Presentation for new investors april 12 2010
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Presentation to New Investors April, 2010 David Glasser Founder, CEO
description
Transcript of Presentation for new investors april 12 2010
Presentation toNew Investors
April, 2010
David GlasserFounder, CEO
Mission: Deliver convenient products to help parents make healthier food choices
for their young children
Simple Ideas
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healthiest juice convenient packaging
baby aisle brand parents can trust
First Juice®: The Product
100% apple juice
Sugar per 8 oz.
serving
Less Sweet
12 g 27 g
Vitamin A
Vitamin C
Vitamin D3
Calcium
The Target Consumer & Unique Brand Positioning
Healthiestformula
Nurtureshealthyhabits
ConvenienceAbove averageincome
6 months – 6 years
Proactive and health-
conscious
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Training Wheels for Healthy Eating®
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2008-2009
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SPINS DATA
BABY FOOD Channel: Natural Products Supermarkets >$2MM
Source: SPINSscan NaturalCurrent Period: 52 and 24 Weeks Ending 2009-Dec-26
Metric Definitions Prior Period: 52 and 24 Weeks Ending 2008-Dec-27Prior / Prior Period: 52 Weeks Ending 2007-Dec-29
Market: Total US
Brand to SubcategoryRanked by Dollar Sales for
52 Weeks Ending 2009-Dec-26 2009 2008 2007 2009 2008 2007 BABY J UICES $317,259 $246,218 $184,653 100.0% 100.0% 100.0% FIRST J UICE $129,532 $48,046 na 40.8% 19.5% na
HANSENS J UNIOR J UICE/J UNIOR WATER $94,635 $85,509 $57,758 29.8% 34.7% 31.3% EARTHS BEST $84,904 $104,223 $108,205 26.8% 42.3% 58.6%
BABYS ONLY ORGANIC $8,095 $8,358 $15,723 2.6% 3.4% 8.5% GERBER $93 $82 $254 0.0% 0.0% 0.1%
GERBER ORGANIC na na $2,713 na 0.0% 1.5%
Current Dollars Cur Cat $ Share
Took 32 Share Points from Earth’s Best;1.6 Share Points from Gerber (to zero);
Grew the category 72% in 2 years
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Total Bottles Sold at Retail By Quarter
Kroger, H-E-B… Target, Giant Eagle, Harris Teeter
2010Q1A Q2A Q3A Q4A Q1A Q2A Q3A Q4A Q1A
BRU 22,418 43,523 55,508 50,783 79,369 65,961 80,613 43,253 61,200WFM 18,573 28,014 28,779 22,580 31,427 31,971 31,471 30,346 33,043TGT 0 17,086 18,309 14,946 16,077 23,528 21,308 19,578 17,528TRU 0 0 8,742 13,278 13,937 18,520 24,013 18,232 19,400Diapers 0 0 4,122 10,938 15,252 18,534 18,330 20,124 21,222ALL 40,991 88,623 115,460 112,525 156,062 158,514 175,735 131,533 152,393
357,599 621,844These chains represent approx 67% of Q1 2010 shipments.
2008 2009
What Have We Learned About Our Brand?
HealthiestFormula:
organic, F/V; low sugar
NurtureshealthyHabits:Unique flavors
ConvenienceExtremely Important
Above averageincome
We dominate 6 months –
2 years;We “play” in 2-6 years; NOT over 6
Proactive and health-
conscious
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Actual Consumer & Their Perceived Key Points of Difference
First Juice was perceived asthe healthiest children’s juice brand in research conducted this month.
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Key Equities Among Users Key Equities among Non-Users
HealthyFruit and Vegetable JuicesLow SugarUnique Flavor CombinationsSippy TopsOrganic
HealthyFruit and Vegetable JuicesLow SugarUnique Flavor Combinations
Barriers to Purchase
PriceAwarenessAvailabilityLacks convenient “everyday” on the go single (Juice Box)
Strengths and Barriers Summary from Research
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What Have We Learned About Our Business?
1. Current profit margins are unattractive.
2. The “under age five market” is our start, not our destination.
3. .Juice boxes are NOT our enemy. There is a simple reason
why they are so pervasive.
4. Mom’s purchase behavior and price sensitivity differs
depending on: First Time or Veteran, and what type of store
she is in.
5. Distribution density (ease of availability) is critical.
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2011: Gross Margin Improvement
Reduce Juice Cost-4% more to -19%;
Reduce Vitamin Cost-Calcium
Raise Price on 8 oz;Repackage 32oz.
