Breakfast Opportunity Sams Club Deep Dive Sams Club

Breakfast Opportunity Sam’s Club Deep Dive

Sam’s Club Current Offerings 13

Sam’s Club Frozen Breakfast SAVORY Frozen Breakfast Products* Item # Count Ounce Retail $/Count $/Ounce Hot Pockets Breakfast Sandwiches 755147 13 Owens Tacos (Sausage, Egg, and Cheese) 17791 24 57. 6 Jimmy Dean Snack Size Sausage Biscuits 496939 36 Jimmy Dean Biscuit Sandwich (Sausage, Egg, and Cheese) 452889 Status N/A A 0. 69 0. 17 9. 98 0. 42 0. 17 N 61. 2 10. 78 0. 30 0. 18 A 12 54 9. 98 0. 83 0. 18 N 778 12 54 10. 68 0. 89 0. 20 A Jimmy Dean Delights Turkey Sausage Muffin Sandwiches 943979 12 61. 2 11. 98 1. 00 0. 20 A Jimmy Dean Pancakes and Sausage 126124 18 45 8. 98 0. 50 0. 20 N Jimmy Dean Biscuit Sandwich (Bacon, Egg, and Cheese) 475888 12 43. 2 10. 78 0. 90 0. 25 A Great Day Kolache Sausage Rolls 20 40 10. 68 0. 53 0. 27 Jimmy Dean Sausage and Cheese Croissant 34431 *All listed products based on availability in Bentonville, AR Club 52 $ 8. 98 Star Rating N/A A 2

Sam’s Club Frozen Breakfast SWEET Frozen Breakfast Products Statu Item # Count Ounce Retail $/Count $/Ounce Star Rating s Kellogg's Eggo Homestyle Waffles 909303 60 74. 1 $ 8. 98 0. 15 0. 12 Kellogg's Eggo Blueberry Waffles 152365 60 74. 1 8. 98 0. 15 0. 12 Farm. Rich Cinnamon Sprinkle French Toast Sticks 877045 55 -62 52 5. 98 0. 11 0. 12 Pillsbury Toaster Strudel Variety Pack 11342 24 46 5. 98 0. 25 0. 13 Pillsbury Mini Pancakes Maple Burst'n 440004 16 50. 7 8. 98 0. 56 0. 18 N N/A A A 14 TOTAL Current Products in Frozen Breakfast Category 3

Closer Look - Current Products • Eggo Homestyle Waffles o Eggo® Homestyle waffles toast up golden brown with a light, crispy texture and a wonderfully classic taste — making them a delicious way to start your day! o Quantity: 6 – 10 packs o Retail: $8. 98 o Customer Reviews: 3 • • Pro: Convenient and inexpensive Con: Need more flavor options • Eggo Blueberry Waffles o They have a light, crispy texture and the perfect amount of blueberry flavor to give every day a berry-good start! o Quantity: 6 – 10 packs o Retail: $8. 98 o Customer Reviews: 0 4

Closer Look – Current Products • Farm Rich Cinnamon Sprinkle French Toast Sticks o Made with whole white wheat and contain 0 g trans fat per serving. Its fortified with 11 vitamins and minerals and is an excellent source of calcium! o Retail: $5. 98 o Quantity: 55 -62 o Customer Reviews: 4 o Pro: Quality product, Inexpensive o Con: None • Pillsbury Toaster Strudel Variety Pack o Convenient fruit-filled toaster pastries are great from the freezer to the toaster. Variety Pack Includes: 12 Strawberry and 12 Apple o Retail: $5. 98 o Quantity: 24 o Customer Reviews: 0 5

Closer Look – Current Products • Pillsbury Mini Pancakes Maple Burst’n o Delicious microwavable, pre-flavored mini pancakes in a ready to serve pouch o Retail: $8. 98 o Quantity: 16 individual packages o Not listed online in Bentonville club o Exclusive Club Product o Customer Reviews: 1 • Hot Pockets Breakfast Sandwich o Made with premium bacon, low fat cheese and real scrabbled eggs with sauce in a flaky crust o Retail: $8. 98 o Quantity: 13 (Value pack) o Individually wrapped, 13 – 4 oz. sandwich o Customer Reviews: 0 6

Closer Look – Current Products • • Jimmy Dean Sausage, Egg and Cheese Croissant – A delicious combination of Jimmy Dean Sausage and a flaky croissant along with eggs and cheese to make a great sandwich – Retail: $10. 68 – Count: 12 – Reviews: 8 • • Pro: Inexpensive Con: None Jimmy Dean Delights Turkey Sausage Muffin Sandwich – Fully cooked and made with whole grain muffin, turkey sausage patty, egg white and cheese. Delights™ sandwiches are a 1/3 fewer calories and 1/2 the fat compared to the leading breakfast sandwich – Retail: $11. 98 – Count: 12 – Only clear healthy option – Reviews: 20 • • Pro: Quality, healthy, great buy Con: Poor cooking instructions 7

Closer Look – Current Products • • Jimmy Dean Snack Size Sausage Biscuits Owens Tacos (Sausage, egg, and cheese) o Individually wrapped and microwaveable sausage, egg, and cheese tacos o Retail: $9. 98 o Quantity: 12 – twin packs o Customer Reviews: 1 o “Decent breakfast, decent price” o A hot breakfast sandwich featuring delicious Jimmy Dean® sausage on a biscuit. This pack includes 36 sausage biscuits: Individually wrapped twin packs o Retail: $10. 78 o Quantity: 18 – twin packs o Only snack size savory item o Customer Reviews: 2 o Pro: Quick fix o Con: Price 8

