East Coast Leader in Pastured, Nitrate-Free Meats

The Company● Ithaca Processing Facility sources

local, pastured animals to process into nitrate-free meats

● New York Pastured Pork● New York Pastured Turkey● Retail Store in Ithaca, NY● Wholesale Products are available

from Maine to Virginia● Online store and other Direct sales

are growing

Business Model● The Piggery sources from pasture based farms in the Finger Lakes

○ The largest supplier is The Piggery Farm Inc

● Animals are slaughtered at a local slaughterhouse● The Piggery Inc receives half animals at its Ithaca location● Animals are butchered, processed, smoked and packaged onsite● Boxed, labelled product is sold to distributors● Distributors sell to retailers and foodservice companies● Direct Sales Channels

○ Better Margins○ Ithaca Retail Shop○ Online Sales○ Automated Retail - Q3 2016

Key Partnerships

Distributors● Regional Access● Albert’s Organics● Baldor● Finger Lakes Family Farms● Four Seasons Produce● Gourmet Guru● Mike’s Organic Delivery● Rustic Roots Delivery

Retailers/Restaurants● Park Slope Co-op● Fairway Markets● Mrs. Green’s● Gourmet Garage● MOM’s Organic Market● Guckenheimer● Greenstar Co-op● Hanover Co-ops● Mei Mei Restaurants● Frank’s Gourmet Hot Dogs● Zingerman’s Deli

The Opportunity

The Piggery has established itself as the market leader in its category

Several strategies exist to increase profitability and sustainability:

● Turn the “waste” stream from meat processing into high quality pet foods● Enact process changes to increase yields and efficiencies of meat processing● Build new direct sales channels● Conduct feed efficiency research to reduce farm costs● Take advantage of federal and state grant funding

Funding OptionsBank Loans

● Not an option if you don’t have collateral

Traditional Equity Funding - Investment Banks

● Could change the priorities of the company

Crowd Equity Funding

● Local people investing in a local company with shared priorities● Creates local jobs● The community benefits from company success

How Funds will be Used● As matching funds to attract Federal and State grant money

○ Multiplier effect

○ Example: USDA Value Added Producer Grant. Up to $250,000 is available for marketing but the producer has to put in an equal amount to what they receive as a grant

● Stronger balance sheet will allow for equipment loans○ Pet food line will make better reuse of “waste” stream○ Second smoker will double capacity and increase efficiency○ Meat cutting process changes can reduce “drip loss” and increase yields 10%

● Reinvest in farms○ Perform research on how to maximize the value of pastures in livestock feeding○ Provide credit in the form of feed accounts

Company Differentiation● First to market with Nitrate-Free, New York Pastured pork in attractive retail

packaging● Strong relationship with regional distributors and retailers● Barrier to entry is very high for smaller local producers● National brands struggle to compete with local when it is an option● Vertical integration from working closely with partner farms gives us quality

control from piglet to labelled package● Strong Social Media Presence

○ 6500 Facebook Likes○ 2200 Twitter Followers○ 1000 Instagram followers

The Team

Heather Sandford● BS in Engineering, Cornell University 1997● Head of sales and Marketing● Achieved an average of 85% annual sales

growth from 2008 through 2015● Guru of Sales and Public Relations● Coordinates Sales, Production and

Fulfillment● Constant Communicator● Head of HR

Brad Marshall● BS in Biology, Cornell University 1997● Technical Guru● Coordinates Farm production and pipeline● Designer of Product Line● Head of HACCP● Designer of Meat Processing Facility● CFO

Timeline2008: Began Sales at Ithaca Farmers Market

2010: Opened retail meat case at 423 Franklin St in Ithaca

2013: Completed financing round for buildout of USDA processing facility

2013: Opened expanded meat case and micro grocery at Ithaca location

2014: Opened USDA processing facility

2015: Shipped $1 million in product to wholesalers, achieved profitability on an EBIDTA basis

Q1 2016: Achieved breakeven cash flow

Financials

2014 2015 2016 2017 2018 2019 2020

Total Sales $1,551,000 $2,439,000 $3,070,000 $4,047,500 $5,388,125 $6,838,906 $8,821,939

Total COGS $1,148,000 $1,612,000 $1,828,370 $2,414,189 $3,217,848 $4,087,565 $5,276,596

Labor $390,000 $531,000 $687,801 $881,802 $1,133,521 $1,381,545 $1,778,840

Gross $13,000 $296,000 $550,569 $803,609 $1,201,257 $1,646,896 $2,224,643

Overhead, Marketing, Management Salaries $178,000 $193,000 $282,000 $335,000 $378,000 $405,000 $445,000

EBITDA -$177,000 $75,000 $268,569 $468,609 $823,257 $1,241,896 $1,779,643Debt, Taxes, Depreciation and Amortization $198,000 $198,000 $198,000 $198,000 $198,000 $198,000 $198,000

Earnings -$375,000 -$123,000 $70,569 $270,609 $625,257 $1,043,896 $1,581,643

Future Directions● Increase Margins

○ Increase throughput and labor efficiencies at production facility○ Build abattoir

■ Reduced slaughter costs■ More efficient process■ Make better use of secondary products like pork skin, bones and lard

○ Increase proportion of direct sales■ Online sales■ Automated Vending■ Group Purchasing

○ Work with partner farms to reduce production costs○ Increase value added production

■ Soups, chilis■ Bacon dressing

Bottom LineThe Piggery is the leader in regionally sourced, pastured, nitrate-free meats for retail and wholesale markets.

The management team has a decade of experience in raising livestock, meat processing, packaging, HR, and logistics. Management is focused on increasing margins and increasing sales.

The business is uniquely positioned competitively - smaller processors can’t compete with the processing and packaging acumen and national labels can’t compete with the local and pasture raised claims.

An investment from the crowd will allow the company to invest in competitiveness and sustainability while keeping jobs and profits local.

ContactsHeather Sandford - heather@thepiggery.net

Brad Marshall - brad@thepiggery.net

The Piggery

423 Franklin St

Ithaca, NY 14850