Ritchy Retail Book

Boost your sales in retail with RETAIL GUIDE 1

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CONTENTABOUT US.................................................................................................................................... 4Basic Terms: Vaping.................................................................................................................................... 6Basic Terms: Electronic Cigarette............................................................................................................ 7 LIQUA Vaping Pen.............................................................................................................................. 8 LIQUA Qube.......................................................................................................................................... 9 How to display LIQUA e-devices....................................................................................................10Basic Terms: E- Liquid................................................................................................................................ 11 LIQUA E-liquid portfolio...................................................................................................................12 LIQUA Elements vaping opportunities.........................................................................................15.LIQUA RETAIL PRINCIPLES...................................................................................................... 17 PRICING............................................................................................................................... 18 SHELVING........................................................................................................................... 20 MERCHANDISING.............................................................................................................. 26 Quality and cleanliness at point of sale.......................................................................................37TPD and CLP VAPING COMPLIANCE...................................................................................... 38Glossary........................................................................................................................................................42 3

about usAbout RitchyRitchy is a worldwide technology company, that designs, develops and sells e-liquids ande-cigarettes under LIQUA brand. It was founded in 2009 and now has an international teamof over 200 experts based around the world. Ritchy has 2 production facilities in the CzechRepublic and China, and 4 distribution centers. LIQUA e-liquids and e-cigarettes are sold andloved in over 85 countries.Quality is our PassionAs vapers ourselves, we strongly believe that vaping should be a reliable and enjoyableexperience. We follow the strictest EU quality standards in our production facilities and rawmaterials. We’ve installed a zero cross-contamination protocol and monitor thousands of flavorcomponents to be on the safe levels, precision of compounding and extra rigorous mixing,2-year proven shelf life. Also, all products and packages are fully TPD- and CLP-compliant withfull notification and assurance from Ritchy. *RITCHY QUALITY & SAFETY PROCEDURESDEVELOPMENT F lavors developed from high purity concentrated raw materials, not pre-mixed food flavors. F lavor-device compatibility testing - including coil life, atomization, thermostability. V erified 2-year shelf-lifePRODUCTION ISO 9001, GMP certified production facility with ISO Class 8 Cleanroom Z ero cross-contamination production process A utomatic gravimetric compounding with average 0.01% precision N itrogen supported storage and mixing H igh performance 3-axis mixing process*Read more about TPD (Tobacco Product Directive 2014/40/EU) and CLP (the Regulation (EC) No 1272/2008 on theclassification, labelling and packaging of substances and mixtures) Compliance on page 38.4

PRODUCT A ll components concentrations are well below strictest available safety limits for occupational hazards and toxicity N o Diacetyl, Acetoin, Acetyl Propionyl, colorants, or any components with carcinogenic, mutagenic or harmful for reproduction properties S pecial control for PAH, Phthalates, Diethylene Glycol, heavy metals and non-nicotine alkaloids H ighest purity nicotine is guaranteed H ighest USP standard PG and VG available on the market S ub-PPM level nicotine controlPACKAGING AND COMPLIANCE S pecial food grade bottle material for extended shelf life M ulti stage decontamination of bottles and nozzles 100% leak testing of finished products TPD, GHS* and CLP compliant C ertified child-proof package with tamper proof control S DS (Safety Data Sheet) documentation for all products in multiple languages and regulatory domainsQUALITY CONTROL In-house calibrated laboratory E very batch of finished goods content control with 3 years samples retention R aw materials in-depth analysis and validationSECURITY CODE ON EVERY BOTTLE TO ALLOW RELIABLE GENUINEPRODUCT VERIFICATION BY CONSUMER.*The Globally Harmonized System of Classification and Labelling of Chemicals is an internationally agreed-uponsystem, created by the United Nations. 5

basic termsVapingThe term to vape is an abbreviation of vapor or vaporize. It is an act of inhaling and exhalingvapor produced by an electronic cigarette or a similar e-device.The process of creating vapor within an e-cigarette uses an atomizer coil made from resistancewire, which is fed a current from a battery causing it to heat up to a temperature hot enoughto vaporize a flavored e-liquid. The heat however is much lower than in regular cigarettesand most importantly does not require burning. This eliminates the process of combustion aswell as presence of smoke typical for consumption of traditional tobacco cigarettes.Instead of smoke, e-cigarettes produce vapor-like steam that resembles at first glance smokeof a regular cigarette, but is odorless or with hints of flavor-based aroma.Advantages of vapingVaping brings the freedom to make choices that allow vapers to enjoy, express themselvesand make vaping a part of their lifestyle. E-Device market provides countless options to choose from or even to customize via accessories to best fit the needs of each vaper. E-liquid flavor offer is so wide it is ready to satisfy any vaper depending on their taste preference or even current mood. Nicotine strength of an e-liquid is also variable and a vaper can easily control it. Unlike cigarettes, e-liquids also come in 0mg version that is absolutely nicotine free.Vaping can also be considered from a financial point of view. In many markets, vaping can be inthe long-term use, cheaper than traditional cigarettes. However, this fact and the amount ofsavings vary significantly depending on conditions of each individual market.6

