Kenlake

Kenlake
Industry
Profile,
Consumer
Insights
and
Product
Performanc
e
 Contents
 Overview (All Categories)
 Executive Summary

National Trends

Kroger Trends

Recommendations
 Complete Index
Executive Summary
Snack Nuts
National Trends
 51% of consumers see nuts as everyday snack (in 1989 this was
14%)
 Key Snack Food – Tonnage up 47.4% since 2000
 Expected tonnage growth at 22% over the next 5 years
 Largest segment is still peanuts at 26% and cashews at 22%,
almonds are the fast growing up 29% for 05
 Snack nuts are a 2.4B category with only 39.7% coming from
Grocery, 39.4% from Supercenters
 14.2% share is Drug and 6.5% clubs. Clubs are the fastest
growing segment
 There was a 1% channel migration to Drug and Supercenters in
05.
 CB has high loyalty nationally
 Executive Summary
Snack Nuts
Kroger Trends
 Kroger out performs retail peer group
 Weakness at North West Divisions (QFC & FM)
 Margin for 05 was off -9.19% with sales flat and units up 4.34%
 63.9% unit share with FM and Smiths as the greatest growth opts

Recommendations
 Package redesign and consistency as well as innovative plastic tubs and
gusset bags
 Premium Nuts (flavors, coated specialty-Virginia Large Peanuts)
 Produce expansion in Produce (growing department)
 Continue off shelf merchandising (shippers and holiday packs)
 Executive Summary
Hot Cereal
National Trends
 Down 3% from 03 to 05
 Growth expected at 8.7% for next 5 years
 1.7B category with 2/3 of sales coming from traditional grocery
 CB has a higher repeat purchase than Quaker
 Consumer shift to low sugar and sugar free products (where growth
is over the next 5 years)
 Natural and Organics are emerging and will carve out a segment of
the category
 Executive Summary
Hot Cereal

Kroger Trends
 Kroger is stronger in penetration and growth than peers
 Up in as sales 7.56% and units 15.37%
 Kroger has 32.4% unit share with Quaker at 58.3%
 New Disney items planned for 06 at new retail tier

Recommendations
• Additional Flavors
• Cross merchandise shippers in key areas (near produce, bakery and dairy
case)
• Trial Size packets to get consumer trial, consumers are loyal when they try
CB
• Convenience single serve should be watched as a possible growth area (new
innovation)
 Executive Summary
Baking Nuts

National Trends
• Baking nuts seen as healthy snack food for desserts
• Key components for salads, Asian and baking
• Diamond only dominant brand in category with solid loyalty nationally
 Executive Summary
Baking Nuts
Kroger Trends
 Divisions are growing and are strong against peer group
 CB is up significantly in sales, units and GM
 Kroger has a 71% unit share of the category with Diamond at 21.5%

Recommendations
 Consider adding PS or changing to PS. Need to update packaging to a more
premium look
 Look to promote CB baking nuts as 100% category solution with CCM team
 More points of interruption in produce, frozen, specialty sections with clip
strips
 Address any gaps in product offerings versus Diamond
 Drive trial through loyalty offerings
 Executive Summary
Cocoa
National Trends
 European and blends seen as high profile at recent Fancy Food Show in San
Francisco
 Chocolate blends are offered at coffee shops (Starbuck’s and other premium
sellers)
 Executive Summary
Cocoa
Kroger Trends
 Category flat in sales and CB down -4.7%.
 Both brands and CB spending to drive tonnage units were up
 GM down -7.8% and -9.0% respectively
 Converting to Disney on canisters

Recommendations
 Update PS with new sku’s and packaging for focus on more premium
 Mix-ins (single serve) as an option here as well
 Continue to merchandise with shippers
 Executive Summary
Gelatin/Puddings
National Trends
 Gelatin/Puddings have declined by -4% since 2000 in consumption
 Consumption is expected to continue to decline through 2010
 Gelatins are at $190M total sale with puddings at $299M nationally
 80% of this gelatin buyers purchased through traditional grocery
 84% of pudding buyers purchased through traditional grocery
 Category base sales will stabilize at core users
 Consumers have moved to RTE
 Executive Summary
Gelatin/Puddings
Kroger Trends
 Kroger out performs retail peer group significantly
 Weakness at North West Divisions (QFC & FM)
 Sales were up .66%, units 1.29% and GM down -3.83% (category down
slightly)
 CB has a 27.1% unit share
 Disney items are coming in 06

Recommendations
 Package redesign (invest or exit)
 Focus on larger sizes rationalizing sku’s
 Continue to merchandise at key selling times (Holidays) through shippers
 Executive Summary
Powdered Drink Mix
National Trends
 From 2000-2004 category decreased 11%
 Sales rebounded nationally in 2005
 Sales are expected to grow 3% by 2010
 Category is a $1.2B in sales nationally
 61% is purchased in traditional grocery
 Kool-Aid has a strong loyalty and high repeat purchases
 Category is being driven by mix-ins
 Executive Summary
Powdered Drink Mix

Kroger Trends
 Kroger out performs the peer group (double in penetration)
 Category up 13.1% in sales down in units 3.7%, CB down -9.0% sales flat in
units
 Kraft (Crystal Light and Kool-Aid) has a 82% unit share
 Packets are being converted to Disney
 Kroger is 22 sku’s of mix-ins in 06

Recommendations
 Look at investment on mix-in this trend looks to have staying power
 Continue off shelf merchandising for key selling times
 Executive Summary
Dried Fruit

National Trends
 Is a $1.6B category nationally
 64% of sales are in traditional grocery
 CB has a high loyalty and repeat purchase nationally
 Dried fruit seen as a healthy snack by consumers
 Executive Summary
Dried Fruit
Kroger Trends
 Category and CB are up across sales, units and GM
 CB penetration is 16% in sales and 18% in units (Raisins)
 $60M category at Kroger
 No dominant brand outside of Raisins

Recommendations
 Barriers to business entry are low
 Components can be used in other products such as Trail Mix
 Current facility and equipment can be utilized with this product line
 Executive Summary
Trail Mix
National Trends
 $306M category nationally
 47% of sales are coming from the grocery channel
 Walmart accounts for 25.6% and Clubs are at 6.0%
 16.3% of sales come from other channels i.e. drug and convenience.
 Nationally consumers are very loyal to CB.
Executive Summary
Trail Mix
Kroger Trends
 We currently have no trail mix in CB
 Trail mix is a $4 Million dollar category at Kroger
 Sales are up 6.8%, units are up 2.2%

Recommendations
 Use existing facilities and products to create a line of CB
Trail Mixes
 Create in both gusset bag and tubs for trial (consumers are
visual with trail mix)
 Current facility and equipment can be utilized with this
product line
dunnhumby
Kenlake
3-Year Business
Plan
 Kenlake Returns to
Company
 Snack Nut GM $14,516,00
0$7,811,00
 Baking Nut GM
0
$6,854,000
 Hot Cereal GM
 Desserts GM $4,384,000
 Powdered Beverage $2,983,000
GM $12,297,00
 EBITDA 0
 Kenlake Total
 KENLAKE
Grow th vs. Plant Contribution Margin
$14,000,000
MAINTAIN WINNERS

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

BAD FIT OP P ORTUNITIES

($2,000,000)
0.0 10.0 20.0 30.0 40.0 50.0 60.0

5 Year Growth P rojec tions

Kenlake Foods Share of Market vs LY
(units)

Category ’04 SOM ’05 SOM Variance

Snack Nuts 66.6 65.7 -0.9

Baking Nuts 64.5 69.5 +5.0
Hot Cereal 29.1 31.0 +1.9
Cocoa Mix 36.4 34.3 -2.1
Puddings 38.7 37.8 -0.9
Gelatins 36.2 37.9 +1.7
Powder 18.9 19.7 +0.8
Beverage
 2005…Creating Category
News
 Pine nuts “finest”
 170,407 units scanned
 MBS lower sugar
“watching the
waistline”
 54,934 units scanned
 Tube nuts-- almond,
smoke almond and hot
& spicy peanuts “grab
& go”
 459,292 units scanned
 FMV Cocoa “shoppers
on a budget”
 50,307 units scanned
 2006… New Category
News!
 51 new items
 23 are Disney Magic
Selections (about 10% of
the company’s total DMS
sku’s)
 2.7M lbs projected
tonnage or 6% of our ’06
budget
 The annualized affect will
be
 30M units
 $39M in retail sales
 $23M in plant sales
 9M lbs of tonnage
 KENLAKE 2006 NEW ITEMS
Annual Impact (all in 000’s)

