G Series Fit Overview

Summary

1. G Fit Proposition 2. Consumer 3. Product Offerings 4. 360 Marketing Media Digital Influencers Launch Events 5. Financial Drivers 6. Distribution 7. If your markets are interested

Reminder: US Line Up
01 Prime (Before) 02 Perform (During) 03 Recover (After)

G Series PRO

Gatorlytes Carb + B Vitman Drink Carb Energy Drink Nutrition Bar Energy Bites Endurance Formula POWDER / RTD Low Cal Hydration powder Protein Recovery Shake Protein Recovery Beverage Protein Restorative Smoothie

G Series PERFORMANCE
Energy Pouch G RTD G2 RTD G Powder G2 Powder Protein RTD

G Series FIT
Energy Bites RTD Smoothie

G FIT: A Focused Launch

To build a solid foundation for future growth, we will: Know the Fitness Athlete cold and develop the best products to meet their needs Physical body needs Behaviors Desires Be where the Fitness Athlete: Shops Sweats Looks for Fitness information and Community Partner with the most credible influencers to be G FIT ambassadors and amplify the message Add athletes to the G Roster which represent the fitness activities of the Fitness Athletes Create pre-launch buzz through PR and partnership activation Support with dedicated Print, TV and Digital campaigns

G Fit Proposition and Consumer

Fitness Athlete 101 and Proposition

Fitness Athlete Deep Dive AMANDA PEREZ

about me... I love to workout Its a huge part of my life I fit it in whenever I can I feel out of sync if I dont get my workout in Ill even double up the next day if I have a bad workout I run outside year-round Working out gives me a sense of accomplishment Looking good makes me feel like I can conquer anything

Fitness Athlete Deep Dive AMANDA PEREZ

DAY WORKOUT

LAST WEEKS WORKOUT

MONDAY

Running in the park, 6 miles Zumba class (40 min) + strength training at the gym (45 min) Running at the gym, 5 miles REST Pilates class at the gym (55 min) Spinning class at the gym (50min) REST

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

SUNDAY

Fitness Athlete Deep Dive AMANDA PEREZ

MONDAY

WHAT IM EATING TODAY

Breakfast

Wanted something with protein and vitamins to start the day right. Had to find something in the cafeteria. Need something with 100-200 calories and protein, to keep the hunger out. Having pizza at lunch with Ali and I shouldnt have more than one slice. Slice of veggie pizza.. Hmmm.. oily but Ill be good for the rest of the day. Grab a snack from my bag. Only had time to pack an apple and a cookie. Left-over chicken with a small salad from the deli.

Snack

Lunch

Snack

Dinner

Fitness Athlete: Competitive Set and Consumption

COMPETITIVE SET that I ACCESS get at a... and consume when Im... OCCASIONS

BEFORE
Peanut Butter Fruit Bars College Cafeteria Drug Stores On The Go In Class, at my desk

DURING
Reusable Water Bottle Bottled Water Drinking Fountain Gym.. On my way IN Mass Stores On the Treadmill Resting between sets In a class

AFTER
Healthy DinnerVitamin Water Protein Bars Gym..On my way OUT Drug Stores On the Go At Home Leaving the Gym

Athletes clearly understand hydration needs, but need more education about before/after
Energy Boost 50% Fitness Performance 84% Hydration 88% Energy Management 86% Recovery/ Prevention 55%

Sometimes I feel mentally and physically exhausted and need a boost to make sure I get the most out of my workout

I am constantly working to improve my workout-- faster time, a longer run, a bit more weight.

When Im working out I just get plain thirsty. Nothing refreshes me better than water

Im never sure when Im going to squeeze my workout in so I need to manage my energy levels to be sure I start strong

My workout fuels my life so its important for me to come back strong tomorrow.

