Special Markets Comments From Our Consumers EI Wee Saat Per ay KEN Fü o 6 In 2003, a significant contributor to growth in Canada was the addition of  Crisco brand sales.  In Canada, as in the U.S., we have dedicated resources to revitalizing this brand, and we are seeing positive results.  International The majority of sales in our International business area are in Canada and Australia. Our Canadian business performed well in fiscal 2003, while our Australian operations remain challenged.  Our strategy for the Industrial business is to focus on our current bakery and dairy customers, doing all we can to secure our place as their preferred supplier of formulated ingredients while  maximizing the utilization of existing assets.  As we announced last year, in keeping with our brand-focused strategy, we are discontinuing  the production of certain less-profitable Industrial items. To date, approximately $21 million of such business has been eliminated, and by the end of 2004, we will discontinue another $24 million. Industrial Sales and profits in our Industrial business area also exceeded expectations this past year, primarily due to growth in the business we acquired last year from International Flavors and Fragrances. The U.S. portion of that business is now fully integrated into our production facilities. Our Foodservice group is also responsible for managing the sales of  Smucker’s Uncrustables to schools and restaurants.  Uncrustables sales in this channel increased 38 percent in 2003, making it  the fastest-growing line in our Foodservice area. With the recent introduction of a pre-toasted grilled cheese sandwich, we anticipate continued significant growth opportunities for this sandwich platform. Uncrustables are now enjoyed by children in more than 4,000 school systems throughout the U.S. Foodservice Despite weaknesses in the travel and leisure industry, we saw very good growth  in our portion control lines in fiscal 2003. In fact, sales of  Smucker’s and  Dickinson’s portion control products to hotels, restaurants, airlines, and healthcare institutions have never been stronger.  Beverages Our Beverage business set a new record, with a double-digit increase in sales of  R.W. Knudsen Family, Santa Cruz Organic, and  Smucker’s powdered lemonades. Sales of our natural foods brands in the health and natural foods channel are outpacing the category’s growth, and we  continue to gain placement in mainstream grocery stores as they expand their offerings of leading  natural food brands.  “I would like to thank you for your incredibly terrific Smucker’s  natural chunky peanut butter! It is, in my opinion, the best peanut butter on the market. It is so good I could eat it straight from the jar (and I have!). Your preserves only add to the superb taste of the peanut butter. When peanut butter and jelly taste this good, who needs bread?!”