Barfresh Food Group Inc. · NASDAQ:BRFH
Barfresh Food — Investor Presentation (April 2018)
36 slides from Barfresh Food's investor presentation, April 2018
Slide 1: Barfresh Whirl Class Blended Drinks, April 2018
barf re sh WHIRL*CLASS BLENDED DRINKS April, 2018 PREMEASURED | PREPACKAGED | PERFECTION
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 2
Slide 4: I. Introduction
/ y © _ |. INTRODUCTION
Slide 5: Barfresh's Differentiated Product & Process
Barfresh’s Differentiated Product & Process Operational Simplicity Ingredients • Perfect consistency every time • No artificial colors or flavors • Inventory Control • Premium taste • Makes a smoothie in 15 seconds • Clean labeling • Only equipment needed: Blender • Real fruit • No waste, no spoilag
Slide 6: Barfresh Product Portfolio
Barfresh Product Portfolio caribbean smoothie Sweet mango & tangy pineapple, sorbet; vanilla shake all natural pear juice 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 Product & Process
Barfresh’s Differentiated Product & Process 6
Slide 8: Barfresh Innovates New "Easy Pour" Bulk Format Solution
Barfresh Innovates New “Easy Pour” Bulk Format Solution for High-traffic Venues Response to customers requiring rapid customer turnover • 3 flavors: Strawberry Banana, Mango Pineapple, Caramel Macchiato • Frozen concentrate: Mix one gallon of concentrate with one gallon of water • Makes 18 servings
Slide 9: Barfresh at a Glance
Barfresh at a Glance International patent monetization opportunity (1) New “Easy Pour” Bulk Format Custom flavor development capabilities Proprietary portion controlled frozen beverage offering Exclusive Partnership (4) Exclusive sales Seven flavors partnership for North available as part America (2
Slide 10: II. Industry Overview
7 yO Il. INDUSTRY OVERVIEW
Slide 11: Frozen Beverages: Fastest Growing Beverage Category
Frozen Beverages: Fastest Growing Beverage Category Beverage Sales by Category Iced Tea Coffee 12% 14% Frozen Beverages have Lemonade 3% been the fastest growing Frozen category Beverages 9% Frozen Beverages Carbonated represent the 4th largest Soft Drinks Other 10% non-alcoholic beverage (CSD) 37%
Slide 12: Smoothies are an All Day Opportunity
Smoothies are an All Day Opportunity Grow Sales in Non-traditional Dayparts Smoothie Sales Throughout the Day Smoothies: A Snack or a Meal? After 5 PM Before 11 AM 14% 15% 59% SNACK 30% 41% 25% PART After During OF A MEAL Lunch Lunch Rush (1PM-5PM) (11AM-1PM) 16% MEAL Source: Vitamix/ORC Internation
Slide 13: III. Sales and Distribution Strategy
III. SALES AND DISTRIBUTION STRATEGY 12
Slide 14: Sales Process Summary
Sales Process Summary & other distributors • Facilitate new business • Product development • Warehouse and deliver product • Training • Provide frozen supply • Strategic partnership with chain to end customers Sysco and PepsiCo • Leverage exclusive broker network Internal Sales Team Focused on Large
Slide 15: 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 16: 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 17: Sales Force Productivity Enhancement
Sales Force Productivity Enhancement • Restructured in-house sales force in 2017 to enhance productivity, drive greater scale, and reduce fixed overhead • Providing support to and extension of sales force by enlisting multiple independent brokers across the country and in Canada • Allows internal Ba
Slide 18: IV. Sales Channels
56 IV. SALES CHANNELS 17
Slide 19: Engagement with Major Third Party Foodservice Operators
Engagement with Major Third Party Foodservice Operators Expands Potential Customer Base • Operators control tens of thousands of client foodservice venues • Enabled as a result of Barfresh securing national distribution footprint • Meets operators’ needs: speed of service, consistency • Barfresh pro
Slide 20: National Rollout of over 1,000 Foodservice Locations
National Rollout of over 1,000 Foodservice Locations FoodService Dining • National Customer is Adding Barfresh’s Dairy and non-Dairy Smoothie Options to Menus in over 1,000 Locations • Further Location Expansion Expected Throughout 2018 • This Customer is One of the Largest in the Food Service Indus
Slide 21: Innovation For Elementary and Secondary Schools
