Option 1 (8 oz.

Ad Plan
Incremental Sales (Units)
Slotting fees
Gross Profit
Less Ad Costs
Less Incremental SGA
Less Slotting Fees
Trade Promotion Expense
Less Broker's Commissions
Profit Contribution

6 SKU of 8 Oz to Supermarket
20 Supermarket Chains
2 Regions
$1,200,000 per region per annum
35,000,000 units per annum
$10,000 per Chain per SKU
$5,220,950
($2,400,000) 2 Regions
($320,000) $200K sales + $120K mkt
($1,200,000) 20 Chains, 6 SKU per Chain
($870,000) 11 Supermarkets in NE, 9 in West, 4 times p.a.
($642,838) 4% of sales
($211,888)

Sales Growth

$16,070,950

Market Share

1.5% of supermarket yogurt sales (last yea

2.0% of supermarket yogurt 6-8 oz sales (l
Option 2 (32 oz.)

Ad Plan
Incremental Sales (Units)
Slotting fees
Gross Profit
Less Ad Costs
Less Incremental SGA
Less Slotting Fees
Trade Promotion Expense
Less Broker's Commissions
Profit Contribution

4 32 Oz SKU to Supermarket
64 Supermarket Chains
4 Regions
$120,000 per region per annum
5,500,000 units per annum
$10,000 per Chain per SKU
$3,769,425
($480,000) 4 Regions
($160,000) Half of Option One
($2,560,000) 64 Chains 4 SKU
($1,024,000) 64 Chains 2x per annum
($368,577) 4% of sales
($823,152)

Sales Growth

$9,214,425

Market Share
10.3% of 32oz yogurt sales nationally (last

Option 3 (Multipack)
Ad Plan
Incremental Sales (Units)
Free Cases (slotting) fee
Gross Profit
Less Ad Costs
Less Free Cases
Less Broker's Commissions
Profit Contribution

2 SKU of Multipack to Natural Foods Channel

($250,000)
1,800,000 units per annum
($82,927) 2.5% of Manufacturer Sales (net of broker fees)
$1,247,073
($250,000)
($82,927)
($132,683) 4% of sales
$781,463

Sales Growth Year 1

$3,317,073

Market Share
11.2% of natural foods channel (last year)

text
Option 1
text
Option 1
text
Supermarket
formula = units sold * $ contribution per unit (Note rounding in Table TN-2)
text

Option 1

West, 4 times p.a.

formula = MSP * units sold * 4% (Note rounding in Table TN-2)

sales growth = MSP * units sold

of supermarket yogurt sales (last year)
of supermarket yogurt 6-8 oz sales (last year)

text
Option 2
text
Option 2
text
Supermarket
formula = units sold * $ contribution per unit
text

Option 2

text
Option 2, Supermarkets
formula = MSP * units sold * 4%

sales growth = MSP * units sold

of 32oz yogurt sales nationally (last year)

oods Channel
text
text
net of broker fees)

Option 3
Option 3

formula = 1.8m units sold * MSP * 2.5%

formula = MSP * units sold * 4%

sales growth = MSP * units sold

of natural foods channel (last year)

$'000
One Year Revenue
One Year Profit
Revenue after 2 Years
NPV of Profit over 2 Years
Revenue after 5 Years
NPV of Profit over 5 Years

Option 1
Option 2
Option 3
(8 oz.)
(32 oz.)
(Multipack)
16,071
9,214
3,317
(212)
(823)
781
19,285
11,057
3,815
1,436
1,310
1,608
33,325
19,107
5,802
11,013
10,640
4,798

Assumptions for Option 1

Supermarket Channel - 8oz

Number of SKU
Regions
Predicted Growth
Marketing Support
SG&A Uplift
Incremental Sales
# Chains
# Chains

6
2
20% per annum - after first year
$1,200,000 per region per year
$320,000 per annum
35,000,000 additional units
11 in Northeast
9 in West

Calculations for Option 1

$'000
Year
Incremental Sales (million units)
Incremental Sales
Less Manufacturing Costs
Incremental Gross Margin
Less Broker Fees
Less Slotting Fees
Trade Promotions
Marketing Support
Incremental SG&A
Incremental Profit
2 Year NPV
5 Year NPV

Assumptions - Option 2
Number of SKU
Regions
Predicted Growth
Marketing Support
SG&A Uplift

