Slide 1

Slide 2

Beverage Category Roundup

Slide 3

Beverage Bonanza Welcome & Introductions Category Overview Fun Facts Doing Business with the Beverage Team Examples Quiz Q & A 2

Slide 4

Beverage Category Directory BEVERAGES Michelle Frost, Category Manager (804) 734-8000, extension 4-8696 Fax: (804) 734-8009 PP 78696 E-mail: michelle.frost@deca.mil Coffee Ground Bagged, Coffee Whole Bean, Coffee International, Coffee Instant Flavored/Bagged, Coffee Instant Regular, Coffee Canned, Coffee Ground Flavored, Coffee Creamers, K-Cups, Coffee Filters, Instant Breakfast, Tea Bagged, Herbal/Flavored Tea, Instant Tea/Mix, Hot Cocoa, On-the-Go Breakfast Shakes, Instant Breakfast, Shelf Stable Milk, Milk Modifiers, Canned and Powdered Milk Multi-Pack Juice, Cranberry/Cranberry Blend Juice, Drink Mix Syrup Fruit Flavors, Drinks Fruit and Nectars Juice, Vegetable/Tomato/Prune Juice, Aseptic Juice, Lemon/Lime Juice, Pineapple Blends/Juice, Apple Juice/Cider, Grapefruit Juice, Sparkling Juice Soda, Premium Soda, Value Soda, International Beverages, Water, Water Filtration, Flavored/Sparkling Water, Isotonic Beverages, New Age Beverages, Kosher Beverages, Cocktail Mixers, Powdered Instant Drinks, Water Enhancers, Freeze Pops, Energy Drinks, Hispanic Beverages, Liquid Coffee Lisa Owens, Merchandising Specialist Vacant, Business Analyst (804) 734-8000, extension 4-8181 Fax: (804) 734-8009 PP 78181 E-mail: lisa.owens@deca.mil Michelle Bibbs & LorettaTucker - Planogrammers Michel le Photo 3

Slide 5

The Beverage Categories CONUS EX AK HI (THIS WILL BE UPDATED) DeCA 52 Week Ending 2/1/2014Dollars% 1 COFFEE $ 81,760,941 22.83% 2 SOFT DRINKS $ 71,463,962 19.95% 3 SHELF STABLE JUICES AND DRINKS $ 56,738,304 15.84% 4 WATER $ 38,292,023 10.69% 5 NEW AGE BEVERAGE $ 32,783,986 9.15% 6 ISOTONIC BEVERAGE $ 19,131,269 5.34% 7 TEA PACKAGED AND BAGS $ 8,608,910 2.40% 8 COFFEE CREAMERS $ 7,556,784 2.11% 9 POWDERED INSTANT DRINKS $ 6,988,327 1.95% 10 CANNED AND POWDERED MILK $ 4,793,302 1.34% 11 LIQUID COFFEE $ 4,155,423 1.16% 12 BEVERAGE HISPANIC $ 4,132,293 1.15% 13 SHELF STABLE MILK $ 3,949,620 1.10% 14 INSTANT TEA AND TEA DRINK MIX $ 3,858,753 1.08% 15 MILK MODIFIERS $ 3,319,035 0.93% 16 HOT COCOA $ 3,134,449 0.88% 17 LIQUID TEA $ 3,055,414 0.85% 18 HERBAL TEA $ 1,886,940 0.53% 19 COCKTAIL MIXERS $ 1,378,134 0.38% 20 COFFEE FILTER $ 1,128,885 0.32% 21 SHELF STABLE CHOCOLATE DRINK $ 22,634 0.01% $ 358,139,388 100.00% 4

