Welcome to our City

Java City Overview

... when a trio of young entrepreneurs decided to open a coffeehouse and roast their own beans. They found an old brick building, bought a gleaming red roaster and began roasting the finest Arabica coffees in the world. Today, Java City is a $50 million company with 12 company owned retail locations, 600 licensed espresso bars across the world and over 1,700 wholesale accounts. We roast over 4 million pounds of coffee beans a year, serving over 200 million cups of coffee annually. Although we have come a long way, we are still the same company at heart. We roast the highest grade Arabica beans by hand, slowly and with great care. We call this our time-signature roasting process, and we believe it sets us apart from the rest.

JAVA CITY’S STORY BEGAN IN 1985 ...

It all starts with the coffee…

ROASTINGPROCESS 4 Pillars of

Excellence 100% Arabica Time Signature

roasting process Hand-roasted in

small batches Air-cooled; not

water-quenched

JAVA CITY

JAVA CITY RETAIL CAFES

Java City Owns and Operates 12 Retail Cafes

Brewed CoffeeEspressoPastriesDessertsSandwichesSoupsSalads

JAVA CITY RETAIL CAFES

Huntington Beach, CA Sacramento, CA

Java City Brew Coffee Selections* Light – Medium – Dark Roasts* Flavored coffee* Decaffeinated* Fair Trade coffee* Rainforest Alliance coffee

Brewed Coffee

• Extensive line of hot and cold espresso-based beverages

– Cappuccino– Latté– Mocha– White Mocha – Americano

Espresso

• Ice Blended beverages– Javalanche™– Mocha Javalanche™– Caramel Javalanche™

• Espresso-based specialty beverages– Caramel Macchiato– Almond Roca® Latté– Black and White on Ice

• Non-coffee based beverages – Italian Sodas– Chai Tea– Fresh Juices & Smoothies

Specialty Beverages

Tea

Bewley's - Specialty Tea’s Since 1840

Hot : High end design and taste

Iced : Popular Tropical and Black tea

Chai : Ease of use, speed of service

• Gourmet Pastries• Gourmet Sweets• Gourmet Sandwiches• Gourmet Salads

Coffeehouse Food

Merchandise Merchandising Solutions

– Enhance café ambience– Increase sales

• Impulse Sweets• Merchandise• Whole Beans

– Raise CHECK AVERAGE

Java City Packaging• Urban and clean design speaks to

•Quality of coffee•Fun factor 5: Bean City•Allows differentiation between regular / flavored / decaf

Retail Packaging

People & Environment

• Rainforest Alliance• Fair Trade• Organic• Shade Grown

People Who Care Consumer Brochure Eco-Grounds Consumer Brochure

People & Environment

Cause Related Coffees – Art for Kids’ Sake

JavagandaJavagandaDescription:

•Monthly Operations manual•Mailed directly to accounts•Accounts pay for it ($25/month)•Mandatory program (all or nothing)

Objectives:•Increase sales•Standardize experience through all channels for consumers•Increase compliance with programming•Offer new and viable programming •Educate accounts to ensure they are serving the best possible product

Javaganda POS Support

Featured JavalancheBanner & Stand

Featured JavalancheBanner / Counter Card

Featured EspressoBanner / Counter Card

Javaganda

Javaganda emailsDescription:

•Twice monthly reminders•First: Electronic Ordering•Second: Operations tips

Objectives:•Increase sales•Increase compliance with programming•Educate accounts to ensure they are serving the best possible product

Cool Products / Cool Looks

Cool Products / Cool Looks

Website Objectives:•Offer a great experience that will lead to brand loyalty•Communicate with consumers through a fun, urban and approachable voice•Increase loyalty and initiate new communications

Website

Website

Bean’s Eye View•Fun, educational, and interactive section of the site featuring

•The Wheel of Arabica (Coffee paired with food, music, & literature)•The Wild, Wild World of Shawn Hamilton•A review of the Processing, Roasting, and Brewing of fine coffee•Beaneology (Glossary of JC terms)

Supermarket site

Custom Solution

Freestanding Store

Café Build Out

Kiosk Solution

Off The Shelf Solution

Coffee Profits

• Average margin on a cup of Java City House Blend coffee: 77%

• Average margin on a Java City Mocha: 72%• Average margin on a Java City Iced, Flavored Latté: 83%• Average margin on a Java City Javalanche: 75%

(based upon typical retail pricing)

“On average, operators charge 40% more for premium coffee.”Food Service Director Magazine

“Java City’s really great at providing marketing support, including menu development and product innovation. They’re not just there during the proposal stage – they provide support and always look out for our best interests.Our relationship with Java City is a true partnership. We now have four full-service Java City cafes and the Java City brew program in all locations. All are performing better than projected and our clients are extremely satisfied. Hands down, Java City is a major player in the food service industry because of its commitment to quality, consistency and marketing support.”

