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Professional’s Favorite Professional’s Favorite Meat Snacks Meat Snacks The Ideal Complement to The Ideal Complement to Professional’s Favorite Professional’s Favorite Cashews Cashews Presented By Knauss Snack Food Company

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Page 1: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Professional’s FavoriteProfessional’s Favorite Meat Meat Snacks Snacks The Ideal Complement to The Ideal Complement to Professional’s Favorite Professional’s Favorite

CashewsCashews

Presented By Knauss Snack Food Company

Page 2: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Purpose of the presentation is threefold:

1. To illustrate why Meat Snacks is the ideal category as an extension to the successful launch of Professional’s Favorite Cashews.

2. To demonstrate why Knauss Snack Food Company should be your supplier and partner in capitalizing on the Professional’s Favorite Meat Snacks opportunity.

3. To review the key elements of a Corporate Brand Meat Snacks program customized for Advance Auto Parts.

PurposePurpose

Page 3: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

The following agenda has been developed to fulfill this purpose . . .

• Meat Snacks Category Overview

• Reasons for Professional’s Favorite Meat Snacks Program

• Qualifications of Knauss Snack Food Company as Your Partner and Supplier

• Key Elements of Corporate Brand Meat Snacks Program Customized for Advance Auto Parts

AgendaAgenda

Page 4: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Meat Snacks Category Overview

Page 5: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Meat Snack Retail Dollar SalesMeat Snack Retail Dollar Sales(millions)

$0

$500

$1,000

$1,500

$2,000

$2,500

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02

Source: Snack Food Association, Information Resources, Inc. (all classes of trade), A.C. Nielsen.

Size/Trends

The Meat Snacks Category is large ($2.1 billion) and growing . . .

• Dollar sales have more than quadrupled in the past ten years – more than doubled since 1997.

• One of the fastest growing segments in the Shelf-Stable Snacks Category.

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 6: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Size/Trends

With $2.1 billion in retail sales, Meat Snacks is now the third largest segment in the Salted Snacks Category . . .

Meat Snacks is larger than . . .

•Snack Nuts ($1.9 billion)•Microwave Popcorn ($1.3 billion) •Pretzels ($1.3 billion)•Cheese Snacks ($1.1 billion)

Meat Snacks is only surpassed in size by Potato Chips ($6 billion) and Tortilla/Tostada Chips ($4.5 billion).

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 7: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Reasons For Category Growth

• More active, healthier lifestyles have created a growing demand for snacks like beef jerky that are good tasting, nutritious and convenient.

• The increase in low-fat and carb-crazed dieters (i.e., Atkin’s Diet, South Beach, “Dr. Phil” McGraw’s diet, Zone diet etc.).

• Retail availability has expanded into all classes of trade.

• Ongoing introductions of new products and line extensions (new flavors, meat ingredients and forms).

• Increased category advertising, primarily on the part of GoodMark Foods, Inc. in support of Slim Jim products.

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 8: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Other

Vending

Foodservice

Drug Store

Club Store

Supermarket

Grocery Store

Mass Merchandiser

Convenience Store

Meat Snacks by Outlet Type -% Dollar ShareMeat Snacks by Outlet Type -% Dollar Share

Source: Snack Food Association, Information Resources, Inc.

Meat Snack Sales By Outlet Type

• Meat snacks are sold everywhere – from truck stops to office supply stores to health stores.

• Convenience Stores represent the primary outlet with a 45.4% share; however, other classes of trade are gaining in importance.

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 9: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Shares by Category Segments

According to Mintel (leading supplier of consumer intelligence), Beef Jerky is the largest segment in the Meat Snacks Category with a 44.0% share of dollar sales, followed by Meat Sticks with a 33.5% share.

% Total Beef Jerky Dollar Sales

Natural Beef Jerky 44.0%

Meat Sticks 33.5%

All Other 22.5%

Source: Mintel – 2002 Sales (all classes of trade)

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 10: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Beef Jerky Segment Trends

Based on supermarket trends, the Beef Jerky segment (+14%) has been the driving force behind the category’s growth, because it provides what “on-the-go” lifestyles are searching for – taste, nutrition (low carbs) and convenience.

• Meat Sticks and A/O are also growing.

Meat Snack Segments – Dollar Sales Vs. Y/A

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/03

0%

2%

4%

6%

8%

10%

12%

14%

16%

Natural BeefJerky

Meat Sticks All Other

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 11: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Shares by Flavor

The Original, Teriyaki and Peppered flavors make up 76.1% of total Beef Jerky sales in supermarkets.

