Mug Deposit System

The Future is Returnable.

25 July 2023

HONG KONG | UK | EUROPE | CHINA | NORTH AMERICA ADAN Promotional Concepts (UK) Ltd Division of Artpac Solutions Asia Group Ltd. est. 1991

Circular Returnable C u p 1. The Future is Returnable 2. Why choose the Circular Returnable Cup?

- Design Features - Cost Savings - Sustainability 3. SMART Cup Technology - Tracking Cups - Logistics - Benefits 4. Branding & Tracking 5. Range Overview 6. Delivering the Whole Solution ©2023 ADAN Promotional Concepts

We believe that the Future is Returnable.

Circular Design can save the world. For the last 20 years Circular have been pioneering a Circular

approach to design and product development. The Circular Returnable Cup has been uniquely and specifically designed for commercial deposit return schemes. After 2 years of development and 12 months of field testing in a variety of DRS pilots, the attention to detail makes the transition from single to returnable as pain free as possible. Everything has been considered and tested.

Single-use coffee cups are soon to be driven out of use, whether through legislation, climate and consumer pressures. This means very soon 95% of the population who are still using single use will need a workable cost effective, hassle free solution.

The following document explains why the Circular Returnable Cup is the right choice for your business.

©2023 ADAN Promotional Concepts

The Most Sustainable

Why choose the Circular Returnable Cup?

100% recyclable at end of life Durable and long lasting Made from food grade BPA & Melamine Free PP, FSA/EFSA markets Made from food grade 100% recycled rPP, in FDA markets

The Most Cost Effective Low cost price points Designed to last 500+ cycles Premium look and feel = less wastage cost & littering High quality branding options

The Most Advanced Can be RFID/NFC enabled or unique QR codes

Reliable Supply Chain Designed to be reliably produced at scale with a simple controllable design

Aesthetic Appeal Critical and often overlooked, to get high engagement, break down barriers and change behaviours, it is essential the cup looks and feels well made and adds to the overall drinking experience. ©2023 ADAN Promotional Concepts

Circular Returnable C u p The design is in the detail.

500+ commercial wash cycles Cost-effective affordable replacement for single-use 100% 'real world' recyclable a t end of life After just 2.6 uses, it has offset the C O 2 emission of a singleuse paper cup Lid designed for efficient cleaning Ergonomic drinking experience

Patent pending heat diffusing ribs No need for extra wasteful sleeve

Smart cup - RFID/NFC enabled, laser marking, Unique Q R codes.

Lightweight & c o m p a c t with non -stick stacking Designed for fast drying

8 OZ

12

16 OZ

OZ

©2023 ADAN Promotional Concepts

The most sustainable cup solution.

Lowest Carbon Emissions Easy ‘Real World’ Recycling Highly Durable Designed for Longevity Reusable Lid No need for wasteful belly wrap Premium look & feel

If a product is not circular then it’s not truly sustainable. For a returnable to be truly sustainable is has to be made from recycled content, designed for longevity and ‘real world’ recyclable.

What does our Ciruclar Returnable Cup achieve?

• Zero waste and pollution • Huge Reduction in Carbon Emissions • Zero demand on global resources

Single Use C u p Paper (PE lining)

61 grams 1 CO 2e *

Single Use C u p Compostable (PLA lining)

51 grams 1 CO 2 e

Returnable Circular C u p Polypropylene**

158 grams 2 CO 2 e

Returnable Circular C u p Recycled Polypropylene***

72 grams 2 CO 2 e

Sources 1. https://frugalpac.com/new-coffee-cupstudy-reveals/ Also included in House of Commons Environment, Food and Rural Affairs Committee - The price of plastic: ending the toll of plastic waste: Third Report of Session 2022–23 as written evidence to Parliament https://committees.parliament. uk/writtenevidence/38828/pdf/ 2. University of Exeter, Environment and Sustainability Institute, Prof Xiaoyu Yan ; Carbon Footprint of the Circular Returnable Cup: A Preliminary Life Cycle Assessment, January 2023 (available on request).

Ma de in China shipped to UK

Ma de in China shipped to USA ©2023 ADAN Promotional Concepts

Carbon Emission Savings Carbon Emissions Reduced to 1,966kg2 CO2e Total manufacturing, shipping and in-housewashing @ 0.009kg 3 CO2e per cup per wash

2500 Circular Returnable Cups

0 tonnes to landfill

Example: Cafe serving 500 Coffees a day 7 days/week, 50 weeks/year

175,000 Single-Use Cups every year

10,658kg 4 Annual Carbon Emissions Manufacturing & Shipping Footprint of single-use cups

3.5 tonnes to landfill

SOURCES: 1. https://circularandco.com/cup-calculator 2. Based on Virgin PP Returnable Cup @ 158 grams CO2e (University of Exeter, Environment and Sustainability Institute, Prof Xiaoyu Yan ; Carbon Footprint of the Circular Returnable Cup: A Preliminary Life Cycle Assessment, January 2023).

