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Dear Colleagues Welcome to the Second Nestlé Professional AOA

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Dear Colleagues Welcome to the Second Nestlé Professional AOA JUNE AOA 2010 Quarterly Nestlé Professional achieves business milestone in debut partnership with Nando's Dear Colleagues CWAR Launch of Nescafé Ginger&Spice GCR Welcome to the second Nestlé Professional AOA Quarterly Unique Carnation, Diverse Applications newsletter 2010. IndoChina Maggi Liquid Seasoning - the icon of We have reached our goals for the first half of 2010. Our Chinese New Year RIG and OG stand at all time highs and I hope we will be Israel Winning the Arab sector able to carry on this performance into the second half of 2010. Also, the profitability is in line with expectations. Japan Beverage Business Department formed Beauty Bar adds value to customers In this issue, you will find some interesting work done in Korea different markets in AOA which can inspire us for the coming Special Agent success story months. If you come across good ideas, please speak to Cold beverage success in local chains your colleagues to use the knowledge to accelerate growth in the next months. In 2009, we MAGHREB Football fans are spoilt in coffee shops were able to get back on our growth path after a difficult start. Therefore, I feel that the second Channel and key account workshops half of 2010 will be more challenging and we have to put our focus on 2011. Continued growth Middle East and acceleration are needed to succeed in today's competitive world. NP AOA will have to Relaunch of Nescafé Red Mug continue to deliver high growth with continued improvement of EBIT. MYSG Maximising the intelligence of Kalina Launch of Maggi Hainanese Chicken Rice This year, we signed a regional agreement with ISS and just recently, we established business Resorts World@Sentosa, Singapore relationship with Nando’s, a South African chain restaurant, to be the Global Strategic Coffee Sjora launch in Singapore Solution provider. This is a very exciting regional opportunity and many people, from the Global NEAR team and Beverage Centre with the NP AOA Regional and market teams, were involved. I NP NEAR participates in HOST exhibition would like to express my gratitude to them and let us successfully build the Nando’s partnership Oceania TAG conference to kick off growth across AOA. Certainly, this will help us find more opportunities to work with customers across platforms our vast and diverse geographic region. Getting the best end of Campbell's Nescafé LiquiFresh continues to win new businesses I hope you will continue to enjoy reading our newsletter. If you have any suggestions on how Philippines to make it more appealing or inspirational, please advise me or Ai-Khuan, who has been a Relaunch of Nescafé in BPO and offices great support to me in publishing this document quarterly. NP joins first Creating Shared Value Forum NP Global CFO visits Partnering Enderun College to build capabilities The next issue is planned for end September 2010. Thank you for your continued support and Visit to SOS Children's Village new successful stories to build our next newsletter. SAR Culinary Art 2010 Thank you also for the great results for the first two quarters in 2010 and for the tremendous Turkey work you and your teams have put in to deliver them. McDonald's serving McFlurry with Nestlé Lion Mix New advisory chefs Good luck and every success to all NP AOA staff. ZAR Sponsoring South African Chef's Village With Warm Regards at Hostex Launch of the Maggi Premium sauce range 1 Nestlé Professional achieves business milestone in debut partnership with Nando's Nestlé Professional has received the "go ahead" to implement the Nescafé Milano Café Style Beverages Solution and its Beverage Acceleration Programme (BAP) as the Global Strategic Coffee Solution of Choice at Nando's restaurants. Nando's is a fast-casual and quick-service restaurant (QSR) group originating in South Africa (SA), with over 1,100 outlets in 34 countries. It is home to the Legendary Flame Grilled Peri Peri Chicken. The agreement to implement the Nescafé Milano Solution began on 1 June 2010, with a 90-day test in 20 high volume sites across SA, to prove the concept. In addition, the Nescafé Milano Café Style Beverages Solution will also be implemented in 55 stores in countries throughout the AOA region. Should the 90-day trial prove successful, an additional 250 stores will be implemented in SA and the solution will be introduced into remaining stores in various countries across the AOA region. Lastly, the concept will be introduced as from Quarter 4, 2010, in the key markets of Oceania (270 stores), the United Kingdom (225 Stores) and North America (35 Stores), in the context of a 5-year global agreement. The New Nescafé Milano Solution Nescafé Milano is a professional dispensed coffee solution that delivers a variety of Café Style Beverages to Out-of-Home (OOH) commercial restaurant customers. The solution was developed by the R&D team at the Nestlé Professional Beverage Centre, working closely with the PTC in Orbe. Milano leverages Nestlé’s patented turbo-chamber dispensing technology to deliver perfect crema on an espresso, the perfect milk froth on a capuccino as well as beautifully layered lattes. The solution also leverages our manufacturing know-how to produce new mid-yield extraction soluble coffee, improving end-cup quality. 