Netherlands 1/3

MILAN JULY 2010 - CROSS FERTILIZATION INTERNATIONAL LAB
“SPOTTING & SHARING KEY ACCOUNT MANAGEMENT BEST IDEAS & PRACTICES”

OUR MARKET
The Netherlands

MILAN JUlY 2010 - CROSS FERTILIZATION INTERNATIONAL LAB

OUR MARKET IN FIGURES

MILAN JUNE 2010 - CROSS FERTILIZATION INTERNATIONAL LAB

Highlights Holland and Belgium
• 2009 16.5 mio people
• High density: 489 people per square KM Spain: 92 and Italy: 197
• 7,4 mio households (Avg size per hh: 2.23
NL • Growing number of 1 and 2 person hh (share 2009: 67%)
• Growing number of people of 65+
(share 2009: 15,0% and 2020: 20%)
• 45% of the population lives in the Western part of Holland.

• 2009: 11 mio people
• High density: 347 people per square KM
• 4.5 mio households (avg size per 2,44)
• Growing number of 1 and 2 person hh
• Growing number of people of 65+
(share 2009: 23% and 2020: 27%)
• 3 languages: Dutch, France and German
B • 3 regions:
1. VLAANDEREN 57,9 %
2. BRUSSEL 9,6 %
3. WALLONIE 32,5 %


Economic situation

HOLLAND BELGIUM

Economic Growth • Economic decline in 2009 -4% • Economic decline in 2009 -5%
• First Quarter of 2010 small increase • First Quarter of 2010 increase 1%
• Expectation 2010: +1.25%
• Expectation 2011: +1.75%

Inflation • Inflation is low, 1% • Inflation is low, 1%

Consumer Confidence • Consumer Confidence -20 • Consumer Confidence -18
(in 2010 going down again, because of uncertainty) (in 2010 going up)
• Unemployment Rate is going up. • Unemployment Rate is going up.
Dec 2009: 5.6% Dec 2009: 5.0%
Est 2010: 6.0% Est 2010: 6.5%


High growth rates for the supermarket branche since 2005. Growth 2009 3.4% to 31.1 billion
Euros. Prognosis for 2010 only +1.5%

Turnover Supermarkets since 2003 in billion euros
The Netherlands less spending in Food
Price war service
35

31,1 31,5
30,0
30 28,3
27,2 * 31.7
26,1 26,1 26,2
+ 5.4%
25

20
+1.5%
+3.4%
15
+6.2%
+4.0%
10 +3.9%
+0.1% +0.2%
5
prognosis

0

2003 2004 2005 2006 2007 2008 2009 2010
*based on 53 weeks


Number of supermarkets quite stable. 2009: 4804 outlets. Growth for bigger stores, but
number of very big supermarkets is limited and stable (only 49 stores of 2500 square M +)


Price war – fight for the consumer


MOST RELEVANT MARKET COMPETITORS
Dutch retail landscape concentrated in 3 buying organisations. Albert Heijn is market
Leader with 32.8% market share and still growing. Superunie has several regional
Retailers, share somewhat under pressure. Bijeen is a new organisation with retailers
Jumbo, Super de Boer and C1000.
Number of stores
2008 2009
Albert Heijn 718 783
Superunie 1835 1820
Bijeen 870 794
Aldi 445 463 Others; 0,8
Lidl 300 317
Bijeen; 23,1

Albert Heijn; 32,8

Superunie; 29,6 Discounters (Aldi and Lidl);
13,7

8,3% Aldi but 0,5% in decline
5,4% Lidl


Albert Heijn

•AH supermarkets
•AH XL
•AH to go
•AH Webshop
32,8%

MARKET LEADER


BIJEEN

23.1%

11.7 % 5.1 % 6.3 %


Super de Boer is bought by Jumbo in 2009. The stores will be splitted in new Jumbo
stores, C1000 stores and some will be sold to other retailers.

