THE COCA-COLA COMPANY SHOWCASES SHOPPER-DRIVEN INNOVATION AT NACS 2006

With innovative new products and remarkable shopper insights derived from extensive research, The Coca-Cola Company has the brands and the brains to help drive c-store business from the pump to the cold vault. Joining the lineup of world-leading beverages is groundbreaking

Coca-Cola BlaK, the cola with a coffee essence, and Gold PeakT premium iced tea, while the energy category gets a boost from Full Throttle Blue Demon and hybrids gain a new entry with VAULT RED BLITZ. While products and brand extensions capture headlines, what’s really grabbing the attention of convenience retailers are the extensive shopper insights now available based on the Company’s numerous and extensive research initiatives. Four studies will be showcased at NACS, including the Landmark Shopper Study, the largest study ever conducted to examine U.S. shopping habits based on need states. In addition, Coca-Cola representatives will share findings from a convenience retail Consumer Segmentation Study and the PathTracker® Study, while the NACS/Coca-Cola Leadership Council and retailers present business-building strategies targeting teens, based on last year’s study, “Convenience Teens: Building Loyalty with the Next Generation.” Convenience stores gain new business resources through www.cokesolutions.com, and a surprisingly simple solution to boost fountain sales, the Checkout Cup Dispenser, will debut.

PRODUCT INNOVATION

Full Throttle Blue Demon
This November, Full Throttle initiates the newest member of its gang — Blue Demon — a great, crisp beverage alternative for guys, ages 20 to 30, with a “real man,” blue-collar mentality. Featuring the unique and exotic taste of Agave Azul flavoring, this energy product has a strong appeal to Hispanic consumers. Sixteen-ounce cans and POS materials display bilingual graphics. The Full Throttle brand has skyrocketed since its introduction two years ago, surpassing dozens of other beverages in the energy drink category to become the fourth-largest energy drink brand. The new line extension will be supported by a targeted marketing campaign to drive awareness, trial and retail velocity.

VAULT RED BLITZ
VAULT RED BLITZ is a powerful new addition to the VAULT hybrid energy soda line that DRINKS LIKE A SODA, KICKS LIKE AN ENERGY DRINKT. Available in March 2007, Berry injected VAULT RED BLITZ is for guys with a Get To ItT mentality. Like all VAULT products, RED BLITZ takes taste, refreshment and energy kick to the next level.

Coca-Cola BlaK
Offering the refreshing taste of an ice-cold Coca-Cola with a rich essence of coffee, Coca-Cola BlaK is the perfect pick-me-up any time of the day. Designed to appeal to adult consumers looking for an indulgent and revitalizing alternative to other beverages, Coca-Cola BlaK is a mid-calorie beverage with only 45 calories per serving. It is packaged in a resealable version of Coca-Cola’s signature 8-ounce glass contour bottle, enveloped in sophisticated and stylish graphics. Coca-Cola BlaK is available in individual bottles and four-packs. The product, which debuted in April, is supported by a fully integrated program featuring traditional and non-traditional media.

Gold PeakT
The timeless flavor of classic, authentic iced tea is revived with Gold PeakT, a premium ready-to-drink (RTD) iced tea. Targeting consumers who prefer fresh, homemade taste, the new beverage comes in five great flavors including Sweetened, Unsweetened, Lemon, Diet and Green Tea. Gold Peak’s unique 16.9-ounce single-serve carafe-like glass bottle bears a label featuring a tranquil lakeside scene. The premium label, together with the product’s rich color displayed in the clear bottle, enables Gold Peak to stand out among other teas as a sophisticated, upscale brand in the fast-growing premium and super-premium RTD segments. Gold Peak is supported with a fully integrated marketing program including national print and radio advertising, point-of-purchase displays, an interactive Web site, public relations and national sampling programs.

Godiva Belgian Blends
Godiva Belgian Blends, is a new line of premium blend beverages with the utterly tantalizing taste of Godiva chocolate and a sensory experience that is more decadent than just plain coffee. Available in three luxurious flavors — Dark Chocolate Mocha, Milk Chocolate Mocha and French Vanilla Latte – the drinks are sold in stylish 9.5-ounce glass single bottles and four-packs.

