Market Data Energy Drink Success Continues Rising: >Sales Expected to exceed $9 Billion by 2011 >Energy drinks are expected to ride the non-carbonated wave rushing the beverage scene, growing at an annual rate of 12% and surpassing $9 billion by 2011, according to Energy Drinks in the U.S. A new report from market research publisher Packaged Facts. Coffee Products grow while other categories show signs of weakening. 8/15/09
Table of Contents I. Objectives ------------------------------------------Slide 10-11 II. Who are We? -------------------------------------Slide 12-15 A. MC² Brand Name Protection B. Experience Counts C. Tools of the Trade III. Why We Can! ------------------------------------Slide 16-23 A. MC² Taste 1. First Choice 2. MC² Combined still best choice
Table of Contents continued... 3. Future Concern for Competitor of MC² B. Three Tier Price Approach C. MC² Strategy 1. The slogan for the younger crowd and other venues 2. The slogan for the nightclubs and bars D. Promotional Support 1. Internet hits and downloads 2. What is Luny Tunes? 3. Racecar Events 4. Tasting Booths
Table of Contents continued... 5. Product Launch 6. In-Store Promotions 7. On-Site Training First Year’s Plan -------------------------------------Slide 24-28 A. First Three Months 1. Product Placement 2. Purchase Order 3. Terms and Conditions
Table of Contents continued... 4. Shipping 5. Training of Eby-Browns personnel 6. Distribution of MC² 7. Launching of MC² B. Second Three Months 1. Visit of MC² representative 2. Evaluation of progress on MC² 3. Modifications and Adjustments C. Last Six Months To be carefully discussed and evaluated by both Eby-Brown and MC² Management.
Table of Contents continued... 1. Visit of MC² representative 2. Evaluation of Progress on MC² 3. Modifications and Adjustments V. Cost of Doing Business --------------------------Slide 29 A. Case Costs VI. Next Steps ----------------------------------------Slide 30
I. Objectives <ul><li>To Diversify Eby-Brown’s portfolio of beverages with MC², a proven great tasting premium energy drink. Try our non-fat coffee variety. Also available – Energy Gum; Male-Enhancement Gum </li></ul><ul><li>To Provide Eby-Brown with MC² can sizes 8.4 and 16.0oz (Natural Herbal Energy Drink- 16.9oz). </li></ul><ul><li>To Increase Market Share </li></ul><ul><li>To Boost Eby-Browns by selling MC² in conjunction with your portfolio of beverage products. </li></ul>
I. Objectives continued... E. To Develop a strategy and action plan that will cause MC² sold through Eby Brown to become and remain one of the most sought after products in the United States Market. The initial introduction will include 8.4 and 16.9 or 16.0 oz. MC² caffeinated and herbal non-caffeinated drinks. Additional flavors will be introduced, after very careful consideration and evaluation of the market.
II. Who Are We? <ul><li>A. MC² Brand Name Protection </li></ul><ul><li>Beverage Plus, Inc. holds the exclusive license to distribute MC² and 40 other beverages worldwide. </li></ul><ul><li>B. Experience Counts </li></ul><ul><li>Beverage plus has many years experience in merchandising and distributing beverage products to : </li></ul>
II. Who Are We? continued... *Major beverage distributors *Major discount Stores *Hotels *Gourmet Food stores *Night Clubs *Coffee Shops *Restaurants *Spas, Health Clubs *Vending Machines *Large retail chain stores *Convention Centers *Colleges *Grocery Stores *Convenience Food Marts
II. Who Are We? continued... With the Support and Presence of: *Tasting Events *Electrical Coolers *6 can wide cooler suction cups *Static Decals *Tier Pricing *Refrigerated Beverage *Round Barrels *Posters *3 can wide mini display *Table Tops
II. Who Are We? continued... Accompanied By: *Sales Training *Continued Supervision *Sponsorship Concerts *Advertising *On Site Support *Promotional Events *Small Cars & Race Cars! *Public Relations
III. Why We Can! Beverage Plus feels very confident that MC² will be accepted in convenience stores because: A. MC² Taste 1. First Choice When provided with a choice, the energy drink consumer tends to move towards the MC² individual taste of energy drink and away from a recognizable established brand name. Why? Mc² simply is more Palatable to the human taste buds. Particularly when sold in hotels, colleges, gourmet food stores, coffee shops, spas, restaurants and Vending Machines (mixed fresh).
III. Why We Can! continued... 2. MC² Combined Still Best Choice Prior blind tasting events conducted with MC² have demonstrated that the MC² premium energy drink has great acceptance by the general public. Particularly in nightclubs and bars, the taste of MC² does not, when mixed with hard liquor, interfere with the taste of the liquor but rather enhances it’s flavor. Other leading energy drinks presently in the marketplace simply provide a very strong taste of their own, obliterating the taste of liquor.
