WELCOME…

UN VAZO FRiO Juice & Coffee Bar

EXECUTIVE SUMMARY

1.0 Executive Summary

Coffee, initially only consumed by the upper class of society, was perceived as a luxury and only consumed within special coffee bars hidden in the shadows of western society, the first organization which brought coffee outside of shadows and into the limelight was Starbucks during the later twentieth century. Even now, the company has evolved to be a household name and transformed the commodity of coffee from a luxury into an upscale culture phenomenon as well as the other cafes such as Seattle’s Best, Coffee Experience, Gloria Jean’s and locally owned and operated coffee shops. As Un Vazo Frio Juice and Coffee Bar will rise up and will join the journey of Coffee Industry Retailers, this will be a stand out for UVF to join such privilege and be in competition.

Un Vazo Frio Juice & Coffee Bar is a specialty beverage retailer. UVF uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and more time-efficient way. Providing its customers the ability to drive up and order (from a trained Barista) their choices of a custom-blended espresso drink, freshly brewed coffee, or other beverage. UVF is offering a high-quality option to the fast-food, gas station, or institutional coffee. Offers quality coffee while conducting business that produces social, environmental and economic benefits. With excellent and innovation and committed to create a great beverage experience to customers in any age.

Un Vazo Frio will focus on two markets:

1. Daily Commuter

People traveling to/from work, out-shopping, delivering goods or services, or just out for a drive. Someone with active working attitude like; Call Centers, clients with busy lifestyle, hospital workers, etc.

2. Captive Consumer

Someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stand as an integral part of the environment. Families – children - kids, dieters and health conscious consumers. High School / College Students from private – public campuses, Special Events – Exhibits – Trade Fairs.

Un Vazo Frio will penetrate the commuter and captive consumer markets by deploying Mobile Cafes / Kiosk in the most accessible locations that dispense customer-designed, specially ordered cups of premium coffees in less time that required for a visit to the locally owned café or one of the national chains.

In addition to providing a quality product and an extensive menu of delicious items, to ensure customer loyalty, as well as good publicity coverage and media support, we will be donating up to 5% of revenue to local charities based upon customer choices.

Un Vazo Frio’s financial picture is quite promising. Since UVF is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and UVF recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and UVF competitors. There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.

Un Vazo Frio anticipates US$500,000 – 1,000,000 initial finances (borrowings) to carry it without the need for any additional investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially-sound growth based on customer request and product demand.

Un Vazo Frio will be the talk-of-the-town, having a Big Cup Kiosk as one of the Best and Unique Architectural design / artistry ever has been built by our chosen top Architectures, Engineers and Consultants who’s behind Un Vazo Frio. With an initial public or private offering that would allow the company to open five to ten facilities per year in all metropolitan communities of Luzon, Visayas and Mindanao. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before—or in the midst of—the arrival of Un Vazo Frio, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. If so_What could be more danger having other competitors and what make us different from Starbucks, Seattle’s Best, Coffee Experience, Figaro, Gloria Jean’s and locally owned and operated coffee shops or “cafes.” As Un Vazo Frio rising up, there will be no comparison on any other cafes and bars in the market, the future will lies on our Big Cup Kiosk will be a stand-out, what more our products and services. Wait till the market and consumers try all our products which provide health, quality and affordability in most efficient service they could ever imagine. This will be the Pride and Success of Un Vazo Frio!

Highlights

Attached Pictures and other Sales generated activities for your reference.

(Trade Fairs / Events / Invitations / Caterings / Exhibits / Media Coverage)

1.1 Objectives

Make Un Vazo Frio Juice & Coffee Bar the number one destination for juice and coffee in the metropolitan.

Sales of $400,000+the first fiscal year___$600,000+the second fiscal year ___$1 million the third fiscal year.

Be an active and vocal member of the community and provide continual re-investment through participation in community activities such as the Chamber of Commerce and financial contributions to local charities and youth organizations.

Create a solid concept in the industry and track performance in order to begin expanding to other markets within six months.

1.2 Mission

Un Vazo Frio Mission is three-fold, with each being as integral to our success.

ProductProvide customers the finest quality beverage in the most efficient time and provide a higher quality experience than any competitor.

CommunityProvide community support and contribution to the welfare of the local community and civic activities through customer involvement.

EconomicOperate and grow at a profitable rate through sound economic decisions and awards its business to as many local suppliers as possible in keeping Un Vazo Frio in the community.

1.3 Keys to Success

There are four keys to success in this business, three of which are virtually the same as any foodservice business. It is our fourth key--the Community Mission--that will give us that extra measure of respect in the public eye. As well as the fifth key as the healthy opportunity in the market for consumers with no-age-limits is our best marketing strategy.

1. The greatest locations - visibility, high traffic pattern, convenient access. 2. The best products - freshest coffee beans, cleanest equipment, premium serving

containers, consistent flavor, top-of-the-line machines and equipments. 3. The skilled and highly trained and friendly staff - cheerful, professional,

articulate, hospitable. 4. The finest reputation - word-of-mouth advertising, promotion of our community

mission of charitable giving, exhibits and trade fairs. Aggressive marketing and with dynamic website with online sales capability.

5. The No-Age-Limit – healthy fresh fruit – vegetable juices for babies, toddlers, kids – children. Teens and students that are stress out from school work needs healthy boosters for daily active lifestyle.

COMPANY SUMMARY

2.0 Company Summary

Un Vazo Frio Juice & Coffee Bar is a specialty beverage retailer that launches with its first mobile kiosk with Architectural Artistry and perfection from the name itself. UVF uses a system that is new to the beverage and food service industry to provide a totally new style of hot and cold beverages in a convenient and time-efficient way. Providing its customers the ability to drive up and order (from a trained Barista) their choices of a custom-blended espresso drink, freshly brewed coffee, or other beverage. Offering a uniquely flavorful coffee drink and a comfortable, upscale environment at which to socialize, relax or work. UVF is offering a high-quality option to the fast-food, gas station, or institutional coffee.

