Apple “THE OUTLOOK”

Piotr Podoba, General Manager Poland, Döhler Group

PROGNOSFRUIT

August 2018

2

STRENGTHS

• 2’nd flavor in the world• 1’st filler in juices• Global product• Lower risk through good

possibilities of global sourcing

• Standardized quality

WEAKNESSES

• Strong price fluctuation • The drop in demand

(mature markets) • Excessive fragmentation of

producers• Main crop regions growing

table varieties

OPPORTUNITIES

• High price of orange conc.• New apple orchards acreage• Global roll out 50% apple

Spritzers (Lower cal.)• Increase of NFC

consumption• The varieties play

THREATS

• Increasing production capacity

• Fresh Fruit consumption• Consolidation of customers• Differences in exchange

rates

Apple: The AnalysisSWOT Analysis of Apple JC & NFC Market

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APPLE THE GLOBAL CONSUMPTION

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GEOGRAPHYSPLIT within Apple Flavours 2018F

TOP CATEGORIES within Apple Flavours 2013 – 2018F

Apple: The Global ConsumptionTop Categories & Geography Split of Apple Flavours 2018F

6.545,98 6.629,22 6.527,53 6.452,78 6.438,65 6.136,28

1.241,49 1.196,26 1.126,21 1.092,20 1.136,79 1.122,17

,00

2.000,00

4.000,00

6.000,00

8.000,00

2013 2014 2015 2016 2017 2018

FRUIT BASED DRINKS VOLUME IN MIO LITERS

Apple Apple Variants

6.905,22 6.890,15 6.673,45 6.524,47 6.491,97 6.473,81

574,11 614,08 658,43 693,39 749,33 784,63

,00

1.000,00

2.000,00

3.000,00

4.000,00

5.000,00

6.000,00

7.000,00

8.000,00

2013 2014 2015 2016 2017 2018

FRUIT BASED DRINKS with Apple Volume in mio Ltrs

From Concentrate NFC

Region VolumeChanging rate

(2014/2018F)

Asia 1,948 -3.52%

East Europe 1,418 -6.50%

West Europe 1,363 -6.93%

North America 1,176 -11.66%

Latin America 764 -1.83%

Middle East, North Africa 310 -10.12%

Australasia 218 -21.84%

Africa 62 -33.06%

Total Apple Volume in mio Ltrs

FRUIT BASED DRINKS

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Carbonates

+ 65,86%

Apple: The Global ConsumptionGlobal Development of Apple/Apple Mixes per Region (2014 – 2018F)

Asia

Energy drinks -41,89%

Juices

+ 3,71%

Enhanced waters

+ 88,64% Still Drinks

+ 36,68% (Total)

EuropeEnergy Drinks

+36,71%

RTD Tea Drinks-45,65%

North

America

Latin

America

Flavored Water 15,97%

RTD Tea Drinks + 43,38%

Sport Drinks+ 18,35%

Still Drinks

+ 33,33%

Energy Drinks

+ 10,45%

Enhanced Water

56,07%

MENASport Drinks

+ 32,49%

RTD Tea Drinks

+ 103,3%

Changing rate 2014-2018F in %

Growth for Apple as ingredient & Flavourwithin Emerging categories

Carbonates

-17,82%Juices

-32,45%

Squashs/Syrups-42,43%

Juices

+ 11,8%

Nectars

-27,98%

Still Drinks

-7,27%

Juices

-15,27%

Squashs/Syrups-19,72%

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APPLE JUICE CONCENTRATE

THE GLOBAL PRODUCTION & TRADE

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Apple: The Global Trade AJC Volume flow worldwide (1,000 mt) as it used to be

Source: World Apple Review, Belrose, Inc.

40

20-100

140-200

40

180-250

55-7520-50

60

30

20-30

China

EU

USA

55-100

Others

Others 45275-320

PL RU

80– 90

15-90

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Apple: The Global Trade China Exports of AJC in MT by Destination Sep 2017/march 2018Difference in % vs. 2016/17

CHINA

Germany

26.600; +375%

Spain 561

Netherlands

22.500; +681%

Australia 26.625

South Africa 33.625

United States

186.000

+17%

Canada

35.750, +148%

Russia 56.080

+ 12%

TOTAL: 580.000 mt

Source: World Apple Review 2017,S. 135

Poland 17 000

no import in 2016/17

Ukraine 9.900

no import in 2016/17

Turkey 16.500

no import in 2016/17

Other countries

149.420

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Apple juice concentrate

Global production, 2002-2017

*CAGR 2010/2015 - **where Flavours matches one or more of [Apple, Apple (Baked), Apple (Green), Apple (Red), Apple Crumble, Apple Pie, Apple Strudel, Cherimoya/Custard Apple] as the flavour

Source: World Apple Review 2018, Belrose, Inc.:

Global production 2002-2017(1.000 metric tons)

1.550 1.600

1.950

1.680

2.100 2.120

1.800

1.650 1.600

1.550 1.600

1.500

1.375 1.457 1.490

-

500

1.000

1.500

2.000

2.500

Volume ( 1.000 mt)

1.190

10

Apple juice concentrate

Production in Poland, 2005-2018

*CAGR 2010/2015 - **where Flavours matches one or more of [Apple, Apple (Baked), Apple (Green), Apple (Red), Apple Crumble, Apple Pie, Apple Strudel, Cherimoya/Custard Apple] as the flavour

Source: KUPS/CAAC:

Production in Poland 2005-2018(1.000 metric tons)

170

218

97

268

191

125

200

275

235

285 290

270

130

-

50

100

150

200

250

300

350

Volume ( 1.000 mt)

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LET‘S BRING APPLES TO LIFE

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Notice:

Though the material has been acquired most accurate,Döhler provides no warranty as to the accuracy, timeliness, completeness, merchantability for any purpose of any information contained in this document. The information contained herein are for informational purposes only and subject to change without notice. © Döhler