2 AOA Quarterly June 2010 Milano reduces restaurant operational complexity by dispensing high quality café style beverages consistently, time and again. It provides operators with the opportunity to customise coffee beverages on the spot. As a result, restaurateurs are trading up to capture the added value consumers are willing to pay for a premium cup of coffee. The solution creates competitive gaps generating two revenue streams: the sale of product and the sale of an exclusive fully integrated service programme. The Nestlé Professional BAP delivers a range of value-added services with the express aim of enabling customers to capture and accelerate incremental same-store sales growth. How it all began After a brief initial contact with the Nando's senior management in November 2009, a follow up meeting was arranged at the Nestlé Professional Beverage Centre in February 2010. A team from the Nestlé Professional Beverages Commercial Unit at the Centre, the AOA region and the SA market decided that even though Nando's was aggressively seeking roast and ground coffee, the time was right for Nestlé Professional to introduce the new Nescafé Milano Solution and its BAP. On 6 and 7 April 2010, the team, presented Nando's with Nestlé Professional proprietary industry insights, focusing on unique accelerated growth opportunities in coffee beverages. This was followed by a compelling pitch on how the Nescafé Milano Solution and its BAP could deliver against key industry drivers to accelerate Nando's entry into the premium coffee beverages arena. The group was then invited to experience a creative coffee beverages menu developed specially for Nando's, addressing their consumer's specific coffee needs. The comprehensive presentation was attended by the entire Nando's management team including their Chairman, CEO, their executive board and senior personnel. The Nando's team were inspired by the new Nescafé Milano solution and its BAP, quickly understanding its value, making it their Global Coffee Solution of Choice. In less than 60 days since receiving the green light, Nestlé Professional has worked tirelessly to develop, refine and implement the new Nescafé Milano and its BAP. The system is now installed, commissioned and launched at 20 high volume Nando's sites in SA as part of the agreed 90-day test, just in time for the 2010 FIFA World Cup. Marc Caira, Chief Executive Officer at Nestlé Professional said, "This initiative is a truly exciting opportunity for our business. We have created a lighthouse to guide our markets into the future - a clear example of what can be accomplished for all to see". Michiel Kernkamp, Head of Global Branded Beverages at Nestlé Professional added, "The Nando's relationship has enabled us to work hand in hand with a customer to validate the BAP, a premium 10-point fully integrated service package we sell alongside our products. This now provides our markets with a clear way forward on their journey to becoming a valued driven service partner". The first steps - The South African trial The Nestlé Professional team in SA worked to very tight time-lines. In fact, from the day the dispensing equipment and products arrived in the market, the team had exactly one week to deliver, install, train and commission the new Nescafé Milano systems at 20 participating Nando's locations in Johannesburg, 3 AOA Quarterly June 2010 Durban and Cape Town. The South African team completed the installation with just 4 hours to spare. When asked to comment on the initiative, Barend Minnaar, Country Business Manager at Nestlé Professional SA said, "The concept is already delivering a strong market presence for the new Nescafé Milano Solution in major centres across the country. Our team has done a tremendous job and continues to work hard to ensure we execute promotional plans flawlessly and make the trial a resounding success". The initial feedback from Nando's and their franchisees has been overwhelmingly positive. Jeff Rakusin, President of Nando's trading said, "We are delighted to serve your new Nescafé Milano premium café style beverages at our restaurants. In fact, this morning, I received a report from one location in Cape Town which has gone from no coffee sales to 185 cups in the first three days of the programme. We are truly delighted with the response we are getting from consumers and particularly pleased to have the support of such a great global partner as Nestlé Professional to ensure the projects' success".
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