Reyka Asia Summit Recap / April 2014 / Gemma Adams & Aoife Sadlier

1. Reyka Asia Summit Recap / April 2014 / Gemma Adams & Aoife Sadlier

2. This is an exciting time for William Grant & Sons, for our distillers in Iceland and for our partners all over the world. But it is even more exciting for the resourceful, inventive people everywhere who search for distinctively original, meticulously made ideas. Velkomnir. Welcome to Reyka. Wonderfully handcrafted vodka.Made of Iceland.

3. Workshop Objectives Define the full potential for Reyka in each market. Harness and share creative ideas to build the brand. Collaborate to build a winning growth strategy for Asia. Required Action Markets to consider how this fits within their current planand what might need to evolve to align.

4. Deliverables What we learned in 3 categories. Target Consumer Messaging Drink Strategy

5. Messaging Drink Strategy Target Consumer Build Reykain theOn-trade Build consumer desire & advocacy and adapt for emerging markets Roll out into new markets with neighbourhood /on-trade seeding focus A compelling soundbite With comms to support A single-minded serve supported with brand communications Influencer approach to targeting consumer Message hierarchy to guide sales and marketing Relevant brand tactics to drive sampling Tools to support serve ritual

6. Before we build our future in Asia, let’s look at what we’ve built so far.

7. Global Brand Strategy Become the thought leader in the “Premium Craft” vodka segment Brand Vision Brand Mission Create a following of evangelists who embrace our Inventive Spirit Deliver past the 5yr plan Brand Ambition 2018 We will lead the exciting, emerging premium craft vodka segment, by sharing our compelling, unique & definitive premium craft story with future evangelists inspiring them to adopt & advocate the brand   Growth Strategy Build Reyka in the on trade Build consumer desire & advocacy (make consumers really, really want us) Roll out into new markets with “neighbourhood /on trade seeding focus Strategic imperatives Differentiated brand comms that bring our brand essence to life; Experiential, RM, PR, sampling, activation periods On trade strategy Lighthouse accounts Bartender engagement Visibility/tools 5yr roll out plan Launch strategy & toolkit Market best practise Growth Drivers Brand Enabler: Right level of A&P investment & resource Brand activation platform Local premium price positioning Iceland Distillery

8. The Opportunity Vodka is the fastest growing premium spirits category in Asia. Reykais the fastest growing WGS brand with 103% growth versus 2012. Plus, Reyka is the smoothest, purest, best tasting, most thoughtfully produced vodka on the planet.

9. Target ConsumerA look at what’s driving the market.

10. People at the Forefront of Change CREATIVE TREND-SETTERSCultural and fashion forwards who have first exposure to launch events and promotions DIASPORA Locals with foreign experience(and expats) seeking to replicate the same brands or serves at home, who are drinking in the same places as locals – often a catalyst effect for supply and trial YOUNG WOMENin each cohort are driving sales by leveraging white spirits to redefine gender roles

11. THE DIASPORAS • Influential market importing their drinking culture from overseas • STORIES:Are the currency of cultural exchange. The better the story, the more likely they will import it and share. SEEK DRINKS / SERVE AT HOME: And take pride in being cultural pollinators. IMPORTING DRINKING CULTURES: From global metropolitans, influencing consumption, setting up new businesses. BEYOND ALCOHOL: Also instrumental in importing culture of specialty coffee bars in Singapore.

12. CREATIVE TREND-SETTERS • Consumers with an inventive lean • THE DIASPORAS • Influential market importing their drinking culture from overseas SELF-ACCOMPLISHMENT: Value the journey. ‘Closing-a-deal’ less important (than artistic direction). EXPOSURE TO CULTURES: More internationalised, through media, travel or work. DARE TO BE DIFFERENT: Less about conformity; more about expressing personal style and personality. SELECTIVE VENUES: Less mainstream venues – e.g., artisan bars.; experiment with drinks and drinking. BRANDS REFLECT IMAGE: Stand out from masses; usually imported brands, or overseas culture. • STORIES:Are the currency of cultural exchange. The better the story, the more likely they will import it and share. SEEK DRINKS / SERVE AT HOME: And take pride in being cultural pollinators. IMPORTING DRINKING CULTURES: From global metropolitans, influencing consumption, setting up new businesses. BEYOND ALCOHOL: Also instrumental in importing culture of specialty coffee bars in Singapore.

