food for thought - william blair & company · food for thought 2 case study: smucker’s $6...

May 2015

Food for Thought Overview, Analysis, and Trends in the Food and Food Retailing Industries

William Blair

Food For Thought Table of Contents

Table of Contents Case Study: Smucker’s $6 Billion Acquisition of Big Heart Pet Brands ............................................................................................................................ 1 Selected Monthly M&A Activity – April.......................................................................................................................................................................................... 3 Noteworthy M&A Activity – LTM ..................................................................................................................................................................................................... 8 Historical M&A Trends in the Food and Food Retailing Industries ................................................................................................................................. 11 Volume Trends .................................................................................................................................................................................................................................. 11 Participant Trends ........................................................................................................................................................................................................................... 12 Valuation Trends .............................................................................................................................................................................................................................. 13 Public Company Trading Statistics ................................................................................................................................................................................................ 14 Food Production Companies ....................................................................................................................................................................................................... 14 Food Ingredients Companies ...................................................................................................................................................................................................... 15 Beverage Production Companies .............................................................................................................................................................................................. 15 Food Retail Companies .................................................................................................................................................................................................................. 16 Convenience Store Companies ................................................................................................................................................................................................... 16 Same-Store Growth – Food & Convenience Retail .................................................................................................................................................................. 17 U.S. Public Equity Financing Summary – LTM .......................................................................................................................................................................... 18 IPOs ........................................................................................................................................................................................................................................................ 18 Follow-Ons .......................................................................................................................................................................................................................................... 18 Selected Upcoming Industry Events ............................................................................................................................................................................................. 19 General Market Update....................................................................................................................................................................................................................... 21 Domestic M&A Market Summary ................................................................................................................................................................................................... 22 U.S. Activity Trends ......................................................................................................................................................................................................................... 22 U.S. Valuation Trends ..................................................................................................................................................................................................................... 23 U.S. Equity Capital Markets Summary .......................................................................................................................................................................................... 24 Debt Capital Markets Summary ...................................................................................................................................................................................................... 25 William Blair Food & Beverage and Food Convenience & Retail Investment Banking ........................................................................................... 26 Recent William Blair Consumer & Retail Transactions ........................................................................................................................................................ 28 William Blair Consumer & Retail Coverage ............................................................................................................................................................................... 29 Notes .......................................................................................................................................................................................................................................................... 30 Disclosures ............................................................................................................................................................................................................................................... 31

William Blair

Food For Thought Case Study: Smucker’s $6 Billion Acquisition of Big Heart Pet Brands 1

Case Study: Smucker’s $6 Billion Acquisition of Big Heart Pet Brands

As shoppers increasingly open up their wallets for their pets, acquiring Big Heart gives Smucker a strong presence in a fast-growing, center-of-the-store category.

Over the past two decades, The J.M. Smucker Company has executed on its strategy of owning leading center-of-the-store brands in North America by acquiring the Jif and Crisco brands in 2002, International Multifoods in 2004, and Folgers Coffee in 2008. For the next stage of Smucker’s growth, the company has gone to the dogs—and cats.

In February, Smucker announced that it was acquiring Big Heart Pet Brands for $6 billion. With brands such as Meow Mix®, Milk-Bone®, and Natural Balance® and $2.3 billion of sales, Big Heart ranks No. 1 in pet snacks, No. 2 in cat food, and No. 3 in dog food. The acquisition, which is the 10th transaction that William Blair & Company has completed for Smucker since 2001, immediately establishes Smucker as a leading player in one of the fastest-growing center-of-the-store categories in the consumer packaged goods industry.

Dogged Growth for Pet Food Industry With total U.S. sales of $22 billion in 2013 and a CAGR of 3.6% from 2008 to 2013, pet food is one of the fastest-growing CPG categories, according to Euromonitor(1). In particular, the $3 billion dog snacks market (for which Big Heart ranks #1), is growing over 6% annually. In addition to the overall size and growth of the market, pet food sales have proven to be surprisingly resilient during the past two recessions.

The acquisition of Big Heart has added pet food as a third platform for growth for Smucker’s portfolio. With the addition of the Big Heart brands, pet food is projected to account for approximately 30% of Smucker’s total sales.

Humanization of Pets Drives Premium Prices Smucker is committed to “helping to bring families together to share memorable meals and moments.” Increasingly in the United States, the definition of “family” includes a dog, cat, or other pet. A 2014 survey by Packaged Facts found that 83% of pet owners either strongly agree or somewhat agree with the statement, “I consider my pet(s) to be part of the family.”(2)

The “humanization” of pets is reflected in pet owners’ growing concern over the quality of what they feed their pets. The trends of natural ingredients, premium packaging, and foods that provide specific health benefits are shaping shoppers’ purchasing decisions—both for human food and pet food. This shift toward natural, organic, and other types of premium pet foods is strengthening the margin profiles of pet food manufactures. The emotional attachment to trusted brands and innovation has also led to modest and declining private label penetration in the category, much lower than traditional human food categories.

(1) Freshpet Inc., Form S-1. Filed with the SEC on September 12, 2014. (2) “Pet humanization and product premiumization.” Petfood Industry magazine, January 10, 2015.

Smucker's Projected Post-Merger Sales

The acquisition of Big Heart Pet Brands and its projected $2.3 billion in sales gives Smucker a strong presence in a fast-growing category and a third platform for growth.

83% Percentage of pet owners who consider their pet to be “part of the family”

42% Percentage of dog and cat food sales represented by “premium” products

14.6% Projected CAGR from 2014 to 2019 of “natural” pet food sales in the United States

Sources: Packaged Facts, “Pet Food in the U.S.” September 2014 and “November 2014 Pet Owner Survey” and Petfood Industry magazine.

$6,000,000,000

has acquired

Big Heart Pet Brands

March 2015

32%

30%

38%

Coffee

Pet Food

Peanut Butter, FruitSpreads, and Other Products

William Blair

Food For Thought 2 Case Study: Smucker’s $6 Billion Acquisition of Big Heart Pet Brands

About the Transaction Through the $6 billion acquisition, Big Heart shareholders received 17.9 million shares of Smucker common stock and $1.3 billion in cash. Smucker also assumed $2.6 billion of debt from Big Heart. The significant use of stock to complete the acquisition allowed Smucker to maintain its investment-grade credit rating. Smucker expects the acquisition to generate $200 million of annual synergies over the first three years.

Before the acquisition, Big Heart was owned by a consortium of investors led by funds affiliated with KKR & Co., Vestar Capital Partners, Centerview Capital, and AlpInvest Partners. Big Heart changed its name from Del Monte Corporation following the sale of its fruit, vegetable and other consumer foods portfolio in February 2014. Del Monte Corporation was taken private in 2011.

Since 2001, William Blair has completed 10 transactions for Smucker across debt capital and sell- and buy-side M&A advisory services. Over the span, Smucker’s market capitalization has increased from $670 million to more than $14 billion (as of April 27, 2015). In addition to the Big Heart acquisition, William Blair has advised Smucker on its most transformative transactions including the $731 million acquisition of the Jif and Crisco brands from Procter & Gamble in 2002, the $840 million acquisition of International Multifoods in 2004, and the $3.3 billion merger with P&G’s Folgers Coffee subsidiary in 2008.

Smucker is a proud example of William Blair’s commitment to developing and maintaining long term client relationships.

William Blair

Food For Thought Selected Monthly M&A Activity – April 3

Selected Monthly M&A Activity – April

Food & Beverage Producer Transactions

($ in millions)

Date Target (Unit Sold)/ Target Enterprise Enterprise Value/LTM

Announced Target Business Description Nation Buyer Value Sales EBITDA 04/30/15 Insight Beverages

Manufacturer of beverage products United States Kerry Group - - -

04/29/15 Alex & Comp (Spice Division) Manufacturer of spices and seasonings

Romania Fuchs Gewuerze - - -

04/29/15 Napier Brown Sugar Distributor of non-refined sugar in Europe

United Kingdom Tereos Participations $52.6 - -

04/28/15 Love Sugar and Dough Owner and operator of bakeries

India Private Investor - - -

04/28/15 Jules Destrooper Manufacturer of cakes and biscuits

Belgium GT & Co. - - -

04/27/15 The Pinny Farms Producer of milk

New Zealand Dakang $32.2 - -

04/27/15 Attitude Beer Manufacturer of beer

United States Harrison Vickers & Waterman

- - -

04/27/15 Tannis Trading Distributor of consumer food products

Canada Sysco Canada - - -

04/26/15 Conservas Garavilla (55%) Manufacturer and marketer of seafood

Spain Generale Conserve - - -

04/24/15 Nkunzi Milkyway Producer of processed milk

South Africa Clover Industries - - -

04/24/15 BH Fresh Food Distributor and importer of frozen meats

Singapore Premium Egg Products $7.4 - -

04/24/15 Morue France Cuisine Manufacturer and seller of ready-made meals

France Private Investor (Jerome Sany)

- - -

04/23/15 Anyksciu Vynas Manufacturer of alcoholic beverages

Lithuania Alita - - -

04/23/15 Pure Breed Poultry Co. (6.5%) Processor of poultry

Saudi Arabia Imran International $30.2 - -

04/23/15 Future Life Health Products Manufacturer of nutrition based food products including nutrition bars and cereal

South Africa Pioneer Food Group - - -

04/23/15 Paqui Manufacturer of tortillas and tortilla chips

United States SkinnyPop Popcorn - - -

04/22/15 Linxia Qingheyuan Halal Food Co. Processer and producer of meat products

China Beijing Shunxin Agriculture Co.