Period Item Retail Sales Plant Sales Units Tonnage CM

2 Sunflower Kernels Clip Strips $223 $150 8 63 $64
3 (3) Baking Nuts Clip Strips $866 $560 7 71 $210
4 (9) DMS Cool Splashers $3,400 $1,828 20,404 191 $408
4 Black Walnuts $507 $360 300 42 $75
5 Cashew Halves 16oz $2,300 $1,440 400 400 $83
6 (3) DMS Instant Oatmeal $3,500 $2,740 1,500 1,400 $1,050
6 (2) A/C Lower Sugar Instant Oatmeal $520 $521 400 320 $120
7 (9) DMS Gelatins/Pudding $1,500 $946 2,800 613 $168
8 (2) DMS Milk Mixers $862 $580 295 480 $59
11 (20) PS Gourmet Nuts $780 $546 156 117 $156
11 PS Virginia Super Large Peanuts $112 $67 16 15 $24

Totals 51 New Items $14,570 $9,738 26,286 3,712 $2,417

 Snack Nuts
Go-to-Market Strategy

 Merchandising
 Brand block set

KOMPASS period 5
 Graphics
 Q4 transition
 ‘Fresh’
communication
 Tube nuts dump
bins
 1 x 2 displays
 Snack Nuts
Go-to-Market Strategy
 SOC

65.7 in 2005

67.0 goal for 2006
 PS role

Execution-driven
 LCM participation
 Canzilla Q4 plan
 10/$10’s on
peanuts
 6 planned in ‘06
 Buying strategy
Snack Nuts New sku’s for
‘06
 Cashew halves 16z
 $2.3M sales, 1.4M units
 Sunflower kernels

$223K sales, 576K units
 Gourmet nuts in Q4
 ‘Finest’ MyLife customer
 Trader Joe’s target
 20 items, 50 store test
 PS Virginia Super Large
Peanuts
 Q4 launch via 1 x 2
shippers
 Updating Kroger
Snack Nut Category
 Current design is 10+
years old and does not
convey product quality
 Branding is not
consistent across
franchise
 Competitive Pressure
 (planters campaign, more
market entrants...)
 Capitalize on High
Market Share
 Objectives
 Create a strong identity
for Kroger nuts at shelf
 Enhance shop-ability
through brand
recognition and clarity
of offerings
 Insure design speaks to
quality and freshness
of product
 Be on shelf with new
design for 4th quarter
 Achieving Success
 Market Research -
Conducted Competitive
Audit of Category
 Consumer Research -
Qualitative Research to
ensure an effective
design system
 May 10-11 Focus Groups
 Win at FMOT - Increase
presence in store, at
shelf
Snack Nuts Threats
 Planters ’06 strategy
 21.9% KR share vs. 37.8% US FDM
share per AC Nielsen
 ‘Famously Fresh’ spending campaign
 Pallet ready displays and shippers
 New sku’s
 - Indulgent line, NUT-trition, Heart Healthy,
South Beach, Trail Mixes, Tube Nuts,
flavored peanuts
 MR Peanut 100th anniversary
celebration
 Baking Nuts
Go to Market Strategy
 Multi-purpose snack
 Good for you
 Lifestyle-driven
 New sku
 2.25z Black Walnuts
 SOC
 69.5 in 2005
 71.0 goal for 2006
 100% solution?
 PS brand
development?
Baking Nuts Clip Strips
 Solid profit
potential
SKU Scan GM EBITDa

Walnuts $39.6 $14.00

0
Almond $45.3 $33.00
s 6
Pecans $45.3 $38.00
6
 Hot Cereal
Go to Market Strategy
 SOC
 31.0 in 2005
 32.4 goal for 2006
 Remove seasonality
 Fill the Cloud line
 Graphics change in ‘05
 1 x 2 displays
 Ready to display mods
 “Buy more, save more”
 New sku in p6
 Apple Cinnamon 50%
lower sugar
 Hot Cereal
Go-to-Market Strategy
 Innovation
 “Buy more, Save
more” coming in
period 6
 Biggest summer
selling season
ever!
 Over 700,000
units expected to
sell vs 300,000 ly
 Dry Desserts
Go-to-Market Strategy
 SOC
 37.8 in 2005
 38.0 goal in 2006
 CCM plans
 Declining category
 Reduce total space from
8’ to 4’ in 2007
 Assortment
 Trimmed 17
underachieving sku’s in
’05
 Delete 2 sku’s in p6
 1 x 2 displays
 Graphics need work
Desserts
 Exit approach
Powder Beverage
Go-to-Market Strategy
 SOC
 19.7 in 2005
 21.2 in 2006
goal
 Assortment
 Drink Aid goes
to Custom
 Disney Cool
Splashers
Powder Beverage
 Exit approach
Cocoa
Go-to-Market Strategy
 Assortment
 Kroger
Chocolate Drink
Mix moves to
Disney Magic
Selections in p8
 PS plans
 Graphic
enhancements
 Club sizes?
Produce Nuts
 2005 performance
 $2,854,925 retail sales
 $1,367,371 retail gm + EBITDa
 $265,889 total EBITDa
 478,480 scanned 16z units

298,428 cashews
 176,535 mixed nuts
 3517 peanuts
Produce Nuts 2007
Strategy
 $900,000 capital project
 4.4MM lbs for the East
divisions (000’s)
 1,300 pecans 850 walnuts
 800 almonds 800 pistachios
 496 cashews 170 deluxe mix
 $930,000 incremental plant CM
Dried Fruit in 2008 plans

 6 to 10 sku’s in gusset bags

 $25.1 MM total retail sales in
2005
 Fact-gathering stage right now
 Trail Mix 2008 Plans
 12 to 15 sku’s in
gusset bags
 $4.4MM total retail
sales in 2005
 Schutzman to assist
with
 Technology
 Suppliers
 Formulas
 Disney Instant Oatmeal

 3 sku’s in p6
 Annual projections
 $3.5 MM retail
sales
 1.5 MM units
 1 x 2 shipper
 Disney enterprise-
wide launch in p9
 DMS Oatmeal Proforma

EDLP Retail $3.890 $2.990 $1.650

Unit Transfer $2.670 $1.830 $1.310
Disney Royalty -- $.090 --
Unit GM $1.220 $1.160 $0.340
GM Rebate 31% 39% 21%
Unit EBITDa -- $0.366 $0.174
GM + EBITDa $1.220 $1.526 $0.514
Combined Profit 31% 51% 31%
Rate
Disney Desserts
 9 total sku’s in p7
 5 gelatins, 4 puddings
 Annual Projections
 $1.5 MM retail sales
 2.8 MM units
 1 x 2 shipper available
 Disney Powdered Beverage
 9 Disney Magic
Selections Cool
Splashers in p4
 1 x 2 shipper available
 11 Drink Aid sku’s
deleted in p4
 2 Disney Chocolate
Drink Mix in p8
 2 Kroger Chocolate
Drink Mix deleted
Welcome aboard… our salty crew awaits you!

2006
 Kenlake Marketing
Advisory Board
 Members
 T. Alexander, C. Mendelsberg, M. Moore,

B. Walczak, K. Scott, J. Koch, D. Harp, C.

Helland, D. Dill, J. Fetters, F. Richter, J.
Smith
 Guests: LB Miller, F. Wilson, J. Dewey
 Meeting Frequency: twice per year
 Objective: Taking Kenlake to the next level
 Product assortment, innovation, pricing,

communications, goal-setting by dept,

packaging, material costs, ethnic
marketing, Customer First Strategy
 GPG 3 Year Business Plan:
Projected Sales Tonnage (All 000’s
excluded)

Customer Sales/Tonn 2007 2008 % Increase 2009 %Increase

Frito Lay Sales $7,500 $7,500 100.0% $7,500 100.0%

Tonnage 7,500 7,500 100.0% 7,500 100.0%
Keefe Sales $2,400 $2,500 106.3% $2,674 104.9%
Tonnage 2,340 2,450 104.7% 2,580 105.3%
Brach’s Sales $2,000 $2,000 100.0% $2,000 100.0%
Tonnage 1,500 1,500 100.0% 1,500 100.0%
Kellogg Sales $1,650 $1,650 100.0% $1,650 100.0%
Tonnage 1,500 1,500 100.0% 1,500 100.0%
Dollar Sales $1,200 $1,250 104.2% $1,300 104.0%
General
Tonnage 290 300 103.4% 310 103.3%
AWG Sales $695 $675 97.1% $650 96.3%
Tonnage 570 550 96.5% 535 97.3%
Comments
Kroger Convenience Stores tube nuts have been presented to the C-stores

Frito Lay Honey Roast- We have to match Anheiser Busch formula and the volume
potential is 1.6 MM lbs
Brach’s is secure for this year

Kashi is secure for the year, and there are no other co-packers. We are not certain that
Kelloggs is committed to this business for the long term

Nutrisystem instant oatmeal research is ongoing and we should submit a bid by July

Dollar General Status:

Snack Nuts - Can't compete with Star Nuts price

Hot cereal - We can't get close to Sturm's price on oatmeal

Gelatin & Pudding - Exited business last year

Baking Nuts - Cost is too high

Cocoa - Cost is too high

Our People Are
Great…
Appendix
Kenlake EBITDA
by Period ($000’s)

