The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

Profit Mix from Alcohol Sales The SMIRNOFF words and associated logos are trade marks. © Diageo To make £100 cash margin You need to sell less spirit and mixers than any other drink in your outlet to make the same cash margin¹

The potential size of the prize The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

What do consumers want? Consumer research highlights: 1.Consumers want an experience they can not replicate at home¹ 2.Consumers believe trying new things lead to better nights out¹ 3.Consumers want to try new things that are new and exciting but they must be simple & uncomplicated¹ 4.Consumers are motivated by International inspired experiences. Many of there own great experiences were enjoyed on holiday while travelling, therefore International experiences resonate strongly.¹ The SMIRNOFF words and associated logos are trade marks. © Diageo Flamingo Global brand and insights consultancy: Qualitative research across six consumer groups aged between 21-49, 2011

Why lead with vodka & Smirnoff to drive your spirit & mixer sales: Across the managed on trade, vodka represents nearly one in every two spirit sales. Therefore vodka is key to driving growth in this segment Vodka within the On trade managed segment is growing 7.6%¹ Smirnoff™ is driving this and is accountable for 69% of the growth¹ Therefore Smirnoff is the best placed brand to drive consumers in to spirit & mixer segment The SMIRNOFF words and associated logos are trade marks. © Diageo CGA On Trade Combined Report, Managed Ons TBA & Spirits report to

The SMIRNOFF words and associated logos are trade marks. © Diageo Flamingo Global brand and insights consultancy Research Report in to Drive consumers in to your most profitable drinks segment by clearly offering a range of new and exciting Smirnoff serves that are simple and uncomplicated

The SMIRNOFF words and associated logos are trade marks. © Diageo The drinks: Simple & uncomplicated but still new and exciting for Consumers 1. Alcovision - Y/E Dec % of Vodka volume (serves) Why Smirnoff’s World’s Best Drinks Campaign Currently Nearly 75% of consumers drink vodka with Cola, Lemonade, Tonic Water or Orange Juice¹ Serve Smirnoff with cranberry juice and fresh lime (only 3.6% of vodka serves with Cranberry currently) Serve Smirnoff with fresh lime (only 2.0% of vodka served with just fresh Lime) Serve Smirnoff with pineapple Juice & grenadine (only 0.4% of vodka served with pineapple) Serve Smirnoff with Ginger Ale and fresh lime (only 0.1% of vodka serves with Ginger Ale currently)

The SMIRNOFF words and associated logos are trade marks. © Diageo The Drink Titles: International Drink Names that reflect the ingredients and Inspire consumers Why Smirnoff’s World’s Best Drinks Campaign Smirnoff New York Cranberry & Lime Smirnoff Jamaican Sunrise Smirnoff Rio Caiproska Smirnoff & Cranberry Smirnoff, Pineapple and Grenadine Smirnoff & fresh Lime Smirnoff Moscow Mule Smirnoff & Ginger

The SMIRNOFF words and associated logos are trade marks. © Diageo An on trade specific marketing campaign: A £3.5m marketing campaign that can be replicated at the point of purchase through support to drive spirit and mixer sales 1. Alcovision - Y/E Dec % of Vodka volume (serves) Why Smirnoff’s World’s Best Drinks Campaign 67% of consumers who have seen the new advert say they are more likely to drink Smirnoff

The Outlet Support The SMIRNOFF words and associated logos are trade marks. © Diageo An on trade specific marketing campaign: A £3.5m marketing campaign that can be replicated at the point of purchase through support to drive spirit and mixer sales Inspiring Creative to drive consumer demand POS to add finishing touches that you can’t replicate at home Training support to ensure perfect drinks every time

The Outlet Support The SMIRNOFF words and associated logos are trade marks. © Diageo Consumers want to try new things that are new and exciting but they must be simple & uncomplicated Simple yet exciting new “Smirnoff Eagle” serve Fill the central tube with ice and close lid Fill to 700ml marker with 100ml Smirnoff and 600ml chosen mixer Serve with 4 glasses filled with ice and garnish

Summary An “X” Profit opportunity through a more profitable alcohol drinks mix Activity aligned to a £3.5m on trade specific marketing campaign that is driving consumer consideration to purchase Smirnoff by 67% Significant investment in outlet support maximise the profit opportunity The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

Appendix: Items you may choose to use or not (Not Customer Facing) Linking to FB with Pub Finders – Speak to CP&A about the different levels available Staff Training – Speak to CP&A about the different levels available More info on the Pitcher Serve Smirnoff strategy Smirnoff Media Plans and Facts The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

Facebook The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

Training The SMIRNOFF words and associated logos are trade marks. © Diageo OPTIONS 1.In outlet training Guides 2.On Line Training 3.Manager Train the Trainer 4.Outlet by outlet training

The Idea: The Eagle Serve Distinct, exciting serve with a functional benefit… Consumer Hook… -A perfect serve without too much ice diluting the taste -A great group experience resulting in less trips to the bar -Clear value for money as the level of liquid is clearly marked -A serve that has stand out in the bar, a good conversation starter… Customer Hook -Provide customers with an added value experience they cant get at home -Consistency of the perfect serve, no complaints on the amount of ice -Correct measures clearly marked, no danger of eroding margin by adding extra mixer -Overcomes functional barriers: -Fits in the smallest dishwasher -Tube is same size as a standard glass -Additional tongs provided The SMIRNOFF words and associated logos are trade marks. © Diageo 2012.

SMIRNOFF F13 Strategy & Activation

Smirnoff is advertising specifically to inspire consumers to enjoy spirits in the On Trade The SMIRNOFF words and associated logos are trade marks. © Diageo Smirnoff™ continues to invest to drive growth in the vodka and wider spirits segment investing over £8m on above the line advertising throughout the year With the NEW ON TRADE SPECIFIC advertising going above the line in April and August, Smirnoff™ plan to continue to drive the vodka and wider spirits segment of the on trade Smirnoff’s™ World’s Best Drinks programme provides and opportunity to drive spirits growth within your outlets Smirnoff’s ATL Share of voice is 10% of total spirits Smirnoff’s ATL share of voice is 65% of the vodka category in GB Smirnoff is increasing year on year the ATL directly focusing on the “on trade” TTL Campaign across Drinks & Nightlife - TV, Digital, OOH, Experiential events Smirnoff’s ATL Share of voice is 10% of total spirits Smirnoff’s ATL share of voice is 65% of the vodka category in GB Smirnoff is increasing year on year the ATL directly focusing on the “on trade” TTL Campaign across Drinks & Nightlife - TV, Digital, OOH, Experiential events