$266.9 - -

04/22/15 China Huishan Dairy Holdings (8.9%) Producer of milk and dairy products

China Champ Harvest $3,814.3 5.87x 12.0x

04/22/15 Rock N Roll Imports Marketer and distributor of alcoholic beverages

United States CME Realty $40.0 - -

04/22/15 Akcine Bendrove Anyksciu Vynas Producer and seller of alcoholic beverages

Lithuania ALITA - - -

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in April 2015 Sources: Dealogic and Capital IQ

William Blair

Food For Thought 4 Selected Monthly M&A Activity – April

Food & Beverage Producer Transactions (cont.)

($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/22/15 Zito Prehrambena Industrija

Manufacturer of flour, bread, pasta and sweets Slovenia Podravka $81.7 0.67x 7.5x

04/22/15 Prospect Enterprises (Seafood Division) Distributor and processor of seafood

United States Santa Monica Seafood Company

- - -

04/21/15 A-Treat Bottling Company Producer and seller of flavored soft-drinks

United States Private Investor - - -

04/21/15 Eaststarch (50%) Manufacturer of corn sweeteners and starches

Bulgaria Archer Daniels Midland Company

$516.9 - -

04/21/15 Inteka Manufacturer of tea and coffee

Latvia Gemaga - - -

04/21/15 Ceca Producer and distributor of coffee

Costa Rica Massimo Zanetti Beverage Group

- - -

04/21/15 United Dairy Power (Caboolture Cheese Business) Manufacturer of cheese

Australia Murray Goulburn - - -

04/20/15 Radenska Producer of bottled water and non-alcoholic beverages

Slovenia Kofola Spolka Akcyjna $70.7 - -

04/20/15 Iglo Foods Marketer and distributor of frozen food products in Europe

United Kingdom Nomad Holdings $5,683.6 3.52x 17.7x

04/20/15 Wuxi Zhentai Liquor Industry Co. Producer of wine

China Shanghai Jinfeng Wine Company

- - -

04/18/15 Dunhua Meilijian Dairy Co. Producer and marketer of milk powder

China Beingmate Baby & Child Food Co.

$29.0 1.53x -

04/18/15 Pelle & Lisa Producer of eggs

Sweden Norrlandsagg - - -

04/17/15 Barker Fruit Processors Manufacturer and supplier of juice, food preservatives, and bakery products

New Zealand ANDROS - - -

04/17/15 Xiamen Culiangwang Beverage Technology Company Producer of nutritional beverages

China Coca-Cola Beverages (Shanghai) Ltd.

$400.5 - -

04/17/15 Donghwa F&V Co. (50%) Wholesaler of fruits, vegetables and meat products

South Korea Consus Asset Management $55.1 - -

04/17/15 Mercator Pekarna Grosuplje Producer of bread and bakery products

Slovenia DON DON - - -

04/16/15 Koninklijke FrieslandCampina Producer of dairy products

Hungary Alfoldi Tej - - -

04/16/15 SATS Food (49%) Manufacturer and processer of meat

Singapore BRF $39.0 - -

04/16/15 Tomates de Miajadas Provider of diced tomatoes, tomato concentrate and related products

Spain Conservas Vegetales de Extremadura

- - -

04/16/15 Munax (25%) Producer of eggs

Finland Danaeg Products - - -

04/16/15 21LADY Co. Manufacturer and seller of confectionery products

Japan Ocean Wealth Crowd Limited

- - -

04/16/15 BFL Bakery Provider of pastry and baking products

Italy Puratos Group - - -


William Blair



($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/15/15 Ibaraki Nyugyo Co. (70%)

Manufacturer of dairy products Japan Hanshin Shuhan - - -

04/15/15 Preferred Brands International (70%) Manufacturer and distributor of specialty frozen foods

United States Kagome Co. $114.6 - -

04/15/15 Proof Drinks Producer and distributor of alcoholic beverages

United Kingdom MBG International Premium Brands

- - -

04/15/15 Saimaan Juomatehdas Provider of beer

Finland Micro Beverage - - -

04/15/15 Euphorium Bakery Owner and operator of bakeries

United Kingdom Tesco - - -

04/13/15 De Weide Blik Producer and distributor of fruits and vegetables

Belgium Greenyard Foods $457.2 - -

04/13/15 Pivovarna Lasko Producer and seller of beer, malt, and bottled water

Slovenia Heineken $499.2 1.85x 11.7x

04/13/15 Henry H. Ottens Manufacturing Co. Producer of food flavorings

United States International Flavors & Fragrances

- - -

04/13/15 Marco Polo Foods Producer of fresh and frozen sushi products

France Natsu Foods - - -

04/13/15 Greenyard Foods Processor of fruits, vegetables, and ready-to eat food products

Belgium Univeg Belgium; Peatinvest

- - -

04/13/15 Just Water International (Australian Business ) Provider of bottled water

Australia Waterlogic $8.4 - -

04/10/15 NaganoKen Rengo Seika Co. Wholesaler of fresh vegetables and fruits

Japan Chojirushi Holdings - - -

04/10/15 Naked Wines International Online retailer of wine and other alcoholic beverages

United Kingdom Majestic Wine $103.7 - -

04/10/15 Les Serres du St-Laurent Processer and distributor of tomatoes

Canada Serres Sagami - - -

04/10/15 Delpeyrat (Fresh Food Business Units) Producer of consumer food products

France Tallec - - -

04/09/15 Tresch Clerget Bottler and distributor of wine

France Les Grands Chais de France - - -

04/09/15 Chambord Co. Manufacturer and seller of confectionery, including cakes and cookies

Japan Suzuki Eikodo Co. - - -

04/08/15 Paulig (Industrial Flavoring Division) Producer of food flavorings and ingredients

Estonia Solina Group - - -

04/08/15 Capespan Group Supplier and wholesaler of fruit

South Africa Zeder Investments $212.4 0.34x -

04/07/15 Cocoaland Holdings Manufacturer of preserved foods and fruits

Malaysia EQT Partners $86.0 1.20x 11.1x

04/07/15 Kyuka Waters Provider of bottled water

United States Water Way Distributing Co. - - -

04/06/15 Agro-Alliance Company Producer of grains, rice, and packaged cereals

Russia Undisclosed Acquirer - - -


William Blair

Food For Thought 6 Selected Monthly M&A Activity – April


($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/06/15 Kencraft Inc.

Manufacturer of candy and confectionery United States BBX Capital Corp - - -

04/06/15 Bruce Foods (Hot Sauce Business) Producer and distributor of food products

United States Southeastern Mills Inc. - - -

04/03/15 Yuvan Long Life Manufacturer and retailer of herbal tea

India BVG India - - -

04/02/15 Grand Cru Importadora Distributor and importer of wines

Brazil Aqua Capital - - -

04/02/15 Plukon Food Group (75%) Producer and marketer of poultry meat

Netherlands De Heus Group; EW Group

$717.4 - -

04/02/15 United National Breweries (50%) Manufacturer and seller of beer

South Africa Diageo $72.0 - -

04/02/15 Kushalchand Sons Distributor of specialty food ingredients

India IMCD - - -

04/02/15 Grapes Investments Manufacturer of wine

Australia RG & RT Trott - - -

04/01/15 Sicilian Sun Limited Producer of food and beverage products

United States Firma Holdings - - -

04/01/15 Kamps Producer and seller of handmade bakery products in Germany

Germany Groupe Le Duff - - -

04/01/15 Mount Shivalik Breweries Producer of beer

India Molson Coors Brewing Co. - - -

04/01/15 Nutricima (50%) Manufacturer and seller of powdered and evaporated milk products

Nigeria PZ Cussons $62.3 - -

04/01/15 Modern Fluids (90%) Importer of wine

Finland Vingruppen i Norden - - -


William Blair


Food & Convenience Retail Transactions

($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/30/15 Gerland Corporation

Owner and operator of supermarkets United States Lewis Food Town - - -

04/29/15 Fiesta Mart Operator of a chain of supermarkets

United States Acon Investments - - -

04/26/15 Co-op Atlantic (Food, Gas Retail and Wholesale Assets) Wholesaler of groceries

Canada Sobeys - - -

04/25/15 Bombay Swadeshi Stores (87.7%) Operator of convenience stores that sell groceries and other items

India Private Investor (Ms. Madhu Chandak)

$11.8 3.11x NMF

04/21/15 CFS Corp Operator of supermarkets and drug stores

Japan Aeon Co. $279.1 0.28x 6.6x

04/21/15 China Resources Enterprise (Non-Beer Business) Operator of a chain of food retail stores

Hong Kong China Resources Co. $3,612.9 0.21x -

04/14/15 Supermarkets (20 stores) Operator of a chain of supermarkets

Norway Rema 1000 - - -

04/13/15 Lady Drug Store Co. Operator of pharmacies that sell groceries and other items

Japan Fuji Co.; Tsuruha Holdings

$89.7 - -

04/13/15 Marketplace Foods Operator of grocery stores

United States Coborn's - - -

04/09/15 The Daiel, Inc. (9 supermarkets in Hokkaido) Operator of supermarkets in Japan

Japan Aeon Hokkaido Corp. - - -

04/09/15 Lianhua Supermarket Holdings Operator of supermarkets and convenience stores in China

China Yonghui Superstores - - -

04/07/15 Supermarkets (78 supermarkets) Operator of a chain of supermarkets

Italy Crai Secom - - -

04/07/15 Harris Teerter, Inc. (3 stores) Operator of a chain of grocery stores

United States The Kroger Co. - - -

04/03/15 Atlant Group (10 A-Product stores) Operator of a chain of grocery stores

