Dynamic change in nutrition and health & wellness markets and ever-shifting strategic developments in the food, pharmaceutical and consumer packaged goods industry continue to change the competitive framework of the industry. NCN and Sterling-Rice present and discuss recent market statistics, transactions and the top trends in the nutrition and health & wellness industry.

1. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 1

2. SRG
IS A BRAND STRATEGY,
INNOVATION, AND
CREATIVITY FIRM
+ Boulder-based, 130 people
+ Global capabilities
+ 28 years and going strong
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 2

3. Nutrition Business Journal: The leading business intelligence resource
for the global nutrition industry since 1996.
newhope360.com/
newhope360.com/

4. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 4

5. AGENDA & PARTICIPANTS
+ The Century at a Glance + John Grubb, Managing Partner,
SRG
+ Ancient Wisdom
+ Carlotta Mast, Senior Director of
Content and Insights at New
+ Transcendent Transparency Hope Natural Media
+ Deconstruction + Kevin Whitcher, Director of
Strategy, SRG
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 5

6. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 6

7. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 7

8. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 8

9. THE NATURAL We think of this world in three pieces—though the recession
slowed growth, the market is back to outpacing
PRODUCTS conventional and is beginning to reach real scale.
MARKETPLACE
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10. PRODUCT SEGMENTS
$87.8B NATURAL, ORGANIC
Condiments AND FUNCTIONAL FOOD
Packaged/prepared Dairy
foods AND BEV MARKET, 2011
Fruits and
Snack foods vegetables
Breads
$30.6B SUPPLEMENTS and grains $14.7B NATURAL LIVING
MARKET, 2011 Beverages
MARKET, 2011
Bath/ Natural/organic
Meat, fish and toilet soap household cleaners
poultry
Specialty/
other Natural/organic
pet food
Vitamins Hair
Organic flowers
products
Total organic
fiber (lines
and clothing)
Meal
replacements
Pet
supplements
Minerals
Skincare
Herbs/botanicals
Sports Herbs/
nutrition botanicals
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12. NEXT INTRODUCTION
| VIDEO |
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13. SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 13

14. ANCIENT From forbidden fruit to super fruit.
WISDOM
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15. ANCIENT This is not what we mean by ancient wisdom…
WISDOM
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 15

16. ANCIENT But chia is emerging as another new, novel ingredient—in time
WISDOM for its fifth millennium of cultivation.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 16

17. ANCIENT But chia is emerging as another new, novel ingredient—in time
WISDOM for its fifth millennium of cultivation.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 17

18. ANCIENT WISDOM
WAY BETTER SNACKS BRAD’S RAW FOODS
GOWAYBETTER.COM BRADSRAWCHIPS.COM
NATURAL VITALITY VITALITY B
COMPLEX
NATURALVITALITY.COM
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 18

19. ANCIENT WISDOM
(FARMHOUSECULTURE.COM)
VERIA ID INNERDOSHA AND
SO SELF OPTIMIZE
VERIA.COM
DAHLICIOUS LASSI
DAHLICIOUS.COM
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21. TRANSPARENCY Political Implications: Stuxnet virus. Effective but
TRANSCENDED now public—accidental leak or strategic boast.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 21

22. TRANSPARENCY GOOD AND BAD: Kashi vs. Honest Tea
TRANSCENDED
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 22

23. TRANSPARENCY GOOD AND BAD: Kashi vs. Honest Tea
TRANSCENDED
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 23

24. ONE DEGREE
| VIDEO |
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 24

25. TRANSPARENCY
TRANSCENDED
ONE DEGREE ORGANIC FOOD
(ONEDEGREEORGANICS.COM)
BROOKLYN SALSA COMPANY
(BKSALSA.COM)
SPROUT SKINCARE
(SPROUTSKINCARE.COM)
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 25

26. TRANSPARENCY
TRANSCENDED
FOODUCATE
(FOODUCATE.COM)
GAIA HERBS
(GIAHERBS.COM)
HERBALIFE
(HERBALIFE.COM)
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27. DECONSTRUCTION
We have entered an age of profound deconstruction that is
evident in product, process, design and messaging.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 27

28. FUTURES2020: ELEGANT REDUCTION
Elegant Reduction sees the opportunity in right-sizing your solution—delivering less overall, but more of
what your consumer wants. Pretty good is often good enough.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 28

29. REVELRY BRANDS,
BRENDAN SYNNOTT
| VIDEO |
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 29

30. INNOVATION
JONES SODA BACK TO THE ROOTS
JONESSODA.COM BTTRVENTURES.COM
MEGA FOOD
MEGAFOOD.COM
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 30

31. RAW MESSAGING
SIR RICHARD’S CONDOM CO.
BLUEPRINTJUICE SIRRICHARDS.COM
BLUEPRINTJUICE.COM
THREE TWINS ICE CREAM
THREETWINSICECREAM.COM
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32. MACRO FORCES
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33. MACRO FORCES
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34. MACRO FORCES
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35. CONCLUSION
This is not about specific
products and brands but rather
the trajectory and change that
these macro forces imply—both
for the natural products industry
and consumer packaged goods
broadly.
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 35

36. This is the premier insider’s guide to
THE NATURAL PRODUCTS
where the natural products market is
INDUSTRY FORECAST 2013 now—and where it is headed.
Born from the partnership of New Hope Natural Media’s
Nutrition Business Journal and SRG, this comprehensive
report provides a deep dive into the trends and market
forces affecting the natural products industry.
NEXT also identifies the products, people, and macro
forces that will shape and provide the greatest
opportunities for tomorrow’s natural products landscape.
Also available in category specific chapters.
Buy one now at www.nextforecast.com
SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 36

37. Thanks!
John Grubb, Managing Partner Carlotta Mast, Senior Director of Content and Insights
303-381-6479 303-998-9119
jgrubb@srg.com carlotta.mast@penton.com
Kevin Whitcher, Director of Strategy
303-381-6415
kwhitcher@srg.com
Sterling-Rice Group
1801 13th Street, Suite 400
Boulder, Colorado 80302
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