13. CREATIVE TREND-SETTERS • Consumers with an inventive lean • THE DIASPORAS • Influential market importing their drinking culture from overseas SELF-ACCOMPLISHMENT: Value the journey. ‘Closing-a-deal’ less important (than artistic direction). EXPOSURE TO CULTURES: More internationalised, through media, travel or work. DARE TO BE DIFFERENT: Less about conformity; more about expressing personal style and personality. SELECTIVE VENUES: Less mainstream venues – e.g., artisan bars.; experiment with drinks and drinking. BRANDS REFLECT IMAGE: Stand out from masses; usually imported brands, or overseas culture. • STORIES:Are the currency of cultural exchange. The better the story, the more likely they will import it and share. SEEK DRINKS / SERVE AT HOME: And take pride in being cultural pollinators. IMPORTING DRINKING CULTURES: From global metropolitans, influencing consumption, setting up new businesses. BEYOND ALCOHOL: Also instrumental in importing culture of specialty coffee bars in Singapore. BROADER MARKET

14. The Young Female consumer is not a separate target, but is a core and underserved • demo across the Diasporas and Creative Trend-Setters • CREATIVE TREND-SETTERS • Consumers from with an inventive lean • THE DIASPORAS • Influential market importing their drinking culture from overseas • YOUNG FEMALE • / Epicenter Target / • White spirits are a gender re-defining symbol for modern women in emerging markets. SELF-ACCOMPLISHMENT: Value the journey. ‘Closing-a-deal’ less important (than artistic direction). EXPOSURE TO CULTURES: More internationalised, through media, travel or work. DARE TO BE DIFFERENT: Less about conformity; more about expressing personal style and personality. SELECTIVE VENUES: Less mainstream venues – e.g., artisan bars.; experiment with drinks and drinking. BRANDS REFLECT IMAGE: Stand out from masses; usually imported brands, or overseas culture. • STORIES:Are the currency of cultural exchange. The better the story, the more likely they will import it and share. SEEK DRINKS / SERVE AT HOME: And take pride in being cultural pollinators. IMPORTING DRINKING CULTURES: From global metropolitans, influencing consumption, setting up new businesses. BEYOND ALCOHOL: Also instrumental in importing culture of specialty coffee bars in Singapore. BROADER MARKET GENDER ROLES REDEFINED: Making choices on their own (predominantly men make decisions on drink choices; attracting women in clubs with table drinks). WHITE SPIRITS OVER BROWN: More feminine, less associated with matured businessmen. GROUPS / SINGLES: In groups, consuming by the bottles. Single females are occupying previously masculine bar-table spaces. INQUISITIVE: Now more likely to value new things and experiences. Inquisitive as to how drinks are made, different tastes and preferences. Not shy to ask men / bar-tenders.

15. IMPLICATIONS FOR REYKA: LASER FOCUS TARGETING REQUIRED FOCUS ON THE DIASPORA AND THE CREATIVE TREND-SETTER FEELS LIKE A NATURAL FIT FOR REYKA TO DRIVE GROWTH WHILE BUILDING OUR CULTURAL EQUITY THE YOUNG FEMALE CONSUMER IS NOT A SEPARATE TARGET, BUT IS A CORE AND UNDERSERVED DEMO ACROSS THE DIASPORAS AND CREATIVE TREND-SETTERS OPPORTUNITY TO BE MORE SELECTIVE ABOUT SEEDING SOLID GRASS ROOTS FOR THE BRAND, WITH A FOCUS ON CONNECTING THE CREATIVE TREND-SETTER AND THE DIASPORA AROUND OUR UNIQUE PRODUCT AND STORY LEVERAGING ICELAND AND ITS CULTURE WILL APPEAL TO BOTH TARGETS AND SET THE CYCLE OF INFLUENCE IN MOTION

16. MessagingWhat does Reyka want to say? And what will resonate?

17. What brand elements stand out in mature markets vs. emerging markets?Finding the most relevant message for Asian markets.

18. Our Story • M A T U R E M A R K E T S ICELAND SMOOTH TASTE hot travel destination PREMIUM small batch clean energy INVENTIVE UNIQUE PURE ARCTIC WATER CRAFT PURITY LAVA ROCK FILTRATION CARTER HEAD STILL mysterymyths folklore

19. Our Story • M A T U R E M A R K E T S ICELAND SMOOTH TASTE small batch CRAFT LAVA ROCK FILTRATION CARTER HEAD STILL In mature markets the ICELAND story highlights inventive thinking plus unique and meticulous production processes.

