Company profile

Savero Trading Ltd

Address:15, Athinas Street, 2063 Strovolos NicosiaP.O.Box 25739, 1311 Nicosia

Tel 00357 22450260Fax 00357 22494622Email: [email protected]

[email protected]

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• Savero Trading Ltd

• Routes to Market Cyprus Ltd

• Media +

• Harringtons

• Brewservice

• Military Duty Free

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Cyprus

•NICOSIA OFFICE

•BONDED WH

•DHERYNIA WH

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Country OverviewFull country name : Republic of CyprusArea : 9251 sq km (3608 sq mi), with 3355 sq km in North Cyprus (not

recognized by United Nations)Population : 862.900 Capital city: Nicosia (pop 193,000)People : Cypriot (Greek 76%, Turkish Cypriots 10%, Other 14%)Language : Greek, Turkish, EnglishReligion : Greek Orthodox, MuslimGovernment : Presidential RepublicPresident : Nikos Anastasiades

GDP(purchasing power parity): $22.98 billion of International dollars (2012) GDP (real growth rate) : -2.4% annual changeGDP per capita : $26,315 International Dollars (2012)Major industries : Tourism, fruit & vegetables, wine, cement, clothing, shoesMajor trading partners: Russian, Bulgaria, UK, Greece, Italy, Japan, Germany.Member of EU : Yes from May 2004

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Population SplitPopulation : 862.000 (excluding occupied territory)British Military & United Nations : 3 basis, 8,000 service personnelExpats on retirement : 47.500 people (European & Arabs)Tourism: 38.722,92 (Figures 2012) Tourists arrivals by country (2012): Britain: 959,463Russia: 474,426 Greece: 132,990 Germany: 144,407Sweden: 117,286 Other = Swiss 46.853, France 36.099, Netherlands 33.024,

Tourist season : between June & October

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- 1924 established a family business specialising in wines and spirits servicing the area of Kyrenia & Nicosia.- 1986 established a new company in Nicosia specialising in imported beers.- 1986 commenced beer & mineral supply to the British military market in Cyprus.- 1992 became the No1 Imported Beer Specialist in Cyprus- 1999 expanded business incorporating new warehouse facilities in Dherynia Industrial area with storage capacity of 1728 pallets equivalent to 125.000 cases of beer or 39.000 30L beer kegs .- 1999 developed key account supply to local supermarkets (retail sector) in additional to key account supply to wholesale, leisure & catering sectors.- 2005 expanded to wines and spirits where for 2011 expected volume is 500K LT spirits and 350K LT wines.- 2011 became distributor of other companies and brands imported by other companies.- 2012 plans for new owned warehouse 4.000 m2.

Company Background

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Overall Company Mission

To maintain the position of the leading:

- Imported beer and technical services specialist in

Cyprus across all sectors / channels to market.

- and fastest growing company in associated areas

of imported wine, spirits and minerals

In order to be the best and only choice for range,

quality, service and price within these imported

specialist categories.

Note: Each operating division has its own mission feeding into the overall

company mission. 7

Savero Portfolio Structured in 8 divisions

Packaged beersThe portfolio of alcoholic packaged beers include: Budweiser, Foster’s, John Smith, Kronenbourg, NBA, Carling, Caffreys, Worthington, Cobra Konig Ludwig, Warsteiner, Staropramen,Paulaner, SOL, Trio Stout, Red Mex, Tecate, Dos Equis, Atlas, Hertog Jan, Classe Royal, Oranjeboom, Breda, Lindener, 3 Horses, Weidmann, Bergenbrau, Marston’s Pedigree, Oyster Stout, Belhaven, Hobgoblin, Old Empire, Cumberland Ale, XXXB Bateman’s, Summer Lighting, Septem, Pilsner Urquell, Peroni, Grolsch, Timisoreana , Miller Genuine Draft

For the British Bases Duty Free Market since we are exclusive suppliers for all the beersand other beverages since 1986 we only have: Stella Artois, Becks, Boddinghtons, WKD, Amstel

Ciders Magners, Bulmers, Strongbow, Woodpecker Alcoholic Beverages / Fabs / Wines

Reef, Skyy Vodka, Mickey Finns, Agwa, Apostolos Lykos, Sarrail, Creta Olympias, Cfgv, Paul Sapin, Caldirola,, Skorpios Vodka, Scorpios Tequila, Petrikov, Toorank Spirits, Carnaby Brown London

