free beverage GmbH is a Munich-based company founded in 2008 that produces energy drinks and sports drinks. It uses a dual strategy of pushing for strong distribution partners to achieve market presence and pulling demand through brand development. free is currently available in over 13 countries worldwide and aims to establish itself as a global player in the energy drink market. The company focuses on quality products, strong branding, and sophisticated market entry strategies.

1. COMPANY
PROFILE

2. COMPANY FACTS
History Strategies
free enters market with dual strategy approach:
Company free beverage GmbH started its operative PUSH - free focuses on acquiring strong
information business in March 2008, based in Munich, distribution partners to achieve
Germany presence in every significant market
Product and thus assuring sustainable
information free beverage GmbH, founded in January market penetration
2008, based in Munich, Germany
free sales PULL – By applying a dedicated approach
strategy free is currently available in more than to brand development by means
13 countries around the world: of trend setters and multipliers,
International Germany, Austria, Switzerland, Czech & free at the same time creates
marketing & Slovak Republic, U.A.E, Australia, Cypress, corresponding demand on the part
communication Spain, Ghana, Ivory coast, Benin, Nigeria of customers and doing so the
PUSH approach is intensified.
our main objective is to establish free as
global player in the worldwide energy drink
market
free product portfolio includes
soft and energy drinks
2

3. COMPANY FACTS
Our mission
Company establish our position on the worldwide
information beverage drink market
Product Our principles
information • focus on professional partners
• high international experiences
free sales • young and flexible company, open
strategy minded for new ideas/structures
• international transferable concept
International • strong shareholder background from
marketing & Finance, Real Estate, Property and
communication Law sector
• high upscale potential
• sophisticated market entry strategy
Our key principles
• outstanding high product quality
• strong brand mark and design
• advanced customer care
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4. PRODUCT INFORMATION
Our brands
Company free energy drink
information Taurin and caffeine
soft drink
Product
information
free sales
strategy
free sports magnesium
International for sportsmen in Fitness
marketing & centers
communication
others in
pipeline
4

5. FREE ENERGY DRINK
Product range – energy drink 1,5 l bottle
Company
pany free energy drink
information
tion
Ingredients: 250 ml glass bottle
Product
duct • Caffeine
information
tion • Taurine
• Vitamins
free sales
ales
strategy
tegy Available in different sizes:
• 250 ml can
International
onal • 250 ml glass bottle
marketing &
ng • 500 ml can
communication
tion • 1,5 l bottle
250 ml can
5

