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HEALTHY HELPINGS OF CONVENIENCE

Quick and easy isn't enough for today's harried consumers. Center Store shoppers are also demanding the food and beverages they consume offer health benefits or some other desirable consequence. Just take a look at Information Resources Inc.'s list of top sales gainers. A growing number of on-the-go Americans have traded in their coffeepots for the ease of bottle caps and pop-tops. Energy drinks and

Quick and easy isn't enough for today's harried consumers. Center Store shoppers are also demanding the food and beverages they consume offer health benefits or some other desirable consequence. Just take a look at Information Resources Inc.'s list of top sales gainers.

A growing number of on-the-go Americans have traded in their coffeepots for the ease of bottle caps and pop-tops. Energy drinks and ready-to-drink teas and coffee occupy the top two slots, respectively.

Waistlines are also being watched, as evidenced by the growth in dollar sales of miscellaneous snacks like trail mix, and the rise in whole-grain-enriched rice and popcorn cakes. These and portion-control packs of potato chips, cheese snacks and popcorn are being washed down with an increasing number of portable bottles of water.

The backlash against sugary kids' treats is also apparent. Dry fruit snacks, juice drink boxes and toaster pastries earned unpleasant placement alongside diapers and tobacco products on the top sales decliners list.

Faced with healthy competition, carbonated soft drinks continued to lose their fizz, but maintained their position in the top, largest sales slot, while the beer category showed modest growth.

LARGEST SALES — FOOD $$
DOLLAR SALES % CHANGE FROM LAST YEAR
Carbonated Beverages $12.0B -3.2
Beer/Ale/Alcoholic Cider $8.2B 2.6
Salty Snacks $7.2B 2.6
Frozen Dinners/Entrees $6.0B 1.2
Cold Cereal $5.9B -1.0
LARGEST SALES — NONFOOD $$
DOLLAR SALES % CHANGE FROM LAST YEAR
Cigarettes $4.9B -3.1
Toilet Tissue $2.8B 2.1
Laundry Detergent $2.6B -0.4
Paper Towels $1.8B 1.3
Food & Trash Bags $1.6B 4.4
TOP SALES GAINERS >>
DOLLAR SALES % CHANGE FROM LAST YEAR
Energy Drinks $570.1M 31.4
Ready-to-Drink Tea/Coffee $1.1B 26.6
Miscellaneous Snacks $172.8M 17.8
Rice/Popcorn Cakes $205.6M 13.7
Bottled Water $4.3B 11.4
TOP SALES DECLINERS >>
DOLLAR SALES % CHANGE FROM LAST YEAR
Diapers $1.3B -5.5
Dry Fruit Snacks $455.5M -5.5
Aseptic Juices $728.5M -4.5
Tobacco Products $465.6M -4.5
Toaster Pastries/Tarts $408.2M -4.4

LARGEST SALES — FOOD $$

Carbonated Beverages

Carbonated soft drinks remain the largest beverage category in the country. But sales continue to decline as health-conscious consumers gravitate toward water, functional drinks and green tea. Beverage companies, however, are reinvigorating their portfolios with CSDs geared toward the health-conscious. One growing trend is vitamin and mineral fortification, as evidenced by items such as Diet Coke Plus, a sparkling, calorie-free beverage with vitamins, including B-3, B-6 and B-12, and the minerals zinc and magnesium.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $12.0B -3.2
Drug $933.1M 9.3
F/D/MX $13.6B -2.2
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $12.418B -0.9 $12.413B 0.0 $12.155B -2.1
Drug $877.5M -11.2 $858.1M -2.2 $878.3M 2.4
F/D/MX $13.921B -1.3 $13.901B -0.1 $13.671B -1.7

LARGEST SALES — FOOD $$

Beer/Ale/Alcoholic Cider

Beer continues to face increased competition from wine and spirits. But while sales in all channels showed modest gains, certain segments are showing strong growth. Cider climbed in the double digits, while imports grew 8% in supermarkets. Many consumers are gravitating to imports because they view them as an affordable luxury that's within their reach. Brewers are also working to build domestic sales with seasonal, limited-edition and other specialty brews. They're also catering to specific consumer segments with new brands like Redbridge from Anheuser-Busch. Redbridge is made with sorghum, a grain that's safe for those with wheat or gluten allergies. Brewers are also tapping into the lucrative Hispanic market with the launch of Miller Chill and Chelada Bud.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $8.2B 2.6
Drug $895.3M 0.5
F/D/MX $9.2B 2.4
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $7.834B 1.0 $7.955B 1.5 $8.124B 2.1
Drug $892.5M 1.0 $891.7M -0.1 $886.4M -0.6
F/D/MX $8.783B 1.0 $8.903B 1.4 $9.069B 1.9
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Domestic (includes non-alcoholic) $6.5B 1.1%
Imports (includes non-alcoholic) $1.8B 8.0%
Alcoholic Cider $21.7M 13.9%

