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Tiered Pricing Modification 7/7/2008

Tiered Pricing Modification 7/7/2008. BOTTLES. TM CUPS & VESSELS. MERCHANDISING LOBBY, TABLE, MENU. BRANDS. Most Valued Supplier. CCE is committed to being your most valued suppler We want to understand your business Business Traffic, Economy impact Your business plans

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Tiered Pricing Modification 7/7/2008

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  1. Tiered Pricing Modification7/7/2008

  2. BOTTLES TM CUPS & VESSELS MERCHANDISING LOBBY, TABLE, MENU BRANDS Most Valued Supplier • CCE is committed to being your most valued suppler • We want to understand your business • Business Traffic, Economy impact • Your business plans • Overall Sales vs. Coke Volume • Business building opportunities • Optimal Beverage Program (OBP) • Business building opportunities • Bottles to Go • Dasani at the Table • Cup set of vessel upgrades • Brand Expansion • Merchandising • Meal Bundles • Portfolio Rewards Program rewards you for • Volume Building • Cup Standards • Incidence Building • Simplified fountain price structure • Less tiers due to current economic conditions • Lower break points provide best price at 6 units per delivery * Portfolio Rewards (PRP) CMA example assumes qualifying activation of all PRP elements with signed PRP agreement

  3. Initiatives to Drive Positive Plan Performance

  4. Syrup & Food Service PBUTiered Pricing Modification • Rationale for change: The economy continues to slow - Q1 CREST Data reports: Overall restaurant traffic counts are declining. KO Beverage consumption is declining across all Eating and Drinking sub channels. • Significant volume loss to broadliners: Loss of DNGP. Loss of existing Bottle/Can volume in lost outlets. • Minimize the Need for Price Exceptions • Tier level for best price at 17 plus units: Only 8.8% of customers are achieving the 17+ tier break. 60.1% of customers are in three tiers (5-7/8-9/10-16): 68.3% of the volume. Customers in the 6 - 16 tier breaks have realized a disproportionate price increase (to the rate of $6-$10 a box).

  5. Objective: BDM’sGain more outlets Description: Acquire new & competitve business Tools: Enhanced Tiered Pricing New and Improved CMA LOS tool Kit Special Emphasis Programs Horizontal Growth

  6. Bottle Your Profits • Start Date: July 15th, 2008 • Objective: Gain penetration of PBU in fountain only Foodservice accounts • Description: Sell into CCE and CCNA Food Service Outlets Sell 20oz PET products • Tools: Enhanced Tiered Pricing New and Improved CMA New BYP point of sale kit Special Emphasis Programs

  7. Objective: Introduce Gold Peak Tea BIB in targeted locations Goal: 2,100 Gold Peak Urn/2 valve towers Implementation: LMP 500 gallon+ Food Service, Amusement/Rec & At work Target List Training Support Via CCNA Sales Tools: MU Blitzes Pricing of $38.00 per BIB + any CMA Gold Peak Tea - BIB

  8. Coke Zero BIB Availability • Objective: Achieve Coke Zero BIB availability in 2,500 Outlets • Implementation: Any LMP Account replacing water valve & Nestea Raspberry • Sales Tools: ADM Focus Pricing falls into Tiered pricing structure + any CMA

  9. Bar/Tavern Other Eat/Drink QSR’s Restaurant Revised Tiered PricingFood Service Channels

  10. Change On-Premise Fountain – 3 Tiers (1-4, 5-7, 8+)

  11. Change FOODSERVICE only – 2 Tiers (1-9, 10+) CSD Non Carb.

  12. Competitive CMA

  13. 2008 Gold + Fountain 1 Program Parameters

  14. 2008 Platinum + Fountain Preferred 1 Program Parameters

  15. LMP Fountain Insulation Plan • Objective: • Insulate current at risk outlet base • Explain new TL • Sell CMA • Resign 50% of outlets that stopped • buying (target list) • Utilize the 7 Step Selling process • Confirm opportunities through outlet walk-around • Provide opening statement • Question and listen • Explore customer needs • Present solutions • Handle objections • Close and conclude • Understand customers business • Business Traffic, Economy impact • Overall Sales vs. Coke Volume • Review pricing scenario • Equipment Service • Identify sales opportunity • Optimal Beverage Program -OBP • Bottles to go • Cup set or vessel upgrades • Brand expansion (ie. Nestea Rasp) • Merchandise to standard • Create meal bundles (cokesolutions.com) • Opening Statement • Hello __________; due to the current economic conditions, we have recently simplified our fountain price structure and want to communicate it to you. Also, I analyzed our beverage business and believe we have an incremental $_________ in beverage opportunity. Can we take a few minutes to review these opportunities? • Review NEW tiered pricing program and incremental profit potential • Execute LOS; Look Of Success * Internal use only

  16. Tiered Pricing Modification - Next Steps • BU Pull a Customer target list of all TL On-Premise Customers for Fountain ex. Wholesale Channel (By June 23) • BU Pull a Customer target list of all TL Food Service Customers (By June 23) • BU Communicate via. Letter to the customers affected by the change ( By June 30) • Communicate to Sales Team to ensure solid communication across all affected outlets

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