Draught Beers The draught business is separated specializing in different UK, Irish, Belgian, German and Czeck draught beers.Fosters, Kronenbourg, John Smith, Strongbow, NBA, Carling, Caffreys, Worthinghton, Warsteiner, Konig Ludwig, Paulaner, Clase Royal, Marston’s Pedigree, Oyster Stout, Oranjeboom(New established Brewservice company dealing with all operations of Draught Business)

Non Alcoholic Beverages Irn-Bru, Tizer, Barr, Dandellion & Burdock, Rubicon, Sun Exotic, Coppa Cocktails, Finest Call ,Loutraki Accessories and Draught Equipment

Diamond Dispensers, Brewservice, Blue Gas, Vetro Due. Theme Pubs

Influence existing pub owners in decorating outlets with Savero / brewers expertise (decoration companies: Regal Hawk Interiors) 8

Only Distribution

Only Distribution

Only Distribution

Savero was established by Savvas & Eros Antoniades in 1986 the third generation of the Antoniades family which have been wine and spirit merchants since 1924.

Savero are mainly importing premium beers from all over the world and now we are main distributors for more than 40 companies worldwide.

We visit more than 3.000 customers per week, we have around 60 employees and we do not use any wholesalers. Our turnover is around €10.000.000 per year.

Introduction

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Main competitors brands of Imported beer.

KEO - Heineken, Amstel, Erdinger, Murphys

Coca Cola stopped distribution agreement with Heineken after 20 years since they spent a fortune in order to become the main player in the market despite local pricing success. The brand moved to KEO who have been focusing adverts and marketing targeting locals.

Carlsberg Cyprus – Guinness, Corona, Magners

New Company from Carlsberg - Stella Artois, Boddingtons, Hougarden,

Keo Cyprus – Heineken

Desras – Lost the Inbev brands. Krombacher beer

Savero – Budweiser, Staropramen, Carling, Caffreys, Worthington, Cobra, Foster’s, John Smith’s, Newcastle Brown Ale, Strongbow, Woodpecker, Bulmers, Sol, Tecate, Dos Equis, Warsteiner, Konig, Paulaner, Pedigree, Old Empire, Hobgoblin, Oyster Stout, Jenning Cumberland, St. Edmunds, Belhaven, Abbot Ale, Scottish Stout, Old Speckled, Ruddles County, IPA Export, Hertog Jan, Oranjeboom, Classe Royale, 3 Horses, Wertha, Breda, Bergenbrau, Lindener.

RTM – Becks, Franziskaner, Lowenbrau, Pilsner Urquell, Peroni, Grolsch, Kozel, Timisoreana, Miller Draft, Kopparberg, Sovereign Lager, Fat Apple Cider

RTM – Gray Market: Guinness, San Miquel, Smirnoff Ice, Carlsberg, Perrier, Magners

Savero occupies prime position in the imported premium lager sector on package, dominating the imported premium draught sector as well as the imported cider / ale beer sector for both package and draught.

Beer Market in Cyprus

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Savero philosophy

• Exclusive distributor for international beverage companies

• Hold a balanced portfolio

• Capitalise business growth utilising effective sellective distribution

network

• Capitalise on relationships with our off trade retailers (customers)

• Build brands within market constraints

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Structure

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Savero future expansion (2013-2015)

• Specialist / niche items to be added.

• Re-locate headquarter and warehouse in new up to date

facilities

• Re-focus and expand operation in Lebanon.

• Develop liqueur retail stores (« cavas ») in Cyprus main

cities or supply (« cavas ») exclusively.