Electronic cigarette(e-cigarette or e-device)An electronic cigarette is a battery powered device that uses patented technology to producevapor out of liquid that is then inhaled by the vaper.The main parts of an e-cigarette include:A battery – used to power the heating element of an electronic cigarette (either an atomizeror a cartomizer).An atomizer – acts as the heating element of an electronic cigarette. It is made of a metal coilthat heats up when the battery is activated. The heat vaporizes liquid contained in a tank ofan e-cigarette and turns it into vapor. Atomizers require replacement over time (the ones builtinto cartomizers are meant to be disposable once the liquid has been used up).A cartridge/cartomizer/clearomizer – A cartridge is a mouthpiece of an electronic cigaretteand contains liquid that is vaporized by an atomizer. Cartomizer is a combination of anatomizer and cartridge built into one piece. Clearomizer = Tank usually comes in transparentor clear execution. Cartomizers or clearomizers come in refillable and disposable versions.FUNCTIONING PRINCIPLE of an e-cigaretteE-liquid is E-liquid in contacttransported with heated coilinto atomizer atomizes into fine(where heating particle mist whichcoil is located). is called vapor E-LIQUID ATOMIZER VAPORE-CIG 7

LIQUA DevicesLIQUA VAPING PENLIQUA Vaping Pen is a hassle-free device with a 2.0ml tank, one-touch operation, and a micro-USB charger, allowing for vaping and charging at the same time.Each 1.8 Ohm atomizer is dry-burned and oven-cooked to deliver a 100% pure, fresh taste fromthe very first vape. The device is also equipped with a dual-coil atomizer, meaning that thelightweight, easy-to-handle 900mAh battery is able to work more efficiently, delivering up to300 puffs per full charge.The LIQUA Vaping Pen comes in 2 stylish variants, black and white and is optimized to workbest with LIQUA e-liquids, however it will work perfectly well with any brand of liquids. CLEAR TUBE WITH MOUTHPIECE MICRO USB CORD Our Vaping Pen has a LIQUA Vaping Pen is equipped with a 2ml liquid tank bo om micro-USB charging cord that ATOMIZER plugs into almost any device. Dual coil bo om-feed With USB pass-through technology you atomizer is specially can even charge and vape at dry-burned and oven- the same me (no need to dismount cooked, delivering a the vaping pen for charging). pure, fresh taste fromONE TOUCH OPERATION the very rst vape. The LIQUA Vaping Pen is easy to use, with one-touch opera on. RECHARGEABLE BATTERY 900mAh ba ery has high capacity and low internal resistance.8

LIQUA QUBEWe believe that the ideal vaping experience is a marriage of technology, beauty, andconvenience, so we made LIQUA Qube with all three points in mind. This e-device falls intocategory of MODs which are e-cigarettes often in the shape of a box or a tube that promisemore performance and long battery life.LIQUA Qube in an ideal device for those who want flexibility and convenience combinedwith an amazing flavor and vapor production. It comes with 10ml (or 2ml for TPD markets)tank and 3000mAh battery included, and promises 50W of vaping power. It houses severalunique features such as one-push atomizer installation, an airflow system designed toprevent leakage, and a unique circuitry system which allows for easy adjustment of power. REMOVABLE 10ML TANK* OLED DISPLAY Pyrex Glass Tank for easy exchange High resolu on, organic and cleaning (*2ml for EU) LED display interface with easy naviga on 50W VAPING HIGH PERFORMANCE 3000 MAH Stainless steel coil Real capacity & with puri ed co on ba ery included ATOMIZER DESIGN Easy one-push installa on 9LIQUA QUBE is available to selected countries only.

How to display LIQUA e-devicesTo best display LIQUA devices, the following principles apply: LIQUA Vaping Pen and LIQUA Qube should be kept on shelf with other e-cigarettes LIQUA Vaping Pen and LIQUA Qube should be displayed next to each other; if possible the device should be also displayed outside of its packaging LIQUA devices on shelf must be clearly marked with a price We recommend to place the devices in the middle – upper area of the shelf as illustrated in the scheme below If a display is available, it must be used to highlight the productPrices indicated on price labels in this and all other images in this document are only illustrative.10

basic termsE-liquidThe content of an electronic cigarette is called an e-liquid, or e-juice which usually consist offour ingredients:- propylene glycol (PG)- vegetable glycerin (VG)- flavorings- nicotine (optional)The base of an e-liquid is a mixture of two natural substances - propylene glycol (PG) andvegetable glycerin (VG) which gives the e-liquid its texture and allows to create the vapor-like smoke. The ratio of PG and VG used in an e-liquid defines the final vaping experience.Higher concentration of VG, which is thicker in consistency allows to create more smoke, but,to work efficiently it requires using a high-powered e-device. PG that is thinner in consistencycreates less vapor but will work well with less-powered devices. In a higher concentration, PGwill improve intensity of flavoring of the e-liquid.Flavoring is what gives an e-liquid its distinct flavor. The substance is usually a food flavoring,or a flavoring created specifically to be used in e-liquids.Nicotine is an optional ingredient in e-liquids and its concentration can vary. Nicotineamounts contained in LIQUA e-liquids are 0mg, 3mg, 6mg, 12mg and 18mg. 11

