True Drinks Holdings Inc (PINK:BAZI)

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Investor Presentation November 2012

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True Drinks Holdings Inc (PINK:BAZI)

Transcript of True Drinks Holdings Inc (PINK:BAZI)

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Investor Presentation

November 2012

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Information in this presentation is disclosed on an “as is” basis, with no representations or warranties, express or implied. In no event will True Drinks, Inc. or its officers, directors, employees, stockholders, owners, affiliates or agents be liable for any damages arising out of any use of the information in this presentation. The presentation may include statements regarding True Drinks’ business that are not historical facts but are forward-looking statements that involve risks and uncertainties which speak only as of the date made. These statements are only predictions based on True Drinks’ current expectations and projections about future events. There are important factors that could cause True Drinks’ actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. True Drinks is under no obligation, and expressly disclaims any such obligation, to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

SAFE HARBOR STATEMENT

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Healthy Beverage Company primarily directed towards kids

Leverage initial licenses with Disney and Marvel to create fun at the Point of Sale

Flagship AquaBall™ brand introduced in July 2012

In only one quarter, already selling in Walmart, Rite Aid, Safeway and many other retailers. Rite Aid re-ordered 20,000 cases in just 10 days.

Experienced board and management team led by Chairman Tim Lane, who was previously CEO of Pepsi Foods International, and CEO Lance Leonard, former Director of Global Sales at Nestle Waters

Merged with Bazi International, Inc. (Ticker symbol: BAZI), in October 2012

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Packaged Facts, a leading publisher of market research in the food, beverage and consumer packaged goods sectors for 50 years, reported the following in connection with the kids’ food industry:

Kids’ Food is on the brink of a breakthrough and is expected to grow 40% from $10 billion in 2010 to $14 billion in 2015. Beverages is the #2 category in kids’ food.

Publisher of Packaged Facts, Don Montuori says “We forecast that the next several years going into 2015 will mark a period of tremendous growth in the sales and development of food and beverage products marketed and designed for children.

In 2010, 40% of the kids’ food market contained some better-for-you element, a rapidly growing segment.

Through Formulation, Packaging, and Marketing, a kids’ food should ideally have:

Taste Kids Love Nutrition Kids Need Entertainment Kids Crave

Huge Potential in Kids’ Beverages

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CONVENIENCE - JUICE

DRINK BRANDS 2011 SALES*

MINUTE MAID 252,533,790$

TROPICANA 186,468,095$

OCEAN SPRAY 148,108,420$

BUG JUICE 92,525,420$

SOBE 90,749,000$

V8 79,010,213$

FUZE 60,008,407$

SNAPPLE 56,808,042$

BRISK 56,334,684$

TUM-E YUMMIES 44,478,552$

* Total US - Scantrack - Convenience Channel

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Taste Kids LOVE!

Naturally sweetened with Stevia

No Sugar Added

Nutrition Kids NEED!

Vitamin Enhanced

No Artificial Colors

No High Fructose Corn Syrup

Entertainment Kids CRAVE!

Licensed by Disney and Marvel

First-To-Market of its kind

INTRODUCING:

NEW 0 Calorie Formula Arriving November 1!

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True Drinks, Inc. has entered into a three-year licensing agreement with Disney Consumer Products, Inc. through March 2015.

License covers a wide range of Disney’s line of characters, such as Disney Princesses, Cars, Toy Story, and upcoming movies.

As reported in License! Global’s May 2011 Top 125, Disney has long been the top global licensor reporting $28.6 billion in retail sales of licensed products worldwide in 2010.

As reported in The Licensing Letter, the Disney Princess line alone accounted for $1.725 billion in retail sales in the US and Canada in 2010, the top producing character property.

Disney Consumer Products, Inc. has dedicated salespeople that work with top retailers to assist Company with securing shelf space and with long-term sales objectives.

LICENSE AGREEMENT: DISNEY

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True Drinks, Inc. has entered into licensing agreements with Marvel Entertainment that run through the end of 2013.

Licenses cover Marvel’s The Amazing Spider-man, Classic Spider-man, Classic Avengers and Marvel’s Super Hero Squad.

