69% of snacks are purchased off-site
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1 Multisnack 2012 Changing the consumer dynamic From distress to impulse PPA Play Providers Association Kate Costin (Association Manager) 19 th June 2012
2 On average staff eat 1 snack per day, but 70% of snacks are bought off-site Brought in, 52% Purchased off site during day, 17% Purchased on site, 31% 69% of snacks are purchased off-site Snack vending can help you capture more of this revenue opportunity Harris Interactive Workplace Snacking & Vending Machine Needs September 2010
3 MultiSnack planograms include the UK s favourite snack brands ensuring that your customers are getting the brands they want KIT KAT FOUR FINGER No.1 out of home confectionery line ¹ AERO PEPPERMINT No.1 mint chocolate bar out of home ² ROWNTREE S FRUIT PASTILLES UK s No.1 fruit sugar single ³ POLO ORIGINAL The best selling out of home mint 4 ROWNTREE S RANDOMS UK s No.2 fruit sugar single 5 YORKIE is Nestlé s #2 OOH confectionery brand & the second best seller in Multisnack 6 WALKERS account for 40 of the top 60 crisp lines and accounts for 77% of top 60 crisp total sale7* KIT KAT CHUNKY is growing at 10% year on year 8 Sources: 1 Delivered Wholesale data, MAT Dec 2010, 2 Delivered Wholesale data, MAT Dec 2010, 3 IRI, 52 w/e 8 th Oct 2011, 4 Delivered Wholesale data, MAT Dec 2010, 5 IRI, Total Market Fruit Sugar Singles, 52 week w/c 4 th December 2010, 6 P&H Sales data Sept 2011, 7 AC Nielsen Total Impulse CSN singles YTD , 8 AC Nielsen Total Market YTD Dec 2010
4 Our recommended layouts are based on consumer purchase behaviour Merchandise by Need State to Maximise Sales Why Need States? People purchase by product type according to their Need State* 18% of people will not purchase if the product type they want isn t available** Retail shows a 14% uplift when merchandising by Need State*** Which Need States? Key Need States are Snack, Hunger & Pleasure A2 A4 A6 A8 A CRISPS CRISPS CRISPS CRISPS SHARING BAG Crisps & Sharing Bags B2 B4 B6 B8 B CRISPS CRISPS CRISPS CRISPS SHARING BAG CONFECTIONERY C1/130 C2/131 C3/132 C4/133 C5/134 C6/135 C7/136 C8/137 C9/138 C10/ Yorkie Yorkie Yorkie Yorkie Yorkie Drifter Drifter Raisin & Original Hunger Original Original Toffee Crisp Raisin & Lion Lion Biscuit Biscuit PP PP PP PP PP PP PP PP D1/140 D2/141 D3/142 D4/143 D5/144 D6/145 D7/146 D8/147 D9/148 D10/ Kit Kat Kit Kat 4 Kit Kat Kit Kat Kit Kat Kit Kat 4 Kit Kat 4 Kit Kat 4 Chunky Chunky Flavour Chunky Chunky Finger Finger Finger Finger Snack & HungerDark Kit Kat Chunky Flavour Kit Kat 4 Finger Dark PP PP PP PP PP KKR KKR KKR KKR KKR E1/150 E2/151 E3/152 E4/153 E5/154 E6/155 E7/156 E8/157 E9/158 E10/ Aero Aero Aero Aero Aero Smarties Caramel Caramel Pepp Pepp Aero Milk Aero Milk Medium Medium Medium Pepp Medium Pleasure & Kids Bubbles Toffee Crisp Milkybar Medium PP PP PP PP PP PP PP PP PP PP F1/160 F2/161 F3/162 F4/163 F5/164 F6/165 F7/166 F8/167 F9/168 F10/ Polo Fruit Fruit Fruit Sugar Polo Polo Fruit Original Gums Pastilles Pastilles Fix It t Free Sugar Play Tube Tube Tube Polo Spearmin Rolo Rolo Munchies Use Best Practice Merchandising Principles Unmissible visibilty Site top selling lines most visible to maximise sales Favourite brands serve as a beacon to draw consumers to the machine Recognised brands are trusted so give consumers reassurance Space allocation Allocate space according to sales by Need State Multi-face best sellers in each Need State PP PP PP PP PP PP PP PP PP PP * Breathe Snack Vending Research Oct 2010 **mmr Snack Vending Research Sept 2010 ***Convenience Store Case Study February 2009
5 You can rely on us to look after your machines with our best in class technical service Our machine partner GVS is an expert in it s field: Manage site surveys, logistics & installation Train staff on site at installation Provides servicing, maintenance and technical helpline UK s largest team of specialist vending engineers 98.5%* response to service calls within 8 working hours 6 days a week 96.5%* fix first time rate 0.18%** call out rate PAC or PAT test at least once every 12 months Maximise your sales by minimising downtime Reassurance for you that your machines will be working *GVS records Jan-Dec 2011 **GVS records Jan-Dec 2010