+ app. 80 shops

+ app. 180 shops

301 Stores
Turnover1.8 mln per store
+ app. 40 shops


Superunie members

Market shares SU retailers % - year 2009
Food Total NL - Nielsen Food Index
29,6 %

Plus; 6,0
Poiesz; 0,9

Sligro Food Group; 2,6
Jan Linders; 1,0

Spar; 2,3
Detailconsult (excl. Deka); 4,2

Vomar; 1,7

Hoogvliet; 1,9

Deen; 1,9 Overige leden ; 4,7

Coop; 2,4


Belgium
Spar Retail 2,7%
Champion Mestdagh
2,1%
Louis Delhaize Group Aldi 11,3%
5,7%
Alvo 1,2%
Lidl 4,7%
Intermaché 1,6%

Carrefour 25,8%
Delhaize 21,6%

Colruyt 23,5%


Promo Pressure is going up.
17.5% of the turnover in supermarkets (excl discounters) is done with promotion

% Promoted value - Food open markets
19.5

18.5

17.5

16.5

15.5

14.5

13.5
Previous year Current year
12.5
P6 09 P7 09 P8 09 P9 09 P10 09 P11 09 P12 09 P13 09 P1 10 P2 10 P3 10 P4 10 P5 10

% Promoted value - Rolling MAT
19.0
18.5
18.0 17.3 17.3 17.4 17.5
17.0 17.1 17.2
17.5
16.7 16.9
17.0
16.2 16.4
16.5 16.0
16.0
15.6
15.5
15.0
14.5
P6 09 P7 09 P8 09 P9 09 P10 09 P11 09 P12 09 P13 09 P1 10 P2 10 P3 10 P4 10 P5 10

Food open markets = Food Scantrack excl. Aldi&Lidl; promoted value in total measured groups


Share Pl is going up every month. It is already 31.5%

Private label value share - rolling MAT
Food open markets - share in all measured groups excl. Fresh variable weight
31.5

31.1
31.2
31.2
31.3
Retailers have a focus on
31.0
31.0
30.8 30.8
30.8 30.9
30.9
31.0
Private Labels. To improve
30.7 P5
30.5 30.5
30.7
31.5
the marginality and to
30.5

30.2
30.3
30.4
distinguish themselves
30.1

30.0
29.9
30.0
from the competition they
Index aantal items per winkel E.M. vs. A.O., rolling MAT
120.0 keep adding new PL skus.
116
29.5
114 115 115
115.0 113 114
112 113
111 112
111
29.0 110
110
wk 37 08 wk 45 08 wk 01 09 wk 09 09 wk 17 09 wk 25 09 wk 33 09 wk 41 09110.0 49 09
wk wk 04 10 wk 12 10 109
108
107
Share base includes categories with no PL position 106 107
106
104 105
105.0 104
102 103 103
101 101 102
100 100
100.0 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101
101 101 101 101 101
100 100 100

95.0

90.0
wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk wk
08 12 16 20 24 28 32 36 40 44 48 52 04 08 12 16 20 24 28 32 36 40 44 48 52 04 08 12 16 20
08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10
E.M. - gem. # items per winkel per wk AO - gem. # items per winkel per wk


Consumers say lower prices and attractive promotions are a reason to switch stores.

70%
Main reasons to switch to another store

59%
60%
54%

50%

40%
40%

30%
30%

20%

10% 7%

0%

Lower prices Attractive promotions Location Other assortment Other

Total NL (n = 1782)
Source: Nielsen Consumer Research, March 2010, N = 1782


Effects of the crisis

• Growth supermarkets is getting lower
– 2010 until May only 0.4% growth
• Promo pressure is going up from 15.1% in 2008 to 17.5% Mat P5 2010 and
will grow further
– Promo pressure 100 main A brands is even over 30%
– More 50% discount promotions (1+1)
– Supermarket growth 2009 only because of extra promo sales.
• Consumer are shopping around and visit more retailers for the best
promotions
• Lidl is gaining share by attracting more consumers to their stores (Aldi is
losing share)
• PL share keeps growing from 30.3% in 2008 to 31.5% Mat P5 2010
• Growth trend in categories: back to basic and convenience.


OUR COMPANY IN FIGURES


Geschiedenis

• GranFood was established in 1989 by the
Management and Star

• GranFood is specialized in:
– Import
– Marketing
– Sales
– Distribution
– International A-Brands

• GranFood Turnover € 58 mio (2009).