LIQUA E-LIQUID PORTFOLIOLIQUA MIXLIQUA MIX represents a premium range in the LIQUA portfolio. Products feature an all-starline-up of flavor combinations developed by our in-house team of e-Mixologists. LIQUA MIXseeks to capture the most popular tastes in vaping, reformulating them to create unmatchedtaste and vapor production, at a very attractive price.The delicious mixed flavors come in 10ml and 30ml* formats and 5 nicotine strengths (0, 3, 6,12, 18 mg/ml). - 35 PG/65 VG for low nicotine strengths (0, 3, 6 mg/ml) - 50 PG/50 VG ratio for high nicotine strengths (12, 18 mg/ml)1. TOBACCO MIXES 2. FRUITY MIXES1. SWEET TOBACCO 2. CHERRIBAKKI 3. ICE TOBACCO 1. PINA COOLADA 2. TUTTI FRUTTI 3. TROPICAL BOMB 3. STRONG MIXES 4. SWEET MIXES1. ICE FRUIT 2. SHISHA MIX 3. CHOCOLATE MINT 4. CRANBERRY BLAST 1. BANANA CREAM 2. VANILLA ORANGE 3. NY CHEESECAKE CREAM5. CREAMY MIXES 1. MANGO MILKSHAKE 2. STRAWBERRYYOGURT 3. JASMINE TEA *Sales of 30ml e-liquids are restricted in some markets, please check your local legislation.12

LIQUA ELEMENTSLIQUA Elements represents our flagship range of great-tasting mono-flavors, arranged in 6easy to identify groups to help you quickly find a desired taste.LIQUA Elements come in 5 nicotine strengths (0, 3, 6, 12, 18 mg/ml) and 50 PG/ 50 VG ratio.Products are available in 10ml and 30ml* package sizes. 1. CLASSIC TOBACCO1. TRADITIONAL 2. AMERICAN 3. BRIGHT 4. CUBAN 5. DARK 6. TURKISH TOBACCO BLEND TOBACCO CIGAR TOBACCO TOBACCO2. REFRESHINGLY STRONG 3. JUICY BERRY1. MENTHOL 2. TWO MINTS 3. LICORICE 1. BERRY MIX 2. BLACKCURRANT 3. CHERRY 4. STRAWBERRY 5. BLACKBERRY4. FRESH & FRUIT1. APPLE 2. MELON 3. PEACH 4. WATERMELON 5. PINEAPPLE 6. ORANGE5. SWEET & INDULGENT 6. DELICIOUSLY DRINKABLE1. CARAMEL 2. CHOCOLATE 3. COOKIES 4. VANILLA 5. CREAM 1. EXTREME DRINK 2. COFFEE 3. COLA 4. BLACK TEA*Sales of 30ml e-liquids are restricted in some markets, please check your local legislation. 13

LIQUA CRYSTAL LIQUA CRYSTAL is a non-flavored nicotine (18MG) PG/VG base that is intended to be squeezed into a 0 mg e-liquid to get desired nicotine strength. The product is primarily not intended to be vaped alone. Available in 10ml package.14

Explore new flavor combinations withLIQUA Elements VAPE & ENJOY LIQUA Elements flavors are balanced perfectly for all-day- vaping. They can be vaped and enjoyed as each individual mono- flavor according to current taste preferences. MIX & DISCOVER To go beyond a simple flavor one can easily discover new unique combinations by mixing individual LIQUA Elements e-liquids together! It is possible to create endless mixed variations so that anyone can be the artist of their own vape. To Mix & Discover Liqua Elements flavor combinations: No experience or knowledge is required You can create unlimited flavor combinations It is quick and simple with no extra equipment needed It requires no steeping time so the new flavors can be enjoyed immediately LIQUA Elements range provides unlimited opportunities to explore new flavor combinations. To wake up an artist in each vaper, we have created a selection of recipes for inspiration… 15

LIQUA Elements Recipe inspirationsICY BERRIES BLACKBERRY % ml 53 BERRY MIX 50 1 42 TWO MINTS 40 0,8 8 LICORICE 8 0,16 2 2 0,04CAFFÉ MOCHA COFFEE % ml 35 CHOCOLATE 33,3 0,66 35 CREAM 0,66 35 33,3 0,66 33,3RAINBOW YOGURT CREAM % ml WATERMELON 35 0,7 37 BERRY MIX 30 0,6 32 PEACH 30 0,6 32 5 0,1 5 The rest is purely up to your imagination…16

LIQUA RETAIL PRINCIPLESTo boost your sales with LIQUA products we recommend totake advantage of the LIQUA RETAIL PRINCIPLES, because: If the goods are not physically AVAILABLE or PROPERLY DISPLAYED, shoppers cannot buy them. If the goods are not marked with a PRICE, shoppers may think that they cannot afford them. If the goods do not have an acceptable QUALITY, shoppers will not want to buy them. Shoppers want to see the merchandise and ideally be able to take it in their hands. Shoppers want to be able to make a choice. In 70% of cases, shoppers decide to make a purchase directly in the shop.On the upcoming pages, find LIQUA RETAIL PRINCIPLES in the following areas: P PRICING S SHELVING M MERCHANDISING 17

P PRICING RETAILER PRICE OF LIQUA PRODUCTS Pricing is simply marking products with correct selling price. When displayed, each product should always be clearly labeled with a price tag. 3€Liqua 10ml4€ STICOWEBBEAAECCTCCOO 4€ CHERRI- 4€ SHISHA 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€ MENTHOL 3€ TWO 3€ LIKORICE 3€ BAKKI MIX BLEND TOBACCO CIGAR TOBACCO TOBACCO MINTS4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€ FRUTTI BOMB FRUIT MINT BLAST MIX CURRANT MELON4€ VANILLA 4€ NY 4€ JASMINE 4€ MANGO 4€ SYOTRGAUWRTBERRY4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM 3€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€ ORANGE CR. CHEESECAKE TEA MILKSHAKE DRINK TEA Attention: A shopper will not buy a product if it is not marked with a price tag – up to 70% of sales! 18

