HEALTHY AISLES

Convenience, health and diet, and channel-blurring continue to define movement in the Center Store aisles of supermarkets.permarket industry, and is still home to the top-selling products -- carbonated beverages, cereal and salty snacks -- found in the store.The dramatic sales changes in categories like frozen juice, weight-loss drinks, snack nuts and water speak to consumers' calls for foods that

Convenience, health and diet, and channel-blurring continue to define movement in the Center Store aisles of supermarkets.

permarket industry, and is still home to the top-selling products -- carbonated beverages, cereal and salty snacks -- found in the store.

The dramatic sales changes in categories like frozen juice, weight-loss drinks, snack nuts and water speak to consumers' calls for foods that meet various health and ease-of-use criteria.

Meanwhile, retailers continue to struggle to hold their own in all-important nonfood categories like pet food, detergent and diapers as nontraditional food stores assume a bigger share of shoppers' budgets. Aggressive formats like baby stores, pet discounters and club stores are having a greater impact on sales of applicable products than anyone ever thought. Consumers now shop with divided loyalties, as a review of these category numbers shows.

LARGEST SALES -- FOOD page 75

Carbonated Beverages $11.9 B; -1.1%

Salty Snacks $6.6 B; 1.4%

Cold Cereal $5.8 B; -1.1%

Frozen Dinners/Entrees $5.5 B; 2.6%

Ice Cream/Sherbet $4.2 B; 1.4%

LARGEST SALES -- NONFOOD page 80

Cigarettes; $5.0 B; -2.9%

Toilet Tissue $2.6 B; 2.2%

Dog Food $2.5 B; 1.9%

Laundry Detergent $2.4 B; -2.7%

Food & Trash Bags $1.4 B; 2.7%

TOP GAINERS page 84

Bottled Water $3.0 B; 9.7%

Wine $3.9 B; 8.4%

Snack Nuts/Seeds/Corn Nuts $1.2 B; 10.6%

Mexican Foods $1.1 B; 9.2%

Shelf-Stable Dinners $1.2 B; 6.8%

TOP DECLINERS Page 88

Diapers $1.3 B; -7.2%

Dish Detergent $855.0 M; -5.7%

Weight Ctrl/Nutritional Liquid/Powder $556.4 M; -13.6%

Frozen Juices $471.5 M; -14.2%

Foils/Wraps $498.5 M; -5.2%

LARGEST SALES -- FOOD

CARBONATED BEVERAGES

The fizz is going out of carbonated beverages due to consumers' growing preference for more healthful drinks. Sales of diet colas are partly offsetting sugary-soda declines. Sales of bottled water, juices and functional beverages, meanwhile, are picking up; bottled water is now the second-most-popular beverage with American consumers. Soda manufacturers are combating flat soda sales with new bottle sizes, line extensions and diet products.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $11.9 B; -1.1

Drug $827.0 M; -9.3

F/D/MX $13.4 B; -1.5

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Low Calorie Soft Drinks $4.1 B; 5.4

PLU - All Brands Soda $2.8 M; -41.6

PLU - Soft Drinks $27.3 M; -56.8

Regular Soft Drinks $7.5 B; -4.9

Seltzer/Tonic Water/Club Soda $274.0 M; -1.2

Sugar/Calorie Reduced Soft Drinks $89.8 M; --

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $12.000 B; -1.9; $12.084 B; 0.7; $12.012 B;-0.6

Drug $964 M; 16.0; $959 M; -0.5; $854 M; -10.9

F/D/MX $13.639 B; -2.0; $13.635 B; 0.0; $13.491 B; -1.1

SALTY SNACKS

Sales of salty snacks are up, helped by Americans' penchant for snacking as well as the declining interest in low-carb dieting. Sales for the year that ended May 15 increased the most in drug stores, which have been expanding their food and beverage selections. The biggest change this year was in sales of pork rinds, which plummeted after a huge increase last year as low-carb dieters gobbled down the fatty, protein-rich snacks.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $6.6 B; 1.4