– The remaining flavors (e.g., Hickory Smoked, Jalapeño, Sweet and Hot, etc.) comprise the remaining share.

% Total Beef Jerky Dollar Sales

Peppered 17.5%

All Other 33.5%

Teriyaki 23.7%

Original & Regular 34.9%

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 12: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Supermarkets – Leading Beef Jerky Brands

In the Beef Jerky Segment, four brands comprise almost 90% of total retail sales.

• OBERTO is the leader with a 42.7% share, with Pemmican a distant second with a 20.5% share.

Beef Jerky Leading Brands % Share

Bridgford9.3%

Jack Link's19.9%

A/O7.6%

Pemmican20.5%

OBERTO42.7%

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/03

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 13: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Supermarkets – Leading Beef Jerky Brands

OBERTO’s dominant share is strictly a function of its retail distribution advantage over other beef jerky brands, achieved through its alliance with Frito-Lay . . .

Beef Jerky Leading Brands% ACV Distribution

83%

50%

41%44%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

OBERTO Pemmican JackLinks

Bridgford P/L

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Meat Snacks Category OverviewMeat Snacks Category Overview

Page 14: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Major Reasons for Professional’s Favorite Meat

Snacks

Page 15: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Major reasons why Advance Auto parts should institute a Corporate Brand Meat Snacks program, under the Professional’s Favorite brand name, include . . .

• Category is large and expanding . . . Growing popularity of high protein/low carb foods will fuel this growth for the long-run.

• Professional’s Favorite Cashews program has been highly successful.

• The customer profile of Advance Auto Parts mirrors the profile of the heavy user of meat snacks.

• Provides an effective means for Advance Auto Parts to

strengthen the equity of the Professional’s Favorite brand program within the large and growing snacks category.

• Corporate Brand Meat Snacks is growing within the supermarket class of trade - Wal-Mart, Weis Markets, Meijer Supermarkets, ALDI, Giant Eagle, Save-A-Lot and other major grocery store chains have corporate brand programs in place or in progress.

Reasons for A Corporate Reasons for A Corporate Brand Meat Snacks ProgramBrand Meat Snacks Program

Page 16: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Qualifications of Knauss Snack Food Company

Page 17: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

1. Three Manufacturing Facilities1. Three Manufacturing Facilities

Knauss Snack Food Company has three manufacturing facilities . . .

– This is important in the event that there is ever a need for one producing factory to serve as a back-up to another.

• Martinsville, VA

Our new facility in Martinsville, VA is our primary producing factory of Corporate Brand Meat Snacks.

– Dedicated exclusively to Meat Snacks– Provides necessary capacity to become the premier supplier of Corporate Brand Meat Snacks– State-of-the-art equipment– 100,000 square feet

200 Knauss Drive

Martinsville, VA 24112

Quakertown, PA Facilities

Other producing factories include our Quakertown facilities:

625 East Broad Street 10 West Paletown Road

Quakertown, PA 18951 Quakertown, PA 18951

Page 18: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

We have two shipping locations . . .

•200 Knauss DriveMartinsville, VA 24112

•118 Hellertown RoadQuakertown, PA 18951

We have a distribution network in place that ensures that customer orders can be delivered in a timely and cost effective manner with relatively (a) short lead times and (b) small minimum orders.

2. Two Shipping Locations2. Two Shipping Locations

Page 19: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

3. Full-Line Meat Snacks Supplier3. Full-Line Meat Snacks Supplier

We produce and market a full-line of Meat Snacks under the Bull’s brand name.

– Any of our items can be made available for the Professional’s Favorite brand name.

Page 20: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

4. Extensive Corporate Brand Experience4. Extensive Corporate Brand Experience

After just 1½ years following implementation of our Corporate Brand Meat Snacks program, we now have five major Corporate Brand retail customers, and others in progress . . .

Page 21: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

In addition to producing Dried Beef under the Knauss brand name, Knauss Foods has demonstrated success in supplying Corporate Brand Dried Beef to grocery retailers . . .

4. Extensive Corporate Brand Experience4. Extensive Corporate Brand Experience

Page 22: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

We also partner with and supply Corporate Brand Meat Snacks for several well-known manufacturers, including, but not limited to, the following . . .

