Santiago Solutions Group will show how to build a Total Market growth plan that is fueled by Hispanics & Millennials insights.

1. www.SantiagoSolutionsGroup.com • P: 818.736.5661
Driving Total Market Growth for
Manufacturers and Retailers
Building a Plan Fueled by Hispanics & Millennials
August 15, 2013
Presented by:
Carlos Santiago
President & Chief Strategist

2. Unlocking sources of Total Market
growth
2
Consumer
Dynamics
Connectors
Nuances
Company
Core
What Business is Co in?
Who Co competes with?
Ingredients, Production,
Packaging, Channels
Accelerated
Growth Segments
Best Prospects
Total Market
Growth

3. Nuance Nuance
GREEN BEAN
CASSEROLE
MENUDO
3
Family Dinner
Refried Beans &
Tortilla Chips
CONNECTORS
Total Market growth hinges on “Double Plays”
Key to unearth ‘Connectors’ –convergence of Hispanic, Millennials &
NH consumer dynamics, aligned with company core, that accelerate
profitable growth

4. Unearthing Connectors & Nuances
4

5. U.S. Palate Embraces Latin Food
Chinese
Italian
Mexican
Seafood
Steakhouse
40%
18%
29%
16%
16%
40%
21%
33%
15%
18%
Out-of-Home Eating Incidence
by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the
country, #1 West of Mississippi
2005 2012 2017
$5.4
$8.2
$10.7
Hispanic Food & Beverages Market
Size in US
Source: Hispanic Food & Beverage in the US 5th Edition
5
Source: SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6%

6. Evolving Palate Expands Share of
Plate Opportunity-Challenge
Bread/Pasta/Rice
Potato Chips &
Dip
Red Beans
Quinoa Couscous
Pita & Hummus Tortilla Chips &
Guacamole
Black Pinto Garbanzo
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7. Traditional Ingredients Evolve
Traditional
Pork
Pozole
Chili
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Veggie
Pozole de
Frijol
Quinoa with
Black Beans
and Hominy
Bean and
Hominy
Potpie
Hominy
Bean Salad
Hominy Chili
with Beans
Contemporary-Traditional
• Lighter
• Healthier
• Quick one-dish
• Fun

8. .
8
Video
Home-cooking & Family dinner.
Need for variety & Openness to
new recipe ideas.

9. Healthy Eating Is Important To All
• A “Healthy” dinner is most important for 1st Generation Hispanics
• Significantly higher than 2nd generation Hispanics and NH White
More home-cooking, Less Meat, More Grains
and Beans
Total
Market
82%
WNH
79%
Hisp 1st
Gen
90%
Hisp 2nd
Gen
80%
Millennial
82%
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source: Source: SSG-TQF Proprietary research Jan/Feb 2013
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10. 6%
6%
5%
23%
21%
Total…
WNH
Hispanic
Millennial
Mill M/C
Organic Buyers CAGR
Organic Is Accelerating
Perceptions
 Healthier, grown naturally
 No pesticides, additives, chemicals
 Good for workers in the field
 Watchful of Price/Value relationship
10Source: SSG Analysis of Gfk-MRI, Spring 2006 – Fall 2012
Millennial & Multicultural Millennial fueling
growth rate; Hispanic follows closely

11. Latinas are Most Open to
Purchasing New Convenience
Packaging Forms
 Shortcuts are OK, provided…
 Quality & taste
 No one can tell
 For “emergencies”
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Likelihood to Purchase New
Convenient Product – Top2 Boxes
Total
Market
57%
WNH
51%
Hispanic
1st Gen
65% Hispanic
2nd Gen
59%
Millennial
53%
Source: Source: SSG-TQF Proprietary research Jan/Feb 2013

12. Private Label Continues to Grow
From Pre- Recession Levels
The base of Hispanic Food PL
buyers is increasing 3x faster
than WNH
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PL Buyer Base CAGR
Buyer Incidence of Food Private
Label By Segment
All incidences have increased
remarkably
Source: SSG Analysis of Gfk-MRI, Spring 2006 – Fall 2012
• Millennial PL Food buyer base has exploded due to
segment size increase as well as incidence increase
• 3 in 4 consumers believe Private Label Products Have
Improved in the Past Few Years*
51%
55%
43%
48%
39%
65%
70%
56%
61%
49%
Total Market White NH Hisp Millennial M/C Mill
Pre-Recession Post-Recession
1.7% 1.3%
4.1%
22.1%
Total WhiteNH Hispanic Mill

13. 13
.
Video
Healthy eating.
Convenience.