Drug $293.0 M; 8.9

F/D/MX $7.2 B; 1.7

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $6.406 B; -1.7; $6.529 B; 1.9; $6.540 B; 0.2

Drug $263.0 M; 10.5; $261.0 M; -0.7; $284.0 M; 8.5

F/D/MX $6.987 B; -1.4; $7.074 B; 1.2; $7.107 B; 0.5

COLD CEREAL

The vast majority of cold cereal is bought in supermarkets, but consumers are increasingly shopping for their breakfast foods in drug stores, which are offering expanded grocery selections. Total-channel sales of cold cereal are declining as consumers shun sit-down breakfasts and seek out foods they can eat on the run, like breakfast bars. To garner more sales, cereal makers are giving their products a more healthful spin.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $5.8 B; -1.1

Drug $110.9 M; 13.8

F/D/MX $6.1 B; -0.5

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $6.017 B; -3.9; $5.918 B; -1.6; $5.782 B; -2.3

Drug $92.0 M; 19.7; $94.0 M; 2.1; $106.0 M; 12.9

F/D/MX $6.325 B; -3.3; $6.206 B; -1.9; $6.090 B; -1.9

FROZEN DINNER ENTREES

Consumers are feeling time-crunched,and it's one reason why sales of frozen dinners and entrees are enjoying increases in all store formats. Meals that serve more than one person grew sales the fastest due to the growing acceptance of these dishes as meals for two or a family, but single-serve meals remain the biggest subcategory. Manufacturers are helping drive growth by introducing more meals with healthful positioning, and some retailers have added their own premium private labels to the mix. On-the-go handheld entrees also enjoyed improved sales in the supermarket channel during the survey period, in part due to new varieties and flavor combinations that appeal to children.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $5.5 B; 2.6

Drug $32.4 M; 31.1

F/D/MX $5.6 B; 3.0

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Fz Handheld Entrees (Non Breakfast) $1.0 B; 2.7%

Multi-Serve Fz Dinners/Entrees $900.7 M; 12.3%

Single-Serve Fz Dinners/Entrees $3.6 B; 0.3%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $5.556 B; -1.2; $5.512 B; -0.8; $5.376 B; -2.5

Drug $20.2 M; 31.0; $23.1 M; 14.2; $28.5 M; 23.2

F/D/MX $5.635 B; -0.9; $5.594 B; -0.7; $5.476 B; -2.1

ICE CREAM AND SHERBET

Ice cream and sherbet sales are rising, helped by a continued output of new products. Manufacturers have introduced full-fat and low-fat/sugar/carb/calorie versions of their popular flavors as well as premium products they claim are more healthful and don't compromise on taste or texture. Also helping push sales is the growing number of novelties as well as licensed products.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $4.2 B; 1.4

Drug $138.2 M; 9.6

F/D/MX $4.4 B; 1.6

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Fz Yogurt/Tofu $172.2 M; -10.8%

Ice cream $3.9 B; 2.3%

Sherbet/sorbet $185.7 B; -4.8%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $4.311 B; -3.0; $4.188 B; -2.9; $4.2 B; 0.7

Drug $110.2 M; 12.4; $121.1 M; 9.9; $133.2 M; 10.1

F/D/MX $4.477 B; -2.6; $4.332 B; -2.6; $4.375 B; 1.0

LARGEST SALES -- NONFOOD

CIGARETTES

With anti-smoking campaigns going strong, regulations on advertising and marketing tactics tightening and sales of smoking-cessation products growing, the market for cigarettes continues to go downhill. High prices and rising state excise taxes are also impacting the market, while cigarette outlets seize the opportunity to supply cigarettes to price-conscious smokers. In turn, the market for smoking-cessation products has shown substantial growth, with 2004 retail sales of $799.4 million, up 2.5% from 2003.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $5.0 B; -2.9