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On trade distribution universe

100 140500

750

140 200

400

300

65

840

500

1000

Hotels 2/3* Hotels 4/5* Appartments Bars/Pubs

Clubs/Discos Cabarets Restaurants Taverns

Kebab houses Snack bars Confectionaries Others

Total universe : 4,935 outlets

Selected universe : 1,048 outlets Around 3,000 customers don ’t list any imported brands

On Trade 57%

Package 72%Draught 28%Total 100%

Beer/Cider Industry

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Savero selective on trade distribution

0

50

100

150

200

250

300

350

400

450

Hotels 4/5* Bars/Pubs Clubs/Discos Restaurants

2000

2004

2011

2012

2013

400

140

300

160

Numerical distribution/total universe : 20%Numerical distribution/selected universe : 100%

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Off trade distribution universe30 550

1800

200

780

Hypermarket Supermarkets Corner stores Kiosks Others

Around 2000 outlets don’t list any imported beer

•Total universe : 3,360 outlets•Selected universe : 1,390 outlets

Off Trade 43%

RB 39%NRB 24%CANS 37%Total 100%

Beer/Cider Industry

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Savero selective off trade distribution

0

100

200

300

400

500

600

700

800

900

Hypermarkets Supermarkets Kiosks

1998 2000 2004 2011 2012 2013

560

30

800

•Numerical distribution/total universe : 40%

•Numerical distribution/selected universe : 100%

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Cyprus

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Company Background- Mother Company Erot.L.Antoniades & Sons in 1927 established a family business

specialising in wines and spirits servicing the area of Kyrenia & Nicosia.

- Savvas & Eros established Savero Trading Ltd in 1986 in Nicosia specialising in

imported beers.

- After they became the No1 Imported Beer Specialist in Cyprus

they created the company Brewservice Cyprus Ltd in 1990

- In 2008 RTM (Route to Market Cyprus Ltd) was established with plans to operate

using a different warehouse and sales team with the aim to import and distribute

other valued brands and perhaps grey market products and act as a wholesaler as

well as retailer with cavas for all the brands and expand distribution in non selective

accounts and villages as well.

- Also RTM to control shares and distribution in other distribution related companies

in neighbourhood countries.20

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Overall Company Mission

- The company’s mission is to import and distribute

imported beer, wines and spirits and to offer the most

professional sales and distribution services to the

customer.

- To be able to deliver all well known brands of above

lines of products, with one delivery, one invoice.

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RTM Philosophy

• Main agent for international companies as well as valued

brands

• Aim for a balanced portfolio of all well known brands as well

as valued brands.

• Exclude and minimise the parallel traders from our Savero /

RTM product deals which are killing our brand positioning.

• To be able to supply all the brands in one delivery, one

invoice.

• Increase distribution of valued brands in other non selective

accounts (like villages) and why not to compete with local

products pricing.22

RTM PORTOFOLIO

St. Edmunds

Greene king IPA

Ruddles county

Abbot Ale

Belhaven twisted thistle

Belhaven Fruit Beer

Scottish Stout

Old SpeckledHen

Beck’sFranziskaner Pilsner UrquellGrolsch PeroniMiller Kozel Sofiero

Kopparberg Lowenbrau Crabbies AlcoholicGinger Beer

Desperados Timisoreana

WKDSmirnoffIce

PerrierBarcardiBreezer

StellaArtois

Heineken

Amstel

Shark

AsahiGuinness CoronaCarlsberg SomersbyChimayHolstenTuborg

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RTM Structure

•At first stage these departments have the support

from Savero Trading & Brewservice

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Routes to Market

• New products in portfolio, mainly in the beers, wines, spirits,

liqueurs and mixes.

• Have a separate warehouse and Bonded, other than Savero,

between Nicosia & Larnaca.

• Expand operation or get shares in other distribution

companies in neighbourhood countries

• Develop liqueur retail stores (« cavas ») in Cyprus main cities

• Create own label brands like own label spirits and liqueurs at

valued price that can be exported all over the world. (the

same for valued beers at first stage and then wines). 25

On trade distribution universe

•Total universe : 4,935 outlets•Selected universe : 980 outlets

On Trade 57%

Package 72%Draught 28%Total 100%

Beer/Cider Industry

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RTM selective on trade distribution•Target•Numerical distribution/total universe : 15%•Numerical distribution/selected universe : 75%

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Off trade distribution universe

•Total universe : 3,360 outlets•Selected universe : 1,360 outlets

Off Trade 43%

RB 39%NRB 24%CANS 37%Total 100%

Beer/Cider Industry

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RTM selective off trade distribution

30

150

280

30

250

500

30

400

600

30

550

780

0

100

200

300

400

500

600

700

800

900

Hypermarkets Supermarkets Kiosks

2008 2009 2010 2011

•Numerical distribution/total universe : 40%

•Numerical distribution/selected universe : 100%

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©Anheuser-Busch InBev

•Tri-visions & Billboards

©Anheuser-Busch InBev

•Aznet Media Plus Ltd is specialising on outdoor advertising and operates billboards in Cyprus since 1998. The company and staff work with a strong focus on client service. The company’s network consists of strategically placed, high profile displays serving medium and smaller markets in key Cyprus regions. Aznet Media Plus serves a diverse portfolio of clients ranging from large companies and marketers to locally owned small businesses. Aznet Media Plus delivers an effective, high quality advertising medium that is an asset

to advertisers that are served.