%s reflect percent of Competitive Athletes that possess need state Source: Nutritional Needs States Segmentation, n = 4177; G Series Qualitative, TrendinG

Product Offerings and Benefits

01. PRIME ENERGY MANAGEMENT

02. PERFORM HIGH EFFICIENCY HYDRATION

03. RECOVER LEAN MUSCLE REPAIR

Product Offering - Reason to Believe

360 Activation and Launch Events

360 Marketing Plan

Protein intake post exercise supplies the necessary amino acids to stimulate and support an elevated rate of muscle protein synthesis to help build lean muscle mass. Emerging evidence suggests that vitamin D status influences muscle function and may influence the potential growth of lean body mass in response to regular exercise training. - Our science research program will help us understand the possible synergies (protein and vitamin D are consumed after exercise to repair and build muscle. - The combination of protein and fiber may provide an additional benefit of promoting satiety at subsequent meals. OUR PRODUCT - low acid dairy protein - 11.6 OZ - 120 calories - delivers an excellent source of high quality protein (12g)

Media Partners

TV & Print Creative

20

Television

Print

INTRODUCING G SERIES FIT.

Theres more than one kind of athlete, thats why theres more than one kind of Gatorade.

who not only want to customize their workout, but also get all the fuel they need. For athletes who want all the effectiveness

THE ONLY THING WE HAVENT DONE IS SET YOUR ALARM CLOCK.

theyve come to expect from Gatorade, but in a lighter, crisper form. And for athletes who want a recovery drink that gives them the protein they need but with less calories. If you are one of these athletes, theres the G Series Fit. Its your fuel advantage before, during and after your workout.

Digital Plan
G Series Fit Digital Engagement Objectives:
Get Fitness Athletes to believe G Series FIT is for them Drive broad awareness of G Series FIT

Pre Launch Activity

Introduced G Series FIT products to long lead media and influencers at NY media event (November) influencers
Built buzz through whispers and first-look coverage, generating 18MM+ total impressions to date whispers first22

G Series FIT was named Beverage Best Workout Beverage Magazine in Health Magazines 2011 Fitness Buys, to appear in the June issue

Launch Event
G Series FIT official launch event brought together over 235 athletes, celebrities and
influencers The star studded event included 5 of the G FIT athletes and celebrities such as Minka Kelly, Chace Crawford (Gossip Girl), Ryan Phillippe (The Lincoln Lawyer) Top-tier attending media included MTV, E! News, ESPN, Extra, People and US Weekly and the athletes and party attendees began making a splash in social media from the party Over 52 Million impressions have been made in the 2 days following the event

G FIT Athletes

Celebrities

23

THE G FIT TEAM: Key Fit Community Influencers

THE KEY INFLUENCERS IN THE FITNESS COMMUNITY

Jay Blahnik, Keli Roberts, Julz Arney, Amy Dixon, Stacey Lei Krauss, Todd Durkin, Gregg Cook, Josh Crosby, Petra Kolber, Mindy Mylrea, Kimberly Spreen, Douglas Brooks, Laurence Bisconti, Robb Glick

Integrating with the Key Fitness Industry Influencers

25

Partnerships with key influencer organizations, including Official Sports Nutrition Partner of IDEA Install G Series FIT gym and integrate Prime, Perform and Recover samples before, during and after workouts reaching more than 9,000 fitness professionals with 1-on-1 experience

Implement GSSI education sessions on pre, during and post nutrition for fitness athletes Post on ECA: The G Series FIT room was spectacular, for some bizarre reason you
just get extra fuel when you step in to the room. Don't know if it was the lights, posters...can't put my finger on it but there was some energy in the room....loved it! Thank you for such a great event.