2.1 Company Ownership

Un Vazo Frio Juice & Coffee Bar is a Sole Proprietor in the Management of Marikiel Villamaria Cruzado, with the intent of using the personal investment as the portion of the shares to raise capital.

BRANCH OWNER: There is a minimum investment fee of $3000,000 per branch/kiosk. If feasible that all funds are raised, based on the pricing established in the financial section of this plan, Marikiel Villamaria Cruzado will maintain ownership of no less than 40-60% of the net sales. Provided with Kiosk, Documents, Equipments, partial product inventory and all other fringe benefits.

2.2 Start-up Summary

Un Vazo Frio’s start-up expenses total just $470,000. The majority of these funds--roughly $400,000--will be used to build (2) two coffeehouse facilities and (3) three kiosks, pay deposits, provides capital for six months of operating expenses together with the long term expenses. Another $35,000 to be used for each facility for the initial inventory and other one-time expenses for the two coffee house facilities and three kiosks. Un Vazo Frio anticipates the need for roughly $100,000 in operating capital for the first few months of operation. Future stores should cost no more than $250,000 to build out since many of the costs incurred here will not have to be repeated later.

*The Start-up requirements, below, include $107,500 of long-term assets.*

Long term assets: $107,500

Start-upStart-up

Requirements

Start-up Expenses:

LEGAL

City Permits / Licenses /Sanitary/Other Fees $7,500

Accounting $4,600

Insurance $0

Service/Prep Counter $15,000

Ice Machine $4,500

Large Refrigerator $3,000

Pastry Chiller / Undercounter Food Display (2) $6,000

Refrigerated Beverage Dispenser $2,000

Cash register (2) Point of Sale System $14,000

Cup / Lids $15,000

Coffee Machine (2) $11,000

Blender (2) $2,000

Juice Extractor (2) $1,000

Counters/Condiment bar/shelving $15,000

Tables, Chairs, Furnishings $12,000

Lighting Fixtures $4,000

Aircondition Unit (2) $3,000

OFFICE

Office Equipment / Furnishings $10,000

Computer, Scanner, Printer $3,000

Telephone / Fax / DSL $1,000

Stationery/Logos etc. $4,500

CONSTRUCTION

Site Design / Architectural Plan $12,000

Construction $25,000

Electrical / Lighting / Fixtures $25,000

Flooring / Installation $5,500

Bathroom Construction $5,000

Plumbing $12,000

Fireplace Construction $5,000

Painting $3,500

KIOSK EXPENSES

Mobile Kiosk Labor $65,000

Mobile Kiosk Finance Payment $12,500

Mobile Kiosk Expenses $8,500

ADMIN

Land Lease / Rent $8,500

Vehicle Finance / Transport / Delivery $20,000

Administration Labor $50,000

MARKETING

Opening Marketing / Advertising $4,000

Graphic Design for Signage $4,000

Outside Signage $2,000

Frequency Cards, Brochures $2,300

Website Development $7,000

Gift Item Displays $ 2,000

APPLIANCES, ETC.

Preparation Equipment $2,000

Dishwasher $4,500

Microwave $800

Panini Maker $800

Toasters $600

Storage Racks $1,500

Music System $1,500

Sinks (2), prep counters $1,500

Menu Board Construction $2,500

Outdoor-Portable Air Cooler (2) $2,400

Total Start-up Expenses $327,500

Start-up Assets

Cash Required $2,000

Start-up Inventory $35,000

Other Current Assets $0

Long-term Assets $107,500

Total Assets $144,500

Total Requirements $472,000

Start-up FundingStart-up Funding

Start-up Expenses to Fund $327,500

Start-up Assets to Fund $144,500

Total Funding Required $472,000

Assets

Non-cash Assets from Start-up $142,500

Cash Requirements from Start-up $2,000

Additional Cash Raised $0

Cash Balance on Starting Date $2,000

Total Assets $144,500

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable $0

Other Current Liabilities $0

Total Liabilities $0

Capital

Personal Investment $10,000

Other $0

Additional Investment $500,000

Total Investment $510,000

Loss at Start-up ($327,500)

Total Capital $144,500

Total Capital and Liabilities $144,500

Total Funding $472,000

2.3 Company Locations and Facilities

Un Vazo Frio will open its First coffee shop or retail outlet facilities on Makati Road were the Shopping Centers, Commercial Site are rising on fame and it is one of the biggest market earners among all other cities in the Philippines. One Mobile Kiosk facility will be placed inside the Villamor

Makati City is the main central business district of Metro ManilaMakati City is the largest financial and economic hub of the metropolitan area. It is one of the major economic centres in Southeast Asia. Now regarded as the city's central business district.

Airbase in Airmen’s Mall area over next month. Two coffee shops in newly open / operated Ninoy Aquino Int’l Airport, Terminal 3 the site adjacent to Villamor Airbase will serve as the commissary for all in – out passengers (figure 1.1). Three - Four retail / mobile kiosk / coffee shop facilities will be placed to all Schools/University belt and major shopping centers throughout metro manila and the rest of the cities nationwide over the next three years. Good, healthy environment and standard locations that are visible from roadway as well as all passers-by and established retail shops in other area.

Figure 1.1

Ninoy Aquino International Airport(Terminal 3)

The Ninoy Aquino International Airport Terminal 3 (NAIA-3)IATA: MNL – ICAO: RPLL

SummaryAirport type Public

Operator Manila International Airport AuthorityServes Manila

Location Parañaque City and Pasay City, Metro Manila

PRODUCTS

3.0 Products

Un Vazo Frio provides its patrons the finest hot and cold beverages, specializing in specialty coffees, hot and cold chocolate, milk, custom blended teas with superb deliciously tempting drinks. In addition, UVF will offer fresh-baked pastries and other confections. Seasonally, UVF will add other beverages like fruits smoothies, kiddie

Ortigas Center is the second most important central business district in Metro Manila. Situated between Mandaluyong and Pasig, it is home to HQ of major Philippine companies such as San Miguel Corporation and Meralco.

shakes, shakes with yogurt and soya milk, shave-ice with toppings, milkshakes, snowdrifts, gelato and yogurt with fruity toppings etc…etc…. Together, with our own Pride and honor to introduce our best brands; Fresh fruits – vegetables freshly squeeze from our Top-of-the-line Juice Extractor. Despite being an upscale coffeehouse, our prices are in line with the leading national chains.