1800
1600
1400
1200
1000 Budgeted
800 Actual
600
400
200
0
10
11
12
13
1
2
3
4
5
6
7
8
9

1
2
3
 • At Kroger, The Canned Nuts
Category and Corporate Brand Are
Outperforming the Remaining Market
Canned Nuts –
Canned Nuts
Corporate Brand
8.0 4.0
52 Weeks Fiscal YTD Period 13 52 Weeks Fiscal YTD Period 13
6.0
2.0
4.0
0.0
2.0

0.0 -2.0

-2.0
-4.0
-4.0
-6.0
-6.0

-8.0 -8.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart

52 Weeks 6.3 2.8 -3.2 52 Weeks 0.6 3.1 -7.6

Fiscal YTD 6.3 2.8 -3.2 Fiscal YTD 0.6 3.1 -7.6
Period 13 2.8 1.3 -7.4 Period 13 -4.0 1.7 -0.9

DOLLARS
Period End 1/28/06
% CHG VS YAG *Rem FDM excludes WalMart

Copyright © 2006 ACNielsen

a VNU business
 Category and Corporate Brand Are
Underperforming the Remaining
Market Baking Nuts –
Baking Nuts
Corporate Brand
20.0
20.0 52 Weeks Fiscal YTD Period 13
52 Weeks Fiscal YTD Period 13
10.0
15.0

0.0
10.0
-10.0
5.0
-20.0

0.0
-30.0

-5.0 -40.0

-10.0 -50.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart

52 Weeks 7.2 8.9 16.2 52 Weeks 10.7 19.5 -45.0

Fiscal YTD 7.2 8.9 16.2 Fiscal YTD 10.7 19.5 -45.0
Period 13 4.2 9.5 -10.0 Period 13 17.2 13.7 0.0

DOLLARS
Period End 1/28/06 *Rem FDM excludes WalMart
% CHG VS YAG
Copyright © 2006 ACNielsen
a VNU business
 • At Kroger, The Oatmeal Category
and Corporate Brand Are
Outperforming the Remaining Market
Oatmeal –
Oatmeal
Corporate Brand
16 25.0
52 Weeks Fiscal YTD Period 13 52 Weeks Fiscal YTD Period 13
14
20.0
12
15.0
10

8 10.0

6 5.0

4
0.0
2
-5.0
0

-2 -10.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart

52 Weeks 10.6 1.5 14.7 52 Weeks 9.2 -7.6 23.3

Fiscal YTD 10.6 1.5 14.7 Fiscal YTD 9.2 -7.6 23.3
Period 13 4.3 -0.5 9.4 Period 13 17.7 -9.3 0.0

DOLLARS
% CHG VS YAG
Period End 1/28/06 *Rem FDM excludes WalMart

Copyright © 2006 ACNielsen

a VNU business
Add dunnhumby appendix
Snack Nut
Trends
 Salted Nuts Consumption
US Consumers ate 334,000 tons of snack nuts in
2005
Nuts - US Consumption (Thousands)

401.9 407.5
391.8
377.3
359.1

334

294.1

261.1

227.5 228.3 232

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Since 2000 the tonnage on snack nuts has increased 47.4% and is expected to grow
another 22% in the next five years.

Source: Euro-monitor
 Snack Nuts sales will continue strong growth
over the next 5 years
Nuts - US Retail Dollars (Billions)

4.5
4.2

4.0 3.9
3.7

3.5 3.4
3.2

3.0 2.9

2.5
2.5

2.1
2.0 1.9
1.8 1.8

1.5

1.0

0.5

0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Snack nuts sales have increased 61% over past 5 years and is expected to grow
another 45% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
 Where are Consumers Buying Snack
Nuts?

WALMART
$572,048,192
28.2%
GROCERY
$789,436,288
39.0%

WAREHOUSE CLUB
$132,648,080
6.5%

MASS MERCH W_SUPERS A_O CHANNELS

$230,003,072 $286,991,552
11.4% 14.2%
A_O GROCERY
$14,047,153
0.7%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- NUTS - CANS category in all the channels are - $2,437,683,750

• Snack nuts is a $2 billion category with 1/3 of total sales coming from traditional
grocery
Consumer Loyalty - Brands

52.9%53.1% 53.2%50.3%

36.8%
29.8%
24.1% 25.5%
21.6% 23.3% 21.3%19.9%
PLANTERS -

NUTS CANS

NUTS CANS

CALIFORNIA
NUTS CANS

NUTS CANS

NUTS CANS

DIAMOND -

EMERALD
IMPERIAL
CTL BR -

FISHER -

- NUTS
NUTS -

CANS
OF
LO YALTY % O f R E PEAT P U RC HA SES

S ou rce: ACN Homescan Consume r F acts -TO TAL U.S . - 52 W eeks e nd ing 12/25 /04

C TL B R - NU TS CA NS bran d bu yers are 52.94% lo yal, and 53.0 9% o f those have purch ased the b ran d mo re than once

• There is a high level of loyalty and repeat purchases in corporate brand snack nuts
D A Y M O N
WOR LDW I DE

Category Overview
Snack Nuts
 Peer Comparison
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Nuts CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 40.1 (2.4) 47.2 (1.9) 13.3 (1.3) 14.6 (2.0)
CENTRAL 49.1 1.0 56.3 0.6 19.1 0.0 24.0 0.7
CINCINNATI 50.1 (1.8) 57.0 (0.1) 22.5 2.8 24.3 1.8
COLUMBUS 52.0 4.5 59.2 4.0 29.4 4.1 34.3 4.4
DALLAS 43.5 3.1 49.2 5.5 21.1 2.6 19.0 2.2
MICHIGAN 49.1 2.5 58.8 3.6 20.7 (0.5) 28.2 (0.4)
DELTA 43.9 1.1 47.6 2.7 20.2 1.4 18.0 1.1
HOUSTON 43.0 2.6 47.6 4.0 16.9 (0.9) 13.3 (0.4)
MID-ATLANTIC 43.4 (2.2) 54.3 0.1 35.6 10.6 30.3 4.6
MID-SOUTH 49.1 (4.4) 56.6 2.0 16.1 (0.7) 20.2 (0.8)
DILLONS 47.7 3.5 48.9 4.1 25.1 1.4 24.5 0.4
KING SOOPERS 34.1 0.4 40.5 2.2 27.4 0.9 28.5 0.7
QUALITY FOOD CENTER 17.2 0.1 17.8 2.0 30.1 (1.7) 29.0 (0.6)
FRYS 46.9 (0.9) 47.4 (2.4) 22.9 1.0 17.4 (0.3)
SMITHS 33.6 (7.1) 35.7 (5.4) 32.7 1.9 30.9 2.0
FOOD 4 LESS 28.6 8.7 31.0 9.1 27.7 (5.9) 28.0 (4.8)
FRED MEYER 31.7 (0.6) 27.0 (0.7) 32.4 (1.2) 31.5 (0.7)
RALPHS 29.0 3.6 29.0 5.8 25.2 (2.5) 22.7 (1.1)
TOTAL KROGER 40.6 0.5 45.6 2.0 25.3 0.3 24.1 0.0

• Kroger is performing well against their overall benchmark in snack nuts. They are
out pacing in penetration, unit sales and overall growth
Kroger Internal Scanned
Data
Snack Nuts
 Snack Nuts Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

23233 VAC PAC NUTS(CANS)

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$78,465,877 5.28 63.9% $50,139,974 0.57
Units % Chg Units % Chg
21,687,988 5.63 67.0% 14,535,818 4.34
GM$ % Chg GM$ % Chg
$25,630,623 (2.89) 58.0% $14,869,235 (9.19)

• We promoted heavily and gave margin however we did not outpace category growth.
Units grew at a slightly less rate as the category.
 Snack Nuts Overview
Division Sales TY % Chg $/Str CB %
014 Cincinnati $3,429,504 0.34 $ 31,177 69.3%
620 King Soopers $4,115,216 (0.27) $ 28,381 68.0%
024 Mid-South $4,277,132 0.63 $ 27,070 69.6%
029 Mid-Atlantic $3,229,266 (0.29) $ 24,280 67.8%
016 Great Lakes $5,804,950 5.31 $ 23,597 70.0%
011 Atlanta $5,065,081 2.27 $ 22,816 65.6%
034 Houston $2,879,600 6.79 $ 22,151 61.6%
701 Fred Meyer $2,594,860 (7.50) $ 19,808 58.1%
660 Frys $2,172,332 3.40 $ 19,396 67.6%
035 Dallas $1,614,487 3.72 $ 18,140 62.0%
615 Dillon $2,110,123 (1.99) $ 18,035 74.4%
025 Delta $2,044,772 1.49 $ 17,781 68.6%
703 Ralphs $5,299,488 8.17 $ 16,206 54.9%
021 Central $2,392,464 (4.74) $ 15,844 69.1%
706 Smiths $1,825,432 (22.87) $ 14,261 44.7%
705 QFC $706,144 16.46 $ 8,117 43.4%
704 Food 4 Less $569,412 (12.25) $ 4,314 60.3%
708 Food 4 Less - Midwest $9,711 - $ 1,942 90.6%
TOTAL KROGER $50,139,974 0.57 $ 19,756 63.9%
• There are 11 division outpacing total Kroger penetration of 63.9%. Smith’s, Food 4
Less, and Fred Meyer took significant declines in 2005
 Snack Nuts Overview
Brand Unit Share
STUCKEYS SHIRK IRWIN SUPERIOR
0.48% 0.21% 0.19% 0.14%
P&G BEV VIRGINIA
0.97% 0.13%
BERNER
2.02%

