U S Retailing Consumer Trends Jeff Gregori The

U. S. Retailing & Consumer Trends Jeff Gregori The Nielsen Company October 23 rd, 2008 Confidential & Proprietary • Copyright © 2008 The Nielsen Company

Agenda • Economic Outlook • U. S. Retail Trends • Key Consumer Trends ü Health & Wellness • Key Insights & Recommendations U. S. Retailing & Consumer Trends 21 October 2021 Page 2 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Overall Cost of Living Rising Sharply Consumers Can Not Keep Up With Necessities 12 Month Percentage Increase, Selected Items (March 2007 vs. March 2008) 48% 35% 27% 16% 13% Fuel Oil Gasoline Eggs Bread Milk Gallon dozen pound half gallon Gallon 10% 7% Chicken Ground pound Beef pound 3% Wages - 8% Housing Source: U. S. Department of Labor Statistics (Consumer Price Index; U. S. City Average); USDA, NAR, BLS U. S. Retailing & Consumer Trends 21 October 2021 Page 3 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Consumers Combining Trips, Eating Out Less, Staying Home, Cutting Spending @ Alarming Levels! 78% combining shopping trips & errands (+ 10 pts from YAGO), 52% eating out less (+ 14 pts), 51% staying home more often (+ 12 pts) & 63% of U. S. consumers are reducing spending (+ 18 pts)! Saving Money in What & How they Buy & Where They Shop Impact higher gas prices had on driving & spending habits? Check all Jun/Jul ‘ 05 Jun/Jul ‘ 06 Jun ‘ 07 Jun ‘ 08 Buy less expensive grocery brands 17% 22% 19% 35% Use more coupons 20% 24% 21% 32% Shop more @ Supercenters 22% 26% 23% 28% Buy Larger, Economy Size 10% 11% 10% 16% Nielsen Homescan Gas Impact Study U. S. Retailing & Consumer Trends 21 October 2021 Page 4 Confidential & Proprietary Copyright © 2008 The Nielsen Company

So, Tough Times for Growth & How Important Are Value, Variety & Convenience to You? • How are you equipped to compete against Value, Variety or Convenience? • Are you providing Value, Variety & Convenient solutions to category consumers & retail shoppers? • An integral part of these themes is innovation U. S. Retailing & Consumer Trends 21 October 2021 Page 5 Confidential & Proprietary Copyright © 2008 The Nielsen Company

