,952.3

0.50x

8.4x

Tootsie Roll Industries

$1,748.0

5.9%

(6.1%)

NA

NA

$1,661.0

3.07x

16.4x

Post Holdings

$1,680.9

13.0%

(23.9%)

40.8x

510.1%

$5,183.3

3.12x

21.1x

B&G Foods

$1,580.9

6.9%

(13.1%)

16.4x

NA

$2,620.3

3.19x

14.0x

Dean Foods Company

$1,379.4

11.0%

(14.4%)

13.8x

186.6%

$2,306.0

0.25x

10.4x

Diamond Foods

$946.0

5.4%

16.7%

35.3x

321.1%

$1,599.1

1.85x

19.6x

Lotus Bakeries

$909.9

(0.8%)

18.5%

18.8x

187.7%

$987.6

2.12x

12.4x

Calavo Growers

$765.1

7.5%

60.4%

30.1x

262.1%

$793.1

1.03x

19.0x

Chiquita Brands International

$678.9

1.6%

23.3%

13.0x

325.0%

$1,261.5

0.41x

12.6x

Boulder Brands

$541.7

(34.8%)

(44.0%)

15.5x

88.3%

$826.2

1.61x

12.1x

John B Sanfilippo & Son

$411.1

14.8%

50.5%

NA

NA

$468.2

0.58x

8.2x

Seneca Foods Corp.

$297.6

(6.0%)

(15.7%)

NA

NA

$635.2

0.48x

18.2x

Inventure Foods

$258.6

2.2%

(0.2%)

19.2x

140.7%

$346.8

1.28x

15.3x

Bridgford Foods Corp.

$75.2

4.8%

(13.9%)

NA

NA

$74.3

0.56x

NMF

Golden Enterprises

$52.6

(3.9%)

9.3%

NA

NA

$58.6

0.43x

9.2x

Mean

2.8%

8.6%

19.6x

215.1%

$20,645.1

1.59x

12.7x

Median

3.4%

4.1%

17.3x

202.9%

$5,183.3

1.53x

12.6x

Note: Data as of October 31, 2014


Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates

Food For Thought


Public Company Trading Statistics 11

William Blair

Food Ingredients Companies


($ in millions)
Company

Forward

% Change
Market Cap MTD

YTD

P/E

Enterprise Value/LTM
Enterprise
Value

PEG

Sales

EBITDA

Givaudan

$15,331.5

4.2%

16.4%

20.5x

171.2%

$16,533.3

3.38x

16.5x

Kerry Group

$11,933.2

(3.6%)

(2.4%)

16.2x

142.9%

$13,476.7

1.70x

14.2x
13.1x

International Flavors & Fragrances

$8,047.1

3.4%

15.3%

18.0x

256.9%

$8,657.9

2.83x

Symrise

$7,296.7

5.6%

21.8%

20.9x

157.2%

$7,350.2

2.92x

14.1x

Barry Callebaut

$5,738.6

(5.8%)

(16.7%)

17.9x

81.9%

$7,670.2

1.20x

13.9x

Sensient Technologies Corporation

$2,853.6

13.0%

22.0%

18.1x

190.8%

$3,269.4

2.24x

12.2x

Frutarom Industries

$1,449.3

(2.0%)

18.2%

16.4x

NA

$1,640.8

2.16x

12.3x

T. Hasegawa Co.

$632.0

(0.3%)

10.4%

16.8x

NA

$427.1

0.95x

5.7x

Takasago International Corporation

$466.4

(0.8%)

(16.5%)

11.6x

NA

$812.2

0.62x

9.1x

Mean
Median

1.5%

7.6%

17.4x

166.8%

$6,648.6

2.00x

12.3x

(0.3%)

15.3%

17.9x

164.2%

$7,350.2

2.16x

13.1x

Beverage Production Companies


($ in millions)
Company

Forward

% Change
Market Cap

MTD

YTD

P/E

Enterprise Value/LTM
Enterprise
Value

PEG

Sales

EBITDA

The Coca-Cola Company

$183,439.1

(1.8%)

1.4%

18.7x

227.5%

$201,758.1

4.37x

15.4x

Anheuser-Busch InBev

$177,339.3

(0.8%)

3.7%

18.5x

148.1%

$224,005.3

4.79x

12.4x

Pepsico

$143,928.6

3.3%

16.0%

19.6x

239.0%

$163,743.6

2.45x

12.8x

$90,560.1

1.4%

9.7%

20.0x

156.9%

$106,669.1

6.39x

19.6x

SABMiller
Diageo

$73,653.7

1.5%

(11.3%)

17.2x

167.0%

$90,159.3

5.14x

15.5x

Keurig Green Mountain

$24,647.6

16.6%

100.9%

39.6x

219.5%

$23,734.4

5.21x

20.7x

Brown-Forman Corporation

$19,534.4

2.7%

22.6%

25.9x

NA

$20,085.4

6.67x

19.5x

Constellation Brands

$17,650.9

5.0%

30.1%

20.3x

152.1%

$24,744.2

4.22x

14.6x

Monster Beverage Corporation

$16,866.3

10.0%

48.9%

34.1x

243.7%

$16,039.3

6.68x

22.3x

Molson Coors Brewing Company

$13,778.6

(0.1%)

32.5%

17.2x

224.3%

$16,956.2

4.04x

20.5x

Dr Pepper Snapple Group

$13,462.8

7.7%

42.1%

18.8x

255.1%

$15,737.8

2.59x

10.8x

Coca-Cola Enterprises

$10,479.2

(2.3%)

(1.8%)

13.4x

149.6%

$14,409.2

1.72x

10.0x

The WhiteWave Foods Company

$6,483.5

2.5%

62.3%

32.4x

185.2%

$7,782.1

2.43x

21.8x

Boston Beer Co.

