1. MediaFeedback Tea in South Africa Food 2012

2. Product Definitions 2 ProductDefinition Black Tea Black tea is prepared from the evergreen “Camellia sinensis” bush. Previously known as “Ceylon Tea”. However, given the reduced content of tea originating from Sri Lanka (previously Ceylon), it was necessary to adjust the product terminology. Black tea undergoes a process of oxidation or fermentation, where the excess moisture is removed from the tea leaves, before they are crushed, fermented and then dried. The result is leaves that are brownish or black in colour. Iced Tea Presently, no regulatory standards exist regarding iced tea, making it difficult to differentiate between chilled tea beverages containing real tea solids/concentrates and chilled beverages with tea flavourings. Locally, iced tea is available in two types: Ready to drink Powder concentrates This report covers both types, where iced tea is combined with dry tea categories; the volumes have been dehydrated at the ratio of 87g of dry concentrate to 1 litre of iced tea.

3. Product Definitions (Cont.) 3 ProductDefinition Rooibos Rooibos is an herb native to the Cedarburg region in the Cape. The needle-like leaves of this plant are used to make an aromatic hot or cold beverage. Once harvested, the leaves are bruised, fermented and dried before being weighed and packaged. Rooibos is a specific product for South Africa, but due to the popularity of the product, there has been an increase in exports. Speciality Tea This category incorporates beverages that have an herbal base, rather than a tea base. As these are strictly not a tea, they are often termed herbal infusions rather than herbal tea. Infusions are defined as being brewed from the leaves, flowers, roots, bark and seeds of herbs and spices. Although Rooibos strictly falls under this definition, the product category is sufficiently large to stand as a category on its own.

4. 4 Market Trends

5. 5 Black Tea Black tea continues to have the greatest share of the tea market (56.0%). However, the category volume share has fallen by 2.3% as rooibos and speciality teas have gained ground. Globally, tea is the second most consumed drink after water. This mature category saw a slight decline in 2011 and marginal growth is expected in 2012. The 100-280g pack range continues to be the most popular pack size range comprising more than half of total black tea volumes for the base year. Iced Tea For another year slower single digit growth was seen within the ice tea market. This is the lowest volume growth in the history of the category. The rate of volume started to decline in the midst of the global recession as the economic slowdown put a cap on consumer spending. The recent stabilisation of the category in terms of volume growth could indicate organic market growth saturation. This would imply that new product offerings and innovative brand positioning coupled with linked marketing strategies are areas left to explore to ensure continuous market share stability against other non-alcoholic ready to drink beverages. The outlook for the category remains positive but conservative. Market Trends

6. 6 Rooibos The popularity of rooibos continues to grow with the category showing an increase in volumes in 2011. This is the second consecutive year in which double digit growth has been experienced. The rooibos market share continues to rise as South Africans migrate from traditional black teas to rooibos. It is believed that this is largely due to the prevalence of the trend towards health and wellbeing. Unlike the other tea categories, a large percentage of rooibos volumes are exported, however, export volumes have remained fairly static in recent years. The outlook for rooibos remains positive with growth expected for 2012 and 2013. Speciality Tea Speciality tea continues to increase in popularity. Herbal and fruit teas with functional benefits, such as aiding digestion, are growing in popularity among health conscious consumers. However, as this niche category only makes a minor contribution to total tea volumes it did not have a significant impact on the total volume growth of the tea category. Market Trends (Cont.)

7. Total Volume Breakdown – Tea 2011

8. Channel Distribution – Tea 2011

9. Local Regional Distribution Tea - 2011 Note:Excludes Exports Percentages may not add to 100.0% due to rounding

10. Packaging Demand Pack Size Black Tea - 2011

11. Packaging Demand Pack Type Black Tea - 2011

12. Packaging Demand Pack Size Iced Tea - 2011 Note: Iced tea rehydrated

13. Packaging Demand Pack Type Iced Tea - 2011 Note: Iced tea rehydrated

14. Packaging Demand Pack Size Rooibos - 2011

15. Packaging Demand Pack Type Rooibos - 2011

16. Packaging Demand Pack Size Speciality Tea - 2011

17. Packaging Demand Pack Type Speciality Tea - 2011

18. BMI Research Information 18

19. Annual Quantifications Total Market Quantification for 140 CPG Categories What are the latest market trends? And: Is the category growing or declining? What does the future hold for the category? What are packaging trends for the market? Are category sales growing or declining in retail, wholesale or export? How is your product performing in foodservices? Market Quantification involves sizing up markets annually to see volume, value and consumption trends. The service is available for most food, beverage, confectionery and snack products. We have more than 10 years of historical data in tracking each market. Using these insights, you’re able to harness the potential in your market by understanding strategic category trends across the total market. A unique offering incorporating formal and informal market components. Total market includes retail, wholesale, foodservices, industrial and exports. 19

20. BMI Tracking Report Schedule 2012 Non-Alcoholic Beverages Bottled Water Carbonated Soft Drinks Cordials and Squashes Fruit Juice Iced Tea Mague Sport Drinks and Energy Drinks Dairy Beverages Dairy Juice Blends Drinking Yoghurt Flavoured Milk Maas Milk For further enquiries please contact research@bmi.co.za REPORT NAMEPUBLICATION Packaging All Reports Packaging Overview Paper & Board QPM Quarterly Import Annual Beverage Reports Full Report (all reports below) Alcoholic Beverages Flavoured Alcoholic Beverages Malt Beer Sorghum Beer Spirits Wine REPORT NAMEPUBLICATION 20

21. BMI Tracking Report Schedule 2012 (Cont.) REPORT NAMEPUBLICATION On Request Baked Products Baking Aids Eggs Frozen and Par-Baked Products Maize and Wheat Premixes Processed Meat Products Confectionery and Snacks Ice Cream Packaging of Snack Foods South African Confectionery Market The Impulse Market in South Africa For further enquiries please contact research@bmi.co.za REPORT NAMEPUBLICATION Annual Food Publications Biscuits and Rusks Breakfast Foods, Pasta and Rice Dairy Desserts F & C Beverages Fats and Oils Pre-prepared Meals Protein Sauces Soups and Condiments Sweet and Savoury Spreads Value Added Meals 21

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23. Print Ads Promotional Pricing and Share of Spend Is your product visible enough in promotional print Media? Assess whether your brand is gaining sufficient share, relative to your spend on promotional print advertising. Track competitor promotional pricing to tactically react on your own product pricing. Daily, we answer questions like: What is the promotional pricing? What is the regional promotional pricing variance? What are competitors’ pricing tactics? What Rand value is spent on our brand versus competitor brands by retailers? Are we losing market share because of this? Coverage: National daily and weekly newspapers Weekly community newspapers Consumer magazines In-store broadsheets Print Ads: Covers all brands advertised in all regions by retailer by month. The analysis provides an inside picture of the retail promotional environment. Track competitor promotions and pricing, offering top line or granular data. 23

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25. LISP (Liquor In Store Pricing) How is your liquor brand performing in-store? Each week, we answer questions like: Is my product available on shelf? Does my brand have its fair share of shelf space? Is my product listed and available in all stores? Is my gondola end in store? Do I have promotional activity in that particular store? LISP: Gives first-hand insight into your brand’s performance in-store. Monitor your products versus your competitors to assess your performance and remedy gaps. Ensuring accurate data which translates into tactical competitive advantage. 25

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