EXHIBIT 2
Atlanta Georgia
Mr. Mark Schafer
Beverage Category Director
Foodbuy/Compass Group
December 19, 2013
Mark,
This letter will advise you of the pricing actions that Coca-Cola Refreshments (CCR) will take effective
January 1st, 2014 for the franchise division excluding the franchises that reside in California.
The specific changes for 2014 include:
1) Increasing 20 oz. core sparkling products by 6% nationally.
2) An overall weighted average of slightly more than 3%.
The 20 oz. core pricing action is part of a national industry-wide action that CCR is executing in the
vending channel.
We will have two pricing files for 2014 due to an adjustment that was agreed to in December.
That is, beginning January 1st, the franchises will be invoiced on 20 oz. core sparkling with an increase of
7%. These prices will be effective through January 30th at which time we will convert to the latest pricing
file with a 6% increase on 20 oz. core sparkling.
Once we get to February, we will reconcile the difference with each franchise to ensure that the total
increase reflects the 6% levels.
These actions will be in place throughout the CCR geographies but will not include any additional CocaCola Bottler territories. The other Coca-Cola Bottlers will notify you of your specific pricing changes < 4%
during the next few days.
On behalf of everyone at Coca-Cola Refreshments, we appreciate your business.
Sincerely.Mark Tenney
Canteen Vending Team Leader
Coca-Cola Refreshments
EXHIBIT 3
Mark Schafer
Compass Group
Director of Procurement
2400 Yorkmont Road
Charlotte, NC 28217
May 31, 2012
Dear Mark,
Effective July 1, 2012, the Pepsi-Cola Bottlers will be taking a 3% price increase on all Bottle
and Can products and packages.
The foodservice industry has seen soft performance in the last several years, which has affected
both operators and suppliers. The increase was set with the intent that we remain competitively
positioned in the marketplace and have the ability to invest behind our core marketing initiatives
to revitalize our brands and to make them even more relevant to your customers.
If you have any questions regarding 2012 pricing, please contact me.
On behalf of everyone at Pepsi-Cola, thank you for your business.
Sincerely,
Michael P. Huchro
Senior Sales Manager
PepsiCo Foodservice
EXHIBIT 4
EXHIBIT 5
Mark O’Callaghan
Foodbuy
Vice President
2400 Yorkmont Road
Charlotte, NC 28217
May 29, 2014
Dear Mark,
Effective July 1, 2014, the Pepsi-Cola Bottlers will be taking a 3% price increase on all Bottle
and Can products and packages.
The increase was set with the intent that we remain competitively positioned in the marketplace
and have the ability to invest behind our core marketing initiatives to revitalize our brands and to
make them even more relevant to your customers.
If you have any questions regarding 2014 pricing, please contact me.
On behalf of everyone at Pepsi-Cola, thank you for your business.
Sincerely,
Michael P. Huchro
Senior Sales Manager
PepsiCo Foodservice
EXHIBIT 6
TOM BENÉ
PRESIDENT
December 1, 2012
Dear Valued Customer,
As we do every year at this time, we are writing to communicate our post-mix pricing for 2013. The
weighted average price for our fountain products will increase by 4.0%, driven primarily by increases in
our input costs. Enclosed is our 2013 post-mix price list, effective January 1, 2013.
Let me take this opportunity to thank you for featuring the Pepsi brands in your beverage portfolio. We
are proud of our quality beverages and service as well as our breakthrough marketing that builds strong
consumer engagement and interest in our brands. To support our brands next year, we will continue to
build on successful national advertising (“Live for Now”), programs and partnerships. In addition, we will
create unique opportunities to connect consumers to our brands at the point of sale through cup
programming, digital activation and enhanced merchandising tools.
Our long-term goal is to help grow your business by offering a winning line-up of beverages. We
continue to bring innovation to our frozen and tea platforms and have developed beverage set
optimization tools to maximize reach with your target customer. Additionally, we are developing new
equipment solutions and are expanding our culinary capabilities to bring beverage and food solutions to
enhance your menu offerings.
As always, your National Account Sales Manager is available to answer any questions you may have.
On behalf of everyone at PepsiCo Foodservice, thank you for your business.
