Foodservice

1. Foodservice 2013 Technomic Trends and Training Session February, 2013

2. Consumer Perspective: Trends in pork

3. A Vast Majority of Consumers Report Eating Pork at Least Once Every Three Months Which of the following types of meat do you eat occasionally (at least once every 90 days), either as an entrée, or as an entrée ingredient or topping? Select all that apply. (by age) Base: 1,500 consumers aged 18+ % Overall 98% 97% 81% 61%

4. Most Pork Consumers Include Pork in Their Weekly Diet, Particularly for Breakfast & Dinner Base: 1,211 consumers aged 18+ who eat pork at least occasionally (base includes some terminated respondents) and 995 consumers aged 18+ who eat pork at least once every two to three weeks Overall Pork Consumption Frequency Pork Consumption by Daypart (by gender, once a week+) % Overall 55% 41% 51% 24%

5. Technomic Predicts: Top trends in 2013

6. Top Foodservice Trends for 2013 • Vegetables take their star turn.As more diners discover the joys of occasional meatless meals, the flirtation with vegetarian fare evolves into flexitarian fascination with actual vegetables. That means not only innovative salads but also creative presentations of roasted or steamed veggies, even the assertive ones like carrots, kale or Brussels sprouts. Vegetables at the center of the plate are welcomed by diners—who continue to seek fresh, local, healthful fare—as well as operators squeezed by rising costs for proteins. • Great grains.Recognized as nutrition powerhouses—packed with protein as well as texture and full, rich taste—grains are also playing star roles on trendy menus. Dishes like polenta, couscous or bulgur are central to some of today’s hottest ethnic cuisines. And a number of grains—quinoa, amaranth, millet, wild rice, corn, oats and buckwheat—do not contain gluten, so they’re being nudged to the fore as part of the movement to gluten-free eating. • Chicken surprise.Yes, chicken is ubiquitous thanks to its always-reasonable price and remarkable versatility, but now it’s actually trendy as well. New quick-service and fast-casual fried-chicken concepts are popping up, offering Southern or spicy takes on a classic. And now that Latin-accented marinated chicken has established a niche, African peri-peri chicken may be next. Powered By:

7. Top Foodservice Trends for 2013 (continued) • Snacking nation.Habits of around-the-clock eating, the street-food/food-truck craze, consumers’ demand for flexible portions and prices, and operators’ need to move beyond price-cutting on core menu items all combine to make snack fare a key trend. Tapas, mezze and upscale bar bites in full-service restaurants are matched by flavorful novelties in limited-service restaurants, from Spicy Chicken McBites at McDonald’s and Chicken Littles at KFC to mini corn dogs at Jack in the Box and cheesecake bites at SONIC. • More is more.On the other hand, there’s an opposite value-as-volume movement. Look for more deals like Pizza Hut’s Big Dinner Box (two pizzas with multiple sides) or Olive Garden’s Dinner Today & Dinner Tomorrow (a dine-in meal plus a to-go meal), as well as multi-course feasts for two, four or more—even whole-hog pig roasts. • Retro rising: diner and deli fare.Concepts of many types are looking to the menus of traditional and contemporary diners and delis for inspiration. We’ll see a proliferation of premium diner- and deli-inspired meaty sandwiches, full-flavored soups, even pickles—from traditional dill cukes to pickled red onion. Powered By:

8. Top Foodservice Trends for 2013 (continued) • Noodle-shop noodles.Ramen done right is a long way from dorm fare; it’s nutritious, subtle, satisfying and redolent of exotic Far East street markets. Look for ramen, udon, soba, cellophane and rice noodles to show up in hearty layered bowls, fragrant soups and even mixed-texture salads, not only in a burgeoning number of big-city noodle shops but in seafood and varied-menu restaurants as well. • South America—the next frontier.Just as diners who love Asian fare have explored beyond Chinese to develop a taste for Thai and Vietnamese, those who favor Mexican are now looking south—all the way to Brazil, Argentina and Peru. We’ll see mainstreaming of South American-style grilled meats, chimichurri sauce, ceviche, South American-Asian fusion seafood dishes and iconic drinks, from Brazil’s caipirinha to Peru’s pisco sour. • Fast casual goes globe-trotting.Success in the exploding fast-casual sector is no longer limited to bakery cafés and Mexican concepts. Build-your-own-better-burger chains and gourmet brick-oven pizza restaurants have been on the rise for some time, but now we’re also seeing more ethnic foods and flavors—from American barbecue to Southeast Asian soups and sandwiches to Mediterranean and Middle Eastern fare. • Restaurants thirsty for differentiation turn to beverages.Trends include fresh fruit (especially tropical fruit) beverages; natural energy drinks; housemade sodas; cocktails made with candy-like flavored vodkas; microdistillery liquors that promote drinking locally; regional craft brews starring in beer-and-food pairings; and the rise of hard ciders. Powered By:

