CATEGORY SELLING STORY11/29/2012 Neuro Key Account Team

2013

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Functional Category & Product

Consumer Insights & Marketing

Customers

Xtra Mart 2013

Agenda

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Company Update

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NEURO’S PHILOSOPHY: WHAT WE STAND FOR

Premium Functional Ingredients

Our researchers and scientists continue to study to ensure each Neuro has the optimal levels and mix of ingredients to deliver the functional promise on the bottle.

The key ingredient and dosage levels are backed by published, third-party research proving the benefits delivered at the levels contained in each Neuro.

We are uncompromising in our development and have not cost-contained or reduced the ingredient levels in any way.

Everything from our ingredient sourcing to our ambient fill process is designed to deliver optimal benefit in each Neuro

Neuro delivers true function-ingredient quality and dosage levels high enough to work--setting it apart from other offerings

Neuro is designed with real ingredients at real levels to deliver real results for whatever our consumers’ passions and needs might be at any time of day...

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NEURO: TRUE FUNCTIONThe 24/7 Solution

Neuro is the first system of truly functional beverages designed for consumers who demand a healthy 24/7 lifestyle.

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Functional Category & Product

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1970s

1980s

1990s

2000s

2010s

Refreshment

Low Calorie

Benefit Healthy Functional

Evolution of the Functional Category

THE OLD CONSUMER(static or shrinking numbers)

THE NEW CONSUMER(high growth demographic)

• Seeks refreshment• Seeks flavor over function• Doesn’t think about negative health

affects• Seeks the lowest price possible

• Demands noticeable functional benefit• Demands Low Calorie• Demands positive, AND no negative health

affects• Seeks Premium products• Willing to pay more for products that meet

these criteria

The Consumer driven evolution of what a beverage should deliver

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1. Provides a true benefit

2. Low Calorie

3. Healthy

Evolution of the Functional Category

PROVIDES A BENEFIT

HEALTHY

LOW CALORIE

The Functional Category contains three essential elements:

Neuro is leading the formation of the true Functional Beverage Category as the only system of beverages with national distribution that delivers all there elements.

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Consumer Usage OccasionsEach Neuro SKU delivers on specific needs across multiple consumer segments

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Consumer Insights & Marketing

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Overall-All SKU Brand LoyaltyAmong regular users, Neuro’s brand loyalty is competitive with much older, more established brands

Vitamin Water

Sobe Life Water

Neuro Function Skinny Water

Activate Balance Karma0%

10%

20%

30%

40%

50%

60%

70%

80%

Brand Loyalty Index-All SKUs

Net Promoter Score; Q1 2012

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SKU Specific Brand LoyaltyNeuro Sonic’s brand loyalty is near or better than like SKU’s of many older, more established brands

Monster Rockstar 5-hour Energy

Neuro Sonic

Red Bull Sobe Lifewater

Vitamin Water

0%

10%

20%

30%

40%

50%

60%

Brand Loyalty Index-Neuro Sonic & Like SKUs

Net Promoter Score; Q1 2012

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2012 National Media Campaign

$3.5M integrated, multi-platform plan1.5B impressions

• National Digital, Mobile, Print, Social and PR outlets

• Regional OOH Billboard/Transit and Radio• Focus: Neuro Brand, Neuro Sonic, Neuro Bliss

Target Consumer

• Primary Age: 18-34y• Secondary: 15-18y and 34-49y• 50/50 Male/Female• Middle income and up• Health Conscious

To increase Neuro’s awareness, trial and sales, the first National Media Campaign will run June 1st through Dec 31st, 2012

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2012 National Media Campaign

Integrated National Campaign with a continuous focus on digital to target consumers

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Digital Ads

Video in Video

Greystripe Landing Page

Video Lightbox

Multiple Digital ad platforms deliver optimized targeted impressions

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Screen to Store: Product Ad With Store Locator

Consumer Experience ProgressionProduct Media Product Locator

Interactive Digital Ads that drive consumers directly to the point of purchase

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National Print Ads-Neuro Sonic & Neuro Bliss

Print ads to targeted demographics reaching over 60 million of readers. Publications specifically selected for demographic and high rate of beverage purchases from ads

In-Style Magazine July/August/September. Alternating Bliss and Sonic Ads

Rolling Stone Magazine July/August/ September. Alternating Bliss and Sonic Ads

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Permanent Merchandise & Point of Sale

Available profit drivers:• Metal Racks• Cardboard Displays• Pallet Wrap• Pallet Header• Glide Racks• Posters• Statics• Push/Pull Signs• Shelf Strips• Pricing Stickers

POS Placement increases the profit story for every retailer:

• Ties the retailer into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers

Max number of smart placements = Max retailer profit

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Point of Sale

Available profit drivers:

• Racks• Price Labels• Generic Static• Poster• Shelf Strip• Pallet Wrap• Push/Pull• Pallet Header• Pole Display• Glide Rail Stickers

POS Placement increases the profit story for every retailer:

• Ties the retailer into Neuro’s multi-million dollar marketing campaign• Calls out a high profit product and its pricing to consumers

Max number of smart placements = Max retailer profit

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Sonic28%

Sleep20%

Bliss27%

Sun11%

Trim14%

Account S & Neuro scan sales; Q4/2011-mid May 2012

Neuro renews the category profit in a top national convenience chain

Sales Share of Brand

Direct quote from a national c-store chain category manager: “Neuro was the second best performing new brand (via sales $$’s) to launch via our innovation section of new entries in our company history.”