Slide 6

The Beverage Categories BREAKFEST BEV2GOMay COFFEE K-CupsJune COFFEE GROUND BAGGEDApril/July COFFEE WHOLE BEAN BAGGEDApril/July COFFEE INTERNATIONALApril/July COFFEE INSTANT FAVORED/BAGGEDApril/July COFFEE INSTANT REGULARApril/July COFFEE CANNED REGULARApril/July COFFEE GROUND FLAVOREDApril/July CREAMERS POWDERED NON DAIRYApril TEA BAGGEDNov/Dec TEA FLAVORED OR HERBALNov/Dec TEA INSTANTNov/Dec COCOAMay MILK SWEET EVAPORATEDjanuary/June MILK POWEREDjanuary MILK ULTRA HIGH TEMP UHTjanuary K-CUPS ALL OtherJune MILK FLAVORINGMay FILTERSApril JUICE MULTI PACKSMarch/August JUICE CRANBERRY/CRAN BLENDSMarch/August JUICE DRINK MIX SYRUP FRUIT FLAVORMarch/August JUICE DRINKS AND NECTARS FRUITMarch/August JUICE VEGETABLE TOMATO/PRUNEMarch/August JUICE ASEPTICMarch/August JUICE LEMON /LIMEMarch/August JUICE PINEAPPLE OR PINEAPPLE BLENDSMarch/August JUICE OR CIDER APPLEMarch/August JUICE GRAPEFRUITMarch/August SODA PREMIUMDecember WATER FILTRATIONSeptember SODAS ALL FLAVORSJuly/December WATERSeptember DRINKS ENERGYApril/October DRINK MIXES POWDEREDJanuary/February DRINKS ISOTONICOctober SODA VALUEJuly MIX SPECIALITY LIQUID & DRYAugust FREEZE POPSNovember DRINK MIX TONIC CLUB SODAAugust NEW AGE BEVERAGEApril/October WATER SPARKLING OR FLAVOREDSeptember INTERNATIONAL BEVERAGES - HOLIDAYJanuary NEWITEMPRESENTATIONSNEWITEMPRESENTATIONS 5

Slide 7

Overall Category Management Objectives Grow Volume, Grow Value, Grow Loyalty Transform strategies of business plan to category plan which should be implemented around the The First Moment of Truth Use fact-based decision process Continuously focus on best practices, recognizing different shopper behavior 6

Slide 8

Marketing Strategies Right Assortment Right Prices Right Promotions Right Location and Space in Store Right NPIs 7

Slide 9

Marketing Strategies (Continued) Traffic Building Getting more patrons to the store and the category Transaction Building Increasing the patrons average spend while showing savings Creating Excitement Continuing to offer innovative, fashionable products and promotions Image Enhancing Strategy aimed at creating the right image toward the category consumer Your commissary, its worth the trip! 8

Slide 10

Tactics Assortment Focus on the leading brands of the category Review marginal items with low contribution to sales Focus on new-to-the-world products Price Shelf prices offering patron savings of 30% Optimize sale prices no lower outside the gate Focus on top brands Merchandising Shelf space sufficient to last between stocking periods Sufficient space for Regional and S-coded items Promotions Continue creative theme events Develop activities and events for new item introductions Use pallets when offered to simplify merchandising 9

Slide 11

How Joint Business Plan Overall Objective Working together to create better business results for both DeCA and you Create better understanding of common business issues and opportunities Joint development of growth strategies Joint development and implementation of category development plan Ongoing monitoring and negotiation based on common understanding and best practices 10

Slide 12

How The Joint Business Plan-Guiding Principles Common focus to grow the category, based on improved consumer and shopper satisfaction, greater volume, greater turnover Work in the greatest possible transparency and there should, in principle, not be any sacred cows Common goals and objectives and decisions based on facts and data Both parties must be committed to implement decisions Frequent check point discussions Results for All 11

Slide 13

Bonanza Quiz 12 Lets see if you were paying attention

Slide 14

Bonanza Question 1 13 This city in the US consumes 7 times more coffee than any other US City.

Slide 15

Bonanza Question 2 14 According to many historians, from which country did coffee originate?

Slide 16

Bonanza 3 15 What 2 countries were the first to bottle Coca Cola outside of the US?

Slide 17

Bonanza 4 16 What soft drink manufacturer was the first foreign product allowed into Russia?

Slide 18

Bonanza Question 5 17 Which major soft drink is a blend of 23 different flavors?

Slide 19

18 Bonus What is the Name of this Iconic Beverage Character

Slide 20

19 Questions

Slide 21

20 Thank You