Drug $1.7 B; 14.0

F/D/MX $6.7 B; 0.6

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $5.754 B; -4.3; $5.263 B; -8.5; $4.962 B; -5.7

Drug $1.541 B; 2.3; $1.468 B; -4.7; $1.628 B; 10.9

F/D/MX $7.439 B; -4.3; $6.822 B; -8.3; $6.660 B; -2.4

TOILET TISSUE

The necessity of toilet paper in American households has helped ensure steadily increasing sales. While the average household size is shrinking, the number of households is on the rise, lessening the need to buy bulk and making convenience more important. Manufacturers have been upping marketing efforts in an attempt to lure wealthy shoppers toward pricier brands, while competition from low-cost leaders and private labels have kept the lid on prices of toilet tissue.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $2.6 B; 2.2

Drug $255.1 M; 1.2

F/D/MX $3.3 B; 2.8

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $2.631 B; -4.2; $2.541 B; -3.4; $2.501 B; -1.6

Drug $247.4 M; 10.8; $250.6 M; 1.3; $248.9 M; -0.6

F/D/MX $3.419 B; -3.0; $3.280 B; -4.1; $3.233 B; -1.4

DOG FOOD

Supermarkets still account for the majority of dog food sales. Yet some retailers are treating the pet food aisle more aggressively, fully aware that pet owners buy more than just pet food, and that nontraditional food channels are eating away at supermarkets' share of the category. In drug stores, for example, sales rose 16.5%. An increase in premium products and increased importance of pets in people's lives bode well for future category growth.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $2.5 B; 1.9

Drug $46.1 M; 16.5

F/D/MX $2.9 B; 2.9

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Dog Biscuits/Treats/Beverages $507.7 M; 3.7%

Dry Dog Food $1.4 B; 2.2%

Semi-moist Dog Food $40.6 M; -5.0%

Wet Dog Food $563.6 M; 0.0%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $2.515 B; -3.2; $2.450 B; -2.6; $2.457 B; 0.3

Drug $41.2 M; 2.3; $37.9 M; -8.0; $39.9 M; 8.0

F/D/MX $2.871 B; -3.5; $2.796 B; -2.6; $2.834 B; 1.3

LAUNDRY DETERGENTS

Liquid detergents, preferred for their convenience, remain the dominant subcategory. And the steady flow of new, specialized liquid detergents, supported by retailer promotions, has helped an overall declining category. Private-label laundry soaps are far from being washed out; with wide price discounts to national brands, they appeal to consumers who are no longer willing to pay extra for top brands.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $2.4 B-; 2.7

Drug $259.4 M; -3.2

F/D/MX $3.3 B; -1.8

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Liquid Laundry Detergent $1.8 B; 2.0%

Powder Laundry Detergent $634.2 M; -11.6%

Other Laundry Detergent/Packet/Bar $18.3 M; -18.5%

Tablet Laundry Detergent $1.3 M; -92.2%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $2.658 B; -6.8; $2.582 ; -2.8; $2.479 B; -4.0

Drug $264.6 M; 12.1; $267.6 M; 1.1; $263.5 M; -1.5

F/D/MX $3.550; -5.2; $3.430 B; -3.4; $3.313 B; -3.4

FOOD AND TRASH BAGS

Dollar sales of food-storage bags are weakening as the number of households with children declines, consumers turn to disposable food containers to securely seal and store food and lower-priced, private-label food-storage bags gain market share. Trash bag sales helped make up for soft sales of food bags, resulting in an overall category lift. Supermarkets commanded sales in this category, although drug store sales are growing at a faster rate.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $1.4 B; 2.7

Drug $94.5 M; 10.1

F/D/MX $1.7 B; 3.5

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Garbage/Trash/Lawn & Leaf Bags $711.1 M; 4.8%

