trust admire respect good feeling

ADMIRE

RESPECT

GOOD FEELING

4 emotions

7 rational dimensions

Data are based on Global Reputation Pulse 2014 Study: Top and bottom 100 companies . Would buy the products Reputation Score 16% Would recommend the products Would work for Would invest in Would welcome into local community 31% 41%55%64% 13% 28% 38%50%59% 16% 30% 37%42%47% 13% 25% 31%33%35% 16% 30% 39%47%50% 0-3940-5960-6970-7980+ Support translated into business

Product & Enterprise

Recommend 43% 57% Recommend Impact on Commercial Power (NPS)

19 14 Global Food and Beverage Companies Compete across the 15 Largest Economies Mature marketsEmerging markets AustraliaCanadaFrance Germany ItalyJapan Spain UK US BrazilChina MexicoIndia Russia South Korea

Key Insights on Food and Beverage Reputation Globally 2013 20 Food and Beverage Reputation globally is Average The Food and Beverage Industry achieves overall a high-end average reputation score in 2013. The industry global reputation has fallen from strong to average with a 3-point drop 2011-13. The companies distribute with 8 companies that have an average reputation and 6 companies that have a strong reputation. In 11 out of 15 markets, the industry undergo reputation scores in decline. Overall Food and Beverage performs better in Mature than Emerging Markets, with Asia being the most challenged region perception and reputation-wise. On dimensions globally, the industry achieves its only strong score on Product/Services. On the 6 other dimensions, the industry is rated average with the lowest score awarded to Citizenship followed by Workplace and then Governance. In emerging markets the industry is perceived average across all dimensions. Reputation Dimensions & Drivers in the Food and Beverage Industry Overall the same 4-5 companies are in the lead across the 7 dimensions. Likewise, the same 2-3 companies close the bottom of the range across dimensions. On Workplace, Governance & Citizenship the score gaps between Top 5 Industry leaders are generally smaller than on the remaining 4 dimensions indicating that company differentiation is perhaps more challenged on these dimensions. Companies have to engage stakeholders across all 7 reputation dimensions, but the Top 3 drivers of reputation in the Food and Beverage Industry are Products/Services (19,1%) followed by Governance (14,4%) and Citizenship (14,1%). Skepticism & Support expressed by the General Public in Emerging Markets 10 of 15 Food and Beverage companies are perceived average in emerging markets Also, Food and & Beverage industry rate average across all 7 rational dimensions in emerging markets. But despite the perceived lower performance assessment, the General Public are more inclined to support the Food and Beverage Industry in emerging markets than in mature markets on both supportive behaviors buy and recommend.

Key Insights on Food and Beverage Reputation Globally 2013 21 General Public are highly familiar with Food & Beverage Industry well, but lacks the whole story Most Food and Beverage companies have a very high familiarity level among the general public. Although, only 3 companies (Coca-Cola, Nestl & Heineken) have the same degree of familiarity in home market as well as global markets. When looking at distribution of scores across reputation dimensions, the General Public is overall positive, but many respondents also remain unsure and undecided particularly on Workplace, Governance & Citizenship (58-66%) which tells more about who you are as a company. Two of these are key reputation drivers of reputation in the food and beverage industry. Converting these fence sitters through targeted communication would be very impactful on the corporate reputation of the food and beverage companies. Lack of differentiation among companies when it comes to Expressiveness and Personality Traits The General Public rated Food and Beverage companies the highest on personality traits such as being reliable, imaginative and friendly all traits that are positive drivers of reputation. On expressiveness, food & beverage industry has similar profiles with particular importance attributed to standing out, being consistent, genuine and meeting customer needs. Nestl and the Coca Cola Company in the lead with the strongest expressive profiles

22 2 3 Companies are on par 1 75,272,0 71,771,070,069,669,269,168,866,365,565,167,9

Emerging Markets 23 Food and Beverage Industry as a whole performs better in Mature Markets Mature Markets All Global Pulse scores that differ by more than +/-0.9 are significantly different at the 95% confidence level.. All Mature/Emerging Pulse scores that differ by more than +/-1.3 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). All Global Pulse scores that differ by more than +/-0.9 are significantly different at the 95% confidence level.. All Mature/Emerging Pulse scores that differ by more than +/-1.3 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the Pulse score on a 0-100 scale). Global Reputation n= 22.815

Reputation more challenged in Asia with South Korea a critical focus area for Food and Beverage companies 24 Food and Beverage RepTrak Score Globally Germany Australia S. Korea US France Japan ChinaBrazil Mexico UK India Spain Italy Canada 65,3 n= 22.815 All Global Pulse scores for Food and Beverage industry that differ by more than +/-0.9 are significantly different at the 95% confidence level. Russia 57,1 69,6 73,275,273,072,972,871,770,870,369,769,368,567,365,5