ON-LINE In case of online sales of LIQUA products, the same rule applies as forE-SHOP traditional point of sale – the price of a product must be clearly visible.Rules for price indication of LIQUA products fromdistributor to retailer: Distributor can only recommend a final selling price to retailer Distributor cannot intervene in the pricing policy of the retailer; he may, however, suggest an optimal price range The selling price is always determined by the retailerDue to these facts, Ritchy as well as its distributors act as referrers only and never makedecisions on final retail price for the end consumer. The final selling price is determined by eachretailer individually.There are two types of prices:1. Standard (shelf) price - standard price of a product on the shelf or in an e-shop2. Promotional price – standard price discounted in support of sales, promotional price is lower than the standard priceIn case of promotions and discounts, the labelling of products witha distinctive price tag that highlights original vs. new price is one of the most importantsales support tools.Price label of a product in a promotion E-liquids LIQUA 10mlmust always include: Old price New price Product name Volume of product/Package size 5€ 3,99 € Standard price New price 19

S SSHELVINGPLACEMENT OF LIQUA PRODUCTS ON SHELFShelving or Shelf Management is a process that involves facilitating the display of productson the shelf in a manner that is appealing to the shopper.General rules for placing products on shelf: Products of one brand are always placed horizontally next to each other. This increases the clarity and visibility of the brand on shelf for the shopper. Do not mix the products of one brand with other brands, as this would decrease their visibility. Products must always face the shopper from its front side and the product logo must be easy to read. Every flavor should have its own facing on a shelf. Never place different flavors on a shelf behind each other. By multiplying the number of facings of a product/flavor on a shelf next to each other you increase visibility. Do not mix product ranges and sub-ranges within one brand.20

PROPDRUOCDTUCOTROIERINENTTAATTIIOONNSWEET 4€ SICWE EET 4€ CHERRI- 4€ SHISHA 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€ MENTHOL 3€ TWO 3€ LIKORICE 3€TOBACCO TOBBAACCCCOO BAKKI MIX BLEND TOBACCO CIGAR TOBACCO TOBACCO MINTSPINA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€COOLADA FRUTTI BOMB FRUIT MINT BLAST MIX CURRANT MELONBANANA 4€ VANILLA 4€ NY 4€ JASMINE 4€ MANGO 4€ SYTORGAUWRTBERRY4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM 3€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€CREAM ORANGE CR. CHEESECAKE TEA MILKSHAKE DRINK TEASWEET 4€ TICOTSEBOWABCECAEOCTCO 44€€ CHERRI- 4€ SHISHA 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€ MENTHOL 3€ TWO 3€ LIKORICE 3€TOBACCO BAKKI MIX BLEND TOBACCO CIGAR TOBACCO TOBACCO MINTSPINA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€COOLADA FRUTTI BOMB FRUIT MINT BLAST MIX CURRANT MELONBANANA 4€ VANILLA 4€ NY 4€ JASMINE 4€ MANGO 4€ YSTORGAUWRTBERRY4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM 3€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€CREAM ORANGE CR. CHEESECAKE TEA MILKSHAKE DRINK TEA ATTENTION: A VERTICAL ORIENTATION OF THE PRODUCT LOGOAtteRnEtDUiCoEnS:SALES UP TO 25%.A vertical orientation of the product logo reduces sales up to 25%. 21

