National Coach Call Audio Transcription Topic: A Very special Shakeology Announcement Host: Sr. Vice President of Global Sales, Jeff Hill Featured Speakers: Beachbody CEO Carl Daikeler Date: December 17, 2012 Jeff: Guys, it is always a pleasure when we have the opportunity to hear from our CEO and co- founder and he is joining us this morning for what I think is some really exciting news. Without further ado, we ll turn the time over to you, Carl. Carl: Thanks so much Jeff. I love that, the National Wake- Up Call (referring to the new name of the National Coach call starting January 7 th one hour earlier). So that everybody understands the implication of the National Wake- up call, what we re doing here at Corporate is we go from the wake- up call directly into a senior management meeting where we plan how we are going to work together to achieve our goals, particularly how we re going to enhance and help support the growth of the network and build revenue per Coach per month. Right after that call, we go into our meeting here. I would suggest that Coaches can make it habit, certainly Coaches that are full time or driving for Elite, can go from the National Wake Up Call to a local group call or certainly your success partners, just to huddle up and talk about how you are going to attack the week. Let s talk about that exciting news. It s been a pretty wild year, certainly a great year of growth and we ll review some of that when everybody shows up for the Super Saturday come January. I wanted you to know that one of the big lessons of this year was how much you care about the products that we produce and we hear you that we can t be casual about changing things like Shakeology. Last July what we thought was a fairly big improvement in the product because of the enhanced health benefits, we did get quite a bit of feedback that new chocolate super food formula of Shakeology was not up to par for many of our Coaches and their customers and there was some disappointment. It s always the priority that Shakeology has the best health benefits that we can possibly get in a single serving shake, but some didn t like the taste of that as much as the original and some people really disliked the taste completely because the minerals were more present and it wasn t sweet enough unless you added a recipe to it, the way I do for instance. So we took action immediately. We got our R&D (Research & Development) department to figure out how to improve the Chocolate Super Food formula without sacrificing any of those healthy improvements. I was not willing to give back on any of that forward movement. They worked hard through July, August, and September and with over
70 ingredients, it was not easy. We went through tasting, after tasting, after tasting and there were some heated moments when people were saying, That s the best we can do. We would say, No, do better. By late September, early October, by the suggestion of many of our Coaches and our Coach Advisory Board, we created what we call the Shakeology Sensory Panel. We put the new formula, the one we felt really achieved the best of both worlds, and we put that to a blind taste test, against the current formula with over 2500 panelist. That includes both Coaches and customers of the Shakeology formula. In early October, we got feedback on the substantial tweak to the formulation and the panel overwhelmingly favored this newer, sort of more chocolaty formula in five key ways, aroma, taste (especially a substantial reduction in after taste, sweetness, chocolaty- ness (and yes, chocolaty- ness is a word), and texture. The best part is that we did it without losing added health benefits. We still have less sugar than the original, more fiber, and the four new super foods, Moringa, coconut flour nectar, luo han guo, and Himalayan salt are still in there. How did we do it? A couple things, we adjusted the protein blend to reduce grittiness and improve the texture. We developed a new proprietary, natural chocolate flavor blend that works more harmoniously with the new formula to reduce the after taste without driving up the sugars. It also increases the chocolate aroma so that your first impression is more of the hey, this is chocolate. It also rounds out the sweetness and it s better at bringing out that chocolaty- ness in the natural cacao in the formula. I am excited to share that we are going to be releasing this product and begin shipping the revised formula this week. Let me share some of the feedback that we got from the panelist. We were actually really blown away by how positive the feedback was. I ll even try to do it in the voice person who said the feedback. This one is a guy: This one is a huge improvement over the current super food formula. Bravo, I d buy and drink this shake daily. This one is from a lady: Had the same great taste we loved before but didn t have the funky aftertaste. This is from a teenager (I m just making this up Jeff): This was even better than the original chocolate Shakeology, best yet. I don t know where these people were from, but they were very enthusiastic. Ever since the results of the panel, we have been hard at work to get this teed up to deliver this to you as soon as possible and do it right.
