Lifeway Foods, Inc. · NASDAQ:LWAY
Lifeway Foods — Investor Presentation (September 2015)
39 slides from Lifeway Foods's investor presentation, September 2015
Slide 1: Lifeway Foods, Inc.
Lifeway Foods, Inc. September 2015
Slide 2: Forward Looking Statements
Forward Looking Statements The following statements made in this presentation are “forward looking” and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995: statements relating to (1) projected sales (including for individual segments, for specific
Slide 3: Agenda
Agenda • Lifeway’s Mission • Recent Highlights • 2015 & 2016 Outlook • Lifeway’s Product Portfolio • Kefir, Health & Wellness Category Growth • Lifeway’s Growth Strategy 3
Slide 4: The Lifeway Mission
The Lifeway Mission We’re here to provide the best in probiotic and nutritious foods while keeping the world in a better place than we found it. All-Natural & GMO Free Ingredients Philanthropy Environmental Responsibility Farming Sustainability 4
Slide 5: Recent Highlights
Recent Highlights Lifeway is the #1 Kefir brand in the Total US* 2014 • Expanded its flagship line of probiotic kefir into Canada • New Products Launched at Natural Products Expo West – Savory Lifeway Veggie Kefir – Lifeway Kefir with Oats – Lifeway Perfect 12 Kefir sweetened with stevia 2015 Lifewa
Slide 6: Lifeway Net Sales Growth
Lifeway Net Sales Growth $140 $119.0 $120 $100 $97.5 $81.4 $80 $70.0 $58.1 $58.5 $60 $40 $20 $0 2009 2010 2011 2012 2013 2014 6
Slide 7: Strong Outlook for 2015 & 2016
Strong Outlook for 2015 & 2016 • New Product Introductions • Kefir shipping internationally • Freezer section is a new location for Lifeway products = incremental net sales • Increasing advertising spend to drive brand awareness 7
Slide 8: Current and Forecasted Milk Prices
Current and Forecasted Milk Prices 8
Slide 9: Lifeway Foods Products
Lifeway Foods Products Organic Frozen Kefir Probugs BioKefir Cheese Kefir Kefir 9
Slide 10: Category Leader Positioned for Growth
Category Leader Positioned for Growth • Lifeway Kefir is the number one Kefir brand in the Total US – Lifeway leads in penetration of US households – Lifeway has the highest dollar buy rate – Lifeway has the most product trips with US households • Lifeway consumers are extremely loyal across the Tot
Slide 11: Trends in Healthy Living - Probiotics
Trends in Healthy Living - Probiotics Awareness of the term ‘probiotics’ has grown from a 9% in 2002 to 60% of American adults in 2009… …yet only 17 percent of the U.S. population indicating they have used probiotic-enriched foods in the past 30 days* *www.naturalproductsinsider.com 11
Slide 12: Trends in Healthy Living - Probiotics
Trends in Healthy Living - Probiotics •Probiotics can help combat stress, anxiety, and overall mood. •Can help improve the moods of patients with chronic fatigue syndrome, as well as IBS. •Medical professionals and researchers are devoting more attention to probiotics. •Research now shows bacteria’s
Slide 13: Growth Strategy
Growth Strategy • Expand distribution to additional outlets – Significant opportunity for retail and brand growth • Grow number of SKUs available at existing outlets • Continue innovative new product development – Frozen Kefir – Flavors – Kid-friendly ProBugs – Product Extensions • Increase consumer
Slide 14: Growth Strategy – Lifeway Wisconsin
Growth Strategy – Lifeway Wisconsin • 170,000-square-foot plant • Start of kefir production began in August 2015 • More than quintuple the combined manufacturing capacity of Lifeway's three existing facilities • Wisconsin facility is producing Lifeway’s top-selling products, taking advantage of both
Slide 15: Distribution Opportunities
Distribution Opportunities Broad and growing distribution across grocery, natural, mass, Convenience, and foodservice channels Expanding number of stores per chain 15
Slide 16: Distribution Opportunities
Distribution Opportunities • CVS – Featuring new 16oz size now in 200+ stores, with another 50-100 due by December • Target – Expansion of 16oz into over 1700 stores • Walmart – National with ProBugs and Protein • Wakefern – Accepting ProBugs in all 225+ stores • Expansion of Club Channel – Costco T
Slide 17: Distribution Opportunities: International Expansion
Distribution Opportunities: International Expansion • Global Probiotic Market will grow to $45 billion by 2018 – Europe accounts for 42% of that market • Lifeway Launches in 1,000+ Stores Nationwide across Canada (July 2014) • Distribution of Lifeway Frozen Kefir begins in the UK (May 2013) – Curren
Slide 18: Distribution Opportunities: International Expansion
Distribution Opportunities: International Expansion • Lifeway’s drinkable kefir launches in Mexico (June 2015) – Currently available at Costco and Walmart stores 18
Slide 19: Lifeway Frozen Kefir
Lifeway Frozen Kefir • Tart & tangy, similar to California style “fro-yo” • Positioned in freezer section, a new location – Opportunity for significant incremental sales • Lifeway Frozen kefir has 14.4% dollar share of the Frozen Yogurt/Frozen Kefir category, moving to #2 in the category 19
Slide 20: New Frozen Kefir Retail Concept
New Frozen Kefir Retail Concept Argo Tea and Lifeway Culture Shoppe partnership & 20
Slide 21: New Frozen Kefir Retail Concept