Closer Look – Current Products • Jimmy Dean Sandwich (Bacon, egg, and cheese) o 12 individually wrapped bacon, egg, and cheese biscuits o Retail: $10. 78 o Quantity: 12 o Customer Reviews: 1 o “Excellent product. Great for those days, when I or my husband want bacon, instead of sausage” • Jimmy Dean Pancakes and Sausage – Jimmy Dean full-flavored sausage inside a sweet pancake covering: microwave for less than two minutes – Retail: $8. 98 – Quantity: 18 individually wrapped – Combines sweet and savory – Customer Reviews: 6 • • Pro: Portable, tasty Con: Hard to find 9

Closer Look – Current Products • Jimmy Dean Biscuit Sandwich (Sausage, egg, and cheese) o Made with flavor fill Jimmy Dean sausage patty, egg and cheese on a fluffy biscuit o Retail: $9. 98 o Quantity: 12 o Customer Reviews: 5 o “The folks in my office love these sandwiches. The sausage is very good and it's a good value. ” • Great Day Kolache Sausage Rolls 20 smoked sausage with cheddar baked in a roll Retail: $10. 68 Quantity: 20 New Packaging – Not listed online in Bentonville club o Customer Reviews: 5 o o o Pro: Delicious, quality o Con: Quantity 10

Schwan’s Opportunity 13

Opportunity • Current “White Space” – Breakfast Pizza – Value Breakfast Items • Best Options – Red Baron Scrambles or Red Baron Breakfast Minis – Tony’s or Private Label – to capture value option • Possible Schwan’s offerings: – – Mega Pouches Biscuit Sticks Pancake and Sausage Bites Toastwich • Volume Potential – Test: $250, 000 (assuming 100 club test for 3 months) – Annual – all clubs: $7. 5 MM (assuming $300/club) 13

Closer Look – Future Product Options • Red Baron Scrambles o 8 ct. Bacon or variety Pack o Cost: $7. 24/unit or $. 90/pz o Retail: $8. 89 = 20% value to WM retail of $2. 78 / 2 pack ($1. 39 ea) o $1. 11 per piece and $. 20/oz o Most expensive on a $/count basis in category o On par with Jimmy Dean on a $/oz basis • Red Baron Mini Scrambles 30 ct. Bacon and Egg (10 – 3 count packs) Cost: $6. 50 Retail: $7. 98 retail = 20% value to dollar channel $. 798 per piece (3 pk) and $. 196/oz Slightly below Jimmy Dean Biscuit sandwich on a $/count basis. o On Par with Jimmy Dean on a $/oz basis o o o 10

Closer Look – Future Product Options • Tony’s Mega Pouch 10 ct. Bacon Egg and Cheese Cost: $6. 50 Retail: $7. 98 retail = 20% value to dollar channel $. 798 per piece (3 pk) and $. 09/oz Slightly below Jimmy Dean Biscuit sandwich on a $/count basis. $. 10 above hot pocket. o Lowest in category on a $/oz basis o o o • Other Opportunities o o Biscuit Sticks Pastry Sticks Pancake and Sausage Bites Toastwich 10

Schwan’s Past Offerings 13

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Appendix 13

Red Baron Singles Breakfast Solution • Red Baron breakfast fulfills consumer needs – Consumers are looking for quick meals for breakfast – Consumers are looking for variety of options that provide a complete breakfast meal (a protein & a starch) • Red Baron pizza with a twist! – Red Baron has taken the pizza dough crust that consumers love and added breakfast toppings to fill the breakfast occasion. • Red Baron is a trusted brand name – Red Baron is recognized by 91% of households* – Consumers trust Red Baron quality 14 Source: AAU Study May 2009

Red Baron Singles Breakfast Details Product Description: Red Baron Single Serve Breakfast Scrambles are biscuit style deep dish crusts topped with scrambled eggs, 100% real cheeses and high quality meats. There are three varieties available and each package contains two 5” Scrambles. Western Sausage Bacon WM item number 9120714 WM item number 9120693 WM item number 9120686 Best Selling in WMT! Current Wal-Mart EDLP: $2. 96 $/count – 1. 48 $/ounce -. 30 15

Biggest Competitor • Jimmy Dean Products • New Non-club Breakfast Product (Currently in grocery) – Launched March 1, 2012 – Two Options • Sausage • Delights turkey sausage – 2 Count package: $3. 99 12

Industry Statistics • Dollar Sales: – Total Frozen Breakfast Foods: • $1, 583, 927, 773 – Frozen/Refrigerated Breakfasts: • $830, 571, 676 – Frozen Waffles/Pancakes, French Toast: • $753, 356, 097 • Sales Units: – Total Frozen Breakfast Foods: • 545, 631, 083 – Frozen/Refrigerated Breakfasts: • 244, 014, 661 – Frozen Waffles/Pancakes, French Toast: • 301, 616, 422 Source: Nielsen; data for the 52 weeks ending Nov. 26, 2011, for U. S. food stores with at least $2 11 million in sales (excluding supercenters)