Dry Packaged Dinners

Dry Packaged Dinners (DPD) is a large and mature category of $262MM that spans across several sub-segments. DPD has shown growth with 2.54% CAGR over the last 2 years1, as it has proven to be a popular meal option while consumers ate out less and consumed more meals at home2. Canadians are consuming and preparing meals differently with seven out of 10 consumers prepping and cooking dinner under 30 minutes with 50% of all food and beverage choices motivated by the convenienceoriented trend3 .

Macaroni & Cheese represents a whopping 70% of the DPD category sales with an average household penetration of 52.2% over the last two years4. In the last 52 weeks, DPD delivered over $260.4MM, up +17.7% compared to the year before. Macaroni & Cheese is driving this trend, growing +21.6% YOY behind the launch and growth of the new Cheetos line. Consumers are primarily loyal to the method of preparation they are used to (i.e. microwave vs. stovetop) driving low interaction between different formats. Macaroni & Cheese packaged meals also have a high degree of impulse for grocery categories with a split of 37% for unplanned purchases and 63% for planned purchases5 .

1 NielsenIQ MarketTrack Data – L52W Period Ending August 2022 2 Kraft Heinz Shopper Data, “Interaction between Product Groups as a function of Customers”, L52W March 2021 3 NPD Food Service Trends 2018. IPSOS Lumiere Study 4 KHC NielsenIQ Homescan Factbook L52W Period Ending Jul 02 22 5 IPSOS Lumiere Study. NielsenIQ Market Track Nat xNfld GB+DR+MM 2018.

HOUSEHOLD PENETRATION - MACARONI & CHEESE MACARONI & CHEESE IS GROWING IN IMPORTANCE IN THE DPD CATEGORY

MACARONI & CHEESE GROWTH IN SALES BUT DECLINE IN UNITS YOY DUE TO PRICE INFLATION

$ Share

48.7% 49.4% 52.2% 64.5 65.3 69.6

2020 2021 2022

Source: NielsenIQ, TOTAL National - L52W Period Ending July 2, 2022 2020 2021 2022

Source: NielsenIQ, TOTAL National - L52W Period Ending July 2, 2022

300

249,454,698 262,305,965

$ Units

MILLIONS

200

100

140,524,599 132,572,973

0

L52W YA

Source: NielsenIQ, TOTAL National - L52W Period Ending August 2022 L52W

Natural. Specialty. Fresh. Food Service.

From coast to coast, retailer to restaurant, we’ve got the solution.

We are Canadian leaders in grocery and food service distribution, but we’re so much more. We are curators of unique brands, helping to elevate brands in Canada and build customer demand through our appetite for fresh insights and data.