$3,252.9

12.3%

3.0%

34.2x

NA

$3,196.3

3.59x

18.0x

National Beverage Corp.

$1,164.1

28.8%

24.6%

NA

NA

$1,146.9

1.78x

14.4x
11.2x

Coca-Cola Bottling Co.

$838.5

21.2%

23.6%

24.7x

NA

$1,402.2

0.82x

Cott Corporation

$567.5

(12.0%)

(24.8%)

12.9x

NA

$1,135.5

0.56x

6.5x

Farmer Brothers Co.

$466.5

0.7%

25.4%

28.8x

144.1%

$441.7

0.83x

14.0x

Lifeway Foods

$270.5

19.3%

3.6%

31.8x

198.9%

$274.0

2.38x

NMF

Jones Soda Co.

$17.6

(0.4%)

(6.2%)

NA

NA

$17.1

1.29x

NMF

Mean

5.8%

20.3%

23.8x

193.6%

$46,671.9

3.40x

15.6x

Median

2.6%

19.3%

20.2x

192.1%

$15,888.6

3.09x

15.0x

Note: Data as of October 31, 2014


Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates

Food For Thought


12 Public Company Trading Statistics

William Blair

Food Retail Companies


($ in millions)
Company

Forward

% Change
Market Cap

MTD

YTD

P/E

Enterprise Value/LTM
Enterprise
Value

PEG

Sales

EBITDA

The Kroger Co.

$27,358.7

7.1%

40.9%

15.8x

175.3%

$38,335.7

0.37x

8.1x

Whole Foods Market

$14,207.8

3.2%

(32.0%)

24.9x

138.8%

$13,473.8

0.95x

10.2x

Safeway

$8,035.2

1.6%

7.0%

29.2x

317.1%

$9,437.7

0.26x

6.2x

Sprouts Farmers Market

$4,379.8

0.1%

(24.3%)

34.5x

NA

$4,628.1

1.63x

18.9x
14.7x

United Natural Foods

$3,393.3

10.7%

(9.8%)

25.5x

166.9%

$3,826.4

0.56x

SUPERVALU

$2,253.4

(3.5%)

18.4%

12.9x

NA

$4,920.4

0.29x

6.1x

The Fresh Market

$1,777.5

5.1%

(9.4%)

20.2x

101.9%

$1,796.7

1.09x

10.4x

Weis Markets

$1,200.7

14.4%

(15.1%)

NA

NA

$1,113.9

0.41x

7.0x

Smart & Final Stores(1)

$1,048.1

2.2%

22.9%

20.2x

NA

$1,687.7

0.51x

11.1x

SpartanNash Company

$845.4

15.2%

(7.7%)

11.5x

114.7%

$1,422.7

0.19x

7.1x

Ingles Markets

$612.2

13.6%

(0.7%)

13.1x

116.1%

$1,517.5

0.40x

7.1x

Natural Grocers by Vitamin Cottage

$407.1

11.2%

(57.3%)

27.9x

105.4%

$420.2

0.84x

10.7x

Village Super Market

$390.0

21.8%

(10.5%)

NA

NA

$358.8

0.24x

6.9x

Roundy's

$162.3

12.7%

(65.8%)

8.5x

32.2%

$837.1

0.20x

5.9x

Fairway Group Holdings

$129.9

(20.1%)

(83.5%)

NMF

NA

$337.2

0.42x

11.4x

Mean

6.4%

(15.1%)

20.4x

140.9%

$5,607.6

0.56x

9.5x

Median

7.1%

(9.8%)

20.2x

116.1%

$1,687.7

0.41x

8.1x

Convenience Store Companies


($ in millions)
Company
Alimentation Couche-Tard

Forward

% Change
Market Cap

MTD

YTD

P/E

Enterprise Value/LTM
Enterprise
Value

PEG

Sales

EBITDA

$19,317.4

5.8%

35.3%

22.5x

NA

$21,253.6

0.56x

13.1x

$3,162.4

14.2%

16.5%

20.4x

183.5%

$3,899.6

0.53x

10.3x

$604.2

27.4%

53.6%

113.2x

1028.8%

$1,490.8

0.22x

7.4x

Mean

15.8%

35.1%

52.0x

606.2%

$8,881.3

0.44x

10.3x

Median

14.2%

35.3%

22.5x

606.2%

$3,899.6

0.53x

10.3x

Casey's General Stores


The Pantry

(1) Company had an initial public offering in 2014 performance over pricing
Note: Data as of October 31, 2014
Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates

Food For Thought


Public Company Trading Statistics 13

William Blair

Same-Store Growth Food & Convenience Retail


Grocery Stores & Supermarkets
Sprouts Farmers Market

9.0%

Smart & Final Stores

6.6%

Publix Super Markets

5.0%

Kroger(1)

4.8%

Natural Grocers by Vitamin Cottage

3.1%

Whole Foods Market

3.1%

The Fresh Market

2.9%

Weis Markets

2.6%

Ingles Markets

2.1%

Safeway(1)

1.8%

Village Super Market

0.9%

SpartanNash

0.4%

SUPERVALU

0.4%

Roundy's

(2.7%)

Fairway Group Holdings

(3.9%)

Convenience Stores
Casey's General Stores

5.7%

Alimentation Couche-Tard

4.4%

The Pantry

2.5%

(1) Excludes fuel sales


Note: Bolded companies reflect recently announced same-store sales data (announced in October/November 2014)
Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period
Sources: Company filings and Capital IQ as of October 31, 2014

Food For Thought


14 Same-Store Growth Food & Convenience Retail

William Blair

U.S. Public Equity Financing Summary LTM


IPOs
($ in millions)
At Filing
Initial
Filing
Date

Offer
Date

Ticker

Issuer

Shares/
ADS Exc.
Ovl.

