Emc Overview Jan2009

Overview Deck 2009February

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Agenda

Company OverviewIRI ReviewCompetitive PositioningConsumer MarketingNew ProductsMarketing Overview

Company Overview

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About Alacer Corporation

Mission: To build on our legacy of innovation by providing the world withnutritionally enhanced products that support an energetic, healthy lifestyle.

ALACER: From the Latin word for quick, eager, lively

These adjectives certainly described Jay Patrick, who founded Alacer Corp. in 1972 at the age of 60. Patrick built the company into a leading producer of vitamin C products over the next three decades until his passing in 2003. Today, Alacer produces and sells more than 400 million packets of Emergen-C® brand dietary supplements annually. During his leadership of Alacer, Mr. Patrick drew on his varied background as a writer, chemist, engineer, businessman and even a performer. He built a close relationship with Dr. Linus Pauling, who won a Nobel Prize for his research into the benefits of vitamin C.

Emergen-C is available in 19 varieties of drink mix nutritional supplements, two tablets and four ready-to-drink beverages. The products are sold in health food stores, supermarkets, drug stores, mass merchandisers and club stores nationwide. With a rich history of innovation and an eye to the future, Alacer is proud to produce a wide selection of nutritionally enhanced products that provide fast, fun ways for consumers to boost their health and energy, naturally.

IRIOverview

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- 3 Emergen C has the Top LetterVitamins

Out of the hundreds of of Letter Vitamins sold, Emergen-C has the Top 3New Pink Lemonade, is #38 in US-FDMxAcai with meaningful distribution in Food, #47

Source: IRI 52wks ending 12/28/08

DESCRIPTION US-FDMx US-DRUG US-FOOD

EMERGENC VIT C BLEND TANGERN 1000MG EFFERV 36CT #30054 1 1 3

EMERGENC VIT C BLEND RASPBRY 1000MG EFFERV 36CT #30040 2 2 2

EMERGENC VIT C BLEND ORANGE 1000MG EFFERV 36CT #30046 3 4 1

EMERGENC VIT C IMMUNE DEFNS MIX 1000MG EFFERV 36CT #30131 24 13 34

EMERGENC VIT C BLEND LMN LIME 1000MG EFFERV 36CT #30081 33 72 7

EMERGENC VIT C BLEND PINK LMNADE 1000MG EFFERV 36CT #30168 38 74 52

EMERGENC VIT C BLEND CRAN 1000MG EFFERV 36CT #30053 47 53 39

EMERGENC VIT C JOINT HLTH TANGERN EFFERV 36CT #30109 89 42

EMERGENC VIT C BLEND TROPICAL 1000MG EFFERV 36CT #30058 96 44

EMERGENC VIT C BLEND ACAI BERRY 1000MG EFFERV 36CT #30156 112 47

TOTAL LETTER VITAMIN SKU's 800 520 770

$ RANK

SKU ranking in Letter Vitamins FDMx :

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, #1 Alacer the Brand of Vitamin C

Emergen-C is the #1 brand of Vitamin C in US-FDMx, is up 31% in 2008.Emergen-C dominates Food with 31.6% of Vit C.Pharmavite is not keeping pace with segment growth and NBTY down 3% in FDMx and Drug.Emergen-C is leading the growth in all channels, accounting for 57% of the $ Growth in US-FDMx and of 73% in Food and Mass.

$ Growth Vitamin C – latest 52wks


US-FDMx US-DRUG US-FOOD

EMERGEN C $10,486,132 $4,572,610 $4,422,708

% of Total 57% 44% 73%

VITAMIN C $18,417,946 $10,407,396 $6,058,731

BRAND $ Shr - CURR Yr

$ % Chg vs YAG

$ Shr - CURR Yr

$ % Chg vs YAG

$ Shr - CURR Yr

$ % Chg vs YAG

EMERGEN C 27.7% 31% 24.3% 31% 31.6% 27%

PRIVATE LABEL 25.9% 1% 32.0% 9% 19.5% -10%

NATURE MADE 23.7% 11% 22.8% 13% 22.4% 7%

NATURES BOUNTY 6.9% -3% 8.1% -3% 6.4% 2%

ALL OTHER 15.8% 21% 12.8% 24% 20.1% 19%

VITAMIN C 100.0% 13% 100.0% 15% 100.0% 10%

US-FDMx US-DRUG US-FOOD

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0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0%

50%

100%

150%

200%

250%

SKU Shr-Curr Qtr $ Prod Index

SKU Shr-Curr Qtr 36% 25% 12% 9% 6% 4% 2% 1%

$ Prod Index 72% 95% 224% 74% 83% 70% 83% 109%

PRIVATE LABEL NATURE MADE EMERGEN CNATURES BOUNTY

ESTER C SUNDOWN LIL CRITTERS SUNNY MAID

- Emergen C is the mos t productivebrand

EMC delivers over 2x’s the $/SKU Productivity of the Average Vitamin C item.Nature Made has 25% of the SKU but is underproductive as is Natures Bounty. Ester C generates 17% less $/SKU than the average

Average

Productivity – US-FDMx 52wks 12/28/08


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- 3- Emergen C delivers Peat as GrowthLeader

Emergen-C up over 30% for the past 3 years.