NABISCO
28.69%
KROGER
67.02%

• Corporate Brands has 67% of the total unit share. The category is fragmented by
small and regional brands
Hot Cereal
Trends
 Hot Cereal Consumption
US Consumers ate 211,000 Tons of Hot Cereals in
2005
Hot Cereals - US Consumption (Thousands)

229.7

225.3

220.6

218.1
216.8
215.4
214.4
212.6
211.2

207.9

205.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Hot Cereal took a 3% decline in consumption from 2003 to 2005 based on low carb
trends however it has recovered and grow of 8.7% is expected over the next 5 years

Source: Euro-monitor
 Hot Cereal will continue steady sales growth over the next 5
years
Hot Cereals - US Retail Dollars (Billions)

1.6

1.4
1.4
1.3 1.3

1.2 1.2
1.2
1.1 1.1 1.1 1.1 1.1

1.0
1.0

0.8

0.6

0.4

0.2

0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Sales are expected to grow by 27% of the next 5 years where they have remained
flat for the previous 5 years
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying Hot
Cereal?

WAREHOUSE CLUB WALMART

$22,144,686 $150,570,928
1.3% 8.9%

MASS MERCH W_SUPERS

$36,404,476
2.2%

A_O GROCERY
$77,726,728
4.6%

A_O CHANNELS
$163,502,864
9.7%
GROCERY
$1,241,841,536
73.4%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- CEREAL - HOT category in all the channels are - $1,821,398,875

• Total category projected sales for all channels $1.7B with 2/3 of sales coming from
traditional channels
Consumer Loyalty - Brands
62.6%
52.8% 54.8%
51.9%

35.6%33.0%
31.3% 30.4%
25.4% 24.0%

MALT-O-MEAL
CEREA L HOT

CEREA L HOT

CEREA L HOT

CEREA L HOT
RALSTON -
NABISCO -
QUA KER -

- CEREAL
CTL BR -

HOT
LO YALTY % O f R E P EAT P U RC HA S E S

S ou rce: ACN Ho m escan Co nsu m e r F acts -T O TAL U.S . - 52 W eeks e nd ing 12/25 /04

Q U AKE R - C E RE A L HO T bra nd bu ye rs are 6 2 .6 1% lo ya l, a n d 5 2.75 % of th os e hav e p urc has e d t he bra n d m o re t ha n o nc e

• Quaker and Corporate Brands have a high loyalty factor in the category with CB
having a higher repeat purchase rate based on loyalty.
D A Y M O N
WOR LDW I DE

Category Overview
Hot Cereal
 Peer Comparison
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Hot Cereal CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 25.2 (0.8) 39.2 0.4 17.4 (2.3) 22.9 (3.1)
CENTRAL 28.2 1.1 41.4 3.3 17.8 (1.1) 22.1 (2.1)
CINCINNATI 22.4 0.6 34.3 4.1 15.3 (2.1) 19.7 (3.0)
COLUMBUS 31.1 2.4 43.6 4.1 18.6 0.2 24.4 1.7
DALLAS 18.1 0.0 28.3 2.9 22.7 0.1 34.5 4.2
MICHIGAN 25.7 1.3 38.9 3.5 22.0 0.2 29.2 1.4
DELTA 25.9 (2.9) 36.8 (2.9) 25.2 0.0 34.6 (0.4)
HOUSTON 16.6 0.1 26.2 3.2 16.5 (1.3) 23.1 (0.9)
MID-ATLANTIC 22.7 (0.8) 33.6 0.3 15.6 (3.4) 19.8 (3.0)
MID-SOUTH 24.2 (1.1) 33.8 (1.1) 20.6 (2.9) 26.1 (2.6)
DILLONS 25.3 (0.5) 38.2 1.7 26.2 (2.0) 35.0 (3.1)
KING SOOPERS 18.6 (2.2) 27.5 (0.2) 19.1 (3.6) 24.0 (5.0)
QUALITY FOOD CENTER 10.8 1.3 15.4 2.9 18.8 (4.0) 22.7 (4.7)
FRYS 21.0 (3.0) 28.8 (1.9) 19.8 (3.9) 26.1 (4.4)
SMITHS 20.8 (1.6) 29.2 (0.7) 20.9 (1.7) 29.6 (1.1)
FOOD 4 LESS 32.9 (0.1) 48.2 0.8 18.7 (4.0) 23.7 (5.5)
FRED MEYER 16.9 (1.5) 23.7 0.2 19.7 (2.7) 23.5 (2.1)
RALPHS 16.7 0.2 25.6 4.1 16.8 (3.5) 21.6 (5.8)
TOTAL KROGER 15.0 1.5 22.2 3.3 10.6 0.2 13.8 0.6

• Kroger out performs their peer groups in both sales and units in hot cereal. Kroger
also is showing greater growth then their peer growth even with substantially great
overall shares. This will indicate that the category continues to have room for CB
growth.
Kroger Internal Scanned
Data
Hot Cereal
 Hot Cereal Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

099 HOT CEREAL

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$112,278,345 7.26 22.0% $24,715,596 7.56
Units % Chg Units % Chg
$44,848,364 7.79 32.4% $14,520,421 15.37
GM$ % Chg GM$ % Chg
$37,014,216 7.06 20.1% $7,428,612 (0.76)

• CB sales growth stayed at pace with the overall category. The units were up
substantially with margin remaining flat. Margin spend drove tonnage.
 Hot Cereal Overview
Division Sales TY % Chg $/Str CB %
704 Food 4 Less $2,481,099 2.09 $ 18,796 32.0%
016 Great Lakes $3,580,394 18.82 $ 14,554 28.0%
014 Cincinnati $1,461,237 16.02 $ 13,284 23.0%
011 Atlanta $2,531,442 13.28 $ 11,403 23.0%
660 Frys $1,208,127 (0.97) $ 10,787 21.2%
025 Delta $1,198,937 4.62 $ 10,426 26.3%
024 Mid-South $1,638,740 9.58 $ 10,372 23.8%
620 King Soopers $1,324,441 (5.75) $ 9,134 18.3%
701 Fred Meyer $1,183,356 4.66 $ 9,033 17.7%
021 Central $1,347,213 12.88 $ 8,922 27.7%
029 Mid-Atlantic $1,076,136 9.74 $ 8,091 23.0%
706 Smiths $956,239 5.69 $ 7,471 21.7%
703 Ralphs $2,423,942 (1.91) $ 7,413 16.5%
708 Food 4 Less - Midwest $33,533 254.35 $ 6,707 7.2%
035 Dallas $589,353 7.54 $ 6,622 14.2%
034 Houston $788,044 14.75 $ 6,062 15.5%
615 Dillon $675,304 2.60 $ 5,772 23.3%
705 QFC $218,059 14.68 $ 2,506 10.7%
TOTAL KROGER $11,093,453 7.56 $ 4,371 22.0%

• 9 Divisions are outpacing Kroger overall in penetration. King Soopers saw a

significant decline as did the peers in the market indicating a consumer move out of
the channel.
 Hot Cereal Overview
Brand Unit Share
MARTHA W ODLUM MILL HODGSON
1.15% 0.22% 0.51%
NESTLE
0.60%
RALSTON
MALT-O- 0.56%
1.34%

NABISCO
4.16%
QUAKER
KROGER 58.33%
32.38%

• Quaker remains the category powerhouse with Kroger a solid category presence.
Baking Nut
Trends
 Baking Nuts Consumption
US Consumers ate 334,000 tons of baking nuts in
2005.
Nuts - US Consumption (Thousands)

401.9 407.5
391.8
377.3
359.1

334

294.1

261.1

227.5 228.3 232

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Since 2000 the tonnage on nuts has increased 47.4% and is expected to grow
another 22% in the next five years.

Source: Euro-monitor
 Baking Nuts will continue strong growth over
the next 5 years
Nuts - US Retail Dollars (Billions)

4.5
4.2

4.0 3.9
3.7

3.5 3.4
3.2

3.0 2.9

2.5
2.5

2.1
2.0 1.9
1.8 1.8

1.5

1.0

0.5

0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Nut sales have increased 61% over past 5 years and is expected to grow another
45% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying Baking
Nuts?

