schreef:
Revitalize Product Lines to Enhance the Coffee and Tea Experience. We intend to renew our product line in 24 months, with
the majority of such innovations expected to come to market in the second half of fiscal 2013, as described below:
Re-Invent Multi-Serve. We see multi-serve as an opportunity to refresh a category that has been stable for a long period of
time. We intend to engage new and existing consumers with a differentiated product line presented in a contemporary
fashion. We expect that this will include a broader product range, new premium offerings and new packaging concepts
that address diverse consumer preferences.
Revitalize Senseo. Philips and Sara Lee were pioneers in expanding the single serve category. With over 33 million Senseo
machines sold as of February 1, 2012, the market position of our Senseo coffee pads provides us with a solid foundation in
this category. Our retail sales of Senseo products increased by 11% between fiscal 2008 and fiscal 2011, and we had €400
million in sales of Senseo products in fiscal 2011, with approximately 95% of such sales from the Netherlands, Belgium,
France and Germany. Going forward, we intend to pursue geographic expansion and machine and coffee pad innovations
and we intend to address a broader range of consumer segments, with more varied and contemporary product offerings.
To this end, we recently entered into a partnership agreement and a trademark transfer agreement with Philips to
strengthen our relationship with Philips and acquire the full rights to the Senseo trademark. In the future, we intend to use
Senseo as our new master brand for any future high-tech product offerings and we expect to launch a new Senseo machine
annually.
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Differentiate Capsules. Our L’OR EspressO and L’aRôme EspressO capsules have experienced significant success and
sales growth since the launch of L’OR EspressO in France in April 2010, with revenues from such sales exceeding
€50 million in the first six months of our fiscal 2012. We intend to expand our capsule sales by establishing more
differentiated brand positionings and extending our range to better address varied consumer preferences.
Build on Leading Position in Out of Home and Focus on Synergies with Retail. Through our proprietary liquid roast
coffee technology and our Cafitesse brand, we lead the liquid roast category for out of home consumption (based on
internal estimates and analysis). We intend to expand our liquid roast coffee business and, to further this goal, we are
developing new, premium liquid roast products. We also intend to broaden our business base to include many of the more
visible customer segments where roast and ground and espresso products are key to success. To this end, we recently
acquired CoffeeCompany, a dynamic café operator targeting young urban consumers in Holland. Our intent is to gain
inspiration and consumer connection experiences with the goal of expanding the visibility of, and becoming more
effective in showcasing, our retail brands. We also intend to use the cafés as a test market to test new products and
concepts before a full-scale launch. However, we do not intend to become a global café operator.
Expand our Presence in Instants into Existing Markets. We have a strong market position in premium freeze-dried instant
coffee in Australia with the Moccona brand and have been gaining instant coffee market share in the United Kingdom
with the Douwe Egberts brand. We plan to build on our instant coffee expertise through further innovations and increased
marketing in countries where we already have strong multi-serve footholds.
Reinvigorate Tea. We believe that we have a strong platform from which to expand in the tea category with our Pickwick
brand, which is well-known in the Netherlands, Hungary, Denmark and the Czech Republic, our Hornimans brand, which
is a leader in Spain, and our recently acquired Tea Forte brand, a premium tea brand principally sold in the United States
and Canada. We intend to expand our presence in the tea market through innovative new concepts and a sustained
marketing effort designed to create more premium positionings for our tea activities.
Expand Geographically. As a part of Sara Lee, we historically derived a large percentage of our sales and profits from Western
Europe. As an independent company, we intend to pursue growth in our Western European markets, including the Netherlands,
France, Spain, Belgium and Denmark, through effective marketing, innovation and increased penetration of our products in these
markets. We also intend to pursue growth in the emerging markets in which we currently operate, including Brazil, Eastern Europe
and Thailand, and expansion into new markets through extensions of our own product innovations and through selective acquisitions,
where appropriate and with a high level of discipline. Additionally, we believe that our Senseo single-serve coffee system and our
L’OR EspressO capsules, already well-known in their existing markets, can contribute to our expansion into new markets. We are in
the process of developing new products for both Senseo and L’OREspressO to further increase consumer interest and bring our
products into more households in both our existing and new markets.