Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Investor Presentation (September 2023)
34 slides from Arcadia Biosciences's investor presentation, September 2023
Slide 1: Investor Presentation September 2023
Arcadia Biosciences Nasdaq: RKDA INVESTOR PRESENTATION September 2023 ©ARCADIA BIOSCIENCES – CONFIDENTIAL – 09/12/2023
Slide 2: Forward Looking Statements
Forward Looking Statements • “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward‐looking statements about the company and its products, including statements relating to components of the company’s long‐term financial success; the com
Slide 3: Arcadia cultivates next-generation better-for-you wellness products
Arcadia cultivates next‐generation better‐for‐you wellness products that make every body feel good Arcadia has a long history in crop innovation, enhancing the quality, nutritional value and production efficiency of plant‐based ingredients. We’re leveraging these agricultural roots to produce innova
Slide 4: Arcadia was founded in 2002 to enhance crop quality and nutrition
Arcadia was founded in 2002 to enhance the quality, nutritional value and production efficiency of crops and plant‐based ingredients Building on over 20 years of industry expertise, leveraging our natural science platform Owned or exclusively controlled more than 200 patents worldwide MANAGE REDUCE
Slide 5: Arcadia's wheat patents deliver breakthrough nutrition and shelf-life
Arcadia’s wheat patents used advanced breeding technologies (non‐GMO) to deliver breakthrough nutrition quality and improved shelf‐life benefits Wheat intellectual property can impact nearly 1/3 of total US wheat production, and patents span North and South America, Europe, Asia, and Australia RESIS
Slide 6: Focused patent portfolio addressing trait technologies in major crops
We’ve built a focused patent portfolio addressing a variety of trait technologies in major crops in multiple geographies WHEAT Other Wheat w/ Wheat Reduced Reduced Gluten Increased Lipoxygenase Soybean Hemp Wheat Resistant Starch Activity Plants w/ Herbicide Reduced Lipase 1 Waxy Wheat Tomato Tolera
Slide 7: In 2021, we formed Arcadia Wellness to commercialize our IP
In 2021, we formed Arcadia Wellness, a subsidiary focused on commercializing our IP in consumer products Arcadia Arcadia Biosciences • Manages • Utilizes Wellness intellectual property intellectual property • Commercial . • “Better‐for‐you” partnerships consumer products • License / royalty • Expect
Slide 8: We're now a producer of next-generation plant-based food and beverage products
We’re now a producer of next‐generation plant‐based food and beverage products • A nutritionally superior • Coconut water made wheat grain that’s naturally from coconuts sourced higher in fiber and other in Thailand nutrients • Naturally low in calories • Farm grown in the USA and with just the righ
Slide 9: Long-term growth and profitability with Project Greenfield
Forging a path for long‐term growth and profitability with Project Greenfield FOUR KEY STRATEGIES 1 Build agile organization/ winning culture 2 Expand GoodWheat retail footholds 3 Drive growth in Zola coconut water 4 Leverage partnerships for licensing revenue ©ARCADIA BIOSCIENCES – CONFIDENTIAL – 0
Slide 10: Built an agile organization and winning, results-oriented culture
STRATEGY 1: 1 Built an agile organization and winning, results‐oriented culture Reorganized and right‐sized company in 2021 to align with CPG growth strategy Hired new CEO in 2022 with 30+ years experience in CPG industry Built a deep bench of CPG talent in the leadership team and key position
Slide 11: Establishing GoodWheat footholds in retail categories
STRATEGY 2: 2 Establishing GoodWheat footholds in retail categories TM representing $10B in annual consumer spending • Launched GoodWheat-branded products into pasta category June 2022, pancake category August 2023 • Multiple categories where GoodWheat value proposition is poised to break through an
Slide 12: Fiber is a critical nutrient, yet a top deficiency among consumers