6 Flexible terms to fit with what you need Freeon Loan (BIG RED only) 7.50 per week per week ICON Contract minimum period NA 3 years 3 years Contract maximum period NA 5 years 5 years Annual Nestle Volume target NA 230 cases 200 cases Crisps (walkers exclusivity) Unless taken as a guest line NA No target No target Maximum confectionery guest lines NA 3 6 Volume checked annually (if underperformed) BIG RED (AP) Contract minimum period 3 Years 3 years 3 years Contract maximum period 5 years 5 years 5 years Annual Nestle Volume target 230 cases 180 cases 150 cases Crisps (Walkers exclusivity) Unless taken as a guest line No target No target No target Maximum confectionery guest lines Volume checked annually (if underperformed) Move to 7.50
7 Flexible terms to fit with what you need Free on loan (BIG RED only) 7.50 per week per week Temination of contract Notice period for termination 3 months 3 months 3 months Uplifts within contract period No credit No credit No Credit Uplifts in rollover contracts 1 month 1 month 1 month Uplift charge no uplift fee no uplift fee no uplift fee No credit No credit No credit Year rental balance rental balance Year rental balance rental balance Year rental balance rental balance Included within package Delivery and Installation Free on charge Free on charge Free on charge Servicing and maintenance Free on charge Free on charge Free on charge Coin mechanism Included Included Included Response time 24 hours 24 hours 24 hours Rental payable by Direct debit Not applicable Quarterly Quarterly Telemetry (rollout Q3 2012) Q3 Q3 Q3 Route to market Open Open Open
8 Open RTM you choose where you buy from Select the RTM that works best for you: Consolidate supply chain and orders Simplify invoicing & payment terms OPTION A DIY Choose where you buy your product, clean & fill machine on-site OPTION B Operated Nestlé can organise for one of our operator partners to clean & fill the machines for you* *Please advise your Nestlé representative to set up an initial meeting, terms of service to be negotiated with operator
9 Glass Fronted Machines Machine Features Fully branded machine increases visibility to draw customers to the machine Full-view illuminated display window drives impulse sales glass or Makrolon front Large capacity models hold over 1000 products for every snacking need Less frequent filling reduces staff time for optimum profits Full electronic audit facility to record sales & takings data Programmable timer facility enables machine shut down Chilled machine for optimum product condition even when machine is shut down Large capacity coin mechanism or can be fitted with your cashless payment system Premium quality machines for robustness & reliability Can be bracketed to both floor & walls Vandal & theft resistant Machine complies with all relevant UK & European legislation Machine Width Depth Height Weight No of Spirals No of Units MULTISNACK mm 905mm 1,830mm 358 kg 55 Over 1,000 MULTISNACK mm 905mm 1,830mm 312kg 44 c1000 MULTISNACK 44S 855mm 710mm 1,830mm 267kg 44 c800
10 Vending can make a site 12,500 profit per machine over 3 year period* Our research shows that a site can make up to 12,500 in profit over 3 year period through MultiSnack vending. 26,880-14,244 = 12,636 Revenue minus costs = PROFIT Increase this by up to 53% by placing the machine in a high footfall area** *Based on Rental Option 1 -Icon machine and Big Red (AP) Rental Option 1 **MMR Snack Vending Qualitative Research, Sept 2010
11 Profit: BIG RED (AP) - Free On Loan You sell 230 cases confec p/a = 9,200 single units (40 units per case) You sell 100 cases crisps p/a = 4,800 single units (48 units per case) 14,000 singles (400 cases) x 0.80 per vend = 11,200 11,200 x 3 year contract = 33,600 33,600 VAT (20%) = 26,880 Costs: 9,200 singles (300 cases confec) x 0.37 per single confec = 3,404 4,800 singles (100 cases crisps) x 0.28 per single crisp = 1,344 4,748 x 3 year contract = 14,244 26,880-14,244 = 12,636 over 3 year contract
12 New Planagrams have been created for Leisure based on the new commercials Leisure FOL Leisure 7.50 Leisure Created from consumption insight to maximise throughput Full list planagrams published in the decks and on intranet Options for hanging bags are also available
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