Customer – Supplier

Relationship

Razvan Tudor

Coca-Cola Hellenic Romania

Romanian Modern Retail is estimated to 33.4 Billion euroin 2009

22%27%

33%

39%42%

48%

59%

70%

2009Est200820072006

Source: Planet Retail

The CCH market development curve becomes steeper by 2012

MODERN TRADE DEVELOPMENT

Percentage of Organised Modern Trade by Market

ExplorationExploration ConcentrationConcentrationPenetrationPenetration MaturationMaturation DevelopedDeveloped

CO

NC

EN

TR

AT

ION

Top 5

Reta

ilers

Share

of G

rocery

Sale

s

UkraineBulgaria

RussiaTurkey

Romania Greece

Czech Republic

Poland

Austria

Slovenia

Italy

HungarySlovakia

SwitzerlandLithuania Ireland

Latvia

Estonia

10%

20%

30%

40%

50%

60%

70%

80%

90%

20% 30% 40% 50% 60% 70% 80% 90% 100%

Value of Top5EUR10Billion

Source: MVI database

FYE 2012

Romania – Future Trends

Economic environment will influence 2009 everybody's performance

• Growth will slow drastically to 2.6% in 2009 under the

impact of the global economic crisis…

• …with a downside risk that growth could be even slower,

and a strong chance that Romania could fall into outright

recession

• Consumer spending, which grew 11.6% in 2008,

decelerated already to 6.8% in November and will drop

to just 1.7% in 2009

• And, again, there is significant risk on the downside

• As elsewhere, there will be some consolation from a

lower inflation rate, which will drop from 7.9% to 5.8%

and perhaps lower

Source: The Economist

Modern Trade Market Growth 2008 Vs PY in Transactions

Source: MEMRB weekly scanning data

All categories show a clear decreasing trend

-40%

10%

60%

110%

160%

210%

W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52

CSDWaterJuicesTea

-40%

10%

60%

110%

160%

210%

W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52

CSDWaterJuicesTea

• Accelerate

profitable

growth

• Supply chain

improvement

• Differentiation!

• Expand the size

and value of the

beverage

category and capture the

growth!

Supplier AgendaCustomer Agenda

We will work

TOGETHERto maximize shopper value, one perfect store at a time

“The Promise”

Product

Price

Customer Service

Supply Chain

Price

Service

Product

Multifunctional Sales Team

Salesman

AdministrativeEfficiency

Logistic Efficiency

SalesEfficiency

…..… a new mindset

We need to reset our mind and to assess our current level of relationship

+

We have a good base to start

� Satisfaction is fairly

positive among key account contacts.

� Relationship among key customers

is very positive.

� Improvement of delivery system

� Better/clearer invoicing

� More marketing events

Recommendations to

improve relationship

Source

4 5 93 4

13 9

1820

28

3936

5053

56

4345

182312

5 5

Coca-Cola Pepsi Cola European Drinks Romaqua La Festa/Maspex

Overall Relationship With Beverage Suppliers

�

�

�

Collaboration

Re

ven

ue w

ith

in N

AB

s

Target

Leaders

Strategic

Partners

Transactional Target

Partners

There are four types of relationship level based on business importance and degree of collaboration

Four pillars should be consider in each and every plan we build together

Trade Marketing

Business Financials Supply Chain

In Outlet Execution

Target

Leaders

Target

Leaders

Strategic

Partners

Strategic

Partners

TransactionalTransactional Target

Partners

Target

Partners

Trade Marketing is about getting into

consumers mind

• Insights (Market, Consumer,

Shopper)

Target

Leaders

Target

Leaders

Strategic

Partners

Strategic

Partners

TransactionalTransactional Target

Partners

Target

Partners

• “Think Occasion” - OBOM

• Design Tailored Promo

Business Financials should be positive for all

constituents of the business

Target

Leaders

Target

Leaders

Strategic

Partners

Strategic

Partners

TransactionalTransactional Target

Partners

Target

Partners

• Return on Investments

• Cash Margin Management

• Credit Performance

Supply Chain should deliver the best service at the lowest cost possible

Target

Leaders

Target

Leaders

Strategic

Partners

Strategic

Partners

TransactionalTransactional Target

Partners

Target

Partners

• Forecasting

• Service Level

• Cost to serve

SCORE by MODULE

47%

60%

86%

33%

96%

75%

75%

16%0%

0%

13%

35%

15%

50%

0%

20%

40%

60%

80%

100%

Collaboration

Stock Mgmt

Order Mgmt

MasterdataEDI

Product Flow

Sustainability

Best in Class

Desired status 2009

Current status

In Outlet Execution Target

Leaders

Target

Leaders

Strategic

Partners

Strategic

Partners

TransactionalTransactional Target

Partners

Target

Partners

• Promo Trade Plan

• Store Layout Implementation

• Excellence

Benefits for Collaborative/Planning SellingBenefits for Collaborative/Planning Selling

– Revenue increase from incremental category growth (same

share)

– Revenue increase from incremental category share

– Net sales/margin increase from improved

pricing/promotional policies

– Improved understanding of partners needs and

behaviors

– Rationalization of activation strategy as a means to

improve customer-supplier relationship

– Reenergized top-line growth arising from precisely

meeting individual shopper and consumer needs in

every outlet

Economic

impact

Economic

impact

Strategic impactStrategic impact

• Accelerate

profitable

growth

• Supply chain

improvement

• Differentiation!

• Expand the size

and value of the

beverage

category and capture the

growth!

Supplier AgendaCustomer Agenda

We will work

TOGETHERto maximize shopper value, one perfect store at a time

“The Promise”

Relationship is Executing to Lead