Sunoco A Plus – Summit Meeting

10/3/2012

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Functional Category & Product

Consumer Insights & Marketing

Customers

Agenda

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Functional Category & Product

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NEURO’S PHILOSOPHY: WHAT WE STAND FOR

Premium Functional Ingredients

Our researchers and scientists continue to study to ensure each Neuro has the optimal levels and mix of ingredients to deliver the functional promise on the bottle.

The key ingredient and dosage levels are backed by published, third-party research proving the benefits delivered at the levels contained in each Neuro.

We are uncompromising in our development and have not cost-contained or reduced the ingredient levels in any way.

Everything from our ingredient sourcing to our ambient fill process is designed to deliver optimal benefit in each Neuro

Neuro delivers true function-ingredient quality and dosage levels high enough to work--setting it apart from other offerings

Neuro is designed with real ingredients at real levels to deliver real results for whatever our consumers passions and needs might be at any time of day...

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NEURO: TRUE FUNCTIONThe 24/7 Solution to Live out Loud

Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.

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Source: MarketResearch.com “Growth Opportunities in Soft Drinks.” December, 2011

2010 2012 20150

1

2

3

4

5

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FUNCTIONAL BEVERAGES

BOTTLED WATER

CONCENTRATE JUICES

ENERGY/ISOTONIC

CATEGORY

PERC

ENT

GRO

WTH

Categories

Functional Beverages InsightsFunctional Beverages are projected as the fastest growing category for the next 3 years

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Regional Pride/Nationalism

Prepared Food

Shopping Experience

Freshness

Choice/Selection

More out-of home consumption

Premiumizations

Conveneince

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14

20

21

23

36

48

66

Source: Deloitte Food and Beverage 2012 Report

Where to Focus: Key Trends Shaping the Industry

Convenience, Premiumizations, Out-of-Home consumption, and Choice are the 4 top trends driving consumer behavior

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Value Consumer = Price Evolving toward Value Consumer = Benefits/Price

Dollar Sales +4%Unit Sales -4%

Avg Price 18% higher Dollar Sales +8%Unit Sales +5%

Mainstream Coffee

Premium Coffee Pod Coffee

Avg Price 40% higher Dollar Sales +115%Unit Sales +99%

Source: Nielsen Scantrack, Total U.S. 2012 U.S. Retail Trends

The New Value Trend: Shift from Price to Benefit

Consumers are beginning to view value differently. Value is no longer about a low price, but increasingly about benefit, in short: Does the product deliver?

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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

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1. Provides a true benefit

2. Low Calorie

3. Healthy

Evolution of the Functional Category

PROVIDES A BENEFIT

HEALTHY

LOW CALORIE

The Functional Category contains three essential elements:

Neuro is leading the formation of the true Functional Beverage Category as the only system of beverages with national distribution that delivers all there elements.

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Neuro: Product Positioning & Usage Occasions

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neuro BRAND: The spark that ignites your life. Light it up.: The spark than ignites your life

neuro PASSION: Increase your drive to pursue what you loveCaffeine combined with L-citrulline

neuro SONIC: Increase alertness so you can focusCaffeine fused with L-Theanine

neuro SLEEP: Sleep well so you can rechargeMelatonin mixed with magnesium

neuro SUN: Feel better so you can shinehealthy dose of Vitamin D

neuro BLISS: Reduce stress to keep you calmChamomile blended with L-Theanine

neuro TRIM: Control your appetite so you eat less A satisfying portion of fiber

Neuro: The Benefit With the Science

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• Reformulated Hunger Management Tool

• Same great fiber, now even more effective

• Fiber dosage increased to 1 gram (4% of Daily Value)

• More textured liquid allows formula to begin working immediately

• Enhanced taste profile

Neuro TRIM 2.0

Control your appetite and eat less. A satisfying portion of fiber

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Consumer Insights & Marketing