3.1 Product Description

UVF provides its customers, whether at a coffee shop facility or one of the Mobile Kiosk, the ability to custom order a coffee beverage that will be blended to their exact specifications. Each of UVF’s Baristas will be trained in the fine art of brewing, blending and serving the highest quality hot and cold beverages, with exceptional attention to detail. But what makes us different from other cafes; again, our Coffee Machine and equipments are all automatic operated machines, in just one click, a perfect well maintained mixture with a coffee perfections to everyone to taste will be our best services to be offered to all consumers with more efficient and time consuming. Why need a Baristas if all equipments are equipped with automated machines; well to ensure the best services that we can offer to all consumers day and night, assuring the best hospitality and superb services that we can give is our Pride!

Besides offering coffees, teas, chocolate, seasonal specialty drinks, pastries and other baked goods. Through the website and certain locations, UVF will market premium items such as coffee mugs, T-shirts and sweatshirts, ball caps, stationery items and more.

3.2 Competitive Comparison

Un Vazo Frio considers itself to be a player in the retail coffee house industry. However, it knows the competition for its products range from sodas to milkshakes to adult beverages.

Un Vazo Fresco’s primary competition will come from three sources:

1. National coffee houses such as Starbucks, Seattle’s Best, Coffee Experience, Gloria Jean’s, etc.

2. Locally owned and operated cafes.

3. Fast food chains and convenience stores.

What will make Un Vazo Frio stand out from all its competitors are two things:

Un Vazo Frio will be providing products in the most convenient and efficient way available—either at one of the Coffee shops, or at one of the Kiosk. This separates UVF from the competition in that its customers won’t need to find a parking place, wait in a long queue and clean up the mess left by a previous patron. UVF customers can drive or walk up, order their beverage, receive and pay for their beverage, and drive off.

Secondly, Un Vazo Frio focuses on providing a significant benefit and help to the community outreach programs and health organizations through a contribution and donations from customer-identified charities, schools or other institutions.

3.3 Sourcing

Un Vazo Frio purchases its chocolates & cocoa, tea and coffees from Conlins Coffee – Alessi Major Distributors. Soon with Caribou Coffee Products. UVF also has wholesale purchasing agreements for other products – equipments – machines - with Major Brands; Jura International, Breville USA, Blendtec K-TEC Inc., Alessi and other major distributors.

Our Water supply is a Distilled Water. Fresh fruits and vegetables are from Dizon Farm Philippines and other suppliers. Pastries and goodies are provided by Sweet Angels – Zamboanga city and other local Bakery Products in the metro. Gift Items are from various vendors and suppliers.

Un Vazo Frio coffee shop facilities and Mobile Kiosk are engineered with Architectural Artistry and designs with all respect from Mobile Solutions Inc. Introducing the Pride of Un Vazo Frio; Architect Eric Ventilacion.

With the fulfillment products and equipment suppliers, UVF’s computer equipment with WiFi accessibility is provided.

3.4 Un Vazo Frio Juice & Coffee Bar MENU

(Attached Menu for Reference)

3.5 Technology

Un Vazo Frio’s delivery system is based on its technology. UVF coffee shop facilities and equipment is to provide convenience and efficiency for its clientele. See figure 1.2 for the Architectural Exterior Design of the Kiosk. (All diagrams have been removed from the plan)

(Attached Proposed Kiosk / Coffee shop for Reference)

3.6 Future Products

As seasons change, Un Vazo Frio will be offering products that will enhance sales and satisfy its customers’ desires. During summer months, UVF will subsidize lower hot beverage sales with chilled drinks, as well as the smoothies and fresh juices. UVF will also have special beverages during holiday seasons, such as The Flavor of the Month and the most requested healthy fresh fruit and vegetable juices.

Un Vazo Frio’s primary desire will be to listen to its customers to ascertain what they are looking for most, and provide it.

MARKETING ANALYSIS SUMMARY

4.0 Un Vazo Frio will focus on two markets:

1. Daily Commuter

Someone traveling to/from work, out shopping, delivering goods or services, or just out for a drive. People with active working attitudes from Call Centers and other clientele with busy lifestyle, Hospital workers, etc.

2. Captive Consumer

Someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. Families – children - kids, dieters and health conscious consumers. High School / College Students from private – public campuses, Special Events – Exhibits – Trade Fairs.

4.1 Market Segmentation

Un Vazo Frio will focus on two different market segments: Commuters and Captive Consumers. To access both of these markets, UVF has two different delivery systems. For the commuters, UVF has the coffee house. For the captive consumer, UVF has the Mobile Kiosk.

Commuters are defined as any or more individuals in a motorized vehicle traveling from point “A” to “B”. Un Vazo Frio’s greatest concentration will be on commuters heading to or from work, or those out on their lunch break.

Captive consumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. Examples would include high school and college campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events--such as carnivals, fairs or festivals--where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities.

PHILIPPINE PEOPLE STATS

(NO-AGE-LIMIT MARKETING PLANS)These strategies will bring more success for the next couple of years. Providing such healthy and more beneficial products that UVF is offering will be our success.

Age structure > 0-14 years 35.4 %Age structure > 15-64 years 60.6 %

Age structure > 65 years and over 4.1 %

Customer DemographicsYoung Couples 38%_____Older Couples 11%_____Families 24%Dieters 19%_____Other 8%

Pie Chart

These groups are all potentially strong customer segments. The benefit of this mix of customers is that it helps maintain consistent business throughout the year.

