Freshpet, Inc. · NASDAQ:FRPT
Freshpet — William Blair 37th Annual Growth Conference 2017
15 slides from Freshpet's conference presentation, Jun 19, 2017
Slide 1: William Blair 37th Annual Growth Conference June 2017
William Blair 37th Annual Growth Conference June 2017 Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the Company’s results may differ materially from those expressed or implied by such
Slide 3: Who Is Freshpet?
A disruptive innovation in a huge and growing industry A socially responsible, pet health-centric brand built around the contemporary consumer We are redefining what good pet food is in ways that are intuitive to consumers We deliver a value proposition relevant to the average consumer and every cla
Slide 4: Freshpet Lives at the Intersection of Two Very Powerful Macro-Trends in CPG
Freshpet Lives at the Intersection of Two Very Powerful Macro-Trends in CPG Humanization of Pets Fresh, Wholesome, All-Natural Foods
Slide 5: We Operate Differently
We Operate Differently Delighting consumers with fresh food & our company ideology Environmentally Focused Employee Engagement Community & Consumer Engagement
Slide 6: A Difficult Business to Replicate
High Brand Loyalty Alignment with deep pet parent emotional motivations Differentiated Innovative forms, technologies, and appearance Manufacturing Proprietary technology, processes, and infrastructure Freshpet Fridge Branded, company-owned real estate High Capital Intensity and Established Infrastr
Slide 7: Freshpet Has Seen Significant Growth Over the Past Four Years
Freshpet Has Seen Significant Growth Over the Past Four Years, Driven by Both Distribution and Same Store Sales Distribution & Sales Growth May 2012 – April 2017 Total US Multi Outlet IRI (4 wk.)
Slide 8: Increasing Repeat Rate & Strong Consumer Affinity
Increasing Repeat Rate & Strong Consumer Affinity
Slide 9: Our Biggest Opportunity: Awareness & Penetration
Our Biggest Opportunity Freshpet Rachel Ray Blue Buffalo Purina ONE Cesar Awareness (Aided) 35% 52% 86% 82% 70% Penetration 1.4% 3.6% (dry) ~8% (est) 5.2% (dry) 3.4% (wet) Source: 2016 Brand Tracker, IRI 2016 HH Panel Freshpet Awareness & Penetration are a Key Focus
Slide 10: Key Learning: Time to Shift to Rapid Scaling
Key Learning: Time to Shift to Rapid Scaling On trend product Reasonable margins Low awareness / high repurchase rate Ample plant capacity Financial flexibility Established business model Proven marketing program Installed Freshpet Fridge base Opportunity Capacity Capability
Slide 11: Cost Savings, Media Investment, Velocity and Distribution Drivers
Cost Savings Investment in Media Velocity Increase (+Revenue) Distribution Increase (+Revenue) Plant Leverage (Incr. Pounds Produced) SG&A Leverage
Slide 12: Strategy, Tactics, Result
Strategy Tactics Result Drive HH Awareness & Penetration TV & Digital Advertising Accelerated Penetration Growth Accelerate Fridge Placements Change Selling Approach Make Freshpet Essential New Fridge Placements Growth Accelerating in 2018 Strengthen Gross Margin Convert From Building to Optimizatio
Slide 13: Growing Into Our Scale
Growing Into Our Scale *Leverage adjusted for projected inflationary growth of infrastructure Net Sales
Slide 14: Future Economic Model: Profitable in 2018
14 Future Economic Model: Profitable in 2018 FY 2016FY 2020 Growth Rate15%15-20% Stores16,60923,000+ Adj. Gross Margin (1)49.6%~52% Adj. SG&A (2) 43.1%~33% Adj. EBITDA Margin13%20+% Media Investment~6% of sales~9% of sales Advertising Payback1.5 yrs.-- Free Cash Flow-$13.9M~15% of sales (1) Gross Ma
Slide 15: Summary: The Feed the Growth Plan
Accelerates growth rate from 13% in Q4 2016 to 20% in Q4 2017 Proven advertising campaign investment drives the growth Strengthens the company’s barriers to entry/competitive advantages Improves the structural economics of the business More quickly absorb the fixed infrastructure costs Increase the
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