06/20/14

09/23/14

SFS

Smart & Final Stores

13.5

At Pricing
Filing
Range
$12.00 $14.00

Pricing & Performance - % Change Offer/

Deal
Shares/
Value at ADS Inc. Offer
Midpoint Ovl.
Price

Deal
Value

175.5

$186.0

15.5

$12.00

Market
Value
$852.7

Relative
to Range 1 Day
In Range

1 Month 3 Months Current

4.2%

9.2%

0.0%

22.9%

Mean

4.2%

9.2%

0.0% 22.9%

Median

4.2%

9.2%

0.0% 22.9%

Follow-Ons
($ in millions)
Pricing Performance - % Change
% Shares Offered
Shares/
ADS Offered Offer
(mm)
Price

Deal Value
(mm)
Primary

Last Trade Before

Pricing
Date

Ticker Issuer

Business Description

Filing/
Secondary Offer

Offer/
Offer

Offer/
Current

09/11/14

SNAK

Inventure Foods

Manufacturer and marketer of natural snack


food products

3.6

$12.85

$46.2

0%

100%

(9.7%)

(4.6%)

3.0%

09/08/14

PF

Pinnacle Foods

Manufacturer and marketer of convenience


food products

15.0

$31.90

$478.5

0%

100%

6.0%

6.0%

6.0%

08/12/14

SFM

Sprouts Farmers Market

Specialty retailer of natural and organic


food

15.0

$30.00

$450.0

0%

100%

5.6%

8.5%

(3.0%)

07/30/14

TSN

Tyson Foods

Producer and distributor of chicken and


related food products

23.8

$37.80

$900.0

100%

0%

5.4%

3.6%

12.3%

07/16/14

THS

Treehouse Foods

Manufacturer and distributor of food and


beverage products

4.3

$75.50

$325.0

100%

0%

4.0%

2.2%

12.8%

05/21/14

POST

Post Holdings

Manufacturer and marketer of convenience


food products

5.5

$47.70

$262.4

100%

0%

(1.6%)

(2.5%)

(21.4%)

03/27/14

SFM

Sprouts Farmers Market

Specialty retailer of natural and organic


food

15.0

$33.75

$506.3

0%

100%

12.5%

4.5%

(13.7%)

03/12/14

POST

Post Holdings

Manufacturer and marketer of convenience


food products

5.0

$55.00

$275.0

100%

0%

8.1%

(0.1%)

(31.8%)

02/03/14

RNDY

Roundy's

Operator of a supermarket chain in the


Midwest

8.8

$7.00

$61.9

33%

67%

25.9%

21.1%

(51.9%)

12/11/13

PF

Pinnacle Foods

Manufacturer and marketer of convenience


food products

17.0

$26.75

$454.8

0%

100%

(5.7%)

(1.0%)

26.4%

11/25/13

SFM

Sprouts Farmers Market

Specialty retailer of natural and organic


food

17.0

$37.00

$629.0

0%

100%

(23.0%)

(2.3%)

(21.3%)

11/12/13

BNNY

Annie's

Producer of natural and organic foods

2.5

$47.95

$119.9

0%

100%

(3.0%)

(1.7%)

(100.0%)

Mean

2.0%

2.8%

(18.5%)

Median

4.7%

1.1%

(8.5%)

Sources: Dealogic and FactSet Research Systems


Note: LTM as of October 31, 2014

Food For Thought


U.S. Public Equity Financing Summary LTM 15

William Blair

Selected Upcoming Industry Events


Date

Event

Location

November 2014
11-12

Kosherfest

Secaucus, NJ

16-18

PLMA's Private Label Trade Show

Rosemont, IL

16-19

Outlook Leadership 2013 (CSP)

Scottsdale, AZ

SOHO Expo

Orlando, FL

December 2014
4-7

January 2015
11-13

Winter Fancy Food Show

San Francisco, CA

12-14

NW Food Manufacturing & Packaging Exposition

Portland, OR

14-15

MarcabyBolognaFiere

Bologna, Italy

18-20

Retail Industry Leaders Association The Leadership Forum

Amelia Island, FL

24-27

FMIs Midwinter Executive Conference

Miami Beach, FL

27-29

International Production & Processing Expo

Atlanta, GA

February 2015
1-6

NAFDMA Convention

Nashville, TN

4-6

Convenience Retailing University

Dallas, TX

8-11

N.G.A. 2015 Annual Convention and Supermarket Synergy Showcase

Las Vegas, NV

15-18

IFAs Annual International Franchise Convention

Las Vegas, NV

16-19

NCA State of the Industry Conference

Miami, FL

21-25

AFFI Frozen Food Convention

Anaheim, CA

22-24

AMI Foundation Annual Meat Conference

Nashville, TN

22-25

RILA Supply Chain Conference

Orlando, FL

24-26

Snack, Beverage & Grocery EPPS

Jacksonville, FL

March 2015
2-4

FMI Annual Business Conference

Chicago, IL

5-8

Natural Products Expo West

Anaheim, CA

9-12

FMI Asset Protection Conference

Memphis, TN

15-17

Seafood Expo North America & Seafood Processing North America

Boston, MA

22-25

Restaurant Leadership Conference

Scottsdale, AZ

22-26

NACS Global Forum

Singapore

22-26

AFFI Annual Food and Beverage Environmental Conference

Point Clear, Ala

28-1

American Bakers Association Annual Convention

Orlando, FL

April 2015
12-15

Grocery Manufacturers Association Science Forum

National Harbor, MD

14-16

NACS State of the Industry Summit

Chicago, IL

15-16

NGA Day in Washington (NGA, FMI and FIAE)

