The Mushroom Council

1
The Mushroom Council Helping ________
Cultivate a Healthy BusinessNatures Hidden
Treasure An Overview of Mushrooms and Mushroom
Trends
2
Who We Are

• Promotional, marketing and research organization
  representing 160 members
• Each grow or import over 500,000 pounds
• 827 million pounds of annual sales
• Commercially produced in almost every state
• Edelman responsible for generic marketing support

3
Our Product Cultivated Mushrooms

• White
• Portabella
• Crimini
• Shiitake
• Enoki

• Oyster
• Maitake

• Beech
• Woodear

4
Our Goal

• Build demand for fresh mushrooms generally, and
  showcase their significant value in virtually
  every segment across the foodservice channel
• Education
• Research
• Trends
• Menu Development
• Promotional Support

5
(No Transcript)
6
Mushrooms Are Hot

• Total mushroom shipments (pounds), measured by
  the Mushroom Council/USDA, up 2.7 ytd
• Retail sales stable (growth in super/club stores
  mirrors decline in supermarkets as overall trend)
• Foodservice continues to lead growth in fresh
  mushroom demand
• Whites dominate volume
• 76 of all foodservice usage
• Even higher at retail
• Organics/Exotics, however are perenially hot
• Exotics up 15
• Organic sales up 11

Sources NASS, 2007, NRA-ACF Chef Survey, 2007
7
Whos Driving Growth

• Equally split between males and females
• Consumers tend to have higher HH income (70k)
• Spend more money at retail
• Spend more money away from home
• Generally spend more money on food
• Young couples
• Empty nesters
• Highest consumption among Busy Urbanites and
  Health Maintainers
• Source NPD Group National Eating Trends

8
Whats Driving Growth
9
What Consumers Say

• Mushrooms are Flavorful
• Complex
• Earthy/Woodsy
• Subtle
• Support other flavors
• Mouthwatering
• Mushrooms are Good for Me
• Fresh
• Pure
• Natural
• Satisfying
• No fat/calories

Source Mushroom Council Consumer Research, 2006
10
Flavor Benefits

• Enhances Umami
• Japanese uncovered Umamichemical compound called
  Glutamatein 1908
• Mushrooms packed with Umami
• Improves meaty, savory, robust flavor even in
  foods that have no umami themselves
• Umami may help achieve satiety

Source Mushroom Council Umami White Paper, 2007
11
Health Benefits

• Low in calories
• 0 Weight Watchers Pts
• Fat free
• Cholesterol free
• Very low in sodium
• Nutrient dense
• Natural antioxidants
• B vitamins
• Vitamin D
• Potassium
• More than broccoli,
• carrots and tomatoes!

12
Mushrooms in the Spotlight

• NRA Top 15 Hot List
• NRA Top 5 Vegetables
• Bob Greenes (Oprahs personal trainer) Best Life
  Diet
• Strong fit with Top 10 Ingredient Health Claims
  Across the MenuLiz Sloan, Mintel Menu Insights
• Andrew Weils Healthy Aging

13
(Insert short clips of Oprah and other snippets
in slide show with music format embedded into
presentation)
14
Unveiling Soon Weight Watchers Partnership

• In Q3 2008, mushrooms will be the Pick of the
  Season that includes distribution of 1.1 million
  recipe cards directly to Weight Watchers members
• Supported by retail push and advertising reaching
  500 Million consumers spotlighting mushrooms for
  having 0 POINTS (up to a two-cup serving)
• Enhances the healthy halo of mushrooms

15
(No Transcript)
16
Rapid Growth in Foodservice

• Even more aggressive growth in foodservice
• Portabella menuing up 19 this year
• Mushrooms up 29 since 2002
• Other specialties seeing growth, especially on
  white tablecloth menus
• Maitake
• Enoki
• Woodear

