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Chevron YTD Pepsi Review

Chevron YTD Pepsi Review. Pepsi YTD Performance at Chevron. Overall YTD LRB Performance up +2.6% with Non-Carb leading the growth. Energy and Tea are driving total LRB gains. Excluding Rockstar, YTD LRB Performance is down (2.4%).

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Chevron YTD Pepsi Review

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  1. Chevron YTD Pepsi Review

  2. Pepsi YTD Performance at Chevron • Overall YTD LRB Performance up +2.6% with Non-Carb leading the growth. • Energy and Tea are driving total LRB gains. • Excluding Rockstar, YTD LRB Performance is down (2.4%). • CSD Declines are stemming from Multi-Packs and 20oz, and 1 liter losses. • However, 2 Liter is showing growth, up +14.4% YTD. • SoBe Life Water and RTD Teas showing growth YTD, up +51.1% and 61.9%, respectively YTD. Source: Pepsi Star 2 Data YTD ending 10/31/09

  3. Pepsi October Performance at Chevron • October LRB growth up +2.7% including Rockstar, and down (3.5%) when excluding Rockstar volume. • Pepsi Non-Carb growth in October stemming from Lipton +75.2%, No Fear +37.9%, and Amp +23.3%. • Though total CSD’s were down, Pepsi saw growth in 2 Liter +33.3% in October Source: Pepsi Star 2 Data YTD ending 10/31/09

  4. YTD Chevron LRB Competitive Benchmarks Note: All numbers include Rockstar in Total Energy and LRB Source: Pepsi Star 2 Data YTD ending 10/31/09

  5. October LRB Competitive Benchmarks Chevron Showing Competitive Strength in October! • Chevron is one of the only accounts in the Top 50 experiencing growth in October. • Additionally, Chevron is out-performing most of its top competitors with Pepsi in the West. • Majority of competitor’s losses are stemming from water, followed by CSD declines. Note: All numbers include Rockstar in Total Energy and LRB Source: Pepsi Star 2 Data YTD ending 10/31/09

  6. Roll-Backs are Working! • Price Roll-Backs on 2 Liter CSD, Amp & No Fear Energy, and 20oz Aquafina since June have been extremely successful. • 2 Liter CSD +14%, Amp & No Fear Energy +23%, and Aquafina 20oz +28% YTD. • Collectively, all 3 packages up +23% YTD & +48% since June. 2 Liter CSD 8oz Vol. Amp & No Fear 8oz Vol. 20oz Aquafina 8oz Vol. -13% -6% +17% +33% +31% +65%

  7. C&G Channel Review

  8. C&G Grocery Drug Mass/Supercenter Stores 144M 32M 37M 9M Average Annual Trips 84 77 50 40/54 C&G Dominates other Channels in Store Count and Annual Trips Where Are Your Dollars Going? Source: Nielsen Industry Review 2008, IRI Times and Trends 2008 Source: Nielsen Industry Review 2008, IRI Times and Trends 2008

  9. However, it is having a rough year compared to otherChannels C&G Experiencing Deeper LRB Declines versus other Channels YTD in 2009 LRB YTD % Chg Vs. YAG As Gas prices have declined, LRB Volume has not rebounded…Neither have Gas Profits (5.2%) Gas Price Effect on LRB IRI 2009 YTD Ending 09/06/09

  10. Other Channels are Stealing the Quick Trips….A Threat to C&G! Only Walmart is showing growth in Pantry Stocking trips Club, Dollar and Account A have the largest increase in Quick Trips Pantry Stocking % Change in Retailer Trips Quick Trips % Change in Retailer Trips Retailer $/Trip (% Δ YAG) 6.1% 7.0% 11.6% 7.3% 13.8% 10.9% 11.5% 10.2% Source: IRI HH Panel, SIE, Total US, 26 wks end 3/22/09 vs YAG, NBD Weighted

  11. The core C-store shopper presents both challenges & opportunities…. Who is the C-Store Shopper? Shopper Patterns? • Shopping time less than 3 minutes • Shopper is the Consumer: 87% of purchase will be consumed in 30 minutes • Heavy shoppers visit 3x or more each day • Primary mission is “fuel and re-fuel” • Highly habitual purchasing behavior • Health & Wellness not a priority • “For me right now” defined as more important than price 70% male 20% Hispanic (and growing) 20% African-American Source: 1) 2007 PEP High Potential Shopper Study (4 Custs, 5 Cities, 300 Respondents) 2) 2006 7-Eleven Major Market Observation Study 3) 2007 NACS SOI Report

  12. Economic Concerns drive over 70% of the decline Sales -8.7% Traffic Higher for Women -11.2% Higher for 15-25 Year Olds Average Price Penetration $4.15 20.3% -5.3Pt. Average Visit Frequency -0.5% Currently, they are Shopping Less in the channel… Source: The NPD Group / Convenience Store Monitor 1st Quarter for Sales and Traffic, 2nd Quarter 2009 for Penetration and Visit ; Meyers Research 2008 C Store Close Up

  13. Many C&G Categories are also showing signs of slowing CSD is still LRB share leader, and is growing share along with Energy Hydration Categories are showing deepest declines YTD $ Share of LRB % Chg $ Sales Chg (in 000’s) IRI 2009 YTD Ending 09/06/09

  14. Yet, even with the challenges, Consumers see CSD’s as the In Store MVP! Core C-store Consumer: Heavy/Super Heavy User – 8+ trips per month #1 Reason C-store shopper’s Shop in Store Avg Monthly Trips Core C-store Shopper Trip Incidence (%) +0.7pts Avg Basket Ring Avg # Products Purchased Source: NPD Primary C-store Consumer analysis, Total US, 2nd Q 2009

  15. Despite declines, consumers are showing more freedom in their spending in C&G compared to ‘08 Source: NPD Primary C-store Consumer analysis, Total US, 2nd Q 2009

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