h2 ydro2010 investor presentation

H2

YDRO® A GLOBAL BEVERAGE PLATFORM

© 2008, Global Brands, LLC This presentation is confidential, proprietary and not for distribution

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Table of Contents

The Mission The Global Market The Opportunity The Brand Competitive Advantage Business Strategy Channel of Distribution Marketing The Deal Use of Funds Milestones Exit Strategy The Team

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The MissionTo be known around the world for products that deliver functional benefits with a single minded dedication to quality and design

Our mission is to establish Global Brands, LLC as a dominant Global Beverage Platform by offering our customers, our suppliers, and our shareholders performance brands that will deliver health, vitality, and well-being .

Our mission is to create an organic growth strategy as well as strategic acquisitions that allows u to bring good to the world -- by refreshing people every day and inspiring them with optimism through our brands and our actions."

To maintain a strong customer focus, to encourage, develop and support our employees, to maintain the highest level of professionalism, to empower our communities, and to achieve long term growth and profits above the industry average

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The Global Bottled Water Market Is Huge$45+ Billion

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The Top 3 Markets ( Western Europe, US, and Latin America are 71% of Global Sales)


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CAGR is Increasing Rapidly in Double Digits10-15% in 3 Key Markets: Pacific ,U.S., West Europe

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Water Consumption (Liters/Millions) by Country Top 10 markets by per capita 2006

Water Consumption by Country Top 10 markets by per capital, 2006 (estimated)

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Per Capita Consumption (Liters) by Country Top 10 markets by per capita, 2006

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Per Capital Consumption is highest in the most developed market (Western Europe which accounts for 44% of Global Bottled Water Sales


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Organic Growth of the Category in the US Market is Increasing Among all Age Groups The category’s growth has transcended beyond the “traditional” bottled water consumer segment of 20 - 40 year old

females Between ’94 – ’00, bottled water doubled its share across every age segment and both genders Belief that underlying “mega-trends” will continue to provide a strong catalyst for growth

Bottled Water Share of Total Beverage Consumption

SIP Consumer Diary Panel -- Total US Health & Wellness

Proactive approach to health Shift from “looking good” to “feeling good”

Aging of the population Boomer generation will swell the ranks of the

over 60’s, fueling healthy beverage trend Post 9-11-01 Safety Concerns

Increasing concern about municipal water supply safety

Life Simplification / Convenience Reducing stress and embracing convenience

Great Desigm Prestige

Consumer “Mega-Trends”

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The OpportunityFor Global Brands, LLC to be a Dominant Global Beverage Platform

The need for quality drinking water is a major global problem which continues to increase every day. Over 1.2 Billion without safe water.

To bring Functional, Flavored water and assorted beverage products to consumers around the world with a Global brand strategy providing local taste and customization.

To create a diversified portfolio of beverage products that deliver consumers great taste and functional benefits that are solution driven (e.g. Antioxidants for Heart and Calcium for Bone density or Sport Drinks enhance with Electrolytes for Hydration).

Categories to develop include: Water, Juices, Energy Drinks, and RTD Tea.

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The Brand

H2YRDO® is positioned as a “water replacement.” People are bored drinking plain water.H2YDRO® Flavored Water is the 1st Premium, All Natural, No Artificial Sweetened Water

H2YDRO®

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Brand Image Differentiates Itself from the “Nothingness” of Water

Brand Essence

Brand Personality

Emotional Benefits

FunctionalBenefits

Brand Attributes

Personable, optimistic, stylish, active, self-assured,

contemporary

Everyday enjoyment, feel good about myself, vitality, uplifting, trusted, simple solution, radiant, pampering

Meets constant daily hydration and health needs, convenient, portable, consistent quality and safety, best tasting Flavored

bottled water, good value

Purified water, carefully designed and enhanced with electrolytes for health & good taste, stylish bottle, stylish logo, broadly accessible, mainstream pricing

with “high end” positioning, Variety of flavors with “health enhancement”

Aspirational

“Better for You” “Healthy, Vibrant

Brand Pyramid

H2YDRO®

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The Brand Organic Flavored Water

H2YDRO® Organic is the ORIGINAL all Natural Organic Sweetened and Flavored Water Replacement drink that fortifies the body more effectively with Vitamins B3, B5, B6 & B12.