MARTIN'S POTATO CHIPS

4. Extensive Corporate Brand Experience4. Extensive Corporate Brand Experience

Page 23: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Knauss Foods also supplies Corporate Brand Dried Beef to manufacturers, including . . .

4. Extensive Corporate Brand Experience4. Extensive Corporate Brand Experience

Page 24: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Knauss Foods also supplies Corporate Brand Dried Beef to manufacturers, including . . .

4. Extensive Corporate Brand Experience4. Extensive Corporate Brand Experience

Page 25: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

A consumer panel test showed that Knauss Corporate Brand Beef Jerky is as good or better than three leading national brands and a major store brand competitor (Mirab).

– Test conducted by independent testing firm - North Cliff Consultants, Inc., Cincinnati, OH in December, 2002.

– Brands tested included Knauss Corporate Brand, Pemmican, Jack Link’s, Oberto and Mirab Corporate Brand.

– Original flavor tested (top selling flavor in beef jerky category).

– Panel was screened to include only beef jerky consumers.

– Sequential Monadic study design – Knauss Store Brand Beef Jerky tested against each brand (all brands tested blindly).

– Key attributes tested included appearance, overall liking, flavor and texture.

– Panelists required to give an overall preference of Knauss Corporate Brand Beef Jerky versus the other brands on a one-to-one basis.

5. Superior Product Quality5. Superior Product Quality

Page 26: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Overall Preference (%)

Jack Link’s 26.9

No Preference

7.4

Knauss 65.7

Attribute RatingsAverage Score*

6.9

6.2 6.35.9

6.3 6.25.7

7.5

Overall Liking Appearance Flavor Texture

Knauss Jack Link's

* 9-Point Scale – 9 Means “Like Extremely”, 1 Means “Dislike Extremely”

Consumer Panel Test Results – Knauss Versus Jack Link’s

Knauss Corporate Brand Beef Jerky was significantly preferred over Jack Link’s.

– Knauss received significantly higher scores on overall liking, flavor and texture – appearance ratings were not significantly different.

5. Superior Product Quality5. Superior Product Quality

Page 27: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Overall Preference (%)

Oberto22.3

No Preference

7.6

Knauss 70.1

Attribute RatingsAverage Score*

6.9 6.76.2

5.34.6

5.85.3

7.3

Overall Liking Appearance Flavor Texture

Knauss Oberto

* 9-Point Scale – 9 Means “Like Extremely”, 1 Means “Dislike Extremely”

Consumer Panel Test Results – Knauss Versus Oberto

Knauss Corporate Brand Beef Jerky was significantly preferred over Oberto.

– Knauss received significantly higher scores on all attributes - overall liking, appearance, flavor and texture.

5. Superior Product Quality5. Superior Product Quality

Page 28: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Overall Preference (%)

Knauss 49.3Pemmican

43.4

No Preference

7.3

Attribute RatingsAverage Score*

6.6

6.2

7.0

6.1

6.3

5.9

6.3 6.3

Overall Liking Appearance Flavor Texture

Knauss Pemmican * 9-Point Scale – 9 Means “Like Extremely”, 1 Means “Dislike Extremely”

Consumer Panel Test Results – Knauss Versus Pemmican

Knauss Corporate Brand Beef Jerky was preferred over Pemmican, but the preference was not statistically significant.

– Knauss received a significantly higher score on flavor – texture, appearance, and overall liking ratings were not significantly different.

5. Superior Product Quality5. Superior Product Quality

Page 29: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Overall Preference (%)

No Preference

7.6

Knauss67.1

Mirab 25.3

Attribute RatingsAverage Score*

6.9 6.8 6.66.0

4.9

6.2 6.2

7.3

Overall Liking Appearance Flavor Texture

KnaussMirab * 9-Point Scale – 9 Means “Like Extremely”, 1 Means “Dislike Extremely”

Consumer Panel Test Results – Knauss Versus Mirab

Knauss Corporate Brand Beef Jerky was significantly preferred over Mirab Corporate Brand.

– Knauss received a significantly higher score on overall liking, appearance and flavor – texture rating not significantly different.

5. Superior Product Quality5. Superior Product Quality

Page 30: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

• Value Pricing

– Knauss Snack Food Company will provide pricing on Professional’s Favorite Meat Snacks that will support retail prices significantly below the leading national brands.