The other customer segments (Tourists, Local business and pass-through traffic on the metro) provide a consistent foundation all year long.

By appealing to several market segments, Un Vazo Frio does not become overly dependent on any single consumer group. During the non-school months, several coffeehouses have low rate in selling their products and poor sales during those periods. But UVF have to market anew each year to the incoming students and avoid peak seasons with a mix of customers.FACTS AND FIGURES (Age Distribution)

Philippines Population Pyramid for 2005Age and sex distribution for the year 2005:

Philippines Population Pyramid for 2010Predicted age and sex distribution for the year 2010:

4.2 Target Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to two major groups of potential customers.

1. Daily Commuter

Traveling to/from work in a short drive to Un Vazo Frio is one of our most potential local customers. Families and couples out shopping. Customers who value time in delivering goods or services, or just out for a drive. People with active working attitudes from call centers and other clients with busy lifestyle, Hospital workers and other customers who works 7/24.

Tourists who visits Manila and other part of the metropolitan, while hotels are virtually sold out during summer months, special holidays and occasions, tourism all year is exceptionally strong. This is due in large part to the temperate climate, weekend or day-trip visitors from the metropolitan area and an unusually large number of special events (e.g. film, festivals, concerts, art shows) scheduled throughout the year. With a troubled economy and fears of terrorism, more people are opting for the relatively inexpensive, easy and safe short trip in the metro for recreation. We will target these potential customers with ads in local tourism guides.

2. Captive Consumer

Someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. Families – children - kids, dieters and health conscious consumers. High School / College Students from private – public campuses, Special Events – Exhibits – Trade Fairs.

We also offer coffee service to local restaurants, night spots and businesses. Coffee service brings in additional revenue and promotes Un Vazo Frio

among employees at these businesses. We will also reach business customers through Chamber of Commerce activities and by personally visiting the shops and businesses to distribute discount coupons and menus.

Students most of whom are under the drinking age, have few places they can go to meet their friends. Coffeehouses have proven to be very popular with students – even high school students – as an “in” place to go that’s also affordable. To reach students we offer special student discount cards, pass out free coffee coupons at student events and offer entertainment on weekends.

Students represent an excellent customer segment for several reasons:

Students bring an energy and youth to the coffeehouseBy attracting students we generate excellent word-of-mouthStudents represent a large base of potential part-time employeesOften under the drinking age, students need an affordable place to hang out with their friends

4.3 Market Needs

Metro Manila is a now a mobile society. With the introduction of the automobile, we became a nation that thrived on the further freedom of going where we wanted when we wanted. Populations are millions of men, women and children in the Philippines, half of whom are too old, too young or too poor to drive an automobile or no automobile at all but still taking a walk just to purchase a drinks are the most loved past times of the Filipinos.

Our Market is made up of consumers who have schedules, a desire for quality and disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper, they don’t have the time. However, they still have the desire for the uniquely blended beverage as they hurry through their busy lives.4.4 Market Trends

Nearly ten years ago, a trend towards more unique coffees began to develop in Manila. There had always been specialty coffee stores, such as Gloria Jeans, Starbucks and others, but people began to buy espresso machines for their homes and offices and even a vendos, and people began to have coffee tasting. Then espresso bars began to appear and in inevitably they pop up everywhere.

However, we have also become more rushed for time during that same period. Those same consumers who helped push other coffeehouses in global sales are now rushing kids

to soccer, badminton, boxing and basketball games, running to the grocery and trying to get to work on time and back home in time for dinner…or to get to the next basketball games. Yet, they still have the desire for that refreshing, specially iced coffee each morning.

Lately, we’ve seen the introduction of beverage dispensers at convenience stores that spit out overly-sweet, poorly blended cappuccinos in flavors such as French vanilla or mocha, and consumers are paying as much as $4.00 for these sub-standard beverages.

The market is primed for the introduction of a company that offers a superior quality, specially blended product in a convenient environment at a price that is competitive to the national coffee houses.

4.5 Industry Analysis

According to industry statistics, the consumption of coffee and flavored coffee products is growing rapidly. The next five years, increasing in revenues will reach over billion dollars. Coffee houses have been primarily independent business. Remain its original coffee products and service, will also continue to enjoy lifetime success. As many of these independent coffeehouses enjoys a loyal following, and one of those are Starbucks coffee. Millions of coffeehouses scattered all over the country, there is still much room for growth as for Un Vazo Frio launch its first coffee business in the Philippines and soon in the world. It is not about where it came from or what will be the origin of Un Vazo Frio, we believe that the market has not approached maturity and, as yet, no coffee chain has differentiated itself significantly from the others.

While overall coffee sales have not grown significantly in recent years, the specialty coffeehouse segment is growing steadily at a healthy pace every year. The low food cost of coffee drinks, relatively modest investment capital requirements, and low overhead, lead to high profit margins in the coffeehouse industry.

As Filipinos leads a more cosmopolitan life, drinking coffee, especially gourmet coffee, is also becoming not just a trend but a lifestyle for the urbanite Filipinos. This is evident with the number of coffee shops that have mushroomed around the metro for the last five years. Coffee drinkers spend an average of 3 – 4 cups daily. It’s easy to see why coffee is second only to oil as the largest commodity in the world. Year after year, the growth continues at sizeable rates.

While other popular coffee shops brand their products as Western or European, Pinoy entrepreneurs like Un Vazo Frio had the guts to go against the flow and start a coffee business.

That is why Un Vazo Frio (in Spanish “ A Cold Cup”) stands firm on its name and originality of A Big Cup design kiosk and the characteristics of a good coffee are

embodied in its name ( Café in Spanish).

C - Caliente (hot)A - Amargo (bitter)F - Fuerte (strong)E - Escaso (scarce)

If Starbucks’ image becomes one of a “fast food” purveyor of coffee and now called the “McDonalds” of coffee chains, it leaves the market open for a smaller, more nimble competitor like Un Vazo Frio, where quality and service are paramount.