C-Store Sales Account “S” Data

• In the first 7 months in distribution this chain sold 670,150 units in 210 days

• 3,191/Ave of 900 stores =3.55/5

• 0.71 units per store per day per SKU

• $1,693,828 ($’s)/670,150 (Units) = $2.53

• On average Neuro generates $1.00 more per transaction then your typical single serve n/a beverage

2010 2011 2012

NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12

- YTD Neuro has gained 25pts of ACV

Neuro’s Distribution in the C-store channel

2010 2011 2012

NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12

- Neuro is up 238% YTD in dollars, or +$16M

Neuro continues their Triple Digit Growth

- neuro’s 4W sales are about to surpass Sobe Life Water & Glaceau Vitamin Water Zero

NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12

Neuro’s continued growth is taking over notable brands with significant presence

- Triple digit growth in truly functional brands, while enhanced waters are flat to declining

NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12

+2%* (+$1.7M)

-7% (-$1.2M)

-9% (-$2.1M)

+239% (+9.0M) +300%

(+5.9M)+169% (+1.1M)

* 0% Units

Functional brands are fueling growth (Neuro)

- neuro’s dollars per SKU surpasses all but Glaceau Vitamin Water

NIELSEN TOTAL US CSTORE DATA ENDING 7/14/12

Neuro’s SKUs surpass many other enhanced products

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Over last two years, Neuro has partnered with many C-Store Retailers across the country

Current National C-Store Partners

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2013 Trade Marketing Initiatives Neuro’s 2013 trade marketing initiatives will increase retail activation and drive consumer growth through anchor activations, functional focuses, and partner initiatives with our key distributors.

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Neuro & Xtra Mart -2013

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2013 SMALL FORMAT Promotional Frequency/PricingOption #1 Calendar-$20/case, Max SRP: $2.69 plus 4 month long feature events at $18/case, MSRP:

2/$4

*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin

$22.50 8 $2.50 $20.00 12 $1.67 $2.69 $1.02 38%$22.50 4 $4.50 $18.00 12 $1.50 $2.00 $0.50 25%

Eye to Arm COLD

Pricing is subject to change at the sole discretion of Neuro

Option #2 Calendar-$19.25/case, Max SRP: 2/$5 plus 4 month long feature events at $18/case, MSRP: 2/$4

*Wholesale Months EDLP Discount EDLP Net Units / Case Unit Cost MSRP Penny Profit Margin

$22.50 8 $3.25 $19.25 12 $1.60 $2.69 $1.09 40%$22.50 4 $4.50 $18.00 12 $1.50 $2.00 $0.50 25%

Eye to Arm COLDEye to Arm COLD Rack attack,

owning the perimeterAffinity

Xtra Mart 2013 Pricing & Promo Calendar

2013 JanuaryFebruar

yMarch April May June July August Sept. Oct Nov. Dec.

Suggested Retail

$2.69 or 2/$5

2/$4$2.69

or 2/$5 $2.69

or 2/$5 2/$4

$2.69 or 2/$5

2/$4$2.69

or 2/$5 2/$4

$2.69 or

2/$5

$2.69 or

2/$5

$2.69 or 2/$5

EDLP $20.00 $18.00 $20.00 $20.00 $18.00 $20.00 $18.00 $20.00 $18.00

$20.00

$20.00

$20.00

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Neuro 2013 Example Functional Cold Set

OTHER MARKETING OPPORTUNITIES

Opportunities include:

Consumer Engagement/ Product Sampling

Social Media Programming ( Facebook Free Stuff )

Coupon program (digital & print)

Xtra Email Club

Xtra Mart and Neuro Giving Back Charity Program

Neuro will invest in marketing programs to drive awareness and store traffic

Xtra Mart & Neuro Marketing Opportunities

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Light It Up

• Neuro is the leading entry in the consumer driven creation of the truly functional category.

• Neuro delivers national state-of-the-art media and digital marketing programs that grow the consumer base and drive partners’ business through integrated trade programs and geo-targeting of campaigns around store bases.

• Neuro is renewing the profit story in the enhanced and functional beverage sets through incremental per unit profits. Premium Price point + multiple consumer purchases = more profit dollars

• Neuro delivers consumers demands of true function, low calorie, and healthy.

Light up your profit story with the right components in place:

• Set six SKUs for success• Profit driving merchandising agreement• Multiple, profitable points of consumer intercept• Integrated marketing programs, starting with point of sale