Washington, DC

TBD

FMIs FutureConnect

Orlando, FL

Food For Thought


16 Selected Upcoming Industry Events

William Blair

Date

Event

Location

May 2015
3-6

RILA Asset Protection Conference

Orlando, FL

3-6

FMIs 2015 Financial Executive Conference and Internal Auditing Conference (Co-Located)

New Orleans, LA

16-19

NRA Restaurant Hotel Motel Show

Chicago, IL

19-20

PLMAs Annual World of Private-Label

Amsterdam

19-21

NCA Sweets & Snacks Expo

Chicago, IL

31-Jun 2

AFFI Food Logistics Forum

Incline Village, NV

31-Jun 4

NGA Leadership Development Program (Cornell)

Ithaca, NY

TBD

CSP Leadership and Crisis Prevention Forum

TBD

TBD

The Tech Event (NACS and PCATS)

TBD

7-9

International Dairy Deli Bakery Association Annual Convention "Dairy-Deli-Bake"

Atlanta, GA

7-11

NGA Leadership Development Program (USC)

Los Angeles, CA

7-12

Insight NACS Future of Convenience

London, UK

9-11

FMI Connect

Chicago, IL

9-11

United Fresh 2014

Chicago, IL

22-24

Foodservice at Retail Expo 2014

Nashville, TN

28-29

TRA Marketplace (formerly Southwest Foodservice Expo)

Dallas, TX

28-30

NASFT Summer International Fancy Food & Confection Show

New York, NY

June 2015

July 2015
20-23

NBJ Summit

Dana Point, CA

26-28

The International Foods Planning

TBD

27-29

Center Store Grocery, Snack & Beverage Planning

TBD

NACDS Total Store Expo

Denver, CO

Food Evolution Summit

Phoenix, AZ

August 2015
22-25

September 2015
1-2
15-18

RILA Retail Sustainability Conference

Austin, TX

17-19

All Things Organic - BioFach America

Baltimore, MD

17-20

Natural Products Expo East

Baltimore, MD

20-22

MUFSO Conference

Dallas, TX

20-23

Candy Annual Planning

Chandler, AZ

28-29

Canadian Federation of Independent Grocers-Grocery Innovations

Toronto, Canada

10-13

National Frozen and Refrigerated Foods Convention

Dallas, TX

13-15

Shopper Marketing Expo

Minneapolis, MN

18-20

Consumer Goods Forum: Future Leaders Congress

Rio De Janeiro, Brazil

October 2015

Food For Thought


Selected Upcoming Industry Events 17

William Blair

General Market Update


Percentage Change
As of
10/31/14

Month-to-Date

Year-to-Date

Equity Market Indices


Dow Jones Industrial Average

$17,390.52

2.0%

4.9%

Nasdaq Composite

$4,630.74

3.1%

10.9%

S&P 500

9.2%

$2,018.05

2.3%

S&P Food Products Index

$478.79

2.3%

6.5%

S&P Food & Staples Retail Index

$342.16

4.5%

7.7%

S&P Restaurants Index

$799.12

0.2%

(0.7%)

WB Corporate Finance Indices(1)


Food Index

$810.99

1.9%

11.4%

Ingredients Index

$894.59

2.1%

16.4%

$4,193.72

1.2%

8.1%

$837.46

5.4%

4.0%

Convenience Store Index

$20,915.83

8.8%

41.2%

Currencies
Dollar to Canadian Dollar
Dollar to Euro
Dollar to Peso
Dollar to Pound

$1.13
$0.80
$13.48
$0.63

0.9%
0.8%
0.4%
1.3%

6.1%
10.0%
2.9%
3.5%

$1.88
$3.77
$0.24
$2,899.00
$80.54
$0.35
$0.16
$5.33

(2.8%)
17.5%
(1.1%)
(12.2%)
(11.6%)
7.5%
(2.5%)
11.5%

69.8%
(10.7%)
23.0%
7.0%
(18.2%)
(11.1%)
(2.3%)
(12.0%)

Beverage Index
Food Retail Index

Commodities(2)
Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places)
Corn (Cents per Bushel)
Milk (Cents per 2,000 lbs.)
Cocoa (Dollars per Metric Ton)
Oil (Dollars per Barrel)
Soybean Oil (Cents per Bushel)
World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places)
Wheat (Cents per Bushel)
Yield (%) 52-Week Range
As of
10/31/14

52-Week
Low

INTEREST RATES
10-Year Treasury
30-Year Treasury
3-Month LIBOR
Fed Funds Effective Rate
Prime Rate