WALMART
$165,530,880
WAREHOUSE CLUB 10.2%
$146,195,840
9.0%
MASS MERCH W_SUPERS
$26,775,740
1.6%
A_O GROCERY
$39,215,888
2.4%

A_O CHANNELS GROCERY

$120,748,704 $1,126,829,952
7.4% 69.3%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- NUTS - BAGS category in all the channels are - $1,859,425,750

• Total category projected sales for all channels $1.6B with 69% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands

49.4%
42.3%
39.3%
35.0%
32.4%
28.8% 29.6%

18.0% 19.8%
13.9%

DIAMOND -

DIAMOND -
PLANTERS
CTL BR -

FISHER -
- NUTS
BAGS

BAGS
BAGS

BAGS

BAGS
BLUE
NUTS

NUTS

NUTS

NUTS
LO YALTY % O f R EP EAT P U RC HA S E S

S ource: ACN Ho mescan Consume r F acts -T O TAL U.S . - 52 W eeks e nd ing 12/25 /04

C TL B R - NU TS BA GS brand buyers are 49.43% loyal, an d 42.30% of th ose h ave p urchased the brand more than o nce

• Corporate Brands have the highest loyalty and repeat purchase in Baking Nuts.
Diamond nuts has the next highest.
D A Y M O N
WOR LDW I DE

Category Overview
Baking Nuts
 Peer Comparison
Baking Nuts
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Nuts CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 40.1 (2.4) 47.2 (1.9) 13.3 (1.3) 14.6 (2.0)
CENTRAL 49.1 1.0 56.3 0.6 19.1 0.0 24.0 0.7
CINCINNATI 50.1 (1.8) 57.0 (0.1) 22.5 2.8 24.3 1.8
COLUMBUS 52.0 4.5 59.2 4.0 29.4 4.1 34.3 4.4
DALLAS 43.5 3.1 49.2 5.5 21.1 2.6 19.0 2.2
MICHIGAN 49.1 2.5 58.8 3.6 20.7 (0.5) 28.2 (0.4)
DELTA 43.9 1.1 47.6 2.7 20.2 1.4 18.0 1.1
HOUSTON 43.0 2.6 47.6 4.0 16.9 (0.9) 13.3 (0.4)
MID-ATLANTIC 43.4 (2.2) 54.3 0.1 35.6 10.6 30.3 4.6
MID-SOUTH 49.1 (4.4) 56.6 2.0 16.1 (0.7) 20.2 (0.8)
DILLONS 47.7 3.5 48.9 4.1 25.1 1.4 24.5 0.4
KING SOOPERS 34.1 0.4 40.5 2.2 27.4 0.9 28.5 0.7
QUALITY FOOD CENTER 17.2 0.1 17.8 2.0 30.1 (1.7) 29.0 (0.6)
FRYS 46.9 (0.9) 47.4 (2.4) 22.9 1.0 17.4 (0.3)
SMITHS 33.6 (7.1) 35.7 (5.4) 32.7 1.9 30.9 2.0
FOOD 4 LESS 28.6 8.7 31.0 9.1 27.7 (5.9) 28.0 (4.8)
FRED MEYER 31.7 (0.6) 27.0 (0.7) 32.4 (1.2) 31.5 (0.7)
RALPHS 29.0 3.6 29.0 5.8 25.2 (2.5) 22.7 (1.1)
TOTAL KROGER 40.6 0.5 45.6 2.0 25.3 0.3 24.1 0.0

• The majority of the Kroger divisions are growing in both sales and unit penetration.
Food 4 Less and Ralphs are both showing strong sales and unit penetration growth
against their peer groups which are both declining.
Kroger Internal Scanned
Data
Baking Nuts
 Baking Nuts Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

23235 BAKING NUTS

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$37,717,670 11.81 63.6% $23,992,371 22.55
Units % Chg Units % Chg
14,080,257 6.02 71.0% 9,990,179 13.68
GM$ % Chg GM$ % Chg
$14,593,555 0.89 52.4% $7,646,259 5.81

• Corporate brands are up significantly in sales, units, and margin over the total
category. Corporate Brands has a very strong sales, units, and gross margin
penetration in this category.
 Baking Nuts Overview
Division Sales TY % Chg $/Str CB %
024 Mid-South $2,837,673 17.50 $ 17,960 88.6%
034 Houston $1,834,327 24.17 $ 14,110 86.8%
014 Cincinnati $1,506,860 11.86 $ 13,699 75.3%
016 Great Lakes $3,268,537 15.31 $ 13,287 79.4%
660 Frys $1,473,283 17.88 $ 13,154 68.1%
620 King Soopers $1,711,098 10.50 $ 11,801 48.3%
011 Atlanta $2,571,501 16.51 $ 11,583 85.9%
025 Delta $1,309,968 24.97 $ 11,391 85.0%
035 Dallas $995,454 24.11 $ 11,185 85.8%
029 Mid-Atlantic $1,266,145 7.11 $ 9,520 71.9%
021 Central $1,425,971 13.34 $ 9,444 81.0%
701 Fred Meyer $1,023,923 60.28 $ 7,816 45.4%
615 Dillon $909,042 11.31 $ 7,770 65.7%
706 Smiths $765,457 18.70 $ 5,980 41.6%
708 Food 4 Less - Midwest $21,932 895.95 $ 4,386 83.0%
704 Food 4 Less $354,380 407.01 $ 2,685 38.3%
703 Ralphs $656,050 - $ 2,006 16.6%
705 QFC $60,770 69.84 $ 699 6.2%
TOTAL KROGER $23,992,371 22.55 $ 9,453 63.6%

• 12 Divisions are outpacing Kroger overall in penetration. All divisions are showing
strong positive sales growth over last year.
 Baking Nuts Overview
Brand Unit Share
MAVE ENTERHERMAN NUT CALIFORNIA
FLANIGAN
0.67% 0.11% 0.08%
0.71%
VIGO
RODDENBERY
0.03%
1.33%
AZAR
4.61%

DIAMOND
21.49%
KROGER
70.95%

• Kroger owns the majority of the unit share at 71%. The other significant brand in the
category is Diamond with 21.5% share
Gelatins/Puddings
Trends
 Gelatin/Pudding Consumption
US Consumers ate 367,000 tons of Dessert Mixes
in 2005.

Dessert Mixes - US Consumption (Thousands)

383.3

379.7
377.9
376.5

370

367.5
366.1
364.3
362.3
360.6

357.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Gelatins/Puddings have decline since 2000 to 2005 by -4.0% in consumption. By 2010,

Gelatins/Puddings are expected to decrease by another -2.6% in consumption.

Source: Euro-monitor
 Gelatin/Pudding will continue strong growth over the next 5
years
Dessert Mixes - US Retail Dollars (Billions)

2.1
2.0 2.0
1.9
1.8 1.8 1.8
1.7 1.7 1.7 1.7

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

• Sales are expected to grow slightly by 16% over the next 5 years where they
remained flat for the previous 5 years.
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying
Gelatins?

W AL MART
W AR EHO USE CLUB $22,477,164
$357,200 11.8%
0.2%
MA SS M ERCH W_SUPERS
$3,972,201
2.1%

A_O G ROC ERY

$4,600,609
2.4%
A_O CHA NNEL S
$9,773,399
5.1%

G RO CERY
$148,803,728
78.3%

So urce: ACN Ho m escan Con su m er Facts-TO TAL U.S. - 52 W eeks end in g 12/25/04
To tal Pro jected do llar sales o f- G ELA T IN-SW EETENED -MIX catego ry in all the ch an nels are -
$231,518,766

• Total category projected sales for all channels $190M with 78% of sales coming from
traditional Grocery channels.
Where are Consumers Buying
Puddings?

