SOUTHEAST Region

Regional Composite

REGIONALDATA REPORT

JAN – SEP2015 vs. 2014

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Methodology

• Categories:– Avocados– Total Produce: Includes avocados

• Timeframe: YTD Q3 (January – September) 2015

• Average Selling Price (ASP) is not Advertised Retail Price– Average selling price = Dollars/Volume (Units) = Average price per unit

• Retail data provided by IRI / FreshLook Marketing– HAB's calculation based in part on data reported by Information Resources, Inc.

through its Freshlook Service for the Avocado category for Multi-Outlet (MULO). Multi-outlet reporting includes an aggregation of the following channels: grocery, mass, club, drug, dollar and military. The information is believed to be reliable at the time supplied by IRI but is neither all-inclusive nor guaranteed by IRI. Without limiting the generality of the foregoing, specific data points may vary considerably from other information sources.

– Important Note: IRI / FreshLook Marketing periodically restates retail data, therefore this review cannot be compared or used in conjunction with prior reviews

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Southeast Region: Highlights - YTD Q3

• Overview based on the following geography:– The Southeast Region captures the Markets of Atlanta, Jacksonville, Miami, Orlando,

South Carolina and Tampa, plus additional cities not included in those Markets

• 2015 vs. 2014, avocado dollars in Southeast grew +17% and trended ahead of the Total U.S. growth rate by +3 points– Avocado dollar growth rate outpaced total produce (+2%) by +15 points– During the same time, category volume grew +29%– Category average selling price (ASP) decreased -9% to $1.12/unit– Small Hass avocados (4046) drove category dollar growth, adding over +$13MM– Small Hass avocados also drove volume growth adding nearly +19MM units to the

category

• Southeast posted dollar and volume velocities lower than the national average– Southeast averaged $286 and 255 units per store per week through Q3 2015

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Southeast: YTD Q3 - Avocados vs. Total Produce

• 2015 vs. 2014, avocado dollars grew +17%, outpacing total produce (+2%) by +15 points

• Southeast held a 14% share of total produce dollars and a 11% share of avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate (All Periods)

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Southeast: YTD Q3 Avocado Retail Overview

• 2015 vs. 2014, Category dollars grew +17%– Units grew +29%

• 2015 vs. 2014, Category average selling price (ASP) decreased -9% to $1.12/unit

Southeast Avocado Sales Posted Double-Digit Growth Rates in Dollars and Units (2015 vs. 2014)

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RETAIL DOLLARSPLU Description 2014 2015 Variance 2014 2015 Variance4046 Small Hass #60 sizes & smaller 78,762,036$ 91,871,548$ +16.6% 369,113,002$ 414,528,625$ +12.3%4225 Large Hass #40 & #48 sizes 15,948,669$ 16,712,044$ +4.8% 566,556,203$ 632,113,094$ +11.6%4770 X-Large Hass #36 sizes & larger 1,462,734$ 2,381,830$ +62.8% 53,309,813$ 69,792,852$ +30.9%Other Greenskins, Pinkertons, non-Hass PLUs 15,135,183$ 14,560,980$ -3.8% 36,659,349$ 36,476,747$ -0.5%

Organic All Organic PLUs 1,245,872$ 1,693,362$ +35.9% 29,007,794$ 34,572,617$ +19.2%Bags All bagged PLUs 20,285,643$ 28,416,673$ +40.1% 176,114,846$ 215,559,773$ +22.4%

132,840,138$ 155,636,437$ +17.2% 1,230,761,008$ 1,403,043,707$ +14.0%

RETAIL UNITSPLU Description 2014 2015 Variance 2014 2015 Variance4046 Small Hass #60 sizes & smaller 64,753,998 83,302,343 +28.6% 417,529,997 523,146,893 +25.3%4225 Large Hass #40 & #48 sizes 12,366,629 13,971,928 +13.0% 422,045,109 494,107,646 +17.1%4770 X-Large Hass #36 sizes & larger 761,019 1,487,213 +95.4% 28,673,155 38,883,927 +35.6%Other Greenskins, Pinkertons, non-Hass PLUs 8,117,489 7,732,115 -4.7% 21,694,621 25,981,944 +19.8%

Organic All Organic PLUs 564,319 841,010 +49.0% 16,530,886 20,737,390 +25.4%Bags All bagged PLUs 20,857,798 31,105,961 +49.1% 183,510,456 239,188,245 +30.3%

107,421,254 138,440,570 +28.9% 1,089,984,224 1,342,046,045 +23.1%

AVERAGE SELLING PRICE (ASP) / UNITPLU Description 2014 2015 Variance 2014 2015 Variance4046 Small Hass #60 sizes & smaller $1.22 $1.10 -9.3% $0.88 $0.79 -10.4%4225 Large Hass #40 & #48 sizes $1.29 $1.20 -7.3% $1.34 $1.28 -4.7%4770 X-Large Hass #36 sizes & larger $1.92 $1.60 -16.7% $1.86 $1.79 -3.5%Other Greenskins, Pinkertons, non-Hass PLUs $1.86 $1.88 +1.0% $1.69 $1.40 -16.9%

Organic All Organic PLUs $2.21 $2.01 -8.8% $1.75 $1.67 -5.0%Bags All bagged PLUs $0.97 $0.91 -6.1% $0.96 $0.90 -6.1%

$1.24 $1.12 -9.1% $1.13 $1.05 -7.4%

TOTAL CATEGORY UNITS

Total U.S.Southeast

JAN

UA

RY -

SEPT

EMBE

R: 2

014

vs 2

015

CATEGORY ASP ($/Unit)

Total U.S.Southeast

TOTAL CATEGORY DOLLARS

Total U.S.Southeast

Southeast vs. Total U.S. - YTD Q3 PLU Comparisons

• Avocado dollar sales in SE increased +17% and trended ahead of the Total U.S. growth rate by +3 points– Volume increased

+29%, +6 points ahead of Total U.S.

• Small Hass avocados (PLU 4046) drove dollar growth in SE, adding over +$13MM to the category– Small Hass

avocados also drove category units, adding nearly +19MM units

– Small Hass avocado ASP decreased -9% to $1.10/unit

Southeast Outpaced Total U.S. in Dollar and Volume Sales Growth Rates

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Southeast: YTD Q3 Category Per Store Per Week Averages

• Southeast had the third lowest dollar velocity– Southeast averaged

$286 per store per week through Q3 2015

• Southeast had the second lowest volume velocity– Southeast averaged

255 units per store per week through Q3 2015

Lower Dollars and Units Per Store Per Week in Southeast Presents Opportunity for Growth

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Southeast: 2013-Q1 through 2015-Q3Units vs. ASP

• Retail Units– The peak quarter was 2015-Q3 at 47MM units when ASP was $1.11/unit– The lowest quarter was 2013-Q4 at 27MM units when ASP was at $1.24/unit

• ASP– Lowest ASP to date occurred during 2015-Q2, $1.10/unit– Highest ASP to date occurred during 2013-Q3 at $1.34/unit