Douwe Egberts

On Demand Coffee Systems

Liquid Coffee

Liquid Coffee
Fact

Feature

Benefit

Customers demand
convenience.

DE One Touch provides coffee

and specialty drinks at the touch of
a button.

Self-serve or wait staff =

immediate beverage service.

Customers demand quality.

DE One Touch Coffee System is

the market leader with over 40
years of innovation.

Confidence in the product,

service and equipment.

Customers demand variety

of coffee offerings.

DE One Touch offers 4 varieties

of coffee in two convenient sizes
with specialty coffee offerings.

Customers want state of the

art equipment.

DE One Touch offers multiple

dispensers to suit every venue and
volume situation.

Front of the House, banquets,

specialty locations and kiosks
with one source of coffee.

DE One Touch provides exact

portion control for premium,
traditional and specialty coffee
blends.

Fine Dining, restaurants,

banquets and coffee shops
benefit with One Touch
convenience and portion
control.

Customers want value.

Once source for all coffee

needs including specialty
drinks.

The Liquid Coffee Value Proposition

Due to the high case price of liquid coffee, the
value proposition usually depends upon solving
an operators operational challenges:

Does operator pour out a lot of unused coffee?

Does operator have trouble keeping up with coffee

demand (long lines, customers waiting for coffee)

Does the operator experience labor issues due to

the amount of time spent brewing R&G coffee?

Does the operator experience R&G pilferage?

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Douwe Egberts Customer Profitability

Labor, waste & pilferage are a big part of total R&G costs!

Roast & Ground

Ingredients 16%
Equipment 3%

Wasted
Coffee/Pilferage
24%
Direct labor 56%

One Touch
Ingredients 64%

Equipment 23%
Direct labor 13%

Possible Percentage of Total Cost

4

How do we Identify Good Accounts?

General Things to look for:

Does the establishment serve at least 100 cups of coffee a day?

Is the establishment open for breakfast w/seating?
Does the establishment have a Cup to Go business already
established?
Does the facility have employee feeding?

What venues benefit most

from DE One-Touch?

Casino / Gaming
Healthcare
B&I
C-Store
Hospitality

Yes it is..

Product
Handling

Equipment Options, Placement and Training

Increasing Volume
C600

C60
Traditional
Specialty
Coffee

C700

&

C60
C110

C300
C600
C110

C300

HV2
C700

Traditional
Coffee Only

HV2

R/G Throw

DE Ratio Setting

% Solubles

2.0 ounce

35:1

.67

2.25 ounce

33:1

.76

2.50 ounce

30:1

.85

2.75 ounce

27:1

.94

3.0 ounce

25:1

1.03

3.25 ounce

23:1

1.13

3.5 ounce

20:1

1.23

Espresso

9:1

2.75

Liquid Coffee in the US

Liquid coffee has been marketed in the United States since 1977.
Our liquid coffee is manufactured in two plants worldwide:
Joure, Netherlands
Suffolk, VA

Joure, Netherlands

Suffolk, VA

Foodservice Liquid Coffee

Who are the players?

Whats happening with

Liquid?
Explosive growth!
DE Liquid Coffee Net Sales Growth
+16%

+28%

FY05

FY06

+13%

+13%

FY07

FY08 LE FY09 LE

Sara Lee / Douwe Egberts developed the first liquid coffee concentrate and
continues to dominate the category. Continuous improvement of the offering has
fueled significant growth over the past four years, as operators have increasingly
recognized the quality and value of the DE One-Touch system.

Product Package and Contents

Flexible bag in the box (BIB) packaging.

2/2liter boxes per case and 2/1.25 liter boxes

Contains concentrated coffee extract - 27.5% coffee based dry matter and 72.5%
water.

Concentrated coffee is frozen to preserve the quality, flavor & aroma.

No preservatives or additives are used.

What are the advantages of the BIB

with doser?

Hygiene (closed, no cross contamination, tamper safe, new

doser with every new pack)

Convenience (high speed, button operated, portion

controlled, easy storage, disposable)

Constant & high quality (product, dosing, fresh taste)

Cost control (low labor, no spill, no pilferage)

10

Product Handling

Coffee Shelf Life:

Frozen: 1 year (at 0 degrees)
Thawed, refrigerated: 3 weeks (at 41 degrees)
NOTE: Allow 3-5 days for a case of coffee to thaw under refrigeration

Thawing Procedure
The product should be defrosted in a refrigerator no warmer than 41 F.
The coffee thaws quicker when boxes are separated; allow 3-5 days.
In an emergency, product may be thawed in cold water.

DO NOT use hot water to thaw product!

DO NOT use a microwave oven to thaw product!
DO NOT refreeze thawed product!

11

Product Handling

Usage of Thawed Product

Before placing product in the brewer, it is necessary to homogenize the concentrate

by shaking the container back and forth approximately 10 times..

If the thawed product is not shaken, varying dosages and different cup qualities
may occur.

Because of the thaw time and 21 day shelf life, it is important for you and your
customer to anticipate demand and usage.

Packaging and Production

Each package has a sticker with the production date, the batch letter and the best
before date.

Reference samples are kept by Douwe Egberts for one year in the unlikely event
there is a problem with the product.

Douwe Egberts guarantees the quality of its product for the duration of the shelf life
12
as long as proper storage and handling procedures have been adhered to.

