COOPERATION HANNES REEH & SPAR

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1 COOPERATION HANNES REEH & SPAR A S U C C E S S S T O R Y

2 ABOUT SPAR AUSTRIA AUSTRIAN FAMILY- OWNED BUSINESS HEADQUARTERED IN SALZBURG, AUSTRIA,FOUNDED 1954 GROUP SALES 216: BILLION EURO CORE BUSINESS: FOOD RETAIL 75, EMPLOYEES A EUROPEAN COMPANY: ACTIVE IN AUSTRIA, HUNGARY, SLOVENIA, CROATIA & ITALY LARGEST DOMESTIC PRIVATE EMPLOYER WITH >41. EMPLOYEES IN AUSTRIA 2

3 STRATEGIC APPROACH OUR LOCAL INITIATIVE AND COOPERATIONS WITH THE AGRICULTURAL SECTOR Cooperation with 7, organic farmers Over 6 Interspar-hypermarkets have additionally more than 6,4 articles from local farmers and SMEs in the assortment. SPAR invests in extra personnel in purchasing, sales and marketing as well as logistics There are special heads vor locality for the hypermarket division who are in charge for the management of the local assortment. 3

4 SPAR LOCAL INITIATIVE EXAMPLE WINE Support of local small Austrian winemakers 1 Austrian wine producers deliver to all 1,157 SPARstores 12 small local wine producers/farmers delivering directly to 1-2 SPAR-stores 4 Wine Guide Weinwelt featuring 97 Austrian producers and 6 wines Marketing and promotion of wine producers in the monthly mailing to millions of Austrian households and in the SPAR customer magazine Mahlzeit Local winemakers gain national coverage and a scope they would never have the marketing budget to do so on their own

5 ABOUT HANNES REEH WINERY Family-owned winery in Andau/Burgenland, wine-growing region Neusiedlersee (Eastern region of Austria) since 4 generations 8% red wines: Most important type is Zweigelt (6%), followed by Merlot, St. Laurent & Cabernet Sauvignon 2% white wines (Chardonnay, Sauvignon Blanc,White Burgundy) 5

6 THE COOPERATION HANNES REEH & SPAR Started in 211 Hannes-Reeh-Wines in the assortment of SPAR today: - 5 wines in all store formats - additionally 5 wines in large outlets (hypermarkets) - 16 wines Online Andauer Zweigelt is the first joint product developed by Hannes Reeh & Anne Thysell (SPAR) SPAR named the criteria and the wished taste - Hannes Reeh developed the wine product This wine is only available in SPAR markets (no restaurants or other channels) Today this wine is the TOP bestselling product in the entire wine assortment of SPAR Austria.

7 THE COOPERATION RESULTS & BENEFITS 1.. Development of bottle sales of Hannes Reeh wines overall and for SPAR Growth of vineyard number of employees Growth of vineyard cultivation area in hectares

8 THE COOPERATION RESULTS & BENEFITS Number of winegrowers Hannes Reeh cooperates with Price per kg grapes local winegrowers achieve (in Euro) 1 1, , Hannes Reeh purchases grapes from 4 local winegrowers to be able to produce the amount of wine needed for the SPAR-cooperation. Andau is a structurally weak region in Austria and traditionally the winegrowers struggled with low prices for their wine. Due to the successful cooperation with SPAR, winegrowers are able to achieve a threefold higher price for higher quality grapes.

9 THE COOPERATION BENEFITS WHAT HANNES REEH PROVIDES SPAR WITH High quality wines Local production Well-known-Brand Reliable business partner, who is able to deliver the quantities and the quality a large scale retailer like SPAR needs WHAT SPAR PROVIDES HANNES REEH WITH Nation-wide distribution network with 1,157 outlets in Austria Marketing platforms with no costs to bear Know-How transfer in terms of scaling up Processes in production expansion Security: the purchasing volume is agreed on ca. one year ahead between SPAR & Reeh Logistics & Handling There are 2-3 coordination meetings with SPAR & Hannes Reeh per year in order to adapt to market developments and coordinate marketing activities.

10

11 CONTACT Hannes Reeh Augasse 11a 7163, Andau Burgenland AUSTRIA T E wein@hannesreeh.at W Sabine Schnabel, Albertgasse 35/1 18 Vienna AUSTRIA T E sabine.schnabel@bsh-advisors.com W

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