2024 September Board Book

CMAB is continually looking for relevant partners we can work with on retail promotions. We’re currently scoping a 2025 partnership with the American Egg based on our own objectives, synergistic budgets, and evolving consumer trends for both of us. Costco is a particularly hot target for our processors, in part due to the volume that can come from authorization in top warehouses for any given region. CMAB has continued to adjust internal priorities as demand warrants, executing more sampling demos this year than recent years. We’ve also prioritized outreach with the division-level contacts across the different departments to ensure they are aware of California’s offerings and CMAB support for new distribution. Here’s an overview of the flashpoints CMAB plans to support within retail. Each flashpoint will include different retailers, tactics deployed, and levels of investment.

E-commerce: As a reminder, CMAB works with Instacart, the largest third-party provider within the US, to promote RCM products in a retailer-agnostic format throughout the year. CMAB also works with Retail Media Networks (RMNs) like Walmart Connect and Kroger’s 84.51 to build awareness and drive sales for RCM dairy products. The future will likely include more investment in RMNs, as they gain more power and better reporting for driving incremental sales. Based on the latest reporting, let’s look at the current e-commerce landscape within the US: • In June, e-commerce sales rose to $7.7 billion, up 8% versus a year ago. o Of the three methods, delivery increased the most, up 18% compared to a year ago. This was driven by active users having more baskets throughout the month (though the average order value fell a bit).