The natural alternative to increase your drive your energy market

20th March 2014

£2.5bn

£2.0bn

£1.5bn

£1.0bn

£500m

£0

Val

ue

(£)

+1.5%

+5.7% +2.5%

+5.5%+2.5%

-0.7% +3.6% -7.1%

-24.3%

The Market

• The UK soft drinks market is huge – approaching £10bn at retail prices by most measures

• Sports/energy drinks are the fastest-growing sub-sector of the UK soft drinks market, worth almost £1bn annually

• Top two brands (Lucozade and Red Bull) account for just under 75% of total branded sales by value

The Market – Split by Sub Sector Total Market

100% £971m

+7% YoY

Energy28%

£272.3m +4% YoY

Sports19%

181.3m-2% YoY

Stimulant53%

£517.4m+12% YoY

Brand98%

£267.8m+4% YoY

Own Label2%

£4.5m-14% YoY

Brand84%

£151.9m-4% YoY

Own Label16%

29.4m+10% YoY

Brand81%

£418.9m+10% YoY

Own Label19%

£98.5m+21% YoY

• Stimulant Drinks represent the largest share of the market and the fastest growth

The Market – Split by format

Stimulant 53%

£517.4m+12% YoY

Cans89%

£459.9m+16% YoY

Bottles11%

57.5m-11% YoY

250ml60%

£275.9m+13% YoY

500ml30%

£140.1m+27% YoY

Other10%

£43.9m+1% YoY

Brand76%

208.7m+7% YoY

Own Label24%

67.2m+38% YoY

Brand 95%

133.8m+22% YoY

Own Label5%

6.3m+4469% YoY

• The largest growth is in larger-format cans, with continued growth of Monster, Relentless and retailer imitations of these

Consumer Trends

• Essential consumer trends in food and drink haven’t changed in the last five years:

• Simplicity: the fewer ingredients, the better

• Naturalness: all natural ingredients (including concern over sweeteners – sugar is at a crossroads, especially if it’s natural fruit sugar)

• Health: naturally functional ingredients like superfoods, antioxidants, etc

• Authenticity: origin of ingredients, recipes, heritage, traditional values

Consumer Insight“Still thinking about energy drinks, which of the following reasons put you off

drinking them?”

15

4

12

20

23

25

25

27

27

30

31

45

50

0 10 20 30 40 50 60

None of these

Other

There are cheaper alternatives (eg colas)

They are calorific

Their jargon (eg isotonic) means nothing to me

There are better alternatives for hydration

There are healthier alternatives

I am wary about ingredients that are not good for me

I am put off by the taste

I do not believe that they do what they claim

They are not very good for my health

I do not need an artificial energy boost

They are expensive for what they are

%

Energy drinks

810 internet users aged 16+ who are non-users of energy drinks

Introducing herbal magic

• Consumer want the function without the nasties

• Herbal magic comes in 2 great tasting flavours– Green tea and Herbal– Herbal, pomegranate and wild

berries

• As a 100% Natural Energy drink

herbal magic the Natural choice

herbal magic the Natural choice

The natural energy choiceJibran’s story

After a serious illness left Jibran Khan in aHospital bed for some time, he turned todrinking energy drinks to give the additionalenergy he need on a daily bases. Howeverthe synthetic chemical taste began to be toomuch and he craved for a health morenatural version of the sickly sweetmainstream brands.

It didn’t take him long to get out of hospital with a

new determination to take on the energy giants in

a natural way