SS SHELVINGPROPmuPmuPPDRiiRccccaattOOttUkkmmuuDDeerrCeeeeUUaass::CCTppssRRTTyyiiiiccggooFFFtthhuuRRnnRttrrOOeett==hhNN))OeeppTTrrNssSSoohhIIddDDTeeuullEEffccS––tt ssnnIttDooaattnnEffddaaiiccnniiggnngguupptthhrriieeggsshhhhttooaappnnppddeettrriidd((mmyy,,aaWWyyrrnnooeenneeggdd==ttoopprroodd-- SWEET 4€ STICOWEBBEAAECCTCCOO 4€ CHERRI- 4€ SHISHA 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€ MENTHOL 3€ TWO 3€ LIKORICE 3€ TOBACCO 4€ BAKKI MIX 4€ TTORBADACITCIOONAL3€ BLEND TOBACCO CIGAR TOBACCO TOBACCO 3€ MENTHOL 3€ MINTS 3€ LIKORICE 3€ SWEET CHERRI- BRIGHT TWO TOBACCO SICWE EET 4€ BAKKI 4€ SHISHA AMERICAN 3€ TOBACCO 3€ CUBAN 3€ DARK 3€ TURKISH MINTS TOBBAACCCCOO MIX BLEND CIGAR TOBACCO TOBACCO PINA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€ COOLADA FRUTTI BOMB FRUIT MINT BLAST MIX 3€ CURRANT 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH MELON 3€ PINEAPPLE 3€ ORANGE 3€ PINA BLACK- COOLADA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY CURRANT 3€ WATER- FRUTTI BOMB FRUIT MINT BLAST MIX MELON BANANA 4€ VANILLA 4€ NY 4€ JASMINE 4€ MANGO 4€ SYOTRGAUWRTBERRY4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM 3€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€ CREAM ORANGE CR. CHEESECAKE TEA MILKSHAKE 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM DRINK 3€ COFFEE 3€ COLA TEA 3€ CRYSTAL 2,5€ BANANA CREAM 4€ VANILLA 4€ NY 4€ JASMINE 4€ MANGO 4€ SYTORGAUWRTBERRY4€ CARAMEL 3€ EXTREME 3€ BLACK ORANGE CR. CHEESECAKE TEA MILKSHAKE DRINK TEA SWEET 4€ TSICOWEBBEAAECCTCCOO 4€ CHERRI- 4€ SHISHA 4€ TTORBADACITCIOONAL3€ AAMMBBLLEEEERRNNIICCDDAANN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€ MENTHOL 3€ TWO 3€ LIKORICE 3€ TOBACCO 4€ TSICOWEBBEAAECCTCCOO 4€ BAKKI MIX 4€ TTORBADACITCIOONAL3€ 3€ TOBACCO CIGAR TOBACCO TOBACCO 3€ MENTHOL 3€ MINTS 3€ LIKORICE 3€ SWEET CHERRI- BRIGHT TWO TOBACCO BAKKI 4€ SHISHA TOBACCO 3€ CUBAN 3€ DARK 3€ TURKISH MINTS MIX CIGAR TOBACCO TOBACCO PINA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€ COOLADA FRUTTI BOMB FRUIT MINT BLAST MIX 3€ CURRANT 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ APPLE 3€ MELON 3€ PEACH MELON 3€ PINEAPPLE 3€ ORANGE 3€ PINA BLACK- COOLADA 4€ TUTTI 4€ TROPICAL 4€ ICE 4€ CHOCOLATE 4€ CRANBERRY 4€ BERRY CURRANT 3€ WATER- FRUTTI BOMB FRUIT MINT BLAST MIX MELON BANANA 4€ VANILLA 4€ NY 4€ JASMINE 4€ MMAILNKGSOHAKE 4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM 3€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€ CREAM ORANGE CR. CHEESECAKE TEA 4€ MMAILNKGSOHAKE 4€ CARAMEL 3€ CHOCOLATE 3€ COOKIES 3€ VANILLA 3€ CREAM DRINK 3€ COFFEE 3€ COLA TEA 3€ CRYSTAL 2,5€ BANANA CREAM 4€ VANILLA 4€ NY 4€ JASMINE 3€ EXTREME 3€ BLACK ORANGE CR. CHEESECAKE TEA DRINK TEA Attention: The front side of the product must always be turned to the shopper! A shopper cannot buy a product if he/she does not recognize it.22

PRODUCT FACING Attention: Each product must have its own facing. Mixing different products behind each other reduces sales by up to 16%.MULTIFACING INDEX INCREASING OF SALES SALES LOCATION ON THE SHELF 100 -- 123 +23% 140 +40% 154 +54% 161 +60% Attention: Extra facing = better visibility = avoids out of stock = extra sales. Multifacing can be accomplished by arranging different nicotine strengths of one flavor of liquid next to each other horizontally.The number of facings of a product on shelf should be equal to or larger than its share on theoverall turnover. This prevents the product from being sold-out and optimizes replenishment. 23

S S SHELVINGARRANGEMENT OF DIFFERENT BRANDS ON SHELF BRAND “A” BRAND “B”Products on shelf should be organized into blocks by brand. The blocks of brands should bethen organized vertically side by side. This increases visibility and makes the shelf moreorganized and esthetically appealing to the shopper. Attention: Always arrange brands into blocks vertically.24

HOT ZONEHot zone indicates the location on the shelves or on the counter with the most traffic andmost visibility. These areas are consequentially where the highest frequency of purchasestake place.The hot zone on a shelf is vertically at an eye level. 30° 25

MMMERCHANDISINGDISPLAY OF LIQUA PRODUCTSMerchandising is a practice which contributes to sales of products by optimizing the varietyof products, available for sale and the display of these products in such a way that stimulatesinterest and entices shoppers to make a purchase.Merchandising guidelines for LIQUA products recommendto follow these principles: All products in stock are always displayed in the shopping area (on primary shelves or on secondary displays). LIQUA products on shelves must not be displayed mixed together with products of other brands. LIQUA products are always marked with a price tag. In case of a promotion they should bear a strong indication of the promotional price. Products displayed must not be past its expiration date. All available POS materials that relate to the given product/promotion are correctly displayed in store. Outdated POS materials are removed from the point of sale.26