Nr of brand 1989-2009

Less brands  More focus

70 58
60 50 52 58
50 47 46 48 48
39
40 35
30
30 23 25 29
20 14 15 16 18 19
8 12
10 15 15 16 15 13 13 12 12 12 13 11 11 11
0 12 13 15
2 56 7 8
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
# brands Turnover

MILAN JUNE 2010 -- CROSS FERTILIZATION INTERNATIONAL LAB
MILAN JUlY 2010 CROSS FERTILIZATION INTERNATIONAL LAB

Supply Chain

– Shelf Stable and Frozen
– Delivery Performance 99,3%
– Fast and flexibel => 24 hours delivery (order today, delivery tomorrow)
– Several logistical best practices are implemented, e.g. EDI, X-dock
– Electronic catalogues (GS1 DAS), Shipment tracking and tracing (GPS)
– Single Point of Contact / Customer Service
– 1 Warehouse for the Benelux (near Den Haag; 120 km from BE)
– Capacity:
• 9.500 pallet places
• 11 suppliers
• 70.000 full pallets per year
• 200 deliveries per week
• 460 tons per week
– Channels => foodservice, wholesale and retail
– Industribution Trophy for best Logistical performance


Market share position
GranFood brands in NL
• Italian Category (Grand’Italia)
– Nr 1 in sauces FTN overall promo
– Nr 1 in pasta
pressure is going up from
• Wet soups (Grand’Italia) 15.1% in 2008 to 17.5% Mat
– New position in wet soups in pouch P5 2010
segment

• Frozen (Grand’Italia) Promotiedruk (obv volume) YTD P6.10
– New position in frozen pizza
Grand'Italia Pasta 31
Grand'Italia Pastasauzen 35
• Juice Drinks (Ocean Spray)
Grand'Italia Zuppa 47
– Unique position in juice shelf
Grand'Italia Pizza 63
• Wet potato sauces (Campbell Aardappel
Anders) Ocean Spray juices 18
– Nr 1
Campbell's Aardappel Anders 21
Campbell's SuperNoodles 8
• Noodles (Campbell Super Noodles)
– Nr 2

• Saitaku (Japanese)
– Nr 1 * Nielsen data 2009


OUR COMPANY IN FIGURES

Turnover index index
2009 2008-2009 1 juli 2010
Grand'Italia € 39.698.384 112 108
Star € 706.031 93 97
Ocean Spray € 8.019.898 114 99
Campbell € 3.350.099 100 97
Saitaku € 1.128.299 192 143
Other Brands € 2.524.218 29 136

B2B € 1.750.618 94 88
108 TOT


The Grand’Italia brand is growing by 20.7% in units. Growth comes from all segments.
Lower growth in value due to promo pressure and price war.

Grand'Italia - Verpakkingen x 1000 en Groei in %
Food Totaal
Growth Growth
40.000 units Value
+20,7% 20,7 11,0
34.633
35.000
2.438 10,4 11,3
28.704 1.096
30.000 825 32,0 21.8
26.676
2.208
25.000 1.926 625 9.875 17,4 8,7
-4
8.020 8.414
20.000

15.000

10.000 20.400 16,9 2,1
16.726 17.457
5.000

-
MAT P5 2008 MAT P5 2009 MAT P5 2010

Verpakkingen x 1000

Pasta Pastasaus Soep Pizza Overig


Pasta Sauces Category: 42.5 mio units and 10.7% growth. Grand’Italia has 23.3% share and is
market leader and still gaining share.

Total pasta sauces ambient
Units x 1000 and share in units
Total Food The Netherlands
45.000 Growth in % 42.464
10,7
40.000 38.353 %
8.813 20,8
35.067
9,0%
35.000
8.082 21,1
6.981 19,9 15,6
30.000 6.608
-0,8%
6.663 17,4
25.000 6.842 19,5
9.338 22,0
20.000 14,4
8.162 21,3
6.948 19,8 %
15.000
11,3% 7.830 18,4
6.276 7.032 18,3
10.000 17,9

5.000
8.020 8.414 17,4% 9.875 23,3
22,9 21,9
-
MAT P5 2008 MAT P5 2009 MAT P5 2010

Grand'Italia Bertolli Private Labels Heinz Others


Pasta Sauces Category: Grand’Italia growth from all segments, but pesto and Sugocasa have
the most positive figures.