0.0%

2.3%
3.1%
0.2%
0.1%
3.3%

2.1%
2.9%
0.2%
0.1%
3.3%

52-Week
High

Latest
0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

3.0%
3.9%
0.2%
0.1%
3.3%

(1) WB Corporate Finance indices are determined by FactSet Research Systems, as of October 31, 2014. Data is based on a weighted average by market capitalization calculation.
(2) Commodities represent futures prices
Source: FactSet Research Systems as of October 31, 2014
WB Corporate Finance Food Index includes: ARYZTA, Associated British Foods, B&G Foods, Bridgford Foods, Calavo Growers, Cal-Maine Foods, Campbell Soup, Chiquita Brands International, ConAgra Foods, Danone, Dean Foods, Diamond
Foods, Dole Food Company, Flowers Foods, Fresh Del Monte Produce, General Mills, George Weston Limited, Golden Enterprises, Grupo Bimbo, Hormel Foods, Inventure Foods, J&J Snack Foods, JBS, John B Sanfilippo & Son, Kellogg
Company, Kraft Foods, Lancaster Colony Corporation, McCormick & Co., Nestl, Overhill Farms, Pilgrims Corp., Post Holdings, Sanderson Farms, Saputo, Seneca Foods, Nestl, Ralcorp Holdings, Reddy Ice Holdings, Sanderson Farms, Saputo,
Sara Lee, Seneca Foods, Smart Balance, Smithfield Foods, Snyders-Lance, The Hain Celestial Group, The Hershey Company, The J. M. Smucker Company, Tootsie Roll Industries, Treehouse Foods, Tyson Foods, Unilever
WB Corporate Finance Beverage Index includes: Anheuser-Busch InBev, Boston Beer Co., Brown-Forman Corporation, Coca-Cola Bottling Co. Consolidated, Coca-Cola Enterprises, Constellation Brands, Cott Corporation, Diageo, Dr Pepper
Snapple Group, Farmer Brothers Co., Green Mountain Coffee Roasters, Jones Soda Co., Lifeway Foods, Molson Coors Brewing Company, Monster Beverage Corporation, National Beverage, Pepsico, SABMiller, The Coca-Cola Company
WB Corporate Finance Ingredients Index includes: Barry Callebaut, Frutarom Industries, Givaudan, International Flavors & Fragrances, Kerry Group, Sensient Technologies Corporation, Symrise, T. Hasegawa Co., Takasago International
WB Corporate Finance Food Retail Index includes: Arden Group (Gelsons), Fairway Group Holdings, Harris Teeter Supermarkets, Ingles Markets, Nash Finch, Roundys, Safeway, Smart & Final Stores, Spartan Stores, SUPERVALU, The
Fresh Market, The Kroger Co., United Natural Foods, Village Super Market, Vitamin Cottage Natural Food Markets, Weis Markets, Whole Foods Market
WB Corporate Finance Convenience Store Index includes: Alimentation Couche-Tard, Caseys General Stores, Pantry

Food For Thought


18 General Market Update

Quarterly Market
Update All
Industries

William Blair

Domestic M&A Market Summary


U.S. Activity Trends
M&A Activity
Undisclosed

Number of Deals
18,000
12,000
6,000
0

Middle Market

12,420

13,340

11,488

2006

2007

2008

>$750M

Deal Value

12,749

13,397

14,634

2010

2011

2012

12,089

Deal Value
($ in billions)
12,479
$1,800
$1,200
$600
$0

8,792

9,934

10,087

2003

2004

2005

147

233

281

362

460

228

156

287

262

312

Middle Market

4,239

4,527

4,453

4,548

4,537

4,766

4,144

6,224

5,360

5,155

4,203

3,920

Undisclosed

4,406

5,174

5,353

7,510

8,343

6,494

5,075

6,238

7,775

9,167

7,574

8,182

Deal Value

$688

$992

$1,297

$1,647

$1,750

$1,075

$886

$1,048

$1,174

$1,104

$1,294

$1,829

9,375

2009

2013

LTM

Number of Deals
>$750M

312

377

Middle-Market M&A Activity


<$50M

Number of Deals
10,000

4,239

4,527

4,453

4,548

4,537

$50-250M
4,766

4,144

$250 -750M
6,224

5,360

Deal Value
5,155

4,203

Deal Value
($ in millions)
3,920

$600
$400
$200

$0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

LTM

Number of Deals
$250M-$750M

314

402

424

536

627

417

269

457

475

467

512

538

$50M-$250M

1,065

1,218

1,265

1,294

1,333

1,195

791

1,138

1,148

1,151

1,095

1,097

<$50M

2,860

2,907

2,764

2,718

2,577

3,154

3,084

4,629

3,737

3,537

2,596

2,285

Deal Value

$292

$351

$364

$421

$466

$355

$239

$370

$383

$380

$387

$391

Private-Equity Activity
Undisclosed

Number of Deals
5,000
1,200

1,646

1,812

2004

2005

Middle Market

>$750M

Deal Value

Deal Value
($ in billions)
$800

2,247
2,316

1,821

1,462

2007

2008

2009

1,976

2,035

2,091

2010

2011

2012

1,749

2,092

2013

LTM

$0
2003

2006

Number of Deals
>$750M
Middle Market

$400

33

61

84

106

149

64

34

94

88

95

88

113

626

906

859

998

826

788

742

869

698

660

507

550

Undisclosed

541

679

869

1,143

1,341

969

686

1,013

1,249

1336

1154

1429

Deal Value

$120.4

$224.6

$287.6

$523.7

$644.3

$243.7

$149.3

$272.3

$268.6

$264.5

$282.6

$371.7

Note: Year-to-date as of September 30, 2014


Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis. Data represents announced deals only