17
More Mushrooms in Chains

• Steady growth in usage among Top 200 Chains
• More than 150 use mushrooms
• 1,032 Menu Mentions in the top 200 chains in
  first half, 2007 vs. 2006
• 6 growth in 2007
• Segments with the highest usage
• Casual
• Family
• Italian Dinner House

Source Chain Account Menu Survey, 2007
18
Mushrooms Across the Menu

• Entrees 36
• Includes beef, chicken, seafood, pasta and pork
• Sandwiches 21
• Pizza 15
• Breakfast 7
• Sides or Add-Ons 7
• Salads and Soups 5
• Tacos/Burritos and Kids Items 3

Source Chain Account Menu Survey, 2007
19
Notable and New Mushroom Menu Items

• Tempura Battered Mushrooms Bennigans (now a
  core menu item)
• Home-Style Beef Stroganoff Marie Callenders
  (Fall Menu)
• Portobello Mushroom Six Dollar Burger Carls
  Jr. (returning item)
• Chicken n Swiss Eggstreme Eggs Benedict
  Perkins (LTO)
• Chicken Carbonara Sandwich Quiznos (new item)

Source Datassential Menu Insider, 2007
20
Notable and New Mushroom Menu Items

• Portabella and Goat Cheese Sandwich Au Bon Pain
• Pork Tenderloin and Portabella Mushroom Melt
  Cosi
• Cedar Seared Salmon with Grilled Portabellas and
  grape tomatoes TGI Fridays
• Philly Chicken Stromboli Old Chicago (new item)
• Mushroom Bordelaise Eye of Prime Rib LongHorn
  Steakhouse

Source Datassential Menu Insider, 2007
21
Key Growth Areas

• Meatless Options/Portabella burgers
• Growth of natural
• Upscale sandwiches and wraps
• Philly cheesesteaks (the flavor)
• Angus Burgers
• Add-On Options
• Breakfast
• Flatbread/pizza appetizers
• Italian cuisine
• Asian influence

22
Reasons for Growth Guest Value

• Hearty meatless option
• Healthful halo
• Fresh perception
• Exotics
• Flavor adventure
• Sophisticated
• Strong value proposition

Source Mushroom Council Consumer Research, 2006
23
Reasons for GrowthOperator Value

• Meet consumer demand
• Flavor
• Meatless alternative for guests
• Health
• Texture flavor
• Versatility
• Authenticity
• Opportunity to differentiate
• Lowers food costs/increases margins

Source Mushroom Council Foodservice Research,
2006
24
What Operators Say

• You can tell our guests crave mushrooms, because
  sautéed mushrooms are the number one addition to
  our steak orders. Its easy to execute, it
  improves the guest experience, and delivers
  profit right to our bottom line.
• -- Chef Dave Ohlsen, Black Angus Steakhouse
• The pre-sliced and value-added forms available
  help us in the back of the house, and mushrooms
  can also be featured as the hero ingredient
  that helps us sell a menu item out front.
• -- Chef Andrew Hunter, Wolfgang Puck Express
• When we heard over and over from our guests that
  they wanted the Portobello Mushroom Six Dollar
  Burger back at Carl's Jr., we listened.
• -- Brad Haley, EVP of marketing, Carls Jr.

25
Whos Promoting Mushrooms

• Quiznos
• Carls Jr.
• Rock Bottom
• Bostons The Gourmet Pizza
• Applebees
• (To include shots of POS, results/case studies)

26
(No Transcript)
27
Mushrooms at Cheesecake Factory

• 23 items across five categories and dayparts
• Asian
• Entrees
• Sandwiches/burgers
• Breakfast
• Pasta
• Shiitake, white button, portabella varieties
• Italian, Asian, American, French cuisines
• Grilled, sautéed, roasted and sauced