Finances key cost drivers

Key Cost Drivers between Base Gatorade 02 and G Fit 02

Drivers of Cost Increase
Total GOCS GAT Base FIT GAT Base 20 oz pk 16oz 6pk per oz $ $ $ $ $ $ $ $ $ 0.25 0.97 0.32 0.07 0.07 0.07 0.11 0.32 0.00 $ $ $ $ $ $ $ $ $ 0.33 1.78 0.63 0.07 0.11 0.17 1.01 0.02 $ $ $ $ $ $ $ $ $ 0.013 0.049 0.016 0.003 0.003 0.003 0.006 0.016 0.000 FIT per oz $ $ $ $ $ $ $ $ $ 0.021 0.111 0.039 0.004 0.007 0.010 0.063 0.001

1. Scale Base Gatorade is

a $4B business with more efficiencies

Ingredients Package Material Variable Manufacturing Royalty Fixed Manufacturing Warehousing Variable Warehousing Fixed Transportation Variable Transportation Fixed

2. Bottle - Fits in FA's life

and consumption behavior. Designed to be squeezable--hence not a hot fill bottle. significantly more expensive A sweetener

Total

2.18

4.10

0.11

0.26

3. Cap: sports cap is

4. Ingredients include Reb

27

Retail Execution Strategy

Retail Segmentation and Shelf Transformation

If your markets are interested

1. Discuss with Support Center and with your cross functional team 2. Kick-off SRA process and ensure regulatory approval 3. Import samples for further assessments and possible testing 4. Include it on R&D Contracts 5. Develop launch plan if deemed a good fit

Appendix

FITNESS ATHLETE 101

What do they look like demographically ?

Why do they work so hard?

When and where do they workout?

BULLS-EYE: 18-24 50% male 50% female

confidence through beating their personal best and experiencing a tighter, leaner, stronger and more sophisticated body = self image and worth

4-5 times per week.

at work/school/priv ate gym, in their home with free weights or running outside they protect their 45-60 minute morning, afternoon or evening workout.

SECONDARY: 25-35 50% male 50% female

Their day feels incomplete if they dont workout/exercise.

Fitness 01: PRIME R&D and Nutrition

Product Background
Consumer Rationale: A pre-workout food product that will provide fast and lasting energy to carry fitness athletes through their workout Description: Four ~1 x 2 bars packed in perforated trays to enable customized portioning Claims: Natural Fruit and Nuts Flavors: Cranberry Pistachio, Cinnamon Raisin, Banana Nut (G-Fit & Pro), Blueberry Almond Oat (Pro only)

Key Accomplishments
Eliminated issue of wafer paper tearing during cutting after 3 plant trials and numerous equipment modifications and process changes Demonstrated acceptable texture throughout 4 months of shelf-life studies Resolved regulatory issue on PPO treated pistachios that did not meet Canadian standards by implementing a degassing period with supplier Reduced moisture formulations have greatly reduced yield losses caused by excessive product stickiness experienced at the last plant trial Narrowed down 9 flavor variables to 4 through multiple consumer tests Developed high barrier thermoformed tray with peelable seal and N2 headspace treatment to enhance freshness Incorporated portion control functionality to deliver against athlete need for metered energy and portability Nutritionals Serving Size = 48 g Calories 190-200 Total Fat 8g Sodium 70 mg Potassium 190mg Total Carbohydrate 27g Sugars 17g Fiber 2g Protein 6g Vitamin E 10% DV
INGREDIENTS: ALMONDS, SUCROSE, INVERT SYRUP, FREEZE DRIED BANANAS, OAT FLOUR, WHEY PROTEIN ISOLATE, GROUND PEANUTS, GLYCERIN, PEANUTS, SEMISWEET CHOCOLATE CHIPS (SUCROSE, CHOCOLATE LIQUOR, COCOA BUTTER, SOY LECITHIN, VANILLA EXTRACT), WATER, POTATO STARCH, SOY LECITHIN, MALTODEXTRIN, NATURAL FLAVOR, CITRIC ACID, SODIUM CHLORIDE, SODIUM CITRATE, MONOPOTASSIUM PHOSPHATE, NATURAL MIXED

Remaining Challenges / Next Steps

Single source ingredients- Wafer paper, pistachios, almond paste, almond butter, and Soluoats Request for Gluten Free poses significant cost implications due to the requirement for dedicated equipment/transport. In process of completing cost study by end of year. Fielding an IHUT in early January for consumer perspective of product in package and how it is used Improving the operating window for tray de-nesting through equipment and tray tolerance optimization Optimizing performance of the merchandising sleeve and caddy to improve shelf presentation