LIQUA liquids are identified by their Flavors which are organized by Flavor Groups. You can identify a flavor group through its distinct icon. Products are further organized into Ranges: Mix, Elements and Crystal.To best arrange LIQUA products on shelf you should respect the following principles:1. LIQUA Product ranges (MIX, Elements, Crystal) are always grouped together inblocks and arranged vertically in this order: 1st block LIQUA MIX range, 2nd block LIQUA Elements range, 3rd block LIQUA Crystal. LIQUA MIX LIQUA ELEMENTSSWEET 4€ TSICOWEBBEAAECCTCCOO 4€ CHERRI- 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ 30°BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€TOBACCO BAKKI BLEND TOBACCO CIGAR TOBACCO TOBACCOPINA 4€ TUTTI 4€ TROPICAL 4€ TWO 3€ MENTHOL 3€ LIKORICE 3€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€COOLADA FRUTTI BOMB MINTS MIX CURRANTICE 4€ SHISHA 4€ CHOCOLATE 4€ CRANBERRY 4€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€FRUIT MIX MINT BLAST MELONMANGO 4€ YSOTRGAUWRTBERRY4€ JASMINE 4€ CARAMEL 3€ COOKIES 3€ CHOCOLATE 3€ CREAM 3€ VANILLA 3€MILKSHAKE TEABANANA 4€ VANILLA 4€ NY 4€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€CREAM ORANGE CR. CHEESECAKE DRINK TEA LIQUA CRYSTALTop selling Flavor groups of both MIX and Elements range should be displayed at hotzone – shelves located vertically at an eye level of the shopper. 27

M MERCHANDISING2. LIQUA Flavor Groups such as Tobacco mixes, Fruity mixes or Classic Tobacco,Refreshingly Strong, etc. within blocks of LIQUA ranges are arranged horizontally in order.The order in which the flavor groups should be arranged on the shelf is illustrated belowand listed in the scheme on page 29. LIQUA MIX LIQUA ELEMENTS1. TOBACCO MIXES 1. CLASSIC TOBACCO TSICOWEBBEAAECCTCCOO 4€ CHERRI- 2. REFRESHINGLY STRONG 3. JUICY BERRY 30°TTORBADACITCIOONAL3€AMERICANBRIGHT CUBAN DARK TURKISHSWEET 4€ BAKKI 4€ BLEND 3€ TOBACCO 3€ CIGAR 3€ TOBACCO 3€ TOBACCO 3€2. FRUITY MIXESTOBACCO TUTTI 4. FRESH&FRUITYTWO BLACK- CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€ FRUTTI CURRANT MINTS3. STRONG MIXESPINA4€ 4€ TROPICAL 4€ 3€ MENTHOL 3€ LIKORICE 3€ BERRY 3€ 3€ BOMB MIXCOOLADAICE 4€ SHISHA 4€ CHOCOLATE 4€ CRANBERRY 4€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€ MIX MINT BLAST MELON4. SWEET MIXESFRUIT 5. SWEET&INDULGENT5. CREAMY MIXESMANGO JASMINE CARAMEL 3€ COOKIES 3€ CHOCOLATE 3€ CREAM 3€ VANILLA 3€ TEAMILKSHAKE 4€ YSOTRGAUWRTBERRY4€ 4€ 6. DELICIOUSLY DRINKABLEBANANA 4€ VANILLA 4€ NY 4€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€CREAM ORANGE CR. CHEESECAKE DRINK TEA LIQUA CRYSTAL3. Individual LIQUA Flavors should be arranged horizontally within its respective FlavorGroup in order. The order in which the flavors should be arranged on the shelf is listed inscheme on page 29.4. Nicotine strengths of each flavor should be grouped together and arranged horizon-tally on the shelf. Keeping one facing per nicotine strength simulates the Multifacingprinciple which creates extra visibility, helps prevent out of stock and overall contributesto increase of sales.28

I. LIQUA MIX range 2. FRUITY MIXES 3. STRONG MIXES 1. TOBACCO MIXES1. SWEET 2. ICE 3.CHERRIBAKKI 1.PINA 2. TUTTI 3.TROPICAL 1. ICE 2. SHISHA 3. CHOCOLATE 4. CRANBERRYTOBACCO TOBACCO COOLADA FRUTTI BOMB FRUIT MIX MINT BLAST4. SWEET MIXES 5. CREAMY MIXES1. BANANA 2.VANILLA 3. NY CHEESECAKE 1.JASMINE 2.MANGO 3. STRAWBERRY CREAM ORANGE TEA MILKSHAKE YOGURT CREAMII. LIQUA ELEMENTS range 2. REFRESHINGLY STRONG 1. CLASSIC TOBACCO1. TRADITIONAL 2. AMERICAN 3. BRIGHT 4. CUBAN 5.DARK 6.TURKISH 1. MENTHOL 2.TWO MINTS 3. LICORICETOBACCO BLEND TOBACCO CIGAR TOBACCO TOBACCO 4. FRESH & FRUITY3. JUICY BERRY1. BERRY 2. 3.CHERRY 4.STRAWBERRY 5.BLACKBERRY 1. APPLE 2.MELON 3.PEACH 4. 5.PINEAPPLE 6.ORANGE MIX CURRANT MELON5. SWEET & INDULGENT 6. DELICIOUSLY DRINKABLE1.CARAMEL 2.CHOCOLATE 3.COOKIES 4.VANILLA 5.CREAM 1. EXTREME 2.COFFEE 3.COLA 4.BLACK DRINK TEAIII. LIQUA CRYSTAL In case you do not carry a certain LIQUA product in CRYSTALCRYSTAL with the next one in line. Repeat if necessary.VAPE BASE 29