Russian Federation

Supermarket Kirovskiy - - -

04/02/15 FRAC Handel (19 stores) Operator of a chain of supermarkets

Poland Emperia $5.4 - -


William Blair

Food For Thought 8 Noteworthy M&A Activity – LTM

Noteworthy M&A Activity – LTM

Food & Beverage Producer Transactions

($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/22/15 China Huishan Dairy Holdings (8.9%)

Producer of milk and dairy products China Champ Harvest $3,814.3 5.87x 12.0x

04/21/15 Eaststarch (50%) Manufacturer of corn sweeteners and starches

Bulgaria Archer Daniels Midland Company

$516.9 - -

04/20/15 Iglo Foods Marketer and distributor of frozen food products in Europe

United Kingdom Nomad Holdings $5,683.6 3.52x 17.7x

04/13/15 Pivovarna Lasko Producer and seller of beer, malt, and bottled water

Slovenia Heineken $499.2 1.85x 11.7x

03/31/15 Picard Surgeles (49%) Retailer of frozen food

France Aryzta $989.0 - -

03/25/15 Kraft Foods Group Manufacturer of consumer packaged food and beverage products

United States H.J. Heinz $53,739.0 2.95x NMF

03/03/15 CFI Co. (74.1%) Manufacturer of food and beverage products

Japan Asahi Group Holdings $1,822.6 - -

02/10/15 Remy Cointreau (5.1%) Producer and distributor of wines and spirits

France Stichting Pensioenfonds $4,160.9 3.89x NMF

02/03/15 Big Heart Pet Brands Manufacturer, distributor, and marketer of pet food and pet snacks

United States The J. M. Smucker Company $6,000.0 - -

01/26/15 MOM Brands Producer and seller of cereal products in the United States

United States Post Holdings $1,151.7 - 7.9x

12/31/14 Inner Mongolia Mengniu Dairy Company Manufacturer of dairy products

China China Dairy (Mauritius) Limited

$6,039.2 - -

12/15/14 Archer Daniels Midland Company (Global Cocoa Business) Producer of cocoa

United States Olam International $1,300.0 - -

11/20/14 Primo Smallgoods Producer of packaged meats

Australia JBS $1,255.4 - -

11/06/14 DSS Group Producer and distributor of bottled water

United States Cott Corp. $1,250.0 - -

11/03/14 Centrale Laitiere Producer and seller of packaged milk and dairy products

Morocco Danone $1,677.9 2.10x 17.1x

11/03/14 United Biscuits Manufacturer and distributor of biscuits, snacks and frozen foods

United Kingdom Yildiz Holding $3,199.2 - -

10/20/14 Hainan Yedao Co. (11.2%) Manufacturer of food and beverage products

China China Orient Capital Investment Group

$679.0 6.19x -

10/06/14 Belvedere (7.3%) Producer and marketer of alcoholic beverages

France Diana Holding - Groupe Zniber

$362.7 0.54x NMF

09/10/14 Windsor Quality Food Company Producer and marketer of frozen foods and appetizers

United States Ajinomoto North America $800.0 1.19x -

09/08/14 Annie's Producer of natural and organic foods

United States General Mills $821.2 3.95x NMF

09/02/14 Archer Daniels Midland Company (Global Chocolate Business) Producer of chocolate

United States Cargill $440.0 - -

Note: Includes global change-of-control (unless otherwise indicated) transactions announced in the last twelve months Sources: Dealogic and Capital IQ

William Blair

Food For Thought Noteworthy M&A Activity – LTM 9


($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 08/21/14 Ebro Foods (2%)

Manufacturer of pasta, rice, and ready-to-eat food Spain Empresas Comerciales e

Industriales Valencianas $3,589.8 1.37x 9.5x

08/15/14 Vietnam Dairy Products (2%) Manufacturer of dairy products

Vietnam Fraser & Neave $4,534.6 2.90x 14.1x

08/11/14 Chiquita Brands International Producer and distributor of fruit and other fresh produce

United States Sucocitrico Cutrale; Banco Safra, Investment Arm

$1,193.1 0.39x 13.6x

08/11/14 Treasury Wine Estates Producer and distributor of wine

Australia TPG Capital $3,323.0 2.00x 14.2x

07/14/14 Russell Stover Candies Manufacturer and marketer of sweets and chocolates

United States Chocoladefabriken Lindt & Spruengli

$1,400.0 - -

07/07/14 WILD Flavors Manufacturer of food ingredients and preservatives

Switzerland Archer Daniels Midland Europoort

$3,096.5 2.28x -

06/30/14 CytoSport Manufacturer of nutritional supplements

United States Hormel Foods Corporation $470.0 - -

06/30/14 Flagstone Foods Producer and distributor of dried fruits and nuts

United States Treehouse Foods $860.0 - -

05/29/14 Hillshire Brands Co. Manufacturer of consumer food and beverage products

United States Tyson Foods $8,533.5 2.10x 15.3x

05/22/14 Conopco (North America Pasta Sauces Business) Producer of pasta sauce

United States Mizkan Holdings $2,150.0 3.60x -

05/21/14 Tnuva Food Industries Producer and distributor of dairy and frozen food products

Israel Bright Food Group $1,711.2 - -

05/20/14 Treasury Wine Estates Producer and distributor of wine

Australia KKR & Co. $3,188.3 1.90x NMF

05/12/14 Pinnacle Foods Manufacturer of convenience food products

United States Hillshire Brands $6,729.2 2.70x 15.2x


William Blair

Food For Thought 10 Noteworthy M&A Activity – LTM

Food & Convenience Retail Transactions

($ in millions)


Announced Target Business Description Nation Buyer Value Sales EBITDA 04/21/15 CFS Corp

Operator of supermarkets and drug stores Japan Aeon Co. $279.1 0.28x 6.6x

04/21/15 China Resources Enterprise (Non-Beer Business) Operator of a chain of food retail stores

Hong Kong China Resources Co. $3,612.9 0.21x -

03/10/15 Mandai Co. Operator of a chain of supermarkets

Japan Seven & i Holdings $550.0 - -

01/28/15 Controladora Comercial Mexicana Operator of a chain of supermarkets

Mexico Organizacion Soriana $2,676.0 1.38x 16.1x

12/18/14 The Pantry Operator of convenience stores that sell groceries and other items

United States Alimentation Couche-Tard $1,725.4 0.26x 7.8x

11/24/14 Dean & DeLuca Operator of retail stores that sell gourmet specialty food and beverage products

United States Pace Development Corporation

$140.0 - -

11/07/14 Nature's Pantry Operator of a chain of food retail stores

United States Natural Grocers by Vitamin Cottage

- - -

10/31/14 Maruetsu Operator of a chain of supermarkets

Japan Kasumi $685.6 0.23x 7.5x

10/03/14 Migros Ticaret Operator of a chain of supermarkets

Turkey Anadolu Endüstri Holding $2,705.4 0.79x 13.1x

09/30/14 Seijo Ishii Co. Operator of a chain of supermarkets

Japan Lawson $501.4 1.01x 9.7x

09/16/14 Grocery Outlet Inc. Operator of a chain of grocery stores

United States Hellman & Friedman - - -

08/11/14 Kinsho Store Co. Operator of a chain of supermarkets

Japan Kintetsu Corporation $645.3 1.13x -

07/02/14 Grupo El Árbol Distribución y Supermercados Supermarkets operator

Spain Distribuidora Internacional de Alimentación

$205.9 0.18x -

06/03/14 DIA France Operator of a chain of supermarkets

France Carrefour $816.9 - -

05/07/14 Roundy's (18 Rainbow Stores) Operator of 18 retail stores

United States SuperValu $65.0 - -


William Blair

Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 11

Historical M&A Trends in the Food and Food Retailing Industries

Volume Trends

U.S. Monthly Announced M&A Activity

05/14 06/14 07/14 08/14 09/14 10/14 11/14 12/14 01/15 02/15 03/15 04/15

Food & Beverage Production 16 12 12 13 14 14 11 12 17 16 18 12

Food Retail & Convenience 1 1 0 1 1 1 6 6 1 2 1 4

U.S. Yearly Announced M&A Activity

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD



Total Deal Value $13.5 $11.5 $29.1 $33.3 $93.3 $20.5 $39.0 $13.9 $36.0 $43.2 $59.9 $63.1

Global Yearly Announced M&A Activity

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD



Total Deal Value $61.1 $97.8 $94.9 $132.3 $140.5 $72.0 $94.2 $125.4 $127.4 $109.7 $134.2 $84.7

Note: Data represents announced transactions including U.S.-based targets only Sources: Dealogic and Capital IQ as of April 30, 2015

Food & Beverage Production Food Retail & Convenience

1713 12 14 15 15 17 18 18 18 19 16

0

10

20

30

Number of Deals

Food & Beverage Production Food Retail & Convenience Total Deal Value (

181 166

232 223 170

127129

159185 189 194

71

$0

$40

$80

$120

0

100

200

300

Deal ValueNumber of Deals ($ in billions)

Food & Beverage Production Food Retail & Convenience Total Deal Value (

973 1,0491,193 1,325 1,311

1,159 1,199 1,083 979 926 932

370

$0

$50

$100

$150

$200

0

500

1,000

1,500

Deal ValueNumber of Deals ($ in billions)

William Blair

Food For Thought 12 Historical M&A Trends in the Food and Food Retailing Industries

