ECR Baltic Repeated General

Meeting 15th of April 2015

Coca Cola Baltic Offices (Telecon):

Tallinn: Mustamäe Tee 16 (“Marienthali” center, 8th floor) Riga: Ulbrokas iela 40

Vilnius: Seimyniskiu gatve 21b

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Anti-trust caution and Competition Law

Compliance

ECR Baltic will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programs or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings.

Message to new members, participants and/or people taking part for the first time: Please note that taking part in ECR Europe’s and ECR Baltic activities is subject to having read and understood ECR Europe’s EC Competition Law Compliance Program. If you have not done so, please do so now. http://www.ecr-baltic.org/f/docs/clcp.pdf

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AGENDA Repeated General Meeting:

AGENDA: 10:00 - 10:15 Registration, Welcome and Anti Trust Caution 10:15 - 10:30 ECR Baltic Board nominations 10:30 - 10:45 Voting 10:45 - 11:15 Annual report 2014 11:15 - 12:00 ECR Baltic working streams discussion 12:00 Closure

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SUMMARY 1st Meeting:

Introduction, antitrust caution and competition law compliance Annual report 2014 (Download: Annual report in English and Latvian | Audit report original | Audit report English translation) - members - gold membership program - EU co-funding opportunities Elections ECR Baltic Board (Please send your nominations to edgars@ecr-baltic.org)

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SUMMARY 1st CONTINUED:

ECR Baltic working streams and projects 2015 – member’s discussion. - Connected Business Information Committee - Supply Chain Committee - Shopper / Category Management Committee - Together for good trading practices in Food Supply Chain / Call to action - People development: new services e-learning demonstration for certified category management courses and good trading practices - ECR Baltic Forum 2015 from 11,-12.-13. November, Riga (with panel discussion and Ken Hughes as a key note about The Digital Native Advance: A New DNA for Shoppers and shopper marketing masterclass. Call for speakers and sponsorship opportunities.

Why join Efficient Consumer Response?

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• Networking • Sharing Best Practices • People development • Industry standards and recommendations for modern retail

environment on Baltic scale • Change management

ECR Baltic is an Efficient Consumer Response Initiative in Estonia, Latvia and Lithuania. ECR Baltic is a collaborative retailer-manufacturer platform with a mission “to fulfill consumer wishes better, faster and at less cost in a more sustainable way”. It is a non-profit organization which aims to help retailers and manufacturers in the FMCG sector to drive supply chain efficiencies and deliver business growth and consumer value. ECR Baltic is a member of ECR Europe. www.ecr-baltic.org

Key achievements by ECR Baltic?

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• Boost of EDI use in Baltics between Retailers and Suppliers • Educating on Category Management principles • Standardization of Pallets and Returnable Packaging • Promotion and enabling of new collaborative business models

for equipment and data pooling • Investment in future of SC development in Baltics • Cultural changes in retailer – supplier trade relationships from

war for pie to category growth and supply chain efficiency game!

www.ecr-baltic.org

Annual report 2014 (Finances)

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ECR Baltic finalized 2014, with EUR 5’436 (including reserves funds for unused vacations at EUR 1’158) losses and cumulative losses with previous year amount for EUR 7’713 to be covered from income in 2015 (40%), pending membership fees from 2014 (15%), LIAA/ERAF support for 2014. ECR Baltic Forum in Jūrmala (25%) and reimbursed paid vacations (20%). Negative financial results due to the 3 major reasons on income side: 2 high volume members discontinued membership (10% of all membership fees in terms of turnover), failing in completing class with pay participants for trainings - only 20% complete, drop in ECR Baltic forum participation by 19% and forum sponsorship fees by 40% to planned. On cost part substantial increase consisted from speakers fees increase however according to participants feedbacks the quality of presentations increased substantially.

Annual report 2014 (Members)

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On 31st of December the members count for 39 companies which is increase by 1 (one) member compared with 2014. Joined 3 new members and 2 members discontinued membership. 2015 In question: 5-6 member companies

Gold membership program + EU support http://www.ecr-baltic.org/en/members/gold-membership-2015/

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2014: GS1 Latvia/Lithuania, EPAL, Chep 2015: EPAL, Chep ECR Baltic all inclusive gold membership offer (EUR 2500) to member companies who aim at 100% involvement in ECR activities: trade missions (LT, EE traders forum, Riga Food Fair), seminars, sponsor logo, publications, trainings, forum, one free pass to everything.

