Iconic Presentation v9...Iconic Brands Inc. OTCQB-ICNB (“Iconic”) develops, markets and...

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ICONIC BRANDS 2019 Presentation

Transcript of Iconic Presentation v9...Iconic Brands Inc. OTCQB-ICNB (“Iconic”) develops, markets and...

ICONIC BRANDS2 0 1 9 P r e s e n t a t i o n

DISCLAIMER AND FORWARD-LOOKING STATEMENTS

This Slide Deck PowerPoint Presentation contains only preliminary information regarding our Company and should be read in conjunction with the subscription agreement The Company and our officers

and representatives may from time to time make, "forward-looking statements" within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-

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similar references to future periods.

Examples of forward-looking statements include, among others, statements we make regarding: guidance relating to net income and net income per share; expected operating results, such as revenue

growth and earnings; anticipated levels of capital expenditures for the fiscal year; current or future volatility in the credit markets and future market conditions; our belief that we have sufficient liquidity to

fund our business operations as planned; expectations of the effect on our financial condition of claims, litigation, contingent liabilities and governmental and regulatory investigations and proceedings;

strategy for growth, product development, market position, financial results and reserves; strategy for risk management. Forward-looking statements are neither historical facts nor assurances of future

performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends,

the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict

and many of which are outside of our control.

Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and

financial conditions, continued volatility in the capital or credit markets; the adequacy of our cash flow and earnings and other conditions; developments and changes in laws and regulations.

Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly

update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

This Presentation is intended for general solicitation under RegD 506B but does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information contained herein has been

prepared by management of the company to assist interested parties in making their evaluation of the Company and does not purport to contain all of the information that a party may desire. In all cases,

interested parties should conduct and rely on their own investigation and analysis of the Company and the data set forth herein.

An offer of to buy these securities can only be made by obtaining the Company’s subscription documents and interested parties should only rely on the information contained in such memorandum.

Confidential and Proprietary Information. All information contained herein is the confidential and proprietary information of the Company and as such, cannot be disclosed, reproduced or distributed

without the prior written consent of the CEO of the Company.

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I CONIC

BRANDS I N

C .

Iconic Brands Inc.

Founded: 2005

Headquarters: 44 Seabro Avenue Amityville, NY 11701

Domicile: Nevada

OTCQB Symbol: ICNB

Common Shares Issued and Outstanding: 12,273,874 as of 7/15/19

Website: www.iconicbrandsusa.com

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ABOUT USIconic Brands Inc. OTCQB- ICNB (“Iconic”) develops, markets and distributes lifestyle product brands of the highest quality by capitalizing on the ability to procure and develop superior and unique products from around the world.

Based in Amityville, New York, Iconic was founded by Richard DeCicco, a seasoned beverage industry executive and innovator with over three decades of experience in the global beverage alcohol business. As Iconic looks ahead, it plans to expand into an array of markets with high growth potential, such as CBD Products, CBD Hemp Farms, Innovative Brands, and Direct-to-Consumer Brands.

BRINGING TOGETHER THE BEST LIFESTYLE PRODUCT BRANDS FROM AROUND THE WORLD

A N I N D U S T RY L E A D E R W I T H T H E H I G H E S T S TA N DA R D S

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ICONIC HISTORY OF RICHARD DECICCO

Richard DeCicco has over 34 years experience in the alcohol beverages industry, working with renowned brands across the globe. He maintains both professional and personal relationships with the heads of major liquor companies worldwide in addition to many Hollywood celebrities, publicists, agents and entertainment attorneys.

These relationships have been cultivated as a direct result of Mr. DeCicco’s heading of operations in areas such as national warehousing, distribution, and value added packaging. His resume includes working with brands such as J&B Scotch, Bailey ’s Irish Cream (both in the United States and Ireland), Stolichnaya Vodka, Skyy Vodka, Malibu Rum, Grey Goose Vodka and Jagermeister.

Rich’s knowledge and experience in this industry are invaluable assets to Iconic Brands as it continues to grow and engage global partners.

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I c o n i c i s u n d e r c o n t r a c t w i t h U n i t e d S p i r i t s , a f e d e r a l l y - l i c e n s e d i m p o r t e r a n d

d i s t r i b u t o r o f a l c o h o l i c b e v e r a g e s .

I c o n i c B r a n d s i s a l s o u n d e r c o n t r a c t w i t h D a n K a y , w h i c h m a i n t a i n s a N e w Y o r k S t a t e

w a r e h o u s i n g l i c e n s e f o r a l c o h o l i c b e v e r a g e s .

