2024 September Board Book

liquid/powder subcategory stands out with a 25.3% increase in dollar sales and a 22.9% rise in volume sales. This subcategory, though smaller in scale, has demonstrated significant growth, driven by increased consumer demand, which is also reflected in the 11.0% rise in average weekly dollars per store selling. The strong performance of this subcategory suggests it could be an emerging driver within the overall weight control market, contributing to the category's growth trajectory along with opportunity in other categories to grow with health and value add options. Plant Base Milks The total plant-based milk category saw a significant decline in dollar sales, decreasing by 6.0%, which equates to a loss of approximately $92 million. Similarly, volume sales have dropped by 6.3%, indicating that fewer consumers are purchasing these products, or they are buying them less frequently. Almond Milk saw the most significant decline was observed in the almond milk segment, with dollar sales dropping by 9.3% and volume sales by 9.1%. Almond milk has been one of the most popular plant-based milk alternatives for years, but this decline suggests that consumers may be shifting away from it. In contrast to the overall downward trend, coconut milk experienced a 6.6% increase in dollar sales and a 4.7% increase in volume sales. This growth could be due to its unique flavor profile or those with specific dietary preferences, such as paleo or ketogenic diets RCM Seal Year-to-date sales trends for products with the Real California Milk Seal have shown a mixed but overall positive trajectory across various categories. The largest gain in dollar sales is seen in the Butter/Butter Blends category, which grew by 24.1%, translating to a $68,462,025 increase from the previous year. Yogurt also experienced a substantial 24.6% increase in dollar sales, adding over $13 million compared to the same period last year. Other notable performances include Natural Cheese and Weight Control products, which saw increases of 22.3% and 9.1% respectively, highlighting strong consumer demand in these segments. Conversely, some categories have faced declines or minimal growth. Dairy Milk, one of the larger segments by dollar sales, saw a 1.9% decrease, losing nearly $11 million in sales compared to the previous year. Similarly, Dips (RFG) and Grated Cheese - SS experienced significant declines of 11.1% and 92.1%, respectively. The sharp drop in Grated Cheese is particularly concerning, indicating a dramatic shift in consumer preferences or competitive pressures in the market. In terms of distribution, several categories have maintained or slightly improved their Average Weekly ACV Distribution, indicating stable product availability in stores. However, categories like Ice Cream/Sherbet and Novelties - FZ have seen substantial reductions in both Average Weekly and ACV Weighted Distribution, which may have contributed to the poor sales performance in these categories. Overall, while the Real California Milk Seal continues to resonate with consumers, with several categories posting strong gains, there are specific areas where challenges persist, particularly in maintaining distribution levels and addressing declining sales in certain product segments