Products and Performance are the stronger dimensions of Food and Beverage Industry reputation The Food and Beverage Industrys average Pulse score grounded in average dimension scores with the exception of Product and Services being strong The dimensions with the highest scores are Products/Services and Performance. Citizenship received the lowest ratings closely trailed by Workplace and Governance The Food and Beverage Industrys average Pulse score grounded in average dimension scores with the exception of Product and Services being strong The dimensions with the highest scores are Products/Services and Performance. Citizenship received the lowest ratings closely trailed by Workplace and Governance 25 All Global Food and Beverage Dimension scores that differ by more than +/-1 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the RepTrak Pulse score on a 0-100 scale). All Global Food and Beverage Dimension scores that differ by more than +/-1 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the RepTrak Pulse score on a 0-100 scale). Product/Services: 'Company' offers high quality products and services -- it offers excellent products and reliable services Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business Workplace: 'Company' is an appealing place to work -- it treats its employees well Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively Performance: 'Company' is a high-performance company -- it delivers good financial results Product/Services: 'Company' offers high quality products and services -- it offers excellent products and reliable services Innovation: 'Company' is an innovative company -- it makes or sells innovative products or innovates in the way it does business Workplace: 'Company' is an appealing place to work -- it treats its employees well Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings Citizenship: 'Company' is a good corporate citizen -- it supports good causes & protects the environment Leadership: 'Company' is a company with strong leadership -- it has visible leaders & is managed effectively Performance: 'Company' is a high-performance company -- it delivers good financial results

The Food and Beverage industry, excluding Top 4 above the curve, struggles with familiarity at a global level, as the majority of respondents worldwide were unfamiliar with the Food and Beverage companies analyzed 26

BUY 8% Emerging Markets are more inclined than Mature Markets when it comes to supporting Food and Beverage companies RECOMMEND 15%36%57%86% 4%8%23%42%80% 27 15%30%59%83%93% 12%23%48%78%92% Mature Emerging The same Pulse score earns Food and Beverage companies fewer people willing to buy or recommend their products in a Mature Markets than in an Emerging one. Reputation Score 0-3940-5960-6970-7980+ n= 22.815

What Drives Food and Beverage Reputation Globally

Expressiveness There is room for improvement and higher ambition for Food and Beverage companies Has the largest impact on reputation in the industry =

Most Food and Beverage companies show a similar profile when it comes to Expressiveness. One exception being Coca Cola standing out from the crowd 30 Strongest Expressiveness profiles Expressiveness scores that differ by more than +/-1.9 are significantly different at the 95% confidence level. Weakest Expressiveness profiles 75,270,065,565,1

31 Expressiveness scores that differ by more than +/-1.9 are significantly different at the 95% confidence level. 31 Most Food and Beverage companies show a similar profile when it comes to Expressiveness, but with Nestl leading the field. Strongest Expressiveness profiles Weakest Expressiveness profiles 75,270,065,565,1

32 Has the largest impact on reputation (driving 52% of reputation) - Has a negative impact on reputation = = - Personality traits associated with Food and Beverage Food and Beverage companies are given slightly higher ratings in traits such as being friendly, imaginative and reliable while the association to negative personality traits is low. Again Food and Beverage in due distance from the reputation leader BMW. -

What Drives Reputation in Denmark - in 2014

94,0 36,4

13,6 -8,3

OMXC20 - Denmark

41 40 most visible companies - Denmark

So the good news is CSR does matter. If you deliver on CSR 73% of consumers would definitely recommend your company to others. If you do not deliver you get recommendations from only 17% of consumers So through CSR you can help increase sales. For every 5 points you improve your CSR perception on a 100 point scale recommendation will go up with 9%. This data will make your CEO listen up

The bad news The majority of consumes do not know what companies stand for when it comes to CSR. Even after spending an average of $ 50 million a year on CSR activities, 56-61% of consumers across the 15 largest markets in the world are neutral or not sure if the companies can be trusted to deliver on Citizenship, Governance, and Workplace. Only 35% of consumers believe the top 100 companies are good corporate citizen that supports good causes & protects the environment. Only 40% believe the top 100 companies are responsibly-run companies that behaves ethically and is open and transparent in its business dealings. This data will make your CFO sleep bad at night

We missed the issue of obesity and the value of healthy and nutritional food. We were behind, while Nestl was riding that wave. Not being in tune with society, with the benefit of hindsight, can cost you dearly. Paul Polman, CEO of Unilever Source: McKinsey & Company: March 2013

trust admire respect good feeling

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