48 MEDIAN HOUSEHOLD INCOME $88,000 SPROUTS SHOPPER? MEDIAN AGE HEALTH CURIOUS CONVENIENCE SHOPPERS HEALTH ENTHUSIASTS APPROXIMATELY

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2 hank you for your continued interest in marketing partnerships and promotions in This year we are putting strategic emphasis on cross-channel integration through content collaboration and calendar alignment, bridging lifestyle relevance and consumer insights. The digital landscape has created additional opportunities to keep customers engaged and informed about the latest products and specials available at Sprouts. In 2018, keep an eye out for new features on sprouts.com that include enhanced brand content, improved personalization of mobile coupons and a streamlined user experience on the website and mobile app. Sprouts value proposition attracts a customer base that is much broader than that of traditional health food or specialty stores. Studies show that the Sprouts customer is well educated, interested in healthful eating and eager to save money and spend wisely. SPROUTS SHOPPERS MEDIAN AGE 48 MEDIAN HOUSEHOLD INCOME $88,000 APPROXIMATELY HAVE CHILDREN 27% AT HOME HAVE COMPLETED 70% COLLEGE Source: Kurt Salmon Consumer Segmentation Studies, June 2016 WHO IS THE TYPICAL SPROUTS SHOPPER? HEALTH CURIOUS Health Curious customers actively try to improve their food choices because they don t currently live the healthiest lifestyle. They have a strong desire to learn more about healthy living and eating. CONVENIENCE SHOPPERS Convenience Shoppers appreciate the small-box nature of the store and may make shopping decisions based on how quick, easy or close a store is to their home or office. HEALTH ENTHUSIASTS Health Enthusiasts don t necessarily follow a strict diet, but health and wellness is important to them and is a primary consideration when grocery shopping. DIET FOLLOWERS Diet Followers typically maintain a strict diet for medical reasons or to manage their weight. They shop at Sprouts because of our broad selection of healthy products at affordable prices. VALUE FOCUSED Value Focused shoppers are always looking for the best deals and actively price shopping.

3 2018 Monthly hemes JANUARY Healthy New Year Game Day Celebrations APRIL Earth Month Sustainability Easter JULY Independence Day Picnic and Barbeque Back to School Planning OCTOBER Pumpkin / Halloween Seasonal Wellness Fall Meal Planning FEBRUARY Heart Health Valentine s Day MAY World Fair Trade Day Mother s Day Memorial Day Grilling AUGUST Back to School Meal Planning NOVEMBER Healthy & Happy Holidays Organic Thanksgiving Attribute-focused Recipes MARCH Spring + Spring Cleaning Seasonal Wellness Frozen Food Month JUNE Celebrate Summer Father s Day Hemp History Week SEPTEMBER Game On! Fall Flavors Sustainability / Hunger Action Month DECEMBER Healthy & Happy Holidays Gift Guide + Meal Planning Attribute-focused Recipes FOCUS AREAS NON GMO Project VER I FIE D nongmoproject.org 2

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6 Mobile offers are a proven and reliable method of engaging shoppers online, in-store or on-the-go. CURRENTLY, SPROUTS HAS K APP VIEWS PER WEEK. Offers can be targeted based on location, attributes, purchase habits, and even exclusively to Sprouts team members! With broad distribution and reach, mobile offers are accessible to shoppers via the Sprouts mobile app, campaigns, website, mobile enabled site and more. 5

7 Case tudies Mobile coupons currently have an average redemption rate of 8%. However, redemption rates for mobile coupons can vary depending on the department, the offer s value, timeframe and any additional marketing support. By participating in mobile app promotions, you ll reach engaged Sprouts customers who typically make more shopping trips. You ll also receive additional insights to better understand purchase behaviors, as well as affinity items in customers baskets. CUSTOMER COUPONS A snack brand provided a FREE mobile coupon to all customers to encourage trial of the new product: 60,000 + CLIPS 36% REDEMPTION RATE TEAM MEMBER COUPONS A pizza brand making its debut at Sprouts launched a FREE mobile coupon for all team members: 63% REDEMPTION RATE 6

8 SOCIAL MEDIA NEW FOR YOU PRODUCT FEATURE APPROXIMATE REACH: K What we ll need from you: High-res product and lifestyle images Product information, including ingredients and nutritionals FACEBOOK LIVE SPONSORSHIP APPROXIMATE REACH: K AVERAGE VIEWS: 100K What we ll need from you: Align with Sprouts content editorial calendar Align with in-store promotion Sponsorship of prize bundle and may require additional funds for influencer activation 7

9 In a Nutshell enewsletter Our In a Nutshell enewsletter is a customer fave for seasonal ideas and healthy living inspiration and the best part is, the is delivered directly to their inboxes once a month! HERE S THE SCOOP: DISTRIBUTED TO 1 MILLION SUBSCRIBERS AVERAGE OPEN RATE OF 40% HIGH VALUE MOBILE COUPON FROM PARTNER BRANDS FEATURE ARTICLES HIGHLIGHTING PARTNER BRANDS CALL OUTS FOR NEW ITEMS AVAILABLE AT SPROUTS HIGH VALUE MOBILE COUPONS IN THIS AVERAGE 10% REDEMPTIONS THERE IS NO COST TO PARTICIPATE IN THE PROGRAM BEYOND THE COST OF COUPON CLIPS AND REDEMPTIONS. 8