Total Grand'Italia pasta sauces
Units x 1000
12.000
Growth in %
17,4 9.875
10.000 % 371
8.414
8.020
8.000
193 2.643
165
25,2
2.111 %
2.147
6.000
2.334
2,0%
2.289
2.186
4.000
12,3% 2.821
2.303 2.511
2.000

1.220 1.310 30,1% 1.705
-
MAT P5 2008 MAT P5 2009 MAT P5 2010

Pesto 260 425 Sugocasa Others


Pasta Sauces Category – trends&brands

• Penetration wet sauces is 53% and growing.
• Trend: people switch from dry mixes to wet sauces
• Grand’Italia is the premium Italian brand
• Bertolli is also profiling as a Italian brand.
• Bertolli’s main success is the introduction of pasta
sauce in a pouch.
• Heinz has more ‘Dutch’ pasta sauces. Heinz has been
losing share and buyers for years.
• Private Label keeps growing.


Pasta Category; 87.4 mio units and 3.8% growth.
Grand’Italia is growing faster then the market and is the main A-brand with 23.3% share.

Total pasta ambient
Units x 1000 and share in units
100.000 Growth in %

3,8% 87.426
90.000 84.192
78.773
80.000
2,3% 21.065 24,1
20.585 24,5
70.000 18.054 22,9

60.000

31,9 28.102 32,1
50.000
23.785 30,2 26.849 4,7%

40.000

30.000 -7,5% 17.859 20,4
20.208 19.301 22,9
25,7
20.000

10.000
16.726 17.457 20,7 20.400 23,3
21,2 16,9%
-
MAT P5 2008 MAT P5 2009 MAT P5 2010

Grand'Italia Honig Private Labels Others


Pasta Category - trends&brands

• Pasta penetration 85%. Growth has to come from a
higher frequency.
• In 1 year Grand’Italia gained 450.000 new consumers
• Honig is a Dutch brand with soft wheat products.
Honig has been under pressure for years, because
consumers switch to Durum weath.
• Private Label has a high share within pasta,


Grand’Italia ZUPPA


Wet Soups Category
Grand’Italia ZUPPA
Total Soups Pouch Non Portion
Total Soups Pouch Non Portion
Units x 1000 and shareshare
Units x 1000 and in units
30.000 Growth in %
17,7
%
24.324 • Pouch is growing fast, can is stable.
25.000

20.669
9,0% 1.466 6,0 • Grand’Italia pouch since mid 2008.
20.000 18.417 370
1,8
• Rotation up since tv campaign.
305 1,7
• Unox is the main brand.
15.000
14.066
16.833 69,2
• Unox lost share, but is pushing atl
68,1 19,7
14.021 76,1 % and btl.
10.000
• Knorr 2nd Unilever brand in pouch
5.000 -4,1% 17,5 • Knorr under pressure.
4.450 21,5 4.266
3.187 17,3
1.159 5,6
-19,4%
934
3,8 • Unilever will introduce Bertolli as a
899 625 825
- 4 4,9
3,0
32,0% 3,4 3th brand in pouch.
MAT P5 2008 MAT P5 2009 MAT P5 2010
• Private Labels stable
Grand Italia Knorr Private Label Unox Others


Grand’Italia Pizza since wk 40 -2009

NEW from wk 30 2010:


Pizza
Frozen Pizza - Food Total NL Promo
Value € x mln - Units x mln - Promo pressure % pressure % MAT P5 10
total Pizza 24
-0.9% Dr. Oetker 25
200 186 185 PL 19
180
+1% Wagner 42
22 22 Grand'Italia 70
160 +3% 2
21 21
140 -5%
25
24 +4.0%
120

100 87 90
-1%
10 10
80
-3% +7% 1
11
10
60
-4% 14
119 115 15

40
+4%
52 54
20

-
MAT09 (wk 21 09) MAT10 (wk 20 10) MAT09 (wk 21 09) MAT10 (wk 20 10)
Omzet x Mln Verp. x Mln

.DR.OETKER DR.OETKER .PRIVATE LABEL .WAGNER WAGNER .GRANFOOD GRAND_ITALIA OVERIG


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