Frozen Dinners/Entrees

Frozen entree sales are far from sizzling, thanks to more competition from the perimeter of the supermarket and restaurant take-out options. But the category is gaining ground as new items like upscale and restaurant-inspired dinners hit the frozen cases. Among other new products are Stouffer's Lean Cuisine Paninis and Stouffer's Corner Bistro entrees, both of which made IRI's list of the Top 10 “2006 New Product Pacesetters,” those that exceeded $7.5 million in first-year sales. Indeed, the category has come a long way since Swanson introduced the first TV dinner in the 1950s. Today's frozen entrees appeal to everyone from time-starved, dual-income families to empty nesters with a range of gourmet, family-sized, two-person and health and wellness selections.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $6.0B 1.2
Drug $48.6M 9.2
F/D/MX $6.2B 2.0
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $5.558B -2.7 $5.842B 5.1 $6.020B 3.1
Drug $28.4M 23.8 $40.2M 41.5 $46.5M 15.8
F/D/MX $5.658B -2.3 $5.983B 5.8 $6.212B 3.8
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Handheld Entrees (not breakfast) $1.2B 2.3%
Multi-Serve Dinners $1.2B 0.8%
Single-Serve Dinners $3.6B 0.9%

LARGEST SALES — FOOD $$

Cold Cereal

Ready-to-eat cereal has a lot of competition, from shelf-stable portable options to new quick-service selections like breakfast pizza and fruit smoothies. And then there's the 18% of Americans who don't eat breakfast at all. The result is that, while sales are up across all outlets, they're slightly down in supermarkets. But manufacturers are trying to woo consumers back with a variety of new products. One trend is cereal that lets people indulge without the guilt. Special K Chocolatey Delight features toasted rice cereal flakes with chocolate pieces; and General Mills' Chocolate Chex has at least 8 grams of whole grains per serving, as well as 12 vitamins and minerals, including calcium, iron and vitamin D.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $5.9B -1.0
Drug $140.7M 10.4
F/D/MX $6.3B -0.2
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $6.012B -2.4 $6.017B 0.1 $5.930B -1.4
Drug $110.4M 12.9 $120.8M 9.5 $135.8M 12.3
F/D/MX $6.324B -1.9 $6.361B 0.6 $6.319B -0.7

LARGEST SALES — NONFOOD $$

Cigarettes

While unit sales of smokes are generally down around the country, state and federal excise taxes are driving their price and, in some channels, dollar sales. Drug stores are posting the healthiest increases, with some of the business coming at the expense of supermarkets and mass merchants. Anti-smoking campaigns and the cost of cigarettes have spurred some consumers to kick the habit. In a July 12-15, 2007, Gallup poll, 21% of American adults report that they smoked cigarettes in the past week. Gallup has not found a lower percentage in more than 60 years.

CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $5.108B -5.3 $5.124B 0.3 $4.992B -2.6
Drug $1.665B 10.4 $1.927B 15.7 $2.129B 10.5
F/D/MX $6.842B -2.2 $7.105B 3.8 $7.157B -0.7
52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $4.9B -3.1
Drug $2.2B 9.4
F/D/MX $7.2B 0.2

LARGEST SALES — NONFOOD $$

Toilet Tissue

Toilet tissue dollar sales are rising, but not because of a surge in demand for the product. Struggling with rising costs for raw materials and energy, manufacturers increased their prices. Unit sales of toilet tissue actually dropped, just as they did in previous years. It is a sign of a mature market that provides manufacturers with little opportunity for real growth, industry observers note. The U.S. population has been growing slowly, keeping down demand for the product. Nevertheless, sales of private-label toilet paper products grew. Drug stores also increased their distribution share.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $2.8B 2.1
Drug $318.2M 9.8
F/D/MX $3.7B 3.2
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $2.578B -1.7 $2.700B 4.7 $2.805B 3.9
Drug $258.5M -1.1 $278.6M 7.8 $303.2M 8.8
F/D/MX $3.320B -1.6 $3.512B 5.8 $3.670B 4.5

