Applause User Meeting

January 19, 2010

John Williams

Product Specialist

Gilbarco Veeder-Root

Agenda

> Popular Upgrade Price Promotions Extended

> Update on Video Library

> Focus on Morning Timeslot

> Q&A

Offers extended on Audio/Video Upgrade and Color Retrofit programs

> For 5.7” Mono Dispenser users> Order an EPP retrofit for an Encore 500 or S series dispenser and add an audio/video capable color

screen retrofit for only $4,995 (list price.) > Standard list price = $6,870) less than the cost for a factory-installed color upgrade!

> For 10.4” Color Dispensers without Audio Video> Dispensers manufactured before August 2009.> Upgrade package for current color dispensers: $399 limited time pricing per dispenser ($799 if

ordered after 12/1/09)> Includes:

> New accelerator card (one per dispenser)> New software> Audio/video content libraries> Online training on audio/video functionality.

Offers Extended until March 31, 2010

New on User Portal

Volume Control for your A/V Enabled Dispensers> Available under the Support Tab on User Forum

Media File Specifications – Including A/V Files> Available under the Resources Tab On User Forum

New Report from The Coca-Cola Leadership Conference> Available under the CAMPAIGN PLANNING tab on User Forum

Current Video LibraryNo Audio

With Audio

With Text Overlay No Audio

With Audio

With Text

OverlayBakery Products x x x Hot Chocolate x xBeer Selection x x Hot Dogs x Bic Lighter x Hot Dogs x x xBreakfast Burrito x x Icee Brand Drink xBreakfast Sandwich x x x Kit Kat with Coffee xButterFinger x Klondike Bar xCandy x x Lottery x xChicken Trio x x Lunch/Sandwich x xChips/Cookies/jerky x Milk x xCoffee Beans Café x Miller Lite xCoffee x x x Nachos x xCoke Fountain Drink x Nerds xCoke "Open Happiness" x Pancake Breakfast Sandwich x xCoke Zero x Big Subs x xCorn Dog x Breakfast Burrito xDasani x Chicken Trio xDiet Coke x Pizza x xDr. Pepper x Planters Peanuts xEnergy Drinks/Waters x x x Popcorn xEnviga Tea x Pretzels xFoambrite carwash/Ryko x Skittles/Starburst xFountain Drinks x x Pretzel Pieces xF'Real Milkshakes x x Sprite xFrozenDrinks x x Sweetarts xFuze Tea x Vitamin Water xGold Peak iced Tea x Wonka Gummies xHealthy Snacks x x

Focus on the Morning Day Part

Morning Day-part Facts

> About 28% of all gas transactions happen between 5 and 11AM

> Morning business commuters are key demo> Over 87% of morning commuters drive alone

> School bound commuters are second target> Parent with one or more child in car

> Major reported traffic drivers at the convenience store are tobacco, coffee, water and other packaged beverages and breakfast foods.

Focus on Morning Food Services

> Other than late night, breakfast is the only time when c-stores hold comparable share to QSR and restaurants in food service.

> Core C-Store Breakfast eater> Male, by more than a 2 to 1 margin > Between 35 and 44 years old > Place a high premium on

convenience

The Breakfast Trifecta

> THE AM PITSTOP Customer> The drive-by experience> Fill-up and make tracks

> “Getaway Break” Customer> a brief but necessary pause in the routine> Opportunity to relax, and gear up for the day

> “Personal Oasis”> Looks for the full-service, fully enjoyable

experience

Source: ConAgra study of 3000 breakfast consumers

Emerging Competition

> QSRs getting aggressive with Pit Stop Customers> Quiznos and other sandwich franchises introducing breakfast menus> Jack in The Box, Burger King aggressively marketing “grab-n-go”> McDonalds offers premium coffee/expresso services

> Coffee and Juice companies go for the getaway break crowd> Oatmeal and Sandwiches at Jamba Juice, Starbucks and

Caribou. Even tests at Baskin Robbins

> Groceries marketing enhanced bakeries> Seating and free coffee refills> Quantity packs aimed towards offices

Other Factors

> With drop in tobacco related business, stores need to build their focus elsewhere – particularly in the AM.

> Quality coffee isn’t what it used to be> Only 52% of adults drink coffee. > Near glut of coffee bars and alternatives in most urban markets

> Breakfast menus are expanding> More breakfast choices with focus on convenience

> More focus on fresher and healthier offerings

How to Defend and Grow Share

> More focus on the 48% of customers that don’t drink coffee> Promote waters, fruit drinks, and other healthier beverages> Energy drinks and energy “shots” are growing caffeine delivery substitutes

> Keep cost low and value high> Target food service item below $2.50 with focus on high value per

> bfast sandwiches for burritos for “2 for $2.49” is winner> Remember that 87% of commuters drive alone

> Special deal on 16 coffees “when you buy 2” not likely a winner

Defend and Grow Share

> Make an effort to target women> Offer healthier fare such as yogurt, breakfast bars> Photos of females in ads. Make them feel welcome

> Re-enforce need for breakfast in promotion copy> People who eat breakfast have easier time losing weight

> Focus on variety and convenience> Mix in ads for other convenience items such as aspirin, chapstick, etc.

Products targeting new customers

Female Friendly Water Brands Healthy Grab-N-Go SnacksMorning Beverage Alternatives

Fresh, healthy dairyFresh, baked bread Meal Replacements

Core Prepared Breakfast Products

Search: Breakfast Sandwich

Search: Breakfast Burritos

> 77% of Americans have consumed a prepared breakfast sandwich in last 12 months up from 73% in 2008. (Source:NACS)

> Ethnic food variations catching on. (Burritos, tacos)

> Current library has over 18 different breakfast sandwich images.

> Landshire and Lettieres recently added to library

> Have tried repeatedly to get Deli Express without luck. (Call them direct.)

Quick Update on Coffee Products

> Many branded coffee products out there. Most regional.> Encourage your vendor to provide us with color images

> Ronnoco, Van Houte, Community and others in system.

> If you have custom branded program or serving cups, you will need to provide photos/images.

> Market swinging away from elaborate offerings in many markets> Hot Chocolate and “drip coffee” will bring in more customers

than “latte, mocha, or cappucino.”

1 hot chocolate and 2 coffee videos available

Animation available on user portal

Summary

> Morning traffic is more than ¼ of daily traffic, and the products in demand are often different than at other times of day. It’s worth spending time to build a unique schedule to target customers.

> Think past coffee and donuts – especially in beverages. 48% of adults don’t drink coffee. What do you have for them?

> Value and variety are key, and cost is a factor.

> Women skip breakfast more than any other demographic, and are also most aware of the value of a good breakfast. It’s a key audience that probably isn’t coming into your store already.