Applause User Meeting January 19, 2010 John Williams Product Specialist Gilbarco Veeder-Root

Agenda >Popular Upgrade Price Promotions Extended >Update on Video Library >Focus on Morning Timeslot >Q&A

Offers extended on Audio/Video Upgrade and Color Retrofit programs > For 5.7” Mono Dispenser users >Order an EPP retrofit for an Encore 500 or S series dispenser and add an audio/video capable color screen retrofit for only $4,995 (list price.) >Standard list price = $6,870)  less than the cost for a factory-installed color upgrade! > For 10.4” Color Dispensers without Audio Video >Dispensers manufactured before August >Upgrade package for current color dispensers: $399 limited time pricing per dispenser ($799 if ordered after 12/1/09) >Includes: >New accelerator card (one per dispenser) >New software >Audio/video content libraries >Online training on audio/video functionality. Offers Extended until March 31, 2010

New on User Portal Volume Control for your A/V Enabled Dispensers >Available under the Support Tab on User Forum Media File Specifications – Including A/V Files >Available under the Resources Tab On User Forum New Report from The Coca-Cola Leadership Conference >Available under the CAMPAIGN PLANNING tab on User Forum

Current Video Library

Focus on the Morning Day Part

Morning Day-part Facts >About 28% of all gas transactions happen between 5 and 11AM >Morning business commuters are key demo >Over 87% of morning commuters drive alone >School bound commuters are second target >Parent with one or more child in car >Major reported traffic drivers at the convenience store are tobacco, coffee, water and other packaged beverages and breakfast foods.

Focus on Morning Food Services >Other than late night, breakfast is the only time when c-stores hold comparable share to QSR and restaurants in food service. >Core C-Store Breakfast eater >Male, by more than a 2 to 1 margin >Between 35 and 44 years old >Place a high premium on convenience

The Breakfast Trifecta >THE AM PITSTOP Customer >The drive-by experience >Fill-up and make tracks >“Getaway Break” Customer >a brief but necessary pause in the routine >Opportunity to relax, and gear up for the day >“Personal Oasis” >Looks for the full-service, fully enjoyable experience Source: ConAgra study of 3000 breakfast consumers

Emerging Competition >QSRs getting aggressive with Pit Stop Customers >Quiznos and other sandwich franchises introducing breakfast menus >Jack in The Box, Burger King aggressively marketing “grab-n-go” >McDonalds offers premium coffee/expresso services >Coffee and Juice companies go for the getaway break crowd >Oatmeal and Sandwiches at Jamba Juice, Starbucks and Caribou. Even tests at Baskin Robbins >Groceries marketing enhanced bakeries >Seating and free coffee refills >Quantity packs aimed towards offices

Other Factors >With drop in tobacco related business, stores need to build their focus elsewhere – particularly in the AM. >Quality coffee isn’t what it used to be >Only 52% of adults drink coffee. >Near glut of coffee bars and alternatives in most urban markets >Breakfast menus are expanding >More breakfast choices with focus on convenience >More focus on fresher and healthier offerings

How to Defend and Grow Share >More focus on the 48% of customers that don’t drink coffee >Promote waters, fruit drinks, and other healthier beverages >Energy drinks and energy “shots” are growing caffeine delivery substitutes >Keep cost low and value high >Target food service item below $2.50 with focus on high value per >bfast sandwiches for burritos for “2 for $2.49” is winner >Remember that 87% of commuters drive alone >Special deal on 16 coffees “when you buy 2” not likely a winner

Defend and Grow Share >Make an effort to target women >Offer healthier fare such as yogurt, breakfast bars >Photos of females in ads. Make them feel welcome >Re-enforce need for breakfast in promotion copy >People who eat breakfast have easier time losing weight >Focus on variety and convenience >Mix in ads for other convenience items such as aspirin, chapstick, etc.

Products targeting new customers Female Friendly Water Brands Healthy Grab-N-Go Snacks Morning Beverage Alternatives Fresh, healthy dairy Fresh, baked bread Meal Replacements

Core Prepared Breakfast Products Search: Breakfast Sandwich Search: Breakfast Burritos >77% of Americans have consumed a prepared breakfast sandwich in last 12 months u p from 73% in (Source:NACS) >Ethnic food variations catching on. (Burritos, tacos) >Current library has over 18 different breakfast sandwich images. >Landshire and Lettieres recently added to library >Have tried repeatedly to get Deli Express without luck. (Call them direct.)

Quick Update on Coffee Products >Many branded coffee products out there. Most regional. >Encourage your vendor to provide us with color images >Ronnoco, Van Houte, Community and others in system. >If you have custom branded program or serving cups, you will need to provide photos/images. >Market swinging away from elaborate offerings in many markets >Hot Chocolate and “drip coffee” will bring in more customers than “latte, mocha, or cappucino.” 1 hot chocolate and 2 coffee videos available Animation available on user portal

Summary >Morning traffic is more than ¼ of daily traffic, and the products in demand are often different than at other times of day. It’s worth spending time to build a unique schedule to target customers. >Think past coffee and donuts – especially in beverages. 48% of adults don’t drink coffee. What do you have for them? >Value and variety are key, and cost is a factor. >Women skip breakfast more than any other demographic, and are also most aware of the value of a good breakfast. It’s a key audience that probably isn’t coming into your store already.