Hungary Food and Drink Report Q2 2013

Generally speaking, we believe that 2013 will be another challenging year for the Hungarian consumer.A struggling economy – due to both external and internal factors that will combine to keep the country inanother year of recession – will continue to hamper discretionary spending patterns. Factors such ascontinued fiscal austerity, rising unemployment, depressed economic confidence, poor credit dynamicsand a still-large overhang of debt will conspire to place downward pressure on consumer spending.

Headline Industry Data (local currency)

2013 per capita food consumption: +2.59%; forecast compound annual growth rate to 2017: +4.21%

2013 alcoholic drinks value sales: +4.53%; forecast compound annual growth rate to 2017: +3.92%

2013 soft drinks value sales: +2.09%; forecast compound annual growth rate to 2017: +3.88%

2013 mass grocery retail sales: +4.00%; forecast compound annual growth rate to 2017: +5.05%