Compass Look of Success 2011 -

• Launched: May 2011

• Scope: ~1,800 foodservice accounts

• Survey: Questions on food, beverages, equipment, pricing, shelf space – collected on-line, enable results analysis

• Administered by: Independent, PBC & PepsiCo Model Market sales teams

• Objective: Assess, then recommend and sell incremental food and beverage product and equipment

Goal: Drive sustainable growth by having the right products in the right place with the right merchandising with internal and external accountability

Results . . .

Equipment Placed: 1,480 Locations Visited ~ 400 coolers / merchandising elements

Since program launch, LOS locations > 5,000 beverage SKUs growing at 9% vs 1% for total Food Sector sold in, including for PBC

0 Round II of the Compass “Look of Success” will expand, improve and build on initial effort

The learnings . . . • It is NOT a re-set program • Process forces interaction with operator ensured by top down support • The survey drives a robust conversation with the operator • The results allow for internal and external accountability • Delivers Category Management information

In the second iteration of this effort a number of internal changes are required to maximize impact What didn’t work well . . . Planned Changes . . .

• Adapt current Model Market data entry • Lengthy and somewhat awkward survey process for LOS II process • Utilize STAR2 data linked with COF#s • Information on target locations vetted against Compass data • Lack of alignment and integration of • Ensure alignment with LTs of MM/PBC/FL process within PBC Field efforts and Trop DSD as part of AOP process • No dedicated resource to manage • ID and employ temporary PEP resource to process and data manage data • Confusion on location coverage • Re-align MM, Direct and Pre-Sell coverage to optimize impact based on account size

1 Round II Will Be Targeted

While continuing to audit to drive accountability and collect category management information, specific objectives will be established by Key Brands

Each objective is will be grounded in the idea of meeting consumer needs and driving sector volume and revenue

Frito-Lay/Trop/Naked/Quaker Pepsi

• Close distribution gaps on top nine • Ensure optimization of cooler space and Frito-Lay products (currently all Food brand utilization Sectors have 73% distribution of Lay’s • Pepsi Max Classic) • Diet Dew • Promote bundles and combos • Ambient • Ensure optimum rack placement to • Optimize Fountain Flavors coincide with traffic patterns and meal • Promote bundles and combos offer • Optimize flavors

Goal: Drive sustainable growth by having the right products in the right place with the right merchandising with internal and external accountability

2 LOS II Timeline

2012 LOS Timeline

Data Base Execute LOS II March 30th end date Sector Follow Redesign and Up testing. Sector Sector Roll Out and PBC & MM alignment. PBC/FL/MM Roll Out 11/15 Roll out 1-15 – 12/15

October November December January February March April May June July

LOS and MM intro to Jane Frito-Lay Targets non Buckley in person and FIM MM/KO exclusive locations team via webinar

Critical To Dos

• Align on key objectives with Food Buy • Present to Sectors and gain alignment • Complete revised data entry point Appendix

Sample Data Output LOS data allows us to drill into the detail, helping explain account-level questions

Example: Where was Pepsi Max not recommended? Why?

Filter on appropriate fields

Understand reasoning

We can see the accounts where Pepsi Max is legitimately missing and exactly where the opportunities are to close the voids

5 LOS allows us to see pricing across food sectors; avg. 20oz CSD retail price is $1.39

TOTAL COMPASS LOCATIONS BREAKOUT BY SECTOR # of Accounts 1,125 RESTAURANT ASSOCIATES $1.49 Average Price $1.39 EUREST $1.35 Median Price $1.39 CHARTWELLS $1.49 Range, Max $2.50 MORRISON $1.50 Range, Min $0.93 FLIK $1.38 Most Common $1.49 CANTEEN/VENDING $1.31 OTHER $1.36

Total Compass - Frequency of CSD 20oz Prices

300 250 200 150

100 # # Locations 50 0 < $1.00 $1.00 - $1.10 - $1.20 - $1.30 - $1.40 - $1.50 - $1.60 - $1.70 - > $2.00 $1.09 $1.19 $1.29 $1.39 $1.49 $1.59 $1.69 $2.00 Price Ranges

