KAFFEHUSET FRIELE 7 generations in coffee

2 Kaffehuset Friele was established in 1799 Probably the oldest family owned coffee house in the world Friele family: 55% Sara Lee: 45%

3 KAFFEHUSET FRIELE  Founded in 1799 by a sea captain who brought colonial goods home from his journeys.  The company used to be a wholesaler producing/importing beer, leather, coffee and other colonial goods, and once was Bergen’s second largest ship-owner until specialising in coffee production in  Since then Friele has grown to become Norway’s largest coffee roaster.

4 PRODUCT HISTORY  1799 Green coffee  1893 Roasting plant  1911 Electrical roasting plant  1935 Friele Frokostkaffe  1955 Restr. import  1960 Unrestr. import  1972 Aroma sealed bag  1995 Standing bag

5 THE WORLD’S LARGEST COFFEE ROASTERS (millions 60 kgs bags)

6 KEY FIGURES KAFFEHUSET FRIELE -09  Volume 11,25 mill kilos  Turnover 648 mill NOK  Result ( after taxes ) 61 mill NOK  Market share35 %  Employees 115

NORWEGIANS LOVE COFFEE kilos per capita 4.5 kilos per capita 9.65 kilos per capita

8 WE ARE THE BIGGEST COFFEE DRINKERS IN THE WORLD, WHY…?  We use high quality coffee  Lightly roasted  Drinkable – Easy to drink OR…… WARM COMFORT IN HARSH CONDITIONS…

PERHAPS THIS IS WHY WE ENJOY COFFEE SO MUCH? 9

10 THE FACTORY

11 GREEN COFFEE BUYING

BLENDING 12

13 CUPPING

FRIELE ORGANISATION

15 TOP MANAGEMENT

16 SALES DEPARTMENT

17 TOP MNGMT SALES

18 MARKETING DEP

19 RETAIL NORTH

20 RETAIL WEST

21 RETAIL SOUTH/EAST

22 FOODSERVICE NORTH/WEST

23 FOODSERVICE EAST/SOUTH

24 CONTENTA

25 NORWEGIANS LOVE COFFEE 2.4 kilos per capita 4.5 kilos per capita 9.65 kilos per capita

26 Coffee – Norway`s favourite beverage (Liter/year per capita, total = 750 l) Kilde:

27 Per capita coffee 2008 ”world champions”  Finland9,8 kg  Norway9,6 kg  Sweden9,4 kg

The Norwegian Retail Market

29 RETAIL NORWAY 2009 Kilde: AC Nielsen Norge

30 VOLUME SHARE BRANDS (Source: AC Nielsen per last 52 weeks)  Friele Frokost kaffe27,1%  Evergood20,0%  Coop (all varieties)17,6%  Ali 8,1 %  Mills 4,5%  Cirkel 4,7%  Nescafé 4,2 %  Friele (others) 3,8 %  Krone 2,2 %  Kjeldsberg 2,2 %  Øvrige 9,7 %

31 TOP OF MIND UHJ. KJENNSKAP

32 Kilde: Norsk Kaffeinformasjons omsetningsstatistikk 2009 COFFEE ROASTERS 2009 (all coffees –converted to green coffee)

33 SALES DEVELOPMENT ROAST & GROUND

34 Sales 2008 : kg NORWAY`S BIGGEST COFFEE BRAND : 30 % coffee share (NKI) 27% market share retail (ACNielsen) FRIELE FROKOST

35 Sales 2008 : kg NORWAY`S 6. BIGGEST COFFEE BRAND: 3 % MARKET SHARE KRONE

36 Sales 2008: kg CAFE NOIR

37 Sales 2008: kg FAIRTRADE

38 FRIELE DECAF Sales 2008 : kg NORWAY`S MOST SOLD DECAF COFFEE

39 FRIELE SPECIALITIES Sales 2009 : kg Norway`s most sold speciality coffee

Food Service

41 R&G Coffee

42 SALES DEVELOPMENT JUBILEE HOT CHOCOLATE

43 SALES DEVELOPMENT VITALITY JUICE

44 SALES DEVELOPMENT CAFITESSE

45 SALES DEVELOPMENT ILLY

46 Norway’s leading brand of espresso ILLY ESPRESSO COFFEE

47 CAFITESSE

48 CONTENTA

49 VITALITY Norway’s leading brand of juice

50 JUBILEE Norway’s leading brand of HOT CHOCOLATE

51 JUBILEE CENTERS:  Upgraded to fit BRC-standards  Serves more than machines  Bergen, Oslo and Trondheim

MAIN TOOLS MARKETING MIX

53 Informercials

54 Print

55 COFFEE DEPARTMENT ICA STORO

56

57

58 WHOLE BEANS

59 MAXI KRISTIANSAND

60 SUSTAINABLE PASSION FOR COFFEE

61 OUR PARTNERS IN SUSTAINABILITY

62 DIRECT RESPONSIBILITY IN COFFEE PRODUCTION Minas Gerais, Brasil IPANEMA IRAREMA

FRIELE & UTZ  2003: First UTZ CERTIFIED coffee from Brasil  2004: All coffee from Kenya UTZ CERTIFIED  2009: First UTZ CERTIFIED coffee from Colombia Guatemala Mexico India 63

64 WE BELIEVE IN UTZ BECAUSE WE BELIEVE IN….. PEOPLE – PROFIT - PLANET

65 UTZ CERTIFIED Good Inside IMPROVED BUSINESS PRACTICES Traceability and record keeping Monitoring business processes TrainingFood safety

66 ”UTZ IS QUALITY”

67 TRANSPARENCY  Our tracer page is visited about 200 times a week

68 GOOD AVAILIBILITY  Largest volumes of certified coffee  21 origins around the world

69 WE ARE THE BIGGEST COFFEE DRINKERS IN THE WORLD, WHY…?  We use high quality coffee  Lightly roasted  Drinkable – Easy to drink OR…… WARM COMFORT IN HARSH CONDITIONS…

PERHAPS THIS IS WHY WE ENJOY COFFEE SO MUCH? 70

CARBON FOOTPRINT In 2009 we reduced our CO 2 - emisions with 18 %

72 CARBON REDUCTION Gass Bulk 500 tonn200 tonn

CARBON CREDITS Kenya 500 Carbon Credits Jatropha plant Brasil 1500 UN approved Carbon Credits from a small scale river power station

CARBON CREDITS 2009  Reforestation project in Chiapas Scolel Té i Mexico

75 THANK YOU!