Polar Beverages Drive for Sustainability and Environmental Responsibility

Consumer insights – environment is becoming top of mind with consumers IRI study – “Sustainability is an emerging key to product and store selection” One fifth of U.S. consumers are “sustainability-driven” in their product and store selection Approximately 30% of consumers look for eco-friendly products and packaging in brand selection Source: IRI Sustainability 2007

Sustainable Manufacturing is: Beneficial, safe and healthy Meets market criteria for performance and cost Manufactured using low energy production technologies Sourced from renewable and recyclable materials Made from materials healthy in all probable end of life scenarios Focus on water usage reduction in all facets Source: Sustainable Packaging Coalition

Polar’s sustainable strategy is based on balance — Economics, Social & Environmental A strategy that is championed by our senior leaders Focus on creating lower cost packaging that will positively impact Sustainability levels. Reduce Energy use through technology Reduce Water Usage through Technology and Innovation Increase Recycling Efforts and Minimize Landfill use Provide Healthy alternatives in all channels Improve Consumer awareness of Polar’s efforts

Polar Remains Committed to Minimizing Raw Materials all of which are 100% Recyclable Remain committed to 3X4 12 packs which utilizes 6% less paperboard than industry standard fridge packs Redesigned Polycarbonate, returnable bottle saving 10% in material while doubling effective life of the bottle Industry leader in utilizing returnable shells versus corrugated in Private Label manufacturing Planning on 7-12% reduction in PET material with advent of new finish and cap in 2008

Polar has reduced per unit energy usage by over 40% in the past 6 years with prudent capital investment Retrofitted 80% of motors and pumps to soft start, variable frequency drives ($245K) Installation of new lighter weight, low energy Can Line Filler ($400K) Installation of state of the art Air Compressors ($350K) Installation of 100% Unloading Ammonia Compressors ($275K) Installation of motion activated T-5/T-8 lighting ($85K) In final stages of negotiation for installation of solar panels for use in the manufacturing process

Polar has reduced water usage by over 50,000 gallons per day with the goal of doubling that over the next 12 months Installation of a back wash water recovery system minimizing usage and effluent discharge Preparing to install Ionized Air Rinsers which will eliminate the need for water rinsing. Annual audit of all points of use for water in the plant

Polar has increased recycling ten fold while reducing land fill input by 66% In house recycling of all products and raw material has resulted in recycling growing from 100,000 lbs to in in excess of 1,100,000 lbs in 2007 Expanded recycling efforts have decreased tonnage of material for the landfill from in excess of 872,000 lbs to 296,000 lbs. Recycling of all metals has increased 80%

Polar is a leader in healthy alternatives in the Beverage segment Sodium/Calorie/Caffeine Free Seltzer Portfolio 100% All Natural Fruit A-Peel Sparkling Beverages Nantucket Nectar Juice and Snapple Tea’s The Polar Line Up of Caffeine and Sodium Free Carbonated Soft Drinks

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