Gary Crompton, Director of Business Development, Metro-New York Business Services, ARAMARK

Java City thrives at U-Illinois Food Service Director

JULY 15, 2003 -- Dining services at the University of Illinois-Chicagoincreased overall revenue by $13,000 per week when it opened a Java City coffee shop in the student union building earlier this year. "The big thing is the beverage menu," says Aramark spokeswoman Mary Winker. "We've have had great success with our menu mix," "We have been able to offer some upscale items we didn't have a need for elsewhere," says Winker

Java City perks up St. Joe's Food Service Director

APRIL 15, 2003 -- Coffee sales at 450-bed St. Joseph's Medical Center,Burbank, CA, have increased 40% since the installation of a Java Citybranded coffee kiosk. The concept replaced a former mobile coffee cart.Aramark general manager Mozella Pope attributes the sales increases to the wide variety of not only beverages but also grab-and-go foods nowavailable at the kiosk.

Java City Support

Java City - Sacramento 15 Field Training Personnel Development

•Site visit, recommendation, presentation

On-site Training Quality Assurance

• What beans should we use based on our demographics? How many choices should we offer?Light to Medium Roast – Female DemographicsFlavored coffee – Female DemographicsMedium to Dark roast – Male demographic

Java City licensed locations offer 5 coffees daily.Light – Medium - DarkDecafFlavored

• How can you help or assist us on creating a coffee culture?Guests come to Java City as a coffee destination seeking an experience. Our products, training, graphics and guest service are geared towards creating an experience and ambience. We are authentic. The guests need to buy-in to what you are doing

• How should we train / re-certify our employees on proper execution?Java City’s training program will certify all trainees. Our time tested one week program will assure that all trainees are certified to replicate the coffee experience.

We will want to create a train the trainer program. Bring chosen staff to Sacramento, CA for in-house training

• How will you support preventive maintenance / maintenance and machine calibrations on a regular basis?

• Regular PM’s on a pre set schedule• Quality Assessment visits• 24 hours access to service network

• What is the ideal time between roasting and consumption? Which form of distribution? (Distributor vs. store direct from roaster)After 3 days and before 30 days.Shelf life for our whole bean coffees in valve bags is 120 daysShelf life for our ground coffees in valve bags is 90 days

• What are the daily / weekly / monthly procedures our cafes need to execute on brewing / grinding equipment?

Daily : Clean brew baskets, sprayheads, airpots/shuttles, brewer, steam wands, portafilters, milk pitchers, thermometers, grinders.

Weekly: Shuttles, espresso machine, grouphead screens, portafilters,

espresso drain.

See published chart

• What are the biggest causes of inconsistency?– Incorrect portions– Dirty equipment– Stale coffee, pre-ground and stored in filters– Contamination of flavored and regular coffees– Incorrect espresso grind– Incorrectly steamed milk, too hot!– Not following daily standards

• How long should we hold coffee? (Heat vs. Thermal)

• Ideal is 30 minutes, within standard is 2 hours.• Thermal is always better than heat. Heat continues to

‘cook’ coffee and cause evaporation.

• Should we grind in house vs. pre-ground / pre-packed?

Whole Bean + -Fresher coffee Consistency batch to batchIn store aroma Minimal wasteAuthentic Coffee house Some Clean-up Portion Pack+ -Consistent grinds Not as authentic Consistent freshness Not as fresh in perceptionNo waste

•What are your quality control systems for roasting / packaging plants?

•Coffee beans must meet agreed upon quality standards for Specialty Coffee•Each bag of beans is charted and counted.•Each roast cycle is recorded and tracked in log.•Each roast batch is measured on Agtron to hit standard.•Batches are ‘cupped’ for taste standards.•Packaging

All coffees are logged from packaging machine.Random samples are taking for oxygen content. (Oxygen headspace analyzer – less than 2% oxygen)

•Water testValue and seat integrity

•Tasting Daily tasting of roast batches and inventory.

Java City Advantages…

With Java City…you keep your profits

•No license fee•No percentage of sales royalty fee•More flexibility with menu offering•Lower cost alternative

Solutions $$$Java City has multiple solutions to meet all your coffee needs

•Drinks

•Store systems

•Merchandise

•Complementary food

•Marketing

Great Coffee Inside