Big Rock Brewery Inc. · TSX:BR
Big Rock Brewery — Investor Presentation (January 2025)
23 slides from Big Rock Brewery's investor presentation, January 2025
Slide 1: Investor Deck
Investor Deck Big Rock Brewery Inc. (TSX: BR) Big Rock Brewery Inc. (TSX: BR) 1
Slide 2: Disclaimer
Disclaimer Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are
Slide 3: Company Overview
Company Overview Big Rock Brewery Inc. (TSX: BR) 3
Slide 4: Brief History of Big Rock
Brief History of Big Rock Founded 1985 New Facility 1996 Brand Licenses 2019 Big Rock Big Rock moves into its current Ready To Drink co-pack Brewery is facility located in South East Calgary entry begins - Agreement founded by Ed signed with Iconic Co. McNally, a Calgary-based lawyer dissatisfied wi
Slide 5: Owned Asset Base
Owned Asset Base Production Line Brewhouse – 1996 Keg Line – 1996 New Canning Line – 2022 New Cartoner – 2024 ($8MM) ($1.5M) Office Tap Room Restaurant (Big Sky BBQ) Retail Space 5 Big Rock Brewery Inc. (TSX: BR) 5
Slide 6: Diversified Portfolio
Diversified Portfolio Our Beers, Ciders & RTD's We are proud to offer a wide range of great beverages across a number of categories Signature Brands Ready-to-Drink Recent Innovations Cider Value Brands Non-Alcoholic Big Rock Brewery Inc. (TSX: BR) 6
Slide 7: Corporate Overview
Corporate Overview Real Estate Enterprise Employee Value Value Count $42.7 million(1) $29.4 million(2) 120+ 2020 ACT 2021 ACT 2022 ACT 2023 ACT 2024 L/E 2025 FCAST Wholesale volumes (hl) 172,996 163,630 158,496 157,203 141,453 137,950 Net revenue ($000s) $ 43,984 $ 45,982 $ 47,098 $ 43,677 $ 44,338
Slide 8: Return to Profitability
Return to Profitability Big Rock Brewery Inc. (TSX: BR) Strictly Private and Confidential 8
Slide 9: Returning to profitability
Returning to profitability Our actions taken & path forward 1. Investing in new management 2. Capitalizing on current trends with a focus on the RTD market through Securing incremental co-pack volumes Strategic capital investments that increases our RTD production capacity and efficiency 3. Addr
Slide 10: New Management – New President & CEO
New Management – New President & CEO Leadership A key factor in Big Rock’s transformation is the strength of our revitalized leadership team, which brings over 97 years of combined experience in the beverage industry. With their expertise, we will streamline processes, implement best practices, an
Slide 11: New Management – David on a page
New Management – David on a page…. The Coca-Cola The Coca-Cola Company Company National Packaging Manager - Canada National Supplier The Coca-Cola British Armed Forces Amcor Packaging Manager - U.K - Supplier Company Big Rock Brewery Royal Artillery Technical Manager Management - President & CEO - P
Slide 12: New Management – Key Leadership
New Management – Key Leadership James Chong New Jason Higgins New Chief Financial Officer Joined: 2024 VP Sales & Marketing Joined: 2023 25+ years of experience 20+ years in beverage industry • Olé Cocktail Company Kimberly • Full Pint Ventures Overton • ABI/Labatt Breweries Director, Human Resource
Slide 13: Capitalizing on Trends – Market Analysis
Capitalizing on Trends – Market Analysis Canadians are increasing their consumption of RTDs and ciders at a compounded annual growth rate of 11.8% since 2014 National RTDs/Cider Sales ($CAD millions)1 CAGR 11.8% (2014 – 2023) $298 $288 $276 $184 $164 $142 $151 $141 $126 $109 2014 2015 2016 2017 2018
Slide 14: Capitalizing on Trends – Co-Packing Volumes
Capitalizing on Trends – Co-Packing Volumes Key Opportunity: 2025F Marginal EBITDA Impact $3.4M One of Big Rock’s most significant growth opportunities lies in the co-pack production space, where we can harness our existing capacity to partner with leading brands and generate volumes that are esse
Slide 15: Capitalizing on Trends – Capital Investment
Capitalizing on Trends – Capital Investment The Next Step – RTD Upgrade / In-Line Blending System The Opportunity Introduction of an in-line precision blending system will allow Big Rock to produce RTDs on an on-demand basis allowing us to load more RTD volume into a given shift, eliminate a choke
Slide 16: Input Costs
Input Costs Input Costs: 2025F Marginal EBITDA Impact $794k Annual expenditures are approximately $38M and management has been working with suppliers to optimize pricing. As one example, annual savings of $794k were negotiated by management on the $10.3M spent annually on Cans. Remaining gross e
Slide 17: Rationalization of Non-Core Assets
Rationalization of Non-Core Assets Rationalization of non-core assets: 2025F Marginal EBITDA Impact $770k Management has rationalized non-core assets which have had a negative affect on profitability. This includes the Edmonton Warehouse, the Vancouver Brewery, and the soon to be rationalized Toro
Slide 18: Investing in our Brands
Investing in our Brands Revitalize investments Portfolio Review and Capitalize on success in existing and Refresh in RTD space innovation brands Our brands at the higher end of the value spectrum position Big Rock In 2023, Big Rock significantly cut- in the shift towards “premiumization” back on
Slide 19: Capital Investment
Capital Investment Capital Investment: In June 2024, we created our in-house cartoning capability, through the purchase of a brand new, state-of-the-art cartoning machine. This removes our third-party re-pack costs, and we are better able to bid/win new co-pack business due to this enhanced valu
Slide 20: Projected Return to Profitability
Projected Return to Profitability Established Plan for Growth in Profitability New management has already been successful in identifying and executing on meaningful contributions to Big Rock’s bottom line. These measures are expected to fully come into effect in 2025 and beyond with the introducti
Slide 21: Value Proposition – Share Price vs Value
Value Proposition – Share Price vs Value Current share price overview Historical performance has led to the share price of Big Rock trading below both the fair and book value of net assets. This provides confidence that, in addition to our operational opportunities, there is considerable tangible
Slide 22: Financial – Market Performance
Financial – Market Performance 2022 Annual results: EBITDA drops to ($3.4M) 2023 Annual results: New 3-year Q1 2022 results: Announcement of Strategic Review $2.2M EBITDA co-pack agreement EBITDA down YoY +$9M in revenue Additional $4.2M 2025 Onwards Termination subordinate debt 1. Improved of Presi
Slide 23: Big Rock Brewery Inc. (TSX: BR)
Big Rock Brewery Inc. (TSX: BR)
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