LARGEST SALES — NONFOOD $$

Laundry Detergent

Laundry detergent sales grew slightly over the past year, with drug stores posting the highest gains. Manufacturers are going green, rolling out products designed to work specifically with high-efficiency washing machines, which use less water and require less heat than traditional washing machines. Smaller, more concentrated versions of national brands like Wisk, Dynamo, All and Arm & Hammer are taking up less space on supermarket shelves and creating a slew of efficiencies for retailers. Consumers too are benefiting from the lighter bottles of liquid detergent that use considerably less plastic but deliver the same number of loads as bottles twice or three times their size.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $2.6B -0.4
Drug $309.3M 6.9
F/D/MX $3.6B 1.1
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Liquid Laundry Detergent $2.1B 2.9%
Other Laundry Detergent (Packet/Bar) $14.7M -8.3%
Powder Laundry Detergent $504.5M -11.9%
Tablet Laundry Detergent $6,006 -66.9%
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $2.549B -4.3 $2.566B 0.7 $2.607B 1.6
Drug $275.8M -2.3 $283.0M 2.6 $296.2M 4.7
F/D/MX $3.397B -3.7 $3.472B 2.2 $3.580B 3.1

LARGEST SALES — NONFOOD $$

Paper Towels

In recent years, decreases in unit sales of paper towels have outpaced the modest increases in dollar volume. Manufacturers have struggled with rising pulp prices, which dip into their margins. On the innovation front, companies have introduced paper towel rolls with smaller sheets. Product marketers claim they offer plenty of absorbency, extra thickness and softness for shoppers who want to use less paper for clean-up jobs. Paper towel makers have also teamed up with artists to produce colorful and unique designs for towels.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $1.8B 1.3
Drug $155.7M 1.0
F/D/MX $2.3B 2.1
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $1.755B 1.9 $1.806B 2.9 $1.840B 1.9
Drug $169.9M -3.5 $157.9M -7.1 $149.7M -5.1
F/D/MX $2.200B 1.5 $2.274B 3.3 $2.320B 2.0

Food & Trash Bags

Dollar sales continue to outpace unit sales in this category. Manufacturers of trash and food storage bags are struggling to manage rising raw material costs. The higher costs have reduced their profit margins. Still, the challenging business environment hasn't hindered innovation. One of the leading manufacturers recently introduced jumbo-sized storage bags for storing and transporting clothing and household items, as well as small bags designed to meet airport security guidelines for toting toiletries. Newer food bags have slide closures to make sealing easier for shoppers. Trash bags promising to be thicker and stronger have also recently hit the market.

CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $1.380B 0.8 $1.443B 4.5 $1.554B 7.7
Drug $95.4M 8.2 $104.7M 9.8 $116.3M 11.1
F/D/MX $1.686B 1.7 $1.783B 5.8 $1.948B 9.2
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Garbage/Trash/Lawn & Leaf Bags $851.1M 5.4%
Paper Bags $18.8M -2.0%
Sandwich/Freezer/Food Storage Bags $689.5M 3.5%
52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $1.6B 4.4
Drug $117.0M 6.2
F/D/MX $2.0B 5.6

TOP SALES GAINERS >>

Energy Drinks

Buzz-seeking shoppers are stimulating one of the fastest rates of category growth in the food channel. Whether substituting for morning coffee or facilitating a mid-afternoon jolt, energy drinks are being guzzled at a quickening pace. Consumers are reaching for larger, 12-ounce portions rather than 8-ounce cans to get their caffeine fix, catalyzing increases in dollar sales on top of already substantial year-on-year growth. Pepsi and Coca-Cola are trying to mimic the success of category leaders Red Bull and Monster with drinks like Mountain Dew AMP Energy Overdrive and Full Throttle. Other beverage makers are capturing the verve of teens and young adults with drinks like Rip It, BooKoo, Von Dutch, Wired, Fixx, Who's Your Daddy? and Vim & Vigor.

CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $216.7M 63.2 $358.6M 65.5 $513.3M 43.2
Drug $52.2M 65.1 $80.9M 55.1 $111.9M 38.2
F/D/MX $276.3 64.6 $457.4M 65.5 $660.2M 44.3
52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $570.1M 31.4
Drug $128.7M 34.7
F/D/MX $744.1M 34.4
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Energy Drink Mix $428,297 -14.8%
Energy Drinks Aseptic $247,372 46.6%
Energy Drinks Non-Aseptic $569.4M 31.4%