2%7%

13%

77%

48%

31%

-11% -8%

1%0%8% 11%

19%

-8%-3%

-20%-10%

0%10%

20%30%

40%50%

60%70%

80%

2006 2007 2008

VIT C EMERGEN C PRIVATE LABEL NATURE MADE NATURES BOUNTY

Source: IRI year end results, 2008.

US-FDMx - % Change vs YAG

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- Emergen C new Flavors generate incremental volume

Emergen-C Core is up 19%, Functional is up 17% and Pink and Acai are delivering incremental sales

$0$5,000,000

$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000$50,000,000

YAG Current

ACAI

PINK LMN

EMC FUNTIONAL

EMC CORE


US-FDMx - $ Sales

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Competitive Pos itioning

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COMPETITIVE POSITIONING

Overall Health• Easy to take

• Fun, more pleasant experience

Rehydrate/Replenish• Real nutritional ingredients

• None of the negative ingredients

Immune Support• Preventative• + / Lifestyle

• Daily use

Energy• Natural (you don’t crash)

• Healthy for you

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CONSUMER MARKETING

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Core Target:- Demographic:

• Adults 18-49 • Core: 25-34

Psychographic: - These young adults live life on the go. They’re active

and it exercise in between work, friends, family, fun and just, life. They have a passion for health and prefer natural products and solutions. They’re disciplined enough to make healthy choices and take the best care they can of themselves, but not too disciplined to have a good time.

Consumer Insight:I think it's cool to be healthy, and I try to stay that way. Work, stress, partying and cold and flu season can be challenges. But they don't have to get to me.

With the right help, I can keep up my health and energy levels.

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Brand Promise- Single-Minded Consumer Benefit:- Emergen-C is the fast, fun way to boost your health and energy.

Reasons to Believe:- Unique formula with 1,000 milligrams of Vitamin C - 24 Nutrients with Antioxidants- Electrolytes - 7 B Vitamins

Brand Essence- Emergen-C is the strong, cool friend who helps you stay healthy, and have

fun doing it.

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Brand Tracker

Source: MarketTools Brand Tracker. Year 3, Wave 2. Jan 09. (n=1,036 Aided Awareness), (n=992 Trial and Satisfaction), Year 2, Wave 2. Jan 08 (n=1,069

Aided Awareness), (n=,064 Trial and Satisfaction).

AidedAwareness- At its highest ever at 38% (+9% vs. YAG).

Trial- Down slightly from the previous wave, but increased compared to YAG.

Satisfaction- Remains high and is consistent with levels YAG.

Aided Awareness

29

59

43 4538

63

45 44

0

20

40

60

80

Emergen-C Airborne Cold Eeze Ester-C

Jan-08 Jan-09

Trial Past 12 Months

8

18

11

6

13

19

12

7

0

5

10

15

20


Jan-08 Jan-09

Satisfaction

8567 74 7883

62 62 68

0

20

40

60

80

100


Jan-08 Jan-09

Marketing Overview

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• $10.7 Million Estimated Reported Spending* Dedicated to National TV, Print, Radio and Online.

• 27 weeks of Advertising: September 29th 2008 – May 17th, 09 2009

National Marketing Overview

* Based on results from Neilsen Monitor Plus

Event Marketing Online National Print National T.V. National Radio 25181142720136302316922316922619125292215812417103272013629221581251811428

MayAprilMarchFebruaryJanuaryDecemberNovember OctoberSeptemberAugust

20092008

Marketing Overview2008 - 2009

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National Media Overview

In-season, reaching core target 95% of the time with an 24.9 frequency 3.0 billion media impressions to be delivered between October and May 2009

NETWORK TV Airing on top national networks: CBS, ABC and NBC and Primetime programs

SYNDICATED Top related syndicated programs such as Seinfeld, 24, Oprah, Wheel of Fortune, & Jeopardy

CABLE TV Targeted national cable networks: USA, TNT, TBS, Animal Planet, MTV, A&E, E!, Comedy Central

RADIO Airing on over 3,000 radio stations across the country: KISS, WPLJ, KLAX, KBIG Reaching consumers that are light TV watchers

Emc Overview Jan2009

Technology

Transcript of Emc Overview Jan2009