Option 1 (8 oz.

) 6 SKU to Supermarket
20 Supermarket Chains
2 Regions
Ad Plan $1,200,000 per region per annum
Sales 35,000,000 units per annum
Slotting fees $10,000 per Chain per SKU
Gross Profit $5,220,950
Less Ad Costs ($2,400,000) 2 Regions
Less Incremental SGA ($200,000) $200K sales + $120K mkt
Less Slotting Fees ($1,200,000) 20 Chains, 6 SKU per Chain
Trade Promotion Expense ($870,000) 11 Supermarkets in NE, 9 in West, 4 ti
Less Broker's Commissions ($642,838) 4% of sales
Profit Contribution ($91,888)

Sales Growth $16,070,950

Option 2 (32 oz.) 4 SKU to Supermarket

64 Supermarket Chains
4 Regions
Ad Plan $120,000 per region per annum
Sales 5,500,000 units per annum
Slotting fees $10,000 per Chain per SKU
Gross Profit $3,769,425
Less Ad Costs ($480,000) 4 Regions
Less Incremental SGA ($100,000) Half of Option One
Less Slotting Fees ($2,560,000) 64 Chains 4 SKU
Trade Promotion Expense ($10,240,000) 64 Chains 2x per annum
Less Broker's Commissions ($368,577) 4% of sales
Profit Contribution ($9,979,152)

Sales Growth $9,214,425

Option 3 (Multipack) 2 SKU of Multipack to Natural Foods Cha

Ad Plan $250,000
Sales 1,800,000 units per annum
Free Cases (slotting) fee $45,000 2.5% of Manufacturer Sales (net of bro
Gross Profit $1,247,073
Less Ad Costs $250,000
Less Free Cases $45,000
Less Broker's Commissions ($132,683) 4% of sales
Profit Contribution $1,409,390

Sales Growth Year 1 $3,317,073

SKU to Supermarket
Supermarket Chains

per region per annum text Option 1

units per annum text Option 1
per Chain per SKU text Supermarket
formula = units sold * $ contribution per unit

$200K sales + $120K mkt text Option 1

20 Chains, 6 SKU per Chain
11 Supermarkets in NE, 9 in West, 4 times p.a.
4% of sales formula = MSP * units sold * 4%

Market Share sales growth = MSP * units sold

1.5% of supermarket yogurt sales (last year)
2.0% of supermarket yogurt 6-8 oz sales (last year)

SKU to Supermarket
Supermarket Chains

per region per annum text Option 2

units per annum text Option 2
per Chain per SKU text Supermarket
formula = units sold * $ contribution per unit

Half of Option One text Option 2

64 Chains 4 SKU
64 Chains 2x per annum text Option 2, Supermarkets
4% of sales formula = MSP * units sold * 4%

Market Share sales growth = MSP * units sold

10.3% of 32oz yogurt sales nationally (last year)

SKU of Multipack to Natural Foods Channel

text Option 3
units per annum text Option 3
2.5% of Manufacturer Sales (net of broker fees)

formula = 1.8m units sold * MSP * 2.5%

4% of sales formula = MSP * units sold * 4%

Market Share sales growth = MSP * units sold

11.2% of natural foods channel (last year)
 Option 1 Option 2 Option 3
$'000 (8 oz.) (32 oz.) (Multipack)
One Year Revenue 0 0 0
One Year Profit (1,036) 0 0
Revenue after 2 Years 0 0 0
NPV of Profit over 2 Years (1,282) 0 0
Revenue after 5 Years 0 0 0
NPV of Profit over 5 Years (2,112) 0 0

Assumptions for Option 1 Supermarket Channel - 8oz

Broker Fees 4% of manufacturer's sales
Wholesaler NA
Distributor Margin 15%
Retailer Margin 27%
Retail Price $0.74 per 8oz cup
One Time Slotting Fee $10,000 per SKU per Retail Chain
Free Case ? per SKU per Retail Chain
Trade Promotions every 3 months
Northeast, Midwest, Southeast $7,500 per ad per retailer
West $15,000 per ad per retailer
National Average $8,000 per ad per retailer
Manufacturing Cost ($0.31) per 8oz cup

Number of SKU $6
Regions $2
Predicted Growth 2% per annum - after first year
Marketing Support $120,000 per region per year
SG&A Uplift $200,000 per annum
Incremental Sales 35,000,000 additional units
# Chains 11 in Northeast
# Chains 9 in West

Calculations for Option 1

Retail Price $0.74
Retail Margin 27%
Retail Purchase Price $0.54
Distributor Margin 15%
Distributor Purchase Price $0.46
Manufacturer Sales Price $0.46
Manufacturing Cost Per Unit -$0.31
Contribution per Unit Sold $0.77
Manufacturer Gross Margin 167.5%

$'000 Year 1 2
Incremental Sales (million units) 35.00 35.00
 Incremental Sales 0 0
Less Manufacturing Costs 0 0
Incremental Gross Margin 0 0
Less Broker Fees 0 0
Less Slotting Fees (660) 0
Trade Promotions (176) (176)
Marketing Support 0 0
Incremental SG&A (200) (200)
Incremental Profit (1,036) (376)

2 Year NPV 8.0% Discount Rate ($1.28) Million

5 Year NPV 8.0% Discount Rate ($2.11) Million

Assumptions - Option 2 Supermarket Channel - 32oz

Broker Fees of manufacturer's sales
Wholesaler NA
Distributor Margin
Retailer Margin
Retail Price per 32oz
One Time Slotting Fee per SKU per Retail Chain
Free Case ? per SKU per Retail Chain
Trade Promotions every months
Northeast, Midwest, Southeast per ad per retailer
West per ad per retailer
National Average per ad per retailer
Manufacturing Cost per 32oz