10 Weekly pecials Every Tuesday, we deliver a digital version of the weekly ad straight to every customer s inbox. It s an awesome way to introduce mobile coupons and new products to Sprouts customers. HERE S THE SCOOP: DISTRIBUTED TO 800,000 SUBSCRIBERS AVERAGE OPEN RATE OF 50% REQUIRES A MOBILE COUPON FROM PARTNER BRANDS INCLUDES FEATURE ARTICLES HIGHLIGHTING PARTNER BRANDS INCLUDES CALL OUTS FOR NEW ITEMS AVAILABLE AT SPROUTS MOBILE COUPONS IN THIS AVERAGE 10-13% REDEMPTION RATE THERE IS NO COST TO PARTICIPATE IN THE PROGRAM BEYOND THE COST OF COUPON CLIPS AND REDEMPTIONS. 9

11 Deals of the Month Our monthly sales flyer is a great vehicle to showcase your products on sale for the entire month. Now, with more editorial feature than ever, it s also a great space for product storytelling or to include key educational content. REACH 550,000 CUSTOMERS IN-STORE AVERAGE OF 50,000 IMPRESSIONS ONLINE EACH MONTH CONTACT YOUR CATEGORY MANAGER FOR SPACE RESERVATION DETAILS 10

12 Weekly Ad Distributes to 16.5 million households in 15 states and receives an average of 330,000 impressions online each week! Our main advertising vehicle in all regions this full color circular, typically four pages long, is bright, clean and easy-to-read with clear images, prices and product descriptions that allow customer to view the week s hottest deals. DOUBLE AD WEDNESDAYS! Because our weekly ad prices run from Wednesday to Wednesday, customers can enjoy twice as many items on sale in the middle of the week, when the two ads overlap. 11

13 SPEAKER BLOGGER OPPORTUNITIES Do you have a registered dietitian or wellness expert who can lead an educational event themed around your product and its category? Sprouts hosts special events that are designed to engage shoppers and bloggers. These events take place before priority grand openings and in key markets. Store events reach an audience of approximately 50 people, while blogger events are targeted to specialized bloggers. PROMOTION OPPORTUNITIES: ONE-HOUR INTERACTIVE COOKING DEMO ONE-HOUR HEALTH AND WELLNESS LECTURE STORE TOUR LED BY REGISTERED DIETITIAN OR WELLNESS EXPERT (BLOGGER ONLY) MANUFACTURING FACILITY TOUR LED BY WELLNESS EXPERT (BLOGGER ONLY) PRODUCT REVIEW OPPORTUNITIES (BLOGGER ONLY) PROMOTION COSTS VARY BASED ON EVENT DETAILS AND AUDIENCE. CONTACT: MEDIA@SPROUTS.COM 12

14 Regional Marketing EVENTS In 2016 Sprouts participated in more than 550 events, reaching more than 800,000 customers from coast to coast. Come join us as we meet our customers where they work, live and play! Extend your presence outside of the store with samples, coupons and gift packs or prizes. You are even welcome to join us on-site at events reach out to to explore your options. EVENT SAMPLES Share your product out-of-store. Send samples and/or coupons to be distributed at any Sprouts community event. What we ll need from you: A minimum of 200 samples and/or coupons of any SKU mix (from items carried in Sprouts stores), with potential to send thousands of items to larger events. All products must arrive on time and to the correct destination. NEIGHBORHOOD COUPON BOOKLETS In partnership with Mambo Sprouts, we are proud to create six seasonal high-value coupon booklets for distribution at key events and to strategic partners in our communities. These print booklets are designed to drive traffic and increase product trial. Coupons may also be available digitally via the app. Estimated redemption rate: 3-5% Total distribution: 150, ,000 (depending on demand throughout the season) Contact: Matthew Campbell, Mambo Sprouts ext. 17 MCampbell@mambosprouts.com 13

15 SPROUTS STREET TEAM Get guerilla with Sprouts as we expand our reach with third-party street team programs. We will spread Sprouts message and samples across new markets, on campus for back-toschool, and special market activation. What we ll need from you: Tens of thousands of samples or free product coupons that will be combined with select Sprouts iconic products and distributed to thousands of customers. GRAND OPENINGS DEALS & COUPONS Secure special pricing for grand openings with product displays. Contact your category manager for details. Feature your product in the Grand Opening day bounceback booklet gifted to more than 200 lucky customers. Items change annually. Your brand/product must provide a free offer. New store Checkout Challenges. SAMPLES Send any sample products directly to the store, attention of the Department Manager. All samples will be shared with customers as traffic allows. GRAND OPENING DEMOS All demos are coordinated through Direct Demos & Merchandising, so confirm your attendance with them. Include the following information: name of on-site representative(s), product name, and all applicable SKUs. Your team must show up at least an hour prior to the scheduled demo, and provide their own supplies, including table, samples, napkins, etc. NOTE: NO STATIONARY DEMOS ARE PERMITTED DURING GRAND OPENING WEEK. 14

16 The Sprouts Healthy Communities Foundation supports health and wellness causes that directly impact the neighborhoods where our customers and team members live, work and play. We focus on giving locally in the areas of health, nutrition and education. Each year, we invite our vendor partners to support our Foundation s work and to share in the programs funded by our efforts. WITH HELP FROM OUR VENDORS AND CUSTOMERS, OUR FOUNDATION DONATED OVER $1.7 MILLION TO NONPROFITS. LEARN MORE AT SPROUTS.COM/FOUNDATION Contact Lyndsey Waugh at LyndseyWaugh@Sprouts.com or (602) to become a donor or to learn more about partnerships and volunteer opportunities through our Foundation. Through partnerships like REAL School Gardens Sprouts is supporting school gardening programs and funding the creation of a health nutrition curriculum. Over 60 local organizations in states where Sprouts operate will benefit from our 2017 Neighborhood Grants program. 15

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