H2YDRO®

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Organic Enhanced Sparkling Imported Purified Spring Gallons

Single Serve Multi Serve

New Age Enhanced Beverage Market is growing 8x faster than traditional CSD

The Brand Landscape

H2YDRO® is uniquely positioned to be the #1 “water replacement”. We position ourselves as “the” premium flavored water in the category. H2YDRO® is an all natural, no artificial sweetened beverage that hydrates you more quickly than National Brand Leaders.

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Flavored Water is Outpacing the Category in 2 Key Areas:

Outpacing growth of regular water

Driving higher retail prices per eq case

Retail price per EQC $9.08 $4.23

Flavored Water Segment Growth is Being Driven by:

Household Penetration

Buying Rate

The Flavored Water Segment is Growing, Indicating Expanding Consumer Interest

+36% vs

2002

+36% vs

2002

+65% vs

2002

+65% vs

2002


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H2YDRO Scan Data

0

10

20

30

40

50

60

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90

To

tal C

as

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Chain A Chain B Chain C Chain D Chain E Chain F Chain G

H2YDRO® brand inception was April ’05 H2YDRO® monthly chain introduction supported by either a 5/$5.00 or 10/$10.00 feature Ad or 4/$5.00 in-store TPR H2YDRO® is currently being sold in over 4,000 outlets across the United States

Attractive SPP / Velocity Validates Consumer Acceptance


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Consumers Want Different Beverages Based On Their Need States

Convenient Complement

Enjoyable Indulgence

Natural/Nutritious

PureHydration

EnjoyableRefreshment

Hydration

SubstantialNutrition

Health and

Wellness

Convenient packaging and wide availabilitymake these beverages appropriate for a variety of occasions.

Satisfied by Beveragesthat offer health benefits.

Health-conscious consumerlooking to quench their thirst.

Satisfied by dairy-based beverages in the morning to provide lasting energy, proteins, vitamins and minerals.

Usually consumed by adults in social situations who are seeking a rich-tasting,

rejuvenating and mood-enhancing beverage.

Consumers have identified 6 key consumer need states that drive beverage tastes, preferences and consumption

Functional Beverages

Satisfied by Beveragesthat offer a real or perceived functional benefit

Indulgence

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Water is the #2 Beverage Category next to CSD

Bottled water surpassed such staples as Beer, Coffee and Milk CSD will continue to be the #1 beverage category. Non CSD Beverages has surpassed CSD as the #1 Beverage Category

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Functional Beverages are Driving the Growth

Beverage Companies Comprise 5 of the Top 10 Growth Categories in Food

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Growing Segments Reflect Increased Beverage Consumption

0%5%

10%15%20%25%30%35%40%45%50%

30%

45% 46%

49%

40% 42% 42%

Percent of Growth From Category Expansion

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The Top 10 US Brands by Dollar Volume

Nestle Water Brands: $2.545 Billion Coca-Cola Water Brands: $979.0 Million Pepsi Water Brands: $936.0 Million

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Creating Competitive Advantage

Segment Growth Is Attracting New Competition

SOBE: Life Water (Pepsi)•Launch date: 2007•Flavors: Kiwi Strawberry, Pomegranate Cherry, Passionfruit Citrus, Orange Tangerine, Blackberry Grape

Vitamin Water (Coca-Cola)

•Launch date: 1996•58mm eqc, growing @

20% YTD.•Flavors: Multiple fruit

flavors, vitamin enhancedFlavorSplash by Aquafina

•Launch date: 1/24/2005

•Flavors: Raspberry, Lemon-lime, Wild Berry.

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Dasani Plus•Launch date: 2007•Flavors:

Pomegranate Blackberry, Orange Tangerine, Kiwi

Strawberry.