TOP SALES GAINERS >>

Ready-to-Drink Tea/Coffee

RTD teas and coffees are a common solution for shoppers looking to conveniently consume caffeine without brewing a cup of coffee or boiling water for tea. As part of the overall push toward good-for-you beverages, low-calorie, antioxidant-rich teas are driving much of the growth in the category. Dollar sales of canned and bottled teas (29%) have taken off at almost twice the rate of ready-to-drink iced coffee and cappuccino beverages (16.3%), which held their own in the category.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $1.1B 26.6
Drug $157.3M 19.2
F/D/MX $1.4B 27.1
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Canned and Bottled Tea $943.8M 29.0%
Cappuccino/Iced Coffee $193.5M 16.3%
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $691.9M 9.5 $814.4M 17.7 $1.016B 24.8
Drug 90.9M 22.6 119.1M 31.0 $145.1M 21.9
F/D/MX $808.8M 11.1 $971.6M 20.1 $1.220B 25.6

TOP SALES GAINERS >>

Miscellaneous Snacks

Despite portion-controlled and healthier versions of potato chips, pretzels, cheese snacks and other traditional junk food, Americans are reaching for more and more handfuls of trail mixes and other guilt-free alternatives. The subcategory raked in the highest dollar sales of miscellaneous snacks in the food channel, followed by salty and sweet combinations, yogurt-coated snacks and chocolate-covered salted snacks. These snacks experienced the most dramatic growth in the drug channel. Dollar sales of miscellaneous snacks in this outlet rang in at almost 50% higher than the previous year.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $172.8M 17.8
Drug $40.0M 48.0
F/D/MX $250.8M 23.6
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Nutritional Snacks/Trail Mixes $123.7M 18.2%
Carob/Yogurt Coated Snacks $29.4M 12.6%
Chocolate Covered Salted Snacks $19.7M 24.4%
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $107.9M -6.1 $130.1M 20.7 $162.0M 24.5
Drug $20.6M 4.1 $24.7M 19.7 $32.0M 29.8
F/D/MX $141.4M -2.8 $177.1M 25.3 $230.5M 30.1

TOP SALES GAINERS >>

Rice/Popcorn Cakes

Bold flavor enhancements and portion-controlled packs of bite-sized rice and popcorn cakes have made these treats a viable choice for consumers as they gravitate toward healthier snacks. Despite dropping their cardboard image, these treats have maintained their low-calorie status. Their whole-grain benefits also make them a desirable alternative for healthy in-between-meal eating. According to IRI's 2007 Consumer Snacking Study, almost half of consumers (46%) look for whole grains in snacks. Quaker recently introduced Mini Delights — 90-calorie packs of bite-size multigrain rice cakes in Chocolately Drizzle, Cinnamon Streusel and Buttered Popcorn flavors.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $205.6M 13.7
Drug $1.4M -22.5
F/D/MX $211.3M 14.6
CALENDAR YEAR 2004 2005 2006
DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $130.7M -16.3 $155.9M 19.3 $193.1M 23.8
Drug $1.8M 80.8 $1.8M 1.0 $1.5M 15.2
F/D/MX $133.8M -15.3 $159.4M 19.1 $197.1M 23.7

TOP SALES GAINERS >>

Bottled Water

Convenient, single-serve portions of still water are accompanying active Americans on their quest for healthier lifestyles. Despite better-for-you versions of bubbly beverages, the second-largest drink category by volume siphoned sales from carbonated soft drinks. The convenience/PET still water subcategory experienced dramatic growth despite a backlash against popular single-serve portions whose on-the-go design have been blamed for low recycling rates. Water became more transparent when PepsiCo agreed to add “Public Water Source” to the label of its Aquafina bottles after a watchdog group contended its previous label implied its contents were mountain spring water.

CALENDAR YEAR 2004 2005 2006
DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $2.998B 7.8 $3.549B 18.4 $4.068B 14.6
Drug $293.5M 20.2 $344.1M 17.2 $380.3M 10.5
F/D/MX $3.485B 9.1 $4.131B 18.5 $4.735B 14.6
52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $4.3B 11.4
Drug $400.6M 11.0
F/D/MX $5.0B 11.8
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Convenience/PET Still Water $3.3B 15.3%
Jug/Bulk Still Water $690.0M -1.5%
Sparkling/Mineral $310.8M 4.5%

TOP SALES DECLINERS <<

Diapers

Unit sales of disposable diapers have been drooping in all channels, but supermarkets are feeling the impact the most. In recent years, retailers have improved the quality of private-label diaper products to compete more effectively with the national brands. Their efforts are part of an attempt to hang on to the young parent demographic, which tends to spend more than other shoppers. National brands are also stepping up their game. In recent months, Huggies introduced new lines of diapers specifically designed to offer newborn and older babies superior comfort and fit.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $1.3B -5.5
Drug $390.2M 1.0
F/D/MX $2.4B -0.5
CALENDAR YEAR 2004 2005 2006
DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $1.417B -6.3 $1.350B -4.7 $1.305B -3.3
Drug $367.1M -5.3 $375.0M 2.1 $383.4M 2.3
F/D/MX $2.428B -3.7 $2.403B -1.0 $2.411B 1.6

