This is a presentation I delivered at Bevnet on the future of beverage growth in the USA

1. Envisioning The Next Five Years Of
Beverage Growth
- Neil Kimberley: @foodsfluidsbynd

2. Over A Decade Of Solid Growth
$78.9
$117.4
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
US Beverages Retail Sales ($B)
Beverage Digest

3. Per Capita Consumption Changed
FUNCTIONAL
BEVERAGES
848
674
198 502
2000 2012 2018
CSD Non CSD
1,046 1,176 +130 Total Servings
(174) CSD Servings
+304 Non-CSD Servings
Beverage Digest

4. Growth Projected At ~1.4%
CAGR
$78.9
$117.4 $126.7
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
US Beverages Retail Sales ($B)
Beverage Digest/Foods Fluids & Beyond

5. Per Cap Consumption Equality By 2018
FUNCTIONAL
BEVERAGES
848
674 636
198 502 636
2000 2012 2018
CSD Non CSD
1,046 1,176 1,272
Beverage Digest/Foods Fluids & Beyond

6. 0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
US Beverages Retail Sales Share Trend
Beverage Digest

7. 0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
Extend The Current Trends…
Beverage Digest

8. 0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
2018: CSDs Reach To 49.9% Share
Beverage Digest/Foods Fluids & Beyond

9. Non-CSD Growth Opportunity
$1.3 $1.4 $1.5 $1.6 $1.7 $1.8
$0.7 $0.7 $0.7 $0.7 $0.6 $0.6
2013 2014 2015 2016 2017 2018
Category Growth CSD Swap
$2.0 $2.1 $2.2 $2.3
$2.3 $2.4
Foods Fluids & Beyond

10. $67 $63
$15 $18
$38 $46
2013 2018
CSD Bottled Water Alt Beverages
$119B
$127B
$8B of Growth, $11B of Opportunity
+4% CAGR
+4% CAGR
-1% CAGR
Foods Fluids & Beyond

11. What Will Grow?
$3.2
$2.9
$1.6
$1.2
$1.9
$0.9
Bottled Water Energy Drinks Juice/Juice
Drinks
Sports Drinks RTD Tea/RTD
Coffee
Other Beverages
2013 – 2018 Non CSD Growth Forecast
($B)
+5% +5% +3% +3% +5% +5%CAGR
Foods Fluids & Beyond

12. Five
Opportunities

13. 1) Retail Opportunity For Non-CSD’s
• More Space
• More Promotions
• More Merchandising
• Pressure To Perform
• Slotting
• Incremental Support
Dynamics

14. • More Space
• More Promotions
• More Merchandising
• Pressure To Perform
• Slotting
• Incremental Support
Get ReadyDynamics
• Greater Interest From Big
Bevcos
• Category Management
 Pricing
 Promotion
 Assortment
• Build Strategic Partners
 Retailers
 Distributors
1) Retail Opportunity For Non-CSD’s

15. 2) Consumer Evolution
Premium Hydration

16. 2) Consumer Evolution
Premium Hydration Natural Lift

17. 2) Consumer Evolution
“Snackification”

18. 2) Consumer Evolution
“Snackification” Real Natural Simplicity

19. 3) Opportunity At The Base of The Pyramid

20. 3) Opportunity At The Base of The Pyramid

21. 4) Changing Forms & Channels
Powders, Mios and Pods

22. 4) Changing Forms & Channels
Powders, Mios and Pods Online Sales

23. 5) The Sweetener Revolution (If It Arrives)

24. 5) The Sweetener Revolution

25. But… The More Things Change, The More
They Stay The Same
Vision Differentiation Tenacity
Neil Kimberley
VP Strategy Essentia Water
@foodsfluidsbynd