3. https://unitedbaristas.com/articles/think-pieces/why-keepcup-cant-save-the-world/`` 4. Based on single-use PE Cup @ 60.9 grams of CO2e https://frugalpac.com/new-coffee-cup-study-reveals/ also included in House of Commons Environment, Food and Rural Affairs Committee - The price of plastic: ending the toll of plastic waste: Third Report of Session 2022–23 as written evidence to Parliament https://committees.parliament.uk/writtenevidence/38828/pdf/ ASSUMPTIONS: Based on Circular Returnable Cup 100% virgin PP, China-made and shipped via sea to UK Weight of single use cup and lid @ 20 grams. 1 day turnaround on washing, 10% peak uplift and a 1% loss rate. Single-use cups assumed to be sent to landfill ©2023 ADAN Promotional Concepts

Cost Savings 2,500 Circular Returnable Cups 1 washed in-house on a one day turnaround

Year 1 Investment = £3,218 + Approx. annual wash cost of £350

Annual Saving: £22,863

Example: Cafe serving 500 Coffees a day 7 days/week, 50 weeks/year

175,000 Single-Use Cups every year

Cost per single-use cup & lid = £0.15 Excluding waste disposal costs

Annual Cost: £26,250

ASSUMPTIONS: Costs for e n d - of-life disposal of single-use cups not included Single-Use C u p & Lid cost = £0.15 Circular Returnable C u p & Lid C o st = £1.30 Washing cost estimated a t 50 cups per cycle a t £0.10 cost per cycle SOURCE: 1. https://circularandco.com/cup -calculator

©2023 ADAN Promotional Concepts

Circular by Design Pioneering 100% Recycled Content All FDA Asian a n d US markets are supplied in 100% food grade recycled PP (rPP).

FSA European a n d UK markets will receive rPP by Q3 2023 after regulatory approvals. Whilst waiting your cup is m a d e from 100% recyclable, food grade virgin PP.

Highly Durable, Designed for Longevity A fundamental a sp e c t of the Circular Design approach is the design product to last a s long a s possible. Our Returnable C u p is designed to last over 500 commercial wash cycles. It is tough a n d ready for whatever you c a n throw a t it.

100% ‘Real World’ Recyclable Everything c a n technically b e recycled but our products are designed to fit a n d confirm to the ‘real world’ restrictions of the recycling infrastructure that exists today a n d across the globe.

©2023 ADAN Promotional Concepts

SMART C u p Technology

By giving our reusables a unique digital identity, your organisation can make the ‘Internet of Things’ a reality for all, unlocking possibilities across retail and supply-chain management, driving value and growth. Low cost, contactless communication technologies connecting the cup to consumers with the tap of a mobile.

Tracking & Tagging options available: 1 . QR code – unique codes laser-etched for maximum durability 2. RFID tag – encapsulated within the base RFID technology enables the communication between an unpowered tag and a powered reader.

3 . NFC Chip – encapsulated within the base An NFC device can act not only as a reader, but also as a tag. It is also possible to transfer information between two NFC devices.

Each chip/tag can be pre-programmed to your needs.

You can also of course, operate DRS or returnable cups schemes with no tracking at all. *Tag specifications a n d technical d a t a sheets c a n b e provided on request.

©2023 ADAN Promotional Concepts

SMART C u p Benefits 1.Drive Consumer Engagement Easily m a n a g e customer deposits a n d returns a n d reward the right consumer behaviour.

2. Supply Chain Efficiencies Supports collection a n d cleaning infrastructure, enabling the use of SMART Bins a n d Return Points.

3. Traceability & Cost Savings Visibility of product lifecycle to analyse return & recycling rates a n d to prevent ‘leakage’ from the system.

©2023 ADAN Promotional Concepts

SMART C u p Logistics

Using Apps to engage, incentivise and measure impact The use of a n a p p c a n connect the user with the cup through serialization. The cup is activated through a unique QR, RFID code, which allows the cup to b e tracked, traced a n d impact measured.

SMART Return Points RFID enabled return points allow for secure a n d fast return (drop a n d go) a n d G P S location means points are easily found.

Refund, Reward or Donate This allows for a Deposit Return Scheme b a s e d on loyalty points, rewards or donations to a local charity – or a blend of these. Users c a n see how many items they have returned a n d how many items the community has returned – a n d the impact made.

Changing Behaviour Rich d a t a a n d insights are gathered so you will know who has recycled what / where / when a n d the a p p s can nudge g o o d return behaviours.