•Aznet Media Plus reaches the public like no other media. Billboards deliver consistent, proven results that provide the most effective and economical market penetration

possible. The company formula starts with a staff of dedicated, quality people that work to maintain the high standard expected of them by clients. Just as critical is the emphasis on billboard location and traffic exposure. The company’s billboards are placed to deliver maximum visibility on critical arteries. Locations are developed with much forethought

regarding audience exposure and retention. Further, aesthetics and environmental factors are taken into strong consideration as they reflect upon the advertiser and Aznet

Media Plus.

• Savero have co-operated closely with Harringtons  of Nottingham for the past 8 years. Savero’s customers have often asked for assistance with pub design companies.

• Savero, as a consequence , selected Harringtons to assist in this turn key endeavour. To this end, several notable projects have been completed and continue to flourish. City Pride in Nicosia is the flagship outlet

•Harrington’sHigh Quality Contract Interiors•Bar-fitting & Design Company

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Harrington’s

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Export Sales "Worldwide reliability" A winner of the prestigious "Queens Award for Export Achievement" Harringtons provides a first class, world wide export service, to an increasingly cosmopolitan and sophisticated clientele. Their highly trained craftsmen travel the globe delivering levels of excellence through creative design, quality manufacture and skilled installation in any location. Building upon their international reputation has seen them expand their product offering to encompass any leisure related application, from the good old British Pub to Themed Restaurants and Hotels in over 30 countries.Restaurants Whatever the style, classical or themed, modern or traditional, Harringtons leads the way. The creative team can draw upon a wealth of experience, creating restaurant interiors around the world.

Themed bars If the taste is Hawaiian or Spanish, the theme Historical or Sporting, Harringtons can create the atmosphere required. Whatever the requirement from specialist joinery to bric a brac, Harringtons can the clientele into outstanding surroundings of pure pleasure and relaxation.Breathe new life into the interior and create the perfect pub atmosphere. London styles, Traditional Irish and Highland Scottish are among the most popular range. With its unmistakable display of Old World Charm, the classic Victorian pub has always been a winner. No one is better placed than Harringtons, to create a traditional interior that will stand out from the rest. With Harringtons the choice of traditional pubs is unlimited.

Logistics They have accumulated a fund of logistical knowledge over the moving of men and materials around the world. Each country is dealt with individually to ensure that the project is completed on time and complies with local authorities requirements.

Harrington’s… more info

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Brewservice

“The draught dispense specialists”

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Objective

• To offer complete dispense installations,

maintenance and sanification to the drinks

industry.

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BREWSERVICE

TRAINING INSTALLATIONEQUIPMENT

SALES & SUPPLYLINE CLEANING

MAINTENANCE

PERIODIC

EMERGENCY

EQUIPMENTRE-CONDITIONING

SERVICE

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Philosophy

• Very high quality, high visual impact

installations to assure dispensed products are

sold to the customers in perfect condition at

all times.

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Services

Draught beer respecting the brewers

specifications for gas and serving temperature

• Draught line

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Retail Plans

To offer for sale a complete range of technical

equipment, spare parts and accessories for the

drink dispensing industry.

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Training

To provide dispense training and basic technical

concepts to pub owners and bar staff, both locally &

internationally in co-operation with our principals

technical departments

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T-Bars: Brewservice has around 270 T-Bars from 2way to 7way with the capacity to pour around 1500 different lines with different keg (beers)

Ice Taps: Re focused and increased investment required for new T-Bars or other equipment (secondary coolers) with around 100 new outputs a year.

Brewservice is servicing more than 30.000 kegs a year with total assets of equipment for Brewservice of over €3.500.000.

