Bon Beverages

Bon Beverages – “Better beverages, for a better life”

INTEROFFICE MEMORANDUM

TO: FROM: DATE:

BOARD OF DIRECTORS KERRY VANCE 26-MAY-2011

SUBJECT: STRATEGIC AND OPERATIONAL REVIEW

On behalf of the Strategic Planning team, please find the attached report that addresses the future strategic direction for the company. The report contains a thorough environmental analysis, assessment of alternatives, strategic and operational recommendations, and an implementation plan. If you have any questions or concerns, please feel free to contact me.

Sincerely,

Kerry Vance c/o Strategic Planning Team

Bon Beverages – “Better beverages, for a better life”

Bon Beverages, Inc. Strategic & Operational Review May 8th, 2006

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Bon Beverages – “Better beverages, for a better life”

Executive Summary Bon Beverages Inc. (BB or the Company) is a small player in the beverage industry offering a range of healthy juice and soft drink products. Although initially successful due to product innovation, the company has not built on this success. Indeed, BB’s revenues and net income have remained flat for the past four years and no new products have been introduced.

Founding President and CEO, Hani Jafeer, will be stepping down on March 31st, 2006. Harvey Perry, VP of Bottling, has offered to purchase the bottling plant and a number of other opportunities have arisen which require that BB assess its vision for the future, the strategies for achieving that future, and the leadership which will deliver it.

All things considered, the Report proposes that over the period 2006 – 2010, BB: Refocus and re-brand itself as the premier health beverage provider for families focusing specifically on the 15 -35 year old demographic; Develop a deep and enduring core competence in the innovation and creation of new beverage tastes and experiences; Restructure itself to create a climate and culture which will support and nurture its new competences so that all activities...