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THE MONARCH BEVERAGE COMPANY

THE MONARCH BEVERAGE COMPANY. DIDIER ARNAUD April 14 th , 2010 UPS Headquarters. 16 th Annual Georgia Tech Global Business Forum. WHO IS MONARCH BEVERAGES. Franchise beverage company created in 1965, headquartered in Atlanta, owned by its management

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THE MONARCH BEVERAGE COMPANY

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  1. THE MONARCH BEVERAGE COMPANY DIDIER ARNAUD April 14th, 2010 UPS Headquarters 16th Annual Georgia Tech Global Business Forum

  2. WHO IS MONARCH BEVERAGES • Franchise beverage company created in 1965, headquartered in Atlanta, owned by its management • Offices in Paris, Sao Paulo, Buenos Aires, Singapore, Bamako (Mali) • Lean structure with high level, independent minded staff / management – only 2 team members out of 12 dedicated to administrative tasks – and 7 nationalities!

  3. MONARCH’S BUSINESS MODEL • Selling flavor concentrates and energy drinks, and franchising soft drink brands to local independent bottlers across the world who do not belong to the Coke or PepsiCo system.   • Monarch works with bottlers, distributors and retailers to market a wide range of branded and custom beverage products. Monarch operates in 33 countries. • Monarch holds registered trademarks, licenses and trade secrets that give it a competitive edge in markets around the globe.

  4. MONARCH’S RECIPE FOR GROWTH • Market and competitive environment • Choosing the right partners • Protecting your business • Regulations • Logistic • Be flexible and have the right staff

  5. MARKET & COMPETITIVE ENVIRONMENT • Monarch only competes in markets where there is only one of the top 2 beverage companies. Top markets for Monarch: Bolivia, Malaysia, Angola, Bangladesh, West Africa… • Do not hesitate to target second tier markets: it is often better to be big in smaller markets than small in big markets. • 91% of Monarch business is in developing countries – but an attempt to get in China resulted in big losses… 16th Annual Georgia Tech Global Business Forum

  6. THE RIGHT PARTNER(S) • Exporting is a tough business if you don’t have the right partner, this is a key element to your success so take your time to make the right choice • If unsure of your future partner’s potential, include your expectations in your contract: minimum quantities, quality requirements… • Monarch often experienced failed partnerships, but failure is part of the process; just keep trying! 16th Annual Georgia Tech Global Business Forum

  7. PROTECTING YOURSELF • Make sure your IP is protected; trademarks and other intellectual property can take years to be registered. Start the process early through an IP firm you can trust. • Have a lawyer draft a contract that you can use as a base for all future negotiations. • Do not accept litigation clause in market where reliable legal system is not in place. • Get paid by Letter of Credit of cash in advance; at least for initial order. 16th Annual Georgia Tech Global Business Forum

  8. REGULATIONS • For some industries, this is a moving target; many countries have inefficient regulatory bodies. • Use local partner to assist in the process, chances are they have experience in dealing with them (but control the process). • Even if you think everything is OK, ship a small quantity of product to test the custom clearance process. • Case in point: Rush! Energy in Morocco. 16th Annual Georgia Tech Global Business Forum

  9. LOGISTICS • Make sure to have a freight forwarding company you can trust for your shipments. • Understand what it will take to move your cargo from the U.S. to your target market; maybe your product is hazardous and you will need a special license! • Before you export you should know what the duties will be upon arrival; your partner / customer should know too since they will have to pay them. 16th Annual Georgia Tech Global Business Forum

  10. LOGISTICS (2) • Insure your cargo, or better, use incoterms that moves ownership / responsibility to buyer from plant or port. • Manage supply chain based on target market and expected quantities. Monarch ships full containers from the U.S. to South America and Africa, but pallet orders from China contractor plant for South-East Asia markets. 16th Annual Georgia Tech Global Business Forum

  11. KNOW YOUR VALUES, BE FLEXIBLE • You have a competence, or a recognized name in your industry, and you are an American company: that in itself is a selling point! • Respect cultural differences: nobody expects you to blend in, but nobody likes to be told what to do. • Be flexible in your selling proposal; Monarch offers a choice of flavors under one name to adapt to local tastes. 16th Annual Georgia Tech Global Business Forum

  12. CASE STUDY: ARUBA • A bottler sells Pepsi products but for one Monarch brand (Nesbitt’s); despite the low level of business, Monarch kept a close contact with bottler. • When PepsiCo decided to stop producing locally, Monarch offered the bottler its portfolio of brands: American Cola, Bubble Up, Kickapoo, and 5 new flavors of Nesbitt’s. • Monarch’s business in Aruba doubled in 2009 and is expected to double again in 2010. 16th Annual Georgia Tech Global Business Forum

  13. MONARCH PRODUCTS 16th Annual Georgia Tech Global Business Forum

  14. Thank you Contact Info: Didier Arnaud (t) 404.262.4021 (e) darnaud@monarchbeverages.com www.monarchbeverages.com 16th Annual Georgia Tech Global Business Forum

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