U. S. Retailing Trends U. S. Retailing & Consumer Trends 21 October 2021 Page 6 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Value & Convenience Winning As Evidenced By Increased Store Count U. S. Store counts Supermarkets have not grown at the rate of other retail channels – no wonder the channel has lost shopping trips! Source: Trade Dimensions® & TDLinx®, services of The Nielsen Company U. S. Retailing & Consumer Trends 21 October 2021 Page 7 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Shopping Behavior Trends • Retailers can grow their sales by: – Increasing their shopper base – Driving shopping frequency – Building baskets • Leveraging categories & brands that impact one or more of these components • Driving “need state” trip opportunities – Health & wellness – Meal occasions – Large versus small trips – Time-starved consumers Source: Homescan®, a service of The Nielsen Company U. S. Retailing & Consumer Trends 21 October 2021 Page 8 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Value Winning As Evidenced By Consumer Acceptance % US household penetration Benefits from new store openings Source: Homescan®, a service of The Nielsen Company ** Note: Conv/Gas channel behaviors understated because of the high level of gasoline only buys & purchases of immediate consumables U. S. Retailing & Consumer Trends 21 October 2021 *Includes Kmart, Target & Wal-Mart Supercenters Page 9 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Value Channels Grabbing Trips per household -17% Grocery & Mass trips continue to drop -18% Source: Homescan®, a service of The Nielsen Company ** Note: Conv/Gas channel behaviors understated because of the high level of gasoline only buys & purchases of immediate consumables U. S. Retailing & Consumer Trends 21 October 2021 *Includes Kmart, Target & Wal-Mart Supercenters Page 10 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Value Retailing Driving Price Compression Average $ basket ring—total expenditures One Stop Shopping A Key Strength For Military ** Source: Homescan®, a service of The Nielsen Company ** Note: Conv/Gas channel behaviors understated because of the high level of gasoline only buys & purchases of immediate consumables U. S. Retailing & Consumer Trends 21 October 2021 *Includes Kmart, Target & Wal-Mart Supercenters **Source: Progressive Grocer Page 11 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Military Channel mostly competing for Larger Stock Up Trips (>$64) very similar to Club % of channel dollars by trip type Immediate = <$31 Fill In = >$31 <= $64 Routine = $64 - $125 Stock Up = >$125 Total US—Nielsen Homescan— 52 weeks ending 7/1/2006 U. S. Retailing & Consumer Trends 21 October 2021 Page 12 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Next to Club, no channel appeals more to higher income households than the Military Channel % sales from all shoppers What can the Military Channel learn from Club retailers? Source: Homescan®, a service of The Nielsen Company―Total US— 52 weeks ending 6/28/2008 U. S. Retailing & Consumer Trends 21 October 2021 Page 13 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Value channel (Dollar, Mass & Club) growth coming from ALL income segments! $ % Chg V. Year Ago - By Income Group Flat Source: MY 2008 Vs. MY 2007 Account Shopper Profiler Low Income = < $20 K, Mid Income $20 K-$99. 9 K, High Income >$100 K U. S. Retailing & Consumer Trends 21 October 2021 Page 14 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Low income households unlikely to trade up, but high income households will trade down Penetration By Income Group 11 Million HH’s Source: Mid-Year 2008 Homescan Low Income = < $20 K, Mid Income $20 K-$99. 9 K, High Income >$100 K U. S. Retailing & Consumer Trends 21 October 2021 Page 15 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Dollar Stores Expanding Assortment U. S. Retailing & Consumer Trends 21 October 2021 Page 16 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Retailers – How Are the Winners Winning? Convenient Shopping Solutions BAG & CHECKOUT AS YOU SHOP! U. S. Retailing & Consumer Trends ANTICIPATE SHOPPER NEEDS 21 October 2021 Page 17 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Marketside – Wal-Mart’s Newest Banner • First 4 Locations Near Phoenix, AZ – 7561 E. Baseline Road, Mesa – 910 E. Elliott Road, Gilbert – 950 N. Mc. Queen Road, Chandler – 838 W. Elliott Road, Tempe • 15, 000 -20, 000 Square Feet of Selling Space – Half the Size of a Neighborhood Market This new banner allows Wal-Mart to attract upscale shoppers without the Wal-Mart name or the “Big Box” image. http: //www. marketside. com U. S. Retailing & Consumer Trends 21 October 2021 Page 18 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Retailers Performing Well In Tough Economy • Costco July sales rose 14%, same-store up 10% • BJ’s July same-store sales up 16. 7%, excluding gasoline, same-store up 7% • Dollar Tree posted 12. 5% increase in sales during fiscal 2 nd qtr, comp-store up 6. 5% • Kroger 1 st qtr sales up 11. 5%, identical supermarket sales up 9. 2% with fuel & 5. 8% without • Family Dollar July sales rose 7. 2%, same-store up 4. 6% • Walgreen Co. July sales up 10. 7%, same-store up 4. 1% • Wal-Mart 2 nd qtr sales up 10. 1%, same-store up 4. 5% Consumer Motivation = Stock-up & Save Source: Industry e-newsletters & company web sites U. S. Retailing & Consumer Trends 21 October 2021 Page 19 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Retailers Performing Well In Tough Economy • Costco July sales rose 14%, same-store up 10% • BJ’s July same-store sales up 16. 7%, excluding gasoline, same-store up 7% • Dollar Tree posted 12. 5% increase in sales during fiscal 2 nd qtr, comp-store up 6. 5% • Kroger 1 st qtr sales up 11. 5%, identical supermarket sales up 9. 2% with fuel & 5. 8% without • Family Dollar July sales rose 7. 2%, same-store up 4. 6% • Walgreen Co. July sales up 10. 7%, same-store up 4. 1% • Wal-Mart 2 nd qtr sales up 10. 1%, same-store up 4. 5% Consumer Motivation = Value Seeking Source: Industry e-newsletters & company web sites U. S. Retailing & Consumer Trends 21 October 2021 Page 20 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Retailers Performing Well In Tough Economy • Costco July sales rose 14%, same-store up 10% • BJ’s July same-store sales up 16. 7%, excluding gasoline, same-store up 7% • Dollar Tree posted 12. 5% increase in sales during fiscal 2 nd qtr, comp-store up 6. 5% • Kroger 1 st qtr sales up 11. 5%, identical supermarket sales up 9. 2% with fuel & 5. 8% without • Family Dollar July sales rose 7. 2%, same-store up 4. 6% • Walgreen Co. July sales up 10. 7%, same-store up 4. 1% • Wal-Mart 2 nd qtr sales up 10. 1%, same-store up 4. 5% Consumer Motivation = Value & Convenience Source: Industry e-newsletters & company web sites U. S. Retailing & Consumer Trends 21 October 2021 Page 21 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Retailers Performing Well In Tough Economy • Costco July sales rose 14%, same-store up 10% • BJ’s July same-store sales up 16. 7%, excluding gasoline, same-store up 7% • Dollar Tree posted 12. 5% increase in sales during fiscal 2 nd qtr, comp-store up 6. 5% • Kroger 1 st qtr sales up 11. 5%, identical supermarket sales up 9. 2% with fuel & 5. 8% without • Family Dollar July sales rose 7. 2%, same-store up 4. 6% • Walgreen Co. July sales up 10. 7%, same-store up 4. 1% • Wal-Mart 2 nd qtr sales up 10. 1%, same-store up 4. 5% Consumer Motivation = Value & 1 -Stop Shop Source: Industry e-newsletters & company web sites U. S. Retailing & Consumer Trends 21 October 2021 Page 22 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Key Consumer Trends U. S. Retailing & Consumer Trends 21 October 2021 Page 23 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Short & Long-term Growth Can Be Accomplished With Consumer Focus Health & Wellness opportunities are here to stay • Make them key component of messaging and/or understand how to take advantage of indulgent consumers • Improve reaction time to new diets & eating trends Grains Veggies Fruits Oils Dairy Meat/Beans • In-store health clinics growing – Wal-Mart to add 400 by 2010 U. S. Retailing & Consumer Trends 21 October 2021 Page 24 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Many Health & Wellness Claims Show Strong Growth vs. Year Ago Health & Wellness Claim Natural Low Fat Absence of Specific Fat 52 -Week Dollar Sales $21. 8 Billion $14. 9 Billion $13. 3 Billion Chg Vs Year Ago +11. 4% +3. 9% +30. 5% $11. 3 Billion $10. 6 Billion $10. 0 Billion $8. 5 Billion $5. 8 Billion $5. 5 Billion $4. 7 Billion $2. 1 Billion $1. 9 Billion $1. 6 Billion +9. 7% +8. 6% +5. 2% +9. 6% -0. 6% -2. 2% +22. 5% +16. 6% +15. 8% +1. 8% (Trans Fat or Saturated Fat) Reduced Calories Cholesterol Free Fat Free Reduced Fat No Calories Caffeine Free Organic Multi-Grain Antioxidants Good Source of Fiber Source: Nielsen Label. Trends, Total U. S. FDMx. WM, 52 Weeks Ending 9/6/08 U. S. Retailing & Consumer Trends 21 October 2021 Page 25 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Organics Have Grown Considerably Over 4 Years, but Sales Volume Small Compared to Other H&W Trends $3. 5 Billion $4. 7 Billion $13. 6 Billion $17. 3 Billion $21. 9 Billion 52 Week Sales $46. 8 Billion Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08 U. S. Retailing & Consumer Trends 21 October 2021 Page 26 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Recent Weeks Show Less Aggressive Organic Growth U. S. Retailing & Consumer Trends Source: Nielsen Strategic Planner 21 October 2021 Page 27 Confidential & Proprietary Copyright © 2008 The Nielsen Company