20. In mature markets “CRAFT” is Reyka’s “PREMIUM” Our Story • M A T U R E M A R K E T S ICELAND PREMIUM CRAFT

21. Our Story • E M E R G I N G M A R K E T S PURE ARCTIC WATER ICELAND hot travel destination PURITY CARTER HEAD STILL UNIQUE small batch INVENTIVE clean energy CRAFT LAVA ROCK FILTRATION SMOOTH TASTE PREMIUM mysterymyths folklore

22. Our Story • E M E R G I N G M A R K E T S PURE ARCTIC WATER ICELAND PURITY UNIQUE clean energy PREMIUM In emerging markets the ICELAND story highlights pure ingredients, natural resources and clean production processes.

23. In emerging markets “CRAFT” is Reyka’s “DIFFERENTIATION” Our Story • E M E R G I N G M A R K E T S ICELAND CRAFT PREMIUM

24. What is the opportunity for Reyka? Where does our story fit in the competitive landscape?How can we defineReyka’sPremium?

25. Finding our Space in Premium Vodka PREMIUM (“KNOW-DRIVEN”) Story & quality Driven Premium Craft Emergent Status Driven Super/Ultra Premium - Currently Discovery CONVENTIONAL CRAFT Mass market Traditionally Status-Driven Brands Status-driven Premium Craft PREMIUM (“SHOW-DRIVEN”)

26. How does Craft enhance our story?

27. Premium Craft INNOVATIVE PROCESS PURE INGREDIENTS LIMITED QUANTITIES CATEGORY-DEFINING SUPERB PRESENTATION STATUS WORTHY Premium Craft deftly blends these principles to tell a unique story of the highest quality product.

28. Defining Premium Craft Unparalleled Quality /Unique History / Rare Artistry A singular focus on the best possible output of product via a uniquely perfected creative process: the best ingredients, the best equipment, the best methods. Taking pride in place, harnessing local natural resources and talent, and acting as an ambassador for local community. True artisans driven only by their quest for perfection. They have a unique outlook on life that shows in their work. They take there time to slowly craft a product of unparalleled quality.

29. Defining Premium Craft High Quality always topshelf Premium never value Unique Story never expected Meticulous Production always hand crafted Limited Quantity never mass produced Best Product never unpolished or rough Exquisite Attention to Details always thoughtful Discovery never the usual In The Know never just for show

30. What Premium Craft means for Reyka High Quality Single Distillation Awarded Best Vodka Premium Best Quality Liquid Unique Story Iceland Meticulous Production Carter-Head Still, Naturally Inventive Distillers Limited Quantity Small Batch, Big Desire Best Product None other like it Exquisite Attention to Details Lava Rock Filtration Discovery Coveted & Shareable In The Know Tells a story others want to know

31. THE PREMIUM CRAFTED SPIRIT MADE OF ICELAND. Made by resourceful people driven only by their quest for perfect vodka.Their unique outlook on life shows in their work. They take their time to craft a product of unparalleled quality. A singular focus on the best possible product. A uniquely perfected process: the purest ingredients, the best equipment, the most innovative methods. From a country like no other. Reyka is literally in every way, MADE OF ICELAND. The Premium Story to be told.

32. Telling the Reyka story in Asian markets By understanding the most interesting and relevant parts of the story for the Asian consumer we can create a more relevant and engaging message hierarchy. Its not about telling a different story, just telling it in a different way.

33. Our Story • E M E R G I N G M A R K E T S PURE ARCTIC WATER ICELAND hot travel destination PURITY CARTER HEAD STILL UNIQUE small batch INVENTIVE clean energy CRAFT LAVA ROCK FILTRATION SMOOTH TASTE PREMIUM mysterymyths folklore

34. Reyka 10 second sell & beyond Benefit for consumer What it is. Where it’s from. Why it’s worth paying attention to. ReykaFact Iceland has all the elements and resources to make Reyka pure and distinctive. Vodka from Iceland = That's differentand interesting. Level 1 (10 seconds) “Interesting. What are the details? What’s the whole story?”Our Icelandic spring water is from glaciers which provides some of the purest water in the world and results in Reyka’ssilky finish. Iceland is also full of volcanoes so we use lava rocks as a natural filtration system ensuring that all impurities are removed in a single distillation. Our rare Carter-Head Still is the only one used for Vodka, resulting in Reyka’s distinctive taste. And we handcraft Reykain small batches to ensure each and every bottle retains the highest award-winning quality. “Reyka? I’ve never seen it, what is it?” Reyka is a unique, premium, vodka made with all the purity Iceland has to offer. Curious.Hearing about Reykafor the first time. Benefit for consumer Key differentiators. Reyka Fact Glacial Arctic Spring Water = Silky Finish Lava Rock Filtration & Carter-Head Still = Removed Impurities Level 2 (30 seconds) “Wow, Icelandic vodka? What’s that mean?”Reyka’s Icelandic heritage delivers the key elements of what makes our vodka so unique;Glacial Spring Water, Lava Rock Filtration, Rare Carter-HeadDistillation & Clean Geo-Thermal Energy. Intrigued.Wants to know more. Benefit for consumer Allows them to see the qualities that make Reyka so special and delivers social currency in the form of a story they can be proud to share. Reyka Fact Unique ingredients and production process result in a premium vodka like no other. Level 3 (45 seconds) Desire (to learn).Wants the story.