Participant Trends

Breakdown of Acquirers by Type

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Private 46.8% 44.1% 43.4% 51.9% 47.2% 50.0% 52.8% 49.5% 53.2% 56.0% 48.6% 47.2% 49.3%

Public 24.0% 27.7% 28.0% 19.6% 21.6% 20.3% 17.4% 18.1% 15.6% 19.5% 25.8% 21.6% 23.9%

Private Equity 11.0% 9.2% 10.1% 13.8% 17.2% 13.1% 13.0% 13.2% 12.2% 7.2% 13.6% 12.5% 11.3%

Foreign 18.2% 19.0% 18.5% 14.6% 14.0% 16.7% 16.8% 19.1% 19.0% 17.3% 12.0% 18.8% 15.5%

Breakdown of Sellers by Type

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Private 30.1% 46.4% 53.1% 50.5% 57.2% 46.3% 53.0% 49.7% 47.1% 53.4% 55.2% 53.4% 59.2%

Public 3.3% 6.4% 5.6% 2.0% 1.7% 3.7% 5.1% 6.1% 4.8% 2.5% 4.9% 7.4% 5.6%

Private Equity 17.1% 7.9% 9.1% 12.4% 8.1% 8.0% 8.5% 14.0% 5.3% 8.1% 7.8% 8.0% 8.5%

Divestiture 49.6% 39.3% 32.2% 35.1% 32.9% 42.0% 33.3% 30.2% 42.8% 36.0% 32.1% 31.3% 26.8%

Note: Data represents announced transactions including U.S.-based targets only Sources: Dealogic and Capital IQ as of April 30, 2015

Private Public Private Equity Foreign

0%

10%

20%

30%

40%

50%

60%Percent of Deals

Private Public Private Equity Divestiture

0%

10%

20%

30%

40%

50%

60%

70%

Percent of Deals

William Blair

Food For Thought Historical M&A Trends in the Food and Food Retailing Industries 13

Valuation Trends

Average EBITDA Multiples for Food Transactions(1)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Average EV/EBITDA Multiple 8.4x 9.1x 11.4x 9.9x 12.0x 10.4x 9.3x 8.2x 11.8x 13.2x 13.0x 13.0x 10.5x

Number of Disclosed Deals 25 20 14 28 23 20 14 11 7 17 22 34 10

Average EBITDA Multiples for Beverage Transactions(2)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Average EV/EBITDA Multiple 11.8x 14.1x 12.0x 13.5x 13.4x 17.3x 11.7x 10.9x 9.8x 13.6x 14.5x 11.8x 13.2x

Number of Disclosed Deals 9 16 12 15 5 4 9 1 3 6 4 13 5

(1) Excludes Food & Convenience retail transactions (2) Includes alcoholic and nonalcoholic beverages Note: Data represents global transactions announced in the respective sectors Note: Transactions with multiples that are not meaningful are categorized as undisclosed Sources: Dealogic and William Blair as of April 30, 2015

Average EV/EBITDA Multiple Number of Disclosed Deals

8.4x

9.1x

11.4x

9.9x

12.0x

10.4x9.3x

8.2x

11.8x13.2x 13.0x 13.0x

10.5x

0

5

10

15

20

25

30

35

40

0.0x

5.0x

10.0x

15.0x

20.0x

EV/EBITDA Multiple

Average EV/EBITDA Multiple Number of Disclosed Deals

11.8x 14.1x12.0x

13.5x 13.4x

17.3x

11.7x 10.9x9.8x

13.6x14.5x

11.8x13.2x

0

5

10

15

20

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

EV/EBITDA Multiple

William Blair

Food For Thought 14 Public Company Trading Statistics

Public Company Trading Statistics

Food Production Companies ($ in millions)

% Change Forward Enterprise Value/LTM

Company Market Cap MTD YTD P/E PEG Enterprise Value Sales EBITDA

Nestlé $246,178.0 2.7% 5.8% NA NA $260,754.8 2.83x 14.9x Unilever $124,933.4 5.3% 7.5% 18.5x 185.0% $138,233.6 2.36x 12.9x Mondelez International $62,413.5 6.3% 5.6% 19.4x 179.6% $79,388.5 2.38x 15.6x Kraft Foods Group $50,166.9 (2.7%) 35.3% 24.5x 288.0% $59,020.9 3.24x 26.0x Danone $43,466.9 7.4% 9.6% 17.5x 202.3% $53,143.1 2.08x 13.2x Associated British Foods $34,537.9 4.9% (10.7%) 25.1x 259.2% $36,211.1 1.80x 15.1x General Mills $32,987.6 (2.2%) 3.8% 18.4x 235.4% $43,703.9 2.48x 13.9x Kellogg Company $22,557.4 (4.0%) (3.2%) 14.9x 191.2% $29,546.4 2.05x 17.9x The Hershey Company $20,298.5 (8.9%) (11.6%) 20.3x 238.9% $22,382.1 2.99x 13.4x Tyson Foods $16,066.9 3.1% (1.5%) 13.3x 157.0% $23,224.9 0.57x 9.3x ConAgra Foods $15,437.9 (1.0%) (0.4%) 15.7x 235.2% $23,787.0 1.36x 10.3x JBS $14,900.4 16.2% 22.4% 13.9x NA $25,034.8 0.55x 6.4x Hormel Foods Corporation $14,328.7 (4.4%) 4.3% 24.3x 285.8% $14,057.2 1.48x 12.9x Campbell Soup Company $13,940.1 (4.0%) 1.6% 17.5x 291.5% $17,658.1 2.12x 11.9x The J. M. Smucker Company $13,870.5 0.2% 14.8% 18.5x 238.8% $15,938.6 2.91x 13.6x Grupo Bimbo $12,603.4 (5.6%) (2.8%) 22.4x 50.0% $17,026.4 1.33x 11.5x Saputo $11,579.0 7.4% (2.1%) 9.4x 93.9% $13,314.7 1.45x 13.9x George Weston $10,525.9 3.9% (5.0%) 15.1x 150.8% $27,438.6 0.72x 12.5x McCormick & Company $9,621.0 (2.3%) 1.3% 22.8x 276.4% $10,877.3 2.55x 15.8x Pilgrim's Pride Corporation $6,414.6 9.3% (24.7%) 34.3x NA $7,090.0 0.82x 4.7x The Hain Celestial Group $6,127.4 (5.9%) 3.3% 17.5x 118.4% $6,867.3 2.78x 23.3x ARYZTA $5,947.3 9.6% (12.9%) 11.5x 39.3% $8,330.7 1.45x 9.9x Flowers Foods $4,692.5 (1.8%) 16.4% 18.9x 177.6% $5,464.1 1.46x 12.8x Treehouse Foods $3,477.1 (4.4%) (5.0%) 20.2x 189.8% $4,875.8 1.66x 13.3x Post Holdings $2,457.0 0.2% 12.1% 51.1x 638.5% $6,225.2 1.95x 16.0x Lancaster Colony Corporation $2,452.4 (5.8%) (4.3%) 21.9x 198.9% $2,291.0 2.11x 13.6x Cal-Maine Foods $2,167.2 14.5% 14.6% 9.3x NA $1,983.5 1.28x 7.6x Snyder's-Lance $2,081.7 (7.6%) (3.3%) 21.0x 139.8% $2,513.0 1.55x 14.9x J&J Snack Foods Corp. $1,950.0 (2.2%) (4.1%) 27.4x 304.2% $1,863.0 1.96x 12.8x Fresh Del Monte Produce $1,935.6 (5.1%) 10.1% 15.4x 307.8% $2,290.5 0.58x 8.9x Tootsie Roll Industries $1,892.7 (8.7%) 4.1% NA NA $1,761.7 3.24x 16.8x Sanderson Farms $1,740.8 (5.7%) (10.6%) 8.3x NA $1,587.7 0.56x 3.1x B&G Foods $1,634.3 3.3% 1.7% 16.9x NA $2,642.7 3.05x 14.4x Dean Foods Company $1,533.1 (1.7%) (16.2%) 15.2x 206.2% $2,433.9 0.26x 12.4x Lotus Bakeries $1,097.5 7.1% 24.3% 22.6x 226.2% $1,133.4 2.69x 14.5x Diamond Foods $882.1 (13.9%) (0.7%) 32.9x 298.6% $1,482.1 1.67x 16.6x Calavo Growers $877.1 (1.5%) 7.1% 31.4x 273.5% $932.6 1.15x 19.7x Boulder Brands $584.5 0.1% (13.7%) 16.6x 94.9% $859.4 1.66x 14.5x John B Sanfilippo & Son $579.2 20.7% 14.3% NA NA $694.4 0.80x 11.1x Seneca Foods Corp. $321.6 (3.3%) 6.6% NA NA $603.5 0.46x 19.7x Inventure Foods $190.6 (12.9%) (23.5%) 14.2x 103.6% $275.5 0.96x 11.4x Bridgford Foods Corp. $75.5 3.5% 7.0% NA NA $70.5 0.52x NMF Golden Enterprises $44.8 1.3% 12.2% NA NA $53.8 0.41x 7.8x Mean 0.3% 2.1% 19.9x 214.9% $22,676.0 1.68x 13.4x

Median (1.5%) 1.7% 18.5x 204.3% $6,867.3 1.66x 13.4x

Note: Data as of April 30, 2015 Sources: FactSet Research Systems, Bloomberg, and Capital IQ; data is sometimes based on reported results and includes estimates