In which aisles are Organic products most prevalent? UPC Fresh Produce & Dairy Department Fresh Produce (UPC-coded) Dairy Fresh Meat (UPC-coded) Dry Grocery Frozen Foods Deli (UPC-coded) Packaged Meat Alcoholic Beverages HBA Total Organics Organic Dollar Sales $869 Million $1, 475 Million $30 Million $1, 836 Million $339 Million $28 Million $37 Million $24 Million $41 Million $4, 680 Million % Chg. Organic Shr. YA of Dept. +26% 6. 3% +20% 3. 5% +23% 1. 9% +24% 1. 3% +23% 1. 1% +27% 0. 5% +25% 0. 4% +32% 0. 1% +27% 0. 1% +23% 1. 3% Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08 U. S. Retailing & Consumer Trends 21 October 2021 Page 28 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Organics Comprise Less Than 1% Share for Most Categories Category Milk Fresh Produce (UPC-coded) Soft Drinks – Non Carb Yogurt Baby Food Eggs Dessert/Fruit/Toppings Froz Soup Dried Fruit Jams/Jellies/Spreads Tea Cereal Breakfast Foods Flour Canned Vegetables Total Organics Organic Dollar Sales % Chg. YA Organic Share of Category $1, 018 Million $869 Million $67 Million $180 Million $167 Million $142 Million $40 Million $139 Million $34 Million $52 Million $70 Million $185 Million $56 Million $12 Million $72 Million +18% +26% +4% +21% +23% +29% +36% +17% +46% +45% +28% +12% +60% +37% +36% 7. 5% 6. 3% 6. 1% 5. 0% 4. 4% 4. 1% 3. 6% 3. 3% 3. 0% 2. 9% 2. 8% 2. 5% 2. 4% 2. 2% $4, 680 Million +23% 1. 3% Nielsen tracks 76 categories with organic claim. U. S. Retailing & Consumer Trends Source: Nielsen Strategic Planner, 52 Weeks Ending 8/9/08 21 October 2021 Page 29 Confidential & Proprietary Copyright © 2008 The Nielsen Company