Paper bags $18.1 M; -1.4%

Sandwich/Freezer/Food Storage Bags $630.2 M; 0.6%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $1.367 B; -5.4; $1.325 B; -3.1; $1.335 B; 0.8

Drug $79.8 M; -2.7; $85.3 M; 6.9; $89.8 M; 5.4

F/D/MX 1.648 B; -5.3; $1.610 B; -2.3; $1.632 B; 1.4

TOP SALES GAINERS

BOTTLED WATER

After carbonated soda, U.S. residents now drink more bottled water than any other beverage. Supermarkets continue to record strong growth in bottled water as Americans opt for healthier food and drink. Drug stores are growing water sales at a faster clip, though, as they expand their grocery assortment. The dominant subcategory, still water, also is the fastest growing, helped in part by new, fruit-flavored varieties.

52 weeks ending May 15, 2005

Dollar Sales; % Change From Last Year

Supermarkets $3.0 B; 9.7

Drug $297.5 M; 15.3

F/D/MX $3.5 B; 10.7

Subcategories

Supermarket Sales 52 weeks ending May 15, 200

Convenience/PET still water $2.1 B; 15.9%

Jug/Bulk Still Water $686.3 M; -4.7%

Sparkling/Mineral $264.9 M; 6.6%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $2.408 B; 11.5; $2.678 B; 11.2; $2.901 B; 8.3

Drug $206.1 M; 18.3; $236.2 M; 14.6; $283.8 M; 20.2

F/D/MX $2.765 B; 12.73.082 B; 11.5; $3.377 B; 9.6

WINE

America has become a nation of wine drinkers. Total category volume grew 18.5% over the past five years, helped by its perceived health benefits and favorable demographics. Retailers are responding with increased merchandising, discounting and private-label development. Table wine, the biggest subcategory, had robust sales growth, although the fastest growing was tiny traditional dessert wine, which includes such types as Icewine and Muscat. With the vast majority of wine bought by 13% of consumers, there's plenty of room for growth.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $3.9 B; 8.4

Drug $354.0 M; 3.8

F/D/MX $4.2 B; 8.0

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Table Wine $3.6 B; 9.2%

Fruit Varietal Wine $76.1 M; -8.9%

Beverage Wine $41.7 M; -2.5%

Kosher Wine $25.4 M; 0.2%

Traditional Dessert Wine $1.8 M; 14.2%

Traditional Fortified Wine $59.6 M; -0.4%

Vermouth-Aperitif Wine $20.7 M; 0.1%

Sake/Plum Wine $9.2 M; 5.2%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $3.713 B; 1.8; $3.751 B; 1.0; $3.982 B; 6.2

Drug $370.1 M; 4.8; $366.8 M; -0.9; $379.0 M; 3.3

F/D/MX $4.112 B; 2.0; $4.150 B; 0.9; $4.403 B; 6.1

MEXICAN FOODS

Mexican food sales are hot as a tamale, thanks to the growing Hispanic population in the United States and growing popularity of ethnic foods in general. Mexico dominates the Hispanic countries in terms of influence: the United States received more immigrants from Mexico than any other country from 1998 to 2003, and Mexico was the most-visited country by U.S. residents in 2003, according to Mintel International Group. Supermarkets are capitalizing on the growth by expanding their brand-name and store-brand assortments in all Center Store departments, most notably frozen foods and dry grocery. However, Mexican influences and flavors can be found elsewhere in the store, such as dry spices, beverages and even nonfoods, where some Latino brands of household cleaners have a loyal shopper base.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $1.1 B; 9.2

Drug $1.5 M; 2.3

F/D/MX $1.2 B; 9.2

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Hard/Soft Tortillas/Taco Kits $949.0 M; 10.0%

Mexican Food Items $47.0 M; 7.1%

Refried Beans $149.7 M; 5.1%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $893.0 M; 1.6; $949.1 M; 6.3; $1.0 B; 7.0