28
Cheesecake Factory

• Sandwiches/Burgers
• Kobe Burger - with Sautéed Mushrooms
• Ranch House Burger with Sautéed Mushrooms
• Grilled Portabella on a Bun
• Grilled Turkey Burger - with Fresh Mushrooms
• California Cheese steak -- with Sautéed Mushrooms
• Breakfast
• Joes Special Breakfast with scrambled Eggs,
  Chicken Sausage and Fresh Mushrooms
• California Omelet with Avocado and Sautéed
  Mushrooms
• Asparagus, Portabella, and Artichoke Omelet
• Entrees
• Sheperds Pie with Mushrooms
• Chicken and Biscuits with Mushrooms
• Chicken Madeira with Fresh Mushroom Madeira
  Sauce
• Steak Diane with Rich Mushroom Wine Sauce

29
Cheesecake Factory

• Asian
• Vietnamese Shrimp Summer Rolls - with Shiitake
  Mushrooms
• Crispy Spicy Beef - with Shiitake Mushrooms,
• Hibachi Steak with Sautéed Shiitake Mushrooms
• Pasta
• Garlic Noodles - with Shiitake Mushrooms,
• Chicken Marsala and Mushrooms - with Fresh
  Mushrooms
• Chicken Piccata - with Mushrooms
• Pasta Da Vinci - with Mushrooms
• Louisiana Chicken Pasta - with Mushrooms
• Farfalle with Chicken and Roasted Garlic with
  Mushrooms
• Bistro Shrimp Pasta - withFresh Mushrooms
• Big Five Pizza - Pepperoni, Italian Sausage,
  Mushrooms, Onions and Peppers

30
Account Specific Placeholder
31
Mushroom Growth in QSR

• Wendys Steakhouse Burger with Mushrooms
• Jack in the Box
• Mushroom and Swiss Burger
• Sirloin Steak n Mushrooms
• Hardees Mushroom N Swiss Thickburger
• Bistro Gourmet (McDonalds)
• Bacon Mushroom Swiss Gourmet Burger
• Veggie Wrap
• Mushroom Cheese Omelet
• Back Yard Burger
• Mushroom Swiss Burger
• Upsell for sandwiches (sauteed mushrooms)
• Garden Fresh Salad
• Dairy Queen Mushroom and Swiss Burger
• Steak n Shake
• Grilled Portobello n Swiss
• Mushroom n Swiss Double Steakburger
• Grilled Mushroom n Onion Steakburger
• Culvers Mushroom and Swiss Butterburger

32
Mushrooms in Fast Casual

• Panera
• Portobello Mushroom Panini
• Vegetarian Mushroom Trio Roasted Tomato Soup
• Roasted Wild Mushroom Crispani
• Quiznos
• Black Angus Sub
• Chicken Carbonara Sub
• Atlanta Bread Company Italian Vegetarian
  Sandwich
• Au Bon Pain
• Steak and Portabella Sandwich
• Portabella and Goat Cheese Sandwich
• Crispers
• Tossed Salad
• Baby Spinach Salad
• Vegetable Salad
• Grilled Veggie Flatbread
• Grilled Veggie Baked Potato

33
Mushrooms in Fast Casual

• Potbelly Sandwich Works
• Mushroom Cheese Veggie Sandwich
• Mushroom Pizza Sandwich
• Mushroom, Egg and Swiss Sandwich
• Camilles Napa Valley Chicken Panini
• Café Express
• Mushroom and Spinach Turkey Burger
• Side of sauteed mushrooms in garlic butter
• Wildflower Bread Company Portobello Picnic
• Corner Bakery
• Farmers Scramble Sunrise Scramble
• Einsteins Spinach Mushroom Swiss Omelet
  Sandwich
• Donatos
• Steak, Cheese Mushroom Sandwich
• Veggie Sandwich
• Big Steak with Mushrooms and Mushroom Sauce
• As well as Booeymonger Deli, Bear Rock, Earl of
  Sandwich and more

34
The Case for Mushrooms

• In many ways, Mushrooms are the perfect
  ingredientworking synergistically with and
  enhancing the Angus Burger
• As you will see from the preliminary concepts and
  extensions, Mushrooms are on-target relative to

