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Introducing: Deep Ocean Water: A New Category of Premium Water 1

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Page 1: Kd presentation 8.1.16

Introducing:

Deep Ocean Water: A New Category of Premium Water

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Kona Deep’s 1000 Year Journey:

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Kona Deep – A New Category Of Premium Water

• Sourced 3,000 feet below the ocean surface in Kona Hawaii• Naturally pure, renewable source

• Naturally rich in deep ocean electrolytes such as Potassium, Magnesium, Chloride & Sodium for deeper hydrationo Deeply hydrating: Kona Deep found by University of Arizona medical

research dept. to rehydrate people 2x faster than bottled spring water or a leading sports drink.

o U of A study recently published in Journal of the International Society of Sports Nutrition

o High total dissolved solids (TDS) = 250 meets FDA definition of mineral water

• Unlike most performance waters that add electrolytes artificially, we add nothing in the processo With Kona Deep, consumers no longer have to choose between purity

and performance. It’s for people who want their water to work harder….naturally

• Consumer research shows strong purchase intent for this new brand of premium watero High consumer purchase intent when priced at parity to brands such as

Fiji and Evian , with purchase intent >71%o Consumers preferred taste of Kona Deep 3:1 vs Evian and Smart Water

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Kona Deep Creates New Category of Premium Water

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PREMIUM WATER

Focused primarily on location for purity and taste

Highly processed water source with artificially added electrolytes and Ph

Deep Ocean WaterKona Deep represents a new category of water which combines the purity

of a natural water with naturally occurring functional benefits from an infinitely renewable source

Currently, there are two main segments of premium water:

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Hydration Study - Results

Study Summary: University of Arizona’s medical research department conducted a human hydration study. Participants were exposed to an exercise challenge protocol and had hydration measured at various points –results were compared after consuming three different beverages: Kona Deep, bottled spring water, and a leading sports drink. U of A study recently published in the Journal of the International Society of Sports Nutrition.

Findings: Kona Deep rehydrates you 2 times faster than leading sports drink and bottled spring water Kona Deep was also more effective in promoting muscle performance recovery to baseline than the leading

sports drink and spring water:

*Peak Torque Extension %’s with Standard Deviations-- Kona Deep: 93.75 +/- 7.4%, Sports: 78.9 +/- 8.9%, Spring: 86.2 +/- 12.2%Publication: http://www.jissn.com/content/13/1/17Notes: Rehydration rate measured as a decline in peak osmolality, compared to leading sports drink & bottled spring water; peak muscle performance tested in lower body

Kona Sports Spring0.6

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Rel

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Muscle Performance Recovery 75 minutes Post-Exercise

Post exercise, those who

rehydrated with Kona Deep were back to 94% of their baseline (while those

who hydrated with sports drink and spring water

were only at 78% and 86% respectively)

As recently featured in Food Navigator:

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Brand Update

Launched in Hawaii in Fall ‘15

o Less than 9 months into launch, Kona Deep widely distributed across most channels (e.g. grocery, convenience, natural, military)

o Strong movement from launch

o Great traction in premium, on-premise accounts (e.g. Four Seasons)

o Built suite of influencers to help grow brand in Hawaii

PR Buzz – creating a new category

Successfully tested in AZ – as a result, we are now nationwide at Sprouts

Now launching more broadly on the mainland with focus in the West

Three Kroger divisions will carry Kona Deep:

o Smith’s (LIVE), Fred Meyer (Late July), QFC (August)

Southern California has been particularly receptive market

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Significant Traction in Launch Markets

Hawaii

Intermountain

Pacific Northwest

Southern Calif.

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Kona Deep gets the word out….Comprehensive Support Plan

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Influencer Campaign

Point of Purchase

In-Store Promotions

Drive Brand Awareness:• Fitness and Wellness Experts• Social Media• Geo Tag Ads• PR

Highlight Deep Hydration• Local Events targeting

Healthy Actives

Drive Awareness and Trial• Demos• Contests• Bottle Neckers• In-Store Materials

Drive Trial• Frequent price

promotions

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In Store Promotion – Activation and POP Support

In store Demos

Neckers

Displays

• Regular price promotions plus sampling and POP display support

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Kona Deep Bottle Sizes

• Two bottle sizes:o 1 liter bottle (12 count case)o 500ml bottle (24 count case)