9. South American Cuisine: Pork versatility

10. Road Trip Mentality “Why do you eat ethnic foods and flavors instead of traditional foods?” Technomic 2012 Ethnic Food and Beverage Consumer Trend Report

11. The Flavor Spectrum: The Potential To Offer Something Different “Which Best Describes Your Preference For Ethnic Foods And Flavors?” -Ready For Trial- -Opportunity- -Everyday- Technomic 2012 Ethnic Food and Beverage Consumer Trend Report

12. The Flavor Spectrum: Opportunity & Ready For Trial Consumer Cuisine Perceptions Technomic 2012 Ethnic Food and Beverage Consumer Trend Report

13. Consumers Crave More Variety for Pork Offerings at Restaurants Base: Approximately 575 consumers aged 18+ who eat pork at least once every two to three weeks; bases vary slightly as statements were randomly rotated Respondents indicated their opinion on a scale of 1–6 where 1 = disagree completely and 6 = agree completely % Overall I would… 37% 29% 28% 26%

14. Tenderloin & Chops are Prominent for Dinner, while Pulled Pork is the Top Lunch Choice How likely would you be to order the following types of pork entrées for _____? (Top two box = likely and extremely likely) Base: Approximately 300 consumers aged 18+ who eat pork at least once every two to three weeks; bases vary slightly as options were randomly rotatedRespondents indicated their opinion on a scale of 1–6 where 1 = not at all likely and 6 = extremely likely

15. Grilled, Barbecued Most Common Preparation Methods for Both LSR & FSR Limited Service Full Service Base: 275 items in 228 FSRs in 2011; 283 items in 228 FSRs in 2012Source: Technomic MenuMonitor; July-Sep 2011, 2012 Base: 100 items in 235 LSRs in 2011; 96 items in 235 LSRs in 2012Source: Technomic MenuMonitor; July-Sep 2011, 2012

16. Cajun More Common Flavor with Pork in Limited Service, Hickory More Common in Full Service Limited Service Full Service Base: 100 items in 235 LSRs in 2011; 96 items in 235 LSRs in 2012Source: Technomic MenuMonitor; July-Sep 2011, 2012 Base: 275 items in 228 FSRs in 2011; 283 items in 228 FSRs in 2012Source: Technomic MenuMonitor; July-Sep 2011, 2012

17. New and Innovative Flavors, Particularly Those with a Global Influence, Appeal to Consumers I am interested in trying pork dishes made with _____. (by age, top two box = agree and agree completely) Base: Approximately 600 consumers aged 18+ who eat pork at least once every two to three weeks; bases vary slightly as statements were randomly rotated Respondents indicated their opinion on a scale of 1–6 where 1 = disagree completely and 6 = agree completely % Overall 36% 36%

18. Street Is Chic – Evolution Of Ethnic: Latin American Food Trucks Orlando, FL -Pupusa- Extra lean seasoned pork, refried beans, and mozzarella cheese