“Big Names” in Organics Some Manufacturers have created Organic Line Extensions Source: Nielsen Strategic Planner: FDM 52 Weeks Ending 1/27/2007 U. S. Retailing & Consumer Trends 21 October 2021 Page 30 Confidential & Proprietary Copyright © 2008 The Nielsen Company

“Big Names” in Organics Several Large Manufacturers Produce Organic Products Under a Different Brand Names U. S. Retailing & Consumer Trends 21 October 2021 News & Proprietary Confidential Page 31 Source: Organic Copyright © 2008 The Nielsen Company

Meet the Health &Wellness Segments: (% of U. S. general population adults…) Least concerned & knowledgeable about health & healthy eating Driven to health by all means 17% EAT, DRINK & BE MERRYS Low belief in the value of healthy categories 25% WELL BEINGS 19% FENCE SITTERS 16% FOOD ACTIVES 19% MAGIC BULLETS Dedicated to health through smart nutrition and weight management High belief in the value of supplements – less concern with food U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 32 Confidential & Proprietary Copyright © 2008 The Nielsen Company

23% of Military Shoppers are Food Actives Shopper Index 93 117 98 95 95 % Shoppers Source: Homescan®, a service of The Nielsen Company U. S. Retailing & Consumer Trends 21 October 2021 Page 33 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Military Shoppers most likely to be FOOD ACTIVES and EAT DRINK & BE MERRY type shoppers Dollar Spend Index v. Avg HH WELL BEINGS FOOD ACTIVES MAGIC BULLETS FENCE SITTERS EAT DRINK & BE MERRYS MILITARY 97 108 98 89 105 Whole Foods 241 35 162 45 23 Wegmans 134 127 71 88 88 Costco 111 117 81 82 Sam’s Club 88 117 118 85 91 Safeway Grocery Corp 106 93 105 106 94 Target Banner 105 101 92 100 103 Wal-Mart Banner 84 93 94 110 115 Read as: Costco $ sales are 11% greater than industry among WELL BEINGS Source: Homescan®, a service of The Nielsen Company―Total US— 52 week ending 09/06/2008 U. S. Retailing & Consumer Trends 21 October 2021 Page 34 Confidential & Proprietary Copyright © 2008 The Nielsen Company

