FARE Trade Show Presentation

New Sales…with a “healthy” twist!

Presented by:Scott W. Ball

Channel Dev. Manager-Alacer Corp.

Outline

• CSD Category Review• Overview of Alacer / Emergen-C• Why the interest in healthy lifestyle• Bag-In-The-Box overview• Why not private label (Circle K)?• Brand support• BIB support and promotion• Q&A • This will be fast

Liquid Refreshment Growth Overview

– Carbonated Soft Drink volume down 2.7% in 2007– Flavored and Enhanced Water category experienced 30%

growth from 2006 to 2007, and 12% growth in 2008

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

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Source: Beverage Marketing Corporation 2007 Overview

2007 Liquid Refreshment Growth by Category

What is Emergen-C?• 30 count box• $100 million company• 35 year history• Effervescent, flavored vitamin C drink mix• Best selling vitamin C brand in the United

States• The fastest growing dietary supplement

brand in Food, Drug, Mass• Annual growth of 20%+ growth for more

than 3 straight years

5

Emergen-C delivers 3-Peat as Growth Leader

• Emergen-C up over 30% for the past 3 years.

2%7%

13%

77%

48%

31%

-11% -8%

1%0%8% 11%

19%

-8%-3%

-20%-10%

0%10%

20%30%

40%50%

60%70%

80%

2006 2007 2008

VIT C EMERGEN C PRIVATE LABEL NATURE MADE NATURES BOUNTY

Source: IRI year end results, 2008.

US-FDMx - % Change vs YAG

6

Core Target:- Demographic:

• Adults 18-49

• Core: 25-34

Psychographic: - These young adults live life on the go. They’re

active and it exercise in between work, friends, family, fun and just, life. They have a passion for health and prefer natural products and solutions. They’re disciplined enough to make healthy choices and take the best care they can of themselves, but not too disciplined to have a good time.

Consumer Insight:I think it's cool to be healthy, and I try to stay that way. Work, stress, partying and cold and flu season can be challenges. But they don't have to get to me. With the right help, I can keep up my health and energy levels.

7

Brand Promise- Single-Minded Consumer Benefit:

- Emergen-C is the fast, fun way to boost your health and energy.

Reasons to Believe:- Unique formula with 1,000 milligrams of Vitamin C

- 24 Nutrients with Antioxidants

- Electrolytes

- 7 B Vitamins

Brand Essence- Emergen-C is the strong, cool friend who helps you stay healthy,

and have fun doing it.

Emergen-C C-Store Line

Up

12ct Clip Strips(cooler door suction cup inc.)

11

Introducing New Emergen-C® Shots & Companion Powders

Product:

Description:

All Shots are non-carbonated

Package Configurations:

Emergen-C® promise including, 1,000 mg vitamin C, B vitamins, electrolytes and antioxidants.

Emergen-C® ingredients plus an extra strength immune boost* from a proprietary immunity blend.

Emergen-C® ingredients plus energy from Green Tea extract and mental focus from a proprietary blend to support mental clarity and concentration.*

•2 pack shot•6 pack shot convertible to singles

•2 pack shot•6 pack shot convertible to singles•10 count powder

•2 pack shot•6 pack shot convertible to singles•10 count powder

*These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.

TM

TM

TM

TM

BIB Flavor Line Up

Green Tea

Sport

Ignite

HEW

Why not Private Label?

• Circle K Arizona has 33 Manitowac machines and were dispensing private label Nutrient drinks.

• Sales were barely registering, maybe a cup a day.

• We converted in Feb of 2009 with new branding and store promotion.

• Cup sales have averaged 13 cups per day now.

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Consumer Support• Emergen-C®’s FY09 plan expected to

deliver nearly 4 billion targeted impressions and reaches 95% of the target audience an average of 32 times– Nearly 900 million of these impressions will

support the Emergen-C® shots launch

MARKETING OVERVIEW 2009-2010 AUG SEP DEC FEB JUN JULBASE National TV :10 & :15BASE National Radio :30BASE National PrintBASE Online SHOTS National TV :10 & :15

JAN MAR APR MAYNOV OCT

Emergen-C Fountain Drink Radio SupportEmergen-C Fountain Drink Radio Support

Awareness and Trial will be driven substantial local radio advertising support

Over 300 spots per market 6 weeks of on-air support ____ of impressions in the ____ market Targeting young adults (A18-49) looking to make a healthier

refreshment choice and seeking an immune and energy boost. • 50% of the weight will run in the AM/PM drive times, Radio’s Prime

Time!!!• Breakthrough creative typical of Emergen-C’s radio commercials to

date • The commercials will have a strong call-to-action and clear store

tagging

Q & A

• Where do you buy it?• What is the cost per ounce?• How do I get it on my fountain equipment with

Coke and Pepsi dominating or controlling my contract.

• Have you all looked at other products to feature Emergen-C in as a supplement.– Fountain Shots– Pump Shots– Granita– Cappuccino

• Are their other equipment solutions?

Bunn JDF-4 Concentrate machine

Initial concepts for visual reference only

• Equipment has been used by Juice and Tea companies for 10+ years.

• Self contained BIBS, no back room area needed.

• Adjustable throw ratios• Refrigerated cabinet and

Ice Bank.• 18” width foot print.• Customizable graphics.

Manitowac 8 Flavor Tower

Initial concepts for visual reference only

• 16 Drinks from one dispense point.

• Great visuals.• Needs area in back room

to hold 16 BIB rack.• 2’ wide foot print.

Tea Tower

• 2 Flavor Tower• Small foot print• Capability to brand

separately

Come See Us Next Door

Booth 337