As reported in License! Global’s May 2011 Top 125, Marvel ranks sixth in global licensing reporting $5.6 billion in retail sales of licensed products worldwide in 2010.

The Amazing Spider-Man is in Tier 1 programs at major retailers in the Fall of 2012, including Walmart and Rite Aid.

LICENSE AGREEMENT: MARVEL ENTERTAINMENT

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THREE-STAGE LAUNCH STRATEGY

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Pre-Launch 5/1 to 8/31/2012

Test runs at major targeted retailers -Walmart, Safeway.

Assemble Management Team and Board of Directors.

Develop Zero Calorie,

No Sugar Formula.

Conduct focus groups and consumer surveys.

Initial Launch 9/1 to 12/31/2012

Expand retailer programs based on test results.

Launch Regional Broker Network in the West.

Expand reach with 2nd regional manufacturer.

Build out marketing program/websites/media.

Full Launch 2013

Execute shelf programs at 25,000+ retail locations.

Expand to Nationwide

Broker Network.

Full-scale marketing efforts to build brand awareness.

Achieve cost savings through supply chain optimization.

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SALES AND DISTRIBUTION STRATEGY

Securing national distribution through the direct to retailer distribution strategy with key national accounts, such as Walmart, Rite Aid, and Safeway. (Completed 10/15/2012)

Joint sales meetings with Disney and Marvel sales teams with major Direct-to-Retailer accounts in 2012 to secure planogram space for 2013.

Creation of a Broker Network focusing regionally beginning in the fourth quarter of 2012 for deeper penetration in the West. Broker Network to be expanded with production capabilities. (Completed 10/27/12)

Distribution to the convenience channel including the two largest convenience store distributors in the US with McLane Company, Inc. servicing over 57,000 outlets and Core-mark servicing 29,000 retail locations.

Alternative markets to include schools, sports venues, fast food restaurants, and export markets.

We plan to explore and capitalize on international markets moving into key growth markets and international retailers.

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True Drinks, Inc. has assembled an impressive Board of Directors with over 100 years of combined experience at executive levels at the world’s largest beverage and consumer packaged goods companies, including PepsiCo and Nestle Water.

True Drinks’ Management Team has over 60 years of beverage industry experience and is poised to take advantage of True Drinks’ tremendous opportunity.

Our Board of Directors and Management Team have extensive experience with both early stage and mature companies and have been formed to support long-term, profitable growth.

LEADERSHIP: BOARD AND MANAGEMENT

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Timothy Lane Chairman

Former CEO of PepsiCo Restaurants International. Guided the company from 250 stores generating losses to a 2,500-store network generating $2.5 billion in revenue and over $200 million in profit within six years.

Served as Chairman, President and CEO of Holiday Inn Worldwide, a division of Bass PLC consisting of 2,300 hotels generating $8 billion in revenue.

Began his career as a consultant for Touche, Ross and Company before joining Masonite Corporation as a division general manager.

Received BS in accounting from University of Dayton and an MBA from the University of Chicago.

Lou Imbrogno Director

Former Senior Vice President of Worldwide Technical Operations for PepsiCo North America and PepsiCo Beverages International.

Responsible for Pepsi-Cola’s worldwide beverage quality, concentrate operations, research & development and contract manufacturing.

In 40 years with PepsiCo, served in a variety of field operating assignments, as well as various staff positions at headquarters.

Native of New York. Graduated from Westchester Community College and received a degree from the Wharton Executive Program.

BOARD OF DIRECTORS

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Carl Wistreich Director

Former Owner and CEO of L&B Truck Services, a distributor and maintenance and repair services company for heavy duty trucks and replacement part in the Northeast US.

Previously, Senior Vice President at C&S Wholesale, the largest distributor of food and related products to grocery stores in the US with approximately $20 billion in annual sales.

Had P&L and oversight responsibility for divisions generating over $3 billion in revenue with 2,500 employees.

Former corporate attorney with Skadden, Arps, Slate, Meagher and Flom, a major New York City based law firm.

Holds a J.D. from New York Law School and a BA from Colgate University.