Drug $1.1 M; -12.7; $1.3 M; 24.6; $1.5 M; 11.1

F/D/MX $901.8 M; 1.5; $956.7 M; 6.1; $1.0 B; 7.1

SHELF-STABLE DINNERS

Shelf-stable dinners rose, as growth in the chili subcategory offset declines in most other segments. Chili sales had been declining when new product introductions helped revive the category, according to Packaged Facts. Chili in cartons and microwavable cups and chili promoted as low-carb or organic/natural have seized on comfort food, health and convenience trends. The fastest growth has been in drug stores, which are expanding their grocery offerings in general.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $1.2 B; 6.8

Drug $31.5 M; 10.9

F/D/MX $1.3 B7.0

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

SS Microwavable Packaged Dinners $141.8 M; -6.0%

SS Prepared Chili $350.9 M; 22.5%

SS Prepared Dinners/Entrees $153.9 M; -0.3%

SS Prepared Pasta dishes $463.2 M; 5.8%

SS Prepared Salads $24.2 M; -7.5%

SS Prepared Sloppy Sauce $85.9 M; -1.4%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $1.123 B; -7.3; $1.072 B; -4.6; $1.091 B; 1.8

Drug $23.9 M; 24.2; $26.5 M; 10.9; $28.8 M; 8.5

F/D/MX $1.167 B; -7.1; $1.115 B; -4.5; $1.137 B; 2.0

TOP SALES DECLINERS

SNACK NUTS/SEEDS/CORN NUTS

Category sales growth has slowed, particularly that of snack nuts, the biggest subcategory, which had increased sales nearly 19% in the year-earlier period. The category overall nevertheless remained strong across all measured channels, helped by the popularity of fad diets that encouraged nut consumption, consumer demand for foods that are nutritious and easy to eat, and new nut products designed to be eaten on the go.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $1.2 B; 10.6

Drug $244.3 M; 8.4

F/D/MX $1.6 B; 9.9

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Snack Nuts $1.1 B; 11.6%

Sunflower/Pumpkin Seeds $93.0 M; -0.4%

Toasted Corn Nut Sacks $7.2 M; 13.2%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $883.6 M; 0.8; $1.011 B; 14.5; $1.168 B; 15.5

Drug $181.0 M; 7.4; $211.8 M; 17.0; $242.9 M; 14.7

F/D/MX $1.175 B; -0.3; $1.334 B; 13.5; $1.525 B; 14.3

DIAPERS

With children being potty-trained later and more kids wearing disposable training pants, this category has the potential to grow. It's not clear whether supermarkets will be the beneficiaries, though. Diaper sales in this channel are bottoming out as consumers increasingly rely on specialty stores, mass merchandisers and dollar stores for baby items. Sales also fell in drug stores during the past year, indicating that price, as well as convenience, is sending consumers elsewhere.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $1.3 B; -7.2

Drug $362.2 M; -2.5

F/D/MX $2.3 B; -3.8

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Disposable Diapers $975.4 M; -8.8%

Disposable Training Pants $329.1 M; -1.6%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $1.558 B; -10.8; $1.436B; -7.6; $1.349 B; -6.1

Drug $403.7 M; 4.7; $386.8 M; -4.2; $466.6 M; -5.2

F/D/MX $2.629 B; -8.1; $2.444 B; -7.1; $2.358 B; -3.5

DISH DETERGENT

Dish detergent sales in supermarkets are down for the third year in a row, and the decline is becoming more pronounced. At the same time, more consumers are turning to drug stores and other nontraditional food stores for their dish-washing product needs. The decline in supermarket sales can also be attributed to the changing dining patterns of American families who now eat out more, thus wash fewer dishes at home.