Number of SKU
Regions
Predicted Growth per annum - after first year
Marketing Support per region per year
SG&A Uplift per annum
Incremental Sales additional units
# Chains Nationally

Calculations for Option 2

Retail Price $0.00
Retail Margin 0%
Retail Purchase Price $0.00
Distributor Margin 0%
Distributor Purchase Price $0.00
Manufacturer Sales Price $0.00
Manufacturing Cost Per Unit $0.00
Contribution per Unit Sold $0.00
Manufacturer Gross Margin #DIV/0!
 $'000 Year 1 2
Incremental Sales (million units) 0.00 0.00
Incremental Sales 0 0
Less Manufacturing Costs 0 0
Incremental Gross Margin 0 0
Less Broker Fees 0 0
Less Slotting Fees 0 0
Trade Promotions 0 0
Marketing Support 0 0
Incremental SG&A 0 0
Incremental Profit 0 0

2 Year NPV 8.0% Discount Rate $0.00 Million

5 Year NPV 8.0% Discount Rate $0.00 Million

Assumptions - Option 3 Natural Foods Channel - Multipack

Broker Fees of manufacturer's sales
Wholesaler Margin 7%
Distributor Margin
Retailer Margin
Retail Price per Multipack
One Time Slotting Fee per SKU per Retail Chain
Free Case ? per SKU per Retail Chain
of manufacturer sales
Trade Promotions every months
Northeast, Midwest, Southeast per ad per retailer
West per ad per retailer
National Average per ad per retailer
Manufacturing Cost per 32oz

Number of SKU
Size Oz
Predicted Growth per annum - after first year
Marketing Support per annum
SG&A Uplift per annum
Incremental Sales additional units

Calculations for Option 3

Retail Price $3.35
Retail Margin 0%
Retail Purchase Price $3.35
Distributor Margin 0%
Distributor Purchase Price $3.35
Wholesaler Margin 7%
Wholesaler Purchase $3.12
Manufacturer Sales Price $3.12
Manufacturing Cost Per Unit $0.00
Contribution per Unit Sold $3.12
Manufacturer Gross Margin 100.0%

$'000 Year 1 2
Incremental Sales (million units) 0.00 0.00
Incremental Sales 0 0
Less Manufacturing Costs 0 0
Incremental Gross Margin 0 0
Less Broker Fees 0 0
Less Free Cases 0 0
Trade Promotions 0 0
Marketing Support 0 0
Incremental SG&A 0 0
Incremental Profit 0 0

2 Year NPV 8.0% Discount Rate $0.00 Million

5 Year NPV 8.0% Discount Rate $0.00 Million
 Reference
Case Text - Supermarket Channel

Case Text - Supermarket Channel

Case Text - Supermarket Channel
Exhibit 3
Case Text - Supermarket Channel

Case Text - Supermarket Channel

Case Text - Supermarket Channel
Case Text - Supermarket Channel
Case Text - Supermarket Channel
From Exhibit 3

From Exhibit 6
From Exhibit 6
Option 1 Comment 4
Option 1
Option 1
Option 1
Option 1
Option 1

3 4 5
35.00 35.00 35.00 35,000 growing at 20% pa
 0 0 0 Units * $0.46 per unit
0 0 0 Units * $0.31 per unit
0 0 0
0 0 0 Sales * 4%
0 0 0 20 Chains * 6 SKU
(176) (176) (176) Price * # Retailers Per Region * 4 times p.a.
0 0 0 $1.2mm per Region Per Annum
(200) (200) (200) Fixed Annual Amount
(376) (376) (376)

Reference
Case Text - Supermarket Channel

Case Text - Supermarket Channel

Case Text - Supermarket Channel
Exhibit 3
Case Text - Supermarket Channel

Option 2
Case Text - Supermarket Channel
Case Text - Supermarket Channel
Case Text - Supermarket Channel
From Exhibit 3

From Exhibit 6
Option 2 (Nationally)
Option 1 Comment 4
Option 2 (Nationally)
Option 2 (Nationally)
Option 2 (Nationally)
Option 2 (Nationally)
 3 4 5
0.00 0.00 0.00 5,500 growing at 20% pa
0 0 0 Units * $1.68 per unit
0 0 0 Units * $0.99 per unit
0 0 0
0 0 0 Sales * 4%
0 0 0 64 Chains, 4 SKU
0 0 0 Price * # Retailers * 2 times p.a.
0 0 0 $120,000 per Region Per Annum
0 0 0 Fixed Annual Amount
0 0 0

Reference
Case Text - Supermarket Channel

Case Text - Natural Channel

Case Text - Natural Channel
Exhibit 3
Case Text - Natural Channel

Option 3
Option 2
Case Text - Supermarket Channel
Case Text - Supermarket Channel
Case Text - Supermarket Channel
From Exhibit 3

From Exhibit 6
From Exhibit 6
Yogurt Through Nat.Foods Stores
Option 3
Option 3
Option 3
 3 4 5
0.00 0.00 0.00 1.8mm growing at 15%pa
0 0 0 Units * $1.84 per unit
0 0 0 Units * $1.15 per unit
0 0 0
0 0 0 4% of sales
0 0 0 2.5% of sales in first year
0 0 0 Not Required for Nat. Food Channel
0 0 0 $120,000 per Region Per Annum
0 0 0
0 0 0