Mgp Ingredients, Inc. · NASDAQ:MGPI
Mgp Ingredients — Investor Day (April 2016)
16 slides from Mgp Ingredients's investor day presentation, Apr 5, 2016
Slide 1: Analyst Day Lawrenceburg, IN Distillery
ANALYST DAY LAWRENCEBURG, IN DISTILLERY
Slide 2: Forward-looking statements
Certain of the comments made in this presentation and in the question and answer session that follows may contain forward-looking statements in relation to operations, financial condition and operating results of MGP Ingredients, Inc. and such statements involve a number of risks and uncertainties.
Slide 3: Participants and schedule
• MGP participants: • Gus Griffin, President and CEO; Tom Pigott, Vice President of Finance and CFO; Steve Glaser, Vice President of Production and Engineering; Greg Metze, Master Distiller; David Whitmer, Corporate Director of Quality and Alcohol RD&I; Roger Schmidt, Lawrenceburg General Manager; a
Slide 4: Investing for Growth in Premium Spirits and Specialty Food Ingredients
INVESTING FOR GROWTH IN PREMIUM SPIRITS AND SPECIALTY FOOD INGREDIENTS APRIL, 2016
Slide 5: MGP company overview
• Founded in 1941 by Cloud L. Cray, Sr. • Headquartered in Atchison, Kansas • 300 employees • Leading supplier of premium bourbon, whiskey, distilled gin, and vodka • Largest U.S. supplier of rye whiskey • Largest U.S. supplier of distilled gin • Largest U.S. supplier of specialty wheat proteins and
Slide 6: Facilities: Lawrenceburg, Atchison Protein & Starch, Atchison Distillery, R&D
LAWRENCEBURG, IN DISTILLERY • Distilling & Aging • Wide Range of Whiskeys • Standard & Custom Mash Bills • Gins • Grain Neutral Spirits/Vodka • R&D Lab ATCHISON PROTEIN & STARCH • Specialty Wheat Proteins & Starches • Textured Proteins ATCHISON, KS DISTILLERY • High Quality, Efficient Production • G
Slide 7: Spirits category data and MGP estimated share
BOURBON • Category: • 20.4MM Cases • 6% 5 Year CAGR • MGP Estimated Share = 9% CRAFT • Category: • +750 Distilleries GIN • Category: • 9.9MM Cases • (2)% 5 Year CAGR • MGP Estimated Share = 35% RYE WHISKEY • Category: • 671K Cases • 41% 5 Year CAGR • MGP Estimated Share = 70% Notes: - Category data
Slide 8: Spirits market share trends and premiumization
• Stealing share from beer Distilled spirits have gained market share from beer every year since 2010, growing +20 million cases over that period. • Regaining share from white goods Bourbon has out performed the industry over the past 5 years, regaining 1 share point during that period. However, Bou
Slide 9: Specialty ingredients categories: high protein, high fiber, plant based, non-GMO
HIGH PROTEIN • Category (N. Amer.) = $16B • 9% projected 5 year CAGR HIGH FIBER • Category (N. Amer.) = $1.3B • 13% projected 5 year CAGR PLANT BASED PROTEINS • Category (N. Amer.) = $0.6B • 4% projected 5 year CAGR NON-GMO • Category (N. Amer.) = $0.8B • 5% projected 5 year CAGR 37% of Americans ar
Slide 10: Mission statement
Secure our future by consistently delivering superior financial results by more fully participating in all levels of the alcohol and food ingredients segments for the betterment of our shareholders, employees, partners, consumers, and communities.
Slide 11: Strategic Plan
Tn) [— — =] STRATEGIC PLAN Build MGP Brand Maximize Value Invest for Growth Risk Management o = oc = u o 3 c > o £ S 2 a a (s)
Slide 12: Supplying all tiers of the beverage alcohol market
• Supplying all tiers of the beverage alcohol market • Large multinationals • Bottlers and rectifiers • Craft • Supporting changing consumer tastes • Share shift from beer to spirits • Share shift from white goods to whiskey • Growth of rye • Premiumization
Slide 13: Product mix optimization in food grade alcohol
• Product Mix Optimization in Food Grade Alcohol Food Grade Alcohol Products MGP Branded Product Whiskey: Aged Whiskey: New Distillate White Goods: Gin White Goods: Vodka Industrial Alcohol M a r g i n s
Slide 14: Specialty ingredients focus and macro trends
“The growth in this [meat substitutes] market is propelled by continuous growth in the vegetarian food industry and the increasing health concerns of consumers.” SOURCE LINK “Whatever the science says, many consumers have made up their minds: no genetic tinkering with their food,”* SOURCE LINK • Foc
Slide 15: Metze's Select Indiana Straight Bourbon
• Brand: Metze’s Select • Concept: Limited Edition – Ultra Premium • Product: Indiana Straight Bourbon Whiskey • USP: Showcasing MGP’s range of expertise and strengthening our reputation with trade and consumers • Received an “Outstanding!” rating by Whisky Advocate It’s a more delicate bourbon, lig
Slide 16: Till American Wheat Vodka
• Brand: Till American Wheat Vodka • Concept: Till Vodka. Pride Distilled. • Product: Wheat Vodka, using wheat only from Kansas farms • USP: A vodka based on values, rather than status or production process. A brand that represents timeless and aspiration values, and tied to the region that embodies