Equipment

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ITEM

FR

IDG

ES

T-B

AR

S1 WAY 212 WAY 80 253 WAY 79 534 WAY 80 565 WAY 38 726 WAY 80 557 WAY 0 2510 WAY 66 0

2068 1268

MARKET & IN WAREHOUSE

EQUIPMENT ANALYSIS

Duty Free- British Military / UN Sales• Savero have been supplying the British Military since 1986, firstly through

NAAFI and now Sodexo. Savero Trading have an exclusive contract for imported beer with Sodexo who now manage all the former business. Sodexo have sub-contractors who run the off trade and wholesale divisions whilst Sodexo themselves run the on trade outlets and main messes.

• Savero are very proud to have been associated with supporting British and UN operations for such a long time. Savero activity includes On Trade promotions, Off Trade Promotions, Merchandising, Event Sponsorships and Brand launches.

• Savero turnover exceeds of €0.6 million pa with Sodexo operations.

Military Duty Free exclusive deal

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Section 1: Operating Division of Savero Trading Ltd

Section 2: Principal Partners with product details

Section 3: Ideas of Marketing / Promotions in the Military Bases Examples of1. Retail

2. Leisure / Catering & Outside Events3. Wholesale

Section 4: Stock Procedures 1. Forecasting2. Availability Reporting3. Ordering

Section 5: Products

1. Listed Items

Military Bases Deal

Military Duty Free exclusive deal

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Operating Division of Savero Trading Ltd

Military Duty Free exclusive deal

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Brand Marketing & Consumer Promotions

•Savero pride themselves on their brand building experience and knowledge across different channels to market.

•Savero understand and apply different mechanics for each channel of:

- wholesale

- retail

- leisure / catering & outdoor events

Military Duty Free exclusive deal

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Brand Marketing & Consumer Promotions

1. Wholesale – VIP operation

Savero focus on development of customer business through investments and brand exposure to consumer through equipment (fridge, umbrellas, furniture) and volume purchasing discounts to customers.

Direct relationships and direct deliveries on a weekly basis.

Military Duty Free exclusive deal

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Brand Marketing & Consumer Promotions2. Retail

In line with UK promotions fit into following categoriesMultibuy – Buy one get one free (BOGOF)

Since military very price oriented

- 3 F 2 etcGifting - Free Cooler Bag

- Free T-shirt , Glass etcDiscount or money off – Save 20% on full case etc

- Save £2.00 on 2x6packConsumer Prize draws

- Win Premier Football tickets (Budweiser) - Win Bundesliga Football tickets (Warsteiner) - Win Formula 1 tickets (Foster’s) etc

Link Save Promotions- Spend & Save- Spend & get something free

vi. Cross Selling joint promos - Buy a beer and get something else on a valued price.

Military Duty Free exclusive deal

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Brand Marketing & Consumer Promotions• 3. Leisure / Catering & Outdoor Events

• Focus fall into 4 key categories

i. Event and / or venue sponsorship / management

ii. Brand development and exposure - fridges, umbrellas and product features

iii. Consumer promotions – scratch and win

• i.e. T-Shirts, Footballs Tickets etc

• iv. Joint food promotions (combination of our brands and food products with fixed price)

Military Duty Free exclusive deal

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StockSavero Trading pride themselves on maintaining an availability level in

excess of 90% through

1. Stock Forecasting

This takes into account standard weekly demand (in local and military market) and uplifts expected through brand marketing & consumer promotions, together with orders placed against principle companies with E.T.A,’s

2. Availability Reporting

Savero Provide a weekly availability status report by SKU including E.T.A. of new supplies for products where stockholding is low.

3. Sales Reporting

To ensure continued improvement to forecasting and availability, Savero produce, monitor and provide details of purchases by outlet. This is compared against previous year and any fluctuations in demand investigated and corrected in timely fashion or discussed with customer.

In addition to the above, Savero Trading utilise a pre-sale Order Form completed at establishment level which as well as demand requirements reviews expiry dates and stock rotational issues to be addressed.

Military Duty Free exclusive deal

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Product ListedAt present Savero Trading have listed products under the following categories:

1.Beer / Cider / R.T.Ds

2.Draught Beers

3.Spirits

4.Italian Wines

5.Greek Wines

6.French Sparkling Wines

7.Soft Drinks & Other

8.Spirits

9.French Wines

Military Duty Free exclusive deal

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