App development a n d image credit: Re-Universe

SMART Collection Bin credit: Unisan ©2023 ADAN Promotional Concepts

Branded & Bespoke Etching We recommend using highly durable, laser-etching to customise your cups. This process is carried out at the point of manufacture to minimise cost and the associated CO2 footprint.

YOUR ARTWORK HERE Bespoke pantone matching available for base and lid

Where can I etch?

You can etch around the side of the cup, in up to three locations. We can also etch unique QR codes on the base and lid.

What can I etch?

1.Logos or Icons (vector artwork required) 2.QR Codes (either the same or unique) 3.Key Messages / Text (vector artwork required)

Add up to 3 points of etching

©2023 ADAN Promotional Concepts

©2023 ADAN Promotional Concepts

Range Overview We have a range of cup sizes available, with two stock colours available for both the cup and lids.

We pack the cups and lids separately so you can mix lid and base colours. Lids are designed to fit 2 volume sizes.

C u p Description 8oz Returnable Cup Grey (200 Pack) 8oz Returnable Cup Chalk (200 Pack)

SKU C&C-8oz-RET-Gr-200P C&C-8oz-RET-C h-200P

Availability In Stock In Stock

12oz Returnable Cup Grey (200 Pack) 12oz Returnable Cup Chalk (200 Pack) 12oz Returnable Cup Frosted (200 Pack)

C&C-12oz-RET-Gr-200P C&C-12oz-RET-C h -200P C&C-12oz-RET-Fr-200P

In Stock In Stock From Sep '23

16oz Returnable Cup Grey (200 Pack) 16oz Returnable Cup Chalk (200 Pack) 16oz Returnable Cup Frosted (200 Pack)

C&C-16oz-RET-Gr-200P C&C-16oz-RET-C h -200P C&C-16oz-RET-Fr-200P

In Stock In Stock From Sep '23

20oz Returnable Cup Grey (200 Pack) 20oz Returnable Cup Chalk (200 Pack) 20oz Returnable Cup Frosted (200 Pack)

C&C-20oz-RET-Gr-200P C&C-20oz-RET-Ch -200P

Coming Soon Coming Soon Coming Soon

Stock Colour Options: Dark Grey, Chalk, Frosted

Product Standards Food Grade Certified to EU/FDA/LFGB, BS EN 12546 - 1:200

(EU) 10/2011 & (EC)1935/2004 & BfR XV (LFGB).

Multi-fit Lid Description 6oz-8oz Multi-fit Lid Chalk (200 Pack) 6oz-8oz Multi-fit Lid Grey (200 Pack)

SKU C&C-6oz-8oz-Lid-Ch-200P C&C-6oz-8oz-Lid-Gr-200P

Availability In Stock In Stock

12oz-16oz Multi-fit Lid Grey (200 Pack) 12oz-16oz Multi-fit Lid Chalk (200 Pack) 12oz-16oz Multi-fit Lid Frosted (200 Pack) 12oz-16oz Multi-fit Lid Dome Lid Clear (200 Pack)

C&C-12oz-16oz-Lid-Gr-200P C&C-12oz-16oz-Lid-Ch-200P C&C-12oz-16oz-Lid-Fr-200P C&C-12oz-16oz-Dome-Cl-200P

In Stock In Stock From Sep '23 Coming Soon

20oz Lid Grey (200 Pack) 20oz Lid Chalk (200 Pack) 20oz Lid Frosted (200 Pack)

C&C-20oz-Lid-Gr-200P C&C-20oz-Lid-Ch-200P C&C-20oz-Lid-Fr-200P

Coming Soon Coming Soon Coming Soon

U.S. FDA Code of Federal Regulations Title 21., Prop 65 REACH Compliant / BPA free, Dishwasher safe to BN EN 12875-4

Production Standards ISO 9001, Sedex ZAA403951018

What is my cup made from?

European and UK markets will recieve FSA Approved 100% rPP after regulatory approvals.

Whilst waiting your cup is made from 100% recylable, food grade, virgin PP. ©2023 ADAN Promotional Concepts

Delivering the whole solution We work with a range of logistics and software partners to deliver the entire end to end ‘returnable’ process.

From delivery of cups, fiscal deposit and reimbursement systems, RFID programming, cup collection, washing and final re-delivery.

We are also experienced in working with any pre-existing back-end or technology partners you may have.

©2023 ADAN Promotional Concepts

For futher information :

sales@adanpromo.com

www.ADANPROMO.com HONG KONG | UK | EUROPE | CHINA | NORTH AMERICA ADAN Promotional Concepts (UK) Ltd Division of Artpac Solutions Asia Group Ltd. est. 1991