6. FREE ENERGY DRINK
Product ingredients & effects
Company The philosophy and vision behind free is to set a benchmark in taste and quality in the energy drinks market.
information The unique freshness of free energy drink is achieved by the exclusive use of pure, Austrian spring water.
Product The composition of this mineral water with caffeine*, taurine*, sugar, vitamins B6 and B12
information result in the outstanding taste of free and the instant revitalization of your senses.
free sales INCREASES performance, concentration and reaction speed
strategy
IMPROVES vigilance and emotional status
International
marketing & STIMULATES metabolism, cardiovascular system
communication and detoxification of the body
free - energize your life!
*Taurine is an amino acid created naturally in the body. It is concentrated in fl uids of body cells and is as such distributed throughout the entire body. Adding taurine supports the
body’s productiveness in various different situations, such as for overcoming stress, osmoregulation, thermo regulation, increases performance of the heart, counteracts oxidative
stress, detoxifying the body, etc. Taurine can be found in everyday food like mussels, tuna, beef and pork, yoghurt, etc.
*Caffeine is a naturally occurring substance in plants (coffee, tea, cacao, guarana, etc.). Caffeine stimulates the brain, the cardiovascular system and fat burning.
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7. FREE ENERGY DRINK
Product consumption ocassions
Company free is a functional beverage. It has been specially developed for times of
information increased mental and physical exertion and the effects for consumer are among other things:
Product • an increase in the ability to perform by improving concentration and reaction speed
information • stimulation of the cardiovascular system and metabolism
free sales key consumption situations:
strategy • at work (~ 24 %)*
• while partying (~ 17 %)*
International • while studying/at school (~ 15 %)*
marketing & • working out (~13 %)*
communication • during sports (~ 11 %)*
• while driving (~ 8 %)*
• other (~12 %)*
…or whenever additional energy is needed!
*Source national science foundation 2002
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8. FREE ENERGY DRINK
free energy drink target group
(socio-demographic profile)
Company • primary target group between the age of 16 and 29
information
• men, consume 2 x more energy drinks than women
Product
information • single or young couples without children
free sales • 90% of consumers are active working or students
strategy
International
marketing &
communication
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9. FREE ENERGY DRINK
Brand values Why to drink it ...
Company AUTHENTICITY pure and fresh taste reason why…
information the real, credible alternative
Maximum indulgence!
Product OPEN MINDED international
• pleasant fruity sweetness
information fresh
• refreshing with soft carbonation
flexible
free sales Excellent value for the price!
strategy AMBITION self-confident
• attractive price
• low purchase price for max. quality
agressive
International ambitious
• high profit margins
marketing & hungry for success
communication dynamic Image
• Music, Motor Sports/sports, Music,
VARIETY adventurous Lifestyle & culture
young
stylish
modern
curious
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10. FREE ENERGY DRINK
Packaging possibilities
Company Different packaging possibilities, to fit
information purchase occasion and customer needs:
Product 250 ml can
information • Duo packs – ideal for Petrol channel promo
• 4 – packs suitable for retail HM & SM promo
free sales to increase transaction size
strategy • 6 packs – ideal as a penetration SKU to build distribution as well as
for Metro/Makro customers (Horeca, Trader, Traditional trade)
International • 24 can tray – regular package
marketing &
communication 250 ml bottle
• pack of 20
1,5 l bottle
• pack of 6
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11. FREE SPORTS MAGNESIUM
Company free sports magnesium
information This delicious drink with mango flavor covers the
higher demand of minerals and is boosting your body
Product before, during and after any sport activity.
information
Packaging possibilities
free sales 1 l bottle
strategy pack of 6
International
marketing &
communication
11

12. SALES STRATEGY
Cooperation
We are looking for a long-term cooperation with our partners!
Company
information
Product
information PARTNERSHIP
free sales
strategy
exchange of
International information International
marketing & support each other Distribution
communication planning Partner
controlling
timing
12

13. SALES STRATEGY
Company
information
Product
information
FOCUS
free sales
HORECA Convenience Retailers &
strategy
Stores & Gas Wholesailers
Station
International
marketing &
•Hotel • e.g. Seven Eleven, • Metro/Makro Cash
communication
• Restaurant On the run & Carry Group
• Cafe • e.g. Agip, Shell • Edeka
• Bar • others • REWE
• Nightlife, Disco • others
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14. SALES STRATEGY
Strategies by channel
horizontal growth 2009 - 2010
Company
ON - TRADE
information
PETROL
Product
RETAIL
information
free sales
strategy DISTRIBUTION LISTING DISTRIBUTION
WHOLESALERS MAIN CHAINS (LISTING)
International
marketing &
communication PRICING VS. PLANOGRAM
PLANOGRAM
COMPETITORS
LEAFLET PROMO
CHILLED
PROMO
AVAILABILITY MULTIPACKS
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15. SALES STRATEGY
Consumer and shopper understanding
Company BACKGROUND
information There is often a difference between the person who BUYS energy drinks - the
shopper, and the person who DRINKS energy drinks - the consumer.
Product 42% of supermarket shoppers buy energy drinks for someone else
information Therefore, shopper are not always consumers and it is important to
understand both sets.
free sales
strategy KEY AREAS
There a re 4 Key Channels for Consumer/Shopper understanding
International • Petrol
marketing & • On Trade
communication • Retail
• Cash & Carry and Wholesale
15

