BIOCO CV NUTRACEUTICALS CASE

Note: The data is based on a 1,000 person survey (random sample of US adults). The 5 segments were created by the market research
company by clusturing "similar" consumers into groups based on survey responses.

MARKET RESEARCH - SUMMARY OF RESPONSES TO SURVEY

Overall Segment 1 Segment 2 Segment 3 Segment 4 Segment 5

POPULATION SIZE (total US adults = 184 million) 100% 24% 15% 22% 12% 27%

DEMOGRAPHICS

Education: College graduate 36% 42% 56% 24% 53% 21%

Gender: Woman 50% 54% 55% 56% 53% 38%
Income: >$50,000 40% 60% 42% 18% 40% 41%
Age: Under 35 yrs 33% 38% 36% 22% 38% 35%

ATTITUDES & BELIEFS

(# respondents answering "Definitely True" or "Probably True")

"My diet will affect my long-term health" 35% 23% 62% 30% 65% 20%
"There is a link between diet and a broad range of diseases" 27% 23% 45% 20% 55% 15%
"I am confused about what food products are good for my health" 32% 15% 29% 69% 12% 27%
"Consuming basic foods such as fresh fruits and vegetables has a positive influence on health" 55% 35% 55% 72% 75% 50%
"Consuming supplementary nutrients such as herbal supplements has a positive influence on health" 36% 15% 74% 65% 20% 17%

BEHAVIOR
(% stating YES to each question)

"I refuse to eat food that is…":

- Not tasty 54% 58% 42% 50% 40% 68%
- Not convenient to access or to eat 24% 30% 8% 22% 10% 36%
- Expensive 29% 32% 17% 25% 15% 42%
Do you take any of the following products on a daily basis?
- Nutritional bars such as breakfast bars, snack bars or energy bars 29% 25% 45% 40% 42% 10%
- Fresh fruits and vegetables 69% 62% 84% 67% 80% 64%
- Vitamin, mineral or herbal supplements 47% 35% 87% 65% 28% 28%
- Low fat or low calorie foods 40% 30% 63% 41% 59% 26%
Have you made a dietary change in the past 3 years for health reasons? 36% 34% 52% 28% 50% 29%
Have you increased you exercise level in past 3 years for health reasons? 26% 20% 38% 27% 35% 21%
Do you read nutrition labels on food products for fat, calorie & other info? 38% 24% 54% 50% 72% 15%
Do you shop at healthfood stores at least once a week? 32% 15% 58% 41% 60% 12%

CV NUTRACEUTICAL PREFERENCES*
% who will definitely or probably buy

Will you buy a cholesterol-reducing nutraceutical if it came in the form of:

- a nutritional bar? 15% 5% 30% 20% 34% 2%
- a health shake? 12% 7% 22% 15% 27% 3%
- a powder pack that you can add to a drink? 15% 6% 31% 20% 30% 2%
- a dietary supplement, like a pill or tablet? 18% 8% 33% 31% 22% 4%
- a fortified form of food, like orange juice, yogurt or milk?** 20% 12% 30% 32% 32% 6%
How frequently would you typically consume this nutraceutical (if it were offered in your favorite form)?
(only asked to those who said "definitely will buy" or "probably will buy" to at least one of above options)
- One a day 23% 20% 20% 35% 25% 15%
- One every 2-3 days 50% 60% 52% 34% 45% 56%
- One every week 18% 8% 23% 16% 26% 23%
- Less than once a week 9% 12% 5% 15% 4% 6%
Will you buy this nutraceutical (in your favorite form) if:
- it reduced your cholesterol by 20% 19% 7% 41% 21% 44% 3%
- it reduced your cholesterol by 30% 23% 9% 48% 27% 55% 3%
- it cost $0.50 29% 20% 40% 48% 42% 11%
- it cost $2 10% 3% 15% 18% 22% 1%
- it cost $4 5% 2% 3% 13% 7% 1%
Which of the following do you turn to for diet and health information?:
- Government/FDA 35% 32% 23% 53% 25% 34%
- Media/press 38% 32% 68% 55% 16% 23%
- Friends & family 24% 15% 5% 4% 9% 65%
- Physicians 91% 94% 95% 92% 75% 93%
- American Heart Association 55% 65% 65% 78% 28% 33%
- Your grocery/health food/drug store staff 38% 30% 60% 71% 20% 15%

* Cholesterol-reducing nutraceutical described as: a normal-tasting food product that has been scientifically proven to reduce
your cholesterol level by 10%, with a price of $1.00; recommended consumption of one unit per day

** For fortified food, the nutraceutical pricing was re-phrased as: it would cost you $1 per day more for the your typical
daily volume of consumption of that food (cereal, yogurt, etc.)