H2Odwalla ( Coca-Cola)

•Launch date: 2007•Flavors: Strawberry

Kiwi, Ginger Plum,

Blueberry Tea


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Successful Execution of the 5 Key Business Drivers

Product and Package Innovation Develop New Multi Channel Opportunities Non-Carbonated beverage portfolio expansion

Expand the beverage portfolio to strengthen the revenue base

Growing product availability through cold drink placement and expansion

Delivering the highest levels of customer service and satisfaction: exceed the customer’s expectations Continuous focus on developing sales force capabilities Strengthen Key Account Management Skills

Revenue Management and Cost Discipline Managing Marketing Spend to deliver ROI targets

Continuous emphasis on Low Cost Supply Chain

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H2YDRO: Business Strategy

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VALUESWe value in everything we do:1.An unwavering commitment to quality and excellence2. Honesty, Integrity & Ethics’3.Personal development and empowerment4.Innovative & entrepreneurial attitudes, actions and spirit5.Treating people with fairness and respect and as a partner in the enterprise6.Open communication and teamwork7.A healthy work/home life balance8. Passion and loyalty… to guide our actions in all aspects of day-to-day business

H2YDRO is positioned to become a Global

Beverage Platform of Choice

Our innovative and entrepreneurial team isdedicated to quenching the thirst for clean and

good tasting water around the world.

#1 Build and inspire a cohesive team of skilled and passionate people who are committed to

seeking a better solution

#2 Insist on superior quality in everything we

do.

#3 Achieve superior growth in volume in

earnings.DRIVERS

MISSION

20/20VISION


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Business Strategy: Creating a Unique andDifferentiated Global Platform for Growth

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Economic Value Creation

Unique Platform for Growth

Global Beverage Growth EnablersMarketplace Execution – 4A’s

(Availability, Affordability, Acceptability, Activation)

Integrated MarketingTargeted Key Account Selling

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Business Strategy Jumpstart Water Beverage Strategy Through Aggressive Organic Growth and M&A

Grow Core

H2YDROBrand

CaptureEmerging

Need State

Platforms

IncreaseCustomer

Value

A Clear Strategy to Capture Market Opportunities

Superior Customer Service and Enhance Retail Relationships

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Business Strategy Business Strategy A multi-tier water strategy appeals to a larger A multi-tier water strategy appeals to a larger consumer base & maximizes revenue. consumer base & maximizes revenue.

Premium

Mainstream

Value

Retail

Price

Enhanced

DASANI

Aquafina

SourcedPurified

Dannon

Perrier Group (regionals)

Suntory (regionals)

Small Regional Brands

Value Brands

Pure Life

EvianFiji

Propel, nutri-water

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Lead New Beverage Trends Through Innovative Offerings Platforms and Delivery Systems

Juices…RTD Teas Water Pure/Spring Enhanced Active Fitness Energy

Fitness Drinks Energy Drinks

Grow Current H2YDRO Water Brands Build a Portfolio to satisfy targeted beverage needs Leverage Platforms of JV Partners Identify Targeted Acquisitions Accretive to Earnings

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Geographic Structure

North America South America Asia/Pacific

Central America

Mexico

India

Canada

Europe

Middle East

Building a Global Beverage Platform by Concentrating on the Top GrowthMarkets and Top Growth Product Categories in each Geography.

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ChinaHong KongIndonesiaThailand

KoreaJapan

PhilippinesAustralia

New ZealandMalaysiaViet NamSingapore


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Channels of Distribution

In Market Launch Date

Packaging Single Bottles

Targeted Channels Grocery DSD (Direct Store Delivery)/Up & Down the Street Convenience: 7-11; Circle K, Mobil on the Run/ Drug: Walgreen’s, CVS, Rite-Aid Club: Costco, BJ’s, Price Club Specialty: Panera, National Chains Mass Market: Wal-Mart, Target, K-Mart

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Building the Channel A Systematic Approach to Long Term Success

Create Build Expand

Objective

Focus

Tactics

Sales force

Build with early adopters Grow consumer circle Extend beyond core consumer segment

Drive on-trade; Drive on-trade and off- Maintain penetration Establish initial pull trade presentation target wider consumers

Promotions drive image Continue BTL;ATL with Shift to ATL focus;and Trial; BTL product focus maintain BTL spend

Build on-Trade On- trade focus, build Enhance presence inConsumer relationships modern trade presence on and off trade

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H2YDRO Comes to Life 360 Integrated Marketing Campaign

PUBLICRELATIONS

PUBLICRELATIONS

SAMPLINGSAMPLINGMERCHANDISINGMERCHANDISING

NATIONALMEDIA

NATIONALMEDIA

RETAIL PROGRAMS

RETAIL PROGRAMS

PREMIUMSPREMIUMS

Proprietary ShelvingCoolersDisplays

In-Store SamplingEvents

Dealer LoadersT-ShirtsBack PacksMP3 Player

NewspaperMagazineRadio

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Integrated Sales/Marketing Strategy

