The JUICE MARKETAshgabat, TurkmenistanJune-July, 2013

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Table of contentsResearch Data – Slide 3.Stage 1: Store Check – Slide 4.Key indicators of the market resume the Store Check – Slide 5.Import market structure – Slide 6.Volumes of export of juice production from Russia– Slide 7.Participants of the market with indicator Distribution Level – Slide

8.Card of the basic brands of the market of key players on indicator

Distribution Level – Slide 9.The short description of key players of indicator Distribution Level

Distribution Level – Slide 10.Stage 2: F2F interrogations of the population of Turkmenistan –

Slide 11.Key indicators following the results of population polls

Frequency of consumption of juice on regions in % – Slide 12.Frequency of consumption of juice on age distinction in % – Slide 13.Brand of juice, respondents named as favourite – Slide 14.

Conclusion – Slide 15-16.

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Research Data

Goal: To define structure of juice, nectars and drinks containing juice market of Turkmenistan, to reveal key players, to define a favorite brand of consumers of a category.

Methodology: Research consisted of two stages: Stage 1: Store Check of outlets Stage 2: F2F population pollsSample: Stage 1: 100 trade outlets (Ashgabat) Stage 2: 1000 respondents (Turkmenistan)

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Stage 1: Store CheckFor the first research stage has been generated the panel of sample of Ashgabat outlets:

Objects of research:

Supermarket 2Minimarket 7Convenience 34Grocery/state outlet 9Shop in the open markets 10Kiosk 8Other (pavilions / containers / cellars) 30

Итого: 100

Categories: SKU information: Juice The brand name Nectars The manufacturer Juice-containing drinks Packing weight/volume

Outlet information: Packing type The address The price Outlet type

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Key indicators of the market resume the Store Check The spectrum of drinks in Turkmenistan is very wide. On store shelves of

capital juice, nectars, berry juices, steel and carbonated water, various soft drinks, kvass, tonics, power drinks are presented in a variety. Presents of cold tea and juice-containing drinks has grown last years.

In total in the market of Ashkhabad in categories juice/nectars/juice-containing drinks production more than from 50 manufacturers is presented, from which only 10,15 % brands of local manufacturers as it is presented on the diagram low.

As to segmentation on a price, the share of a high price segment in general structure of the market of juice is insignificant and constitutes only 4,92 %. The largest segment of our market of juice is a segment of low price - its share constitutes 61,85 %. The average price segment has a share of 30,77 % in general structure of the market of juice / nectars / juice-containing of drinks. The least share in a researched category belongs to brands of a segment a premium – 2,46 %

61.85%

30.77%

4.92% 2.46%Price SegmentLow <2 $/L

Medium 2-3 $/L

High 3-4 $/L

Premium >4 $/L

Import ; 89.85%

Local production; 10.15%

Import share

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Import market structure

More than 50 % of an import market of juice, nectars and juice-containing drinks of Turkmenistan is from Russia and Kazakhstan.

Belarus; 4.29%Armenia; 5.52%

Turkey; 6,14%

Other; 12.27%

Azerbaijan; 8.59%

Ukraine; 9.20%

Kazakhstan; 26.38%

Russia; 27.61%

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Export volumes of juice/nectar/juice containing drinks from Russia

According to express calculation of export of juice and nectars to Turkmenistan from Russia, given by company VVS, volumes have increased more than twice:

RESULTS OF EXPRESS CALCULATION on export of juice and nectars to Turkmenistan

Positions TN FTA The period

The appointment

countryDirection

Total quantity of deliveries

Quantity of the Russian

participants

Total sum of sales in $

2009, 2202901009

2011-May 2013 Turkmenistan Export 644 55 8 776 382

For comparison two quarters have been analyzed: 1st quarter 2012 and 1st quarter 2013. It is revealed that the market volume has increased more, than in 2 times! The market share of the leader - OC START TERMINAL UNI LOGISTIKS ON THE INSTRUCTIONS OF the OS VIMM-BILL-DANN DRINKS – has decreased on – 2,8 %. And the market share of its direct competitor - OC TMN LODZHISTIK ON THE INSTRUCTIONS OF OC COCA-COLA HBC Eurasia – has opposite increased on + 16,3 %! For a quarter in the market there were 2 new companies which have entered into the five of leaders among exporters.

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Indicator Distribution Level was considered on presence at least one brand of the manufacturer in an outlet.Goods of manufacturers of OC Chirkatinsky cannery “Jdi", OS "Pruzhansky canning industrial complex", Taiwan Import of Akva Grup, San Tic A.S., Arshani, TOB CIC Natural, OS Bykhovsky Konservno-ovoshchesushilnyj factory, OC Distance the Product, Turk Kizilaya, OC R.O.C. Moscow, Taiwan Factory, Tamek Gida, Ahal, Riks, ТОВ "EKO-SPHERE", ОDО Firm ABC are fixed in lessthan 10 % the researched trade outlets.

Participants of the market with indicator Distribution Level

Agromir SamarkandAslanda Gida San

Dellos FB GruppGalanz Bottlers

Gilan HoldingJV "MEVA”

Lotte Chkhilson CompanyMaSaFi Co.

