Arnott’s is a very large and important brand
in Australia
Savory Crackers
Sweet Biscuits
Chocolate Biscuits
• Value Market Share 60%
• Household penetration 95%
• Best known umbrella food brand
126
Arnott’s has the top two brands in each
segment
FY 2009 Cookie and Cracker Segments
SOM (1)
Savory
y
Crackers
SOM
Sweet
Biscuits
SOM
44%
10%
43%
15%
9%
12%
Chocolate
Biscuits
(1) Value share of segment
segment, rounded
rounded, FYTD 03/26/10
127
Arnott’s has the top two brands in each
segment
FY 2009 Cookie and Cracker Segments
SOM (1)
Savory
y
Crackers
SOM
Sweet
Biscuits
SOM
44%
10%
43%
15%
9%
12%
% of
Arnott’s
net sales
Chocolate
Biscuits
40%
(1) Value share of segment
segment, rounded
rounded, FYTD 03/26/10
128
Arnott’s has the top two brands in each
segment
FY 2009 Cookie and Cracker Segments
SOM (1)
Savory
y
Crackers
SOM
Sweet
Biscuits
SOM
44%
10%
43%
15%
9%
12%
% of
Arnott’s
net sales
40%
Chocolate
Biscuits
38%
(1) Value share of segment
segment, rounded
rounded, FYTD 03/26/10
129
Arnott’s has the top two brands in each
segment
FY 2009 Cookie and Cracker Segments
SOM (1)
Savory
y
Crackers
SOM
Sweet
Biscuits
SOM
44%
10%
43%
15%
9%
12%
% of
Arnott’s
net sales
40%
38%
Chocolate
Biscuits
22%
(1) Value share of segment
segment, rounded
rounded, FYTD 03/26/10
130
Arnott’s financial performance 2004-2009:
Consistency and underlying strengths are evident
Market Share
UP
Organic Net Sales UP
131
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
– Divested Snackfoods
– Exited unprofitable private label
– Divested/restructured
peripheral operations
132
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
– Divested Snackfoods
– Exited unprofitable private label
– Divested/restructured
peripheral operations
– Consolidated manufacturing
Marleston Plant
Huntingwood Plant
Virginia Plant
Bekasi Plant
133
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
2 Restructured management
2.
– Eliminated stranded overhead
– Consolidated
C
lid t d sales
l fforce
– Streamlined administration
134
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
2 Restructured management
2.
3. Restructured Route-to-Market to warehouse system
– Highly concentrated retail trade
– Two retail competitors combined SOM 80%
– Warehouse system more effective and efficient
135
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
2 Restructured management
2.
3. Restructured Route-to-Market to warehouse system
4. Grew core brands
– Effective marketing
– Astute trade promotion
– Exceptional merchandising
136
Five factors have played a role in driving
Arnott’s growth
1. Refocused on core biscuit portfolio in Australia
2 Restructured management
2.
3. Restructured Route-to-Market to warehouse system
4. Grew core brands
5. Invested in a Pilot Plant and Innovation Center
137
Arnott’s attracted new consumers
138
Arnott’s added almost 1 million new
households to its Vita-Weat base
139
Shapes Sensations continues to live up to
its promise
140
Arnott’s is sustaining its momentum
FY 2010 Q3 YTD
Volume
UP
Market Share
UP
Net Sales
UP
Margins
UP
Operating Income
UP
141
Product innovation has been a big
contributor to growth this year
• Arnott’s most
successful launch
142
Product innovation has been a big
contributor to growth this year
• Arnott’s most
successful launch
• Increased household
penetration
• Increased repeat buyers
143
TIM TAM COMMERCIAL
“LAST TIME” 30 SECS
144
Continued good growth opportunities
for Arnott’s
• Adjacent, much larger categories
• New forms
• New textures
• New flavors
• New packaging
145
In savory biscuits, Arnott’s has already
started
• $100 million segment
• On
O trend
d and
d growing
i
• Focused on health and wellness
146
Arnott’s Vita-Weat Rice Crackers are
competitively advantaged
Many rice crackers need to add flavor
enhancers to taste great. We don’t.
Many Rice Crackers
Vita-Weat Rice Crackers
R fi d Whit
Refined
White Ri
Rice
B
Brown
Ri
Rice
White & Shiny
Golden Brown
Flavor Enhancers
Real Chives
Added MSG
Real Cheddar
147
Vita Weat RICE CRACKER
Vita-Weat
LAUNCH COMMERCIAL
30 SECS
148
In sweet biscuits, we see a big incremental
opportunity in extending into cooking
149
In chocolate biscuits, we see another big opportunity
by sourcing from adjacent confectionery category
150
In chocolate biscuits, we see another big opportunity
by sourcing from adjacent confectionery category
• New
Ne flavors
fla ors
• New forms
• Lighter style
• New convenience packages
151