BOARD OF DIRECTORS

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Lance Leonard Chief Executive Officer

22 years of consumer product experience with M&M/Mars and Nestle Waters.

During the 1990s, worked in the confection division of M&M/Mars, holding a series of sales and management roles in the US.

During 2000s, managed national account teams and division sales for the Western US for Nestle Waters.

Appointed Director of Global Customers at Nestle Waters developing their go-to-market strategies in emerging markets.

Dan Kerker Chief Financial Officer

Corporate finance, including SEC reporting, audits, P&L management, budgeting, business plan development, accounting, operations, contract administration, and capital raising activities.

Early stage company experience as CFO of Regeneca, Inc. and Environmental Packaging Technologies including the completion of a reverse merger into a failing publicly trading company for an early stage growth company positioning itself for an initial public offering in 2011.

Director of Finance for Anheuser-Busch Sales of Los Angeles overseeing all aspects of finance and administration with sales exceeding $200 million in 2009.

MANAGEMENT TEAM

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MANAGEMENT TEAM

Marketing

Vice President Strategy and Network Development and President of Retail for Bazi, Inc.

Senior Manager of Network Development for Product Partners, LLC.

COO for Management Consulting Firm, Educational Leadership, Los Angeles.

Kevin Sherman

15 years experience delivering innovative e-commerce and digital marketing solutions to small to mid-sized private and public companies.

Responsible for Company’s digital marketing efforts, including web and social media presence, as well as handling Company’s IT environment.

Robert Van Boerum

Operations

Overseeing manufacturing and production in the beverage industry for over 10 years and overall GT Beverage Company, LLC for the last three years.

Extensive experience with all IT systems related to retailers and suppliers key communications.

Bob Weiss

Broker Network

Responsible for development and management of Company’s regional broker network.

28 years of experience developing and managing retail product brands.

For the last 15 years, has led and managed food broker networks in the retail channel for customers such as Sundia, Herbshot, Prima Bella, Walden Farms and many others.

Andy Abbott

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PRODUCT SPEC’S (PRICING, MARGINS, ETC.)

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Units Per Case 12

List Price $7.56

Gross Margin Per Case $3.81

True Drinks' Gross Margin Percentage 50%

Suggested Everyday Retail Price (per unit) $1.29

Suggested Retail Margin 49%

Promo Allowance $0.35

List Price Less Allowance $7.21

Gross Margin Per Case on Promo $3.46

True Drinks' Gross Margin Percentage on Promo 48%

Suggested Retail Price on Promo (per unit) $0.99

Suggested Retail Margin on Promo 39%

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• 2013 – Multi Channel route-to-market

• Grocery, Drug, Mass, C-Store

– 38,500 new points of distribution

– Develop wholesaler supply model

– Utilize exclusive distributor network for UDS

– Pay for space in strategic national accounts

– Hi/Low pricing strategy for promotional activities

– Begin developing club store strategy with BJ Wholesale

– Increase direct sales support to three (3) sales managers

– Build brand awareness via sampling, media communications, and celebrity endorsement (tbd)

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KEYS TO SUCCESS

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• 2014 – Opening up Dollar Channel (Dollars General/Family

Dollar)

– Introduction of AquaBall to Club Channel (Costco Wholesales/Sam’s Club)

– Increase distribution to 53,800 outlets

– Increased focus on export of unlicensed AquaBall

• Tie-in with FIFA/World Cup/Nokia

– Introduction of AquaBall multi-pack to grocery, drug, mass channels

– Inclusion of AquaBall into school system (Project Omaha)

– New flavor introduction (strawberry lemonade, berry, apple)

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KEYS TO SUCCESS

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• 2015 – National C-store distribution including 7-Eleven, Valero,

Quick Stop

– Multi-pack and case sales make up 70% of sales

– Distribution in 63,500 retail outlets

– Increased sales in export market with new licensing expansion into Asia, Latin America, Europe

– New product development increasing consumer demographic to tweens and teen market, as well as adults on seasonal promotional product

– Acquisition of other natural water based beverages

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KEYS TO SUCCESS