Main Trends In The Israeli FMCG Market

June 2021 Summary

The data is based on 2,600 stores

comprised of statewide chains, private market and convenience stores

which transmit their POS scan data on a daily basis to StoreNext

and which represent more than 85% of the total sales in the Israeli barcoded FMCG market.

Based on this data, StoreNext uses an advanced statistic model to perform an extrapolation for 100% of the

barcoded FMCG Market in Israel,

excluding Kiosks and the Arab sector

Data Base

Baking & Cooking Aids shows decline while Snacks, Non-Alcoholic Beverages and Chocolate World mark an increase in June 2021, compared to June 2020

Cleaning world and Baby Products & Accessories are rising while House Hold Detergents and Disposable Food Aids are dropping

StoreNext's Price Index presents a decrease of 0.1 points in current YTD compared previous YTD

All fields show a Price Index decline, exclude Food, while Personal Care field marks the most

significant one

FMCG market records a decrease of 2.9% value sales in current YTD compared to previous YTD

In June 2021, FMCG value sales grow by 1.9% and when neutralizing change in sales days,

change stands at 0.9%

Long Story Short

Change in Value Sales

-2.9%

* Real Quantitative Change – Value sales growth deducting StoreNext Price Index changes (neutralized of mix effects)

Change in Sales and Price Indices

Change in StoreNext Price Index

*Real Quantitative Change

-0.1%

-2.8%

Million NIS-745

FMCG, YTD 2021 compared to YTD 2020

Except of Beverages, all fields record real decline while Home Care shows the most significant oneAll fields show a Price Index decline, excluding Food which shows stagnation

* Real Quantitative Change – Value sales growth deducting StoreNext Price Index changes (neutralized of mix effects)

FMCG

FMCG YTD Change Rate By Fields (2020 VS 2021)

-3.6%

4.0%0.0%

-0.2%-3.6%

4.2%

Food Bevarages

Value Change Price Index Change Real Quantitative Change

-3.2%-4.3%

-0.3% -0.2%

-2.8%-4.1%

Personal Care Home Care

100.0 100.1

100.5100.3

99.2

100.9 100.9

99.8

100.4

101.6

101.1

102.8101.9

100.8

102.3

102.9

101.1

103.0

102.6

102.5

102.4

103.4

102.6102.1

100.4

102.1

102.7

102.5

102.6

101.6

102.9

102.8

103.5

1/2

017

2/2

017

3/2

017

4/2

017

5/2

017

6/2

017

7/2

017

8/2

017

9/2

017

10/2

017

11/2

017

12/2

017

1/2

018

2/2

018

3/2

018

4/2

018

5/2

018

6/20

18

7/2

018

8/2

018

9/2

018

10/2

018

11/2

018

12/2

018

1/2

019

2/2

019

3/2

019

4/2

019

5/2

019

6/2

019

7/2

019

8/2

019

9/2

019

10/2

019

11/2

01

9

12/2

019

1/2

020

2/2

020

3/2

020

4/2

020

5/2

020

6/2

020

7/20

20

8/2

020

9/2

020

10/2

020

11/2

020

12/2

020

1/2

021

2/2

021

3/2

021

4/2

021

5/2

021

6/2

021

StoreNext's Price Index presents a slight decrease of 0.1 points in current YTD compared to previous YTDIn June 2021 StoreNext's Price Index reaches 103.5 – the highest index since January 2017 – which is the calculation basis

The StoreNext Price Index

2020

102.7

2021

102.7

* StoreNext Price Index measures the change in product prices, neutralizing sales mix changes

4.3% 6.9%

-17.7%

-0.6%-5.6%

1.9%

4.1

3.7

5.5

4.24.5

4.1

4.54.2

4.64.4

4.14.4

4.23.9

4.5

4.2 4.2

4.1

January February March April May June July August September October November December

Change 2020 2021

Monthly Sales Trend

Purim 2021Purim 2020

Passover 2021

Passover 2020

Independence Day 2020

Independence Day 2021

Shavuot 2020

Shavuot 2021

Rosh Hashanah2020

Rosh Hashanah2021

* FMCG Value Sales, Billion NIS

June 2021 sales records a increase of 1.9% compared to June 2020, and amounted to 4.1 Billion NIS, growth of 77 Million NIS

109.5 130.2

149.8

175.9

202.9

152.2

24.4

113.8 131.2

152.3 172.9

201.8

155.6

25.1

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Average Daily Sales in Millions NIS 6/2020 6/2021

3.9%0.8% 1.7% -1.7% -0.5%

2.2%

2.8%

No of Sales Days

Sale By Days

* Sales (NIS Million) by days and percentage of change in sales, current month compared to the same period last year

4 4 4 5 5 5 5 4 4 4 4 4 44

Monthly rate decline is affected due to change in sales days and stands at 1.9%Neutralizing change in sales days, June 2021 value change stands at 0.9%

% Change

Orthodox Jews Sector Value Change Rate

*Orthodox Jews– only stores with orthodox attributes, that are reflected in location, chain and basket composition, excluding Orthodox Jews population sales in General sector

Orthodox Jews sector records significant decline in Home Care and significant growth Beverages fields compared to total market in current YTDWhile declines in Food, Personal Care and in total FMCG market were lower