W AREHO USE CLUB W AL MART

$483,232 $27,810,168
0.2% 9.3%
MASS M ERCH W_SUPERS
$6,817,141
2.3%

A_O G ROCERY
$8,133,866
2.7%
A_O CHANNEL S
$12,752,138
4.3%

G RO CERY
$243,607,344
81.3%

So urce: ACN Ho m escan Con su m er Facts-TO TAL U.S. - 52 W eeks end in g 12/25/04
To tal Pro jected do llar sales o f- PUDDING - S WEET ENED - MIX catego ry in all the ch ann els are -
$324,316,844

• Total category projected sales for all channels $299M with 81% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
TRUE FALSE
LOYALTY % Of REPEAT PURCHASES
80.7%

54.4%
49.4%
39.9%
33.5%
28.3%

JELL-O - GELATIN SWTND MIX CTL BR - GELATIN SWTND MIX ROYAL - GELATIN SWTND MIX

Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR - GELATIN SWTND MIX brand buyers are 54.41% loyal, and 33.45% of those have
purchased the brand more than once

• Even though Jell-o has a higher loyalty base it has a low repeat purchase compared to
Kroger that has the second highest loyalty base but a stronger repeat purchase
considering its loyalty.
D A Y M O N
WOR LDW I DE

Category Overview
Gelatins/Puddings
 Peer Comparison
Gelatins
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Gelatin Mixes CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 34.2 0.3 46.9 2.4 3.3 0.2 4.2 0.2
CENTRAL 35.3 (1.6) 49.2 3.0 15.5 (0.8) 22.5 (0.5)
CINCINNATI 32.7 (0.6) 41.7 0.4 8.7 0.7 12.9 1.0
COLUMBUS 39.5 0.2 50.9 4.3 6.7 (0.6) 10.6 0.2
DALLAS 27.7 (0.3) 40.8 2.1 12.7 7.2 21.9 12.1
MICHIGAN 28.5 (0.3) 40.5 (0.8) 10.5 (0.3) 15.4 1.1
DELTA 37.8 1.4 53.7 1.3 13.5 2.3 22.8 3.3
HOUSTON 25.8 (1.2) 38.7 0.3 8.1 0.8 13.1 1.5
MID-ATLANTIC 40.4 0.9 57.5 2.5 3.5 0.4 5.1 0.4
MID-SOUTH 34.0 (0.3) 46.7 0.3 9.2 0.2 12.3 (0.1)
DILLONS 35.1 0.5 44.4 2.4 16.4 1.2 22.8 1.3
KING SOOPERS 25.2 3.2 32.5 8.3 12.1 2.9 15.9 3.4
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 13.3 1.8 22.4 1.5
FRYS 41.8 (4.8) 57.0 (1.3) 14.4 1.0 21.9 0.8
SMITHS 34.9 (0.1) 55.0 3.4 7.8 2.1 12.2 2.5
FOOD 4 LESS 25.0 0.4 32.5 0.6 4.2 (0.2) 8.7 (0.8)
FRED MEYER 0.0 0.0 0.0 0.0 11.5 1.1 20.3 (0.1)
RALPHS 11.1 1.6 15.0 0.7 5.5 2.0 10.6 2.8
TOTAL KROGER 27.6 0.2 41.0 1.7 8.3 1.1 14.2 1.5

• All Kroger Divisions with the exception of QFC and Fred Meyer are out-performing
their peer groups in both sales and units in Gelatins. The majority of the Kroger
divisions are down in sales penetration. King Soopers is growing significantly in both
sales and unit penetration This could be contributed to families shopping for
convenience switching to gelatin cups.
 Peer Comparison
Puddings
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Pudding Mixes CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 29.5 (1.1) 41.3 (2.8) 2.0 (0.3) 3.0 (0.7)
CENTRAL 36.6 (1.3) 52.2 1.0 13.3 (2.2) 19.5 (3.3)
CINCINNATI 32.2 (0.6) 43.0 (1.7) 7.9 0.5 12.3 0.9
COLUMBUS 33.2 1.0 49.1 3.3 7.5 (0.8) 13.0 (0.4)
DALLAS 22.6 (1.5) 29.9 (2.8) 7.4 3.2 13.4 7.3
MICHIGAN 28.2 0.2 43.2 1.4 11.6 (1.4) 17.4 (1.9)
DELTA 33.9 (1.5) 48.7 (1.0) 9.3 0.6 16.7 (0.3)
HOUSTON 21.6 (1.3) 29.8 (2.2) 8.6 (0.3) 12.6 (0.7)
MID-ATLANTIC 33.0 (2.2) 47.4 (2.5) 2.2 (0.1) 3.2 (0.4)
MID-SOUTH 28.6 (2.4) 41.3 (2.3) 7.6 (0.8) 11.1 (1.6)
DILLONS 30.4 (0.5) 40.5 (1.0) 9.5 (0.1) 14.7 (1.4)
KING SOOPERS 19.6 (0.7) 31.4 1.4 10.4 1.5 14.2 1.4
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 9.0 0.5 11.8 (0.3)
FRYS 44.2 (5.2) 55.8 (7.1) 11.9 0.2 18.3 (0.3)
SMITHS 36.3 (2.9) 54.0 3.0 6.3 2.3 8.9 2.8
FOOD 4 LESS 18.6 (1.8) 20.9 (5.8) 2.9 0.0 5.5 0.3
FRED MEYER 0.0 0.0 0.0 0.0 9.9 0.2 14.5 (1.0)
RALPHS 10.2 (0.5) 14.1 (2.0) 4.1 1.9 7.0 3.0
TOTAL KROGER 26.3 (1.1) 38.5 (0.6) 6.8 0.5 10.9 0.4

• All Kroger Divisions with the exception of QFC and Fred Meyer are out-performing
their peer groups in both sales and units in Gelatins. The majority of the Kroger
divisions are down in sales and unit penetration. This could be contributed to families
shopping for convenience switching to pudding cups and away from the powder mix.
Kroger Internal Scanned
Data
Gelatins/Pudding
Gelatins/Puddings Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

081 DRY MIX DESSERTS

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$69,786,696 (0.99) 20.1% $14,022,884 0.66
Units % Chg Units % Chg
$73,057,186 (2.43) 27.1% $19,797,756 1.29
GM$ % Chg GM$ % Chg
$23,933,591 0.31 21.4% $5,114,419 (3.83)
• Corporate brands are up in both sales and units where the total category is declining.
Corporate Brand gross margin is declining where the total category is growing.
Gelatins/Puddings Overview
Division Sales TY % Chg $/Str CB %
016 Great Lakes $3,213,999 11.15 $ 13,065 28.2%
704 Food 4 Less $1,227,300 10.56 $ 9,298 24.5%
024 Mid-South $1,335,275 4.00 $ 8,451 25.7%
021 Central $1,215,123 (4.22) $ 8,047 23.2%
660 Frys $838,454 (19.02) $ 7,486 22.1%
029 Mid-Atlantic $951,453 1.07 $ 7,154 23.6%
014 Cincinnati $760,763 16.99 $ 6,916 22.2%
011 Atlanta $1,072,434 12.25 $ 4,831 21.9%
706 Smiths $584,187 (13.99) $ 4,564 19.9%
620 King Soopers $659,372 (6.67) $ 4,547 16.8%
025 Delta $373,374 (18.88) $ 3,247 19.2%
615 Dillon $353,976 (6.25) $ 3,025 19.3%
703 Ralphs $771,635 (13.47) $ 2,360 11.6%
701 Fred Meyer $275,491 (15.93) $ 2,103 5.2%
034 Houston $248,442 16.57 $ 1,911 10.5%
035 Dallas $136,073 (1.70) $ 1,529 10.4%
708 Food 4 Less - Midwest $5,533 100 $ 1,107 5.8%
705 QFC $0 0 $ - 0.0%
TOTAL KROGER $4,852,021 0.66 $ 1,912 20.1%

• 8 Divisions are outpacing Kroger overall in penetration. Frys, Smiths, Delta, Ralphs,
and Fred Meyer all saw a significant decline as did the peers in the market indicating
a consumer move out of the channel.
Gelatins/Puddings Overview
Brand Unit Share
DEAN FOODS
LIPTON
FLAN RICO 0.23%
0.15%
3.97% JEL SERT
KRAFT 0.41%
1.30%

DEL MONTE KRAFT G.F.

5.32% 40.17%

KROGER
27.10%

HUNTWESSON
20.42%

• Kraft has 40% of the total unit share. Kroger (27%) and Huntwesson (20%) have the
majority of the rest of the unit share. The category is fragmented by small and
regional brands.
Powdered Drink Mix
Trends
 Powdered Drink Mix will continue strong growth over the
next 5 years

Powdered Drink Mixes - US Retail Dollars (Millions)

433.9

400.2

395.8
394.7
392.3
390.2 389.2 389.1
386.2
384.8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

• Powdered Drink Mix sales have decreased 11% from 2000 to 2004, but picked up in
2005. The trend is projected to continue to increase 3% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying
Powdered Drink Mix?