William Blair

Food For Thought Public Company Trading Statistics 15

Food Ingredients Companies

($ in millions) % Change Forward Enterprise Value/LTM


Givaudan $17,246.2 3.4% 4.0% 23.2x 193.0% $17,982.1 4.06x 19.8x

Kerry Group $12,902.2 9.3% 6.2% 17.5x 154.5% $14,466.7 2.08x 16.5x

International Flavors & Fragrances $9,265.6 (2.3%) 13.2% 20.8x 297.3% $9,732.8 3.15x 14.1x

Symrise $7,914.5 (3.5%) 0.5% 22.6x 170.5% $9,354.4 3.76x 18.0x

Barry Callebaut $6,626.4 23.4% 17.6% 20.7x 94.7% $8,535.1 1.31x 15.2x

Sensient Technologies Corporation $3,106.0 (5.1%) 8.3% 20.0x 210.7% $3,572.2 2.50x 13.2x

Frutarom Industries $2,495.9 13.8% 37.7% 28.0x NA $2,667.0 3.25x 18.1x

T. Hasegawa Co. $609.7 (0.6%) 3.5% 16.2x NA $469.3 1.26x 8.2x

Takasago International Corporation $459.8 2.1% 1.9% 11.4x NA $785.2 0.72x 11.2x

Mean 4.5% 10.3% 20.0x 186.8% $7,507.2 2.45x 14.9x

Median 2.1% 6.2% 20.7x 181.8% $8,535.1 2.50x 15.2x

Beverage Production Companies



Anheuser-Busch InBev $195,960.3 (0.3%) 7.3% 20.5x 163.6% $242,709.3 5.16x 13.5x

The Coca-Cola Company $177,186.1 0.0% (3.9%) 18.2x 220.3% $200,051.1 4.34x 15.5x

Pepsico $140,402.0 (0.5%) 0.6% 19.4x 236.4% $162,251.0 2.45x 13.2x

SABMiller $85,649.6 1.2% 1.6% 18.9x 148.1% $100,422.6 5.92x 17.2x

Diageo $69,784.0 0.8% (3.4%) 16.3x 158.2% $88,530.9 5.56x 17.8x

Monster Beverage Corporation $23,330.0 (0.9%) 26.5% 46.4x 331.2% $22,178.5 9.00x 28.8x

Constellation Brands $22,595.0 (0.2%) 18.1% 25.7x 192.6% $29,945.1 4.97x 16.8x

Brown-Forman Corporation $19,177.9 (0.1%) 2.7% 25.2x NA $19,933.9 6.46x 19.5x

Keurig Green Mountain $18,205.3 4.2% (12.1%) 30.4x 168.4% $17,887.9 3.80x 14.9x

Dr Pepper Snapple Group $14,299.3 (5.0%) 4.0% 20.3x 274.8% $16,830.3 2.73x 12.0x

Molson Coors Brewing Company $13,725.5 (1.3%) (1.4%) 17.0x 221.7% $16,323.2 3.94x 20.5x

Coca-Cola Enterprises $10,346.9 0.5% 0.4% 13.7x 153.3% $14,246.9 1.78x 10.4x

The WhiteWave Foods Company $7,696.0 (0.8%) 25.7% 38.3x 218.8% $9,194.2 2.68x 23.6x

Boston Beer Co. $3,311.4 (7.3%) (14.4%) 34.0x NA $3,189.8 3.47x 16.3x

Coca-Cola Bottling Co. $1,050.0 (0.1%) 28.4% 30.9x NA $1,618.1 0.93x 11.6x

National Beverage Corp. $1,036.4 (8.4%) (1.2%) NA NA $1,006.1 1.56x 12.0x

Cott Corporation $810.2 (7.1%) 25.6% 18.5x NA $2,677.7 1.27x 15.4x

Farmer Brothers Co. $398.9 0.7% (15.3%) 24.6x 123.2% $379.6 0.71x 13.1x

Lifeway Foods $330.4 (5.5%) 9.1% 38.9x 242.9% $333.2 2.80x NMF

Jones Soda Co. $13.9 (8.1%) (2.9%) NA NA $13.1 0.97x NMF

Mean (1.9%) 4.8% 25.4x 203.8% $47,486.1 3.53x 16.2x

Median (0.4%) 1.1% 22.6x 205.7% $16,576.8 3.14x 15.5x


William Blair

Food For Thought 16 Public Company Trading Statistics

Food Retail Companies



The Kroger Co. $33,842.2 (10.1%) 7.3% 19.5x 216.9% $45,260.2 0.42x 8.8x

Whole Foods Market $17,230.0 (8.3%) (5.3%) 30.2x 168.6% $16,556.0 1.13x 12.3x

Sprouts Farmers Market $4,873.4 (9.2%) (5.9%) 37.9x NA $5,149.9 1.74x 20.1x

United Natural Foods $3,378.1 (12.4%) (12.8%) 25.3x 165.5% $3,905.6 0.52x 14.0x

SUPERVALU $2,301.1 (24.4%) (9.4%) 13.2x NA $4,925.1 0.28x 6.3x

The Fresh Market $1,705.0 (13.5%) (14.7%) 19.4x 97.6% $1,689.9 0.96x 9.0x

Smart & Final Stores $1,277.7 (1.6%) 10.1% 23.7x NA $1,743.9 0.48x 11.1x

Weis Markets $1,192.9 (10.9%) (7.3%) NA NA $1,096.0 0.39x 7.4x

SpartanNash Company $1,141.2 (4.4%) 15.4% 15.4x 154.4% $1,705.0 0.22x 7.7x

Ingles Markets $848.1 (15.4%) 12.9% 20.4x 180.7% $1,812.2 0.47x 7.8x

Natural Grocers by Vitamin Cottage $591.9 (4.7%) (6.6%) 40.6x 153.2% $618.4 1.13x 14.2x

Village Super Market $448.9 1.6% 16.7% NA NA $399.9 0.26x 6.5x

Roundy's $248.4 3.1% 4.1% 12.8x 48.1% $833.0 0.22x 7.1x

Fairway Group Holdings Corp. $231.5 (21.6%) 68.6% NMF NA $449.3 0.56x NMF

Mean (9.4%) 5.2% 23.5x 148.1% $6,153.2 0.63x 10.2x

Median (9.7%) (0.6%) 20.4x 160.0% $1,724.5 0.48x 8.8x

Convenience Store Companies



Alimentation Couche-Tard $21,728.8 (4.3%) (9.3%) 25.3x NA $23,135.3 0.64x 12.9x

Casey's General Stores $3,182.7 (8.8%) (9.0%) 20.5x 184.2% $4,011.4 0.54x 9.1x

Mean (6.6%) (9.2%) 22.9x 184.2% $13,573.4 0.59x 11.0x

Median (6.6%) (9.2%) 22.9x 184.2% $13,573.4 0.59x 11.0x


William Blair

Food For Thought Same-Store Growth – Food & Convenience Retail 17

Same-Store Growth – Food & Convenience Retail

Grocery Stores & Supermarkets

Smart & Final Stores 7.8%The Kroger Co. 6.0%Natural Grocers by Vitamin Cottage 5.6%

Publix Super Markets 5.3%

Sprouts Farmers Market 4.8%Pantry Inc. 3.6%Whole Foods Market 3.6%Weis Markets 3.5%The Fresh Market 3.0%Ingles Markets 2.3%Village Super Market 2.2%SUPERVALU 1.1%SpartanNash 0.4%Fairway Group Holdings (2.2%)Roundy's (2.3%) Convenience Stores

Casey's General Stores 10.4%Alimentation Couche-Tard 4.5%(1) Excludes fuel sales Note: Bolded companies reflect recently announced same-store sales data (announced in April/May 2015) Note: Data represents growth in the most recent reported fiscal quarter over the year-ago period Sources: Company filings and Capital IQ as of April 30, 2015

William Blair

Food For Thought 18 U.S. Public Equity Financing Summary – LTM

U.S. Public Equity Financing Summary – LTM

IPOs

($ in millions)

At Filing At Pricing Pricing & Performance - % Change Offer/

Initial Filing Date

Offer Date Ticker Issuer

Shares/ ADS Exc. Ovl.

Filing Range

Deal Value at Midpoint

Shares/ADS Inc. Ovl.