Margins 2011; Pick-up8z 40% vs. 30%32z 50% vs. 29%4z 42%
w/del’y:36%-40%-35%** Freight scales!! **
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2011: Market Op By Age, Mom & Child’s Thinking
6m+ “1st” 12-48m 24m – 5 years 5 years+ From my MY bottle, “I can handle it” Grade sippy cup like mom’s Mom Saving $ School
Babies R Us – Diapers.com – Whole Foods – Grocery Store30m = 79% of 2nd births
6-6.75oz Box or Pouch
Non-users segmented out a “baby juice” grouping in which First Juice was assigned, this suggests that if mom has not discovered and tried First Juice before her child’s first birthday, she may dismiss the brand as her child had “outgrown” the need for a “first juice”.
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Life Progression
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Results from “Feet in the Street”
Store Item ID 22 23 24 25 26 27 28 29 30 31 TotalPhiladelphia Apple Carrot 8. 3 3 3 2 4 10 2 2 9 4 42
Banana Carrot 8. 6 1 2 4 1 8 5 7 5 6 45Apple Carrot 32 0 0 0 0 0 0 0 0 0 0 0Banana/Carrot 32 0 0 0 0 0 0 0 0 0 0 0
Philadelphia Total 9 4 5 6 5 18 7 9 14 10 87
Banana Carrot 8. 12 5 4 11 7 5 9 7 6 5 71Apple Carrot 32 0 0 0 0 0 0 0 0 0 0 0Banana/Carrot 32 0 0 0 0 0 0 0 0 0 0 0
Pittsburgh Total 21 10 13 17 16 9 13 14 12 9 134
Store Item ID 18 19 20 21 22 23 24 25 26 27 TotalPhiladelphia Apple Carrot 8 6 6 6 12 14 22 10 11 4 6 97
Banana Carrot 8 5 3 4 0 0 2 11 8 3 3 39Apple Carrot 32 7 11 5 1 0 5 6 5 14 6 60Banana Carrot 32 3 9 5 9 3 1 5 5 8 6 54
Philadelphia Total 21 29 20 22 17 30 32 29 29 21 250
Banana Carrot 8 3 0 1 2 3 8 5 5 6 2 35Apple Carrot 32 2 4 3 2 5 7 3 10 5 11 52Banana Carrot 32 2 5 5 1 8 6 2 2 8 6 45
Pittsburgh Total 14 9 12 7 26 24 14 23 29 22 180
2009
2010
Shift Marketing & Street Sales focus to local grassroots efforts
in key marketsPauli’s
Norwalk, CT
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Mom Blog Published Feb 6, 2010
“Honest Kids juice, is the second toddler drink that we keep stocked in our house.”
“…organic thirst quenchers are half the sugar…”
“…taste great…your toddler will love them.”
“They are inexpensive, and you should be able to find them in your local grocery store or Wal-Mart.”
http://glutenfreetoddler.blogspot.com/
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Mom Blog Published Feb 6, 2010
“…naturally lower in sugar, tastes great and your toddler will love it.”
“…organic, healthy… Bisphenol-A (BPA) free… conveinent…”
“First Juice tends to be a little more expensive that the average juice…”
“In our house, First Juice, is always around.”
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Juice Competition in Grade School
Kraft
Coke’s Minute Maid Div.
Private Label
Coke Nestle
Apple & EveOpen Niche: Unique Flavors;
Organic; “New, Exciting, Different”
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Make First Juice accessible to all Moms, for everyday use…
… while retaining what is unique & wanted.“…unique flavors; tastes good; something new”
2010: Q4 Launch 4z Juice boxes (x3); repack 32oz; Strengthen position with First Time Moms!
