1. Evolution or revolution impact of current economic outlook on coffee Jan KempenaarFebruari 15, 2013 – Kampala - Uganda

2. What shocks can we expect? PRESENTATION: What’s the impact of current economic outlook on the coffee market? PROSPECT: “Impact of current of the economic shocks on the world coffee market” PASTPRESENT FUTURE 2011: NY > $ 300 Sustainability

3. Impact on the coffee market SUPPLYRETAIL

4. What’s the role of Ahold in coffee? SUPPLYRETAIL 1.World of Ahold 2.ACC Factory 3.ACC coffee chain

5. Ahold global retailer €32,8 billion sales AHOLD GLOBAL AHOLD STRATEGY

6. Coffee part of roots Ahold since 1895 LINK WITH ALBERT HEIJN FACTORY ZAANDAM : Employees130 FTE Sales volume20.000 MT Roasters6 MT/hr Packaging14 lines Types green coffee40 Finished products150 AssortmentRoast and ground Whole beans Single portion pads First shop1887 in Zaandam First factory1911 in Zaandam Stores in NLMore than 850 Stores in Belgium12 (expansion) Marketshare AH33,7% in 2011 Private label coffeePerla 80 SKU’s Private label share50%

7. Private label sustainable coffee chain VISION AND MISSION Sustainability is the way to grow our coffee business: private label coffee Africa 9% Asia 36% Central America 19% South America 36%

8. Relevant trends in supply of coffee SUPPLYRETAIL 1.Supply and demand 2.Sustainable coffee 3.Global economics

9. Increasing global supply and demand TRENDS IN ORIGINS Competition other commodities Lack of sufficient labor during vintage Heritage problems father-son New varietals takes 2-3 years before first vintage Balancing act supply – demand Consequences climate change Prosperity middle class increases Growing demand certified coffees Development differentials/premiums certified coffees

10. Sustainable coffee becomes mainstream Sustainable coffee 2012-2015:  Available under Utz, Rainforest, 4C, Fair- trade, Organic, Starbucks  Committed to: Nestle, Kraft, DE, Tchibo, Ahold en Walmart, Starbucks, McDonald Sustainable coffee moves from niche to mean stream More sustainable coffee expected based on commitment large retailers COFFEE WORLDWIDE 2011 SUSTAINABLE COFFEE Production 8 mln MT Consumption 8 mln MT Production 1,3 mln MT 16% Sold 0,7 mln MT 9% MAIN DEVELOPMENTS

11. Macro economy has huge impact on coffee GLOBAL TRENDS Growing world population Global effects of climate change Economic development BRIC countries Increasing global middle-class Impact of hedge funds and other economic sectors on commodities

12. What do customers expect about coffee? SUPPLYRETAIL: EUROPE 1.Consumer trends 2.Relevance sustainability 3.Respons Ahold

13. Coffee is trendy but price is still important Convenience Growth of quality portioned solutions: capsules, full automated machines, espresso machine Quality Increasingly focus on the taste and quality of the coffee Demand for a wide variety of coffee Customer experience, story behind the coffee: beans, the coffee roaster, plantations. Indulgence out-of-home to in-home: more quality at home Price Due to economic crisis customers are more price consciousness Source: IGD, Euromonitor, Foodinspiration

14. Increasing awareness sustainability Consumers are conscious of environmental issues but don’t want to pay for it Some consumers are sensitive to sustainability and intend to pay for health and convenience Consumers expect that companies and institutes take their responsibilities Overwhelming number of certification programs causes uncertainty Source: GFK, IGD, Bord Bia, MARKET SHARE FAIR-TRADE 2011 Production 8 mln MT Available 0,4 mln MT Sales 0,1 mln MT The Netherlands Sales 3700 MT market share 3% GLOBAL TRENDS

15. Albert Heijn responds as retailer WHAT HAS Albert Heijn DONE IN COFFEE: Initiates Utz Kapeh coffee resulting in foundation Utz Certified Mainstream pricelevel of Utz coffees All PL coffee is Utz Certified, in total 50% of coffee sales at Albert Heijn is sustainable WHAT WILL AH DO: Albert Heijn listen and respond to consumer requirements Albert Heijn initiates and increases the availability of sustainable products AH sells every day more sustainable products All Private label in 2015 sustainable Consumers expect that Albert Heijn takes responsibility WHAT DO RETAILERS/CONSUMERS: Follow market leader Consumers not able or willing to pay more for sustainable products

16. Will it be evolution or revolution in coffee? SUPPLY RETAIL Ahold global player focus on responsibility Coffee important for Ahold and AH ACC sustainable in coffee chain Growing supply and demand of coffee Sustainable coffee will be mainstream Unpredictable and fast changes in world Coffee trendy but price still important Sustainable coffee growing in volume and awareness AH has leading role in sustainability What’s the impact of current economic outlook on the coffee market? MESSAGE: Be flexible to respond to market changes and continue on the journey towards a sustainable coffee chain by connecting worldwide and by enjoying coffee everywhere