Upcoming Milestones
Equipment installation Sales Samples Production IHUT results Start Pack 11/29/10 12/6/10 1/19/11 1/24/11

Technical Team Members

Nirvana Chapman Joe Farinella Dmitriy Shmagin Marge Larocco PD Eng Pkg R&D QA

01 PRIME Consumer Need and Product Composition

CONSUMER NEED: I need the right amount of fuel in my tank to maintain my energy level and stave off my hunger so I can have the best workout possible. PRODUCT IDEA: New Gatorade Energy Bites are a pre-workout fuel that give you a smart, delicious way to prepare for your workout by providing your body with the carbohydrates and nutrients it needs to get the most out of your workout and enabling you to control your portion size based on the workout you plan to do. GATORADE ADVANTAGE: Enriched with the trusted Gatorade Sport and Science Institute G-Blend of electrolytes, plus essential A, D, E and B vitamins. Unique first ever packaging solution that enables the athlete to manage their energy level based on the timing and duration of their workout PRODUCT COMPOSITION 50g portion with ability to customize portion size based on energy needs Mixture of macro-nutrients to deliver longer lasting energy - Lengthier digestion and slower absorption of nutrients - Made from natural ingredients Complex carbohydrates from dried fruit, nuts seeds, hydrolyzed oats 5g of protein from whey and nuts (a good source of protein) Target 180 calories The mixture of macronutrients in the formula enable us to deliver a steadier flow of energy than simple carbohydrates Inspired by nature, engineered by G

Fitness 02: PERFORM R&D and Nutrition

Product Description
Rationale: Lightly flavored & sweetened electrolyte beverage for use during exercise, and help consumers to push through their workout. Description: RTD in a 16oz bottle with sports cap. Bottle material is flexible to allow squeezability. Claims: Workout hydration Flavors: Mango Passionfruit, Melon Pear, Acai Blueberry Package: Warm fill 25g aseptic squeeze bottle with push/pull sport closure system induction sealed

Key Accomplishments
Final formula completed and FTD submitted within timeline. Successfully unlocked and delivered consumers sensory requirement of light beverage. Modified the cold-fill aseptic line to fill lower fill weight bottle, and as a result able to minimize recirculation. Created two bottle designs 1) hot-fill version for sales samples run on modified pilot plant line in Barrington and 2) commercial cold-fill design to be run on aseptic line in Tolleson

Nutritionals
Serving Size = 8 fl oz Calories 10 Sodium 110mg Potassium 30mg Total Carbohydrate 3g Sugars 2g
INGREDIENTS: WATER, ISOMULTALOSE, NATURAL FLAVORS, SUCROSE, SODIUM CHLORIDE, CITRIC ACID, MONOPOTASSIUM PHOSPHATE, SODIUM LACTATE, LACTIC ACID, REB A (PUREVIA )

Remaining Challenges / Next Steps

Single vendor supply of isomultalose. Procurement group currently working to address. Confirm shelf life (9 months) of final product / package after first production. Current shelf life study is based on pilot plant scaled up products in non-final packages (Passing at 4 months). Confirm full qualification after line modification at Tolleson plant. Line capabilities and packaging qualification will be completed by end of 1/24/2011. Full line qualification will be completed after products passes micro end of Feb. CQV of bottle and closure performance on filling line to be completed at start-up

Next steps
NFL Qualification Line Qualification / Start Pack 1 / 17 / 2011 1 / 24 / 2011