– Knauss Snack Food Company will offer Advance Auto Parts a price on Corporate Brand Beef Jerky that will yield a 34 to 50% price differential versus the leading national brands, while providing attractive gross margins.

6. Value Pricing6. Value Pricing

Page 31: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Knauss Snack Food Company offers a menu of merchandising tools to support the introduction and ongoing management of Professional’s Favorite Meat Snacks . . .

These tools are designed to:

• Build awareness and promote trial of Professional’s Favorite Meat Snacks.

• Capitalize on the huge impulse sales potential of Meat Snacks.

• Maximize the sales and profits of Professional’s Favorite Meat Snacks per square foot of store space.

7. Menu of Merchandising 7. Menu of Merchandising SolutionsSolutions

Page 32: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

These high impact and space efficient merchandising tools include . . .

Beef Jerky Beef Jerky Pre-Packed Pre-Packed Meat Sticks Pre-

Assembled Display Boxes Shipper Pre-Packed Shipper Clip Strips

7. Menu of Merchandising Solutions7. Menu of Merchandising Solutions

Page 33: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

99% Customer Service Level

Providing high quality products and consistently meeting the service requirements of our customers have been at the core of our business since 1902.

• We will partner with Advance Auto Parts in developing a production plan to meet anticipated sales.

• We have an infrastructure in place to ensure customer orders are delivered in full/on time and accurately invoiced.

8. “Best in Class” Customer Service8. “Best in Class” Customer Service

Page 34: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Customized Plan for Professional’s Favorite Meat

Snacks

Page 35: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

•Variety Assortment

It is recommended that the Professional’s Favorite Meat Snacks line consist of

the following varieties:

1. 4 oz. Beef Jerky in the Original, Teriyaki and Peppered Flavors

Rationale: The 4 oz. size represents over 90% of total beef jerky sales, while

these three flavors represent nearly 80% of total sales.

2. 0.90 oz. Beef Sticks in Original flavor

Rationale: Number 1. selling variety of all Meat Snacks (including Beef Jerky)

in the supermarket class of trade in terms of unit sales (Number 3. in dollar

sales).*

3. 15 Count 5 oz. Original Meat Sticks in a canister

Rationale: Generates a higher ring and is the Number 3. selling variety in the

Meat Snacks Category in dollar sales (Number 4. in unit sales).*

*Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Customized PlanCustomized Plan

Page 36: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

•Variety Assortment (continued)

Other varieties for consideration include:

– 4 oz. Sweet Barbecue Beef Jerky

– 2 oz. Beef Jerky in Original, Teriyaki, Peppered and Sweet Barbecue flavors

– 0.90 oz. Meat Sticks in Mild and Hot ‘n Spicy flavors

– 15 count 5 oz. Canister of Meat Sticks in Mild and Hot ‘n Spicy flavors

Customized PlanCustomized Plan

Page 37: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Delivered Price

Size/ Variety Pack Size Unit Case/ Caddy

4 oz. Natural Beef Jerky Bags

Original Teriyaki Peppered Sweet Barbecue

12 bags Per Case

$2.20

$26.40

2 oz. Natural Beef Jerky Bags

Original Teriyaki Peppered Sweet Barbecue

12 bags Per Case

$1.20

$14.40

0.90 oz. Meat Sticks

Original Mild Hot ‘n Spicy

24 sticks to a Display Caddy

$0.345

$8.28

15 Count 5 oz. Canister Meat Sticks

Original Mild Hot ‘n Spicy

12 canisters Per Case

$1.72

$20.64

Pricing

We are offering the following delivered base prices on Professional’s Favorite Meat Snacks . . .

Professional’s Favorite Meat Snacks Delivered Base Prices

Customized PlanCustomized Plan

Page 38: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Size/ Variety

Unit Cost

SRP

Gross Profit

% Gross Margin

4 oz. Natural Beef Jerky Bags

Original Teriyaki Peppered Sweet Barbecue

$2.20

$3.98

$1.78

45%

2 oz. Natural Beef Jerky Bags

Original Teriyaki Peppered Sweet Barbecue

$1.20

$1.97

$0.77

39%

0.90 oz. Meat Sticks

Original Mild Hot ‘n Spicy

$0.345

$0.58

$.235

41%

15 Count 5 oz. Canister Meat Sticks

Original Mild Hot ‘n Spicy

$1.72

$2.88

$1.16

40%

Pricing (continued)

These delivered prices can support attractive retail prices for customers of Advanced Auto Parts at attractive profit margins . . .

