Lifeway Foods, Inc. · NASDAQ:LWAY
Lifeway Foods — Investor Presentation (June 2016)
26 slides from Lifeway Foods's investor presentation, June 2016
Slide 1: Lifeway Foods, Inc.
Lifeway Foods, Inc. June 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. The
Slide 3: Agenda
Agenda • About Lifeway • Recent Highlights • Strategy for Growth • Kefir, Health & Wellness Category Growth • New Product Innovation • Financial Highlights • Investment Summary
Slide 4: About Lifeway
About Lifeway LWAY LISTED • Lifeway's primary product is drinkable kefir, a fermented dairy product • Lifeway is the largest producer and marketer of kefir in the U.S. and an important player in other probiotic-based, “better for you” products May 16, 2016 marked Lifeway’s 30th Anniversary! Market C
Slide 5: About Lifeway: What is Kefir?
About Lifeway What is Kefir? • Kefir is a live and active cultured dairy beverage with a tart and tangy taste and creamy consistency. • Kefir is high in protein, calcium and vitamin D, and low in calories. • Lifeway incorporates a unique blend of probiotic kefir cultures in the fermentation process.
Slide 6: Our Products
Our Products Organic Frozen Kefir Probugs BioKefir Cheese Kefir Kefir 6
Slide 7: The Lifeway Mission
The Lifeway Mission We’re here to provide the best in probiotic and nutritious foods while keeping the world a better place than we found it. All-Natural & GMO Free Ingredients Philanthropy Environmental Responsibility Farming Sustainability 7
Slide 8: Experienced Management Team
Experienced Management Team Name Title Experience Chief Executive Officer Julie Smolyansky & President Chief Operating Officer, Ed Smolyansky Treasurer and Secretary John Waldron Chief Financial Officer Senior Executive Vice Jennifer Reilly President of Sales 8
Slide 9: Recent Highlights
Recent Highlights • Increased distribution of our recently launched Protein Kefir • Continued partnership with select retailers to launch private label kefir • Added new varieties of Whole Milk Kefir Global demand for protein at an all time high: US sales of protein labeled food rose almost “Whole m
Slide 10: Recent Highlights
Recent Highlights • Increased advertising & marketing investment spend to support Lifeway ProBugs • New 8-week ProBugs commercial program launched May 2nd • In-store demos in ~500 Walmart stores the weeks of May 6th and May 13th 10
Slide 11: Recent Highlights
Recent Highlights Carli Lloyd New Lifeway Brand Ambassador • 2015 FIFA Women’s World Cup Champion • Two-time Olympic Gold Medal Winner • Lloyd to be featured in events surrounding the 2016 Summer Olympics in Rio • Additionally, Lloyd will appear at a series of Lifeway sponsored events and be feature
Slide 12: Strategy for Growth
Strategy for Growth LIFEWAY IS THE #1 KEFIR BRAND IN THE UNITED STATES Expand distribution across new and existing retailers and channels within the U.S. and Internationally Drive brand awareness and promote consumer understanding of probiotics Continue innovative new product development Sourc
Slide 13: Category Leader Positioned for Growth
Category Leader Positioned for Growth LIFEWAY PRODUCTS DOMINATE THE KEFIR CATEGORY WITH ~90% OF SALES 2010 2015 $59 Million Kefir Category Sales $120 Million Kefir Category Sales All Other All Other Private Kefir Brands Kefir Brands Label Lifeway Lifeway ~90% Share of Kefir Category Lifeway continue
Slide 14: Trends in Healthy Living: Probiotics
Trends in Healthy Living: Probiotics 45% of Americans today consider themselves very or somewhat knowledgeable about the benefits of probiotics on digestive health 60% Americans say they make food purchase decisions driven by health concerns 20% of US consumers say they incorporate probiotics in the
Slide 15: Trends in Healthy Living: Probiotics
Trends in Healthy Living: Probiotics o Probiotics can: Help combat stress, anxiety, and improve overall mood Improve the moods of patients with chronic fatigue syndrome, as well as IBS o Medical professionals and researchers are devoting more attention to probiotics o Research now shows bacteria
Slide 16: Distribution Opportunities
Distribution Opportunities Broad & Growing Distribution Across All Formats & Channels Expanding our distribution today and tapping into new opportunities Large Format Small Format Food Service Conventional & Natural Drug Stores & C-Stores Lodging, Business & QSR 16
Slide 17: Online and International Opportunities
Online Opportunities International Opportunities May 2013 Launch of Lifeway Frozen Kefir in U.K. July 2014 Lifeway Kefir Launched in 1,000+ Stores Across Canada June 2015 Lifeway Kefir Launch in Mexico at Target and Wal-Mart Mexico Canada U.K. U.S. Mexico 17
Slide 18: New Product Innovation
New Product Innovation REM e Lifeway. KEFIR™ Pam organicKEFIR cultured whole milkwio @ STRAWBERRIES and cream Ge Hisuy XQ? I chewables A YNTHIAROWLEY Bo Lifeway. MAKING KEFIR SINCE 1986 18
Slide 19: Frozen Kefir Retail Concept
Frozen Kefir Retail Concept & Lifeway Culture Shoppe & Freshii Partnership • Fresh, fast, nutritious foods concept rapidly increasing in store count, including Target locations • Expanding soft serve kefir audience and introducing Lifeway products to Freshii customers • Soft serve frozen kefir now b
Slide 20: Frozen Kefir Retail Concept
Frozen Kefir Retail Concept New Kiosk Concept In PRIDE Filling Stations Throughout Chicagoland & 20
Slide 21: Recent News
Recent News E Wome Q searcu The New Mork Times 5 of 10 articles reac BUSINESS DAY From Kefir to ‘Cucamelons,’ Sampling the Next Wave of Natural Foods By STEPHANIE STROM MARCH 18, 2016 Cf) (y] = PST@MPANY The Health Benefits of Kefir Milk What it is, why it's good for you, and how you can add this su
Slide 22: Financial Highlights
Financial Highlights
Slide 23: Financial Highlights
Financial Highlights Historical Net Sales Growth $119 $119 $98 $81 $70 $59 $30 $33 2010 2011 2012 2013 2014 2015 1Q'15 1Q'16 23
Slide 24: Financial Statements
Financial Statements Lifeway Foods, Inc. Consolidated Income Statement Quarter Ended March 31, 2016 2015 Net Sales $32,570 $29,622 Gross profit 8,588 8,383 Income from operations 1,112 1,410 Net income $648 $654 Diluted earnings per common share $0.04 $0.04 24
Slide 25: Investment Highlights
Investment Highlights Lifeway: A leading brand that defines the kefir category … ripe for extension! Solid history of top line growth with a forward focus Opportunity to accelerate core growth through existing distribution Introduction of kefir to new sales channels and geographies Compell
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