Technical Team Members

Michelle Wee Amenah Ibrahim Dmitriy Shmagin Jesse Patrick PD Eng Pkg R&D QA

02 PERFORM Consumer Need and Product Composition

CONSUMER NEED: I know I need to be hydrated to have a good workout, but I dont want to drink too much and dont think Im working out hard enough for a real sports drink. I prefer the clean taste of water. PRODUCT IDEA: A beverage that hydrates more efficiently than water and invigorates your senses to keep you pushing through a workout. GATORADE ADVANTAGE: It combines a natural source of electrolytes and fruit flavors to deliver a light, crisp taste without weighing you down. Bottle is designed for use in gyms. PRODUCT COMPOSITION Sensory profile of the ideal fitness water is light like water, and flavorful enough to stimulate drinking during activity without becoming too sweet and cloying during activity - Light clean taste with a hint of cooling to refresh the athlete during their workout Gatorade level of electrolytes - New proprietary salt blend to deliver efficacious level of electrolytes with less taste impact 10 Calories or less - Blend of sucrose and isomultalose and Reb A

Fitness 03: RECOVER R&D and Nutrition

Product Description
Rationale: Post game Protein Recovery Beverage including protein, vitamin D and CLA developed to meet the post-workout needs of the fitness athlete Description: Light & refreshing smoothie beverage Claims: 12 g of protein, 6 g of essential amino acids, 1.5 g CLA, 50% DV vitamin D, 20% DV calcium Flavors: Strawberry Banana, Mango Pineapple, Mixed Berry

Nutritionals
Serving Size = 330 ml Calories 120 Total Fat 2g Sodium 280 mg Potassium 35mg Total Carbohydrate 14g Sugars 14g Fiber 0g Protein 12 g Vitamin D 50% DV Calcium 20% DV Vitamin A 10% DV Vitamin E 10% DV
INGREDIENTS: WATER, HYDROLYZED WHEY PROTEIN, BANANA PUREE CONCENTRATE,APPLE JUICE CONCENTRATE, SUCROSE, CONJUGATED LINOLEIC ACID (CLA), NATURAL FLAVORS, SODIUM LACATE, PHOSPHORIC ACID, GELLAN GUM, SODIUM BISULFATE, CITRIC ACID, MALIC ACID, CALCIUM CARBONATE, MONO & DIGLYCERIDES, CHOLECALCIFEROL (VITAMIN D3), SODIUM CHLORIDE, VITAMIN A PALMITATE, VITAMIN E, SUCRALOSE, CARMINE EXTRACT (FOR COLOR), ACESULFAME POTASSIUM.
,

Key Accomplishments
Quickly moved to acidified formulas to improve consumer acceptance scores Successful plant trial to validate acidified formula process Completed production of sales samples Process Qualification Test conducted micro results due 1/5/11

Remaining Challenges
Continued product improvements to boost consumer acceptance. Current RGT in field with optimized products with improved sweet/tart balance and flavor delivery Results due 12/10/10 Production of flavor concentrates on time to meet start pack. We are working with ingredient suppliers to meet timelines with expectations of air freight required. Confirm shelf stability. 9 month shelf life at ambient temperatures will be completed ~ 6/2011

Next steps
RGT results Scale up of new flavor systems @ Valhalla Micro results of Qualification test Start Pack 12/10 12/6 1/5/2011 1/24/ 2011

Technical Team Members

Eilleen McGeady Craig Hutson Nick David Jesse Patrick PD Eng Pkg R&D QA

03 RECOVER Consumer Need and Product Composition

CONSUMER NEED: I want to make sure Im doing everything I can both inside and outside the gym - to have a lean and toned athletic body PRODUCT COMPOSITION Protein intake post exercise supplies the necessary amino acids to stimulate and support an elevated rate of muscle protein synthesis to help build lean muscle mass. Emerging evidence suggests that vitamin D status influences muscle function and may influence the potential growth of lean body mass in response to regular exercise training. - Our science research program will help us understand the possible synergies (protein and vitamin D are consumed after exercise to repair and build muscle. - The combination of protein and fiber may provide an additional benefit of promoting satiety at subsequent meals. OUR PRODUCT - low acid dairy protein - 11.6 OZ - 120 calories - delivers an excellent source of high quality protein (12g)

PRODUCT IDEA: The functional beverage your body needs after a workout to increase lean muscle and help reduce body fat. GATORADE ADVANTAGE: Developed for your athletic needs, it includes a blend of natural ingredients including protein, carbohydrates and vitamins.