Fiber is a critical nutrient, yet it is a top deficiency among consumers 60% OF PEOPLE YET MOST OF US WE CONSUME JUST 50% are actively trying to on average, of the consume more fiber ARE STILL DEFICIENT recommended fiber intake MEET THE RECOMMENDED DAILY FIBER INTAKE DAILY INTAKE OF FIBER 40 35 30 2
Slide 13: The impact of not eating enough fiber is devastating
The impact of not eating enough fiber is devastating to the human body; this is a nutritional crisis. IMPACT OF LOW FIBER DIET IMPACT OF HIGH FIBER DIET (average 15g per day) (25-35g per day) 9 •Increased Increased cardiovasculardiseases gastrointestinal diseases1,2 9 Healthy microbiome - contains p
Slide 14: GoodWheat delivers superior nutritional benefits with great taste
GoodWheatTM delivers superior nutritional benefits with the same great taste as regular pasta The wheat you love, simply better. ™ Our pasta is made with just one simple ingredient – • Launched June 2022 our GoodWheat Durum Semolina – a nutritionally • Available in retail and online through Amazon •
Slide 15: Current pasta offerings don't meet consumer needs in taste and nutrition
Current pasta offerings don’t meet consumer needs in taste and nutrition Naturally Nutritious $3.1B Category +18% vs YAG $250M $150M +10% vs YAG +3% vs YAG Compromised Amazing Taste taste Traditional wheat pasta is the largest segment with the highest growth $2.7B Veggie/wheat alternative pastas
Slide 16: GoodWheat delivers superior nutritional benefits versus competing pastas
GoodWheatTM delivers superior nutritional benefits with the same great taste as regular pasta GoodWheat has the highest fiber and is the most nutrient dense with no sacrifice on taste GoodWheat De Cecco Montebello Barilla Barilla Jovial Banza (whole grain) (brown rice) (chickpea) Calories 180 200 20
Slide 17: New: GoodWheat pancakes make everybody happy
New: GoodWheat pancakes make everybody happy™ Launched August 2023 TWO Lines: Flavor V Fl Varieties i ti : Multi-Serve, stand-up pouch ¾ Buttermilk (16oz) ¾ Chocolate Chocolate Chip (14oz) ¾ Apple Cinnamon (14oz) Quikcakes™ Single-Serve ¾ Buttermilk Instant Pancakes ¾ Chocolate Chocolate Chip Single
Slide 18: Current pancake set does not solve Moms' needs
Current pancake set does not solve Moms’ needs Naturally $850M Category Nutritious +10% vs YAG $200M +15% vs YAG Compromised Amazing Taste taste Traditional pancakes is the largest $650M segment with moderate growth +9% vs. YAG Nutrition/Protein forward segment is seeing the highest growth Lacki
Slide 19: GoodWheat is nutrient dense with lower calories
MULTI-SERVE BUTTERMILK PANCAKE SET: GoodWheat is nutrient dense with lower calories GoodWheat Pearl Milling Krusteaz Kodiak Birch Benders Bob’s Red Mill (Just add H2O) (Just add H2O) (Just add H2O) (Just add H2O) (Just add H2O) (+ 4 ingredients) Ounces 16 oz. 32 oz. 32 oz. 20 oz. 16 oz. 24oz Base pr
Slide 20: GoodWheat wins on price, nutritionals and ingredients
SINGLE SERVE BUTTERMILK PANCAKE SET: GoodWheat wins on price, nutritionals and ingredients GoodWheat Pearl Milling Kodiak Birch Benders Quikcakes TM Pancake On The Go Power Cup Keto Pancake a la Cup Ounces (serving) 57g 60g 61g 38g Price per serving $1.20 $1.30 $2.10 $2.54 Calories* 180 220 250 210
Slide 21: Another $8B market in additional categories we plan to enter by 2025
And there’s another $8B market in additional categories that we plan to enter by 2025 POTENTIAL PRODUCT CATEGORIES • Consumer staple Baking Mixes & Flour Snacks Noodles & Adjacent Cookies, Muffins Crackers, Cereal Bars Categories categories D Lower calories D Lower calories D Lower calories • Center
Slide 22: Beverage Expansion – Driving Share Growth in Zola Coconut Water
STRATEGY 3: 3 Beverage Expansion – Driving Share Growth in Zola® Coconut Water • Superior product performance in large, established category • Compelling upside to improving our retail footprint • Potential to grow significantly faster than the category o Expanded distribution o Trial-driving market
Slide 23: Zola coconut water provides naturally light hydration
