2023 May Board Book

US Business Development

E-commerce: According to the latest report from Brick Meets Click/Mercatus, US e-grocery sales totaled $8.8 billion in February 2023, a 1.5% increase year over year. Online grocery ordering remains a popular option among US consumers, despite the reopening of physical stores and the end of the pandemic restrictions. Online order frequency, however, declined by 5% vs. January 2022, with consumers placing fewer but larger orders. The number of households using online grocery ordering in February 2023 remained stable, with 35.6 million households placing at least one online order during the month. In addition, the average order value increased by 6% compared to February 2022, reaching $142, meaning consumers are purchasing more items per order. Grocers will continue to adapt their strategies as this channel expands and consumer demands evolve. Retail Consumer Promotions: Our first two larger market-focused retail consumer promotions have been planned and executed for the year. Savor the Season , our Lenten season promotion, wrapped up on April 8 th . We are now reviewing our performance metrics to evaluate what worked, what didn’t, and how these learnings can be applied cross-functionally in the future. Tacos, Tequila y Mas runs April 13 th through May 12 th . While both these promotions focus on Hispanic-style dairy products, our targets vary slightly. Our Lent promotion is centered around independent Hispanic retailers in Southern California – an important channel for many of our processors. Our Tacos promotion targets mainstream retailers as part of a larger partnership with Gallo and the California & Nevada Beef Councils – attracting both the multicultural and mainstream consumer with approachable recipes. Next on the horizon is our Summer Snacking promotion which will run mid-June to mid-July. Our assortment of featured snacking recipes includes a variety of dairy products, with a couple focused on Hispanic and Indian-inspired snacks. As one of our largest promotions for the year, we’re excited to inspire our consumers to snack happy with dairy this summer. We’ve partnered with Nugget Markets and CA Grown for dairy and produce highlights the first half of 2023. This Northern California influential retailer has great depth and breadth of RCM products, including private label, and remains an important focus for CMAB. Our Spring and Summer promotions center around smoothies, brunch, and summer entertainment featuring recipes like California Date Shakes, Fresh Strawberry Ice Cream French Toast, and California Crème Fraiche Avocado Ice Cream. General BD Updates: This year is shaping up to have many partner opportunities within the sampling demo space. While CMAB already exercises a cost-sharing model with our processors for our demos,