ECR Europe – Supply Side agenda Update on preparations for workshop on Shelf Ready Packaging (SRP) Brussels, 21 October 2005

Taking existing work further: –Optimal Shelf Availability More practical solutions and embed in daily work –Transport Optimisation (incl. pallet standards and management) Potential for savings identified at 1.2% (ECR transport optimisation report and case for ECR) New agenda items: –Shelf-ready packaging "Standards" as appropriate –Optimise the industry supply chain structure strategy alignment and asset reduction –Migration to EPC/RFID From "pilots" to scale Reminder ECR Executive Board March 2005 Extract of presentation by Jonathan Pearce "New Supply Side Agenda" to Efficiency & Effectiveness in the industry 2005/2006

Supply side co-chairs for ECR Europe: –Martin Oakes – Group Logistics & Business Systems Director, Somerfield –Jonathan Pearce – Supply Chain Manager Europe, Nestlé  We will co-ordinate a supply side agenda in co- operation with the national ECRs and member companies of ECR Europe  ECR Europe Executive Board asked us on 1 July 2005 to look at SRP as a priority The ECR Europe supply chain agenda

ECR Europe – Shelf Ready Packaging Workshop 21 October 2005 Background: Executive Board conclusions 1 July 2005 (extract of summary): For suppliers it is important to have a global or European solution to shelf ready packaging to avoid having to offer individual packaging solutions to all retailers. Various national ECR Initiatives have worked on the issue or will be launching a project soon. Again, fragmentation of solutions should be avoided as much as possible. ECR Europe should therefore set up a working party to discuss whether and how all the various initiatives can best be aligned. The working party should discuss what can be done on this topic at a European level and make a recommendation for a briefing paper.

ECR Europe – Shelf Ready Packaging Workshop 21 October 2005 Who do we know is active on the topic? National ECRs: ECR Finland – Effective Grocery Packaging ECR Norway – Guidelines on packaging and logistics in the grocery trade – June 2002 ECR Sweden – Packaging Guide for FMCG – January 2005 ECR UK – Retail Ready Packaging Blue Book – July 2005 Germany – retailers and manufacturers have worked together but not under the umbrella of ECR; intention to possibly launch an ECR project France – will launch an ECR project Retailers: Carrefour, Tesco Manufacturers: Nestlé, Gillette, Procter & Gamble

Objectives of the workshop: –Explore existing activities on SRP (ECR-led, joint manufacturer-retailer initiated, individual manufacturers or retailers) –Agree on scope of potential project at European level (e.g. benchmarking only, high-level guidelines, detailed standards?) –Draft a project brief ECR Europe – Shelf Ready Packaging Workshop 21 October 2005

Welcome & Introduction of participants Statement of objectives and deliverables of the workshop. Overview of initiatives on SRP in Europe: Presentations on Joint manufacturer-retailer initiatives (ECR and other) – ECR UK: Tesco & Unilever, ECR Norway Manufacturer perspectives – P&G Retailer perspectives – looking for a speaker Work in sub-groups Discussion on scope of a potential ECR Europe SRP project (objectives, deliverables, action steps) How to co-ordinate between activities at European and at national level Reporting back to full team Next steps Confirm objectives, deliverables, action steps for a European ECR project on SRP (project brief). Participation Organisation of meetings ECR Europe – Shelf Ready Packaging Workshop 21 October 2005 Framework agenda

Criteria for Participation –Manufacturers and retailers who have experience with the topic and are enthusiastic about driving a European project. –National ECR representatives which have already developed SRP recommendations or are starting to work on the topic. Workshop will be limited to 40 participants. Co-chairs will choose from list of candidates. ECR Europe – Shelf Ready Packaging Workshop 21 October 2005

Candidate Participants Retailers: –Delhaize, Metro Group, Somerfield, Tesco, Jeronimo Martins (Poland) Manufacturers: –Beiersdorf, Colgate-Palmolive, Kraft Foods, Masterfoods, Nestlé, Procter & Gamble, Raisiogroup, Reckittbenckiser, Unilever ECR Initiatives –France, Germany, Netherlands, Norway, Sweden ECR Europe – Shelf Ready Packaging Workshop 21 October 2005