Offer Price

Deal Value

Market Value

Relative to Range 1 Day 1 Month 3 Months Current

06/20/14 09/23/14 SFS Smart & Final Stores 13.5 $12.00 - $14.00 175.5 15.5 $12.00 $186.0 $852.7 In Range 4.2% 9.2% 29.2% 46.7%

Mean 4.2% 9.2% 29.2% 46.7%

Median 4.2% 9.2% 29.2% 46.7%

Follow-Ons

($ in millions)

Pricing Performance - % Change

% Shares Offered Last Trade Before

Pricing Date Ticker Issuer Business Description

Shares/ ADS Offered (mm)

Offer Price

Deal Value (mm) Primary Secondary

Filing/ Offer

Offer/ Offer

Offer/ Current

04/29/15 BGS B&G Foods Inc. Manufacturer and distributor of consumer food products 4.2 $30.60 $128.5 100% 0% (13.2%) (13.0%) 10.1%

04/14/15 SFS Smart & Final Stores Retailer and distributor of food and beverage products 10.0 $18.50 $185.0 0% 100% (4.1%) (3.4%) (0.2%)

03/09/15 PF Pinnacle Foods Manufacturer and marketer of convenience food products 14.3 $37.07 $531.0 0% 100% (0.7%) (0.7%) (1.4%)

03/04/15 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.8 $35.30 $559.4 0% 100% (0.4%) (0.4%) 27.1%

01/28/15 POST Post Holdings Manufacturer and marketer of convenience food products 6.5 $47.50 $308.8 100% 0% (12.8%) 2.6% 19.9%

11/17/14 PF Pinnacle Foods Manufacturer and marketer of convenience food products 20.0 $32.11 $642.2 0% 100% 4.8% 4.8% (12.9%)

11/10/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.0 $29.38 $440.7 0% 100% 7.9% 7.9% 27.9%

09/11/14 SNAK Inventure Foods Manufacturer and marketer of natural snack food products 3.6 $12.85 $46.2 0% 100% (9.7%) (4.6%) 17.4%

09/08/14 PF Pinnacle Foods Manufacturer and marketer of convenience food products 15.0 $31.90 $478.5 0% 100% 6.0% 6.0% 12.3%

08/12/14 SFM Sprouts Farmers Market Specialty retailer of natural and organic food 15.0 $30.00 $450.0 0% 100% 5.6% 8.5% 12.6%

07/30/14 TSN Tyson Foods Producer and distributor of chicken and related food products 23.8 $37.80 $900.0 100% 0% 5.4% 3.6% (1.8%)

Mean (0.7%) 0.9% 10.1%

Median (0.4%) 2.2% 12.3%

Sources: Dealogic and FactSet Research Systems Note: LTM as of April 30, 2015

William Blair

Food For Thought Selected Upcoming Industry Events 19

Selected Upcoming Industry Events

Date Event Location

May 2015

3-6 RILA Asset Protection Conference Orlando, FL

3-6 FMI’s 2015 Financial Executive Conference and Internal Auditing Conference (Co-Located) New Orleans, LA

16-19 NRA Restaurant Hotel Motel Show Chicago, IL

19-20 PLMA’s Annual “World of Private-Label” Amsterdam

19-21 NCA Sweets & Snacks Expo Chicago, IL

20-22 CSP Leadership and Crisis Prevention Forum Denver, CO

31-2 AFFI Food Logistics Forum Incline Village, NV

31-4 NGA Leadership Development Program (Cornell) Ithaca, NY

June 2015

7-9 International Dairy Deli Bakery Association Annual Convention "Dairy-Deli-Bake" Atlanta, GA

7-12 Insight NACS Future of Convenience London, UK

8-10 United Fresh 2015 Chicago, IL

8-11 FMI Connect Chicago, IL

22-24 Foodservice at Retail Expo 2015 Nashville, TN

28-29 TRA Marketplace (formerly Southwest Foodservice Expo) Dallas, TX

28-30 NASFT – Summer International Fancy Food & Confection Show New York, NY

28-30 Georgia Association of Convenience Stores Annual Convention/Tabletop Show Amelia Island, FL

July 2015

20-23 NBJ Summit Dana Point, CA

26-28 The International Foods Planning TBD

27-29 Center Store Grocery, Snack & Beverage Planning TBD

August 2015

22-25 NACDS Total Store Expo Denver, CO

September 2015

1-2 Food Evolution Summit Phoenix, AZ

15-18 PROCESS EXPO Chicago, IL

15-18 RILA Retail Sustainability Conference Austin, TX

16-17 NCA Washington Forum Washington D.C

17-19 All Things Organic - BioFach America Baltimore, MD

17-20 Natural Products Expo East Baltimore, MD

20-22 MUFSO Conference Dallas, TX

20-23 Candy Annual Planning Chandler, AZ

27-30 Energy & Store Development Conference (FMI) San Diego, CA

28-29 Canadian Federation of Independent Grocers-Grocery Innovations Toronto, Canada

William Blair

Food For Thought 20 Selected Upcoming Industry Events

Date Event Location

October 2015

10-13 National Frozen and Refrigerated Foods Convention Dallas, TX

11-14 NACS Show Las Vegas, NV

13-15 Shopper Marketing Expo Minneapolis, MN

22-24 Consumer Goods Forum: Future Leaders Congress Rio De Janeiro, Brazil

23-25 Fresh Summit International Convention & Exposition Atlanta, GA

26-27 IFE Americas Food & Beverage Show Miami, FL

28-29 National Chicken Council - Annual Conference Washington, DC

November 2015

10-11 Kosherfest Secaucus, NJ

14-16 Outlook Leadership 2015 (CSP) TBD

15-17 PLMA's Private Label Trade Show Chicago, IL

December 2015

3-6 SOHO Expo Orlando, FL

January 2016 13-14 MarcabyBolognaFiere Bologna, Italy

17-19 Winter Fancy Food Show San Francisco, CA

23-26 FMI’s Midwinter Executive Conference Miami Beach, FL

24-26 Retail Industry Leaders Association – The Leadership Forum Naples, FL

26-28 International Production & Processing Expo Atlanta, GA

February 2016

20-24 AFFI Frozen Food Convention San Diego, CA

23-25 Convenience Retailing University Dallas, TX

28-2 N.G.A. 2016 Annual Convention and Supermarket Synergy Showcase Las Vegas, NV

28-2 RILA Supply Chain Conference Dallas, TX

28-2 NCA State of the Industry Conference Miami, FL

March 2016

6-8 Seafood Expo North America & Seafood Processing North America Boston, MA

7-11 NACS Global Forum Cape Town, South Africa

9-13 Natural Products Expo West Anaheim, CA

20-23 American Bakers Association Annual Convention Phoenix, AZ

April 2016

3-6 Restaurant Leadership Conference Phoenix, AZ 10-14 AFFI Annual Food and Beverage Environmental Conference Coeur d'Alene, ID 11-13 Grocery Manufacturers Association Science Forum Chicago, IL

William Blair

Food For Thought General Market Update 21

General Market Update

Percentage Change

As of 04/30/15 Month-to-Date Year-to-Date

Equity Market Indices

Dow Jones Industrial Average 17,840.52 0.4%

0.1%

Nasdaq Composite 4,941.43 0.8% 4.3% S&P 500 2,085.51 0.9% 1.3% S&P Food Products Index 515.71 (0.2%) 4.2% S&P Food & Staples Retail Index 383.79 (4.7%) (0.2%) S&P Restaurants Index 906.45 0.8% 8.0%

WB Corporate Finance Indices(1) Food Index 828.30 (1.1%)

(2.7%)

Ingredients Index 986.14 0.8% 1.9% Beverage Index 4,241.59 (0.0%) 1.5% Food Retail Index 972.82 (10.4%) 0.1%

Convenience Store Index 24,983.90 (9.2%) (4.8%) Currencies Dollar to Canadian Dollar $1.21 (4.4%)

4.6%

Dollar to Euro $0.89 (4.2%) 8.0% Dollar to Peso $15.36 0.8% 4.2% Dollar to Pound $0.65 (3.4%) 1.5% Commodities(2) Coffee Beans (Cents and 1/100 of a Cent Up to 2 Decimal Places) $1.37 2.7%

(18.0%)

Corn (Cents per Bushel) $3.66 (2.7%) (7.7%) Milk (Cents per 2,000 lbs.) $0.16 2.1% 1.9% Cocoa (Dollars per Metric Ton) $2,943.00 9.0% 1.1% Oil (Dollars per Barrel) $59.63 25.3% 11.9% Soybean Oil (Cents per Bushel) $0.32 4.1% (1.5%) World Sugar (Cents and 1/100 of a Cent up to 2 Decimal Places) $0.13 8.8% (10.6%) Wheat (Cents per Bushel) $4.74 (7.4%) (19.6%)

Yield (%) 52-Week Range

As of 04/30/15

52-Week Low Latest

52-Week High

INTEREST RATES

10-Year Treasury 2.0% 1.7% 2.7% 30-Year Treasury 2.7% 2.3% 3.5% 3-Month LIBOR 0.3% 0.2% 0.3% Fed Funds Effective Rate 0.1% 0.1% 0.1% Prime Rate 3.3% 3.3% 3.3% (1) WB Corporate Finance indices are determined by FactSet Research Systems, as of April 30, 2015. Data is based on a weighted average by market capitalization calculation. (2) Commodities represent futures prices Source: FactSet Research Systems as of April 30, 2015 WB Corporate Finance Food Index includes: ARYZTA, Associated British Foods, B&G Foods, Bridgford Foods, Calavo Growers, Cal-Maine Foods, Campbell Soup, Chiquita Brands International, ConAgra Foods, Danone, Dean Foods, Diamond Foods, Dole Food Company, Flowers Foods, Fresh Del Monte Produce, General Mills, George Weston Limited, Golden Enterprises, Grupo Bimbo, Hormel Foods, Inventure Foods, J&J Snack Foods, JBS, John B Sanfilippo & Son, Kellogg Company, Kraft Foods, Lancaster Colony Corporation, McCormick & Co., Nestlé, Overhill Farms, Pilgrim’s Corp., Post Holdings, Sanderson Farms, Saputo, Seneca Foods, Nestlé, Ralcorp Holdings, Reddy Ice Holdings, Sanderson Farms, Saputo, Sara Lee, Seneca Foods, Smart Balance, Smithfield Foods, Snyder’s-Lance, The Hain Celestial Group, The Hershey Company, The J. M. Smucker Company, Tootsie Roll Industries, Treehouse Foods, Tyson Foods, Unilever WB Corporate Finance Beverage Index includes: Anheuser-Busch InBev, Boston Beer Co., Brown-Forman Corporation, Coca-Cola Bottling Co. Consolidated, Coca-Cola Enterprises, Constellation Brands, Cott Corporation, Diageo, Dr Pepper Snapple Group, Farmer Brothers Co., Green Mountain Coffee Roasters, Jones Soda Co., Lifeway Foods, Molson Coors Brewing Company, Monster Beverage Corporation, National Beverage, PepsiCo, SABMiller, The Coca-Cola Company WB Corporate Finance Ingredients Index includes: Barry Callebaut, Frutarom Industries, Givaudan, International Flavors & Fragrances, Kerry Group, Sensient Technologies Corporation, Symrise, T. Hasegawa Co., Takasago International WB Corporate Finance Food Retail Index includes: Arden Group (Gelson’s), Fairway Group Holdings, Harris Teeter Supermarkets, Ingles Markets, Nash Finch, Roundy’s, Safeway, Smart & Final Stores, Spartan Stores, SUPERVALU, The Fresh Market, The Kroger Co., United Natural Foods, Village Super Market, Vitamin Cottage Natural Food Markets, Weis Markets, Whole Foods Market WB Corporate Finance Convenience Store Index includes: Alimentation Couche-Tard, Casey’s General Stores, Pantry