Professional’s Favorite Meat Snacks Proposed Retail Pricing and Profitability

Customized PlanCustomized Plan

Page 39: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Professional’s Favorite Meat Snacks National Brands Pricing Comparison

Retail Price

Size/ Variety Professional’s

Favorite

Oberto Slim J im

Variance

% Variance

4 oz. Beef Jerky

$3.98 $5.98 N/A -$2.00 -50%

2 oz. Beef Jerky

$1.97 $2.97 N/A -$1.00 -34%

0.9 oz. Beef Sticks

$0.58 N/A $0.98 -$0.40 -41%

5 oz. Canister Meat Sticks

$2.88

N/A N/A N/A N/A

Pricing (continued)

These delivered prices permit a substantial retail price advantage versus the national brands currently stocked by Advance Auto Parts, with the added benefit of superior product quality . . .

Customized PlanCustomized Plan

Page 40: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

In closing . . .

1. The size, growth and emerging consumer demographic of the Meat Snacks category represents a major growth opportunity for a Professional’s Favorite Meat Snacks program.

2. Knauss Snack Food Company is the right supplier to partner with to exploit this opportunity, because of:

Our location – we are neighbors. Our excellent product quality and competitive

pricing. Our efficient and effective distribution infrastructure. Our menu of merchandising solutions. Our corporate brand marketing expertise. Our strong commitment to become the premier

supplier of corporate brand meat snacks.

SummarySummary

Page 41: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Appendix

IRI Retail Sales Scan Data

Page 42: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Meat Snacks IRI DataMeat Snacks IRI Data

Three Meat Stick varieties are among the top twenty selling (dollar sales) Meat Snack items . . .

Top Twenty Meat Snack ItemsRetail Dollar Sales

Rank Variety Dollar Sales% Change Vs. Year

Ago

1 OBERTO REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ $16,003,870 22.2

2 OBERTO HICKORY SMOKED BEEF JERKY RESEALBL PLSTC PG BG 4OZ $11,539,820 1.6

3 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNA1001001CK 5OZ $7,627,627 16.3

4 OBERTO PEPPERED BEEFSTEAK JERKY 4OZ $7,419,671 31.8

5 SLIM JIM SPICY BEEF JERKY PLASTIC WRAPPED 0.97OZ $6,937,250 12.0

6 OBERTO TERIYAKI BEEFSTEAK JERKY 4OZ $6,454,926 30.4

7 SLIM JIM MILD CHICKEN AND BEEF DRIED MEAT SNACK 5OZ $5,987,828 16.3

8 BRIDGFORD REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ $5,717,797 (3.6)

9 JACK LINKS REGULAR BEEF JERKY RESEALBL PLSTC PG BG 4OZ $5,673,590 28.73

10 PEMMICAN HICKORY SMOKED BEEFSTEAK JERKY 4OZ $4,581,781 (0.5)

11 JACK LINKS TERIYAKI BEEF JERKY RESEALBL PLSTC PG BG 4OZ $4,396,189 35.1

12 ARMOUR REGULAR BEEF DRIED MEAT SNACK GLASS JAR 4.5OZ $3,949,577 2.8

13 PEMMICAN TERIYAKI BEEFSTEAK JERKY 4OZ $3,923,099 0.5

14 PEMMICAN PEPPERED BEEFSTEAK JERKY 4OZ $3,671,336 2.1

15 JACK LINKS PEPPERED BEEF JERKY PLASTIC PEG BAG 4OZ $3,523,701 34.4

16 OBERTO BARBECUE BEEFSTEAK JERKY RESEALABLE PEG BAG 4OZ $3,333,306  

17 ARMOUR REGULAR BEEF DRIED MEAT SNACK 2.25OZ $3,127,406 2.4

18OLD WISCONSIN REGULAR BEEF SAUSAGE DRIED MEAT SNACK PLASTIC WRAP 5.6OZ $2,755,911 10.9

19 LOWREYS REGULAR BEEF JERKY CANISTER 3.7OZ $2,311,454 (5.4)

20 HORMEL REGULAR BEEF DRIED MEAT SNACK JAR 5OZ $2,299,227 (6.0)

Page 43: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Seven Meat Stick varieties rank among the top twenty Meat Snack items in unit sales, with Spicy .97 oz. being first . . .

