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## A Selection of Our New Products Launched in 2010 

We had a great lineup of new product introductions that contributed to good growth across our businesses. 

<img src='content_image/137379.jpg'>

Product innovation also drove growth for our international busi- nesses with new fl avors of Häagen-Dazs  ice cream in Europe, new formats of Wanchai Ferry  frozen meals in China, and chewy versions of Nature Valley  granola bars in a number of markets. 

## Leading Market Positions in U.S. Retail Measured Outlets 

Source: ACNielsen measured outlets, comparable 52-week basis 

We’re supporting our brands with increased levels of media spending. In fiscal 2010, our worldwide advertising and media spending reached $908 million, a 24 percent increase over the prior year. In fact, since 2007, our annual media invest- ment has increased by more than $400 million. Our largest percent increases have been on digital and multicultural media. We’re reaching more multicultural consumers, particularly the 

fast-growing Hispanic population, through increased television, print and online advertising. 

Millions) Share % Rank We’re partnering with retailers of all types to drive sales growth. While the majority of our sales today are with tradi- tional grocery retailers, food sales in nontraditional outlets, such as supercenters, drug, discount and club stores, are growing faster. We’re collaborating with all these customers on package formats, in-store merchandising events and online marketing. We’re also applying our consumer insights capabilities, identify- ing consumer shopping behaviors and optimal store shelf assortments. In the nearly half a trillion dollar U.S. market for food eaten away from home, we’re focused on the channels with the best opportunities for future growth, including foodservice distributors, schools, hospitals and lodging chains. We’re also adding distribution of our products in the growing convenience store channel and bringing our category management skills to these outlets. 

We’re growing sales for our brands in international markets, too. Net sales for our wholly owned International business grew 4 percent in fiscal 2010. Segment operating profit was lower for the year due to foreign currency effects. Adjusting for currency effects, operating profit grew by double digits despite increased levels of media investment in this business. We’re focused on four key product platforms—cereal, super-premium ice cream, convenient meals, and wholesome snacks—to drive growth in developed markets and in emerging markets such as China, India and Brazil. We’re also partners in two international joint ventures, Häagen-Dazs Japan and Cereal Partners Worldwide (CPW). 