CONSUMER INSIGHTS

Landmark Shopper Study
Groundbreaking in terms of its breadth and findings, The Landmark Study is a major research initiative commissioned by The Coca-Cola Company that examines U.S. shopping habits across shopping need states in seven channels, including convenience retail, supermarket, club, mass merchandiser, supercenter and dollar stores. Some 60,000 consumers participated in this massive study. Because it focuses on needs rather than channels, the findings are aligned with the way shoppers shop and provide a completely new approach to reaching them. Coca-Cola representatives are in the process of presenting findings to retailers, who are learning why shoppers frequent their stores. In addition, The Company is developing marketing strategies with customers to deliver the right brands to meet their shoppers’ various need states. And, there is more to come as additional studies are under way to further enhance the findings.

Convenience Retail Channel: Consumer Segmentation Study
The third wave of convenience retail consumer segmentation studies (earlier research was conducted in 2001 and 1999) offers numerous insights to convenience retailers, including one with a distinctive foreign accent. The emergence of the Hispanic shopper impacts every retailer, not just those located in areas close to where this important shopper lives. Hispanics tend to shop convenience stores located near where they work and this information is not captured by traditional demographic mapping techniques. To build loyalty with these shoppers, retailers should consider loyalty card programs, stocking brands preferred by Hispanics and Spanish-language POS materials, in addition to other tactics. The Segmentation Study also focuses on the importance of secondary cooling equipment, such as countertop coolers, vendors and barrels – including a new electronic barrel available from Coke that operates without ice. This type of equipment, along with promotional messaging, spurs a 20 percent incidence of impulse sales, which are crucial to convenience stores. A new “Men at Work” program is being created to help operators market to 18 percent of shoppers who buy for consumption later in the day, according to the study. Research points to multiple other opportunities that exist for convenience retailers, such as fulfilling an emerging need for shopper fill-in occasions.

PathTracker® Study
New research from The Coca-Cola Company tracked shoppers as they traveled through convenience retail stores, and the cameras candidly tell a revealing story. Among the key findings: store format (traditional or new concept) drives traffic patterns; if you get shoppers to the cold vault, they will buy; and while many already know what beverage they want, up to 30 percent of beverage choices can be influenced in the store. Research also indicates that 75 percent of shoppers who pass by a cold vault actively shop for a beverage and more than 90 percent of shoppers who actively shop the cold vault area make a purchase, spending about 20 seconds making their beverage selection. In addition, typical shoppers spend about 2.8 minutes in a traditional format store and only 2.4 minutes in new concept format. The PathTracker® Study is loaded with other significant findings, as well as recommendations to help retailers boost profits.

NACS Workshop Helps Retailers Build Teen Loyalty
The NACS/Coca-Cola Leadership Council has done something few people can claim: get inside the minds of teenagers. As a follow-up to last year’s study, “Convenience Teens: Building Loyalty with the Next Generation,” the Council is sharing further insights and practical applications at the annual NACS Show to help convenience retailers build business with this important customer segment. The energy-packed session includes a unique look into “A Day in the Life of Teens” and data about how convenience teens use the Internet and other technology-based communications to spread the word about their retail experiences. In addition, retailers will describe specific actions they’ve taken to build business with these young shoppers. This special session will be presented Oct. 11, 2006, from 8:00 a.m. to 9:00 a.m. in room 116 of the Las Vegas Convention Center.

STRATEGIC RESOURCES

www.cokesolutions.com
Convenience retailers now have a powerful new online business-building resource from The Coca-Cola Company, providing tools they can immediately use to help build profits. A new Web site — www.cokesolutions.com — serves as a virtual account manager, offering access to solutions that showcase practical ways to handle the most pressing business issues. Operators can log on to receive the latest information about Coca-Cola Company promotions, programs, marketing and merchandising, as well as exclusive discounts. In addition, the site has a learning center filled with insights from industry experts to help independent operators become more successful. Operators can sign up by visiting the site or talking with their Coca-Cola account representative.

Checkout Cup Dispenser
Retailers seeking something surprisingly simple and inexpensive to boost beverage sales will be excited by the stunningly successful Checkout Cup Dispenser program. The concept: a cup dispenser with 44-ounce translucent cups sits on the checkout counter with messaging that suggests purchase of a fountain drink. The objective is to stimulate sales among people who enter the store and don’t typically purchase a beverage. These “dry occasions” account for half of in-store visits. Pilot tests reported a 50 percent increase in fountain sales, which are among the most profitable items in convenience stores.