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CATEGORY PERFORMANCE: PROCESSED CHEESE

Dollar Sales $2,249,556,000 % Change From Last Year -0.88umers who prefer the natural varieties. Sales of various processed cheese products continue to decline, though the slump has slowed down. For the 52 weeks ended June 13, processed cheese in the supermarket channel dropped 0.88%, to nearly $2.25 billion. Supermarkets are the dominant sales channel for the category. Over the same time period,

Dollar Sales $2,249,556,000 % Change From Last Year -0.88

umers who prefer the natural varieties. Sales of various processed cheese products continue to decline, though the slump has slowed down. For the 52 weeks ended June 13, processed cheese in the supermarket channel dropped 0.88%, to nearly $2.25 billion. Supermarkets are the dominant sales channel for the category. Over the same time period, processed slices specifically slipped 4.2%, accounting for nearly $1.4 billion of total category sales in the supermarket channel. Sales of cheese spreads/balls actually grew 9.47%, to $288.5 million. Another declining subcategory, aerosol/squeezable cheese spreads, saw sales drop 10.27%, to $75.4 million. Sales of all other forms of American cheese went down 22.37%, to just over $23 million.

Drug store sales of processed cheeses actually went up about 1%, to $4.3 million, over the past year.

Subcategories: 52-week sales; % change

PROCESSED SLICES: $1,379,910,000; -4.2

CHEESE SPREADS/BALLS: $288,518,900; 9.47

PROCESSED LOAF: $268,027,400; 0.89

ALL OTHER PROCESSED CHEESE: $180,910,000; 14.03

AEROSOL/SQUEEZABLE CHEESE SPREADS: $75,407,580; -10.27

IMITATION ALL OTHER FORMS: $24,494,410; 21.74

AMERICAN ALL OTHER FORMS: $23,000,150; -22.37

PROCESSED SHREDDED CHEESE: $9,286,942; -22.59

Latest 52 weeks ended June13, 2004

Dollar Sales Latest 52 Weeks Ended June 13, 2004; % Change; Dollar Sales Calendar Year Ended Dec. 28, 2003; % Change; Dollar Sales Calendar Year Ended Dec. 29, 2002; % Change

Supermarkets: $2,249,556,000; -0.88; $2,236,803,000; -2.75; $2,300,171,000; -4.33

Drug: $4,301,544; 1.05; $3,735,823; -22.79; $4,838,455; 3.54

F/D/MX: $2,272,930,000; -0.95; $2,259,645,000; -2.88; $2,326,715,000; -4.29