2009 Grocery Store SuperStudy Plugging into the Profit Power of Eggs

1. 2009 Grocery Store SuperStudy Plugging into the Profit Power of Eggs December 2009

2. Dairy and Egg Financial Impact

3. Financial Contributions – Willard Bishop SuperStudy™ 2009 • Benefits • Benchmarking visibility in to category profitability • Enables keener category management and retail analysis by factoring financial contributions in to recommendations; Yields more informed decision making by incorporating bottom line insights • Definition • Comprehensive total-store analysis that evaluates every item and its financial performance • Sales & space; Profitability & financial contribution • SKU performance aggregated in to department, category and subcategory reporting

4. Financial Contributions – Willard Bishop SuperStudy™ 2009 • Methodology • 52 weeks of retailer data: sales, cost of goods, cash discounts • Retailer cost-to-serve (warehouse, transportation, and store activity-based costs) • Store visits to collect space and product handling practices (time study) • Product information including case packs, dimensions and merchandising space

5. Key Concepts • The SuperStudy P&L • The fundamental result is an industry benchmark profit & loss statement. All measures and emerging best practice analytics tie back to these core metrics: • Sales • subtract Cost of Goods • add Trade & Terms • equals Adjusted Gross Profit (AGP) • subtract Activity Based Costs (ABCs) • equals True Profit (TP) • Leverage insights against the profitability, or real cash contribution, of sales

6. Dairy Department Overview • The Dairy department contributes disproportionately to overall profits Top 5 Grocery Departments (Weekly Sales) Dairy Share of Total Store 5X its share of space! 3X its share of space Source: Willard Bishop 2009 Grocery SuperStudy™

7. Dairy Category Overview • Eggs yield the highest True Margin of all Dairy categories, a result of high turns, efficient use of space and low costs-to-serve Eggs Share of Dairy 1.8X its share of space! Source: Willard Bishop 2009 Grocery SuperStudy™

8. Sales • Average Weekly Sales Dollars Per SKU • Very effective/efficient use of variety and assortment Source: Willard Bishop 2009 Grocery SuperStudy™

9. Sales • Average Weekly Unit Sales Per SKU Source: Willard Bishop 2009 Grocery SuperStudy™

10. Sales 81% of EGG SKUs are Making Money! Source: Willard Bishop 2009 Grocery SuperStudy™

11. Profitability • Weekly Profit Per Square Feet • Overall Egg space delivers solid profit contributions in both adjusted gross and true profits for the Dairy Department Source: Willard Bishop 2009 Grocery SuperStudy™

12. Return on Inventory Investment • True Profit Return on Inventory Dollar • Annual True Profit (gross profit plus trade spending less ABCs) per dollar of inventory tied up on the shelf Source: Willard Bishop 2009 Grocery SuperStudy™

13. Shelf Performance • High Turns Translates to Positive Cash Flow • Great balance in low day of supply and high turns to drive productivity (a product can’t make money just sitting on the shelf) Days of Supply Average Turns per Year Source: Willard Bishop 2009 Grocery SuperStudy™

14. Space Performance Average Weekly Sales Dollars/Sq. Ft. Facing Source: Willard Bishop 2009 Grocery SuperStudy™

15. Space Performance Average Weekly Profit Dollars/Sq. Ft. Facing Source: Willard Bishop 2009 Grocery SuperStudy™

16. Space Performance Profit Contribution Relative to Space and Sales Eggs represent 7% of Dairy space but 11% of True Profits! Source: Willard Bishop 2009 Grocery SuperStudy™

17. Per Unit Performance High True Profit per Unit Sold Weekly Movement True Profit per Unit

18. The incredible edible egg™ • Summary of Egg Insights • Strong Sales and Trends • Versatile and Healthy are Core Consumer Benefits • Extremely Profitable; Fast Turns; Space that Performs