4.6 Competitive Edge

"Until everybody can walk to a coffeehouse and get a properly prepared espresso drink, we're not even approaching market saturation."

-- Mike Ferguson, Marketing & Communications DirectorSpecialty Coffee Association

Un Vazo Frio’s competitive edge is simple. UVF provides a high quality product at a competitive price.

“Give customers the freshest of superb drinks, highest quality of fruits & vegetable juices, chocolate, tea and coffee that you can buy all year round and provide them with friendly and knowledgeable service in a sparkling clean environment.”

Location can arguably be considered the best in the market - in the heart of the downtown shopping, dining, entertainment and cultural district of Manila. An ambiance superior to all other coffeehouses in the area. Glass decorations, Manila’s finest Artwork, mix Filipino-Italian-American style furnishings and outdoor dining.

Soon, Un Vazo Frio will be the only coffeehouse downtown to provide regular weekend evening entertainment and 24/7 dining services.

A wider variety of popular drinks than our competitors, including flavored coffee drinks, tea, cocoa, juice and other beverages. We have several drink options for people who don't drink coffee: tea, cocoa, juice and smoothies.

Our Internet website will include sales of coffees, tea, chocolates, and souvenir gift items.

4.7 Competition and Buying Patterns

Competition is dominated by the presence of Starbucks, fast becoming the “McDonalds” of the specialty coffee industry. Other major chains here in the Philippines are Figaro, Seattle’s Best, Gloria Jeans and Bo’s Coffee. All of these chains are considered “clones” of Starbucks. Few vary much from what is perceived as a proven formula for success.

FACT: The coffeehouse business has grown every year since 1982.

FACT: Not a single coffeehouse chain has failed during the past 20 years.

Despite major economic recessions, terrorist attacks and wars over the past two decades, the specialty coffee industry has grown every year. One industry observer said, "When times are good the coffeehouse industry is great. And when times are bad the coffeehouse industry is great."

Lifestyle factors converge to make the coffee industry strong at all times. The stimulant effect of coffee is an important reason why many hard-working, fast-paced Filipinos consider a stop at their local coffeehouse a necessary part of their day. Conversely, coffeehouses provide a calm, inviting environment for people to socialize, relax or catch up on work.

Young people under the legal drinking age are one of the fastest-growing segments of the coffee drinking market. Coffeehouses provide them with a much-needed place to meet with their friends.

Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in interest in coffee drinking among young people assures a diverse, receptive, sophisticated customer base now and in the future.

Older adults also enjoy the fact that for the relatively modest price of a cup of coffee and snack, they can meet with their friends, relax or work. Instead of going to a bar and paying for an alcoholic drink or a restaurant where a meal usually comes with a hefty price tag, the coffeehouse is an intimate yet inexpensive venue.

Quality is deteriorating even as the industry is growing.

Coffeehouses need to produce a quality product to back up the perceived "little luxury" image. Currently, most of the largest chains are bowing to the pressures of growth and are cutting corners on quality by introducing fully automatic espresso machines, mass bean buying and other efficiency measures.

Coffee drinking is now an all-day activity.

Once concentrated in the early morning hours or mid-afternoon, in recent years coffee drinking has become an all-day activity. Even late at night, many coffeehouses are packed with patrons. It's not unusual for a well located coffeehouse to exceed a daily average of 700 - 900 customers.

Customer guest check averages are rising.

As pastries, chocolates, tea, snacks, juice drinks and gift items are added to the menu, the average customer expenditure has risen. Many popular coffeehouses report averages in the $4 - $6 range. Un Vazo Frio expects that guest checks will average about $2 - $3.

STRATEGY AND IMPLEMENTATION SUMMARY

5.0 Strategy and Implementation Summary

Un Vazo Frio Juice and Coffee Bar uses a strategy of total quality – in product and service. Our promise is in our location, the products we sell, the people we attract and the atmosphere we create.

Strategic Assumptions:

People want a better-tasting coffee drinkCoffee drinkers want a more inviting coffeehouse environmentCoffee drinks are considered as affordable luxuryThe Coffeehouse industry is largely unaffected by the economy and world eventsUn Vazo Frio offers several unique advantages over all other coffeehouses.

5.1 Marketing Strategy

Other coffeehouses rely almost entirely on word-of-mouth marketing to generate business. We will engage in an ongoing aggressive marketing program that will help us establish profitability quickly and set the stage for continual growth.

Our strategy will be to position Un Vazo Frio as the one of the leading coffeehouses in the Philippines and in the world, offering a high quality product and superb service in a superior environment.

5.2 Launching

Launch marketing will promote awareness, build immediate traffic and establish our brand image via several methods:

← Public relations/publicity ← Direct mail ← Local print and broadcast media ← Design and packaging ← Community involvement ← Sampling ← Superior location ← Desirable store ambiance←

5.3 Public Relations

The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set the stage for future expansion. Local market awareness is vital because more than 50% of sales will come from people living within the area of the store.

National awareness will help drive the expansion by generating opportunities created by the media buzz and familiarizing people with our brand name. It will help set the stage for future brand identification through:

Local Media – Regional/National Print Media – National Broadcast Media – Direct Mail

The Website also markets Un Vazo Frio Juice and Coffee Bar with:

A monthly newsletter Interesting information about the coffee industry A map to our store Store hours Special events Coffee recipesAnd Other Products

5.4 Outside Dining

The coffeehouse/cafe experience is indelibly linked to other origins, where small Carenderia dining is a way of life of the Filipinos and has embraced sidewalk dining. It is one of the fastest growing additions to the Philippine dining scene.

Sidewalk dining also provides an excellent way for prospective customers to see and "check out" the coffeehouse for the first time.

5.5 Sampling

We will engage in several sampling activities to introduce potential customers.