M MERCHANDISINGExamples of how to organize LIQUA products30

for different shelf configurations.Display of LIQUA products including TPD health warning* This product This product This product This product This product This product This product This product This product This productcontains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine,which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance This product This product This product This product This product This product This product This product This product This product contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance This product This product This productcontains nicotine, contains nicotine, contains nicotine, This product This product This product This product This product This product This product This productwhich is a highly which is a highly which is a highly contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, addictive addictive addictive which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly substance substance substance addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance This product This product This product This product This product This product This product This product This product This product This product contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance substance This productcontains nicotine, This product This product This product This product This product This product This product This product This product This productwhich is a highly contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, addictive which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly substance addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance This product This product This product This product This product This product This product This product This product This product This product contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance substance This product This product This productcontains nicotine, This product This product This product This product contains nicotine, contains nicotine, This product This productwhich is a highly contains nicotine, contains nicotine, contains nicotine, contains nicotine, which is a highly which is a highly contains nicotine, contains nicotine, addictive which is a highly which is a highly which is a highly which is a highly addictive addictive which is a highly which is a highly substance substance substance addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance This product This product This product This product This product This product This product This product This product contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance This product This product This productcontains nicotine, contains nicotine, contains nicotine, This product This product This product This product This product This product This productwhich is a highly which is a highly which is a highly contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, addictive addictive addictive which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly substance substance substance addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance This product This product This product This product This product This product This product This product This product This productcontains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine, contains nicotine,which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly which is a highly addictive addictive addictive addictive addictive addictive addictive addictive addictive addictive substance substance substance substance substance substance substance substance substance substance* Health warning message on packaging is adapted to language(s) and legislation requirements of eachEU member country. 31

M MERCHANDISINGBasic types of product placemenT:• Primary placement – on shelf• Secondary placementPRIMARY SHELF POSITIONPrimary shelf position is a location in store, usually a shelf rack, where products are traditio-nally placed. Primary placement of products on shelf is organized according to a respectivecategory to help shoppers navigate through various goods in the store.SWEET 4€ STICOWEBBEAAECCTCCOO 4€ CHERRI- 4€ TTORBADACITCIOONAL3€ AMERICAN 3€ BRIGHT 3€ CUBAN 3€ DARK 3€ TURKISH 3€TOBACCO BAKKI BLEND TOBACCO CIGAR TOBACCO TOBACCOPINA 4€ TUTTI 4€ TROPICAL 4€ TWO 3€ MENTHOL 3€ LIKORICE 3€ BERRY 3€ BLACK- 3€ CHERRY 3€ STRAWBERRY3€ BLACKBERRY3€COOLADA FRUTTI BOMB MINTS MIX CURRANTICE 4€ SHISHA 4€ CHOCOLATE 4€ CRANBERRY 4€ APPLE 3€ MELON 3€ PEACH 3€ WATER- 3€ PINEAPPLE 3€ ORANGE 3€FRUIT MIX MINT BLAST MELONMANGO 4€ YSOTRGAUWRTBERRY4€ JASMINE 4€ CARAMEL 3€ COOKIES 3€ CHOCOLATE 3€ CREAM 3€ VANILLA 3€MILKSHAKE TEABANANA 4€ VANILLA 4€ NY 4€ EXTREME 3€ COFFEE 3€ COLA 3€ BLACK 3€ CRYSTAL 2,5€CREAM ORANGE CR. CHEESECAKE DRINK TEA ! ATTENTION ! 80% of purchases are off the primary shelf position.32

SECONDARY PLACEMENT! We talk about “secondary placement” only if the product is displayed outside of itsprimary shelf in another location of the store.Examples of a secondary placements are: a promotional stand, displays at a cashier desk,near other products related to vaping. Secondary display of products may be temporary. Secondary placement helps gain further opportunity to increase sales, by on average up to 25% (impulsive purchase).! Secondary placement does not replace the main location = shelf!To promote impulsive sales, the secondary display should be placed in impulsive zones,places in store with high frequency of customers.Impulsive zone for e-liquid is: space in front of cash register, on the sales counter, an area at stores with the highest frequency of shopper traffic3€Liqua 10ml 33

M MERCHANDISINGPOS MATERIALSPoint of Sales (POS) materials are items that help communicate a brand or a product, anattractive price or a promotion inside a store. Correct use of POS materials captures theattention of shoppers and differentiates a brand from its competition.LIQUA brand is supported by a wide variety of POS materials such as counter displays, imageposters, wobblers, plastic bags, brochures, etc. For up-to-date list of available materials pleasecontact your sales manager.* Custom production of POS materials and the provision of their design: If desired, retailer can be provided with print data to produce POS materials on their own expense. *Before displaying any Point of Sales materials in your outlet, check your local legislation.34

Visual modification of LIQUA POS materialsTo enhance local use of LIQUA POS materials, the following modifications may be applied: Inserting a retailer’s logo into the visual appearance Translation to local language Changing size of the visual appearance Rearranging existing elements of the visual appearanceFor any modifications, an approval from Ritchy is mandatory!Example of a modified visual appearance: PARTNER LOGOON-LINE The use of online tools such as bannersE-SHOP communicating LIQUA on e-shop websites fall under the same guidelines as printed POSm. 35

M MERCHANDISING ! ATTENTION ! Correctly presented POS materials increase and improve visibility at point of sale. The extra visibility serves to attract shoppers attention and by that helps to stimulate sales. 3€Liqua 10ml *Before displaying any Point of Sales materials in your outlet, check and follow your local legislation.36

