1. NOVEMBER 8, 2011 FIAE Annual Convention CONFIDENTIAL

2. Beverage Industry Issues Facing tax fights at all levels of government Denigration of product category – CDC grants, public health activists Bottle bills and other environmental issues

3. 2012 Government Affairs Outlook TX OK AR LA MSAL GA FL CA NV OR WA MT ID WY UT CO NM AZ KS NE SD ND MN WI IA MO IL MI IN VA KY OH WV PA DE NY ME VT NH NJ CT RI Boston, MA TN SC NC MD HIAK Tier 1 State Tier 2 State Seattle, WA San Francisco, CA Philadelphia, PA New York, NY Portland, OR Tier 1 City San Jose, CA Sacramento, CA As of Sept 30, 2011 Los Angeles, CA Chicago, IL MA

4. Communities receiving Stimulus Act Money for “obesity prevention” Boston Public Health Dept County of Los Angeles Dept. of Public Health Fund for Public Health in New York, Inc. Philadelphia Dept of Public Health Seattle & King County Dept. of Public Health CO Dept of Health NY Dept of Health Children’s Memorial Hospital, Chicago Santa Clara County Public Health Department Cook County Department of Public Health/Public Institute of Metro Chicago Minnesota Dept of Health Miami-Dade County Health Department Jefferson County Dept of Health, AL Pima County Health Dept., AZ San Antonio Metro Health District Tri-County Health Dept, CO SD Health & Human Services Agency Ham. Co General Health District, OH Lou/Jeff. Co. Metro Government, KY Multnomah Co. Health Dept. Chronic Disease Prevention Program, OR Metro Public Health Department, TN Douglas Co. Health Dept., NE DeKalb County Board of Health, Atlanta Pinellas County Health Department, FL Southern Nevada Health District Chronic Disease Prevention Program South Carolina Department of Health and Environmental Control Hawaii Dept of Public Health Maine Dept of Health and Human Services WV Department of Health and Human Resources WI Dept of Health Services (also includes Wood Co, WI Indiana State Department of Health The Pueblo of Jemez Health and Human Services Dept, NM Cherokee Nation Health Service Group, OK Arkansas Department of Health Appalachian District Health District; Pitt County Health Department, NC Arizona Dept. of Health Services New Mexico Dept. of Health

5. Communities receiving Health Care Act Money for “obesity prevention” Broward Regional Health Planning Council (Florida) City of Austin Health & Human Services Department (Texas County of San Diego Health and Human Services Agency (California) Denver Health and Hospital Authority (Colorado) Douglas County Health Department (Nebraska) Hennepin County Human Services and Public Health Department (Minnesota) Illinois Department of Public Health Iowa Department of Public Health Los Angeles County Department of Public Health (California) Louisville Metro Department of Public Health and Wellness (Kentucky) Maine Department of Health and Human Services/Maine CDC Maryland Department of Health and Mental Hygiene Massachusetts Department of Public Health (to serve state minus large counties) Massachusetts Department of Public Health (to serve Middlesex County) Mid-America Regional Council Community Services Corporation (Missouri) Minnesota Department of Health Montana Department of Public Health, Human Services New Mexico Department of Health North Carolina Division of Public Health Oklahoma City-County Health Department (Oklahoma) Philadelphia Department of Public Health (Pennsylvania) Public Health Institute (to serve state of California minus large counties) San Francisco Department of Public Health (California) Sault Ste Marie Tribe of Chippewa Indians (Michigan) South Carolina Department of Health and Environmental Control South Dakota Department of Health Southeast Alaska Regional Health Consortium (Alaska) Tacoma-Pierce County Health Department (Washington) Texas Department of State Health Services The Fund for Public Health in New York (New York) University Health Services, University of Wisconsin- Madison (Wisconsin) University of Rochester Medical Center (New York) Vermont Department of Health Washington State Department of Health West Virginia Bureau for Public Health

6. Goal: Keep Winning the Fights Engage everywhere - ballot initiatives, legislative fights, regulatory fights Build coalitions where new threats appear and maintain the coalitions we have Continue to hire local talent where required Develop stronger relationships at every level  USCM Obesity Prevention Grants, State Association Grants

7. 2011 Bottle Bill Threats TX OK AR LA MS AL GA FL CA NV OR WA MT ID WY UT CO NM AZ KS NE SD ND MN WI IA MO IL MI IN VA KY OH WV PA DE NY ME VT NH NJ CT RI MA TN SC NC MD HI AK Bottle bill expansion/ handling fee proposal New bottle bill program proposal Opportunity for bottle bill repeal/ replacement September, 2011 7

8. Massachusetts 9 Bottle Bill Expansion Background  MA PIRG and environmental groups have been recruiting Mayors and elected officials to support expansion.  Using poll showing 70% + of public agrees with expansion.  Beverage industry launched “Real Recycling for MA” coalition. Ballot Initiative  AG certified PIRG’s petition to expand BB and increase handling fee for 2012 ballot on Sep. 7  PIRG has dropped the initiative Legislature  PIRG and environment groups continue to push for expansion in legislature

9. Real Recycling for Massachusetts www.realrecyclingmass.com

10. Real Recycling for Massachusetts “Real Recycling for Massachusetts is a coalition of citizens, businesses, and community organizations working towards common sense when it comes to recycling. We’re working to improve existing recycling infrastructure to give everyone better access to recycling in more places.” Launched in July 2011 Recruiting grocers, retailers, chamber of commerce, elected officials, and other interested parties – 40 + members

11. 2012 Outlook Stateline, November 4: 'Bottle bills' draw renewed interest in legislatures Serious threats remain in the 10 deposit states on expansion, handling fee, and escheats issues Continue to monitor EPR issues  VT – Stakeholders focused on incremental change, deal with fallout from flood  Want to be at the table, not on the menu

12. Contact Genna Gent Vice President, State & Local Government Affairs American Beverage Association 202-463-6707 ggent@ameribev.org