2. Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain Costs Reduce Overall Inventory Customer Demand Driven Replenishment

3. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

4. 4 Supply Chain Big Bets Customer Demand Driven Replenishment  Business Benefits (Source: Retail Solutions, Inc)  12% To 27% Lower DC Inventory  21% To 77% Decrease In DC Out Of Stocks  20% Decrease In Store Level Out Of Stocks  Delhaize Piloted Program With Another CPG Vendor  Forecast Accuracy Improved By 30%  Met Or Exceeded All Goals  Estimated Inventory Reduction 30%  Predecessor - Rapid Replenishment  Upside Includes Increases In Stock, Reduces Reclaim, Etc.

5. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

6. Case Study Defined PepsiCo Plant PepsiCo DC Food Lion Store Vendor Managed Inventory (VMI) Food Lion Warehouse Standard Vendor Managed Inventory (VMI) Reduce Supply Chain Costs by 0.5% Increase Store In- Stock Rates by 0.75% Decrease Food Lion overall Inventory by 5% Pilot Goals - Penetrate to Store Pilot Upstream Supply Chain Customer Demand Driven Replenishment

7. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

8. Customer Demand Driven Replenishment Pre-Pilot Conventional VMI Customer Demand Driven Replenishment DC Inventory Forecast Safety Stock Headlines : DC Inventory Forecast Safety Stock POS Store Inventory DC Warehouse Withdrawals DC Warehouse Withdrawals Customer Demand Driven Replenishment (CDDR) DC Customer Replenishment Sales Growth Inventory Efficiency Enhance replenishment Enhance promo forecast Pilot Goals

9. Point Of Sale Impact Pepsi DC Food Lion Store Vendor Managed Inventory Food Lion Warehouse POS identifies trends 3 days earlier Pilot Accelerates customer demand visibility to the manufacturer Enables reaction within the promotional period Increases accuracy of demand signal Store to DC every 2 to 4 daysDC to DC 1 day later Headlines:

10. POS Promotional Sales Realization Day 1 50% Day: Planned Delivery Actual Delivery Day 4 Day 7 Day 10 Day 13 Day 16 Day 19 Total 30% 20% Event POS Sales Exceeding Original Projection Headlines: Sales Growth through higher in-stock Customer Demand Driven Replenishment based of POS POS data yields information to support decisions 100% 110% +10%

11. POS Inventory Efficiency Headlines: POS data yields information to support decisions Inventory Efficiency Day 1 50% Day: Planned Delivery Actual Delivery Day 4 Day 7 Day 10 Day 13 Day 16 Day 19 Total 30%20% 15% Event POS Sales Below Original Projection 100% 70% 5%

12. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

13. Store Inventory Effect VMI Planner Food Lion Store Vendor Managed Inventory Food Lion Warehouse CDDR 2 days 4 days Promo Quantity Promo Quantity 2 days VMI Option CDDR Option Partial Decision Excess Inventory Complete Decision Balanced Network Inventory Upcoming Promotion

14. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

15. Customer Demand Driven Replenishment Pre-Pilot Conventional VMI Customer Demand Driven Replenishment DC Inventory Forecast Safety Stock Headlines : DC Inventory Forecast Safety Stock POS Store Inventory DC Warehouse Withdrawals DC Warehouse Withdrawals Customer Demand Driven Replenishment (CDDR) DC Customer Replenishment Sales Growth Inventory Efficiency Enhance replenishment Enhance promo forecast Pilot Goals

16. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

17. Pilot Inventory Tracking 32.24% April May June

18. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicator Tracking What’s Next

19. Pilot Results by Month Store In Stock Point of Sale 0.9% 20.9%

20. Pilot Results by Month Unsaleables DC on Hand 32.2% 49.9%

21. Agenda Supply Chain Big Bets Case Study Defined Point Of Sale Impact Store Inventory Impact Customer Demand Driven Replenishment Pilot Inventory Tracking Key Performance Indicators Tracking What’s Next

22. Collaboration Demand Intelligence Jointly Capture Sales Improve Inventory Efficiency Increase Collaboration Anticipate Customer Demand Build Efficiencies Future Goals Proof of Concept Automation Expansion Q1 2011 Brainstorm VMI Enhancements Manufacturer/Retailer jointly devise strategy Q1 2012 Apply automation & enable EDI 830 Enhance Processes Perfect on Food Lion Gatorade lanes Q2, Q3 & Q4 2011 Manually perform Customer Demand Driven Replenishment Enhance Processes Measure & Publish Results Q2 2012 Expand automated processes Roll Out to all Delhaize lanes Measure & Publish Results Blue Printing