New Product CategoryValley Growers was established by the Rainville Family

in 1981

• Fresh cut oil blanched fries developed to fill a gap in the market for a high quality fresh never frozen french fry

• Five generations of potato farming since the late 1800’s• Oven ready or fryer ready fries with 25 day shelf life from date of production• Valley Growers specializes in the growing, storage and packaging of fresh

potatoes• Developed process for high quality “fresh” fries

Top Diet Trends for 2014 in Canada

• Natural and simple with few ingredients

• Consumers are looking for a gluten-free diet

• Quality matters – consumers will focus on eating high quality calories

• Fruits and veggies remain king – including potatoes

NATIONAL SITUATION ANALYSIS

• Sales for “HEALTHY” categories around the perimeter of the grocery store are on the rise

• Canadian retailers have either added or expanded their “natural” and “fresh” offerings

• Farmhouse Fries ingredient deck includes potatoes and canola oil. Nothing else.

• The food media and trend gurus are telling us that consumers are looking to make the most of their grocery dollars, but are willing to pay more for quality and health related items

• The trend that is gaining the most momentum is “food for health”• Consumers want to eat and drink “real” food

NATIONAL SITUATION ANALYSIS

6

Why is “X” your favourite carb? Convenience and

Health & Wellness Convenience Health & Wellness

Bread 47% 35% 11%Potatoes 38% 32% 9%Other 29% 6% 34%Pasta 35% 43% 5%Rice 24% 41% 8%

Of those who indicated that potatoes are their favourite carb:• 38% say “Convenience” AND “Health & Wellness” are the reasons why • 32% indicate “Convenience” factors are the reasons why• Only 9% indicate “Health & Wellness” factors make them choose potatoes

NATIONAL SITUATION ANALYSIS

7

TOP TEN FACTORS DRIVING POTATO PURCHASE

64% of the population makes potato purchases based on the following:

1. Good quality and taste2. Freshness3. Nutrition4. Value for money5. Easy to prepare6. Quick to Prepare – under 30 minutes7. Offers comfort/satisfaction8. Natural 9. Provides good energy 10.Supports Canadian farmers

our approach to making new historyfor the retail food sector …….

Farmhouse product attributes: 1. Good quality and taste2. Fresh never frozen3. Nutrition – low sodium4. Value for money5. Easy to prepare – all ages6. Convenience - quick to prepare7. Offers comfort/satisfaction8. Natural - just potatoes9. Provides good energy -

complex carbohydrate10. Supports local farmers

PACKAGING

1. Logo and graphics explain/depict content

2. Appealing farm fresh motif3. Date coded4. Educational – good nutritionals5. Identified as Low Sodium –

Gluten Free – No Preservatives6. Easy to follow instructions7. Appropriate sizing – 350g8. Gas flush – 25 days9. Easy to merchandise 10. Website – farmhousefries.com

UNIQUE VALUE PROPOSITION

Farmhouse Fresh Fry Competitive Advantage• The only oil blanched fresh fry on the market - competitors produce a steamed,

oil sprayed product inferior in flavour, mouth feel, texture and aroma• Proven shelf life of 25 days from date of production• Dedicated sales and production team with proven track record • Strong team of professionals with R&D, sales, logistics, manufacturing, quality

control• Innovative packaging, design and strategic product placement in produce• HACCP program in place

PRICING

Case cost: FOB Valley Growers $25.80Delivery not includedCASE PACK: 12 X 350gCOST: $2.15 Per Bag FOB Valley GrowersSUGGESTED RETAIL: $3.49 SHELF LIFE: 25 days from date of manufacture