Top Twenty Meat Snack ItemsUnit Sales

Rank Variety  Unit Sales% Change Versus Year

Ago

1 SLIM JIM SPICY BEEF JERKY PLASTIC WRAPPED 0.97OZ 7,116,004 12.50

2 OBERTO REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ 2,883,649 24.62

3 RUSTLERS SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.64OZ 2,627,335 (17.08)

4 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 5OZ 2,320,298 14.86

5 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.28OZ 2,178,399 37.34

6 OBERTO HICKORY SMOKED BEEF JERKY RESEALBL PLSTC PG BG 4OZ 2,078,044 3.72

7 ARMOUR REGULAR BEEF DRIED MEAT SNACK 2.25OZ 2,004,527 0.70

8 SLIM JIM MILD CHICKEN AND BEEF DRIED MEAT SNACK 5OZ 1,821,757 14.73

9 ARMOUR REGULAR BEEF DRIED MEAT SNACK GLASS JAR 4.5OZ 1,419,822 3.07

10 SLIM JIM SMOKED AND SPICY CHICKEN AND BEEF DRIED MEAT SNACK 1.4OZ 1,390,998 (9.85)

11 OBERTO PEPPERED BEEFSTEAK JERKY 4OZ 1,340,587 34.80

12 RUSTLERS REGULAR BEEF JERKY PLASTIC WRAPPED 0.31OZ 1,196,425 (9.86)

13 OBERTO TERIYAKI BEEFSTEAK JERKY 4OZ 1,165,314 33.58

14 JACK LINKS REGULAR BEEF JERKY RESEALBL PLSTC PG BG 4OZ 1,115,508 27.42

15 OLD WISCONSIN REGULAR BEEF SAUSAGE DRIED MEAT SNACK PLASTIC WRAP 5.6OZ 1,038,287 9.53

16 SLIM JIM MILD CHICKEN AND BEEF DRIED MEAT SNACK BOX 1.4OZ 987,519 (12.52)

17 BRIDGFORD REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ 986,404 (4.35)

18 PEMMICAN HICKORY SMOKED BEEFSTEAK JERKY 4OZ 915,889 (0.16)

19 SUPER SLIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.64OZ 875,563 (23.53)

20 JACK LINKS TERIYAKI BEEF JERKY RESEALBL PLSTC PG BG 4OZ 854,199 35.90

Meat Snacks IRI DataMeat Snacks IRI Data

Page 44: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

.97 oz Meat Sticks rank sixth among all Meat Snack items in dollar sales rate . . . This is in spite of an average price per unit of $0.97 versus $2.77 for the average Meat Snack item . . .

Top Twenty Meat Snack ItemsDollar Sales Per Point of Wtd. ACV Distribution

Rank ariety Dollar SalesACV Wtd

Dist$ Sales Per Point of

ACV DistributionIndex to Average Meat Snack Item

1 PRIVATE LABEL BRAND REGULAR BEEF JERKY PLASTIC BAG 4OZ $450,629 1.4 $322,315 382

2 KNAUSS REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 4OZ $555,204 1.8 $305,477 362

3 PRIVATE LABEL BRAND TERIYAKI BEEF JERKY PLASTIC BAG 4OZ $416,267 1.6 $265,257 314

4 HABBERSETT REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 3OZ $450,144 1.9 $232,512 275

5 OBERTO REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ $16,003,870 83.4 $192,001 227

6 SLIM JIM SPICY BEEF JERKY PLASTIC WRAPPED 0.97OZ $6,937,250 40.5 $171,161 203

7 OLD WISCONSIN REGULAR BEEF SAUSAGE DRIED MEAT SNACK PLASTIC WRAP 5.6OZ $2,755,911 17.6 $156,272 185

8 OBERTO TERIYAKI BEEFSTEAK JERKY 4OZ $6,454,926 43.3 $149,194 177

9 OBERTO HICKORY SMOKED BEEF JERKY RESEALBL PLSTC PG BG 4OZ $11,539,820 80.3 $143,710 170

10 KNAUSS REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 3OZ $1,004,070 7.2 $139,689 165

11 JACK LINKS REGULAR BEEF JERKY RESEALBL PLSTC PG BG 4OZ $5,673,590 41.4 $136,888 162

12 OBERTO PEPPERED BEEFSTEAK JERKY 4OZ $7,419,671 56.2 $132,132 157

13 ARMOUR REGULAR BEEF DRIED MEAT SNACK GLASS JAR 4.5OZ $3,949,577 30.1 $131,182 155

14 BRIDGFORD REGULAR BEEF JERKY PLASTIC PEG BAG 4OZ $5,717,797 44.0 $129,976 154

15 JACK LINKS ORIGINAL BEEF JERKY PLASTIC BAG 8OZ $862,667 6.6 $129,789 154

16 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 5OZ $7,627,627 59.2 $128,856 153

