1

2013-2014: neuro & Quik-e Foods

Meeting: 9-May-2013Tommy WhitakerVA Area Manager

2

Functionality & Consumer Usage Occasions

New Product Innovation

4

We have partnered with Grocery and Drug Chains including Supervalu, A&P and Ahold

175 coolers March 2012

Current Grocery and Drug Partners

5

Over last two years, neuro has partnered with many C-Store Retailers across the country

Current National C-Store Partners

6

1970s

1980s

1990s

2000s

2010s

Refreshment

Low Calorie

Benefit Healthy Functional

Evolution of the Functional Category

THE OLD CONSUMER(static or shrinking numbers)

THE NEW CONSUMER(high growth demographic)

• Seeks refreshment• Seeks flavor over function• Doesn’t think about negative health

affects• Seeks the lowest price possible

• Demands noticeable functional benefit• Demands Low Calorie• Demands positive, AND no negative health

affects• Seeks Premium products• Willing to pay more for products that meet

these criteria

The consumer-driven evolution of what a beverage should deliver

01/2

2/11

02/1

9/11

03/1

9/11

04/1

6/11

05/1

4/11

06/1

1/11

07/0

9/11

08/0

6/11

09/0

3/11

10/0

1/11

10/2

9/11

11/2

6/11

12/2

4/11

01/2

1/12

02/1

8/12

03/1

7/12

04/1

4/12

05/1

2/12

06/0

9/12

07/0

7/12

08/0

4/12

09/0

1/12

09/2

9/12

10/2

7/12

11/2

4/12

12/2

2/12

0

10

20

30

40

50

60

FoodConvenienceDrug

116%

51%

136%

neuro Distribution gained double digit points of ACV in 2012

Channel Max ACV Dec-11 Max ACV Dec-12 Change % Change

Food 35 53 18 51%

Drug 11 26 15 136%

Convenience 19 41 22 116%

7Source: AC Nielsen

Dis

trib

ution

2011 2012

7

Neuro ACV by Channel

Among the major brands in the functional category, neuro is the biggest contributor to the overall sales growth.

8

2011 Sales

Sobe Glaceau Vw

Sobe Lw Others Zico Marley'S Vita Coco Neuro 2012 Sales

606

635

$17

$11

$9$1 $2

$15

$20

$28

*

5%

Convenience Channel

Source: AC Nielsen

* MM $ Sales** % Contribution of Growth

-3%-2%

-2%0.1% 0.4%

2%

3%

5%

8

Total Category Contribution to $ Growth – Conv

8

**

2011-2012 ACV

9

WE

22-Ja

n-11

WE

19-F

eb-1

1

WE

19-M

ar-1

1

WE

16-A

pr-1

1

WE

14-M

ay-1

1

WE

11-Ju

n-11

WE

09-Ju

l-11

WE

06-A

ug-1

1

WE

03-S

ep-1

1

WE

01-O

ct-1

1

WE

29-O

ct-1

1

WE

26-N

ov-1

1

WE

24-D

ec-1

1

WE

21-Ja

n-12

WE

18-F

eb-1

2

WE

17-M

ar-1

2

WE

14-A

pr-1

2

WE

12-M

ay-1

2

WE

09-Ju

n-12

WE

07-Ju

l-12

WE

04-A

ug-1

2

WE

01-S

ep-1

2

WE

29-S

ep-1

2

WE

27-O

ct-1

2

WE

24-N

ov-1

2

WE

22-D

ec-1

2

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Bliss Sonic Sleep Passion Trim Sun

2011 2012

ACV

Convenience Channel

Dec 2011 Dec 2012 Point ChangeBliss 18% 40% 22Sonic 19% 35% 16Sleep 14% 27% 13

Passion 10% 24% 14Trim 13% 14% 1Sun 12% 14% 2

Source: AC Nielsen

Double digit ACV gain in Top 4 Sellers9

Neuro ACV – Convenience

9

GLA

CEAU

VITA

CO

CO BAI

ZICO

PRO

PEL

O.N

.E.

SOBE

NEU

RO

FUZE

KARM

A

MAR

LEY

BOD

Y AR

MO

R

NAW

GAN

DRE

AM W

ATER

ACTI

VATE FR

S

GN

C

172

118103 101 100 99

8570 66

58 51 46 44 41 35 2811

Vel. Growth Vs

Prior-7% -7% 690% -13% -2% 27% -9% -27% -25% 5% -23% -43% 0% -10% -11% 11% 0%

Sales (Mn $) 284 40 1 20 104 18 94 16 50 1 4 1 0 1 2 6 0

Sales Change -8% 54% 1540% 24% -3% 80% -9% 51% -24% 980% 171% 1345% 500% 856% 10% -33% 0%

ACV SUM 1651 338 9 199 1034 181 1103 223 751 12 78 27 5 15 58 231 3

SKU Velocity:Brand sales / SUM ACV ($000)

Glaceau has the maximum SKU velocity as well

1. Sum of average ACV for all brand SKUs

SKU velocity for Neuro is closer to SOBE & FUZE

Source: AC Nielsen 10

Food ChannelLatest 52 weeks

SKU Velocity

10Competitive Velocity by SKU - Food

10

11

Standards:• All six SKUs available and in distribution• Set Neuro to established flow• Allow for POS on ALL points of availability• Set retails less than equal to $2.59 (edlp) & less than equal to 2/$4.00 (promo)

Neuro 2013 Merchandising AgreementAccount& Address-_________________________________________ Account Contact-_________________________________

Neuro Contact-_____________________________________ Account Phone-___________________________________

Frequency:• Implement Neuro’s 12 month calendar: 8 months-edlp & 4 months- promo feature • Promo months of Mar, May, Aug, Oct

Conquer Cold: Multiple points of availability• Capture the counter, open air cooler, barrels. Secondary Cold distribution.

*Neuro and distributor agrees to provide feature discounts, merchandising & marketing support.

_________________________________________________________________________________________________________Account Signature/Title Neuro Signature/Title Date

• Eye & Arm position, no top shelf or bottom three shelves in cold vault door with a minimum of six facings

(set 6 for success)

Penetrate the Perimeter:• Rack Attack (min 6 case pack-out)

Funding and Promotions:• Neuro will pay $50 for ½ glide (5 facings) or $100 for full glide (9 facings)