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Overall-All SKU brand loyaltyAmong regular users, Neuro’s brand loyalty is competitive with much older, more established brands

Vitamin Water

Sobe Life Water

Neuro Function Skinny Water

Activate Balance Karma0%

10%

20%

30%

40%

50%

60%

70%

80%

Brand Loyalty Index-All SKUs

Net Promoter Score; Q1 2012

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2012 National Media Campaign

$3.5M integrated, multi-platform plan1.5B impressions

• National Digital, Mobile, Print, Social and PR outlets

• Regional OOH Billboard/Transit and Radio• Focus: Neuro Brand, Neuro Sonic, Neuro Bliss

Target Consumer

• Primary Age: 18-34y• Secondary: 15-18y and 34-49y• 50/50 Male/Female• Middle income and up• Health Conscious

To increase Neuro’s awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31st, 2012

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2012 National Media Campaign

Integrated National Campaign with a continuous focus on digital to target consumers

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Digital Media-Full Screen Ad With Video

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Digital Ad Partnerships

In Style Skin

Rolling Stone Progressive Flash

Pandora Branded Stations

Partnerships with established digital platforms allow for high, credible impressions rates

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Screen to Store: Product Ad With Store Locator

Consumer Experience ProgressionProduct Media Product Locator

Interactive Digital Ads that drive consumers directly to the point of purchase

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National Print Ads-Neuro Sonic & Neuro Bliss

Print ads to targeted demographics reaching over 60 million of readers. Publications specifically selected for demographic and high rate of beverage purchases from ads

In-Style Magazine July/August/September. Alternating Bliss and Sonic Ads

Rolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads

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Point of Sale

Available profit drivers:

• Racks• Price Labels• Generic Static• Poster• Shelf Strip• Pallet Wrap• Push/Pull• Pallet Header• Pole Display• Glide Rail Stickers

POS Placement increases the profit story for every retailer:

• Ties the retailer into into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers

Max number of smart placements = Max retailer profit

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Customers

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The Profit Story

• Neuro is positioned to capture the strongest, fastest growing consumer trends• Neuro’s premium retail position delivers a significantly higher profit per

transaction• Neuro drives incremental category sales with a typical retail $1.00 higher than

similar offerings• Neuro drives multiple transactions increasing rings and driving category sales.• A typical single bottle Neuro transaction will deliver the same profit as selling 4

to 5 bottles of another enhanced unit

*If this enhanced water turns this

rack, it is 96 units @ approx $0.17/unit

Profit= $16.32

*When NEURO turns this rack, it

is 75 units @ approx $0.90/unit

Profit=$67.50

Neuro is leading the way in driving profit in the enhanced/functional spaces

Example Profit Study

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Sonic28%

Sleep20%

Bliss27%

Sun11%

Trim14%

Account S & Neuro scan sales; Q4/2011-mid May 2012

Neuro renews the category profit in a national convenience chain

Sales Share of Brand

Direct quote from a national c-store chain category manager: “Neuro was the second best performing new brand (via sales $$’s) to launch via our innovation section of new entries in our company history.”

C-Store Sales Account “S” Data

• In the first 7 months in distribution this chain sold 670,150 units in 210 days

• 3,191/Ave of 900 stores =3.55/5

• 0.71 units per store per day per SKU

• $1,693,828 ($’s)/670,150 (Units) = $2.53

• On average Neuro generates $1.00 more per transaction then your typical single serve n/a beverage

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• 3 SKUs all compete for top volume, with 2 more gaining share

• Passion has been rapidly gaining share since being introduced in Q2 2012

• Trim has been reformulated-new flavor, faster function

Neuro By SKU Nationally

Passion12%

Sonic25%

Sleep20%

Sun8%

Bliss25%

Trim10%

Neuro By SKU Current

Source: Neuro Depletions YTD 7.2012

All six Neuro SKUs sell well, with 3 different ones competing to lead the business

Sunoco A Plus – Summit Meeting

10/3/2012