TOP SALES DECLINERS <<

Dry Fruit Snacks

Sales of sugary fruit snacks have soured as a result of the increased focus on what kids eat. Mounting concerns about diet and nutrition, as well as rising rates of obesity and inactivity, have prompted parents to rethink what they drop in their children's lunch boxes and backpacks. Some states have gone so far as to set recommended nutritional guidelines for fat and sugar content in food sold in public schools. Certain school districts have eliminated foods or simply shrunk the size of popular items sold in the cafeterias as a result.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $455.5M - 5.5
Drug $8.7M 6.3
F/D/MX $517.6M - 3.8
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $497.9M 4.5 $494.1M -0.8 $470.7M -4.7
Drug $6.4M -16.0 $6.9M 8.0 $9.6M 39.9
F/D/MX $554.6M 4.0 $547.7M -1.2 $530.9M -3.1

TOP SALES DECLINERS <<

Aseptic Juices

Shelf-stable juices may be one of the many casualties in the fight against childhood obesity. Health-conscious parents are reaching for lower-calorie alternatives with less sugar, like bottled water. Aseptic juices fared better than their juice drink counterparts, suggesting that health and wellness concerns may be inhibiting purchases of the latter. Juice makers like Mott's are attempting to tap into the good-for-you trend by introducing watered-down versions of their juice boxes. Despite such efforts, the category continued its steady decline, which proved to be most dramatic in the drug channel.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $728.5M -4.5
Drug $6.4M -31.0
F/D/MX $788.8M -4.5
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $803.3M -2.1 $774.7M -3.6 $742.0M -4.2
Drug $10.9M 4.1 $10.3M -6.2 $7.3M -28.7
F/D/MX $871.7M -3.1 $839.1M -3.7 $803.9M -4.2
SUBCATEGORIES SUPERMARKET SALES 52 WEEKS ENDING JUNE 17, 2007
Aseptic Juice Drinks $542.0M -6.7%
Aseptic Juices $186.5M 2.5%

TOP SALES DECLINERS <<

Tobacco Products

As smoking becomes more socially unacceptable, more people are turning to chewing tobacco, which can be used without creating secondhand smoke. About 6% of adult men and 1% of adult women nationwide use chewing tobacco. It's coming under fire just like tobacco that's smoked. Like cigars and cigarettes, chewing tobacco has been directly linked to several diseases, including cancer of the mouth, gum recession and bone loss around the teeth, cardiovascular disease and high blood pressure. And like cigarettes, smokeless tobacco has nicotine, so it's addictive. In response, several states run annual “Through With Chew” weeks to get people to quit the habit. The controversy has contributed to the decline in the tobacco category, which also includes roll-your-own tobacco, pipe tobacco and smoking accessories like pipes. Sales slipped 4.6% in food, drug and mass to $641 million.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $465.6M -4.5
Drug $169.7M -4.1
F/D/MX $641.0M -4.6
CALENDAR YEAR 2004 2005 2006

DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $516.7M -2.3 $502.3M -2.8 $471.8M -6.1
Drug $187.0M -6.0 $179.1M -4.2 $172.0M -4.0
F/D/MX $710.6M -3.0 $688.9M -3.1 $650.2M -5.6

TOP SALES DECLINERS <<

Toaster Pastries

Toaster pastry sales are falling partially as a result of the movement to cereal bars and other portable selections that don't require heating. Sales have slipped across the food, drug and mass channels. While the category is down, it's certainly not out. Manufacturers are working to rebuild interest with new products like Go-Tarts, Kellogg's new Pop-Tarts extension that doesn't require toasting. Go-Tarts were backed with a TV campaign focusing on their portability. The 100-calorie individually wrapped bars also cater to the health-conscious.

52 WEEKS ENDING JUNE 17, 2007 DOLLAR SALES % CHANGE FROM LAST YEAR
Supermarkets $408.2M -4.4
Drug $6.8M -14.1
F/D/MX $433.5M -4.5
CALENDAR YEAR 2004 2005 2006
DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE DOLLAR SALES % CHANGE
Supermarkets $442.7M -1.6 $428.1M -3.3 $416.9M -2.6
Drug $6.4M 12.9 $7.5M 17.4 $7.2M -3.7
F/D/MX $468.7M -1.5 $453.7M -3.2 $442.8M -2.4