New Frozen Kefir Retail Concept & •Lifeway Culture Shoppe and Freshii partnership •Fresh, fast, nutritious foods concept rapidly increasing store count, including Target locations •Available in 24 shops now, 40 in coming months and national expansion possible in fall •Expanding soft serve kefir audi
Slide 22: New Frozen Kefir Retail Concept
New Frozen Kefir Retail Concept & •New kiosk concept in PRIDE filling stations throughout Chicagoland PRIDE of Geneva location 22
Slide 23: Co-branding Starfruit and Lifeway
Co-branding Starfruit and Lifeway • Starfruit Kefir Truck serves tart and tangy frozen kefir on the go • Available in many creamy flavors topped with fresh fruit, nuts or candy 23
Slide 24: New Product Innovation
New Product Innovation Lifeway Veggie Kefir Savory new beverage delivers a full serving of vegetables Lifeway ProBugs Bites Tiny freeze-dried kefir melts that Lifeway Kefir quickly dissolve in baby's mouth for with Oats safe and easy self-feeding Lifeway Perfect 12 Kefir Sweetened with stevia Organi
Slide 25: New Product Innovation
New Product Innovation Lifeway Protein Kefir •20g of protein packed in each serving •Protein-plus-probiotic powerhouse •Continues to provide the immunity- enhancing benefits of probiotics •A creamy and refreshing way to recover after a tough sweat session at the gym, or as an anytime drink that tast
Slide 26: New Product Innovation
New Product Innovation The success of Lowfat Watermelon Kefir introduced in June has prompted a decision to rotate seasonal flavors on an ongoing basis throughout the year. 26
Slide 27: New Product Innovation
New Product Innovation • Probiotic Pills / Supplements • Estimated $3.1 billion in sales for probiotic supplements and products by 2020. • Great alternative to kefir for those who are vegan, traveling, or have dietary / dairy restrictions. “Sales of probiotic supplements and products are growing lik
Slide 28: Marketing Lifeway with Social Media
Marketing Lifeway with Social Media • Social Media = Customer service, Community building, New product information, Contests and sweepstakes & company initiatives • Growing social media presence through: ~98,000 Followers ~505,000 Likes/Fans 19
Slide 29: Marketing Lifeway with Social Media
Marketing Lifeway with Social Media • Launch of new website in 2015 • 15% increase in traffic • Optimized path to purchase with new couponing and store locator system • Social media site integration and ad campaigns focused on consumer connections 19
Slide 30: Lifeway Recipe Development
Lifeway Recipe Development Lifeway Kefir is the ultimate secret ingredient that every chef needs in their kitchen. Our plain, unsweetened kefir options can fill a wide variety of culinary roles, both sweet and savory. Our flavored varieties are perfect in pancakes, smoothies, desserts and so much mo
Slide 31: Lifeway Recipe Development
Lifeway Recipe Development • Made with Lifeway – Issue 02 • Available at James Beard Taste America • Highlights versatility of kefir • Collaboration with celeb chefs • Major social media/site traffic driver 31
Slide 32: Recent Marketing Events
Recent Marketing Events • Earthfest-Boston, MA • LA Marathon , CA • Bay to Breakers, San Francisco, CA • United Run for the Zoo, Chicago, IL • Aids Walk, Boston, MA • Spring Awakening, Chicago, IL • Wanderlust -VT, CO, CA • Chicago Women’s Half Marathon, Chicago • Late Ride, Chicago • Chicago Cubs K
Slide 33: Lifeway Yoga Fest in the Hamptons
Lifeway Yoga Fest in the Hamptons Serving post yoga smoothies with chef Seamus Mullen at Gurney’s Montauk Resort 33
Slide 34: Chicago’s Lollapalooza
Chicago’s Lollapalooza Lifeway owns the popular Kidzapalooza space with title sponsorship, sampling, art mural and other festival integration activities 34
Slide 35: Taste of Tennis New York City
Taste of Tennis New York City Chic influencer event sponsorship and Celebrity athlete outreach Tennis Star Feliciano Lopez with new Protein Kefir at Celebrity Chef Challenge 35
Slide 36: Recent Marketing Events
Recent Marketing Events Lifeway’s Partnership with the James Beard Foundation – National Sponsor for the 3rd annual Taste America®: "Local Flavor from Coast To Coast“ National Epicurean Tour – As part of the program's 2015 itinerary, a line-up of world-class chefs will demo custom recipes using Life
Slide 37: Investment Summary
Investment Summary • Innovative, driven, and socially responsible brand redefining the yogurt and dairy category • Well-positioned to continue to increase market share in the growing health and wellness space − Further retail distribution throughout Europe and Canada • Investments in marketing & adv
Slide 38: Recent Accolades
Recent Accolades “Lifeway Foods is ready to make a big national marketing statement” – December 2014 “This Family Business Begun in a Basement Has Gone Big Time” – January 2015 CEO Julie Smolyansky named on Fortune Magazine’s “40 under 40 List” and as one of the “55 Most Influential Women on Twitter
Slide 39: Thank You
Thank You For more information please visit Lifeway’s website at: www.lifeway.net Edward Smolyansky Katie Turner Chief Financial Officer, Lifeway Managing Director, ICR P: 847.915.0118 P: 646.277.1228 39
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