Follow-up of meeting July 21st, 2016

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Follow-up of meeting July 21st, 2016

Wollenhaupt Enjoy with confidence

Content Corrective actions taken by Wollenhaupt Current supply chain model New supply chain model option Why Wollenhaupt? Our USPs. A glance on successful trends in Premium Leaf Teas

Corrective actions taken by Wollenhaupt 1) Introduction of continuous system of improvement (IT-based) 2) Upgraded Outgoing Sensory Control (by educated and calibrated staff panel) 3) Introduction of FSSC certification system (change from IFS to FSSC as a more product-focussed system) 4) Install next generation blending equipment (includes automatic cleaning programs when product changes) 5) Upgraded Laser-sorter system ref. to foreign objects (use finer matrix of detection)

Corrective actions taken by Wollenhaupt 6) Upgrade flavor stability (by using new solid flavor coating technology) 7) Fine-tune purity of tea blends in the production processes (by adjusting the row of order for the tea blends to be produced) 8) Upgrade product safety in the production processes (by installing additional metal detectors at the papersacks filling station) Lessons from the past learned Guarantee highest standards

Current Supply Chain Model Co-Packer Associated Brands Tea-Supplier 1 Tea-Supplier 2 Tea-Supplier 3 Co-Packer Siti Tea-Supplier 4

Evaluation of current supply chain model High level of complexity by multiple triangular relations High level of traffic in communication and coordination necessary All partners must be very reliable in this set-up High risk of intransparencies High risk of low performance in reliability of supply chain

One Stop Shopping with Wollenhaupt Co-Packer Associated Brands Sachet for Retail Optional: Wollenhaupt can manage packing with AB directly. Wollenhaupt Co-Packer Sachet bags for Foodservice

Evaluation of new supply chain model Simplicity & Transparency Very reduced level of traffic in communication and coordination necessary by Mighty Leaf Tea Few but reliable partners care for performance High likeliness of reliable supply chain performance

Proposal for a partnership model Start into a One Stop Shopping option for blends and original line teas with Wollenhaupt : -> Use successful axis Wollenhaupt/Associated Brands -> Use Wollenhaupt and co-packing partner to build up capacity in production of artisan teabags; start with Chamomile Citrus -> Use Wollenhaupt`s Tea Trading Department for original line teas

Why Wollenhaupt?

Tea specialist: Managing the complexity Co-Packer Associated Brands Quality Assurance Your brand protection risk assessment of 1000 ingredients managing country legislations proactive monitoring of new risks Cleaning high purity level windsifting laser-sorting magnet technology Pre-processing cutting to required size sieving steam-treatment disinfestation Blending & repacking 3 different blending technologies various flavor technologies tailor-made process per tea homogeneity & consistency Services reliable delivery performance flexibility on delivery forecasting process pre-financing & storage quick response time Innovation trend analysis new ingredients tea design with tea tasters tailor-made authentic flavors new success concepts Reliability family-run in 4th generation expertise since 134 years financial independence sustainability long-term relationships

View on the Tea Market

Trend: Success Trends for premium leaf teas Chunky Wellness / Functional Organic Sustainability Cross-Over of tea categories without flavourings naturally or innovatively flavoured Sweet enjoyment Convenience

Trend: Success Superfood Functional YOLO You only live once! Indulgent Sub-Trends Matcha Special Events Chocolate A Gusto Romance Romance

Enjoy with confidence Vertrauen in Genuss