Zola coconut water provides naturally light hydration that replenishes with a taste consumers love Zola coconut water is a smart, satisfying way to reset and boost your mental and physical energy • Crisp, clean taste • Bottled at the source in Thailand • Naturally lower in calories and sugar with ju
Slide 24: Zola outperforms the competition on taste and sweetness
Zola outperforms the competition on taste and sweetness Taste Preference September 2018 “Our favorite brand of coconut water is Zola Original Coconut 50% Water. Stopping short of cracking open our own coconuts, we sampled 19 tetra-paks, cans, and bottles of nature's sports drink, ultimately deeming
Slide 25: We expect Zola to grow faster than the category
We expect Zola to grow faster than the category Coconut Water Category Sales $454M +11% Y/Y Units 40% ACV 142M -4% Y/Y • Current Zola footprint is small (4% ACV) Price • Focused on expanded $3.20 +16% Y/Y distribution 4% ACV Sources: Nielsen FMCG 52 weeks Ending May 27, 2023 (Coconut Water Category)
Slide 26: Upcoming Zola innovation delivers consumer-preferred flavors and packaging
Upcoming Zola innovation delivers consumer-preferred flavors and packaging 500ml Flavors: Original, Pineapple and Lime • Adding new flavors Q4 2023: • Pineapple: #1 selling Coconut Water flavor • Lime: #1 Sparkling Water flavor • No sugar added, 100% Juice, Non-GMO • 500ml, resealable single-serve T
Slide 27: New packaging resonates with consumers on key purchase drivers
New packaging resonates with consumers on most important purchase-drivers Zola (new) Zola (old) Vita Coco Zico Harmless Harvest No Added Sugar 83% 69% 61% 68% 59% Naturally 94% 94% 84% 86% 74% hydrating Better for you 90% 83% 75% 81% 70% Refreshing 93% 94% 87% 87% 77% Crisp Clean Taste 89% 90% 82% 8
Slide 28: Distribution footholds in over 4,000 stores
GoodWheat and Zola have established strong distribution footholds in over 4,000 stores ©ARCADIA BIOSCIENCES – CONFIDENTIAL – 09/12/2023 28
Slide 29: Innovation pipeline will continue to drive scale
Innovation pipeline will continue to drive scale 2023 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 BUILD THE CORE STRENGTHEN THE CORE CATEGORY EXPANSION Pasta Pasta Pasta Channel, shape, format Channel, shape, format Channel, shape, format Pancake Baking Mixes Baking Mixes launch Channel, flav
Slide 30: Leveraging partnerships to expand future licensing revenue
STRATEGY 4: 4 Leveraging partnerships to expand future licensing revenue • Arcadia’s Wheat patents deliver enhanced SEED PARTNERS nutrition in major commodity crops . • Durum Pasta (28M bushels per year) • Hard Red Spring (420M bushels per year) GRAIN & MILLING NG PARTNER PARTNERS . • Able to moneti
Slide 31: Bioceres partnership is an example of our licensing strategy
Bioceres partnership is an example of our licensing strategy – a royalty revenue stream that provides capital for future growth • Arcadia has a royalty agreement with Bioceres Crop Solutions Corporation for its HB4 Soy trait. • HB4 is the first drought resistant soy available to farmers and was appr
Slide 32: Arcadia's strategy presents a compelling long term business profile
Arcadia’s strategy presents a compelling long term business profile GoodWheat Zola Partnerships Arcadia Total Sales: $10 Billion $0.5 Billion $3.6 Billion ~$100 Million EBITDA: $100 Million $10 Million $179 Million $15 Million Sales: Sales: Sales: RKDA: $80 $8 $9 $225-$300 Million Million Million Mi
Slide 33: Strong cash position and undervalued share price position Arcadia for growth
With a strong cash position and undervalued share price, Arcadia is well-positioned for long-term growth and profitability Arcadia is a technology-enabled food and beverage company focused on high- growth, on-trend better-for-you products. Strong management team of CPG executives has significant exp
Slide 34: Contact Us
ARCADIA BIOSCIENCES Stan Jacot – President & Chief Executive Officer TJ Schaefer – Chief Financial Officer CONTACT US Investor Relations [email protected] ©ARCADIA BIOSCIENCES – CONFIDENTIAL – 09/12/2023
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