ECR Baltic Advisory Board and Co-Chairs:

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Current Board nominations: 1. Edgars Godmanis, Member of the Board of JSC "Putnu fabrika Ķekava" 2. Giedre Razinskiene, CEO GS1 Lithuania 3. Allar Kahju, SC Director Rimi Baltic 4. Edīte Strazdiņa, Latvian Agricultural Cooperatives Association, Mūsmāju Dārzeņi 5. Konrad Kowalik, Country Manager, Danone Baltics 6. Jevgeni Rudkovski, Baltic Logistics Director Coca Cola 7. Jonas Paulauskas, Commercial Director Nestle 8. Vacant (Retailer) 9. Vacant (Industry Association, Retailer, Wholesaler/Distributor). ===stepping=off=== Rafal Trydenski, Unilever Paulis Dālbergs, Cido/Royal Unibrew Teemu Kilpia, Prisma Aiga Priede, Rimi Baltic Jevgēņijs Semjaņikovs, Satnitex (stepped off earlier)

ECR Baltic Advisory Board (Council) and Co-Chairs (Chairmen):

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ECR Baltic without manufacturer side co-chair since April 2013 and retail co-chair January 2014! We are looking for C-Level retailer/distributor and supplier/manufacturer to lead the board and association supporting ECR values and joint value creation projects. New opportunity to lead better trading practices implementation in Baltics with Supply Chain Initiatve at ECR Baltic! Lead and support annual ECR forum for sharing best practices!

ECR Baltic Co-Chairs (Chairmen) roles:

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5.3.The Chairmen 5.3.1. The operations of the ECR Baltic Board shall be managed by two co-chairmen, elected by the Board for a two-year term, one representing manufacturing companies and the other representing retail companies As for Statutes and Rules and Regulations

ECR Baltic Advisory Board (Council) roles:

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9. Council 9.1. The Council of the Association consists of 9 (nine) members elected by the members’ general meeting for 2 (two) years. 9.2. The Council shall elect and oversee the work of the board. 9.3. The Council considers and approves annual report submitted by the board. 9.4. Association’s Council meetings should be held at least 4 (four) times a year. 9.5. The main tasks of the Association’s Council are: 9.5.1. to indicate the main directions of the Association’s development in the Baltic States; 9.5.2. to determine the priorities and work plans of the Association; 9.5.3. to confirm and evaluate the budget of the Association; 9.5.4. to approve the annual membership fee and payment procedures; 9.5.5. to convene a members’ general meeting; 9.5.6. to evaluate the success of the Association. 9.6. The decision in the Council’s meeting is made, if for it have voted more than a half of the Council’s members present. Council’s meeting is recorded in the minutes. 9.7. The Council is empowered to make decisions without actually getting together – through e-mail. In this case the same voting and decision-making rules are valid. As for Statutes and Rules and Regulations

ECR Baltic working streams,

active and potential projects 2015

Edgars Pentjuss

edgars@ecr-baltic.org

+37126546645

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Renewed under 3 umbrella

committees:

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Maintaining and call Members committees in 3 major working streams with at least one annual meeting: o Supply Chain Committee (incl. VMI hand book Project development, RTI/Pallets, Benchmarking, pooling) o Demand Management (category Management and shopper marketing) Committee (survey, catman overview webinar + elearning, ecr shopper types) o Connected business information committee (for EDI, Masterdata, e-commerce).

ECR Baltic working streams:

Current: - Update EUR and EPAL Pallets Assessment Cards, train the trainer session and development of e-learning module; - RTI (Returnable Transit Items) unification and dissemination in dairy, meat, f&v, bakery, what’s next? - Maintaining Master Data user group (Data pool), new challenges on B2C information: 1169/2011 EU Directive. - ECR Baltic Forum 2015

NEW: - Collaborative Supply Chain Guide project with ECR Switzerland, Coca-Cola, Royal Unibrew, Rimi Baltic, Tallinn University of Technology; - Affordable Benchmarking project with ECR Poland and Baltic CM and shopper marketing benchmarking survey; - Promote European Supply Chain Initiative www.supplychaininitiative.eu (ECR Baltic as self-regulation platform for regional stakeholder forum).