16. SALES STRATEGY
Petrol
Company KEY FINDINGS:
information
There are 3 key shopping times in the day:
Product • early morning
information • early afternoon
• early evening
free sales
strategy Many chilled multipacks are bought in the morning.
There is a weekend peak for multipack sales
International (parties and social consumption).
marketing &
communication OPPORTUNITIES:
• avoid out of stock after the morning peak
• avoid out of stock on thu/fri/sat due to
party/social peak sales.
• cans need to be chilled as well as ambient
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17. SALES STRATEGY
On trade
Company KEY FINDINGS:
information
There are 2 key shopping times in the day:
Product • lunch time
information • evening & night
free sales Single Can sales mainly, with a big peak in the late
strategy evening and night.
International OPPORTUNITIES:
marketing & • avoid out of stock during peak sales times
communication on evening, esp. before weekends
• cans need to be chilled
• ideal for mixed drinks in bars –
prepared special mixed drink concept
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18. SALES STRATEGY
Retail
Company KEY FINDINGS:
information
There are 3 key shopping times in the day:
Product • early morning
information • early afternoon
• early evening
free sales
strategy Many multipacks are bought in the morning and in the
evening. Single Can sales are steady all day, with a big
International peak in the late afternoon and evening.
marketing &
communication OPPORTUNITIES:
• avoid out of stock after the morning peak
• avoid out of stock during peak sales times on
evening and weekends.
• cans need to be chilled as well as ambient
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19. SALES STRATEGY
free - off trade sales strategy
Company Sales Objectives:
information The main overall objectives to achieve perfect free AVAILABILITY and VISIBILITY in each sales channel.
Product Sales Fundamentals:
information The 5 P’s are the free sales fundamentals. We use these fundamentals to achieve the objectives.
• What is the right PACK range (single can, four pack, etc)?
free sales • What is the right PRICE to the consumer?
strategy • What should the PLANOGRAM, or main display look like (location, flow, space, etc)?
• What is the ideal secondary PLACEMENT (cooler, multi-pack display, etc)?
International • What is the right PROMOTION (driving message, multi-pack promotion, etc)?
marketing &
communication Sales Channels:
The two main sales channels within off premise is IMPULSE and RETAIL. Impulse stores are classified as
smaller outlets where most consumption is immediate (eg, a Kiosk, Petrol Station, Convenience store).
Retail stores are generally larger outlets where most purchases of free are made for future consumption
(eg, a Supermarket, Hypermarket, Cash & Carry). These sales channels cannot be treated the same. We
should have different availability and visibility objectives for each channel and each store format.
Therefore, the sales fundamentals must be adapted to each channel and store format.
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20. INTERNATIONAL DEVELOPMENT
free countries
Company
information
Product
information
free sales
strategy
International
marketing &
communication
- 13 COUNTRIES WORLWIDE –
AMERICA – EUROPE – AFRICA – MIDDLE EAST – ASIA – AUSTRALIA
20

21. INTERNATIONAL DEVELOPMENT
Our retail distribution partners
Company • Metro Group • C+C scharper
information
• Fegro Selgros • Jet
Product
information • Tengelmann • Allguth
free sales • Müller • Nationales GFGH Verlegernetz
strategy
• Norma • Eppco Enoc
International
marketing & • Netto • Independent Wholesalers/Distributors
communication
• Citti (December 2008)
21

22. INTERNATIONAL DEVELOPMENT
Communication strategy
Company Slogans
information free - we create power
free - 100% energy
Product free - taste good - feel good!
information
Claims
free sales increases performance
strategy increases concentration and reaction speed
improves vigilance
International improves the emotional status
marketing & stimulates metabolism
communication
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23. INTERNATIONAL DEVELOPMENT
Sponsoring
Company SPORTS & EXTREMSPORTS e.g.Racing: Fia GT, Mini Challenge, Formula 3, CEE Champinship, Fieste
information Cup, Ralley Dakar, Moto Cross
Product MUSIC, FASHION & STYLE e.g. Lexington Park, Monrose, GQ, Philipp Plein, etc.
information
INTERNET Mailings to 500.000 addresses monthly
free sales
strategy RADIO Jingles for Party events in overcrowded areas
International OUTDOOR Bill boarding in overcrowded areas
marketing &
communication POS- MARKETING Promotion in Retail
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24. free beverage GmbH
Justus-von-Liebig-Ring 4-6
82152 Krailing - Munich
Germany
Tel: +49 89 800 65 64 0
Fax: +49 89 800 65 64 22
www.free-beverage.com