QUALITY AND CLEANLINESSA shopper will not buy a dirty, poorly packaged or damaged product. Nor shall he revisita disorganized and messy shop. The cleanliness and overall appearance of a point of salehas direct impact on image of a brand and its position in the minds of shoppers.At point of sale the cleanliness and quality of display of LIQUA products isa responsibility of the retailer. If a product is damaged it must be immediatelywithdrawn from display (off the shelf or a secondary placement) and should not be sold.A shopper will not buy a product that is past its expiration date. To ensure the product onshelf is not expired, follow this basic rule: FIFO = First In First Out FIFO in practice means that the product of the earliest expiration date must be offered to a consumer first (first in a series on the shelf). 37

Vaping ComplianceTPD and CLP Vaping ComplianceThe E-Cigarette industry is now entering a new, more professional era. New regulations placelarge demands on e-cigarette and e-liquid producers. Ritchy Group Ltd. takes these regulatoryrequirements very seriously and is dedicated to guide our partners successfully through changesin their markets as they take place.Markets of the European Union are nowadays highly impacted due to many laws and regulationscoming directly from EU institutions that concern all member countries or others, that areimplemented on national level. The key message of all regulations is that only safe productsshould be available on the market.The 2 major regulations for vaping products across the EU are:TPD Tobacco Products Directive*, which came into effect on May 20th, 2016 it applies specifically to all 28 member countries within the European Union. The regulations concern the following areas - Product restrictions, Packaging and labelling restrictions, Obligation to notify, Advertising, promotion and sponsorship or Sales channels. CLP Classification, Labelling and Packaging. This European legislation on the classification, labelling and packaging of substances and mixtures came into force in January 2009. It sets specific risk and safety phrases and warnings symbols that any consumer product containing potentially harmful chemicals must be labeled with and how they must be packaged. It also establishes classification and labelling inventory of substances by which e-liquid manufacturers have to comply.  To meet regulatory requirements Ritchy has transformed its products in the following ways:*DIRECTIVE 2014/40/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 3 April 2014 on theapproximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture,presentation and sale of tobacco and related products and repealing Directive 2001/37/EC38

20 mg/ml 2ml 18 Tanks / clearomisers / prefilled cartridges 12 cannot contain more than 2 ml of liquid 6 3 0E-liquid nicotine concentrationis limited to 20 mg/ml (2%)Nicotine-containing liquid cannot be placed Products (including devices and bottles)on the market in refill containers that exceed must be child-proof and tamper-proof10ml volume.12ml 1min/ 20dropsBottle possess securely attached Flow control mechanism emits no morenozzle at least 9 mm long than 20 drops of refill liquid per minute 39

TPD and CLP Vaping ComplianceBeyond perfecting the product itself we also focus on packaging. We check that all packages ofour products meet individual requirements of any local market so that our product presentationis compliant.The TPD establishes a series of requirements that affect certain aspects of the labelling andpackaging of e-cigarettes and e-liquids, including an obligation to include a health warning onunit packets and any outside packaging of e-cigarette products.All products must be sold with information on packages, leaflets and health warning. Refillablecontainers include appropriate instructions and diagrams for refilling. 30% Instructions for use and storage of the product. Appropriate health warning, shall appear on 2 largest surfaces of the unit packet and any outside packaging and cover >30% of the surface of the unit packet.40

OBAL_TPD obrazek 3.pdf 1 27.03.17 11:02 A list of all ingredients contained in the product in descending order of weight.A recommendationto keep the product Allergens warning.out of reach ofchildren. The nicotine delivery per doseWarnings for Possible adverse effectsspecific riskgroups and Instruction for usecontra-indications Contact details ofAddictiveness the manufacturer orand toxicity. importer and a legal or natural contact person within the EU.These are only some of the many examples how LIQUA products oblige to regulationwithin European Union. For more information visit the Vaping Compliance section atwww.ritchy.com. 41

GlossaryLIQUA TerminologyLIQUA ranges: LIQUA brand products are organized into ranges called LIQUA MIX, LIQUAELEMENTS, LIQUA CRYSTAL.LIQUA flavor groups: Flavors of LIQUA products are organized into flavor groups accordingto flavor profile. You can recognize flavor groups according to distinct shape of icons on thepackaging.LIQUA flavors: Each LIQUA product has its flavor as indicated on the front of the packaging.General TerminologyAction / Promotional price – a shelf price reduced by a discountE-shop – a shop running on the Internet and selling its products through the images appearingon it. A consumer cannot physically inspect goodsFacing – front side of the product a consumer sees on shelfsImage Poster – a poster communicating general information about products sold, usuallyincluding image of the product, and a relevant headingMargin – the method of determining the selling price commonly used in modern retail chainsMerchandising – set of principles that help organize variety of offered products and theirdisplay at point of salePlanogram – a diagram that indicates placement of products on shelves in order to maximizesalesPortfolio poster – poster, which depicts all products offered by the companyPOS materials – „Point of Sale materials.“ This acronym is used to describetools to promote sales and increase visibility of brands or products instores.Pricing – labeling products with correct selling price42

Product availability – the opportunity to buy goods in the shortest possible timeProduct innovation – improvement of an existing product or a new product on the marketRetail store – a classic type of store with a shopping service and physically displayed goodsSales folder – communication material containing information about company,products and product supportShelf price – selling price listed for every product on the shelfShelving – placing products on shelvesSurcharge – method of determining theselling price commonly usedin traditional stores 43

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