• Guest Expectation
• Flavor Delivery
• Concept Fit
• Value
• Versatility
• Differentiation

35
Guest Expectation
Flavor Delivery
Angus is an enhanced quality menu item that is
closely aligned with Steak Given the competitive
set and the popularity of Mushrooms as the 1
add-on to steak in virtually any segment,
Mushrooms are a Must
Besides its strong compatibility with Burgers and
Steak, Mushrooms deliver umamithat true
burst of rich, savory flavor that everyone is
trying to achieve to provide completeness,
balance and flavor excitement

• Full bodied taste
• Satisfying
• Stimulates the appetite
• Makes food taste better
• Meaty and savory
• Textural, aroma and mouthfeel

• Expected
• Popular
• Immediately brings out the comparison to
  steakenhanced image

36
Concept Fit
Value
Americans cant get enough Mushrooms. Mushrooms
provide that fresh, earthy flavor that is clearly
in demand with consumers. Guests are craving
satisfying, flavorful foods and mushrooms deliver
on taste along with natural, fresh cues that can
elevate the entire menu.
As food costs rise, Mushrooms deliver incredible
value, perceived and actual. For guests,
Mushrooms make the Angus sandwich richer, fuller
and more complete. For your margins, value-added
options and a variety of specialties help control
costs. Mushrooms can command an upcharge and, as
a lower food cost item, can positively impact the
consumer value equation.

• Natural and rewarding
• Healthful and flavorful
• Improves guest experience
• Superfood
• Makes guests feel good about themselves and about
  Burger King

• Full Flavoredvirtually like another protein
• Enhances the size and look of the sandwich
• Labor-savings options
• Low food cost and high perceived value

37
Versatility
Differentiation
As you will see from the extended concepts, there
are many other ways to put Mushrooms to use on
the ____ menu. Whether they serve as a plate
filler, a profitable add-on or a way to add
flavor, Mushrooms add value and
versatility.Naturally
Many of your key competitors are leveraging
Mushrooms. But because Mushrooms offer such a
wealth of complex flavor, they can be added to
your menu in ways that can differentiate you from
that competition. Mushrooms carry other flavors
well and can make your menu more distinctive.

• SKU Optimization
• Goes with so many different types of foods.from
  burgers to eggs to chicken
• Enhances salads
• Potential snacking item

• Signature
• Proprietary
• Ownable
• Unexpected
• Value-added perception
• Uniqueness

38
SKU Optimization
Other Sandwiches

• Chicken Swiss Mushroom
• Pork Tenderloin and Mushroom
• Chicken Sandwich
• Chicken Salad

Caramelized Onions and Mushrooms Southwest Portabe
lla Marinara Horseradish Mushroom Uptown
Angus Bacon Mushroom Blue
Angus Burger Mushroom Builds
Line-Extensions and LTOs
Optimizing the SKU
Breakfast

• Bacon Mushroom Swiss Croissant
• Platters
• Enormous Omelet

Cajun Italiano A-1 Mushroom Sauce Smoked
Onion-Mushroom Fajita Santa Fe Chimi Teriyaki
New Usages

• Fried Mushrooms
• Mushroom Fries
• Portabella Sandwich
• Sautéed Side
• Fried Matchstick Mushrooms

39
Resources and Support
40
How We Can Help

• Menu gap analysis
• Concept development
• Training
• Category research
• Test marketing
• Promotional support
• Events and launches

41
Were Ready to Cultivate a Great Relationship!

• A Wealth of Flavor
• Added ValueNaturally
• Fresh
• Healthy
• Front and Center or Right on Top
• Surprisingly Satisfying
• Versatile

42
Contact Us

• Alexei Rudolf
• Edelman Public Relations
• Alexei.rudolf_at_edelman.com
• 415.486.3231

Steve Solomon FSInsights Steve_solomon_at_msn.com 847
.332.1413
www.mushroominfo.com
43
(No Transcript)