III. Why We Can! continued... 3. Future Concern for a competitor of MC² How do you know you are getting the high quality hard liquor you are paying for in a drink at a night club or bar if you are mixing your favorite liquor with an energy drink that masks the flavor of the liquor.
III. Why We Can! continued... B. Two or Three Tier Price Approach It is the position of MC² that the two or three tier pricing structure of it’s distributors Energy drinks should be discussed to confirm where the MC² energy drinks should be priced. It is MC² contention that MC² is a premium energy drink and that the retail price should be seriously protected.
III. Why We Can! continued... C. MC² Strategy The MC² energy drink will be introduced in stores with a specific branding approach that would increase shares of the energy drink market of MC² but in addition, increase referrals to Eby-Brown customers. In Bars, our staff promotes with other products such as Vodkas, and provides coupons to generate walk in traffic. Slogan for the Younger Crowd : To be discussed Slogan for Nightclubs and Bars :To be discussed
III. Why We Can! continued... D. MC² Promotional Support 1. What is Luny Tunes? A popular musical group (www.fuegoentertainment.net) 2. Luny Tunes Concerts – Schedules of appearance. Schedules to be arranged by mutual concern. Campus Events – at universities/colleges
3. Racecar Events Use of the “MC² show car” for special promotions when available and scheduled by mutual consent and promotion for free trips to lucky winners to attend a Racecar Event & racecar driving lessons. 4. Tasting Booth setup at airports, tourist areas, bars and hotels. Training of MC² girls to hand out small tastes of MC² energy drink at specified areas of airline or train or bus lines, near hotel entrances and/or bars, always directing customers where the products may be purchased nearby at Eby-Brown clients. (sell in hotel room, gift shops, nearby bars and convenience stores)
5. Product Launch In Addition to being supportive with advertising and public relations appearances, etc., overseeing product giveaways; bar events with coupons for Eby-Brown; special pricing 6. In-Store Promotions Indicating the proper placing of product, MC² posters and support material. 7. On-site Training Educating and supervising managers; retail managers, store owners in how to best sell and merchandise MC² III. Why We Can! continued...
IV. First Year's Plan <ul><li>First Three Months </li></ul><ul><ul><li>MC² Product Placement </li></ul></ul><ul><ul><li>The normal and customary MC² product placement is with Red Bull as to our Berry Blue and Cherry Red flavors. Coffee Energy Drink belongs near the Monster and Rock star coffee energy drinks. Natural Herbal Energy Drinks belong near the Teas. </li></ul></ul>
IV. First Year's Plan continued... <ul><ul><li>2. Purchase Order </li></ul></ul><ul><ul><li>The purchase order should be made to: </li></ul></ul><ul><ul><li>Beverage Plus, 2620 Regatta Drive, Suite102 </li></ul></ul><ul><ul><li>Las Vegas Nevada 89128 </li></ul></ul><ul><ul><li>(702) 586-0249 </li></ul></ul><ul><ul><li>3. Terms and Conditions </li></ul></ul><ul><ul><li>Credit -Net 30 days </li></ul></ul><ul><ul><li>4. Shipping </li></ul></ul><ul><ul><li>From Moorsville, North California to Eby-Brown within 3 weeks of receipt of order </li></ul></ul>
IV. First Year's Plan continued... 5. Training of Eby-Brown Sales personnel on MC² Training is available & should be done just after the delivery of the MC² product to Eby-Brown salesforce and before the distribution of the product to the public. This would include classroom and in-field training with MC² samples 6. Distribution of the Product Additional field sales training of Eby-Brown personnel continues simultaneous with the launching of MC² in stores for an extended period of two weeks.
IV. First Year's Plan continued... 7. Launching of the Product A. TV Coverage B. Radio Coverage C. Newspaper Coverage B. Second Three Months 1. Visit of MC² Representative (2 -3 days a month) 2. Evaluation of progress on MC² 3. Modifications and Adjustments as needed
V. Cost of Doing Business <ul><ul><li>Case Costs </li></ul></ul><ul><ul><ul><li>$32 / 24 units/ 8.4oz / case. Retails for 1.99 + each unit. Special pricing for 4 packs. </li></ul></ul></ul><ul><ul><ul><li>$34 / 24 units / 16oz / case Retails for 2.99 + each unit. Special pricing for 4 packs. </li></ul></ul></ul><ul><ul><ul><li>$36 / 24 units / 16.0 and 16.9 ounce / Natural Coffee and Herbal Energy Drinks for $2.99 + retail each unit. </li></ul></ul></ul><ul><ul><ul><li>Shipping est. per case $1.75 (8.4 oz) $3.50 (16 oz) </li></ul></ul></ul>
VI. Next Steps Final negotiations on products and promotions and inventory credits, first order placement, launch promotions, receipt of first payments on credit terms!