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

Quarterly Market Update – All Industries

William Blair

Food For Thought 22 Domestic M&A Market Summary

Domestic M&A Market Summary

U.S. Activity Trends

M&A Activity

Number of Deals 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013 LTM

>$1B 171 209 269 346 158 124 201 183 218 215 288 310

Mid-Cap 1,097 1,118 1,286 1,438 1,073 713 1,133 1,161 1,144 1,245 1,267 1,244

<$100M 3,497 3,415 3,359 3,214 3,764 3,455 5,172 4,276 4,094 3,102 2,746 2,954

Undisclosed 5,187 5,362 7,513 8,338 6,514 5,073 6,235 7,770 9,193 7,640 8,545 8,447

Deal Value $992 $1,297 $1,645 $1,748 $1,074 $884 $1,045 $1,171 $1,080 $1,241 $1,819 $1,917

Mid-Cap M&A Activity


$500-$1B 173 185 239 307 183 102 221 219 231 246 219 218

$100-$500M 924 933 1,047 1,131 890 611 912 942 913 999 1,047 1,026

Deal Value $318.1 $338.4 $410.7 $475.0 $325.7 $201.2 $358.7 $367.5 $363.1 $399.6 $393.4 $391.7

Private-Equity Activity


>$1B 53 62 86 123 34 25 60 56 65 67 93 92

Mid-Cap 340 343 368 402 252 193 339 297 253 264 304 288

< $100M 575 540 649 457 548 575 565 438 465 323 273 296

Undisclosed 650 841 1,124 1,332 961 678 1,017 1,256 1,397 1,250 1,539 1,507

Deal Value $231 $300 $550 $632 $204 $152 $272 $267 $263 $309 $389 $431

Note: Year-to-date as of March 31, 2015 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only

9,952 10,104 12,427 13,336 11,509 9,36512,741

13,39014,649

12,202 12,846 12,955

$0$800$1,600$2,400

06,000

12,00018,000

Deal Value($ in billions)

Number of Deals Undisclosed Mid-Cap >$1B < $100M Deal Value

1,097 1,118 1,286 1,4381,073

713 1,1331,161 1,144 1,245 1,266 1,244

$0

$200

$400

$600

0400800

1,2001,600


Number of Deals $100-$500M $500-$1B Deal Value

1,618 1,7862,227 2,314

1,795 1,4711,981 2,047 2,180 1,904 2,209 2,183

$0$200$400$600$800

0500

1,0001,5002,0002,500


Number of Deals Undisclosed Mid-Cap >$1B < $100M Deal Value

William Blair

Food For Thought Domestic M&A Market Summary 23

U.S. Valuation Trends

Median EV/EBITDA Multiples

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM

Mid-Cap 8.0x 8.9x 10.2x 10.9x 10.0x 9.4x 7.6x 10.0x 10.4x 9.6x 9.1x 9.4x 10.5x

Overall Market 8.5x 9.1x 10.3x 11.0x 11.2x 9.0x 7.4x 9.9x 10.8x 9.7x 10.0x 11.2x 11.5x

Median EV/EBITDA Mid-Cap Multiples

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM

$100M-$500M 7.7x 8.9x 10.4x 10.8x 10.0x 7.9x 7.3x 9.4x 9.3x 9.2x 10.8x 9.2x 10.1x

$500M-$1B 9.3x 9.1x 9.8x 11.6x 10.1x 9.5x 9.4x 10.3x 10.2x 10.2x 12.2x 9.8x 10.5x

Average Acquisition Premiums

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM

1-Week Premium 36% 32% 28% 26% 26% 27% 36% 38% 34% 36% 36% 23% 31% 31%

4-Week Premium 38% 40% 32% 31% 31% 29% 37% 41% 38% 39% 39% 30% 34% 35%

Notes: Data limited to a range of 1 to 100 and LTM is as of March 31, 2015 Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis. Data represents announced deals only

3.0x

6.0x

9.0x

12.0x

15.0x

Mid-Cap Overall Market

0.0x

5.0x

10.0x

15.0x$100M-$500M $500M-$1B

20%

30%

40%

50%

1-Week Premium 4-Week Premium

William Blair

Food For Thought 24 U.S. Equity Capital Markets Summary

U.S. Equity Capital Markets Summary

Historical IPO Issuance

Historical Follow-On Issuance

Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs

IPO Pricings by Sector – Last 4 Quarters: 243 Total Deals Follow-on Pricings by Sector – Last 4 Quarters:

694 Total Deals

Sources: Dealogic and William Blair’s mergers-and-acquisitions market analysis

54

139

95 105

175

243

63

24 28 3513 19

39 25 20 21 2150 48 56 63 70

54 5624

0

50

100

150

200

250

2009 2010 2011 2012 2013 2014 2014YTD

2015YTD

1Q11

2Q11

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

564506

399470

657612

198 227135 128

50 86130 98 115 127 152 139 173 193 198 183

120 111

227

0100200300400500600700

2009 2010 2011 2012 2013 2014 2014YTD

2015YTD

Q111

2Q11

Q311

Q411

Q112

Q212

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

516

29

82

21

51Business Services

Consumer

Financial

Healthcare

Industrial

Technology

57

55

55

201

179

94 Business Services

Consumer

Financial

Healthcare

Industrial

Technology

William Blair

Food For Thought Debt Capital Markets Summary 25

Debt Capital Markets Summary

Average Equity Contribution

Quarterly LBO Debt Multiples – Less Than $50 Million EBITDA

Quarterly LBO Debt Multiples – Greater Than $50 Million EBITDA

Sources: Dealogic and Standard & Poor’s as of March 31, 2015

36%41%

38% 40%35% 34% 32%

40%46% 45%

41% 41%46%

43% 43%

31%

37%

32% 32% 30% 29% 30%

38%

47%

40%37% 37%

33%36%

39%

0%

10%

20%

30%

40%

50%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

Less than $50 million EBITDA More than $50 million EBITDA

Total Debt/EBITDA Senior Debt/EBITDA

3.8x

3.7x

4.0x 4.2x4.2x

4.9x 4.8x

4.4x

3.4x

3.8x 4.4x

5.0x 5.1x 4.8x

3.8x

3.7x

2.2x

4.0x 3.8x4.5x

4.8x

3.3x3.1x 3.7x 3.2x

5.0x 5.1x4.8x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Debt/EBITDA Senior Debt/EBITDA

4.5x 4.4x4.8x 4.9x

5.0x

5.7x

6.8x

4.0x

4.8x

5.3x

4.3x

5.1x

5.5x5.6x

2.6x

2.6x2.9x

2.9x

3.5x

4.4x

6.6x

3.1x

3.9x

5.3x

4.0x

4.9x5.5x

5.6x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

William Blair

Food For Thought 26 William Blair Food & Beverage and Food Convenience & Retail Investment Banking

William Blair Food & Beverage and Food Convenience & Retail Investment Banking

Food & Beverage Production

Jim Bertram is the global head of the firm’s consumer and retail investment banking group. Before joining William Blair in 2006, he was the co-head of Banc of America Securities’ global consumer products investment banking practice. In this role, he assisted domestic and international consumer products manufacturers and distributors in executing mergers and acquisitions and raising debt and equity capital through both public and private market transactions. Before joining Banc of America Securities, he was responsible for leading Deutsche Bank Alex. Brown’s food-and-beverage investment banking activity. Before working at Deutsche Bank Alex. Brown, he was vice president in the corporate finance department at George K. Baum & Company, an investment and merchant banking firm where he advised clients in executing public equity offerings, mergers and acquisitions, and private debt placements. Mr. Bertram began his career in investment banking at Salomon Brothers.

Mr. Bertram graduated with highest honors from the University of Illinois with a B.S. in finance. [email protected] +1 312 364 5426

Brent Smith is a managing director in the consumer and retail group. Since joining William Blair in 2000, Mr. Smith has also been a member of the firm’s mergers-and-acquisitions practice and currently heads William Blair’s consumer M&A effort. Over this period, he has worked on a range of public and private M&A, primarily in the consumer and industrial sectors, totaling more than $18 billion in aggregate transaction value. Mr. Smith’s financial advisory experience includes sell-side and buy-side transactions, corporate divestitures, take-private transactions, strategic options studies, valuations, fairness opinions, and special committee situations. Mr. Smith is a member of William Blair’s Fairness Opinion Committee. Before joining William Blair, Mr. Smith worked at both Lehman Brothers and Heitman Financial.

Mr. Smith holds an M.B.A. with honors from the University of Chicago and a B.B.A. with high distinction from the University of Michigan.

