Barry’s Tea Global Business Strategy AN INVESTIGATION INTO GLOBAL BUSINESS STRATEGY AND ONLINE PRESENCE FOR BARRY’S TEA IN CANADA AND AUSTRALIA

Agenda Meet the Team

Barry’s Today

Market Overview Canada

Market Overview Australia

Major Retailers

Competitors

Proposed Strategy

Online Presence

Recommendations

Summary

The Team

John O’NeillContracts Manager at Norland

Josh Deats Territory Manager at Vmware

Craig Knott Technical Support at Voxpro

Alec O’Connell Application Support Analyst at Musgrave

Éamonn Ó CaoimhTechnical Contract Manager at GE

Barry’s Tea – Current overview40 % of Irish marketValue of Irish Market € 78 MillionOver 100 Years of R and DIncreased CompetitionPlateau

Market Overview - CanadaThe population of Canada is 35,540,000 people.(86.2%) of people in Canada lived in Ontario, Quebec, British Columbia, and Alberta.Canada has a growing disposable income and growing salary.

Market Overview - Canada

Market Overview – Size of Canadian Tea Market

Canadian tea market is worth approx € 302.8 million.Specialty teas accounted for €90 million Regular tea bags (73 % tonnage) Canadian tea consumption is expected to Grow by 40% by 2020

Market Overview – AustraliaTotal population of Australia 23 MillionAustralia is showing a decline in disposable incomeAustralia has a lower growth of urbanization17,000 KM from IrelandEast Coast of Australia maintains most of the population Dropping disposable income since 2008

Market Overview – Size of Australian Tea MarketAustralian tea market is valued at or €320 millionMarket is dominated by black and green teaEstimated growth of tea market at 5%Similar Trends to Canada as per tea type

Tea Trends in Australia

Black Tea English Breakfast Green Tea Earl GreyChai Tea Fruit Infusion Camomile Lemon

Market Overview - Major Players

Canada

• Massive Market Reach

• Over 1000 stores in Canada

• Innovative and flexible

Australia

• Largest retailers in Australia

• Barry’s has existing presence in over 600 stores

Online

• 50/50 split between with Amazon in sales

Market Overview – Canada/Australia/Online Competitors

AUSTRALIA COMPETITORS CANADIAN COMPETITORS ONLINE COMPETITORS

Canada/Australia Comparison

Canada – Proposed Market40% projected growth by 2020 in consumptionMarket projected growth 35% higher than AustraliaCanada ranked as 7th easiest place for doing business globallyOntario has highest population, urban density and constitutes over 40% of the population

Canada – Proposed MarketHigh exposure and advantages to border proximity (USA) 200KMDistance from IrelandToronto population is over 2.53 million, half the population of Ireland in one City!

Canada – The Clear Choice

Proposed Strategy for Entry1. Focus on Canada due to explosive growth forecast and economic stability.

2. Targeting major retailers through the use of professional sales developer with experience in market entry

3. Direct shipment – Port Hope

4. Hiring Canadian business development manager with distinct KPI’s and reporting structure to gain business insight and allow for customer response.

5. Establish base office in Toronto

6. Integrate all above points with an expanded online strategy that is traceable through a CRM system

7. Specific focus on Ontario due to high population, demographics and urbanization, particular entry points such as Toronto,

8. Using Black Tea and emerging blends for introduction to market

9. Possible need for re-brand due to competitors using similar packaging (Red Rose)

Proposed Strategy - Ontario

Proposed Strategy - Ontario

Proposed Strategy - BrandingQualityDiaspora is an element however the risk of isolation from a broader market is real72 box in Canada is the standardBlending to suit the Canadian taste may need to be addressed

Proposed Strategy - LogisticsDirect distribution through Loblaw's into TorontoDelivery to Toronto Port for ease of distributionMassive advantage to distribute to the US with border proximity or consolidate logistics effortResponse time to customer needs

Resource ImplicationsManagerial buy in and willingness to change

Available personnel and new personnel that fit and align with the culture and strategy

Time

Raw costs

Adaptability

Change in company culture

Appetite for risk

Control

The People – Candidate for GrowthProfessional sales and marketing person with experience in FMCG and market entry – Tea familiarBe held accountable with KPI and performance structure. If you think hiring a professional is expensive, try and hire an amateur

Advantages of Approach1. Maintaining control of brand and having

access to direct market data

2. Access to consumers in a dense urban market with high pending capacity

3. Broader reach that extends further than the diaspora

4. Increased pressure on competition

5. Success that can be brought home

6. Lower Risk

7. Cost effective exit strategy

8. Less up front investment than subsidiary

Online Market Overview - CanadaTo hit €26 Billion for sales in 2018!Most online nation on the planetOver 90% are online51% of Canadian internet users made online purchases in 2010Over 45 hours per month onlineAverage online spend over €910 for those who shop.

Online Presence - Now

Online Presence - NowAlready improved since first visit! Proving effectiveness and flexibility with campaigning.Need to add list of domains for SEOPromote in Canada and create Canadian LinkedIn pageRecognise threat – www.barrystea.comCompliment the shelves, keep engaging and leverage momentumSuccess factorsCorrelation between fans and Adwords campaign

SummaryA focused coherent and consolidated approach with buy-in from the top and a willingness to change and adapt Realise the necessary investment in resources from a time, revenue, risk, people and process perspective needs to be realised. Canada is a prime, open and workableOur research suggests entrance through Major Retailers as an exporter and the use of ground leverage would assist in launching a successful campaign

Thank You - Questions