Samples will be distributed at the coffeehouse Samples will be given to passers-by on the street Discount coupons will be distributed on the street, via direct mail and at special events Complementary coffee will be served at charitable and civic events Free coffee service will be provided

5.6 Sales Strategy

Our Sales strategy includes :

= Staff salaries that are 10% above the industry average in order to attract the best people

= Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and appreciated; constant staff training to assure the best quality possible

= State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B) create efficient product ordering

= Create a best mobile kiosk to take Un Vazo Frio into the community at special events, farmer's markets, art shows, etc.

= Sell coffee products, gift items etc. on our website

= Establish coffee service at local businesses

= Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups

= Create an ongoing sampling program

= Conduct a consistent, aggressive marketing program

= Be an active member of the community; be visible at charitable functions

= Solicit customer feedback to constantly improve and streamline our operation

Key Strategy: an advanced and expandable point-of-sales system

After carefully tracking the performance of Un Vazo Frio Juice & Coffee Bar through an expandable and highly detailed point-of-sale system, we will use this as a “blueprint” for expansion. Sales are linked to inventory to both streamline the efficiency of ordering and reduce “shrinkage” by instantly alerting us to unusual shortages compared with revenues.

Scheduling can be done online and easily revised to accommodate changes – all while projecting weekly, monthly, quarterly or annual labor costs. Schedules can be sent via email to staff members.

Cost of goods can be monitored for increased efficiency too. As we continually research methods of delivering a high quality but cost-efficient product, and by making small incremental improvements in the costs of items we expect to increase overall COG by a minimum of 5% during the first year of operation.

As expansion occurs, the POS system can be adapted to each individual location and allow the central office to monitor the stores remotely as well as the overall combined operation. Close monitoring will allow us to achieve a high level of communication between stores as well as spot problems immediately and take corrective action.

5.7 Sales Forecast

Conservatively, we are forecasting an average of 300 customers per day during the first year with the average guest check expenditure for all items of $2 - $3. This figure was arrived at by surveying the customer traffic at the nearest competing coffeehouses which have a range of 150 - 500 customers per day and an average customer expenditure of $4. We have estimated our customer expenditure to be slightly higher (3 - 5%) due to the premium price we will charge for some of our items. Total cost of sales is approximately 25%. We expect growth to occur across all categories at about 10% annually as the business becomes more established and well-known, reaching 200 – 300+ customers per day within a year and more than 400 – 500+ within three years. These estimates are likely conservative. However, it is possible we could attain a 1,000-per-day customer count within three years.

5.8 Milestones

The table lists important program milestones, with dates and managers in charge and budgets for each. The milestones schedule indicates our emphasis on planning for implementation ensuring its timely execution. What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for plan-vs-actual analysis, and we will hold follow-up meetings every month to discuss the variance and course corrections and avoid problems that might occur during the first launch.

MilestonesMilestones

Milestone Start Date End Date Budget ManagerBusiness/Marketing Plan Present Aug 2010 $1,000 GMSecure Funding Present Aug 2010 $1,000 GMSecure lease Present Aug 2010 $0 GMSecure name licensing Present Aug 2010 $350 GMMarketing plan Present Aug 2010 $0 GM/Br-MStructure company type Present Aug 2010 $0 GMDevelop investor program Present Aug 2010 $0 GMAttend Coffee Fest Present Aug 2010 $1,000 Asst. MHealth Dept. Present Sept. 2010 $200 GMSelect and order furnishings Present Sept. 2010 $200 Arch./Con.Site plans Present Sept. 2010 $0 GMSelect construction contractor Present Sept. 2010 $300 Arch./Con.Join Spec. Coffee Retailers Present Aug 2010 $600 S&M Mngr.Select and order lighting Present Aug 2010 $150 O-Mngr.Create employee manual Present Aug 2010 $0 GMAlliance with water company Present Aug 2010 $0 S&M Mngr.Join Chamber of Commerce Present Aug 2010 $350 S&M Mngr.Select cash register system Present Aug 2010 $0 GMBusiness license, etc. Present Aug 2010 $800 GMSelect paint contractor Present Aug 2010 $0 Con.Choose paint palette Present Aug 2010 $0 Arch./Con.Select and order flooring Present Aug 2010 $0 Engr./Con.Gift items, suppliers, order Present Aug 2010 $1,000 GMSelect pastry supplier Present Aug 2010 $200 GMSelect equipment supplier Present Aug 2010 $200 O-Mngr.Graphics/brochure design Present Aug 2010 $700 GM/S&M Mngr.Select confection suppliers Present Aug 2010 $200 S&M Mngr.Select juice suppliers Present Aug 2010 $200 GMCredit card companies Present Aug 2010 $0 O-Mngr.Create training program Present Aug 2010 $0 S&M Mngr.Select music system Present Aug 2010 $500 GMInstall wireless Internet Present Aug 2010 $0 Engr./Con.Hire manager, baristas Present Aug 2010 $500 GM/O-Mngr.

Select business insurance Present Aug 2010 $0 O-Mngr.Design, print stationery Present Aug 2010 $1,500 GM/S&M Mngr.Pre-opening parties Present Sept. 2010 $2,000 GM/S&M Mngr.GRAND OPENING Present Aug 2010 $3,000 Board of Dir.Achieve 700+ daily customers Sept. 2010 Jan. 2011 $0 GM/O-Mngr.Totals $15,950

WEB PLAN SUMMARY

6.0 Web Plan Summary

We plan to expand the functionality of our website so that it becomes a substantial revenue stream for Un Vazo Frio.

Although we've projected modest sales because of the difficulty in predicting online sales activity, we believe the potential exists for Internet sales to become a substantial percentage of our revenue.

We will sell a number of items at our website, including:

← Coffee & Tea mixes← Cocoa mixes ← Chocolates ← Gift baskets ← Gift items & Souvenirs← Artworks (option)

We will sell a variety of high design artwork and accessories featured in our coffeehouses by establishing ourselves as an agent for the artist/manufacturers. We will process the order and the artist will fulfill it. In this way we provide exposure and additional sales activity for the artists, and Un Vazo Frio creates an additional revenue stream that could become substantial over time.

