SHELF READY PACKAGING ECR Operating Board Update 27 th June 2006

2 Agenda Project Summary Agreed Scope of ‘SRP’ Project Project Structure & Participation Work Plan timeline Progress Report Blue Book structure Headline Guiding Principles Discussion Points Next Steps

3 As set out in the Project Brief, the Project was mobilised at a European Level ii. ECR National Initiatives i. Proprietary Initiatives Working group to align the multiplication of initiatives on SRP across Europe. The ECR Europe project on SRP will publish it’s findings in an ECR Europe “Blue Book”. –Define Common Principles & Functional Requirements –Formulate Business Case –Facilitate Optimal Implementation Recognising the importance of the topic, and the need to act at a European level, the ECR Europe Shelf Ready Packaging (SRP) Project began in February 2006

4 The scope of the ECR Europe project incorporated a variety of localised definitions of SRP Re-usable Plastic TrayMUs, Pallet, DollyOn-Shelf Tray / Case SRP will be the term used by ECR Europe throughout the project. It is equivalent to RRP (retail ready packaging), ready to sell or PAV (prêt-à-vendre). SRP covers all types of shelf ready packaging, including promotional displays, pallets, etc. The definition is not limited to packaging which goes on the shelf, but includes all sales support mechanisms which are visible to the shopper in all major distribution channels Unlike other ECR concepts, SRP is not a standalone best practice – it has to be considered in the context of existing best practice recommendations SRP Types Scope

5 The Project Team has been arranged in three Work Streams Guiding PrinciplesBusiness CaseFunctional Requirements Project Management Project Team comprised of 40+ industry representatives, including Retailers, Manufacturers, Packaging Suppliers, and ECR Nationals Split across 3 Work Streams, aligned to the Project Deliverables

6 Project Timeline Planned ECR Europe Meetings Kick-Off Operating Board (27/06) Blue Book Finalisation Operating Board (05/09) Key Communications Completed ECR Europe Meetings Dec 06 Guiding Principles Functional Requirements Fine Tuning, Review & Pilot Mobilisation & planning 24/04 Business Case Nov 06Oct 06Sep 06Aug 06Jul 06Jun 06May 06Apr 06Mar 06 23/0529/06 Blue Book Production ECR Conference Operating Board (23/11) Holiday Period Project Management Completed Work stream conference calls 10/0409/0513/0630/0329/0828/0924/1029/11 20/03 The Project Team have met once a month for progress reports, testimonials, and work stream break-out sessions Each work stream also has a monthly conference call to discuss progress

7 The Blue Book is on schedule, with the subject matter receiving significant interest at the Annual Conference Basic Assessment Tool Methodology KPIs Shopper Research (inclusion of) Industry-wide “size of the prize” Solution Assessment Tool In-Store Execution Functional Requirements Guiding Principles 0% 100% 80% 50% 95% 60% 50% 0% Guiding Principles Business Case Functional Requirements Work Stream Deliverables ECR Conference - Stockholm SRP Break-Out session: Role-Play, Presentations & Panel Questions Full Room (235 attendees) Very Positive Feedback (Excellent: 46, Up to my expectations: 82, Below average: 10, Very poor: 1) = 8.1/10 Excellent progress attributed to aggressive targets, good attendance & participation in work streams, and support provided by Accenture in content creation & driving the project forward.

8 Agreed structure of the final Blue Book deliverable Foreword Introduction Executive Summary Contributors & Acknowledgements Guiding Principles Business Case Functional Requirements and Best Practice for Execution Conclusions & Next Steps Appendices & Glossary 6 PagesCo-Chairs 6-7 PagesWork stream 15 PagesWork stream 15 Pages Co-Chairs1-2 Pages Project TeamAs necessary Work stream EstimateResponsibility

9 All Work Streams are leveraging existing material, where available, in the creation of their output 1)Always of Value to the Shopper, Retailer and Manufacturer 2)Compliance with Environmental Legislation and Public Policy Concerns 3)Avoid Fragmentation and Complexity 4)Maintain Brand Identity 5)Measure Implementation 6)Requirement of Long-term Commitment from Retailer and Manufacturer 7)Compliance with total Supply Chain Efficiency Principles Headline Guiding Principles ASCS ECR Nationals ECR Europe Project Team Industry SRP PROJECT The creation of the Guiding Principles combined input from a variety of sources

10 Discussion Points Alignment & Visibility of ECR Nationals –France & Spain ECR Blue Books published. Netherlands and Belgium working Groups, & Nordic Packaging standards –No prior visibility of content or opportunity to ensure alignment “Size of the Prize” –It will not be possible to provide an Industry evaluation of the opportunity when it is acknowledged that SRP is not always Best Practice Hot Spots How to communicate the Blue Book content on SRP? –Plenary Presentation in Milan with Case Studies –Possible interim ECR forum (Milan will be some time after Blue Book created) –Inclusion in ECR Global Scorecard –ICI Learning Forum –ECR Nationals members ‘mailshot’ –Press Release in Trade publications Communication

11 Next Steps Business Case Work Stream –Finalise Methodology and Pilot with volunteer organisations –Continue to develop Business Case calculation tool –Finalise KPIs –Incorporate IGD Shopper Research where relevant Functional Requirements Work Stream –Adapt IGD Assessment Tool to be in line with ECR Europe content –Finalise In-Store execution recommendations All –Ratify Draft version of Blue Book content Work Streams Blue Book Content –Create Foreword, Introduction & Executive Summary, Conclusions & Next Steps –Align work stream deliverables –Compile Appendix & References Communication –Agree suitable communication opportunities and channels Project Leadership