FOOD ACTIVES Health-Related FOOD ACTIVE 16% v Eating healthy is vital, over three-fourths eat heart smart (% of population…) v Believe maintaining proper weight is key to healthful living v Low use of natural and organic food v Most apt to count calories and use artificial sweeteners instead of sugar v Highest use of prescription drugs; lowest use of alternative healthcare Branding Influences v Most likely to choose products for which they have a coupon v Lower than average levels of LOHAS environmental values Dedicated to health through healthy eating, avoiding negatives and adding those with nutritional benefits. FOOD ACTIVES are driven by a desire for balance of exercise, nutrition, and weight management. Health & Wellness – Nielsen & NMI Service Introduction U. S. Retailing & Consumer Trends 21 October 2021 Page 35 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Health & Wellness Segments Show Different Category Preferences Dollar Spend Index v. Avg HH WELL BEINGS FOOD ACTIVES MAGIC BULLETS FENCE SITTERS EAT DRINK & BE MERRYS Yeast 159 129 69 155 27 Flour 130 108 91 78 Fresh Produce 120 111 108 91 77 Yogurt 119 112 111 84 80 Wine 129 125 113 78 66 Beer 91 95 90 107 114 Read as: Flour $ sales are 30% greater than average HH among WELL BEINGS Source: Homescan®, a service of The Nielsen Company―Total US— 52 week ending 09/06/2008 – upc-coded products U. S. Retailing & Consumer Trends 21 October 2021 Page 36 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Summary & Closing Thoughts U. S. Retailing & Consumer Trends 21 October 2021 Page 37 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Key Insights & Recommendations 1. More than ever, shoppers of all economic means are seeking “value” – Combining shopping trips – Eating more meals at home & doing more “at-home” entertaining – Seeking the right mix of value, variety, & convenience – BUT AT ACCELERATED LEVELS The Military Channel is more important than ever to its customers – More shoppers are taking advantage of the Military Channel as UPC product penetration has increased to 3. 8% (4. 4 MM) but shopping frequency is has eroded – How aggressive are we advertising “The Military Channel Value proposition” to shoppers versus Mass, Dollar & Club stores? U. S. Retailing & Consumer Trends 21 October 2021 Page 38 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Key Insights & Recommendations 2. The Military Channel Health & Wellness strategy should consider the following elements: – Key Assortment Drivers of Health & Wellness o Natural, Preservatives, Fat and Calorie Presence Claims offer the Military Channel opportunity to build Health & Wellness equity with its customers more than Organics o Potential Organic category entry points for the Military Channel includes: Ø Primarily Center Store - Non-Carb Soft Drinks, Baby Food, Soup, Dried Fruit, Jams/Jellies, Tea, Cereal, Breakfast Foods & Canned Vegetables Ø Perimeter Areas – Milk, Yogurt, Eggs Ø Organic Frozen can be a differentiation point for Military versus competitive channels. This sector is undeveloped for Organics, but the Total Frzoen Dept is real strength at Military. U. S. Retailing & Consumer Trends 21 October 2021 Page 39 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Key Insights & Recommendations 3. The “Food Actives” Shopper Segment is a significant opportunity for the Military channel to drive growth with Health & Wellness o A big target for Military as 23% are considered Food Actives (1 MM+ Shoppers) Ø 75% eat Heart Smart and Count Calories Ø Most likely to use Artificial Sweeteners instead of Sugar Ø Most likely to choose products for which they have a Coupon o While these shoppers already spend 8% more than the average shopper in Military, we need to define ourselves somewhere between Sams (117) & Wegmans (127) U. S. Retailing & Consumer Trends 21 October 2021 Page 40 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Thank You! Mid-Year Update Confidential & Proprietary • Copyright © 2008 The Nielsen Company

Appendix U. S. Retailing & Consumer Trends 21 October 2021 Page 42 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Health & Wellness Segmentation Methodology U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 43 Confidential & Proprietary Copyright © 2008 The Nielsen Company

NMI Health & Wellness Segmentation Methodology • NMI’s analysis of the U. S. population’s attitudes and behaviors regarding health and wellness has long indicated that there are clearly identifiable psychographic health and wellness segments. • In 2001, NMI developed a proprietary health and wellness segmentation of U. S. consumers. Based on more than 40 measures, the Health and Wellness segmentation has become a cornerstone of the Health & Wellness Trends Report (HWTR). The five segments identified have been quite robust over time, displaying strong consistency from year to year. U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 44 Confidential & Proprietary Copyright © 2008 The Nielsen Company

NMI Health & Wellness Segmentation Methodology • The formal analytical model measures commonalities and differences between five distinct consumer groups using k-means cluster analysis. The comprehensive statistical modeling process used to derive NMI’s health and wellness consumer segmentation is based on the following techniques and methodologies: • Exploratory and confirmatory factor analysis of nearly 200 measures of consumer attitudes and behaviors regarding health and wellness, organic products, supplements, exercise, and many other topics. The analysis identified more than 25 potential factors • The identification of 31 measures from the factor analysis that best represented each of the potential factors identified and maintained consistency with the previous years’ segmentation solution • K-means cluster analysis which examined numerous potential solutions to determine which segmentation model provided the optimal solution, based on the following criteria: • Maximum differentiation between consumer groups • Maximum homogeneity within each consumer group U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 45 Confidential & Proprietary Copyright © 2008 The Nielsen Company

NMI: Unparalleled Expertise in Health, Wellness & Sustainability NMI is an international strategic consulting, market research, and business development company specializing in the health, wellness, and sustainability marketplace. Since 1990, NMI has focused on the well-being of people and products, and the environmental and social responsibility of the planet. NMI owns the only H&W consumer database. U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 46 Confidential & Proprietary Copyright © 2008 The Nielsen Company