[email protected] +1 312 364 5392

Adam Filkin joined William Blair in 2007 and is a managing director in the consumer and retail investment banking group. Mr. Filkin has extensive transaction experience across numerous consumer verticals, including food, consumer products, and personal care. He joined William Blair from Banc of America Securities, the investment banking arm of Bank of America. Mr. Filkin spent three years at Banc of America, serving as an associate in the consumer and retail practice. Before joining Banc of America, Mr. Filkin was a manager at A.T. Kearney, focusing on growth strategies and operational improvement studies for consumer and retail companies. He has more than 10 years of experience working with consumer and retail companies.

Mr. Filkin holds an M.B.A. with a concentration in finance from the University of Chicago and holds a B.S.E. in chemical engineering from the University of Michigan.


William Blair

Food For Thought William Blair Food & Beverage and Food Convenience & Retail Investment Banking 27

Food & Convenience Retail

Tim Carroll joined William Blair in 2002 and serves as a managing director in the consumer and retail investment banking group. He joined William Blair from Andersen Corporate Finance LLC, the investment banking arm of Andersen. Mr. Carroll spent four years at Andersen, serving as a national director and managing director/co-head of the products and business services industry team. Before joining Andersen, he was a founder and principal of Wyndam Capital, a broker-dealer serving middle-market companies, and a founder and principal of a $120 million private-equity fund. Mr. Carroll has served on the board of directors for seven privately held businesses and has more than 27 years of investment banking experience, 7 years of commercial banking experience, and 2 years of commercial real estate experience.

Mr. Carroll graduated with a B.S. in business finance from Indiana University.


Michael Siska is a managing director in the consumer and retail investment banking group at William Blair. He originally joined the firm in 2002 and then rejoined in 2006 after attaining his M.B.A. at the University of Chicago. Before joining William Blair, Mr. Siska worked in private equity for Allstate Private Equity in Chicago and 3i Group in London. He also spent five years in the products and business services industry group at Andersen Corporate Finance LLC, the investment banking arm of Andersen. He focuses on specialty retail, food retail, restaurants, and consumer services.

Mr. Siska earned an M.B.A. from the University of Chicago and a B.S., with honors, from the University of Illinois at Urbana-Champaign.


Europe

Alex Matthes is a managing director at William Blair. Before he joined William Blair in 2013, Mr. Matthes worked in Commerzbank’s M&A advisory team with a focus on consumer and retail. Before joining Dresdner Kleinwort in 2006 as vice president, he worked in the M&A department of Lazard as analyst and associate since 2000.

Mr. Matthes studied business administration at the universities of Frankfurt and Cologne and obtained a master’s degree in business administration (Diplom Kaufmann) in 2000.


Beth Pickens is a managing director and head of European consumer banking. She joined William Blair in 2000 and has been located in William Blair’s London office since 2001. Ms. Pickens specializes in advising international consumer growth companies across consumer products, personal care, and consumer services. She is also an angel investor in early-stage consumer companies, including Bonobos.com and DefySupply.com.

Ms. Pickens holds a master’s degree in business administration from the University of Chicago Graduate School of Business and a bachelor’s degree in finance from the University of Illinois at Urbana-Champaign. She also completed studies at the Université de Paris IV-Sorbonne. A Chicago native, she lives in London with her husband and children.


William Blair

Food For Thought 28 Recent William Blair Consumer & Retail Transactions

Recent William Blair Consumer & Retail Transactions

Not Disclosed

has been acquired byTricor Pacific Capital, Inc.

April 2015

Not Disclosed

has been acquired by

Roark Capital Group

April 2015

$6,000,000,000

has acquired

Big Heart Pet Brands

March 2015

$500,000,000

has acquired

Del Taco Inc.

March 2015

$223,905,000

Follow-on Offering

February 2015

$120,750,000

Initial Public Offering

January 2015

®

Not Disclosed


Wasserstein & Co., LP

December 2014

Not Disclosed

has been acquired by One Rock Capital

Partners

December 2014

Not Disclosed

has been acquired by Knowlton Development

Corporation

December 2014

Not Disclosed

has acquiredRobert Bosch Tool

Corporation, Garden & Watering BusinessDecember 2014

Not Disclosed

has been acquired by Frutarom

Industries Ltd.

November 2014

€220,000,000


Abris Capital Partners

November 2014

$186,300,000

Follow-on Offering

November 2014

$139,840,000

Follow-on Offering

November 2014

$105,000,000

Follow-on Offering

November 2014

$128,000,000


Post Holdings, Inc.

November 2014

Not Disclosed

Growth Equity Recapitalization

October 2014

Not Disclosed

has been acquired byMonomoy Capital

Partners

October 2014

$108,235,280


October 2014

$85,000,000

Senior Credit Facility

September 2014

$53,117,980

Follow-on Offering

September 2014

Not Disclosed

has a strategic investment from

Standard Chartered Private Equity

August 2014

$156,543,750

Follow-on Offering

August 2014

Not Disclosed

has been acquired byPeet’s Coffee & Tea /

Next World Capital

August 2014

$123,214,290


July 2014

$89,125,000

Follow-on Offering

July 2014

$373,749,990

Follow-on Offering

July 2014

$171,646,263

Follow-on Offering

June 2014

$202,000,000


Snyder’s Lance

June 2014

CAD$170,000,000


TreeHouse Foods, Inc.

May 2014

Not Disclosed


Milner Milling, Inc.

May 2014

$64,166,663


May 2014

$132,050,000


April 2014

$100,624,980


April 2014

$61,300,000

has been acquired byThe Hain

Celestial Group

April 2014

William Blair

Food For Thought William Blair Consumer & Retail Coverage 29

William Blair Consumer & Retail Coverage Mark Miller, CFA +1 312 364 8498 Broad Assortment and Hardlines, E-commerce, Health, Beauty, and Convenience

Sharon Zackfia, CFA +1 312 364 5386 Apparel and Accessories, Leisure, Restaurants

Company Ticker Company Ticker Amazon.com AMZN BJ’s Restaurants BJRI Blue Nile NILE Bloomin’ Brands BLMN Cabela’s CAB CarMax KMX Costco Wholesale Corporation COST Carnival Corporation CCL CVS Health Corporation CVS Cheesecake Factory (The) CAKE Dick’s Sporting Goods DKS Chipotle Mexican Grill CMG Fairway Group Holdings FWM Dunkin’ Brands Group DNKN Fresh Market (The) TFM El Pollo Loco Holdings LOCO JD.com JD Harley-Davidson HOG MercadoLibre MELI Life Time Fitness LTM Natural Grocers by Vitamin Cottage NGVC Lululemon Athletica LULU Sportsman’s Warehouse Holdings SPWH Panera Bread Company PNRA Target Corporation TGT Papa Murphy’s Holdings FRSH Tractor Supply Company TSCO Potbelly PBPB Walgreens Boots Alliance WBA Royal Caribbean Cruises RCL Wal-Mart Stores WMT Sonic Corp. SONC Wayfair Inc. W Starbucks Corporation SBUX Whole Foods Market WFM Tilly’s TLYS Zulily ZU Tumi Holdings TUMI Under Armour UA Urban Outfitters URBN Zoe’s Kitchen ZOES Zumiez ZUMZ

Jon Andersen, CFA +1 312 364 8697 Consumer Products

Daniel Hofkin, Analyst +1 312 364 8965 Hardlines, Specialty Retail

AptarGroup ATR Advance Auto Parts AAP Boulder Brands BDBD AutoZone AZO Church & Dwight CHD Bed Bath & Beyond BBBY Colgate-Palmolive Company CL Luxottica Group LUX Scotts Miracle-Gro Company (The) SMG Mattress Firm Holding Corp. MFRM Fox Factory Holding Corp. FOXF O’Reilly Automotive ORLY Inventure Foods SNAK PetSmart PETM J&J Snack Foods JJSF Regis Corporation RGS J.M. Smucker Company (The) SJM Restoration Hardware Holdings RH Jarden Corporation JAH Ross Stores ROST Kellogg Company K Steiner Leisure STNR Keurig Green Mountain GMCR TJX Companies (The) TJX Mead Johnson Nutrition Company MJN Ulta Salon, Cosmetics & Fragrance ULTA Perrigo Company PRGO Williams-Sonoma WSM Prestige Brands Holdings PBH Procter & Gamble Company (The) PG SodaStream International SODA Tempur Sealy International TPX TreeHouse Foods THS

Amy Noblin, Analyst +1 415 248 2874 Apparel and Accessories

Abercrombie & Fitch ANF Nordstrom JWN Coach COH Tiffany & Co. TIF DSW DSW Tumi Holdings TUMI Francesca’s Holdings FRAN Vera Bradley VRA Michael Kors Holdings KORS Vince Holding Corp. VNCE

William Blair

Food For Thought 30 Notes

Notes

William Blair

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States.

This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision.

William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com April 15, 2015

Food For Thought Disclosures 31

Disclosures

William Blair’s investment banking group combines significant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and financing solutions to our global base of corporate clients. We serve both publicly traded and privately held companies, executing mergers and acquisitions, growth financing, financial restructuring, and general advisory projects. This comprehensive suite of services allows us to be a long-term partner to our clients as they grow and evolve. From 2010-2014, the investment banking group completed more than 330 merger-and-acquisition transactions worth $73 billion in value, involving parties in 36 countries and five continents, was an underwriter on more than 20% of all U.S. initial public offerings, and raised nearly $100 billion in public and private financing.

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