Innovation For Elementary and Secondary Schools Schools: K-12 • Developed new product to fulfill USDA requirements for its national school meal programs • Contains ½ cup real fruit, 4 oz. yogurt in every 8 oz. serving, no added sugar, no artificial ingredients or preservatives, meets all restricted
Slide 22: Approval for All Branches of U.S. Armed Forces
Approval for All Branches of U.S. Armed Forces Military • 6 Bases Activated April 2018 and Initial Shipments to be Reflected in Second Quarter 2018 Results • Received approval from the United States Defense Logistics Agency (DLA) to sell Smoothie Products into all Branches of the U.S. Armed Forces •
Slide 23: Leveraging Relationships with High Traffic Customers
Leveraging Relationships to Drive Sales & Brand Visibility with High Traffic Customers Statue of Liberty/Ellis Island Pepsi Center (New York City, NY) (Denver, CO) Aquarium of the Pacific (Long Beach, CA) 22
Slide 24: V. Operations
( y © V. OPERATIONS
Slide 25: Manufacturing Capabilities / Relationships
Manufacturing Capabilities / Relationships • Working exclusively with contract manufacturers • Model allows maximum flexibility to manage volume fluctuations and start up requirements • Barfresh-owned packaging equipment positioned on manufacturing line to work seamlessly with contract manufacturer’
Slide 26: Manufacturing Capabilities / Relationships
Manufacturing Capabilities / Relationships • Currently working with two contractors: • SALT LAKE CITY, UTAH • SEARCY, ARKANSAS • Ability to ramp up to additional 100 million units of annual capacity • Dual locations provide efficiency of national supply chain • Significant opportunity to realize cos
Slide 27: Supply Chain In Place To Meet Increased Demand
Supply Chain In Place To Meet Increased Demand • Working with multiple forward warehousing partners to enhance ability to service all customers in North America • Inventory strategically located forward warehouses in Chicago (IL), Raynham (MA), Jacksonville (FL), San Leandro (CA), and Arkansas • Sys
Slide 28: VI. Unibel
/ yO VI. UNIBEL 27
Slide 29: Strategic Investor & Global Partner
Strategic Investor & Global Partner • November 2016: $10M strategic equity investment by Unibel, parent company of Fromageries Bel, known as Bel Group • Headquartered in Paris, France • World leader in branded cheese (Laughing Cow, Mini-Babybell, Boursin); products sold in 130+ countries • Global op
Slide 30: VII. Key Takeaways
( yO VII. KEY TAKEAWAYS
Slide 31: Positioned for Strong Revenue Growth
Positioned for Strong Revenue Growth • First Quarter, 2018 Revenue Expected to be over $700,000 (more than double Last year) • 1,000 National Foodservice Locations Begin Second Quarter, 2018 • Expect Additional Locations Throughout 2018 • Over 100 School Contracts Signed entering 2018 • Expect Addit
Slide 32: Experienced Management Team
Experienced Management Team Executive Position Yrs. Select Prior Experience Riccardo Delle Founder & Chief Executive 15 Coste Officer Chief Financial Officer Joseph Tesoriero 30 Joseph Cugine President 30 Director – Product Craig Bennett Manufacturing & 30 Development Tim Trant Chief Customer Office
Slide 33: Sound Capital Structure Positioned for Growth
Sound Capital Structure Positioned for Growth Growth Capital Strategic Investor • Cash on Balance Sheet at 12/31/17: $1.3M & no Debt • Ended 2017 with $1.4M of Inventory for Planned Rollout of new National Account • February 2018: $4.1M convertible note (10% coupon) for growth capital available upon
Slide 34: Key Takeaways
Key Takeaways 1 Proprietary frozen beverage delivery system that’s on-trend – solves traditional food-service issues: waste, labor, consistency 2 Scalable infrastructure in place to generate margin expansion as sales accelerate 3 Sales channel and distribution include Exclusive Sysco and PepsiCo con
Slide 35: Snapshot of Barfresh Food Group
Snapshot of Barfresh Food Group Company Summary Stock Symbol (OTCQB) BRFH Stock Price $0.70 52-Week Range $0.35 to $0.82 Shares Outstanding* 117.7 million Market Capitalization $85 million 3-mth Average Daily Volume 111,500 Year founded 2012 Headquarters Beverly Hills, California *As of 12/31/17 34
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