Sincerely,
Tom Bené
President
PepsiCo Foodservice
Enclosure (1)
1 PEPSI WAY, SOMERS, NY 10589
TEL: 914-767-6000
EXHIBIT 7
Kirk Tanner
PRESIDENT
December 2, 2013
Dear Mark,
As we do every year at this time, we are writing to communicate our post-mix pricing for 2014. The
weighted average price for our fountain products will increase by 3.75%, driven primarily by increases in
our input costs. Enclosed is our 2014 post-mix price list, effective January 1, 2014. There is no price
increase on Dole dispensed juices.
Let me take this opportunity to thank you for featuring the Pepsi brands in your beverage portfolio. We
are proud of our quality beverages and service as well as our breakthrough marketing that builds strong
consumer engagement and interest in our brands. To support our brands next year, we will continue to
build on successful national advertising, programs and partnerships. In addition, we will create unique
opportunities to connect consumers to our brands at the point of sale through cup programming, digital
activation and enhanced merchandising tools.
Our long-term goal is to help grow your business by offering a winning line-up of beverages. We
continue to bring innovation (frozen platforms, Dole Lemonade, SoBe Lifewater for Fountain and tea
platforms like Lipton Concentrate Brewed Tea and Brisk Half and Half Fountain) and have developed
beverage set optimization tools to maximize reach with your target customer. Additionally, we are
developing new equipment solutions and are expanding our culinary capabilities to bring beverage and
food solutions to enhance your menu offerings.
As always, your National Account Sales Manager is available to answer any questions you may have.
On behalf of everyone at PepsiCo Foodservice, thank you for your business.
Sincerely,
Kirk Tanner
President
PepsiCo Foodservice
Enclosure (1)
1 PEPSI WAY, SOMERS, NY 10589
TEL: 914-767-6000
EXHIBIT 8
1401 Redbud Way
Cumming, GA 30041
Office – (770) 844-1597
Email – Josh.Hanley@DPSG.com
Josh Hanley
Director National Accounts – Fountain/Foodservice
December 5, 2012
Ali Yousefpour
Foodbuy
2400 Yorkmont Road
Charlotte, NC 28217
Dear Ali,
This letter announces a price change on DPSG fountain syrups effective January 1, 2013. Deliveries
made after December 31, 2012 will be charged at the new price. DPSG pricing is based upon total
gallons delivered per order.
Price Change Summary per gallon for deliveries <200 gallons
Package
2012 Price
2013 Price
5 gallon BIB
$12.00
$12.48
2.5 or 3 gallon BIB
$12.52
$13.02
Difference
$0.48
$0.50
% Chg
+4.0%
+4.0%
If you have any questions about this information or need further clarification, please feel free to call me
at (770) 844-1597. Thank you for your business and continued support of Dr Pepper Snapple Group.
Best regards,
Josh Hanley
Dr Pepper Snapple Group
EXHIBIT 9
EXHIBIT 10
January 11, 2013
Dear Valued Vending Customer:
The purpose of this communication is to announce price adjustments on select
Kellogg’s cereals and snack food products, effective March 11, 2013.
This price adjustment is necessary to maintain our long-term commitment to drive
category growth through innovative new products and brand building initiatives. Despite
continually pursuing efforts to improve production and procurement efficiencies, we
continue to be challenged with increased commodity and other input costs in the
manufacturing, distribution and marketing of our products.
The price increase varies by category and the averages are listed below.
Category
Bars
Cereal
Cookies
Fruit Snacks
Toaster Pastries
Average
.05%
1.1%
5.9%
5.5%
0.0%
Thank you for your continued support and please do not hesitate to contact your
Kellogg sales representative with any questions.
Sincerely,
Don Davis
Vice President, Specialty Channels
EXHIBIT 11
EXHIBIT 12
March 30, 2012
Dear Valued Foodservice and Vend Customers:
Effective with orders on June 15, 2012 / deliveries June 22, 2012, the PepsiCo Foodservice and
Vend Division will increase the price of our Frito-Lay Large and Single Serve
Large Single Serve
Single Serve
Increase
3.5%
3.5%
Please refer to the attached Price List (dated June 22, 2012) for complete details.
We consider several internal and external factors before making a price change to minimize
market disruption. Our commitment remains strong to support your channel with world-class
brands and business building solutions to sustain long-term mutual growth.