17 OBERTO ORIGINAL TURKEY JERKY PLASTIC PEG BAG 4OZ $618,019 4.9 $127,170 151

18 JACK LINKS TERIYAKI BEEF JERKY PLASTIC PEG BAG 8OZ $691,164 5.7 $120,450 143

19 PEMMICAN TERIYAKI BEEF JERKY PLASTIC BAG 8OZ $1,172,063 9.9 $118,789 141

Meat Snacks IRI DataMeat Snacks IRI Data

Page 45: Professionals Favorite Meat Snacks The Ideal Complement to Professionals Favorite Cashews Presented By Knauss Snack Food Company

Source: Information Resources, Inc. – 52-Weeks Ending 11/02/04

Rank Variety Unit SalesAverage Price

ACV Wtd Dist (%)

Annual Unit Sales Per Point of ACV

Distribution

Index to Average

Meat Snack Item

1 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.28OZ 2,178,399 $0.24 5.0 438,354 2165

2 RUSTLERS SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.64OZ 2,627,335 $0.48 12.7 206,913 1022

3 SLIM JIM SPICY BEEF JERKY PLASTIC WRAPPED 0.97OZ 7,116,004 $0.97 40.5 175,572 867

4 RUSTLERS REGULAR BEEF JERKY PLASTIC WRAPPED 0.31OZ 1,196,425 $0.48 7.3 164,979 815

5 KNAUSS REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 4OZ 221,614 $2.51 1.8 121,933 602

6 HABBERSETT REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 3OZ 228,069 $1.97 1.9 117,804 582

7 SUPER SLIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 0.64OZ 875,563 $0.76 8.0 108,844 537

8 PRIVATE LABEL BRAND REGULAR BEEF JERKY PLASTIC BAG 4OZ 117,660 $3.83 1.4 84,157 416

9 KNAUSS REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 3OZ 505,726 $1.99 7.2 70,358 347

10 PRIVATE LABEL BRAND TERIYAKI BEEF JERKY PLASTIC BAG 4OZ 108,980 $3.82 1.6 69,445 343

11OLD WISCONSIN REGULAR BEEF SAUSAGE DRIED MEAT SNACK PLASTIC WRAP

5.6OZ 1,038,287 $2.65 17.6 58,875 291

12 ARMOUR REGULAR BEEF DRIED MEAT SNACK 2.25OZ 2,004,527 $1.56 35.3 56,774 280

13 SLIM JIM MILD CHICKEN AND BEEF DRIED MEAT SNACK 0.97OZ 509,782 $1.00 10.1 50,611 250

14 ARMOUR REGULAR BEEF DRIED MEAT SNACK GLASS JAR 4.5OZ 1 1,419,822 $2.78 30.1 47,158 233

15SLIM JIM REGULAR//CHEESE BEEF DRIED MT & CHES SNAK PLASTIC WRAPP

1.5OZ 683,226 $1.12 14.8 46,223 228

16 OLD WISCONSIN REGULAR BEEF DRIED MEAT SNACK PLASTIC WRAPPED 2OZ 563,931 $1.05 12.3 46,010 227

17 ARMOUR REGULAR BEEF DRIED MEAT SNACK 2.25OZ 273,414 $1.56 6.0 45,350 224

18 SLIM JIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 5OZ 2,320,298 $3.29 59.2 39,198 194

19SLIM JIM SMOKED AND SPICY CHICKEN AND BEEF DRIED MEAT SNACK

1.4OZ 1,390,998 $1.23 36.1 38,484 190

20 SUPER SLIM SPICY CHICKEN AND BEEF DRIED MEAT SNACK 1.28OZ 704,125 $1.27 18.5 37,999 188

Eight Meat Stick items fall in the top twenty of all Meat Snack items in terms of unit sales rate . . .

Top Twenty Meat Snack ItemsUnit Sales Per Point of Wtd. ACV Distribution

Meat Snacks IRI DataMeat Snacks IRI Data