Here is the good news. Can I get a drum roll? Do we have that sound effect? Alright, I ll just [Drum roll sound] We will begin shipping the revised formula this week. I already said that. Hey Jeff, can you give them some details about the launch and just what a big opportunity this is as Coaches try to finish this year strong. How were my voices? Jeff: I was just going to say, you had me all the way. You are a great impersonator; you are phenomenal at that. And chocolaty- ness, I m not sure how to spell that, but I like it. As Carl said, just some details that are key to know. We are going to start shipping the new formula this week, and here is what you need to know about that. If you or your customers are already on Home Direct, are on auto ship, the good news is that you don t need to do anything. The next order will automatically be switched over for you to the new Customer- approved, better tasting chocolate. Don t worry about calling Coach Relations or customer service, you don t need to inundate them with your calls, the change will be absolutely seamless. By the way, you ll know when you get the new formula because you ll see the nifty green customer approved sticker on the bag. That will be temporary, just for a little while and it will eventually go away. You will also notice that we permanently removed the red and white new super food formula flag in the front of the packaging. That is how you know that you got the new packaging and the new product. If you are interested in buying the new formula for the very first time, or if you have new customers who want to buy it, please wait until this Friday, December 21 st to place your order so that you are absolutely guaranteed to get the new formula. There is always a little bit of switchover time on these things, but if you wait until the 21 st to order, you will be guaranteed to get the new product. Again, to be really clear, home direct customers don t need to do anything; new customers need to wait until this Friday to order to get the new product. Coaches this is a perfect opportunity. We also just talked about Success Club a moment ago. You can earn Success Club points for this month. We know that some people stopped their Shakeology because they were not tickled with the flavor. This is an opportunity to go back and re- introduce these folks to this new flavor of Shakeology. Get them back on Shakeology Home Direct, and if you do that you earn Success Club points and that just gets you a step closer to your Shakeology Snuggle Wrap, which is kind of fun. We are really trying to make it easy for you. We also introduced a whole new suite of tools, training, and e- cards that will be in the Coach Online Office. Just check Breaking Coach News later today for details and for all the FAQ s on the new tools and the training that will be coming your way. Again, we are trying to
make it easy for you. We are really excited about it. With that, Carl, I just want to turn the time back over to you to share some closing thoughts. Carl: Alright, great. I always appreciate everybody getting in on this call. I know it s not always the most convenient thing, certainly for people on the east coast, because it gets into lunch time or certainly work time. I am hoping that the change to the 11:00 hour, and certainly the 8:00 am hour might help some people on the west coast listen to the call on their drive in to work as a great way to start off productively and its certainly going to put everybody in sync with the way headquarters is attacking the day. As you said there Jeff, this is the big holiday season, this week and the week after is what they call the holidays right now. This is when everything can go right out the window, even for the people that are great with all their behavior and made it through Thanksgiving and they were doing awesome and then the holiday parties happen now and this is when they start to let things slip. That means we need to work harder to help people stay true to their goals, but we also have an opportunity with people who really like their pattern of putting on some pounds over the holidays. We are not judging anybody. Some people, they just let it go over these two weeks. So now is the time to get them to commit to the program that they will start in January to get their body back right away. Either way, this is a Coaches job. This is our job as people who are going to hold people accountable to living a healthier lifestyle. For people who do want to have a healthier lifestyle, they should be committed now to something to start in January. As it s the holidays, I also want to say something directly to you, Coaches. I posted this on my Facebook page last week. I want you to know how much I care about your success, both your health and fitness success and your business success. It s the focus that I bring to the company every single day and it s the focus of every decision we make at Beachbody. You have to meet that priority half way. You cannot give up on yourself. It s really easy, it s easy to feel like you re not giving up on yourself cause you re still a Coach, you are still doing your workouts, kind of. But if you pay attention, you can see the signs that you are letting your hopes slip, Maybe I m not going to be as productive as I though with this Coach Business. You are sneaking in an extra bite here or there. You are rationalizing another drink. Maybe you are only going to have one glass of wine one night a week, but now you are having it two or three nights a week. You are sleeping in a half hour more and you say, I ll start working out in the next month or whatever. You might be telling yourself that you can invite people to a Beachbody Challenge Group, but you can do it tomorrow. That s how we let it slip. Every little crumb of that quote, it won t make a difference if I just do this, or if I just put this off, that adds up to
one big cake of quit. Those little crumbs matter. Those are the choices that define your lifestyle. Don t do it. Not during the holidays, not because it s hard, not for any reason. Right now, today can be the day that you as a Coach suck it up to be the inspiration for the people around you. We talk about the right behaviors. Be the proof that the products work. It s up to you to get your game face back on right now. Finish the year strong. I am talking about living the lifestyle that you said you wanted to live. That you, yourself, will stand up for yourself. You sweep out the laziness and you get back in the game. This is the game you said you wanted to win. You got on this call because you said you wanted to be successful as a Coach and you wanted to be in the best shape you could achieve on your terms. You said that. We didn t tell you to say it, you signed up for it. I am reminding you its those little choices that you make are what define the likelihood of whether you succeed or not. You are the choices that you make, so it s time now to go. You want to vanquish the feeling of being on that slippery slope, then, right now, today, after this call, you do something about it. You change what you eat at your very next meal. Whether it s breakfast time or lunch time, whether you are listening to the downloaded call and planning your dinner, plan it proactively to be a little healthier than you were intending, that your portion is a little bit smarter, you stop what you are doing and put in the Beachbody DVD right now. If it s that your business it s not going where you want it to go, then look in your back office, see what you can promote today and spread the word to your Facebook and Twitter contacts and anyone you know who wouldn t mind losing that weight and kicking off the new year with a new program. You are the one that has to take that action. I hear you when you say that you ve been slipping lately. I totally get it, but don t take a week to take action. Show that the new you can snap out of it right now. Show yourself what you want. What you want your normal lifestyle to be by doing it. Not by planning on doing it, but by doing it. You want to be a healthy person, you be that healthy person today. You want to be a wealthy person, then you do the work it takes to today. You want to be a fit person, you work out today. You want to be a person that helps people, you help some people today. We are going to have an amazing 2013. I get the shivers. The hairs right now are standing up on my arm because I know what s coming in 2013. We got some news coming up, I am not quite sure when we are going to announce it, but we got some news coming up in terms of how we are going to help even more people that is going to be so exciting to you to get involved in. You are just going to have that feel good. It s the same kind of feeling you had when you left Summit. That s what we are about. It s that feeling. Those are where the memories come from. All I am asking is that you do not give up on yourself, and if you want to succeed as a Coach, you don t wait until the New Year to start working. You start working right now because you need to build those behaviors, you need to build those habits and build those work muscles. That s
how you get stronger, that s how you get better. So let s get after it, let s make a great week, let s make a great day. I love what you do and I really appreciate that you got on this phone call. Thanks so much everybody, have a great end of the year. Have a great Christmas or whatever holiday you celebrate. I wish you the best and the best for your family. Thanks so much.