Thank you for your continued support of our brands and our company.
Sincerely Yours,
Tom Reynolds
Vice President Sales
FQTG Foodservice
EXHIBIT 13
5087 South Royal Atlanta Drive
Tucker, Georgia 30084
Phone: 770.723.0173
Fax:
770.496.1664
January 4, 2013
To: Flowers Foods Vend & Alternate Channels Customers
We continue to work daily on eliminating costs and improving
efficiencies throughout our operations to provide the best quality
products at the lowest prices possible.
Costs in many areas of our operations including some ingredients,
healthcare, labor, packaging as well as our co-packers are going up.
These increases are more than we have been able to recover through
cost cutting.
As a result, we will be adjusting prices of approximately 3% effective
with orders taken for Monday sales March 4 (product delivered on
March 1, 2 or 3).
See the updated price lists attached.
We appreciate your business,
Cliff Whitehead, NCE5
Vice President of Sales
Flowers Specialty Snack Sales, Inc
EXHIBIT 14
Date:
January 07, 2013
To:
Vend & Foodservice Snacks Customers
From:
Dave Wilcox
The food industry continues to experience rising costs particularly in the area of raw materials,
transportation, and labor. Mondelēz International has taken steps to minimize this impact where
possible, but now finds it necessary to pass on some of these increased costs. As a result, we will be
raising prices effective February 15, 2013.
The rate change varies on cookies, crackers, and infusions items (average increase-3.0%).
The new list prices are effective on Friday, February 15, 2013 on all items impacted by this
pricing action. Please contact your Mondelēz International Sales Representative with any
questions.
We appreciate your business and continued support.
Dave Wilcox
CVP and General Manager
US Foodservice Division
EXHIBIT 15
EXHIBIT 16
EXHIBIT 17
EXHIBIT 18
CONSUMER PRICE INDEX (CPI)
EXHIBIT 19
Below is the sales and use tax information as recent as June 1, 2012.
State
Ala.
Ariz.
Ark.
Calif.
Colo.
Conn.
D.C.
Fla.
Ga.
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Ky.
Louisiana
Maine
Maryland
Mass.
Michigan
Minn.
Miss.
Missouri
Nebraska
Nevada
NJ
NM
NY
NC
ND
Ohio
Oklahoma
Penn.
R. I.
SC
SD
Tenn.
Texas
Utah
Vermont
Virginia
Wash.
W.VA.
Wisc.
Wyoming
State tax rate
4%
6.6%
6%
6.25%
2.9%
6.35%
6%
6%
4%
4%
6%
6.25%
7%
6%
6.3%
6%
4%
5%
6%
6.25%
6%
6.875%
7%
4.225%
5.5%
4.6%
7%
5.125%
4%
4.75%
5%
5.5%
4.5%
6%
7%
6%
4%
7%
6.25%
4.7%
6%
4%
6.5%
6%
5%
4%
Use tax rate
8%
8%
7.5%
8%
7%
6.35%
6%
6.5%
6%
4.25%
6%
7%
7%
7%
7.5%
6%
8%
5%
6%
6.25%
6%
7%
7%
7%
6%
7%
7%
6.5%
7.5%
7%
5%
6.75%
7%
6%
7%
7%
5%
9.5%
7.5%
6%
6%
5%
8.5%
6%
5.5%
5.5%
Except the city of Tupelo where the tax rate is 7.25%
Except Philadelphia is 8%, and Allegheny County is 7%.
Summary of State Sales Tax Rates
Notes: In many cases local tax rates are additional. Vendors pay more for beverages in Bottle Deposit
States.
EXHIBIT 20
Bottle Bills in the USA
Twelve US states have bottle bills (many of those states are also campaigning for
updates and expansion), and still others have active campaigns for new bottle bills.
States with Bottle Bills
Current Bottle Bills
California
Connecticut
Guam
Hawai'i
Iowa
Maine
Massachusetts
Michigan
New York
Oregon
Vermont
.05 cent deposit
.05 cent deposit
.05 cent deposit
.05 cent deposit
.05 cent deposit
.05 cent deposit
.05 cent deposit
.10 cent deposit
.05 cent deposit
.05 cent deposit
.05 cent deposit