19. Fast Casual Goes Global: Flavor opportunities in pork

20. Global Fast Casual: Wow Bao • The main draw at Wow Bao is bao, or hot steamed buns filled with savory ingredients like spicy Kung Pao chicken or pulled pork. Bao are available individually (which makes them an ideal handheld snack), as part of a combo pack or in a combo meal, paired with cool pad Thai salad, Asian vegetable salad or spicy peanut noodles. • Other entrees include pot stickers in chicken, green vegetable or pork-and-cabbage varieties. Rice bowls are also on offer; they’re filled with jasmine rice, noodles or multigrain rice as well as a choice of meat or all vegetables. Rice bowls can also be served as part of a combo meal with either two bao or three pot stickers. • In addition, the chain now offers a breakfast menu. Breakfast bao are filled with barbecue pork; coconut custard; or eggs combined with bacon and Cheddar, spinach and mushroom, or spicy pork sausage. Rice bowls and oatmeal are also available. The chain’s lunch and dinner bao are available for $1.49 each as a snack, or in a six-pack for $8.49. Sweet dessert bao are a snack treat, and are filled with either coconut custard or chocolate

21. Global Fast Casual: Taziki’s Taziki’sfeatures Mediterranean-inspired dishes with a healthy twist. The menu kicks off with a variety of appetizers, including hummus, taziki (tzatziki) dip, pimento cheese, dolmades (stuffed grape leaves) and a combination platter. The chain menus a Greek salad of lettuce mix, tomatoes, cucumbers, roasted red peppers, red onions, pepperonicinis, Kalamata olives, feta cheese, Greek dressing and a choice of protein from a list that includes grilled chicken breast, chargrilled lamb, tiger shrimp, grilled tilapia and roasted turkey. A Mediterranean salad combines mixed lettuces with garbanzo beans, roasted pecans, roasted red peppers, red onions, diced tomatoes and feta cheese served with balsamic vinaigrette. Gyros, available in several varieties featuring signature meats and sauces, are served with chips and a side. A Mediterranean Deli section of the menu lists healthy Mediterranean-style sandwiches, all made with fresh ingredients. Other entrée possibilities are grilled or roasted meats, such as chargrilled lamb, grilled tilapia or herb-roasted pork loin, each served with a Greek salad and a choice of basmati rice or roasted new potatoes. A daily specials menu includes a rotating list of sandwiches. KEY NUMBERS 20112010 Sales ($000) $13,200$8,800 Units 168 AUV1,1001,100 HQ Location: Birmingham, Alabama Segment: Fast Casual Primary Distributor: Reinhart Foodservice

22. Pork Flavor Combinations to Satisfy the Most Consumers Base: 995 consumers aged 18+ who eat pork at least once every two to three weeks TURF Analysis reveals that consumers’ most preferred flavors of herbs, glazes and sauces paired with pork will satisfy the vast majority of consumers

23. Pork Entrées: Everyday Flavors Pork Base: 516 consumers aged 18+ Consumers were asked to rate sauces for up to three different types of entrées

24. Pork Entrées: Opportunity Flavors Pork Base: 516 consumers aged 18+ Consumers were asked to rate sauces for up to three different types of entrées

25. Pork Entrées: Ready for Trial Flavors Pork Base: 516 consumers aged 18+ Consumers were asked to rate sauces for up to three different types of entrées

26. Deli/Diner Fare Trend: Pork sandwiches

27. Pork Most Commonly Appears in Sandwiches on Top Chain Menus

28. Two-fifths of Consumers Eat Pork Sandwiches at Least Once a Week Base: 995 consumers aged 18+ who eat pork at least once every two to three weeks and 871 consumers aged 18+ who eat pork sandwiches Overall Pork Sandwich Consumption Frequency Pork Sandwich Consumption by Daypart

29. Deli Trend Meets “Give Me More” Trend Frisco, TX -Three Little Pigs-

30. Pork Sandwich Evolution Dallas, TX -Dead Elvis- Nutella, Peanut Butter, and Bacon on a Brioche Roll

31. Summary: Key takeaways

32. Key Takeaways • Consumers are seeking a wider range of flavors and ethnic cuisines • Ethnic Cuisines & Global Flavors.With its versatility in both flavors and formats, pork is poised to deliver on both ethnic and flavor trends. • Sandwiches are the most common pork entrées, although pork is also trending on pizzas, burgers and other main dish categories • Sandwich Proliferation.Whether pulled pork, ham, or bacon, pork sandwiches are a key menu staple and consumer favorite.