-5.8%-2.3%

9.0%

-0.4%-0.3%

-4.3%-3.2%

4.0%

-3.6%-2.9%

Home CarePersonal CareBevaragesFoodFMCG

Orthodox Jews Total Market

Foods and Beverages

Home and Personal Care

* Butchery & Fresh Fish Are Not Included

Value Sales Change in Key FieldsBaking & Cooking Aids shows decline while Snacks, Non-Alcoholic Beverages and Chocolate World mark an increase in June 2021, compared to June 2020Cleaning world and Baby Products & Accessories are rising while House Hold Detergents and Disposable Food Aids are dropping

0.9%

-1.3%

1.7%

9.2%

-3.3%

0.6%

7.5%

-1.1%

4.6%

-2.7%

16.3%

-1.2%-7.3%

-2.2%

-9.6%-6.3%

8.1%

-1.4%-9.0%

0.7%

-2.5% -3.8%-7.5%

5.5%

-1.6%-8.2%

Dairy Products Fish & Meat Cooking Non-AlcoholicBeverages

Beer Wine &Spirits

Canned Food ChocolateWorld

Bread & BreadSubstitutes

Sweet &Savory

Pastries

Sauces &Spreads

Snacks Coffee & Tea Baking &Cooking Aids

Monthly % Change 2020-2021 YTD % Change 2020-2021

4.5%8.4% 6.8%

-2.2%-4.8%

3.1% 4.4%2.1%

-2.3% -2.6% -3.7%

10.2%

2.6%

-5.8%-0.8% -1.2%

-12.9% -9.9%

2.2%

-0.2%-3.4%

-6.2% -5.7% -6.2%-9.0%

-2.7%

PaperProducts

Baby Products& Accessories

LaundryDetergents

Hygiene &Body

Nurturing

House HoldDetergents

Oral Hygiene HostingAccessories

Hair care Bath Soaps Dishwashing DisposableFood Aids

Cleaning Aids Garbage/FoodBags

11

.8%

9.9

%

7.4

%

5.0

%

3.8

%

3.7

%

3.2

%

3.3

%

2.7

%

2.0

%11

.7%

10

.2%

7.5

%

5.2

%

3.9

%

3.8

%

3.3

%

3.0

%

2.7

%

2.0

%

-3.7% -0.3% -1.0% 0.7% 0.8% -1.2% -1.4% -12.2% -3.1% -0.9%

Tnuva Strauss Group Osem-Nestle C.B.C Unilever Diplomat Sano Neto ExcludeMeet & Fresh Fish

Hogla Kimberley Schestowitz

YTD 2020 YTD 2021 Change Rate

Market Share and Suppliers’ Growth

* Value Shares (FMCG Market- Excluding Butchers, Bakery, Fruits and Vegetables and Cigarette data)

Top 20’s SOM reaching 64.0% in current YTD, records a growth of 0.6 points compared to YTD 2020

Top 10’s SOM stands at 53.3% in current YTD and presents a increasing of 0.5 compared to previous period

1.8

%

1.3

%

1.1

%

1.0

%

1.0

%

0.9

%

1.0

%

0.8

%

0.8

%

0.8

%

1.7

%

1.5

%

1.2

%

1.1

%

1.0

%

0.9

%

0.9

%

0.8

%

0.8

%

0.8

%

-5.0% 10.0% 2.4% 4.2% -7.3% -1.1% -14.0% -2.8% -2.7% -4.1%

Tempo Jafora Tavori Leiman Schlussel Gad Dairies Willi Food Soglowek Sugat Angel Bakery Danlog Wissotzky Tea

Rising / Descending Categories – Current Month TY vs LYAmong rising categories- Sweet Snacks, Packaged Beer and Savoury Snacks– Probably due to Euro 2020 games occurred this June.

Along with, Vegetarian Snacks and Other Milk Substitutes and Quick Preparation Dishes

Among descending categories- Supervised Packed Bread, Pudding \ jelly \ Moss Powder and Frozen Cakes & Cookies

57.3%

52.7%

28.5%

26.1%

20.5%

20.4%

16.9%

-17.8%

-19.9%

-20.4%

Vegetarian Snacks

Other Milk Substitutes

Quick PreparationDishes

Salty Pastries

Sweet Snacks

Packaged Beer

Savoury Snacks

Supervised PackedBread

Pudding \ jelly \ MossPowder

Frozen Cakes & Cookies

Value Change Rate

49.5%

51.0%

22.5%

23.2%

23.0%

34.5%

14.8%

-18.8%

-16.8%

-5.3%

Volume Change Rate

5.2%

1.2%

4.9%

2.3%

-2.0%

-10.5%

1.8%

1.2%

-3.7%

-16.0%

Average Price Change Rate

7.0%6.8% 6.9%

6.7%6.9% 6.9%

6.7% 6.7%

7.1%6.9% 6.9%

6.7%6.8%

6.3%

6.6%6.5%

6.3%6.4%

2020

6.9%

2021

6.5%

* Value Share (FMCG Market- Excluding Butchers, Bakery, Fruits and Vegetables and Cigarette data)

Private Label Market Share - FMCG MarketPrivate label share records a drop of 0.4 points in current YTD in comparison previous YTD

Thank You!