Food For Thought


19 Domestic M&A Market Summary

William Blair

U.S. Valuation Trends


Median EV/EBITDA Multiples
Middle Market

Overall Market

15.0x
12.0x
9.0x
6.0x
3.0x

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

LTM

Middle Market

7.5x

7.4x

8.7x

10.1x

10.0x

9.5x

7.9x

6.4x

9.3x

10.0x

9.1x

9.9x

10.2x

Overall Market

7.9x

8.0x

9.1x

10.3x

11.0x

11.2x

9.0x

7.4x

9.9x

10.8x

9.6x

10.0x

11.1x

Median EV/EBITDA Middle-Market Multiples


< $50M

16.0x

$50M-$250M

$250M-$750M

12.0x
8.0x
4.0x
0.0x
< $50M

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

LTM

4.1x

7.1x

6.4x

7.2x

10.2x

7.8x

4.9x

3.9x

8.8x

9.0x

6.8x

8.1x

7.8x

$50M-$250M

7.5x

6.9x

8.7x

11.3x

9.5x

10.4x

9.1x

7.1x

9.3x

10.0x

9.2x

11.3x

10.9x

$250M-$750M

9.7x

9.2x

9.1x

10.0x

11.0x

9.4x

8.3x

7.9x

9.7x

10.7x

10.2x

12.9x

11.5x

Average Acquisition Premiums


1-Week Premium

4-Week Premium

50%
40%
30%
20%
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

LTM

1-Week Premium

36%

32%

28%

26%

26%

27%

36%

38%

34%

36%

36%

23%

29%

4-Week Premium

38%

40%

32%

31%

31%

29%

37%

41%

38%

39%

39%

30%

32%

Notes: Data limited to a range of 1 to 100 and LTM is as of September 30, 2014
Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis. Data represents announced deals only

Food For Thought


Domestic M&A Market Summary 20

William Blair

U.S. Equity Capital Markets Summary


Historical IPO Issuance
200

187

175
139

150
100

119

105

95
54

50

28

35
13

19

39

50
25

20

21

48

56

70

63

54

21

0
2009 2010 2011 2012 2013 2013 2014
YTD YTD

1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

Historical Follow-On Issuance


700
600

657
564

500

506
399

400

470

464

501

300
135

200

128
50

100

86

130

98

115

127

152

139

173

193

198

183

120

0
2009 2010 2011 2012 2013 2013 2014
YTD YTD

1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs

IPO Pricings by Sector Last 4 Quarters:


243 Total Deals

14

Business Services

22

61

Follow-on Pricings by Sector Last 4 Quarters:


694 Total Deals

26

133

Consumer

68

Financial

Industrial
94

Technology

Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis

Food For Thought


21 Domestic M&A Market Summary

Consumer
66

Financial
Healthcare

Healthcare

26

Business Services

48

205
174

Industrial
Technology

William Blair

Debt Capital Markets Summary


Average Equity Contribution
Less than $50 million EBITDA

More than $50 million EBITDA

60%
50%
41%
40%

36%

40%

37% 38%

31%

40%
32%

32%

35%

34%
30%

30%

46% 47% 45%


38%

40%

41%

32% 30%
29%

41%
37%

49%

46%

39%

37%

33%

20%
10%
0%
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 YTD

Quarterly LBO Debt Multiples Less Than $50 Million EBITDA


Total Debt/EBITDA

Senior Debt/EBITDA

7.0x

7.0x
6.0x
5.0x
4.0x

3.6x

3.8x

3.7x

4.2x

4.0x

4.0x

3.8x
3.7x

3.0x
3.0x
2.0x
2001

4.2x

4.9x

6.0x

4.8x

5.0x
4.4x

4.5x

4.8x

2003

3.3x
2004

4.4x

5.0x

5.1x

5.0x
4.0x

3.4x

3.8x

2.2x
2002

3.8x

5.1x

3.7x
3.1x

3.0x

3.2x

2.0x
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Quarterly LBO Debt Multiples Greater Than $50 Million EBITDA


Total Debt/EBITDA
6.8x

7.0x

5.5x
6.6x

6.0x
5.0x

Senior Debt/EBITDA

4.1x

4.5x

4.8x

5.3x

5.7x

4.9x

4.8x

5.0x

4.4x

4.4x

3.0x
2.0x
2001

2.6x

4.3x

2.6x
2002

2003

2004

5.5x
4.9x

3.9x

3.5x
2.9x

6.0x

5.1x

4.0x

4.0x
3.1x

5.3x

5.0x
4.0x

4.0x
3.0x

3.1x

2.9x
2005

7.0x

2.0x
2006

2007

2008

2009

2010

2011

2012

2013

2014

Sources: Dealogic and Standard & Poors as of September 30, 2014

Food For Thought


Debt Capital Markets Summary 22

William Blair

William Blair Food & Beverage and Food Convenience & Retail Investment Banking
Food & Beverage Production
Jim Bertram is the global head of the firms consumer and retail investment banking group. Before joining William
Blair in 2006, he was the co-head of Banc of America Securities global consumer products investment banking
practice. In this role, he assisted domestic and international consumer products manufacturers and distributors in
executing mergers and acquisitions and raising debt and equity capital through both public and private market
transactions. Before joining Banc of America Securities, he was responsible for leading Deutsche Bank Alex.
Browns food-and-beverage investment banking activity. Before working at Deutsche Bank Alex. Brown, he was
vice president in the corporate finance department at George K. Baum & Company, an investment and merchant
banking firm where he advised clients in executing public equity offerings, mergers and acquisitions, and private
debt placements. Mr. Bertram began his career in investment banking at Salomon Brothers.
Mr. Bertram graduated with highest honors from the University of Illinois with a B.S. in finance.
jbertram@williamblair.com
+1 312 364 5426
Brent Smith is a managing director in the consumer and retail group. Since joining William Blair in 2000, Mr.
Smith has also been a member of the firms mergers-and-acquisitions practice and currently heads William Blairs
consumer M&A effort. Over this period, he has worked on a range of public and private M&A, primarily in the
consumer and industrial sectors, totaling more than $18 billion in aggregate transaction value. Mr. Smiths
financial advisory experience includes sell-side and buy-side transactions, corporate divestitures, take-private
transactions, strategic options studies, valuations, fairness opinions, and special committee situations. Mr. Smith is
a member of William Blairs Fairness Opinion Committee. Before joining William Blair, Mr. Smith worked at both
Lehman Brothers and Heitman Financial.
Mr. Smith holds an M.B.A. with honors from the University of Chicago and a B.B.A. with high distinction from the
University of Michigan.
bsmith@williamblair.com
+1 312 364 5392
Adam Filkin joined William Blair in 2007 and is a managing director in the consumer and retail investment
banking group. Mr. Filkin has extensive transaction experience across numerous consumer verticals, including
food, consumer products, and personal care. He joined William Blair from Banc of America Securities, the
investment banking arm of Bank of America. Mr. Filkin spent three years at Banc of America, serving as an
associate in the consumer and retail practice. Before joining Banc of America, Mr. Filkin was a manager at A.T.
Kearney, focusing on growth strategies and operational improvement studies for consumer and retail companies.
He has more than 10 years of experience working with consumer and retail companies.
Mr. Filkin holds an M.B.A. with a concentration in finance from the University of Chicago and holds a B.S.E. in
chemical engineering from the University of Michigan.
afilkin@williamblair.com
+1 312 364 8077

