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Kroger Fresh Bin Program Mango Tango Test Recap April 12 – May 10, 2011

Kroger Fresh Bin Program Mango Tango Test Recap April 12 – May 10, 2011. Program Overview. Kroger’s Fresh Bin Program launched on April 12, 2011 for 4 weeks in 143 Southwest and Cincinnati division stores.

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Kroger Fresh Bin Program Mango Tango Test Recap April 12 – May 10, 2011

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  1. Kroger Fresh Bin Program Mango Tango Test Recap April 12 – May 10, 2011

  2. Program Overview Kroger’s Fresh Bin Program launched on April 12, 2011 for 4 weeks in 143 Southwest and Cincinnati division stores. Kroger’s Fresh Bin Program offers shoppers a “unique convenience” by featuring a produce item at the peak of season with a complementary shelf-stable product in a one-stop shop display bin, conveniently located in the produce department. This program seeks to deliver solutions at point-of-sale and offers simple recipes, easy prep tips, quick how-to’s and inspires versatile usage for both the grocery brand and the featured produce item. • POS Components • (1) Display ready bin pre-packed with Ritz crackers and instructions on how to cut a mango • (1) Header Card • Tear pads featuring Mango Tango Salsa recipe • Visual Impressions: • An estimated 1.7 million visual impressions of the bin during the promotional period* *Based on 1 bin at 143 stores with 4,000 shoppers per week for 4 weeks with 75% activation.

  3. CINCINNATIMANGO SALES 35,000 $1.40 30,000 $1.20 $1.19 $1.18 $1.13 $1.13 $1.15 $1.15 $1.16 $1.12 $1.00 25,000 $1.00 $0.99 $0.98 $0.98 $0.98 $0.97 20,000 $0.80 15,000 $0.60 10,000 $0.40 5,000 $0.20 0 $0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cincinnati Stores Comparative Lift Mango Unit Increase vs. Base Week 410% 450% 400% 350% 300% 220% 250% 200% 150% 100% 50% 0% BIN ONLY STORES NO BIN STORES Cincinnati Results Mangos Cincinnati Mango Sales/All Stores By Week Stores with bins out-performed remaining stores. Source: KCMSDW Store Panel Comparisons through Wk #14

  4. Ritz Cracker Price Change Current Last Year $ Chg % Chg $2.72 $1.76 $0.96 54.5% Southwest Cincinnati $2.56 $1.39 $1.16 83.6% Ritz Cracker Movement Change Movement % Movement Chg LY Current Cincinnati 46,232 -31.2 67,157 Southwest 50,028 -25.7 67,371 Ritz Crackers Results Ritz price increase negatively affected key sales comparisons. As a result, Ritz sales declined vs. same period last year. Source: KCMSDW Wk #11 through #14

  5. Cincinnati Stores Comparative Lift Ritz Unit Sales Index vs. Base Week 2.7% 3.0% 2.0% 1.0% Cincy Ritz All Other Stores 0.0% Cincy Ritz Bin Only Stores -1.0% -2.0% -2.0% -3.0% Southwest Stores Comparative Lift Ritz Unit Sales Index vs. Base Week SW Ritz Bin Only Stores SW Ritz All Other Stores -20.0% -22.0% -24.0% -26.0% -28.0% -30.0% -32.0% -32.0% -32.4% -34.0% Ritz Crackers Results Cincinnati bin execution resulted in slight growth while non-bin stores declined -2.0%. +4.7 PTS Both groups of Southwest stores showed similar declines.

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