1. INNOVATION IN THE BEVERAGE INDUSTRY GLOBAL WATER & BEVERAGE TECHNOLOGY CONGRESS - DUBAI MARIAM JARRAR CONSULTANT, MIDDLE EAST, NORTH AFRICA AND TURKEY 2011 NOVEMBER

2. © Euromonitor International 2 WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A INNOVATION IN THE BEVERAGE INDUSTRY OBJECTIVES

3. © Euromonitor International 3  A global strategic market intelligence source for almost 40 years  Helping clients make informed decisions  Consumer-focused: industries, countries, consumers  Annually-updated syndicated research in 80 countries  Customised ad-hoc projects conducted globally in virtually every market  800+ analysts in 80 countries  Regional research hubs and industry specialist support teams WHO IS EUROMONITOR INTERNATIONAL London Chicago Singapore Shanghai Dubai Vilnius Cape Town Santiago Tokyo Sydney Bangalore INNOVATION IN THE BEVERAGE INDUSTRY

4. © Euromonitor International 4 WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A INNOVATION IN THE BEVERAGE INDUSTRY

5. © Euromonitor International 5 GLOBAL SALES BY REGION AND BEVERAGE TYPE INNOVATION IN THE BEVERAGE INDUSTRY 2010 Off-trade volume mn litres 445 bn litres

6. © Euromonitor International 6 HOW MUCH DID WE DRINK IN 2010? INNOVATION IN THE BEVERAGE INDUSTRY In 2010, 445 billion litres of soft drinks were sold globally which equates to 65 litres per head! Off trade volume 2010 litres per capita

7. © Euromonitor International 7 WHAT DO WE DRINK MOST, WHERE IN THE WORLD? INNOVATION IN THE BEVERAGE INDUSTRY Off trade volume 2010 litres per capita WorldAsia PacificAustralasiaE EuropeL AmericaMENAN AmericaW Europe Bottled Water 26.0 12.8 19.9 39.1 56.5 9.3 77.8 92.3 Carbonates 23.0 5.9 74.2 32.9 72.7 13.0 114.7 49.3 Concentrates 0.4 0.1 5.2 0.5 1.1 0.4 - 1.8 Fruit/Vegetable Juice 8.5 5.0 30.3 18.8 9.6 3.3 33.2 22.8 RTD Coffee 0.6 1.0 5.6 - - - 0.6 0.2 RTD Tea 4.1 5.6 1.2 2.7 0.7 0.1 7.7 4.8 Sports and Energy Drinks 2.0 1.1 7.5 0.9 1.6 0.2 17.4 3.5 Asian Speciality Drinks 3.0 5.3

8. © Euromonitor International 8 WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A INNOVATION IN THE BEVERAGE INDUSTRY

9. © Euromonitor International 9 WHAT DRIVES INNOVATION GLOBALLY? INNOVATION IN THE BEVERAGE INDUSTRY Drivers for Innovation Economising Premiumisation Packaging Sustainability Health and Wellness

10. © Euromonitor International 10 HEALTH-POSITIONED BEVERAGE TREND A DOUBLE-EDGED SWORD INNOVATION IN THE BEVERAGE INDUSTRY Consumer interest in health and well-being is creating strong volume growth opportunities  Al Ain: vitamin enhanced water (Wow)  The Berry Company, UK imported  Masafi: focusing on 100% juice  Powerhorse: energy Cola drink

11. © Euromonitor International 11 FUNCTIONAL DRINKS OUTPACE GLOBAL SOFT DRINKS INNOVATION IN THE BEVERAGE INDUSTRY Off trade volume growth 2010-2015 Percentage Growth

12. © Euromonitor International 12 ECONOMISING, VALUE FOR MONEY INNOVATION IN THE BEVERAGE INDUSTRY Global private label share is on the rise

13. © Euromonitor International 13 ECONOMISING, VALUE FOR MONEY INNOVATION IN THE BEVERAGE INDUSTRY Argentina 3-litre HDPE bottle in juice drinks February 2009 Citric Chey’s launch follows a successful 3-litre launch in 100% juice and serves to take share from the liquid carton’s monopoly position. Canada 3.8-litre PET bottle launched in juices August 2010 Fruitopia is a well-known brand from The Coca-Cola Co and considered to do well following a trend in Canada towards juices retailed in economically-priced, larger bottle sizes. Bulk size beverage launches appeal to cost-conscious

14. © Euromonitor International 14 INNOVATION – FINDING A NICHE IN THE MARKET INNOVATION IN THE BEVERAGE INDUSTRY Identifying the emerging demographic in the UAE Date milk smoothie Barakat Bottled water Al Ain

15. © Euromonitor International 15 INNOVATION – VISUAL DIFFERENTIATION INNOVATION IN THE BEVERAGE INDUSTRY Building strong brand identity Ingredient enhancement Standout designs & use of colour Hungary be! BEAUTIFUL Innovative Beverages Kft Functional bottled water 2010 Poland Gorska Natura Pepsi-Cola General Bottlers Functional bottled water 2010

16. © Euromonitor International 16 WHO IS EUROMONITOR INTERNATIONAL THE GLOBAL BEVERAGE INDUSTRY GLOBAL DRIVERS FOR INNOVATION KEY LEARNINGS Q & A INNOVATION IN THE BEVERAGE INDUSTRY

17. © Euromonitor International 17 INNOVATION IN THE BEVERAGE INDUSTRY 2010-2015 Off-trade volume growth FUTURE GROWTH PROSPECTS Percentage Growth

18. © Euromonitor International 18 INNOVATION IN THE BEVERAGE INDUSTRY KEY LEARNINGS  Shift towards health and wellness  Emphasise unique ingredients  Look for a niche in the market: find new usage occasions

19. THANK YOU FOR LISTENING ANY QUESTIONS? Mariam Jarrar Consultant, Middle East, North Africa and Turkey mariam.jarrar@euromonitor.com Euromonitor International - Dubai F- Wing Office 606-607 Dubai Silicon Oasis (HQ)