1. MONTREAL TEA & COFFEE TOGETHER! SHARING ONE CUP WELCOME To Tea & Coffee Regional Updates and the SIAL 2005 Exhibition

2. AGENDA Brief Association Updates-CAC/TAC NPD Presentation –Jim Robinson Coffee from Jamaica –Patrick Sibblies Questions

3. The Canadian Coffee Market

4. Net Imports

5. *

7. Grocery Sector Nielsen Data $$$$% Vol. % R & G $355 m+3%+2% Decaf R&G $32.5 m+2%Flat Instant $123 m -4%-4% Decaf Inst. $15.5 m -10% -11%

8. Key Coffee Issues Pricing / (Sustainability) Pods, Packs & Potential Premiums Portability / Accessibility Premium Category (A Plus)

9. Pricing!

10. Dramatic Change From Recent Past

11. Pods, Packs and Possible Premiums

12. Portability

13. Premium Areas Growing Both Within Grocery and Foodservice Premium Products Are Experiencing the Strongest Growth----Driving Any Real Volume Growth Within At Home Sector and Creating Significant Dollar Growth in Away From Home Sector……..

14. Regulatory Issues Regulators Taking Some Form of Bureaucratic Viagara Many Issues Shared By Coffee and Tea—and Others Unique to One Share Advocacy and Information When Helpful –Often Sector With the Most at Stake Takes the Lead

15. LEADING TEA ADVOCATE MEDIUM Priority HIGH Priority LOW Priority PESTICIDE MRL’S Health &Safety Act MANDATORY NUTRITION LABELLING Healthy Living Fortification HIGHLIGHTED INGREDIENTS Stewardship Ontario Codex WHO report NHP’s Product Specific Health Claims CBSA-CFIA Generic Health Claim Caffeine Labelling

16. REGULATORY & ENVIRONMENT ISSUES for COFFEE MEDIUM Priority HIGH Priority LOW Priority On the Radar Pesticide M.R.L.’s Social Activism Fair Trade/Oxfam MANDATORY NUTRITION LABELLING Healthy Living Ochratoxin A HIGHLIGHTED INGREDIENTS Acrylamide Canada’s Food Guide Organic Standards C.E.P.A. Product Specific Health Claims C.B.S.A. Decaf Solvents Caffeine Labelling Maintaining a Level Playing Field “Import” Standards Furan “Green” Procurement “Health” G.I.P.

17. Key Regulatory Challenges C&T – Cementing MNL Victory C&T -- “Bulk’ Import Labelling C&T – Highlighted Ingredients and Flavours T – Pesticide M.R.L.’s T – Natural Health Products C – Acrylamide C – Decaf Solvents C – Organic Standards

18. Tea Imports

22. Tea Sales

23. Green Tea Sales

24. Tea Sales

25. Tea Sales - Quebec

26. Tea Sales - Ontario

27. Tea Sales - Maritimes

28. Tea Sales – Western Canada

29. To provide proactive leadership on behalf of all members in the areas of advocacy, generic promotion, and education to ensure the long-term viability of the industry. TAC Mission

30. Toronto Tea Briefing – May 5, 2005 Canada’s Tea Industry 13 th Annual Fall Conference “Steeped in Success!” September 14 & 15, Deerhurst Resort, Huntsville, Ontario www.tea.ca Upcoming Events

31. COFFEE AND HEALTH POSITIVE IMPACTS Anti-oxidant properties –with implied positive impacts in terms of cancer prevention, positive impact on Coronary Heart Disease –parallels these properties of phytochemicals found in other vegetable and plant products such as tea Ø Anti-depressant effect, mood elevator –connected to reduced risk for suicide Ø Risk reduction for cirrhosis of the liver / liver disease Ø Reduced risk for gallstone disease / gallstone formation Ø Protects against / reduces risk for kidney stones / kidney stone disease Ø Reduced risk for developing Parkinson’s disease Ø Reduced risk for developing Type II Diabetes (this developed only months after coffee had been suggested as a potential contributor to diabetes risk and is indicative of how quickly the “best science” can move on the wellness spectrum Ø Improves attention and concentration (and test scores) a physiological outcome if not a health benefit directly Ø Positive impact on asthma –coffee functions as a bronchdilator Ø Lowered risk for developing colo-rectal cancer Ø Boosts metabolism –in effect a “thinning / diet impact” Ø Reduced risk for death from a coronary heart attack (if heart incident occurs) Ø Reduces dental scaries, in effect reduces cavities