Hot Beverage Strategy Explained Internal Use Only

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1 Hot Beverage Strategy Explained Internal Use Only

2 Strategy

3 Why we need to change

4 The market has changed Consumers spend over $9 Billion on coffee in the workplace. Consumers are becoming more educated about coffee and blends. How and where the coffee was produced is important to consumers. Consumers looking for branding but at the same time value is a key component.

5 Sodexo s Objectives: To respond to the market trends in Coffee and Tea. To deliver first Global Category Management Project To increase Hot Beverage sales by 5% To deliver for Sodexo, Clients and Consumers:» Right Product» Right Price» Right Place

6 Coming to grips with the Strategy..

7 How? 3 Key Drivers

8 RIGHT PRODUCT

9 The Old Hot Beverage Offer Cup Experience We reviewed our coffee portfolio and recognized that Gourmet Bean no longer meets the needs of our market place. C Premium Manufacturer brand Destination A Unbranded Commodity B Established Manufacturer brand Internal research demonstrated we are Decentralized in our coffee portfolio Priced significantly below market value Widely varied in pricing In need of an ethical and sustainable hot beverage offering. Free Coffee/Tea Branded in-cup solutions Coffee Shop/ Tea Cafe

10 Right Product We have a range of products for all requirements You value You experience Experience We serve We deliver We select Free Coffee/Tea Branded in-cup solutions Coffee Shop/ Tea Cafe

11 Right Products Licensed destination brands. Requires payment of license and strict compliance. Added sophistication of delivery Sodexo s own ethical hot beverage solution with outstanding quality coffee and tea with environmental components. High quality branding offering exceptional coffee and speciality teas. Regular everyday branded identity with supporting marketing materials. Hot Beverages program with Value as the priority. Solutions will tend not to be branded

12 RIGHT PRICE

13 Right Price - Process Utilized Sodexo Group Value Pricing process and tools Surveys, Competition Analysis and Focus Groups. Each supplier has provided detailed consumer insight and pricing. Creation of Price Points for all supplier s coffee and tea solutions. Process heavily based on consumer research & insight: Online Survey Competition Analysis Focus Groups Base, Better and Preferred Bands

14 Value Pricing Comparison Preferred Preferred Preferred Preferred Better Better Better Preferred Better Base Base Base Base Better Preferred Base Preferred Better Preferred Better Better Preferred Base Base Better Base Base D C Royal Cup Maxell House Café Collection Douwe Egberts Dunkin Donuts Green Mountain Starbucks WPB Peets' Jazzman's Starbucks B A

15 Right Place We have hot beverage strategy solutions Available for all types of locations

16 How to decide what s right? Sodexo has developed an online decision making tool which will provide the solutions right for your consumers.

17 Completed Process D e c i s i o n Example T o o l

18 Refresh & Relaunch Even if the tool advises you that your site has the correct hot beverages solution you will still receive a brand refresh of the offer

19

20 aspretto At the heart of aspretto is the very desire to serve great quality coffee and excellent tea to our consumers daily.

21 Our coffee Great coffee needs a great bean, and our beans are among the best you can buy. aspretto is sourced not only focusing on the best quality coffee but also on clear ethical accreditations. 100% first crop arabica over 50% washed arabica over 50% high grown 100% Fair Trade Certified by TransFair USA

22 Our coffee blends Light Roast - beans come from Ethiopia, Peru and Mexico to create a light all day blend, which is great to drink without cream or half & half. Dark Roast - For people who like their coffee with plenty of body and full of boldness and aroma, yet not bitter. Our Dark Roast beans originate from Nicaragua, Honduras and Brazil. Hazelnut & French Vanilla blends are from Nicaragua and Mexico, lightly flavored, giving a natural, smooth and sweet character. Decaf - Although our Decaf has around 98% of the caffeine removed we have not compromised on taste and aroma. A great bean which originates from Nicaragua makes this a real winner.

23 Our teas A lot of companies who offer good coffee seem to forget about their tea. Not so at aspretto! All our teas are certified organic by Quality Assurance International and USDA organic and are Halal, Kosher and Pareve. 80% are also Fair Trade Certified by TransFair USA. Each tea is carefully sourced to guarantee the same high standards as our coffee. Customers can enjoy premium quality teas and in doing so know that they are supporting an ethically sound brand.

24 Tea packaging All of our tea packaging is recyclable and made from 100% recycled material Specially selected range of teas for all tastes and times of the day

25 aspretto values What makes us different and what makes us special is that we support our objective with four founding principles: Diversity Environment Health & Well being Social Responsibility These are the yardsticks against which we measure everything we buy, everything we sell and everything we do...

26 aspretto materials Made from 100% Recycled Aluminum All POS printed on 100% Recycled paper All Shuttles and Airpot wraps printed on 100% Post Consumer Fiber Resin An industry First. Disposable cups contain 90% renewable resources and 10% Post Consumer Fiber Condiment unit made from 100% recycled material

27 aspretto materials Tea racks are made from bamboo wood. Airpot rack made from recycled aluminum. Cup Sleeves are made from 100% Post Consumer Fiber Sugar used is natural and FairTrade Certified. Wooden stirrers are from beech and managed farms All our print POS uses vegetable based inks Kraft napkins have not been bleached and 100% recycled material The metal from the machines can and will be recycled at end of their life.

28 social responsibility All our coffee is 100% Fair Trade Certified by FairTrade USA supporting the communities and the growers. We are following the stories of how the fair trade dollars are spent. At aspretto we also strive to make a difference in our local communities by supporting the STOP Hunger program. For every pound of coffee and tea sold a financial contribution, 10 cents and 5 cents respectively, will be donated to the Sodexo Foundation, a non-profit organization that gives 100% of the donation, helping some of the 36 million people at risk of hunger in the United States. Trust us it will make your drink taste better than ever!

29 projects supported Blend Name Origins Environment Project Social Aspretto Light Note Aspretto Dark / Espresso Roast Aspretto Decaf Aspretto Vanilla Roast Aspretto Hazelnut Roast Mexico, Peru, Ethiopia Nicaragua, Honduras, Brazil Nicaragua Mexico, Nicaragua Mexico, Nicaragua Programs to protect endangered plant species. Garden projects in different communities to increase awareness the environment and conscious consumption. Training on sustainable agricultural practices for members. Training on sustainable agricultural practices for members and reforestation programs. Supporting organic conversion programs for members through credit and training. Funding schools to provide training for its members in areas such as administration and finance. Programs for improving the quality of coffee, local quality competitions and training. Road construction; built and repaired roads which have facilitated travel to/from outside areas. Construction of warehouses to store coffee from members in a single place and improve quality control. Credit program: Short and medium term loans available to members. Members use it to improve housing, investments in their farms, etc. Assistance to women on farming, handicrafts and animal husbandry. Project initiative for some communities addressing domestic violence and the abuse of women. Investments on education of members and their children, school materials, and scholarships for good students. Training for women and implementation of women's empowerment programs. Building new schools in communities, providing supplies and food for students.

30 Brand M3 aspretto

31 Aspretto Offers Meeting Room Solutions In line Self-Serve Espresso Cappuccino Small, Medium & Large Counter Top Solutions

32

33

34 Next Up for Aspretto Iced Tea and Coffee Option Additional LTO Flavor Coffees Potential Retail Package Option Aspretto Announcements BiMonthly Refresh every 2 years with POS updates. going forward by giving back

35 Going forward by giving back..

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