2. WHAT IS THE FORUM?

3. THE BOARD OF DIRECTORS

4. RETAILER COLLEGE 4

5. MANUFACTURER COLLEGE 5

6. Strategic pillars The building blocks of our vision Emerging Trends Sustainability Safety & Health Operational Excellence / New Ways of Working Together Knowledge Sharing & People Development 6

7. OPERATIONAL EXCELLENCE

8. Direct Store Delivery (DSD) is a method of delivering products from a distributor directly to the retail store, bypassing a retailer’s warehouse. The scope of this working group is: To develop a DSD business model and the necessary process extensions To partner with GS1 to develop the required standards To drive the broad implementation of DSD. DSD – Direct Store Delivery

9. Focus: plan to cash Raw materials, ingredients and packaging Better visibility Optimized inventory levels Better supplier service levels Lower integration costs Optimized processes Increased retailer responsiveness Maximised production capacity Optimized inventory levels Reduced obsolescence Optimized processes GUSI – Global Upstream Supply Initiative Aims at:

10. Share our Supply Chain Supply Chain Conference 2010 Supply Chain Conference 12 th – 14 th October Berlin

11. SAFETY & HEALTH

12. Global Food Safety Initiative (GFSI) Reduce food safety risks by delivering equivalence and convergence between effective food safety management systems Manage cost in the global food system by eliminating redundancy and improving operational efficiency Develop competencies and capacity building in food safety to create consistent and effective global food systems Provide a unique international stakeholder platform for collaboration, knowledge exchange and networking

13. Managing Cost by Eliminating Redundancy Impact Assessment Questionnaire, March 2010 Are you able to evaluate the annual cost savings that the implementation of GFSI recognised schemes has provided? Retailer/Food Service Business Cases: Internal cost reduction of 90% Manufacturer Business Cases: 1: < $50K/yr 2: We are currently saving about $6million/yr Global Food Safety Initiative (GFSI)

14. Global trends that will affect your business

15. Trends in mature markets o Saturation of hyper and supermarket o Persistent rise of discount model o Increased penetration of private label o Increasing importance of convenience and proximity

16. Trends in mature markets o Saturation of hyper and supermarket o Persistent rise of discount model o Increased penetration of private label o Increasing importance of convenience and proximity

17. 40 – 50% average penetration now common in Europe and US catching up SOURCE: Masmi Trends in mature markets o Saturation of hyper and supermarket o Persistent rise of discount model o Increased penetration of private label o Increasing importance of convenience and proximity

18. France alone has seen 40% growth in three years Trends in mature markets SOURCE: Deloitte

19. Trends in mature markets Convenience in France: +2.7% CAGR Hypermarket in France: + 0.1% CAGR SOURCE: Kantar Retail o Saturation of hyper and supermarket o Persistent rise of discount model o Increased penetration of private label o Increasing importance of convenience and proximity

20. Consolidation Foreign entrants SOURCE: Kantar Retail Russia: market consolidation

21. PRIVATISATION ORGANISED RETAIL MARKET CONSOLIDATION OPERATIONAL EXCELLENCE 1990 2000 2006 2011 Russia: retail market development

22. Why collaborate? Shared problems REQUIRE Shared solutions AND BRING Shared benefits

23. The vision “Better lives through better business” 23