Barfresh Food Group Inc. · NASDAQ:BRFH
Barfresh Food — Investor Presentation (August 2018)
35 slides from Barfresh Food's investor presentation, Aug 15, 2018
Slide 1: Investor Presentation
Investor Presentation Premeasured I Prepackaged I Perfection August 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This Descriptive Presentation (the “Presentation") is being furnished solely for use by prospective parties in connection with their consideration of a potential transaction with Barfresh Food Group, Inc. (the “Company”). Prospective parties are not entitled to rely on the
Slide 3: Agenda
AGENDA I. Introduction II. Industry III. Sales and Distribution Strategy IV. Sales Channels V. Operations Overview VI. Unibel Strategic Relationship VII. Key Takeaways 3 © 2018 BarFresh Food Group Inc. All rights reserved.
Slide 4: Introduction
INTRODUCTION
Slide 5: 2nd Quarter 2018 Results and Expected Back Half of 2018 Revenue Ramp
2nd Quarter 2018 Results and Expected Back Half of 2018 Revenue Ramp Second quarter revenue increased 73% to $1.1 million Gross margins improved to 52.2% Expanding Military channel to 45 locations during third and fourth quarters from current 6 locations School channel expanding to over 200 location
Slide 6: Barfresh Product Portfolio
Barfresh caribbean smoothie Product sweet mango & tangy pineapple, sorbet; vanilla shake all natural pear juice Portfolio low fat vanilla bean ice cream, milk triple berry smoothie berry sorbet, strawberry puree, blueberries, pineapple crush, and pear, raspberry, blueberry juice mango burst smoothie
Slide 7: Barfresh's Differentiated Single Serve Product & Process
Barfresh’s Differentiated Single Serve Product & Process Operational Simplicity Ingredients • Perfect consistency • No waste, no spoilage • No artificial colors or flavors • Real fruit every time • Reduces labor • Premium taste • Gluten free • Makes a smoothie in • No complicated installation • Clea
Slide 8: Barfresh's Single Serve Solution
Barfresh’s Single Serve Solution The Barfresh Process From Frozen Pack 1 2 3 Tear open frozen pack and pour ingredients into blender bowl + Add 5 oz. of water to blender bowl + = 11 oz. single Whirl Class 16 oz. serve pack blended beverage No Freezer on the line? No problem: 1 2 3 Thaw frozen pack o
Slide 9: Barfresh's Single Serve Solution: Channels
Barfresh’s Single Serve Solution Channels National Quick Service Restaurants (“QSRs”) Business & Industry 9 © 2018 BarFresh Food Group Inc. All rights reserved.
Slide 10: Barfresh's "Easy Pour" Bulk Format Solution
Barfresh’s “Easy Pour” Bulk Format Solution Response to customers requiring rapid speed of service The Barfresh Process BarFresh Bulk Solution 1 2 3 + + = Any size finished smoothie 1 gallon of 1 gallon of concentrate water Flexible Solution Can Fit with Customer’s Existing Equipment 10 © 2018 BarFr
Slide 11: Barfresh's "Easy Pour" Bulk Format Solution: Channels
Barfresh’s “Easy Pour” Bulk Format Solution Channels Recreation, Amusement & Education Military Tourism High-Volume QSRs 11 © 2018 BarFresh Food Group Inc. All rights reserved.
Slide 12: Barfresh at a Glance
Barfresh at a Glance International patents New “Easy Pour” Custom flavor Proprietary portion controlled frozen granted bulk format development capabilities beverage offering Seven flavors available Exclusive Exclusive sales partnership Unibel strategic investment as part of standard line partnership
Slide 13: II. Industry Overview
II. INDUSTRY OVERVIEW
Slide 14: Frozen Beverages: Fastest Growing Beverage Category
Frozen Beverages: Fastest Growing Beverage Category Iced Tea Beverage Sales Coffee 12% 14% by Category Lemonade Frozen Beverages 3% Frozen Frozen Fastest 4th largest Beverages Beverages 9% growing category non-alcoholic beverage category Carbonated 9% Other 10% in food service Soft Drinks (CSD) 37%
Slide 15: Smoothies are an All Day Opportunity
Smoothies are an All Day Opportunity Smoothie Sales Smoothies: Throughout the Day A Snack or a Meal? 41% 30% 14% 15% 15% 14% 59% 30% Snack Before During41% Lunch After After 11 AM Rush (11 AM–1 PM) Lunch (1–5 5 PM 25% PM) Part 12 12 12 12 of a Meal 16% Meal 15 © 2018 BarFresh Food Group Inc. All rig
Slide 16: III. Sales and Distribution Strategy
III. SALES AND DISTRIBUTION STRATEGY
Slide 17: Sales Process Summary
Sales Process Summary Barfresh & other distributors • Product development • Facilitate new business • Training • Warehouse and deliver product • Strategic partnership with Sysco and PepsiCo • Provide frozen supply chain to end customers • Leverage exclusive broker network Barfresh Internal Sales Tea
Slide 18: Exclusive Distribution Partnership
Exclusive Distribution Partnership • Exclusive multi-year partnership with the world's largest food & beverage distributor – Renewed & extended for two years in October '17 • Full product distribution in all 72 Sysco operating companies across the United States • Recent expansion to major Canadian h