8.0% Discount Rate

8.0% Discount Rate

1
35.00
16,071
(10,850)
5,221
(643)
(1,200)
(870)
(2,400)
(320)
(212)
$1.44
$11.01

Supermarket Channel - 32oz

4
4
20% per annum - after first year
$120,000 per region per year
$160,000 per annum

Incremental Sales
# Chains

5,500,000 additional units

64 Nationally

Calculations for Option 2

$'000
Year
Incremental Sales (million units)
Incremental Sales
Less Manufacturing Costs
Incremental Gross Margin
Less Broker Fees
Less Slotting Fees
Trade Promotions
Marketing Support
Incremental SG&A
Incremental Profit

1
5.50
9,214
(5,445)
3,769
(369)
(2,560)
(1,024)
(480)
(160)
(823)

2 Year NPV
5 Year NPV

$1.31
$10.64

Assumptions - Option 3

8.0% Discount Rate

8.0% Discount Rate

Natural Foods Channel - Multipack

Number of SKU
Size
Predicted Growth
Marketing Support
SG&A Uplift
Incremental Sales

2
32 Oz
15% per annum - after first year
$250,000 per annum
$0 per annum
1,800,000 additional units

Calculations for Option 3

$'000
Year
Incremental Sales (million units)
Incremental Sales
Less Manufacturing Costs
Incremental Gross Margin
Less Broker Fees
Less Free Cases
Trade Promotions
Marketing Support
Incremental SG&A
Incremental Profit
2 Year NPV
5 Year NPV

8.0% Discount Rate

8.0% Discount Rate

1
1.80
3,317
(2,070)
1,247
(133)
(83)
0
(250)
0
781
$1.61
$4.80

Reference
From Exhibit 6
From Exhibit 6
Option 1 Comment 4
Option 1
Option 1
Option 1
Option 1
Option 1

2
42.00
19,285
(13,020)
6,265
(771)
0
(870)
(2,400)
(320)
1,904

3
50.40
23,142
(15,624)
7,518
(926)
0
(870)
(2,400)
(320)
3,002

4
60.48
27,771
(18,749)
9,022
(1,111)
0
(870)
(2,400)
(320)
4,321

Million
Million

Reference
From Exhibit 6
Option 2 (Nationally)
Option 1 Comment 4
Option 2 (Nationally)
Option 2 (Nationally)

5
72.58
33,325
(22,499)
10,826
(1,333)
0
(870)
(2,400)
(320)
5,903

35,000 growing at 20% pa

Units * $0.46 per unit
Units * $0.31 per unit
Sales * 4%
20 Chains * 6 SKU
Price * # Retailers Per Region * 4 times p.a.
$1.2mm per Region Per Annum
Fixed Annual Amount

Option 2 (Nationally)
Option 2 (Nationally)

2
6.60
11,057
(6,534)
4,523
(442)
0
(1,024)
(480)
(160)
2,417

3
7.92
13,269
(7,841)
5,428
(531)
0
(1,024)
(480)
(160)
3,233

4
9.50
15,923
(9,409)
6,514
(637)
0
(1,024)
(480)
(160)
4,213

5
11.40
19,107
(11,291)
7,816
(764)
0
(1,024)
(480)
(160)
5,388

5,500 growing at 20% pa

Units * $1.68 per unit
Units * $0.99 per unit
Sales * 4%
64 Chains, 4 SKU
Price * # Retailers * 2 times p.a.
$120,000 per Region Per Annum
Fixed Annual Amount

Million
Million

Reference
From Exhibit 6
From Exhibit 6
Yogurt Through Nat.Foods Stores
Option 3
Option 3
Option 3

2
2.07
3,815
(2,381)
1,434
(153)
0
0
(250)
0
1,032
Million
Million

3
2.38
4,387
(2,738)
1,649
(175)
0
0
(250)
0
1,224

4
2.74
5,045
(3,148)
1,897
(202)
0
0
(250)
0
1,445

5
3.15
5,802
(3,620)
2,181
(232)
0
0
(250)
0
1,699

1.8mm growing at 15%pa

Units * $1.84 per unit
Units * $1.15 per unit
4% of sales
2.5% of sales in first year
Not Required for Nat. Food Channel
$120,000 per Region Per Annum

* 4 times p.a.