Equipment

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Douwe Egberts Equipment Overview

A Douwe Egberts brewer for every customer need
Increasing Volume
C60

C600

C700

C110

C300

HV2

Traditional &
Specialty
Coffee

Traditional
Coffee Only

14

Competitive

15

Douwe Egberts
Equipment

Javo

Six brewers manufactured exclusively for

DE. Three are also capable of producing
specialty beverages.

Product fits coffee/juice

dispensers from multiple
manufacturers

Computerized dosing & disposable

dosers = consistency & quality

Decent quality but peristaltic

pump dosing can be inconsistent

Brewers are easy to load & easy to clean

Brewers are far harder to clean

daily and clean during periodic
preventative maintenance

Product

Shelf Stable 2-Liter BIB

( although refrigeration is recommended)
9 Blends that range in quality
Offer a Fair Trade Blend & Organic Blend

Competitive Intelligence
Premium positioning with pricing justified by best in class
quality and operational ease of equipment usage
and reliability

They sell on price, not quality

Continued and solid financial commitment to product &

equipment improvements

Target DE customers with comparison to price of their

House Blend Colombian to our 100% Colombian

Target channels are Healthcare and C-Store

Douwe Egberts
Equipment

Six brewers manufactured

exclusively for DE with three
capable of specialty beverages
Computerized dosing & disposable
dosers = consistency & quality
Brewers are easy to load
& easy to clean

Product

Kraft
Six brewers from three different
Manufacturers.
Decent quality but peristaltic
pump dosing can be
inconsistent.
Brewers are far harder to clean
daily and clean during periodic
preventative maintenance than
DE manufactured equipment.
Frozen Liquid in 4-1Liter metal cans - (5 blends)
Shelf Stable Liquid in 2-2 Liter BIBs - (2 blends)
Instant 8-8oz pouches - (5 blends)

Frozen Liquid product blends range in quality

and product degradation is significant after can is opened

Competitive Intelligence
Premium positioning

They sell using brand name , not quality claims

Continued and solid financial commitment to product &

equipment improvements

Target DE customers for conversion based on premise

that lower price equals acceptable lower quality

Pricing is at a premium within the category, justified by

best in class quality and operational ease of
equipment usage and reliability

Specialty beverages not available within portfolio offering

Brewer Cleaning: Douwe Egberts = Easy

No sanitizer needed, saving a lot of time each week.

Daily cleaning takes only a couple minutes simply
rinse a few parts in the sink, wipe out the cooler, and
snap back in place.1
1)

Cleaning instructions & comments refer to the C60 brewer.

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Douwe Egberts
Equipment

Six brewers manufactured

exclusively for DE and three
produce specialty beverages

Nestle
Scanomat mimics roast & ground machine with its design
Etna Liquid Machine offers both hot & cold beverages

Computerized dosing & disposable

dosers = consistency & quality
Brewers are easy to load & easy to
clean

Product

Banquet 2
Liquid

Java Giant
Instant

Scanomat
Instant

Etna
Liquid

Instant coffee is Nestles lead volume offer

Liquid Offer :LiquiFresh which is a shelf stable Bag-In-Box
(Sulfites as preservatives)
Currently only a 2 blend selection

Competitive Intelligence
Premium positioning
Continued and solid financial commitment to product &
equipment improvements
Pricing is at a premium within the category, justified by
best in class quality and operational ease of
equipment usage and reliability

Nestle has high brand awareness but is known for instant

coffee not great quality coffee
Key target segment- Military and VA hospitals

Douwe Egberts
Equipment

Six brewers manufactured

exclusively for DE and three
produce specialty beverages
Computerized dosing & disposable
dosers = consistency & quality

Vitality / Lykes
Proprietary equipment designed around Vitality
plastic product container

Rubber dosing system isnt as exact or

consistent as DE

Brewers are easy to load & easy to

clean

Product

Frozen concentrate ( 8 blends)

Weaker concentration makes fewer cups
( soluble solids 22.5% vs DE 27.5%)
3-1.75 Liter plastic bottles
Quality reported to be poor

Competitive Intelligence
Premium positioning

Leader in prison coffee market

Targeting some Military feeding accounts

Continued and solid financial commitment to product &

equipment improvements

Pack Syscos liquid private label under Citavo brand

Pricing is at a premium within the category, justified by

best in class quality and operational ease of
equipment usage and reliability

Have been in the liquid business longer than

most of the other competitors with relatively little
gain in share

Douwe Egberts
Equipment

Other Liquid Competitors

Product fits Bunn coffee LCR-2
which is their key brewer

Six brewers manufactured exclusively

for DE . Three are also capable of
producing specialty beverages.

Computerized dosing & disposable

dosers = consistency & quality

Various
Distributor
Private Labels

Brewers are far harder to clean

daily and clean during periodic
preventative maintenance

Brewers are easy to load & easy to

clean

Product

Decent quality but peristaltic

pump dosing can be inconsistent

XCaf is a large private-label supplier of shelf stable

liquid coffee (3-blends + various private label)
Juan Valdez is Coca-Colas shelf stable BIB produced in
Colombia marketed as CafREALE. Quality reported to be poor.

Competitive Intelligence
Premium positioning

Continued and solid financial commitment to product &

equipment improvements

Pricing is at a premium within the category, justified by

best in class quality and operational ease of
equipment usage and reliability

Sell on price, not quality

Customer and channel focus is varied and are both
distributor and operator driven
X-Caf is a regional not a national brand
Coke has the opportunity to target current soda
customers for conversion