35. The foundation behind our story.

36. From Iceland’s unique provenance, resourceful people and natural resources, we were inspired to create a vodka that would have no equal.Reykawas born from a desire to use unique materials, super premium ingredients and an inventive production process to craft a vodka that would appeal to those who explore the world for undeniable originality and extreme quality. TheWhat& Why Icelandic spring water from glaciers and our geo-thermal powered distillery ensure that our production process and our ingredients are of the purest in the world. Our lava rock filtration and our rare Carter-Head Still results in a silky finish and a distinctive taste that is thoughtfully maintained by handcrafting every small batch with meticulous care. TheHow Because of Iceland, where Reyka is born and distilled, our vodka has a distinctive, award-winning taste and an awesomely singular story that enables it to stand out and stand above the sea of other vodka brands. TheWow! ThePlatform MADE OF ICELAND.

37. Drink StrategyArticulating our story in liquid to lips on-trade.

38. Drink Strategy To be added by Global Brand Team post Brand Ambassador visit to Asia WC 24th March. Thoughts on table serve to come.

39. APPENDICESInput from breakout session

40. Focus output from Workshop

41. Sum Reyka up in 3 words Reyka made of Iceland Handcrafted from Iceland Simply pure from Iceland Limited Rare Unique Good Things in Small Packages Smooth as Reyka Premium Iceland Created in Vodka Iceland’s spirit Icelandic Production Taste Premium Craft By Iceland Elf’s Hand Made by Elves Iceland Best Damn Vodka Pure Water Vodka You only need one distillation Pure things only in Iceland Elves/Personality The purest vodka on earth is made in Iceland Vodka from the land of Ice & Fire Pure as Iceland Purity Pure Iceland crafted in Vodka Inventive by Nature Pure Icelandic Vodka Reyka Vodka Purity from Iceland Purest water, purest vodka Delivering purity is a craft Reyka Pure Crafted Perfection Smooth pure natural Iceland (+)(=) Purity The purest vodka from the purest land Discover  purest water from Iceland through most simplified process

42. What are our brand message strengths? Purity Differentiation Iceland Original Iceland (pure water) Authentication Clean Iceland Charmingly offbeat energy Inventive Spirit Friendly Green Environment SEA – Shangri la of the west Iceland as a ‘fiction’/utopia Pure Mystique (not just natural) Purity/Cleanliness Resourceful (energy/pollution Inventive Naturally Lava & Ice Purest water in the world SEA – Desire to discover Authentic Ice & Volcano Clear Iceland Production Purity Lava rock (volcano) Water as a resource Only one distillation

43. What you said What is Reyka’s Serve How do we reach them Keep it upbeat energy very important Serve Serve vessel Ritual Target Consumer Positioning Visibility of bottle on shelf What do we rah them with International success to talk about Message How do we speak craft 1 Soundbyte

44. Activation Ideas Copper Cups Premium Paper Wrapping Table serve idea/theatre Bottle Display Serve With branding • Paper wrapping with snowflake design • Orange oragami paper • Ice bucket wrapping • Bartender engagement • Copper Pipe art • Display bottle on table bag/sack/cloak to serve bottle • Element of retail theatre • Lava • Copper • Tray • Make signature drink instantly recognisable • Serve strategy • Serve ritual • juice, food (fruity, cheese) • soda water? • Single serve that represent purity, sweet • Flavoured bitters

45. Less established brands have several levers through which they can build authority. AUTHORITY DRIVERS Social Cachet Target Audience Brands must be seen to both help and signal consumers progressing in life Who we are talking to Relevant across occasions Credible Range Brands must have relevance in both personal and professional occasion sets Refers to AGE statements, focus on high end (18+) opportunities for trade up and halo and trial via innovation BRAND AUTHORITY Key media channel for brands in dark markets and for gifters Pricing drives brand equity, exclusivity and gifting credibility Packaging Pricing Reassurances and trust (vs counterfeit) are a key need for consumers Soundbites, rather than elaborate comms messages, are powerful tools for advocacy & discernment Soundbites Authenticity