Exhibit 1 Natureview Farm Income Statement, 1999

Revenuesa $13,000,000 100% Revenues

Cost of Goods Soldb $8,190,000 63%
Gross Profit $4,810,000 37%
Expenses
Administration/Freight $2,210,000 17%
Sales $1,560,000 12%
Marketing $390,000 3%
Research & Development $390,000 3%
Net Income $260,000 2%
Supermarket Channel 8oz 32 oz

Retail Price 0.74 2.70

Retail Margin % 27.00% 0.27
Retail Purchase Price (RPP) 0.54 1.97
Distributor Margin % 15.00% 0.15
Distributor Purchase Price (DPP) 0.46 1.68
Manufacturer Sales Price (MSP) 0.46 1.68
Cost Per Unit 0.31 0.99
Contribution per Unit Sold 0.15 0.69
Manufacturer Gross Margin % 32.61 40.91

Natural Foods Channel 8oz 32oz

Retail Price 0.88 3.19

Retail Margin % 0.35 0.35
Retail Purchase Price (RPP) 0.572 2.0735
Natural Foods Distributor Margin % 0.09 0.09
Natural Foods Distributor Purchase Price 0.521 1.887
Wholesaler Margin % 0.07 0.07
Wholesaler Purchase Price (WPP) 0.484 1.755
Manufacturer Sales Price (MSP) 0.484 1.76
Cost Per Unit % 0.31 0.99
Contribution per Unit Sold 0.174 0.765
Manufacturer Gross Margin % 35.950 43.590

supermarket 32.6087 40.90787

natural food 35.95041 43.58974
 Input Data Source

Exhibit 3
0.729 Text - Supermarkets 0.5402

0.29565 Text - Supermarkets

Exhibit 3

Multipack

3.35 Exhibit 3
0.35 Text - Nat Foods
2.1775
0.09 Text - Nat Foods
1.982
0.07 Text - Nat Foods
1.843
1.843
1.15 Exhibit 3
0.693
37.602

37.60174
 Market Dollar Size

Total Refrigerated Yogurt Market $ 1,800,000,000

Supermarket Channel 1,746,000,000
Natural Foods Channel $ 54,000,000

Total Refrigerated Yogurt Market $ 1,800,000,000

6 oz. & 8 oz. 1,332,000,000
32 oz. 144,000,000
Children's Multipack 162,000,000
All Other $ 162,000,000

Total Refrigerated Yogurt Market $ 1,800,000,000

Northeast 468,000,000
Midwest 396,000,000
Southeast 450,000,000
West $ 486,000,000
% Total Annual
Growth Rate
100% 3.5%
97% 3.0%
3% 20.0%

100% 3.5%
74% 3.0%
8% 2.0%
9% 12.5%
9% 0.1%

100%
26%
22%
25%
27%
Option 1 (8-oz.) 6 SKU to Supermarket
20 Supermarket Chains
2 Regions
Ad Plan $1,200,000 per region per annum
Sales 35,000,000 units per annum
Slotting fees $10,000 per Chain per SKU
Gross Profit $5,250,000
Less Ad Costs ($2,400,000) 2 Regions
Less Incremental SGA ($320,000) $200K sales + $120K mkt
Less Slotting Fees ($1,200,000) 20 Chains, 6 SKU per Chain
Trade Promotion Expense ($870,000)
Less Broker's Commissions ($644,000) 4% of sales
Profit Contribution ($184,000) ($5,434,000)
-184000
Sales Growth (value) $16,100,000

Option 2 (32-oz.) 4 SKU to Supermarket

64 Supermarket Chains
4 Regions
Ad Plan $120,000 per region per annum
Sales 5,500,000 units per annum
Slotting fees $10,000 per Chain per SKU
Gross Profit $3,769,425
Less Ad Costs ($480,000) 4 Regions
Less Incremental SGA ($160,000) Half of Option One
Less Slotting Fees ($2,560,000) 64 Chains 4 SKU
Trade Promotion Expense ($1,024,000) 64 Chains 2x per annum
Less Broker's Commissions ($368,577) 4% of sales
Profit Contribution ($823,152) ($823,152)

Sales Growth $9,214,425 revenue growth

Option 3 (Multipack) 2
Ad Plan ($250,000)
Sales 1,800,000 units per annum
Slotting fees ($82,927)
Gross Profit $1,247,073
Less Ad Costs ($250,000)
Less Free Cases ($82,927)
Less Broker's Commissions -$132,683 4%
Profit Contribution $781,463

Sales Growth Year 1 $3,317,400 Revenue growth

Reference

text, Option 1
text, Option 1
text, Supermarket
formula = units sold * $ contribution per unit
page 7, para 2, line 5
text, Option 1

11 supermarkets in NE, 9 in West, 4 times annually 330000 540000

formula = MSP * units sold * 4%

text, Option 2
text, Option 2
text, Supermarket
formula = units sold * $ contribution per unit given by sir directly, check later

text, Option 2

text, Option 2, Supermarkets

formula = MSP * units sold * 4%

text, Option 3
text, Option 3

Contribution*UNITS PER ANNUM

2.5% of Manufacturer Sales (net of broker fees)
formula = MSP * units sold * 4%
y, check later
 Exhibit 2 Yogurt Market Share by Packaging Segment, 1999 (Supermarket channel, in % U.S. dollars)

Dollar Share Dollar Sales Change vs. Prior Year

8-oz. cups and smaller 74% 3%
Children’s multipacks 9% 12.50%
32-oz. cups 8% 2%
Other 9% NC
100%

Yogurt Market Share by Region, 1999 (Supermarket channel, in % U.S. dollars)

Dollar Share No. of Retailers in the Region

in the Region
Northeast 26% 25
Midwest 22% 30
Southeast 25% 33
West 27% 17
100%
el, in % U.S. dollars)
Exhibit 3 Yogurt Production Costs and Retail Prices by Channel

Natural Foods Channel Average Retail Price

8-ounce (oz.) cup $0.88
32-oz. cup $3.19
4- oz. cup multipack $3.35

Supermarket Channel Average Retail Price

8-oz. cup $0.74
32-oz. cup $2.70
4-oz. cup multipack $2.85
 Exhibit 5 Yogurt Market Share by Brand, 1999

Supermarket Channel
Dannon 33%
Yoplait 24%
Others 23%
Private Label 15%
Columbo 5%
100%

Natural Foods Channel

Natureview Farm 24%
Brown Cow 15%
Horizon Organic 19%
White Wave 7%
Others 35%
100%
Exhibit 6 Sales Projections for Natureview's Strategic Options

Option Action Anticipated Incremental Retail Un

1 Expand 6 SKUs of the 8-oz. size into eastern and western supermarket regions 35,000,000
2 Expand 4 SKUs of the 32-oz. size nationally into supermarket channel 5,500,000
3 Introduce 2 children’s multipacks into natural foods channel 1,800,000
ticipated Incremental Retail Unit Sales