WALMART
$275,815,840
23.3%

WAREHOUSE CLUB
$76,168,168
6.4%
GROCERY
$700,723,328
59.1%
MASS MERCH W_SUPERS
$49,077,720
4.1%

A_O GROCERY A_O CHANNELS

$23,684,476 $59,721,896
2.0% 5.0%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- SOFT DRINKS - POWDERED category in all the channels are -
$1,267,165,500

• Total category projected sales for all channels $1.2B with 59% of sales coming from
traditional Grocery channels.
Consumer Loyalty - Brands
TRUE FALSE
LOYALTY % Of REPEAT PURCHASES
55.2%
49.8% 48.1%
45.3% 47.2%
41.3% 39.8%
30.6% 33.4%

20.4%

CRYSTAL LIGHT SF - CTL BR SF - SOFT GATORADE SS - SOFT KOOL-AID SF - SOFT WYLER'S UN - SOFT
SOFT DRINKS PWD DRINKS PWD DRINKS PWD DRINKS PWD DRINKS PWD

Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR SF - SOFT DRINKS PWD brand buyers are 30.62% loyal, and 39.79% of those have
purchased the brand more than once

• Gatorade has the highest loyalty in Powdered Drink Mix, but has a low repeat
purchase. Kool-Aid has a strong Loyalty and the highest repeat purchase.
Kroger Internal Scanned
Data
Powdered Drink Mixes
 Peer Comparison
Powdered Soft Drink
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Powdered Soft Drink CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 15.6 0.3 23.0 4.1 2.5 (0.5) 0.8 (0.1)
CENTRAL 14.2 (2.4) 21.3 2.8 5.2 0.9 2.0 0.5
CINCINNATI 11.0 (4.4) 17.2 (4.8) 3.5 0.2 1.0 (0.5)
COLUMBUS 14.9 0.3 27.1 2.1 3.0 0.5 0.8 0.2
DALLAS 9.6 (2.5) 19.7 (1.6) 8.2 (0.4) 2.0 0.0
MICHIGAN 12.7 0.3 21.9 1.9 5.7 0.8 1.8 0.5
DELTA 14.4 (3.0) 24.1 (0.5) 7.1 0.4 5.3 0.0
HOUSTON 9.3 (1.6) 21.5 (1.8) 5.6 0.1 1.3 0.0
MID-ATLANTIC 17.2 (2.3) 26.8 4.2 3.3 (0.4) 1.1 (0.1)
MID-SOUTH 14.5 2.1 20.7 6.1 6.1 0.0 1.5 0.0
DILLONS 10.5 (5.9) 21.8 2.8 6.3 0.7 2.2 0.1
KING SOOPERS 8.1 (2.5) 20.2 1.7 6.0 0.0 1.5 0.3
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 6.7 (0.4) 1.9 0.4
FRYS 19.5 (3.3) 32.6 0.2 8.1 (1.3) 1.7 0.0
SMITHS 11.6 0.6 23.1 (1.6) 7.6 0.3 4.6 (0.5)
FOOD 4 LESS 13.1 (1.3) 11.5 (4.8) 4.4 (2.0) 1.3 (0.3)
FRED MEYER 0.0 0.0 0.0 0.0 7.2 (1.5) 1.9 0.3
RALPHS 2.8 0.0 4.0 2.9 3.4 (1.0) 1.4 0.1
TOTAL KROGER 11.9 (1.1) 20.5 1.0 5.4 (0.4) 2.1 0.0

• All Kroger divisions are either declining or flat in both sales and unit penetration over
last year. Their respective benchmarks are on that same trend. Mid-South is one of
the few divisions that have growth in both sales and unit penetration and out-pacing
its benchmark.
 Soft Drink Powder/Pouches
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

18207 SOFT DRINK POWDER, POUCHES

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$37,942,462 13.14 11.4% $4,334,314 (9.01)
Units % Chg Units % Chg
100,987,820 (3.74) 16.9% 17,025,654 (0.06)
GM$ % Chg GM$ % Chg
$10,823,598 12.52 13.8% $1,493,396 4.14

• Corporate Brands are declining in sales and units over last year, but the gross margin
is up. The total category increased significantly in sales margin, while taking a hit in
units.
 Soft Drink Powder/Pouches
Overview
Division Sales TY % Chg $/Str CB %
660 Frys $464,637 (20.74) $ 4,149 24.2%
011 Atlanta $723,161 12.39 $ 3,257 19.5%
024 Mid-South $510,357 22.55 $ 3,230 15.9%
704 Food 4 Less $383,617 (25.93) $ 2,906 11.3%
025 Delta $330,062 (19.87) $ 2,870 15.2%
016 Great Lakes $666,222 1.42 $ 2,708 14.6%
014 Cincinnati $226,924 (30.63) $ 2,063 9.3%
029 Mid-Atlantic $268,847 2.71 $ 2,021 15.7%
021 Central $295,724 (11.34) $ 1,958 13.0%
706 Smiths $187,681 (7.18) $ 1,466 14.8%
620 King Soopers $114,560 (28.85) $ 790 6.6%
034 Houston $96,883 (18.01) $ 745 5.6%
035 Dallas $34,454 (11.35) $ 387 3.0%
615 Dillon $29,032 (66.93) $ 248 3.0%
703 Ralphs $2,153 - $ 7 0.1%
701 Fred Meyer $0 - $ - 0.0%
708 Food 4 Less - Midwest $0 - $ - 0.0%
705 QFC $0 - $ - 0.0%
TOTAL KROGER $4,334,314 (9.01) $ 1,708 11.4%

• 8 Divisions are outpacing Kroger overall in penetration. Mid-South had a strong sales
growth over last year, up 22.6% with Corporate Brands at a 16% in penetration.
Cincinnati and Dillon drastically declined in sales over last year.
Soft Drink Powder/Pouches
Overview
Brand Unit Share
CONTINENT
JEL SERT
0.24% GRUPO DIL.
0.30% 0.15%
KROGER
16.86%

KRAFT G.F.
82.46%

• Kraft owns the majority of the unit share at 82%. Kroger holds the rest of the unit
share at 17%, with the exception of a few regional brands.
 Peer Comparison
Instant Breakfast
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Instant Breakfast CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 29.9 6.6 34.0 8.5 0.0 (0.2) 0.0 (0.3)
CENTRAL 36.1 1.4 36.6 (1.2) 3.1 (0.5) 4.4 (1.5)
CINCINNATI 30.4 (0.9) 35.3 (1.6) 3.0 1.1 4.3 1.6
COLUMBUS 11.1 11.1 14.2 14.1 2.5 1.2 3.8 1.8
DALLAS 25.7 4.2 28.9 4.5 0.0 0.0 0.0 0.0
MICHIGAN 15.6 (0.3) 17.3 (1.7) 3.0 2.0 4.5 3.2
DELTA 27.0 3.4 32.2 3.7 13.0 1.9 22.6 3.4
HOUSTON 25.0 7.3 27.6 7.8 17.7 (0.7) 24.7 (3.0)
MID-ATLANTIC 27.2 4.8 27.8 2.9 0.0 (0.1) 0.0 (0.1)
MID-SOUTH 19.2 3.2 27.7 8.7 2.3 1.0 3.3 1.5
DILLONS 20.8 3.1 26.9 2.7 15.8 (0.1) 25.6 (1.1)
KING SOOPERS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
FRYS 26.4 0.9 32.5 2.2 0.0 0.0 0.0 0.0
SMITHS 3.8 3.7 6.6 6.4 1.7 (0.1) 2.9 (0.9)
FOOD 4 LESS 0.0 0.0 0.0 0.0 4.7 (1.9) 10.0 (4.5)
FRED MEYER 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
RALPHS 0.0 0.0 0.0 0.0 2.9 (1.2) 6.3 (3.2)
TOTAL KROGER 9.7 1.7 14.8 2.7 3.3 (0.2) 6.3 (0.8)

• With the exception of Cincinnati and Michigan, the Kroger divisions are out-pacing
their benchmarks in both sales and unit penetration and all growing share. Columbus
is having the strongest growth over last year.
 Instant Breakfast
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

29462 INSTANT BREAKFAST

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$6,891,039 3.83 28.1% $1,936,332 10.54
Units % Chg Units % Chg
1,982,191 0.85 48.5% 961,718 7.22
GM$ % Chg GM$ % Chg
$2,464,420 3.06 27.0% $665,776 11.87

• Corporate Brands are showing strong growth in sales, units, and margin over last
year. The total category is showing a steady growth in sales, units, and margin.
Corporate Brands is holding almost 50% of the share of units.
 Instant Breakfast
Overview
Division Sales TY % Chg $/Str CB %
011 Atlanta $509,786 13.94 $ 2,296 41.4%
016 Great Lakes $354,492 19.94 $ 1,441 45.9%
014 Cincinnati $125,481 (12.01) $ 1,141 31.7%
620 King Soopers $154,147 5.48 $ 1,063 24.0%
660 Frys $117,210 (4.72) $ 1,047 28.1%
029 Mid-Atlantic $136,785 4.44 $ 1,028 46.1%
024 Mid-South $158,985 3.19 $ 1,006 39.1%
025 Delta $99,752 19.28 $ 867 52.0%
615 Dillon $100,899 16.55 $ 862 44.3%
706 Smiths $107,381 4.19 $ 839 32.6%
034 Houston $105,962 2.92 $ 815 26.6%
021 Central $114,769 36.04 $ 760 33.6%
035 Dallas $53,229 11.18 $ 598 20.9%
701 Fred Meyer $56,385 7.75 $ 430 10.9%
704 Food 4 Less $39,946 195.92 $ 303 25.8%
703 Ralphs $0 - $ - 0.0%
705 QFC $0 - $ - 0.0%
708 Food 4 Less - Midwest $0 - $ - #DIV/0!
TOTAL KROGER $2,235,209 10.54 $ 881 28.1%

