Applause User Meeting January 19, 2010

1. Applause User Meeting January 19, 2010 John Williams Product Specialist Gilbarco Veeder-Root

2. Agenda • Popular Upgrade Price Promotions Extended • Update on Video Library • Focus on Morning Timeslot • Q&A

3. Offers extended on Audio/Video Upgrade and Color Retrofit programs • For 5.7” Mono Dispenser users • Order an EPP retrofit for an Encore 500 or S series dispenser and add an audio/video capable color screen retrofit for only $4,995 (list price.) • Standard list price = $6,870)  less than the cost for a factory-installed color upgrade! • For 10.4” Color Dispensers without Audio Video • Dispensers manufactured before August 2009. • Upgrade package for current color dispensers: $399 limited time pricing per dispenser ($799 if ordered after 12/1/09) • Includes: • New accelerator card (one per dispenser) • New software • Audio/video content libraries • Online training on audio/video functionality. Offers Extended until March 31, 2010

4. New on User Portal Volume Control for your A/V Enabled Dispensers • Available under the Support Tab on User Forum Media File Specifications – Including A/V Files • Available under the Resources Tab On User Forum New Report from The Coca-Cola Leadership Conference • Available under the CAMPAIGN PLANNING tab on User Forum

5. Current Video Library

6. Focus on the Morning Day Part

7. Morning Day-part Facts • About 28% of all gas transactions happen between 5 and 11AM • Morning business commuters are key demo • Over 87% of morning commuters drive alone • School bound commuters are second target • Parent with one or more child in car • Major reported traffic drivers at the convenience store are tobacco, coffee, water and other packaged beverages and breakfast foods.

8. Focus on Morning Food Services • Other than late night, breakfast is the only time when c-stores hold comparable share to QSR and restaurants in food service. • Core C-Store Breakfast eater • Male, by more than a 2 to 1 margin • Between 35 and 44 years old • Place a high premium on convenience

9. The Breakfast Trifecta • THE AM PITSTOP Customer • The drive-by experience • Fill-up and make tracks • “Getaway Break” Customer • a brief but necessary pause in the routine • Opportunity to relax, and gear up for the day • “Personal Oasis” • Looks for the full-service, fully enjoyable experience Source: ConAgra study of 3000 breakfast consumers

10. Emerging Competition • QSRs getting aggressive with Pit Stop Customers • Quiznos and other sandwich franchises introducing breakfast menus • Jack in The Box, Burger King aggressively marketing “grab-n-go” • McDonalds offers premium coffee/expresso services • Coffee and Juice companies go for the getaway break crowd • Oatmeal and Sandwiches at Jamba Juice, Starbucks and Caribou. Even tests at Baskin Robbins • Groceries marketing enhanced bakeries • Seating and free coffee refills • Quantity packs aimed towards offices

11. Other Factors • With drop in tobacco related business, stores need to build their focus elsewhere – particularly in the AM. • Quality coffee isn’t what it used to be • Only 52% of adults drink coffee. • Near glut of coffee bars and alternatives in most urban markets • Breakfast menus are expanding • More breakfast choices with focus on convenience • More focus on fresher and healthier offerings

12. How to Defend and Grow Share • More focus on the 48% of customers that don’t drink coffee • Promote waters, fruit drinks, and other healthier beverages • Energy drinks and energy “shots” are growing caffeine delivery substitutes • Keep cost low and value high • Target food service item below $2.50 with focus on high value per • bfast sandwiches for burritos for “2 for $2.49” is winner • Remember that 87% of commuters drive alone • Special deal on 16 coffees “when you buy 2” not likely a winner

13. Defend and Grow Share • Make an effort to target women • Offer healthier fare such as yogurt, breakfast bars • Photos of females in ads. Make them feel welcome • Re-enforce need for breakfast in promotion copy • People who eat breakfast have easier time losing weight • Focus on variety and convenience • Mix in ads for other convenience items such as aspirin, chapstick, etc.

14. Products targeting new customers Female Friendly Water Brands Healthy Grab-N-Go Snacks Morning Beverage Alternatives Fresh, baked bread Meal Replacements Fresh, healthy dairy

15. Core Prepared Breakfast Products • 77% of Americans have consumed a prepared breakfast sandwich in last 12 months up from 73% in 2008. (Source:NACS) • Ethnic food variations catching on. (Burritos, tacos) • Current library has over 18 different breakfast sandwich images. • Landshire and Lettieres recently added to library • Have tried repeatedly to get Deli Express without luck. (Call them direct.) Search: Breakfast Sandwich Search: Breakfast Burritos

16. Quick Update on Coffee Products • Many branded coffee products out there. Most regional. • Encourage your vendor to provide us with color images • Ronnoco, Van Houte, Community and others in system. • If you have custom branded program or serving cups, you will need to provide photos/images. • Market swinging away from elaborate offerings in many markets • Hot Chocolate and “drip coffee” will bring in more customers than “latte, mocha, or cappucino.” Animation available on user portal 1 hot chocolate and 2 coffee videos available

17. Summary • Morning traffic is more than ¼ of daily traffic, and the products in demand are often different than at other times of day. It’s worth spending time to build a unique schedule to target customers. • Think past coffee and donuts – especially in beverages. 48% of adults don’t drink coffee. What do you have for them? • Value and variety are key, and cost is a factor. • Women skip breakfast more than any other demographic, and are also most aware of the value of a good breakfast. It’s a key audience that probably isn’t coming into your store already.