Food For Thought


23 William Blair Food & Beverage and Food Convenience & Retail Investment Banking

William Blair

Food & Convenience Retail


Tim Carroll joined William Blair in 2002 and serves as a managing director in the consumer and retail investment
banking group. He joined William Blair from Andersen Corporate Finance LLC, the investment banking arm of
Andersen. Mr. Carroll spent four years at Andersen, serving as a national director and managing director/co-head
of the products and business services industry team. Before joining Andersen, he was a founder and principal of
Wyndam Capital, a broker-dealer serving middle-market companies, and a founder and principal of a $120 million
private-equity fund. Mr. Carroll has served on the board of directors for seven privately held businesses and has
more than 27 years of investment banking experience, 7 years of commercial banking experience, and 2 years of
commercial real estate experience.
Mr. Carroll graduated with a B.S. in business finance from Indiana University.
tcarroll@williamblair.com
+1 312 364 8532
Michael Siska is a managing director in the consumer and retail investment banking group at William Blair. He
originally joined the firm in 2002 and then rejoined in 2006 after attaining his M.B.A. at the University of Chicago.
Before joining William Blair, Mr. Siska worked in private equity for Allstate Private Equity in Chicago and 3i Group
in London. He also spent five years in the products and business services industry group at Andersen Corporate
Finance LLC, the investment banking arm of Andersen. He focuses on specialty retail, food retail, restaurants, and
consumer services.
Mr. Siska earned an M.B.A. from the University of Chicago and a B.S., with honors, from the University of Illinois at
Urbana-Champaign.
msiska@williamblair.com
+1 312 364 5393
Europe
Alex Matthes is a managing director at William Blair. Before he joined William Blair in 2013, Mr. Matthes worked
in Commerzbanks M&A advisory team with a focus on consumer and retail. Before joining Dresdner Kleinwort in
2006 as vice president, he worked in the M&A department of Lazard as analyst and associate since 2000.
Mr. Matthes studied business administration at the universities of Frankfurt and Cologne and obtained a masters
degree in business administration (Diplom Kaufmann) in 2000.
amatthes@williamblair.com
+49 69 509527 612
Beth Pickens is a managing director and head of European consumer banking. She joined William Blair in 2000
and has been located in William Blairs London office since 2001. Ms. Pickens specializes in advising international
consumer growth companies across consumer products, personal care, and consumer services. She is also an angel
investor in early-stage consumer companies, including Bonobos.com and DefySupply.com.
Ms. Pickens holds a masters degree in business administration from the University of Chicago Graduate School of
Business and a bachelors degree in finance from the University of Illinois at Urbana-Champaign. She also
completed studies at the Universit de Paris IV-Sorbonne. A Chicago native, she lives in London with her husband
and children.
epickens@williamblair.com
+44 20 7868 4479

Food For Thought


William Blair Food & Beverage and Food Convenience & Retail Investment Banking 24

William Blair

Recent William Blair Consumer & Retail Transactions


$105,000,000

Not Disclosed

Not Disclosed

Follow-on Offering

Growth Equity
Recapitalization

has been acquired by


Monomoy Capital
Partners

November 2014

October 2014

October 2014

Not Disclosed

$156,543,750

$85,000,000

$53,117,980

has a strategic
investment from
Standard Chartered
Private Equity

Follow-on Offering

Senior Credit Facility

Follow-on Offering

September 2014

September 2014

August 2014

August 2014

$123,214,290

$89,125,000

$373,749,990

$171,646,263

Initial Public Offering

Follow-on Offering

Follow-on Offering

Follow-on Offering

Snyders Lance

July 2014

July 2014

July 2014

June 2014

June 2014

CAD$170,000,000

Not Disclosed

$64,166,663

$100,624,980

$202,000,000
has been acquired by

has been acquired by

has been acquired by

TreeHouse Foods, Inc.

Milner Milling, Inc.