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Working streams by theme(a):

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Theme Content Deliverables Due

Pallets management. wrkgr

• Merge Baltic EUR/EPAL pallet assessment cards (Baltic v LV). Color coding?

• Assess EUR/EPAL pallets similar way (train the trainer)

• Localized training needs for pallet management issues

• Tool (5 languages) • Training with ECR PL • Online training

module • Survey (Pallet issues) • V.3.0

ongoing

Returnable Transport Items (RTI) unification. wrkgr

• Standardization and pooling of RTIs in Baltics: • Disemination of standard and pooling: • Other nestable solutions (from other providers,

suppliers owned):

• Recommendation • CL and Antitrust

check (done) • Royalty free

drawings to develop compatible soluitions

• Alternative solutions • Survey (RTI issues)

Finalized?

Master Data Management and Data Sync wrkgr

• GS1 GDSN standrad and pilots proved Baltic product master data model proposal for community and solution providers.

• Promoting the concept • GDSN (B2B) + B2C information + image

(1169/2011 Digital label)

• Draft excel • Final version 1.0 • Promo leaflet (5

languages) • Benchmarking tool • 3 seminars in

EE,LT,LV

ongoing

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Theme Content Deliverables Due

Retail Ready and Sustainable Packaging.

• Award / Promotion of RRP (also online retail) and sustainable packaging solutions on logistic, trade and consumer unit level. Draft, here!

• Award bylaws and regulations

• Jury (nominees?) • Announcement • Ceremony

• Launch postponed for 2015

Supply Chain efficiency score card / benchmarking

• Cross national initiative project on self assessment and benchmarking on 5 basic SC KPIs with ECR PL, CZ on www.logibar.net platform

• Baltic release • Launch postponed for 2015

Collaborative Supply Chain (VMI) Manual for practitioneers with ECR Swiss and Tallinn University of Technology:

• Applicabilty to Baltics for VMI, BMI, CMI business models (1-4), read most recent draft.

• Consolidated Baltic feedback ( • Publicatuion of the first Europen manual out of

four. • Next 3 rounds • Development of training program on European

scale:

• Feedbacks (2) • Tallinn University of

Techmology (survey) and presentation

• Draft • Training

• February 2015

Working streams by theme(b):

Working streams by theme(c):

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Theme Content Deliverables Due

Category Management and Shopper Marketing

• CM and SM benchmarking survey (Cross National Initiatives project lead by ECR IRL);

• Re-calling working group to add expert feedback and discuss results.

• New trends shopper marketing.

• Summary report and takeway infographic

• Report and working group

• Public/Inhouse trainings with KH

• Q1 2015

European Supply Chain Initiative for good trading practices

• B2B fair trade compliance and self regulation in food chain.

• Call for action and onboarding: Companies and Industry associations

• Set up of multi stakeholder dialoge at ECR Baltic as a rely to www.supplychaininitiative.eu

• First meeting • Call to action • Training/Localized

tools • Conference • Platform

(associations only)

• Postponed to 2015

General ECR promotion and onboarding

• ECR Membership package brochure • Lithiuanian Traders Forum with LIAA and Gold

members (3) • Riga Food seminar and stand 04.09.14, • Participation Estonian Traders Forum 08.10.14

• Riga Food, Estonian Traders Forum (agenda) and Lithuanian Traders Forum from 2014.

• Continue in 2015

Working streams by theme(d):

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Theme Content Deliverables Due

ECR Baltic Forum Jūrmala 11.11.2014 Pre and after events: Retail-Manufacturer tour 10.11.2014 Collaborative relationship management masterclass 12.11.2014

About | Agenda (print version) | Speakers | Participants | Call for presentations | Book Hotel | Sponsors | Investment opportunities | Fees, Terms & Conditions | Register Online | Registration Word | PDF form | Extra event: Collaborative Relationship Management (CRM) Master Class Download agenda: http://www.ecr-baltic.org/f/docs/ECR_Programma_Forum2014.pdf

• Major FMCG and Retail event in Baltics for sharing best practice

• November 2015 (Riga) Radisson Blu Hotel Latvia 2 days

ECR Baltic Forum 2015. 11,12,13, Nov

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ECR Baltic Forum 2015 budgets

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ECR Baltic Forum 2015

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Demonstration SCI e-learning:

Demonstration: Category Management e-learning:

Thank you!

Edgars Pentjuss

+371 26546645

edgars@ecr-baltic.org

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