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Dish Detergent $431.0 M; -7.8%

Dishwasher Detergent/Additive $424.1 M; -3.4%

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $855.0 M; -5.7

Drug $82.8 M; 3.3

F/D/MX $1.0 B; -4.6

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $943.2 M; -2.9; $919.1 M; -2.6; $871.3 M; -5.2

Drug $78.0 M; 4.7$80.1 M; 2.8; $81.1 M; 1.2

F/D/MX $1.144 B; -2.8; $1.115 B; -2.5; $1.063 B; -4.6

WEIGHT CONTROL/NUTRITIONAL LIQUID/POWDER

Millions of dieting Americans are always looking for diet foods and drinks to shed pounds, but they don't often stick with one for long. Thus the popularity of low-carb diet products walloped sales of market leader Slim-Fast in 2003. Meanwhile, food bars and diet candy are growing at the expense of liquid/powder beverages and frozen meals promoted as having low-fat, low-carb or other attributes.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $556.4 M; -13.6

Drug $166.5 M; -14.7

F/D/MX $788.7 M; -13.5

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Refrig. Weight Control/Nutritional Liquid/Powder $1.6 M; -33.5%

Weight Control/Nutritional Liquid/Powder $554.8 M; -13.5%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $672.4 M;5.9; $651.1 M; -3.2; $597.8 M; -8.2

Drug $230.4 M; 10.6; $203.1 M; -11.8; $176.1 M; -13.3

F/D/MX $1.0 B; 5.1; $932.2 M; -7.6; $841.6 M; -9.7

FROZEN JUICES

People are drinking refrigerated juice, which has seen an explosion in variety, but the prep time required for frozen juice has hurt sales of concentrate. Declines of frozen concentrated juices were almost even across all measured channels as a drink once seen as healthful also is being shunned for its high sugar content. Frozen OJ, by far the biggest subcategory, also was the biggest decliner.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $471.5 M; -14.2

Drug $161,516; -13.7

F/D/MX $474.9 M; -14.2

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Fz Orange Juice Concentrate $194.9 M; -15.5%

Fz Drink/Cocktail Drink Concentrate $59.6 M; -18.3%

Fz Lemonade/Limeade Concentrate $57.3 M; -13.2%

Fz Blended Fruit Juice Concentrate $37.8 M; -9.1%

Fz Cocktail Mixes $32.5 M; -8.5%

Fz Grape Juice Concentrate $29.0 M; -12.8%

Fz Apple Juice Concentrate $28.5 M; -13.6%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $671.4 M; -17.6; $581.8 M; -13.3; $498.0 M; -14.4

Drug $273,540; -26.8; $199,977; -26.9; $166,948; -16.5

F/D/MX $676.7 M; -17.5; $586.2 M; -13.4; $501.6 M; 14.4

FOILS AND WRAPS

The desire for convenience has spawned such new products as nonstick foils and plastic wraps designed for better sealing and easier cutting, but they haven't reversed negative sales trends. Category sales have mirrored a falloff in sales of all food-storage products, due to eating out, availability of food in resealable packaging such as microwavable cups, and lack of convenience and advertising, according to Packaged Facts, which expects sales to continue falling.

52 weeks ending May 15, 2005

Dollar Sales; %Change From Last Year

Supermarkets $498.5 M; -5.2

Drug $20.7 M; 4.4

F/D/MX $551.2 M; 5.1

Subcategories

Supermarket Sales 52 weeks ending May 15, 2005

Aluminum Foil $324.2 M; -2.2%

Plastic Wrap $141.5 M; -13.0%

Waxed Paper $32.8 M; 2.6%

(Calendar Year) 2002 Dollar Sales; % Change; 2003 Dollar Sales; % Change; 2004 Dollar Sales; % Change

Supermarkets $541.3 M; -3.9; $529.7 M; -2.2; $505.4 M; -4.6

Drug $20.9 M; 0.7; $21.6 M; 3.1; $20.4 M; -5.5

F/D/MX $594.5 M; -4.5; 585.0 M; -1.6; $557.7 M; -4.7