OKF Corporation OC "Interagrosystems"OOO JMP International

OC AraratRaimbek Bottlers

Rita Food&Drink Co.Uretici

VitmarkJS COMPANY "Ruhubelent"

Vachanovichsky ZavodJS COMPANY Multon

JS COMPANY OBI ZulolSP Parahat

Nidan JuiceOS VBD Drinks

OS LebedyanskiyOS Progres

ODO Firm ABCOC Askaniya-Akva

OC KuptsovOc Nidan-Gross

OC SandoraOC RG Brands

OC OBIS CompanyOC of the JV of Coca-Cola Almaty Botlers

0% 10% 20% 30% 40% 50% 60% 70% 80%

19%24%

12%21%

64%17%

16%17%

13%11%

12%43%

51%42%

12%23%

38%12%

48%18%

83%23%

45%29%

10%12%

14%13%

18%62%

47%13%

54%

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Card of the basic brands of the market of key players on indicator Distribution Level

ИП Парахат

PARAHATGilan Holding

SANDORA

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The short description of key players of indicator Distribution Level

SP Parahat – the local manufacturer of juice and nectars. In the market since May, 2013 with the brand JOŞ. But because of competently organized active distribution of all for a month (research was conducted in the end of May-beginning of June 2013) takes of an in the lead position on availability of a product in the market.

Gilan Holding – Production Azerbaijan, the Baku factory on production of water and juice under trade mark Jalә since 2007.

OC «Sandora» - Production Ukraine. The company is created in 1995. Design cumulative capacity of the enterprises – about 1,5 billion packets of juice and juice goods in a year. The company exports 20 % of goods and is presented in more than 20 countries of the world. In Turkmenistan trade marks "Sandora" and "Sadochok" are presented in category.

Research has shown that grocery lines in the market are very limited – 77 % of manufacturers are presented in the market by one brand, 14 % - by two and only 9 % of manufacturers offer three and more brands of goods to the consumer. These are OS Lebedjanskiy (Russia) with marks "I", “Fruktoviy Sad", "Tonus", "FrutoNyanya"; OC RG Brands (Kazakhstan) with trade marks "Gracio", “Da-Da" and "Nectar Solnechnyi"; OS VBD Drinks (Russia) – marks "J7", “Lyubimyi", "J7 light" and the local manufacturer of JS Company "Ruhubelent" with marks "Galkynyş", "Diyar“ and "Altyn Zaman".

68 % of the brands which are present in the market of juice, nectars, juice-containing drinks are packed into cardboard packaging, in a glass bottle are 16 %, in PET - packaging are 13 % and 3 % are packed in cans/foils.

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Stage 2: F2F population pollsThe second stage of the research was conducted in July 2013Sample: representative, 1000 respondentsGeography: Turkmenistan (capital + key cities):

Region CitiesMen Women

Total15-19 years

20-44 years

45-64 years

15-19 years

20-44 years

45-64 years

Ashgabat Ashgabat 10 39 13 10 39 14 125

Ahal Tedjen 15 47 12 14 48 11 147

Balkan Balkanabad 7 26 8 8 26 8 83

DashoguzDashoguz 16 54 14 16 54 14 168

Kunyaurgench 4 13 2 4 13 3 39

LebapTurkmenabad 17 62 17 17 63 17 193

Seyidi 1 5 1 1 5 1 14

MaryMary 13 52 12 13 52 12 154

Bayiramali 8 24 7 8 24 6 77

91 322 86 91 324 86 1 000

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Key indicators following the results of population polls

Frequency of consumption of juice on regions in %

3 times a day or more frequently

Twice a day

Once a day

4-6 times a week

2-3 times a week

Once a week

2-3 times a month

Once a month

Less frequently than once a month

Don't drink juice/nectars

-5% 0% 5% 10% 15% 20% 25% 30%

Ashgabat

Ahal

Balkan

Dashoguz

Lebap

Mary

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Key indicators following the results of population polls

Frequency of consumption on age distinction in %

3 times a day or more frequently

Twice a day

Once a day

4-6 times a week

2-3 times a week

Once a week

2-3 times a month

Once a month

Less frequently than once a month

Don't drink juice/nectars

-5% 0% 5% 10% 15% 20% 25% 30%

15-24

25-34

35-44

45-54

55-64

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Key indicators following the results of population polls

The brand of juice named respondents as a favorite brand in %

GalkynyşJ7

JoşJuicyJUSS

RuhubelentSerdar

ÜljeBerezovyi

BlitsDiyar

DobryiLyubimyi

MiveMoya Semya

Does not drink juice/there is no favourite brandPalma

SadochokSandora

Fresh juiceJuice of Ukraine

Solnechnaya DolinaSolnechnyi Nektar

Fruktovyi SadYa

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

8.80%7.00%

2.80%0.50%

0.20%2.00%

0.40%0.10%0.50%

2.10%11.20%

33.50%5.80%

0.90%3.00%

8.90%1.30%

5.00%0.60%

0.10%0.50%

0.10%0.90%

1.90%1.90%

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Conclusion.

Juice and nectars in Turkmenistan is not included into the inventory of the first necessity.

According to experts data consumption of juice increased last years. In 2012 according to the Ministry of Trade juice consumption has constituted 12 l a year per capita. The most part of juice goods is consumed in big cities and capital. This results from the fact that in big cities earnings at people above, than on periphery.

Nevertheless, consumption of juice goods inhabitants in Turkmenistan essentially lags behind till now average indexes in the majority of the European countries. For comparison: in Germany average consumption of juice on one person constitutes about 45 liters a year. In Russia and Kazakhstan by different estimations of 20-25 liters in a year per capita.

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The Turkmen market of juice has a high potential. Consumption of juice and juice goods the next years will grow. Experts predict substantial growth of a market share of local manufacturers of juice. Simultaneously with a market saturation of "usual" juice the increase in a share of "functional" drinks (functional - any drink which is positioned as useful to health) is predicted.

Thank you for attention!

The address: Turkmenistan, Ashkhabad,

Mir3/2, build. 29, 1 floor,

Office TMH CompanyTel/fax: +993(12) 45-05-67Web-cite: www.tmhcompany.orgE-mail: info@tmhcompany.org