14. Strategic Implications
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15. Leverage Connectors While Tailoring
to Pertinent Nuances
CONNECTORS
 Dinner means family gatherings
 Consumers thinking/planning
meals in terms of recipes &
experiences not isolated
ingredients
 Rising popularity of Mexican/Pan-
Hispanic cuisine
 Healthier lives from healthier
eating
 Convenience trumps price;
Quality trumps convenience
 Trust for brands is high, yet trust
for PL has broadened
NUANCES
 Meal variety/ingredient evolution at
different paces and expanses, i.e.:
 Hispanic HH - Kids drive
experimentation …pozole to
minestrone soup
 NH HH – rice to Quinoa
 Category competition softer among
Hispanics
 Role of dinner is revered by all but
more sacred to 1st generation
 1st Gen Hispanics look for
Convenience but call it “emergency”
 Hispanics lag a bit behind
Millennials & Non-Hispanics in PL,
but growing faster
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16. Strategic Implications for Brands
Exploring consumer dynamics’ & alignment with
the company core guide strategic anchors
• Connectors that may unearth ‘Double Plays’
– Powerful insights in-common across current & most likely
adopters
• Nuances that will strengthen the context of the
communications and promotions
– Increased Brand relevance and resonance
• Sources of incremental growth that can realistically
lift the historic growth rate
– Value added innovation
– Adjacencies: Brand cross-sell, expanded occasions, new
forms, recipes, packaging, expanded channels, leveraged
capabilities
• Ways to further differentiate the brand
– Rational benefits –i.e.: convenience
– Emotional reward –i.e.: more love & time for kids
– Spiritual reward—i.e.: social impact
• More precise target niches of most likely adopters
geo-targeted promos
- i.e.: Upscale Hispanics, healthy Millennials…
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Capture the Biggest Opportunity Consumers Among
Fastest Growth Segments

17. Potential Size of Prize
Consumer Dynamics & Core-Adjacencies Analysis
Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr Opp
Model
Adjacencies Incr Opp Model
+9%
4%
1.8%
• Top growth potential acts on
most aligned double-plays
within redefined core -yields
+9% Total Market CAGR lift
over current trajectory (BAU)
• Moderate growth scenario
better leverages connectors &
nuances in marketing
strategies lifting growth rate by
4% vs. BAU
• Business As Usual, unchanged
trajectory, yielding +2%
annual increase
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Double
Plays
Sample

18. 18
$0.36
$0.56
$0.22
$0.13
$0.18
$0.22
$0.06
$0.10
$0.21
$0.50
$0.88
$0.45
$0.25
$0.30 $0.27
$0.13 $0.16
$0.11
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(↑)
TV (↑) Print (↑) Mobile
(↑)
Promo (↑)Trade (↑) Internet (↓)Total
Marketing (↑)
NH HISP
Total
Media (↑)
NH HISP
Recalibrating Marketing Effectiveness (ROI)
Enhances overall Total Market growth
Assessing what marketing vehicles, messages, promotions drive Total
Market gains and which are less effective to optimize overall ROI
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Sample SSG Market Mix Analysis

19. Strategic Implications for Retailers
• Category Management
– Promote innovation
• New categories
• New brands
• New products
• Incite Trial
– Offer sampling
– Provide easy full meal recipes of:
• Trendy dishes
• New uses for “old” ingredients
– Promote value-add products with
price-conscious consumers
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20. Thank You
Follow us Online
@Carlos_SSG
@Santiago_Group
LINKEDIN
Moderator
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Bessie
Ramírez
Partner
Santiago
Solutions Group
Econometrics
Research, Analytics,
Strategy & Growth
ADD ICONS FOR
TWEETER/LINKEDIN
NEWSLETTER SUBSCRIPTION

21. Teasdale Quality Foods
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• A portfolio company of Palladium Equity Partners
• Private Equity group of particular expertise in food companies well
positioned for growth in the Hispanic market
• In business for over 70 years, TQF is a leading manufacturer of
authentic canned dry pack beans, dehydrated beans and hominy
• Offers a vast array of products to service key National
Supermarket Chains, Hispanic Independent Retailers, major
Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice

22. Save Mart Supermarkets
• Founded in 1952
• 226 retail locations under
the Save Mart, Lucky,
S-Mart Foods, FoodMaxx,
and Maxx Value Foods
• Operates in Northern
California and Nevada
• 17,300 associates
• $4.3B in annual sales
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Box Store
Conventional
Conventional

23. Panel of Experts
Alberto
Bandera
Chief Executive
Officer
Beans & Hominy
Mfg: Branded,
Private Label &
Food Service
Carlos
Santiago
President & Chief
Strategist
Consulting: Econo-
metrics Research,
Analytics, Strategy
& Growth
Implementation
Chris
Vasconcellos
Senior Director of
Center Store
Retail: Conventional
Market, Box Store &
Limited Assortment
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