The Defense Commissary Agency, which is headquartered at Fort Lee, VA., operates a worldwide chain of commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Authorized patrons purchase items at cost plus a 5-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. Shoppers save an average of more than 30 percent on their purchases compared to commercial prices – savings amounting to thousands of dollars annually. A core military family support element, and a valued part of military pay and benefits, commissaries contribute to family readiness, enhance the quality of life for America's military and their families, and help recruit and retain the best and brightest men and women to serve their country.

The military market is one of the most powerful and effective vehicles for a Consumer Packaged Goods (CPG) company to continue to build its brand loyalty and equity.

• Tremendous opportunity for manufacturers to reach a loyal customer base
• Commissary sales equal close to $6 Billion annually!
• Sales volume falls in the top 20 of the largest supermarket chains in the US
• DeCA is the only worldwide chain
• DeCA employs over 18,000 people throughout 14 countries
• Commissaries generate more sales volume per store than any other grocery retailer

The Military Commissary System:

• Serves more than 12 million patrons
• Sells product at cost plus a 5% surcharge, which covers the costs of building new commissaries and modernizing existing ones
• Delivers 100% pass-through of price promotion money

Commissaries are more like club stores than traditional grocery stores:

• The bi-monthly pay days and weekends are the predominant days for military shoppers to stock up
• The Average Customer Transaction in the Commissary is over 2x greater than that of a Civilian Supermarket ($74 vs. $34)
• DeCA sells 300% more per operating hour than its Civilian Counterparts ($6,734/hour vs. $1,777/hour)
• DeCA Sales are 78% more per store, per week than Civilian Stores ($494,419/week vs. $278,587/week)
• On average of 5 to 10 stores per year are being renovated and modernized, making shopping experiences more enjoyable

This market offers key strengths:

• Young families represent an ideal market to develop brand loyalty
• High brand loyalty in the absence of private label
• No slotting fees
• Manufacturer price reduction savings go straight to the customer

Giving you access to loyal military shoppers:

• Commissary privileges are the #1 non-pay military benefit
• Available to active military personnel, military retirees & reservists, National Guard as well as civilians stationed overseas and their families
• Saves shoppers in excess of 30% across the board
• The average military person who shops the commissary saves approximately $4500 a year for a family of four

DeCA shoppers are unique:

• 55.8% of active duty personnel are married
• 43.7% of active duty personnel have children
• 80.2% of active duty personnel are 35 years old or younger
• Average age of active duty enlisted personnel is 27.2
• Average age of active duty Officers is 34.7
• The number of Retirees is 2.4 Million
• 14.3% of the active duty force are women
• Over 123.9M coupons were redeemed FY 2009 (over $114M)

Sources:
Military Retailer Fact Book 2010 & 2012
Commissaries.com

Alder Foods, Inc.
One Foxhill Drive, Walpole, MA 02081 Tel: (508) 660-1993 Fax: (508) 660-8816 info@AlderFoods.com