EAT, DRINK & BE MERRYS 23% (% of population…) Health-Related v Least likely to agree that consumption of healthy, nutritious food is important to a healthy lifestyle v Lowest monthly expenditure on healthy and natural products v Driven more by taste and to select emotional, “feelgood” products v Least likely to read labels Branding Influences v Most likely to choose store brand buy on price v Least likely to associate personal values with brand choice U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Least concerned about health and healthy eating; least knowledgeable about healthrelated benefits. Know they should eat healthier, but don’t. Most focused on taste. Page 47 Confidential & Proprietary Copyright © 2008 The Nielsen Company

WELL BEINGS Health-Related v High use of healthy food such as soy food/beverages, fiber, organic food/beverages WELL BEING 25% (% of population…) v Spend significantly more on healthy and natural products v As challenged to eat right as other segments, yet are the most successful at healthy eating v Choose natural/organic over conventional v Above average use of alternative healthcare Driven to health by all Branding Influences means, including food, supplements, and other v Least likely to base purchase decisions on price; choose products. Strong preference quality regardless of cost; concerned about brand image for concepts that are natural v Most likely to shop natural channel, including Trader Joe's and organic, with strong and Whole Foods Market environmental linkage. v Early adopters and influencers v Purchase from companies that share their values U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 48 Confidential & Proprietary Copyright © 2008 The Nielsen Company

MAGIC BULLETS Health-Related MAGIC BULLETS 19% v Above average interest in, understanding, and use of organic and natural food/ beverages (% of population…) v Highest use of functional/fortified food/beverages v Highest usage of weight loss food and artificial sweeteners v Highest use of OTC, alternative healthcare, homeopathic remedies, condition specific supplements, VMHS; high use of Rx Branding Influences v Average brand loyalty, less concerned with brand image v After WELL BEINGS, most likely to shop Trader Joe’s and Whole Foods Market v More likely to choose products for which they have a coupon U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction High belief in and usage of supplements for health, and less concern with food. Among the groups most actively managing weight, sensitive to environmental concerns, and some leanings toward natural and organic. Healthy convenience resonates with this group. Page 49 Confidential & Proprietary Copyright © 2008 The Nielsen Company

FENCE SITTERS 17% (% of population…) Health-Related v Lower belief in the connection between diet and health v Less than average use of most healthy food categories v Less concerned about sugar, high fructose corn syrup, and artificial sweeteners Branding Influences v Average brand loyalty v Concerned about brand image v More likely to buy on price Primarily younger households with kids, who buy on price and are driven by the “family” diet. They are neutral on most health issues, with a low belief in the value of healthy categories v Less environmentally sensitive U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 50 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Good Alignment Between NMI & Homescan – Consistent Segment Sizes % Population % Households Source: NMI 2007 H&W Consumer Trends Database™; Homescan®, a service of The Nielsen Company U. S. Retailing. Health & Consumer & Wellness – Nielsen & 21 October 2021 Trends NMI Service Introduction Page 51 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Who is the Military Shopper? Demographics of HEAVY Military Shopper Demographics of the average Military Shopper • • • HHLD Income $40 K+ Female Head Age 55+ Affluent Suburban Spreads Younger Bustling Families Empty Nest Couples Senior Couples Not In Work Force African American Asian Non-Caucasian Your Most Important shoppers • • • • HHLD Income $40 K+ Female Head Age Under 35 Female Head Age 65+ 2 Member Household 3 – 4 Member Household 5+ member Household Affluent Suburban Spreads Younger Bustling Families Empty Nest Couples Senior Couples Not In Work Force African American Asian Non-Caucasian Heavy Shoppers represent approximately 82% of total military volume U. S. Retailing & Consumer Trends 21 October 2021 Page 52 Confidential & Proprietary Copyright © 2008 The Nielsen Company

Who is the Military Shopper? Demographics of the average Military Shopper • • • HHLD Income $40 K+ Female Head Age 55+ Affluent Suburban Spreads Younger Bustling Families Empty Nest Couples Senior Couples Not In Work Force African American Asian Non-Caucasian Demographics of LIGHT Military Shopper • • HHLD Income $50 K - $99 k Female Head Age 65+ Modest Working Towns Senior Couples Not In Work Force African American Asian Non-Caucasian Light “occasional” shoppers Light Shoppers represent approximately 18% of total military volume U. S. Retailing & Consumer Trends 21 October 2021 Page 53 Confidential & Proprietary Copyright © 2008 The Nielsen Company