ALCOHOL

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Sales of Ciroc saw transformative growth after it started a joint-venture with Sean Combs in 2007. Within five years the struggling brand saw sales increase from 50k cases in 2007 to 2.1m by 2012.

Another success story lies with Bethenny Frankel, who sold her SkinnyGirl Cocktail brand to Fortune Brands’ Beam Global for an estimated $100M in 2011, while retaining the name rights. A premium was likely paid, as the brand was selling ~100k cases annually.

In 2017, George Clooney sold his Tequila company Casamigos for up to $1B total to Diaego. The brand was projected to do around $55M in sales for 2017. The power of the brand was a driving force in the premium that was paid.

Sammy Hagar started distil l ing tequila at his home in Cabo San Lucas, Mexico, in 1996. By 2006, he had sold 140k cases of Cabo Wabo for the year, culminating in an 80% stake to GruppoCampari for $80M. Deal was valued at 11.8x expected 2007 EBITDA.

Celebrity Branding Case Studies

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Successful celebrity alcohol brands have seen acquisitions with significant premiums as shown above.

Christie is the brand spokeswoman for Bellissima, an all-natural organic/vegan Prosecco.

Christie has appeared on over 500 magazine covers worldwide, served as a spokeswoman for CoverGirl, and performed on Broadway, in television, and in fi lm.

The Bellissima offerings include PROSECCO DOT BRUT, SPARKLING ROSÉ WINE, and ZERO SUGAR Sparkling Wine• All of these offerings are certified organic, vegan, and

gluten free.

Bellissima / Christie Brinkley

Iconic Brands is in discussions with:• Celebrity Cruise Lines.• QVC to have Christie Brinkley promote and sell

Bellissima on their platform.

Iconic just launched it ’s Direct-To-Consumer online sales of Bellissima through SplashWines.com

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At BiVi, we believe a vodka should get its taste from how and where it ’s made. BiViVodka is made from the finest semolina wheat grown out of the rich volcanic soil and pure mountain spring water of Sicily.

The CraftBiVi is crafted by Master Distiller Giovanni La Fauci, who began his career when he was only eleven years old.

BIVI VODKA by CHAZZ PALMINTERI

Loosen Up Basil Martini

Never Wear Brown After Dark

Sicilian Grape Sour

A Bronx CockTale

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Partners & Distribution ChannelsIconic distributes all of their products through

United Spirits Inc., a variable interest entity of

Iconic. United Spirits distributes and wholesales Iconic’s products, in

addition to being their licensed importer and wholesaler. • Distr ibution Agreement provides United with the exclusive r ight through 2025 to sel l

our products for an agreed distr ibution fee ($1/case).

• United holds al l state and federal l icenses to distr ibute Iconic’s products.

One of United Spirits’ distributors, Southern Glazer ’s

Wine and Spirits LLC, purchased a $2.1 million order

during the fourth quarter of 2017 (18 months ago)

for sales to Publix Supermarkets. • Order was related to a hol iday program, and it was authorized for al l of

Publ ix’s seven markets: Flor ida, Georgia, Tennessee, Alabama, North

Carol ina, South Carol ina, and Virginia.

• The program featured Bel l issima Prosecco and Sparkl ing Wines in al l

Publ ix stores for the 2017 hol iday season.

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OFFICIAL PARTNER HOOTERS SPIRITS PRIVATE LABEL

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Iconic Private Label wil l supply national restaurant chains, consumer good companies and national retailers with the same high quality products and branding of al l Iconic brands. Private labeling wil l be a s ignificant source of revenue growth for Iconic.

Iconic Brands provides ful l service turnkey private labeling enabled expertise in product sourcing, product development, brand development, marketing and distribution.

Iconic wil l private label the following spirits for Hooters:• Hooters Vodka• Hooters Gin• Hooters Rum• Hooters Tequila

• Hooters American Whiskey• Hooters Heat, a Cinnamon Flavored Whiskey

• Iconic private label Hooters Spirits wil l launch as the well for al l 400+ Hooterslocations.• NASCAR event in August, Chase El l iott wil l be driving the Iconic Spirits Car. • The August initial launch wil l take place in Tennessee, Georgia, Florida, and Texas.

These four locations account for 50% of Hooters locations. • This wil l be fol lowed by distribution at retai l locations across

the U.S.

PRIVATE LABEL—HOOTERS

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POTENTIAL PRIVATE LABEL OPPORTUNITIES

• Iconic Brands is in preliminary discussions with Romano's Macaroni Grill to develop a private label premium wine for them.

• Iconic is also in discussions with Cheesecake Factory to develop a line of cream dessert liqueurs.