Integrated Marketing Strategy Brand Building, Media, Internet,

In-Store Promotion Opening Launch: Display, TPR, Circular, Demo Annual Promotional Activity Calendar Annual Volume Discount Retail partnering in Community Programs In-Store Displays, Sampling, New Flavor/Product Introductions

Multi-Channel Distribution Strategy Make the H2YDRO brand accessible

Sponsorship and Free Sampling Event Marketing

Individual Marketing Plans for Key Accounts Tailored Marketing Program Target to Maximize Sales & Profits

Tiered Pricing Strategy By Channel, By Account, By Usage

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Marketing Strategy Marketing Strategy A multi-tier water and diversified product strategy to aggressively A multi-tier water and diversified product strategy to aggressively grow retail sales (Availability, Affordability, Acceptability, and grow retail sales (Availability, Affordability, Acceptability, and Activation)Activation)

Strategies Tactics

• Sampling• Couponing/IRC and National Media Coupons • Introductory Pricing

• Use existing and new H2YDRO® Merchandising tools

• Premiums

Drive Trial

Drive Availability

Drive Awareness• National Media• Effective POS• Extensive PR Plan• Customer programming

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Integrated Marketing Programs

Brand Building Packaging Flavor Name Recognition

Positioning Good For You Consumer 25-55

Merchandising POS

Pole sign, Shelf Talker, Static Cling, Vending Strip, Counter Card, Ceiling Dangler

Coolers Racks Vending Collateral

Media Radio, Print, PR, Viral Marketing

Sponsorship Sports, Cause Marketing

Trial & Usage Giveaways/ Sampling

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Activities and Milestones:

May 2004

founded

Funding Activities

TodayMarch 2008

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Low Cost SupplyChain Developed

April 2005

Wild Flavor Alliance

CH Robinson Inland Label

Adirondack Sensient FlavorBeverage

August 2004 –March 2005

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1st Retail Shipments

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Retail Accounts

Sales: $2.4 Million2005-2007

Wal-Mart Target

Albertson’s Jewel Osco

Stop N Shop Ralph’s

Ingle’s Raley’s

H2YDRO®

Organic Launched

April 2007

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Exit Strategy

Exit Strategy: Precedent Transaction

Exits, include: Strategic Buyers: Nestle, Coca-Cola, Pepsi, Private Equity Groups: Catterton, J.W. Childs, TSG, Castanea Foreign Companies: Tata(India) IPO

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DateTarget Acquirer Target Business Description Transaction Value Multiple of Revenue Multiple of EBITDA

2006 SOBE Pepsi Flavored Functional Fruit Drink $265 Million 3X N/A

2007 IZZE Pepsi Carbonated Juice Drink $75 Million 3X N/A

2007 FUZE Coca-Cola Meal Replacement/Diet Drink $265 Million 3X N/A

2007 Vitamin Water Coca-Cola Enhanced Vitamin Water Drink $4.1 Billion 10X N/A

Mean 3X 16.5X


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The Team

Dan E. Silberberg: President and Chief Executive Officer. • 30 years in Consumer and Consumer Packaged Goods• CEO Globex Brands, Inc., H2YDRO flavored Water Brand, start-up• Bottom Line P& L experience running business from $7 Million -$ 400 Million• Background in multiple industries: Beverage, HBA, Business Consulting, Women’s Apparel, IT• Entrepreneurial Background, Start-Up, SME, $Billion Publicly Traded Companies• CEO Crabtree & Evelyn, Nex-Gift, St. Albans of London, and Global Brands, LLC• EDS/A.T. Kearney, Oracle Corporation, Liz Claiborne, Jones Apparel, Levi-Strauss &

Co.

Additional Hires:•Chief Financial Officer•Chief Marketing Officer•EVP, Production, Supply Chain, Warehouse/Distribution•EVP, Sales and Regional Management

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A GLOBAL BEVERAGE PLATFORM

Dan E. SilberbergChief Executive OfficerGlobal Brands, LLC173 Conant Rd.Weston, MA. 02493T.781-899-8205M.781-223-4531F.781-891-5610dberg@globexbrands.com

h2 ydro2010 investor presentation

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