6 Brand Voids: CSDs (20 oz.) by Sector

CANTEEN / RESTAURANT CHARTWELLS EUREST FLIK LACKMANN MORRISON OTHER TOTAL VENDING ASSOCIATES Total Number of Accounts 30 68 872 139 6 293 42 3 1453

CSD_WLD_CHRY Available 9 29 323 46 1 117 11 1 537 % Available 30% 43% 37% 33% 17% 40% 26% 33% 37% Accounts Missing 21 39 549 93 5 176 31 2 916

Recommended 5 15 113 8 0 36 14 0 191 Approved 0 1 25 2 0 10 4 0 42 Conversion Rate 0% 7% 22% 25% 28% 29% 22%

CSD_DIET_PEP_MAX Available 8 27 411 60 2 126 11 1 646 % Available 27% 40% 47% 43% 33% 43% 26% 33% 44% Accounts Missing 22 41 461 79 4 167 31 2 807

Recommended 10 15 218 21 2 71 14 0 351 Approved 5 2 106 11 1 19 3 0 147 Conversion Rate 50% 13% 49% 52% 50% 27% 21% 42%

CSD_PEPSI_THROWBACK Available 2 15 119 19 0 53 5 0 213 % Available 7% 22% 14% 14% 0% 18% 12% 0% 15% Accounts Missing 28 53 753 120 6 240 37 3 1240

Recommended 5 17 180 26 1 56 14 0 299 Approved 0 1 53 14 0 9 7 0 84 Conversion Rate 0% 6% 29% 54% 0% 16% 50% 28%

7 Data collected on Frito Lay highlights gaps in product penetration across sectors

CANTEEN / RESTAURANT CHARTWELLS EUREST FLIK MORRISON OTHER TOTAL VENDING ASSOCIATES Total Number of Accounts 12 57 755 89 219 36 6 1174

Lay's Classic % Available 100% 89% 95% 96% 93% 94% 100% 95%

Lay's Classic BBQ % Available 67% 84% 66% 67% 68% 69% 100% 67%

Doritos Nacho Cheese % Available 8% 11% 8% 9% 7% 14% 0% 8%

Doritos Cool Ranch % Available 17% 12% 12% 15% 9% 14% 17% 12%

Fritos Original % Available 58% 79% 62% 42% 68% 53% 67% 62%

Cheetos Crunchy % Available 50% 63% 55% 28% 63% 31% 83% 54%

Ruffles Cheddar Sour Cream % Available 17% 32% 36% 20% 32% 25% 33% 34%

Baked Lay's Regular % Available 67% 54% 63% 63% 77% 72% 67% 66%

Sunchips Harvest Cheddar % Available 25% 16% 8% 11% 10% 14% 33% 10% Notes: Other includes Lackmann, Thompson. Includes surveyed accounts with Lays Original and/or at least 3 FL Core Products

We should see improvement in these numbers as PepsiCo foodservice teams revisit these targeted accounts using the Account Selling Tool 8 …and we can see the same data for and Quaker as well

CANTEEN / RESTAURANT CHARTWELLS EUREST FLIK MORRISON OTHER TOTAL VENDING ASSOCIATES Total Number of Accounts 25 60 833 114 263 40 8 1343

Quaker Bulk Oatmeal % Available 36% 58% 63% 54% 56% 55% 63% 60%

Quaker Instant % Available 24% 32% 21% 20% 27% 25% 38% 23%

Sabra Grab 'n' Go % Available 4% 17% 18% 17% 17% 18% 25% 18%

Notes: •Other includes Lackmann, Bon Appetit, Thompson. •Includes accounts that already have available at least one of the following: *Pepsi 20 oz. CSD *Lay's Classic *At least 3 Core FL Products *At least one of: Quaker Bulk, Quaker Instant, Sabra Grab 'n' Go

We should see improvement in these numbers as PepsiCo foodservice teams revisit these targeted accounts using the Account Selling Tool 9