Slide 19: Exclusive Sales Partnership
Exclusive Sales Partnership • Exclusive multi-year sales partnership with PepsiCo signed October 2015 • PepsiCo’s 1000+ Foodservice sales team trained and actively selling Barfresh product • In process and access to PepsiCo’s national, local, regional and new business customers in all lines of busin
Slide 20: IV. Sales Channels
IV. SALES CHANNELS
Slide 21: National Account Sales Overview
National Account Sales Overview National Account Rollout Process Product Exclusive Product Market 1 Demonstration 2 3 Flavor 4 5 Roll-Out Testing Testing Development Currently in various stages of product development and testing with several National Accounts 21 © 2018 BarFresh Food Group Inc. All r
Slide 22: Abundant National Account Opportunities
Abundant National Account Opportunities 1st National Account Customer Rollout • Major milestone – April 2018 rollout with a National Customer • Adding Barfresh’s Dairy and non-Dairy Smoothie options to menus in over 1,000 locations • Further location expansion expected throughout 2018 • Customer is
Slide 23: Innovation For Elementary and Secondary Schools
Innovation For Elementary REAL FRUIT and Secondary Schools No Preservatives Massive market potential1 No Artificial Flavors or Colors School students in the United States No Sugar Added 14K 98K+ districts schools Non-GMO Current contract with Gluten-Free Over 200 school serving locations as of July
Slide 24: Approval for All Branches of U.S. Armed Forces
Approval for All Branches of U.S. Armed Forces Military • 11 bases activated (as of August 2018) 45 bases with signed contracts and rolling out in Fall 2018 • Received approval from the United States Defense Logistics Agency (DLA) to sell smoothie products into all branches of the U.S. Armed Forces
Slide 25: V. Operations
V. OPERATIONS
Slide 26: Scalable Manufacturing Capabilities & Relationships
Scalable Manufacturing Capabilities & Relationships Flexible Operating Model Provides Opportunity to Scale Quickly Utilize two contract Barfresh-owned packaging Procurement-related manufacturers that provide equipment positioned on synergies Barfresh efficient national manufacturing line to work cov
Slide 27: Supply Chain In Place To Meet Increased Demand
Supply Chain In Place To Meet Increased Demand Alignment with multiple forward warehousing partners enhances Barfresh’s ability to service customers across North America • Inventory strategically located at forward warehouses in Chicago (IL), Raynham (MA), Jacksonville (FL), San Leandro (CA), and Ar
Slide 28: VI. Unibel
Vi. UNIBEL
Slide 29: Strategic Investor & Global Partner
Strategic Investor & Global Partner Strategy: Leverage Bel’s 150 years of industrial expertise, innovative capabilities, world-class marketing and branding prowess to accelerate Barfresh’s growth in new and existing markets and product channels Parent company World leader in branded Global operation
Slide 30: VII. Key Takeaways
Vii. KEY TAKEAWAYS
Slide 31: Experienced Management Team
Experienced Management Team Executive Position Yrs. Select Prior Experience Founder & Riccardo Delle Coste Chief Executive Officer 15 Joseph Tesoriero Chief Financial Officer 30 Joseph Cugine President 30 Tim Trant Chief Customer Officer 25 Director – Product Craig Bennett Manufacturing 30 & Develop
Slide 32: Sound Capital Structure Positioned for Growth
Sound Capital Structure Positioned for Growth Growth Capital in Place & Aligned with Strategic Investor Balance Sheet at 6/30/18 Financing in place Entered into an agreement in February 2018 for Cash Inventory Debt $4.2M of available capital via convertible note (10% coupon) for growth capital avail
Slide 33: Positioned for Strong Revenue Growth
Positioned for Strong Revenue Growth 3Q18 significant revenue acceleration expected Recently signed Over 200 School serving Approval to sell smoothies Achieving gross 1st National Account locations into U.S. Armed Forces margins over 50% (as of August 2018) starting 2Q18 expected in 2018 1,000 Locat
Slide 34: Key Takeaways
Key Takeaways Proprietary frozen beverage product that’s on-trend & solves traditional food-service issues: 1 waste, labor, consistency 2 Scalable infrastructure in place to generate margin expansion as sales accelerate Sales channel and distribution include Exclusive Sysco and PepsiCo contracts and
Slide 35: Snapshot of Barfresh Food Group
Snapshot of Barfresh Food Group Company Summary Stock Symbol (OTCQB) BRFH Stock Price1 $0.55 52-Week Range $0.35 to $0.73 Shares Outstanding2 118.8 million Market Capitalization $65 million 3-mth Average Daily Volume 40,100 Year founded 2012 Headquarters Beverly Hills, California 1As of 6/14/18 2As
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