DOMESTIC AQUACULTURE A Darden Restaurant Perspective

1. DOMESTIC AQUACULTUREA Darden Restaurant Perspective April 16, 2008 2008 USDA ARS/CSREESAquaculture Stakeholder Workshop

2. Why Domestic Aquaculture • Darden Restaurants is committed to growth • Global demand for seafood will grow • Wild capture stable • Responsible aquaculture must fill the gap • Domestic aquaculture should play a greater role • 80% of the seafood consumed in the U.S.is imported

3. Darden Overview • Six concepts: • Largest publicly traded, owned and operated full-servicedining restaurant company in world • Over 1700 restaurants in U.S., Canada and Puerto Rico • 170,000 employees • 400 million guests per year • $6.7 billion in annual sales

4. We Are a Global Seafood Purchaser • Darden sources seafood from over 30 countries • We are unique in the restaurant business -- Seafood Center of Excellence • Food safety is our number one priority • Our seafood purchases are roughly $900 Million, aquaculture representing 60%

5. Darden Brands

6. '50 '55 '60 '65 '70 '75 '80 '85 '90 '95 '00 '04 Global Wild Harvest Supply Production Millions of MT 100 80 60 40 20 0 Source: FAO FishStat

7. World Aquaculture ProductionTotal Growth Rate Growth has slowed from over16% in the early 1990's toaround 5% per year Source: FAO Aquaculture Production, by FAOSTAT Group,

8. Sustainable Seafood • Darden being a global purchaser of seafood • is committed to sustainable wild-capture fisheries • is committed to sustainable aquaculture • recognizes there is a need for sustainable fisheries and aquaculture to meet global protein needs

9. Demand and Supply Gap To Maintain Per Capita Status Quo (16.5 lbs. ) Requires Approximately400,000 Additional Metric Tons (edible wt.) by 2025 Millions of MT Required Production 400,000 MT deficitrequires an 18%increase in supply Current Production Data from U.S. Census and FAO Assumes constant seafood consumption of 7.48kg/capita and population growth of 0.9% per annum (US Census)

10. U.S. Restaurant Industry – Demand Growth 945,000 Restaurants Will Hit $558.3 Billion in Sales in 2008 Restaurant Industry Sales(Billions of Current Dollars) 67% Increasein less than 10 years Source: National Restaurant Association 2008 Restaurant Industry Forecast

11. Darden’s Transition with Evolutionin Seafood Industry

12. Aquaculture Drivers • Supply – year round accessibility • Quality Product • Variety • Price Consistency • Traceability

13. Power of Domestic Aquaculture Fresh Product Regional Markets Variety Short supply chain Strict environmental conditions

14. Darden’s Recommended List of Aquaculture Species

15. Darden’s Recommended List of Aquaculture Species Tier One Species • Redfish • Sea Trout • Red Snapper • Pompano • Halibut • Tuna • Grouper • Lobster • Cod • Dungeness Crab 15

16. Darden’s Recommended List of Aquaculture Species Tier One Species Tier Two Species • Redfish • Sea Trout • Red Snapper • Pompano • Halibut • Tuna • Grouper • Lobster • Cod • Dungeness Crab • Mahi Mahi • Bay scallops • Oysters • Clams • Blue/Swimming Crabs • Mussels 16

17. Darden’s Recommended List of Aquaculture Species Tier One Species Tier Two Species Tier Three Species • Redfish • Sea Trout • Red Snapper • Pompano • Halibut • Tuna • Grouper • Lobster • Cod • Dungeness Crab • Mahi Mahi • Bay scallops • Oysters • Clams • Blue/Swimming Crabs • Mussels • Cobia • Black Drum • Trippletail • Snook • Amberjack • Hogfish • Sea Bream • Other Flatfish • Conch 17

18. Closing Thoughts • Be guided by what the customer wants • Take advantage of your location – regional production • Customer –Producer-Researcher partnership • Regulatory climate conducive to aquaculture • Leverage existing US infrastructure

19. Vision for Domestic Aquaculture • Profitable/Attracts Capital • Opportunities for Coastal and Farming Communities • Gold Standard for Sustainable Aquaculture • Global Technology Leader