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I c o n i c i s u n d e r c o n t r a c t w i t h U n i t e d S p i r i t s , a f e d e r a l l y - l i c e n s e d i m p o r t e r a n d

d i s t r i b u t o r o f a l c o h o l i c b e v e r a g e s .

I c o n i c B r a n d s i s a l s o u n d e r c o n t r a c t w i t h D a n K a y , w h i c h m a i n t a i n s a N e w Y o r k S t a t e

w a r e h o u s i n g l i c e n s e f o r a l c o h o l i c b e v e r a g e s .

ALCOHOL

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CBD/Hemp

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CBD-Hemp-Cannabis Has Big Alcohol’s Attention In July of 2018, Heineken (NAS: HEINY) launched Hi-Fi Hops, a cannabis-only beverage under its Lagunitas brand. • Beverage has the taste of beer but does not contain alcohol, has launched in multiple dispensaries in

Cal i fornia. • Currently has two offer ings: one version with ten mil l igrams of tetrahydrocannabinol (THC) , and a

hybrid version containing f ive mil l igrams of THC and f ive of CBD.

Constellation Brands (NYSE: STZ) announced in 2017 it would partner with Canopy Growth Corporation (NYSE: CGC) to research possibility of developing a cannabis brew.• Just before that transaction, Canopy acquired Hiku Brands, a retai l - focused craft cannabis producer for

CAD$269 mil l ion.

In August of 2018, Molson Coors Canada announced a joint-venture with The Hydropothecary Corporation (TSX:HEXO).• Hydropothecary is a leader in the Canadian Medical cannabis space, the JV with Molson

intends to develop a l ine of non-alcoholic, cannabis infused beverages.

AB InBev (BUD) announced in December of 2018 that it would partner up with Tilray (TRAY) to research non-alcoholic drinks containing cannabis. • Partnership wil l entail the two companies investing $100 mil l ion to research

the potential of these new products.

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Green Grow Farms Inc. (GGFI)Green Grow Farms is a wholly owned subsidiary of Iconic Brands Inc.

Constellation Brands (NYSE: STZ) announced in 2017 it would partner with Canopy Growth

Corporation (NYSE: CGC) to research possibil ity of developing a cannabis brew.

Green Grow Farms enables farmers to increase per acre profits compared to crops

they currently grow.

Green Grow Farms’ Turn-Key

Grow Op solution provides

funding as well as:• Procurement of Required Grow Licenses

• Off-Take/Processing Agreement

• Hemp Seed and/or Plants

• Growers Guidance

• Step by Step Instructions

• Training and Support

Green Grow Farms is a fully licensed

New York State Industrial Hemp

Growing Operation.

NYS License #Hemp-G-000373

Tennessee

Year 1

100 Acres

New York

(Long Island)

Year 1

2019 Test

Grow

1 Acre

Year 2

2020

50-100 Acres

Our farms for

the 2019

season: • Calverton, NY

up to 1 acre

• Tennessee 100

acres

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GREEN GROW FARMS INC.

• HEMP FARMS GROWN FOR CBD CULTIVATION• Direct-To-Consumer CBD Tinctures

Hemp is one of the easiest and most sustainable crops that can be grown. Unlike major cash crops such as corn or wheat, hemp

can be grown in dense clusters that require very few pesticides or herbicides as well as a minimal amount of fertilizer.

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• BDS Analytics has projected the collective market for CBD sales to breach the $20 billion mark in the United States by 2024.

• The forecast includes an array of products from industries such as cosmetics, health products, food and beverage, pet products, skin care, and pharmaceuticals.

• They also note that 66% of hemp-derived CBD consumers in the US believe that cannabis should be legal at the federal level.

• Since 2014, CBD product sales in dispensaries have grown at a faster rate than overall sales in dispensaries (BDS).

CBD Market Opportunity

$0

$5

$10

$15

$20

$25

1/1/2018

1/1/2019

1/1/2020

1/1/2021

1/1/2022

1/1/2023

1/1/2024

$1.9B $2.8B$4.2B

$6.2B

$20.0B

$13.5B

$9.1B

Total CBD Sales Projections (billions)

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ICONIC BRANDS INC. - GREEN GROW FARMS INC. COMBINED REVENUE PRO FORMAS 2020 ESTIMATES

*Assumes expansion of Bell issima distribution channels and rollout of Hooters private label.**Assumes sale of CBD isolate from 75 acre hemp grow.

ICNB

Alcohol

Iconic Brands

~$7.5M*

ICNB

Green Grow

Farms

~$7.5M**

Total

~$15.0M

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