Initial Public Offering

Initial Public Offering

May 2014

May 2014

May 2014

April 2014

$61,300,000

Not Disclosed

Not Disclosed

Not Disclosed

Not Disclosed

has been acquired by


The Hain
Celestial Group

has been acquired by

has been acquired by


Greencore Group

has been acquired by


ADKM, Inc.
(DBA Harry's)

has been recapitalized by

Bregal Partners

April 2014

March 2014

February 2014

January 2014

December 2013

$51,500,000

$290,950,000

$230,000,000

$59,400,000

$120,750,000

has divested Mervin


Manufacturing Inc. to

TZP Group

has divested certain


assets in Charlotte to

Altamont Capital
Partners

Initial Public Offering

Initial Public Offering

Publix Super Markets

Initial Public Offering

November 2013

November 2013

November 2013

October 2013

October 2013

$45,755,000

$775,500,000

$147,857,145

$644,000,000

122,000,000

Credit Tenant Lease

Follow-on Offering

Initial Public Offering

Follow-on Offering

October 2013

September 2013

August 2013

July 2013

Food For Thought


25 Recent William Blair Consumer & Retail Transactions

a portfolio company of
Gilde Equity Management
has been acquired by
Gilde Buy Out Partners

June 2013

William Blair

William Blair Consumer & Retail Coverage


Mark Miller, CFA

+1 312 364 8498

Broad Assortment and Hardlines,


E-commerce, Health, Beauty, and Convenience

Sharon Zackfia, CFA

+1 312 364 5386

Apparel and Accessories, Leisure, Restaurants

Company

Ticker

Company

Ticker

Amazon.com
Blue Nile
Cabelas
Costco Wholesale Corporation
CVS Caremark Corporation
Dicks Sporting Goods
Fairway Group Holdings
Fresh Market (The)
GNC Holdings
JD.com
MercadoLibre
Natural Grocers by Vitamin Cottage
Sportsmans Warehouse Holdings
Target Corporation
Tractor Supply Company
Vitamin Shoppe
Walgreen Co.
Wal-Mart Stores
Wayfair Inc.
Whole Foods Market
Zulily

AMZN
NILE
CAB
COST
CVS
DKS
FWM
TFM
GNC
JD
MELI
NGVC
SPWH
TGT
TSCO
VSI
WAG
WMT
W
WFM
ZU

BJs Restaurants
Bloomin Brands
CarMax
Carnival Corporation
Cheesecake Factory (The)
Chipotle Mexican Grill
Dunkin Brands Group
El Pollo Loco Holdings
Harley-Davidson
Life Time Fitness
Lululemon Athletica
Panera Bread
Papa Murphys Holdings
Potbelly
Royal Caribbean Cruises
Sonic Corp.
Starbucks Corporation
Tillys
Tumi Holdings
Under Armour
Urban Outfitters
Zoes Kitchen
Zumiez

BJRI
BLMN
KMX
CCL
CAKE
CMG
DNKN
LOCO
HOG
LTM
LULU
PNRA
FRSH
PBPB
RCL
SONC
SBUX
TLYS
TUMI
UA
URBN
ZOES
ZUMZ

Jon Andersen, CFA

+1 312 364 8697

Daniel Hofkin, Analyst

+1 312 364 8965

Consumer Products

Hardlines, Specialty Retail

AptarGroup
Boulder Brands
Church & Dwight
Colgate-Palmolive Company
Fox Factory Holding
Inventure Foods
J&J Snack Foods
J.M. Smucker Company (The)
Jarden Corporation
Kellogg Company
Keurig Green Mountain
Mead Johnson Nutrition Company
Perrigo Company
Prestige Brands Holdings
Procter & Gamble Company (The)
Scotts Miracle-Gro Company (The)
SodaStream International
Tempur Sealy International
TreeHouse Foods

ATR
BDBD
CHD
CL
FOXF
SNAK
JJSF
SJM
JAH
K
GMCR
MJN
PRGO
PBH
PG
SMG
SODA
TPX
THS

Amy Noblin, Analyst

+1 415 248 2874

Apparel and Accessories


Abercrombie & Fitch
Coach
DSW
Francescas Holdings
Michael Kors Holdings

ANF
COH
DSW
FRAN
KORS

Advance Auto Parts


AutoZone
Bed Bath & Beyond
Luxottica Group
Mattress Firm Holding Corp.
OReilly Automotive
PetSmart
Regis Corporation
Restoration Hardware Holdings
Ross Stores
Steiner Leisure
TJX Companies (The)
Ulta Salon, Cosmetics & Fragrance
Williams-Sonoma

AAP
AZO
BBBY
LUX
MFRM
ORLY
PETM
RGS
RH
ROST
STNR
TJX
ULTA
WSM

Nordstrom
Tiffany & Co.
Tumi Holdings
Vera Bradley
Vince Holding Corp

JWN
TIF
TUMI
VRA
VNCE

Food For Thought


William Blair Consumer & Retail Coverage 26

William Blair

Notes

Food For Thought


27 Notes

William Blair

Disclosures

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and
Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Services Authority
("FSA") in the United Kingdom. William Blair & Company only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions
situated within the United States and are not offered to persons or institutions outside of the United States.
This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined in COBS
3.5 and 3.6 of the FSA Handbook). This advertisement is not intended to be investment advice.
William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com
November 20, 2014

Food For Thought


Disclosures 28

November 2014
Monthly Update

About William Blair


Investment Banking
Food For Thought_Current.indd 1-2

William Blairs investment banking group combines signiicant transaction experience,


rich industry knowledge, and deep relationships to deliver successful advisory and
inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth inancing,
inancial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve. From
2010 - 2013, the investment banking group completed 250 merger-and-acquisition
transactions worth more than $52 billion in value, involving parties in 27 countries and
four continents, was an underwriter on over 20% of all U.S. initial public offerings and
arranged more than $11.5 billion of debt inancing.

Food for Thought

Overview, Analysis, and Trends


in the Food and Food Retailing Industries

11/12/2014 2:31:09 PM