2011: Q4 Launch “FJ2” in “6oz” (x3 with 2 new flavors); This begins pursuit of kids age 5+; Start pursuit of Int’l; Secure & Lock-in allegiance of FTMs by supporting dist at WFM and by adding distribution in “Little Gyms”
2012: Intensify pursuit of 5+ and Int’l2013: Intensify pursuit of 5+ and Int’l
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Sales Plan BreakoutSales By Account 2010 2011 2012 2013
BRU/TRU $521 $716 $985 $1,236Sales thru Distributors (UNFI) $385 $632 $848 $1,102
Diapers/Amazon $158 $221 $311 $384Kroger $90 $107 $140 $180
HEB $60 $76 $96 $116Subtotal "Known Accts" $1,214 $1,752 $2,380 $3,019
100% 96% 74% 66%
Export $300 $510Sales by "FJ Dist, Inc." $81 $221 $347
New Major Acct #1 $200 $275New Major Acct #3 $250New Major Acct #2 $100 $200
Subtotal "Unknown Accts" $0 $81 $821 $1,5820% 4% 26% 34%
Total All $1,214 $1,833 $3,201 $4,600
Time Value
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Expenditure Breakout – See Handout2008
Actual2009
Actual 2010P 2011P 2012P 2013PGross Sales $1,144 $2,011 $1,214 $1,834 $3,201 $4,601Net Sales $1,066 $1,728 $1,042 $1,649 $2,936 $4,231
Total Cost of Goods Sold (incl Del'y) $1,134 $1,641 $874 $1,036 $1,825 $2,535
Gross Profit Margin $ (68) $87 $168 $613 $1,111 $1,696
EXPENSESGeneral & Administrative $902 $683 $513 $490 $477 $539
SellingSales Rep costs $65 $129 $142 $263 $336 $349Broker Fees $62 $60 $48 $45 $65 $82
Marketing & Product DevelopmentSlotting Allowances $76 $158 $0 $40 $40 $25Consumer Marketing $284 $183 $71 $114 $229 $275Sampling $92 $6 $10 $20 $24Trade Promotions (non-discounts) $65 $138 $99 $134 $126 $147Product Development $117 $21 $19 $18 $18 $18Payroll - Marketing & Prod Dev $93 $104 $41 $38 $38 $40Payroll - Operations/Logistics $142 $206 $50 $53 $56 $58
Total Expenses $1,805 $1,774 $990 $1,205 $1,404 $1,557
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Use of Proceeds
$1,350 Funds needed through August, 2011$75 Launch 4oz$25 Prepare to launch Export
$150 Create Distribution Density$250 Create Age 5+ Brand Extension$500 Subtotal
$450 Operating expenses
$400 A/R, Fin Goods & Raws Carry Avg/Mo
$1,350 Total
Shared vision: parents and children choose healthier foods and beverages
The Team & Culture
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CEO & Founder 20 yrs beverage sales, operations
and start-up experience
VP Marketing14 yrs marketing,
branding, new product development
& sales experience
VP Business Development
16 yrs R&D, new platform development, marketing,
and licensing
VP Finance 20 yrs accounting
and finance experience
David Glasser Cheryl Thomas Julie Bratton Robert Klausner
passionate
Live the missionHonest, genuine
quick & flexibleinnovative
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The Big Opportunity
$27 Billion Market for Kids food & drink, Largest segment is beverages-----------------------------------------------------------------------------------------------
“Kids’ beverages should offer a health benefit that mothers can clearly see as relevant to their childrenand one that is easy to understand.” -----------------------------------------------------------------------------------------------
“Ideally your product should be as natural as possible…
… should be one that mothers accept and understand…”-----------------------------------------------------------------------------------------------
First Juice is a BRAND that can COMPETE IN THIS MARKET
First Juice was perceived as the healthiest children’s juice brand
in research conducted this month.
Common Stock
Preferred A
Preferred B
Preferred C
Preferred D
Stock Option Plan
Warrants
Shareholding Structure
$2.2mm
$2.3mm
$.9mm
$ (millions)
6
5
3
2
1
4
Q3 2007
Q4 2008
Q2 2009
$5.6mm Total to
date
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How should I think about an investment in First Juice?
Share price in 2010 $0.443Est Shares in 2016 19.5mm
$ Volume in 2016 $10mm $15mm $20mm $25mmMultiple of Sales
3.0 $1.54 $2.31 $3.08 $3.853.5 $1.79 $2.69 $3.59 $4.494.0 $2.05 $3.08 $4.10 $5.134.5 $2.31 $3.46 $4.62 $5.775.5 $2.82 $4.23 $5.64 $7.056.0 $3.08 $4.62 $6.15 $7.69
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How should I think about an investment in First Juice?
$ Volume in 2016 $10mm $15mm $20mm $25mmMultiple of Sales
3.0 247% 421% 595% 768%3.5 305% 508% 710% 913%4.0 363% 595% 826% 1058%4.5 421% 681% 942% 1202%5.5 537% 855% 1173% 1492%6.0 595% 942% 1289% 1636%
The Timing is Right
Unique Brand Positioning
Team Expertise;
Brands, Product,
Innovation
Making Smart “Mid-course” corrections
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Proven market acceptance
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Any Questions?
Series E Preferred:
•$5.1 MM Pre money (~$0.44 per share)•Capital Raise = $1.35 MM min / $2.0 MM max•Bridge round proceeds count (~$300k)•Minimum investment $25,000•Targeted close = 5/28/10
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IRI DATA
ITEM DESCRIPTION PARENTDollar 52-
wksDollar 52-wks PY
ACV Wtd Dist 52-wks
ACV Wtd Dist 52-wks
PYGERBER NESTLE S.A. (SWITZERLAND) 74,781,820 77,231,183 98 98
BEECHNUT MILNOT CO 2,806,854 3,485,437 45 44EARTHS BEST HAIN CELESTIAL 877,887 858,131 13 12
FIRST JUICE FIRST JUICE INC 704,799 100,700 18 3PRIVATE LABEL PRIVATE LABEL 339,132 466,500 3 6
NATURES GOODNESS TREEHOUSE FOODS 246,641 401,469 5 12