Special offers at the retail stores will be posted from time to time on the website.

The website will also function as an online "brochure" for both the Un Vazo Frio quality story as well as enable visitors to "see" our retail store, get directions and maps, see our menu and find out more on incoming special events.

6.1 Website Marketing Strategy

We will host online "events" for our customers. For example, a visiting author may go online to chat with visitors to our website. Or we may support charities' fund-raising activities. This will provide us with opportunities for media coverage.

Eventually, when more stores are opened, the website will function as a means of internal communication through a password-protected area. Here, company rules, health department regulations, news, chat, "live" internal announcements and virtual meetings will take place.

6.2 In-store Internet computing

An appealing customer feature at Un Vazo Frio will be two Internet access stations with 17" monitors. These will enable people to access the Internet while at the store. The price for this access hasn't been set yet but will be approximately $2 an hour rate. Un Vazo Frio website home page will be the always-on start page for the monitors.

The Internet stations enable customers to check their email or access websites for business, study or travel information.

Internet access is provided more as a customer service than a revenue source. Although it will return a profit, the amount is difficult to determine now.

Our best estimate is that the station will be on for a total of eight - twelve hours daily, producing $3,000 a month in gross revenue ($36,000 annually minus approximately $1,000 for the basic fee plus the percentage of sales).

6.3 Development Requirements

Un Vazo Frio plans to employ a graphic designer and back-end user interface technical developer to create our simple, classy, yet Internet focused site.

The maintenance of the site will be done by contracted outside consultants. As the website is expanded and improved, future development may include items such as tracking, newsletters, superb menus, a coffee "chat" room and user Web pages. A technical resource may need to be contracted to build the trackable download to achieve a better downloadable menus from the web and the newsletter capabilities.

MANAGEMENT SUMMARY

7.0 Management Summary

(*Confidential and proprietary information omitted from this sample plan)

7.1 Personnel Plan

The personnel plan is included in the following table.

It shows the owners' salaries, a full-time manager's annual salary, eight part-time salaries for espresso servers and a part-time bookkeeper and/or website supervisor.

PersonnelPersonnel Plan

FY 2010 FY 2011 FY 2012Michelle Villamaria – Lindain 0 $15,000 $20,000Marikiel Villamaria – Cruzado 0 $15,000 $20,000Mary Jane Villamaria 0 $15,000 $20,000Jaime Crystal Villamaria 0 $15,000 $20,000Support Team (2) 0 $0 $0Branch/Store Manager 0 $5,000 $6,000Purchasing/ Website Supervisor 0 $8,000 $8,500Bookkeeper 0 $6,000 $8,000Barista #1 0 $4,000 $4,500Barista #2 0 $4,000 $4,500Barista #3 0 $3,500 $4,000Service Crew #1 0 $3,200 $3,500Service Crew #2 0 $3,200 $3,500Service Crew #3 0 $3,000 $3,200Total People 0 13 13

Total Payroll 0 $99,900 $125,700

FINANCIAL PLAN

8.0 Future Financial Plan

Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately 20 – 25%, cash flow adequate.

Marketing will remain 5% of sales.

Improve and add more high quality products to maintain the standard coffee necessities in the market.

Future cash investments and use projections to achieve maximum return with limited risk.

8.1 Important Assumptions

The 10-year record of positive growth for specialty coffee drinking in the Philippines will continue at a healthy rate. The Specialty Coffee Association says that the market is far from saturation and will not reach maturity until at least 2019.

The resilience of the coffeehouses industry to negative national and world events will continue. Despite recession and war, the coffeehouses industry has shown strong growth every year for the past decades and will continue for the next generation children & youth. Un Vazo Frio will stand firm on its quality and services still remains in the heart of the Filipino people. Coffee drinks will continue to be considered as “affordable luxury.” 15% minimum sales growth rate over the next three years as Un Vazo Frio becomes well known.

PHILIPPINE – ECONOMY(BIG MARKET)

Metro Manila (statistically designated as the National Capital Region or NCR) is the financial, commercial and industrial center of the Philippines. It accounts for 32% of the Philippines' Gross Domestic Product, around USD 40Bio in 2007. It has a third of the country's bank offices but over two thirds of its deposits

NATIONAL CAPITAL REGION (NCR) 11,553,427 Total population

CITY OF MANILA 1,660,714 - CITY OF MANDALUYONG 305,576 - CITY OF MARIKINA 424,610 CITY OF PASIG 617,301 - QUEZON CITY 2,679,450 - CITY OF SAN JUAN 125,338 KALOOKAN CITY 1,378,856 - CITY OF MALABON 363,681 - CITY OF NAVOTAS 245,344CITY OF VALENZUELA 568,928 - CITY OF LAS PIÑAS 532,330 - CITY OF MAKATI 510,383 CITY OF MUNTINLUPA 452,943 - CITY OF PARAÑAQUE 552,660 - PASAY CITY 403,064 TAGUIG CITY 613,343 – PATEROS 61,940

The cities and municipalities within the NCR are grouped into the four districts as follows:

# Alternate Name City/Cities

1 The Capital District Manila

2 Eastern Manila District Mandaluyong City, Marikina City, Pasig City, Quezon City, and San Juan City

3 CAMANAVA District Caloocan City, Malabon City, Navotas City, and Valenzuela City

4 Southern Manila District Las Piñas City, Makati City, Muntinlupa City, Parañaque City, Pasay City, Pateros, and Taguig City

Shopping centers

Ortigas Center Business District

Metro Manila currently has a large number of malls in the Philippines, the largest being the SM Mall of Asia, the third-largest mall in the world and now a well-known landmark on the shore of Manila Bay. Prior to its construction the largest was SM Megamall in Ortigas Center.

Other shopping centers in Ortigas Center include Robinson's Galleria, Shangri-La Plaza, and The Podium.

