Freshpet, Inc. · NASDAQ:FRPT
Freshpet — ICR Conference 2018
35 slides from Freshpet's conference presentation, Jan 8, 2018
Slide 1: ICR Conference Presentation: January 2018
ICR Conference Presentation: January 2018 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 Supply Chain Only refrigerated pet food network
Slide 7: With Growth Potential in Fresh E-Commerce
With Growth Potential in Fresh E-Commerce Strategy: Grow with winning players in fresh e-commerce 7 Curbside Online Fresh Retail Home Delivery
Slide 8: In 2017, we launched our new strategy
In 2017, we launched our new strategy . . .
Slide 9: The essence of our strategic bet in 2017
The essence of our strategic bet in 2017 . . . . 71% Repurchase Rate
Slide 10: The best product nobody heard of
The best product nobody heard of . . . 1.4% Penetration 35% Awareness
Slide 11: Freshpet
Freshpet
Slide 12: We increased our advertising investment
We increased our advertising investment . . . +60% media spending $13.5 $8.5 6% 9% % = percent of sales
Slide 13: And the growth accelerated
And the growth accelerated . . . . 20+% fresh growth
Slide 14: The media delivered an attractive financial return
The media delivered an attractive financial return. . . 90% pay back (about 13 months to get our money back – and accelerating)
Slide 15: Increased awareness and penetration
Increased awareness and penetration . . . 1.8% Penetration (+0.4 points) 40% Awareness (+5 points)
Slide 16: Which helped Freshpet grow into its scale in 2017
Which helped Freshpet grow into its scale in 2017. . . 100 bps reduction YTD *- Leverage adjusted to projected inflationary growth of infrastructure
Slide 17: In 2018, we will accelerate fresh growth
In 2018, we will accelerate fresh growth. . . +15% +20% >20%
Slide 18: By increasing media investment to further drive penetration
By increasing media investment to further drive penetration $27 $13.5 $8.5 6% 9% 9% >9% >9% % = percent of sales
Slide 19: That will deliver even stronger growth in 2019
That will deliver even stronger growth in 2019. . . +15% +20% >20% >20+%
Slide 20: Putting Freshpet well on its way to our $300 million goal
Putting Freshpet well on its way to our $300 million goal . . . Accelerated Media Spend 9% Media Spend Projected Net Sales $300 million $157 million
Slide 21: More stores, right stores, distribution and velocity
xxx More stores Right stores While driving both distribution and velocity . . . HH Penetration Buying Rate In-store conditions Distribution Drivers Velocity Drivers Significant White Space
Slide 22: Previously, store growth closely mirrored revenue growth
Previously, store growth closely mirrored revenue growth . . . Nielsen Measured Revenue Growth (includes pet specialty) Freshpet Store Growth
Slide 23: Until we implemented our new strategy
Until we implemented our new strategy . . . Nielsen Measured Revenue Growth (includes pet specialty) Freshpet Fridge Growth
Slide 24: Freshpet
Freshpet
Slide 25: Velocity growth will drive the incremental growth rate to deliver our 2020 goal
Velocity growth will drive the incremental growth rate to deliver our 2020 goal . . . +15% +18% Growth Rate Required to Hit $300M
Slide 26: Driving significant margin improvement
Driving significant margin improvement . . . *- Leverage adjusted to projected inflationary growth of infrastructure By 2020: 9 pt. reduction in fixed costs
Slide 27: Which will drive long term net sales and profitability
Which will drive long term net sales and profitability . . . +$156mm Net Sales +$300mm Net Sales +9 Points of Profit Margin +$16mm Adj. EBITDA +$60mm Adj. EBITDA
Slide 28: Delivering our 2020 goals
Delivering our 2020 goals. . .
Slide 29: While positioning Freshpet for future growth beyond 2020
While positioning Freshpet for future growth beyond 2020. . . 10% of HH’s +10%/year 10% of sales UK and beyond 30,000 stores Growth Potential: 2020 and beyond HH Penetration Buying Rate New Stores Geographic Expansion E-commerce
Slide 30: Further strengthening our barriers to entry
Further strengthening our barriers to entry . . .
Slide 31: Delighting pet parents, pets, shareholders and employees
Delighting pet parents, pets, shareholders and employees . . .
Slide 32: Freshpet
Freshpet eS PUG OFF, PROPYLENE GLYCOL
Slide 33: Appendix
APPENDIX Freshpet FEED THEG GROW TH/
Slide 34: Grocery and Mass Select is middle of the pack on cost to feed
Grocery and Mass Select is middle of the pack on cost to feed
Slide 35: Pet Specialty Vital is an economical choice in Pet
Pet Specialty Vital is an economical choice in Pet