Transcript James Davis – Distinctive Brands, Inc.
Patented Beef Jerky Made in the USA
March 22, 2012
DISTINCTIVE BRANDS, INC.
Operates in $2.5 billion dollar meat snack category. Delivering a Difference to Meat Snacks Beef Jerky with patented tenderization process Using 100% US Beef and scalable production facilities Optimized and experienced organizational structure Multi-year brand success and development
Founded in 2001
Go To Market Strategy
1.
4 Keys to Building Brand Equity: Patented Tenderization Process Patent 6,319,527 o Established in 2001 expires in 2021 Distinctive Brands, Inc. is the only beef jerky company to: o Use a natural enzyme to tenderize meat prior to smoking o Deliver a more tender snacking experience o Faster delivery of flavor o Increases production yield and sourcing options
Go To Market Strategy
2.
4 Keys to Building Brand Equity: Focus distribution to heavy meat snack consumer.
3.
“Right at Shelf” on packaging, pricing and promotional tools.
4.
Measure consumer loyalty in micro examples of customer sales growth.
Outdoor Channel
Wild Ride holds the number 1 or 2 position in 3 of the top 4 retailers.
Distinctive Brands -
3 Year Sales Trend basis limited working capital 2011 Key Financial Improvements 16% reduction in logistics 45% reduction in SG&A
Strong Sales Growth
Sales to our top 5 customers in ’11 grew over 70% in ‘11.
Fastest growing beef jerky in Convenience Stores as of June ’11.
BRAND DESCRIPTION Dollar vol '11 $ % Chg
CONVENIENCE STORES CATEGORY
WILD RIDE COWBOY STRIPS
882,439,940
558,785
*Nielsen 52 Wk. Ending June '11 Convenience Store Sales.
6.7
747%
Amazon.com
Strong Customer - Distribution
Holiday Stores
Super America
Thorton’s
2 Year Use of Funds Plan
Total Funds Needed: $1,500,000 $1,000,000 Equity $500,000 Working Capital
Distribution Expansion
2 Year Spending Plan to expand distribution (shelf space) Adds an additional 25,000 plus Convenience Stores Investment delivers $9,000,000 in net sales in 2 years
Exit Strategy
Our exit strategy: In the next 24 – 36 months: Deliver sales in excess of $15 million Sell at a multiplier of 4 – 5 times top line sales Sale of organization valued at: $60 – 75 million
Proven Brand Transitions
Recently acquired snack and beverage brands Kellogg Co. (K) is taking the acquisitive route with its pending $2.7 billion deal for Pringles. General Mills also made a small deal, recently buying Food Should Taste Good Inc., to take advantage of the growth in snacks and natural products.*
Organizational Experience
Dean Mefford – Board Chair Over 45 years of CPG experience, former Pres. Ralston Purina Intl. and former President of Ocean Spray Jim Davis – CEO Over 25 years of cattle experience, creator of the patent and over 25 years of successful entrepreneurial company management.
Carl Goedjen – General Manager Over 20 years of sales and marketing experience from Frito-Lay, Pillsbury Co and Anheuser-Busch.
David Purser – Food Scientist 30 plus years of food research and development. Masters degree in Food, Animal Science and Chemistry.
Roger Bordeaux – CFO 40 plus years of managing banks, mergers and acquisitions.