What is the future for loose R&G coffee and how will R&G coffee be positioned against new value added products (pods, pads, caps) - Geneva 2007

What is the future for loose R & G coffee

How will R&G Coffee be positioned against new value-added products

(pods, pads, caps)

Speakers: Roberto Pregel SEI Marketing Manager

Giandomenico De Franco Databank Senior Consultant

Tea & Coffee World Cup Geneva 04 june 2007 [email_address]

Coffee world production 2005 Green Coffee 7,080,000 tons Roasted Coffee 5,664,000 tons. -20% (weight loss)

Coffee world production 2005 Roasted coffee 5,664,000 tons. Roasted coffee for soluble 1,500,000 tons. Soluble coffee 450,000 tons. -70% (weight loss) Loose R&G for fresh brew 4,164,000 tons. 26.5 % 73.5 %

Coffee world production trend 2005/2004 (%) tons.

R&G for Fresh brew 2005 R&G for Fresh Brew 4,164,000 tons. Loose R&G Pre - Portioned 4,057,000 tons. 107,000 tons. 97.4 % 2.6 % Pod, Pad, Caps

How loose R&G will be positioned against Pre-portioned ?

R&G and Pre-portioned are not in conflict but complementary.

R&G will be always leader in the professional and Ho.Re.Ca. market

due to the lower cost.

Pre-portioned will strongly increase it’s share, opening new markets,

especially OCS, DtoD, Retail, Vending etc.

due to its added values like packaging and usability.

What is the future of loose R&G Coffee ?

The future is bright

The R&G market trend is increasing and it will continue because:

- opening of new markets - creation of new coffee beverages - quality improvement of coffee origins - improvement of the green coffee processing - improvement of brewing technology - improvement of roasting technology - improvement of packaging technology - opening of more coffee shops - improvement of the coffee knowledge

Conclusions The global market is asking for :