1
2013-2014: neuro & Quik-e Foods
Meeting: 9-May-2013Tommy WhitakerVA Area Manager
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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)