• 11 Divisions are outpacing Kroger overall in penetration. Atlanta and Great Lakes
had a strong sales growth over last year, up 14% and 20% respectively. Cincinnati
and Frys where the only two divisions to show a declined in sales over last year.
 Instant Breakfast
Overview
Brand Unit Share

KROGER NESTLE
48.52% 51.48%

• The category unit share is fairly close to being split down the middle between Kroger
and Nestle, with Nestle having the majority.
 Hot Chocolate/Cocoa
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

24236 HOT CHOCOLATE, COCOA MIX

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$22,928,754 (0.32) 24.0% $5,510,898 (4.71)
Units % Chg Units % Chg
13,347,255 10.32 30.0% 4,008,506 1.82
GM$ % Chg GM$ % Chg
$7,474,685 (7.82) 23.0% $1,716,206 (8.97)

• Corporate Brands are growing slightly in units, but took a hit in sales and margin.
The total category is showing similar trends with being up in units, but taking a hit in
sales and margin.
 Hot Chocolate/Cocoa
Overview
CB Sales by Division (000's)
Division Sales TY % Chg $/Str CB %
016 Great Lakes $917,196 1.61 $ 3,728 31.3%
660 Frys $404,923 (8.77) $ 3,615 39.3%
701 Fred Meyer $395,483 5.73 $ 3,019 18.2%
014 Cincinnati $321,640 (9.95) $ 2,924 26.2%
620 King Soopers $388,368 (7.28) $ 2,678 23.0%
024 Mid-South $412,701 (6.85) $ 2,612 27.6%
704 Food 4 Less $323,163 (10.07) $ 2,448 21.0%
029 Mid-Atlantic $317,067 (1.16) $ 2,384 33.7%
021 Central $349,245 (10.75) $ 2,313 28.9%
011 Atlanta $499,186 (0.70) $ 2,249 27.5%
706 Smiths $254,035 (1.68) $ 1,985 18.7%
615 Dillon $172,881 10.05 $ 1,478 30.4%
025 Delta $158,484 (9.00) $ 1,378 25.9%
034 Houston $160,812 (24.67) $ 1,237 19.6%
035 Dallas $98,537 (24.24) $ 1,107 18.5%
703 Ralphs $326,815 5.90 $ 999 13.2%
705 QFC $10,362 (38.01) $ 119 2.3%
708 Food 4 Less - Midwest $0 (100.00) $ - 0.0%
TOTAL KROGER $5,510,898 (4.71) $ 2,171 24.0%

• 9 Divisions are outpacing Kroger overall in penetration. Fred Meyer had a strong
sales growth over last year up 5.7% with Corporate Brands at a 18% in penetration.
Frys, Cincinnati, and Central declined drastically in sales over last year.
 Hot Chocolate/Cocoa
Overview
Brand Unit Share
STEPHEN S MEAD JHNSN
0.93% 0.71% GHIRARDELL
0.26%
HERSHEY
2.56%

NESTLE
CON-AGRA
40.03%
25.47%

KROGER
30.04%

• Nestle has the greatest unit share at 40%. Kroger and Con-Agra hold the majority of
the remaining unit share.
Dried Fruit
Trends
 Where are Consumers Buying Dried
Fruit?

WALMART
$191,524,592
WAREHOUSE CLUB 11.6%
$208,044,000
12.6%

MASS MERCH W_SUPERS

$80,654,824
4.9%
GROCERY
A_O GROCERY $1,023,556,032
$27,332,316 62.1%
1.7%

A_O CHANNELS
$116,118,264
7.0%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- FRUIT-DRIED AND SNACKS category in all the channels are -
$1,763,375,250

• Total category projected sales for all channels is $1.6B with 62% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands

43.3%

32.8%
27.3%
24.9% 23.2%24.8%
20.1%
16.3%
13.9%
10.5%
KELLOGG'S

CROCKER -
FRT DRIED,

FRT DRIED,
FRT DRIED,

FRT DRIED,
WELCH'S -
CTL BR -

MONTE -
DRIED,

BETTY
SNKS

SNKS

SNKS

SNKS
SNKS

- FRT

DEL
LOYALTY % Of REPEAT PURCHASES

Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR - FRT DRIED, SNKS brand buyers are 27.32% loyal, and 43.28% of those have purchased the brand more than
once

• Corporate Brands has the highest loyalty and repeat purchasing in Dried Fruit. The
next highest is Del Monte
Kroger Internal Scanned
Data
Dried Fruit
 Dried Fruit Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

636 DRIED FRUIT

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$60,503,382 14.08 15.9% $9,616,852 16.95
Units % Chg Units % Chg
22,812,178 5.05 18.0% 4,100,222 2.67
GM$ % Chg GM$ % Chg
$27,026,303 9.30 14.3% $3,853,461 4.43

• Corporate Brands is growing in sales, units, and margin. The total category is
showing the same growth trend. There is a very strong sales growth in both
Corporate Brands and Total Category over last year.
 Dried Fruit Overview
Division Sales TY % Chg $/Str CB %
701 Fred Meyer $776,922 20.57 $ 5,931 18.0%
029 Mid-Atlantic $755,043 29.91 $ 5,677 24.2%
620 King Soopers $762,358 4.72 $ 5,258 13.8%
016 Great Lakes $1,247,396 20.11 $ 5,071 19.2%
024 Mid-South $752,123 20.89 $ 4,760 18.8%
014 Cincinnati $509,072 31.75 $ 4,628 14.5%
011 Atlanta $920,586 11.66 $ 4,147 15.9%
025 Delta $460,367 16.66 $ 4,003 22.7%
660 Frys $424,490 17.96 $ 3,790 17.4%
021 Central $561,192 23.25 $ 3,717 21.1%
703 Ralphs $1,009,044 17.10 $ 3,086 12.6%
034 Houston $387,459 20.40 $ 2,980 12.1%
615 Dillon $333,437 8.45 $ 2,850 20.7%
035 Dallas $240,148 16.42 $ 2,698 14.1%
706 Smiths $225,651 (12.04) $ 1,763 9.6%
705 QFC $124,109 32.91 $ 1,427 7.7%
704 Food 4 Less $127,455 (9.85) $ 966 6.0%
708 Food 4 Less - Midwest $0 - $ - 0.0%
TOTAL KROGER $9,616,852 16.95 $ 3,789 15.9%

• 9 Divisions are outpacing Kroger overall in penetration. Great Lakes and Ralphs had
a strong sales growth over last year up 20% and 17% respectively. Smiths and Food
4 Less declined in sales over last year.
 Dried Fruit Overview
Brand Unit Share
M C SNACK SUNSWEET
2.12% 1.86%
DOLE
3.44% NATIONAL R
1.62%

DIAMOND
7.69%
SUN MAID
34.89%
MARIANI
9.47%

OCEAN SPRA
12.35%

KROGER
17.76%

• Sun Maid has the greatest unit share at 35%. Kroger and Ocean Spray hold the
majority of the remaining unit share.
Trail Mix
Trends
Where are Consumers Buying Trail
Mix?

WALMART
$78,436,000
25.6%

WAREHOUSE CLUB GROCERY

$18,267,054 $143,521,584
6.0% 46.9%

MASS MERCH W_SUPERS

$13,440,652
4.4%
A_O GROCERY
$2,552,232
0.8% A_O CHANNELS
$50,039,200
16.3%

Source: ACN Homescan Consumer Facts-TOTAL U.S. - 52 Weeks ending 12/25/04

Total Projected dollar sales of- TRAIL MIXES category in all the channels are - $386,701,719

• Total category projected sales for all channels $306M with 47% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
89.4%

58.6%
50.5%
45.2% 41.8%
40.2%

25.6% 25.3% 28.4%

22.4%

FRITO-LAY
PLANTERS

GENERAL

CHEX MIX

FISHER -
CTL BR -

- TRAIL

- TRAIL
- TRAIL
MIXES
MIXES

MIXES

MIXES

MIXES
MILLS

TRAIL
TRAIL

LOYALTY % Of REPEAT PURCHASES

Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04

CTL BR - TRAIL MIXES brand buyers are 89.38% loyal, and 40.21% of those have purchased the brand more than once

• Corporate Brand has the highest loyalty and repeat purchase in Trail Mix. Planters
has the next highest loyalty, but has one of the lowest repeat purchases.
Kroger Internal Scanned
Data
Trail Mix
 Trail Mix Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13

98479 SPECIALTY SNACKS (SOYNUTS/TRAI

Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$3,919,694 6.79 0.0% $0 #DIV/0!
Units % Chg Units % Chg
1,476,173 2.18 0.0% 0 #DIV/0!
GM$ % Chg GM$ % Chg
$1,321,959 1.22 0.0% $0 #DIV/0!

• Total Specialty Snacks is growing steadily in sales, units, and margin. This shows that
there is a huge opportunity as Kroger for introducing a Corporate brand into the set.