Recently opened in Pasig is a new development called Frontera Verde, which currently hosts Tiendesitas, a tiangge-style shopping center; SM Supercenter Pasig, the smallest SM mall to date; and SilverCity AutoMall, the first mall in the Philippines that is dedicated to the automotive market.

In the Central Business District of Makati, the Ayala Center hosts other malls, including Glorietta and the upscale Greenbelt shopping districts. Also in Makati is the Rockwell Center. These places are frequented by members of Metro Manila's upper classes.

Taguig City has a mall named Market!Market!, which is strategically located in a transportation hub within Fort Bonifacio Global City. Also posing as a competitor for a vibrant business center are Bonifacio Global City in Taguig, Eastwood City in Quezon City, Manila Bay City Reclamation Area in the cities of Pasay, Parañaque and Las Piñas, and Alabang Estates, Madrigal Business Park & Filinvest Corporate City in Muntinlupa.

In the City of Manila, the largest malls include SM City Manila and Robinson's Place-Ermita.

Cubao is Quezon City's Central Commercial Area that hosts 5 malls that includes the ultra-modern Gateway Mall. Other malls include various SM chains in the metropolis. Aside from Cubao, there is also Eastwood City, located along Libis; SM City North EDSA, located at the junction of EDSA, West Avenue, and North Avenue; SM City Fairview, located in the Novaliches District; and TriNoMa, Ayala Land's newest mall, located in front of SM City North EDSA..

Metro Manila is also full of palengke, the Filipino-style open-air wet markets. One of these is the Central Market, located in Quiapo district of Manila, and Divisoria Market, also in Manila. Cloverleaf Market in Balintawak, Quezon City supplies most of Metro Manila's fruit and vegetable products. Navotas Port Market supplies most of Metro Manila's fish products. Other smaller markets include the markets of Cubao Farmers, Nepa-Q Mart, Muñoz, Balingasa, Galas, Santa Mesa, Novaliches Talipapa, Baclaran, Pasay Libertad, and Pasay Cartimar, the latter also being one of the finest pet markets in the Philippines.

Midway between a mall and a market are the Philippine-only tiangges, or airconditioned markets selling goods such as clothes, shoes, accessories, computer parts, mobile phones, CDs, VCDs, MP3s, iPods, and DVDs. Among these can be found in Greenhills Shopping Center in the municipality of San Juan and St. Francis Square in Mandaluyong City.

Muntinlupa City hosts malls like Festival Supermall, Alabang Town Center and Metropolis Star Mall, all located in Alabang. There is also the new SM SuperCenter Muntinlupa in Barangay Tunasan, which opened last November 16, 2007.

Las Piñas has the SM Southmall, the largest based SM Mall South of Metro Manila.

Parañaque City has the SM City Sucat and alongside Pasay City, Duty Free Philippines, known as the mall of the "Balikbayans" or "back-to-home citizens" here in Metro Manila.

Wealth extremes

Aerial view of Metro Manila

Metro Manila is a place of economic extremes. It is stated that 97% of the total GDP in the Philippines is controlled by 15% of the population, the majority of which is in the Metro Manila area. Most of the wealthy and upper-middle class in the country reside within gated communities in places such as Forbes Park and Dasmariñas Village in Makati, Loyola Heights in Quezon City, Greenhills in San Juan, and Ayala Alabang Village in Muntinlupa City. Other wealthy families opt to live urban lifestyles and instead own large apartments and condominium units such as those in the Rockwell Center in Makati and Fort Bonifacio Global City in Taguig, while some choose to live in bayfront condos/apartments/townhouses along the stretch of Roxas Boulevard. That the area is populated by many of the wealthiest people in the country has also driven up the real estate value of the properties in these areas such that they are unmatched anywhere else.

However, practically side-by-side with the residences of Metro Manila's elite are slums and squattered areas, most of which are in the outskirts of the aforementioned gated communities, as well as areas left behind by the rapid development of the rest of Metro Manila, such as Tondo and Sampaloc in Manila, Guadalupe in Makati, some parts of Marikina, Caloocan, and Valenzuela, and most parts of Navotas.

Highway roadsides are often crowded with corrugated-steel-roofed huts and straw markets by which livelihood is obtained, in a stark contrast to the gated subdivisions present in Metro Manila. Less than 10% of the population actually lives in the

aforementioned neighborhoods, while the rest live in non-gated (normal) neighborhoods in regular houses, apartments, tenements and shacks. However the Macapagal-Arroyo government has started to gentrify the area, removing squatters from certain roadsides and even the national railway and replacing them with green areas.

EducationMetro Manila is home to several noteworthy Philippine higher educational institutions. It is the educational seat of the country and many students from the provinces head onto Metro Manila to study. As such, several dormitories, apartments and boarding houses abound. Areas of high number of educational institutions include the so-called "University Belt" and Taft Avenue in Manila, Katipunan Avenue and Fairview in Quezon City and Sta. Mesa straddling the Manila, Quezon City and Mandaluyong City borders.

DemographicsAs of the census of 2000, there were 9,932,560 people and 2,132,989 households residing in Metro Manila. With a population density of 15,617/km², it is by far the most densely populated region of the Philippines. For the period 1995 to 2000, the annual population growth rate was 1.06 percent, lower than that of the 1990 to 1995 period (3.30 percent). At present, NCR total population reaches 11,553,427.

The most common language spoken in households is Tagalog (94.34%). English is widely used and understood, and is the main language of the upper classes and in business.

The large majority of the population of Metro Manila is Roman Catholic (89%). Other religions include Protestant (3%), Islam (5%), and Hinduism and Buddhism (3%).

ALWAYS GRATEFULAND

BELIEVE

U N V AZO F RIO JUICE & COFFEE BAR

37 Jasmin Street P-4 Lo. Bicutan Taguig City Philippines 1630Contact No.: (001-63) 928 3874833Email: mvctradingphils@gmail.com Website: www.unvazo.weebly.com