Barfresh Food Group Inc. · NASDAQ:BRFH
Barfresh Food — Investor Presentation (December 2018)
36 slides from Barfresh Food's investor presentation, December 2018
Slide 1: Investor Presentation
Investor Presentation Premeasured I Prepackaged I Perfection December 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: 3rd Quarter 2018 Results and Recent Business Highlights
3rd Quarter 2018 Results and Recent Business Highlights Third quarter revenue increased 138% to $1.6 million Third quarter gross margins continued improvement to 55.3% Expanded Military channel to 75 military dining facilities School channel expanded to over 300 locations across multiple states Anno
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 Source: Vitamix/ORC International 15 © 201
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: Exclusive Distribution Partnership
Exclusive Distribution Partnership • Distribution partnership with the largest food industry redistributor in North America signed September 2018 • Full product distribution in Dot Food’s approximate 4,500 locations representing multiple channels including food service, retail and convenience • Dot
Slide 21: IV. Sales Channels
IV. SALES CHANNELS
Slide 22: 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 22 © 2018 BarFresh Food Group Inc. All r
Slide 23: Abundant National Account Opportunities
Abundant National Account Opportunities 1st National Account Customer Rollout • Major milestone – April 2018 rollout with a National Customer with 1,000 locations • Adding Barfresh’s Dairy and non-Dairy Smoothie options to menus • Customer is one of the largest in the foodservice industry 1st Nation
Slide 24: 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 300 school serving locations as of Novem
Slide 25: Approval for All Branches of U.S. Armed Forces
Approval for All Branches of U.S. Armed Forces Military • 60 military locations installed (as of December 2018) and agreements in place for 75 dining facilities • Received approval from the United States Defense Logistics Agency (DLA) to sell smoothie products into all branches of the U.S. Armed For
Slide 26: V. Operations
V. OPERATIONS
Slide 27: 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 28: 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 29: VI. Unibel
Vi. UNIBEL
Slide 30: 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 31: VII. Key Takeaways
Vii. KEY TAKEAWAYS
Slide 32: 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 33: Sound Capital Structure Positioned for Growth
Sound Capital Structure Positioned for Growth Growth Capital in Place & Aligned with Strategic Investor Balance Sheet at 9/30/18 Financing in place Cash Inventory Debt $1.3M of principal was funded in November 2018 upon receiving written notification of $316K $1.1M $2.4M approval from a national QSR
Slide 34: Positioned for Strong Revenue Growth
Positioned for Strong Revenue Growth FY19 significant revenue acceleration expected Recently received Over 300 School serving Approval to sell smoothies Achieving gross written notification of locations into U.S. Armed Forces margins over 50% approval from 1st (as of November 2018) starting 2Q18 exp
Slide 35: 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, PepsiCo, Dot Foods contr
Slide 36: Snapshot of Barfresh Food Group
Snapshot of Barfresh Food Group Company Summary Stock Symbol (OTCQB) BRFH Stock Price1 $0.72 52-Week Range $0.35 to $0.72 Shares Outstanding2 120.4 million Market Capitalization $87 million 3-mth Average Daily Volume 119,000 Year founded 2012 Headquarters Beverly Hills, California 1As of 11/28/18 2A
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