FOASC Presentation 6.8.16 1 Probiotics are surging in popularity - - PowerPoint PPT Presentation

1

FOASC Presentation 6.8.16

Probiotics are surging in popularity

2

Kombucha will be $1.8 Billion in annual sales in 2020

$600 Million $1.8 Billion Data Source: SPINS scan (powered by Nielsen Scantrack) L12 Weeks Ending 1/24/16

3

Probiotic Beverages today are what Vitamin Water was 20 years ago…

• n trend to be the next generation of health and wellness!

Forbes Magazine: “Top 25 Innovative CPG Brands of 2014”

KeVita is rivaling brands such as Chobani and KIND for their innovation in the CPG industry

4

Brand Architecture: KeVita Brand Product Portfolio

5

KEVITA MASTER BREW KOMBUCHA

Leading the category with the fastest growing kombucha in the market!

6

• Bold, Effervescent On Trend Flavors
• 2 Strains of Live active probiotics

with 4 billion CFU’s

• Energizing with 80mg of caffeine
• Skews Male
• 5x the organic acids of the leading brand
• Organic, Non-GMO Certified
• Verified Non-Alcohol
• Filtered and Yeast Free
• Vitamin B Fortified

Kombucha Brand Comparison Chart

MBK contains 4 billion CFUs per bottle (2X MORE) GT Dave states 2 billion probiotics per bottle. Health Ade has no declared amount of probiotics. MBK contains 450mg of Organic Acids (5X MORE) Organic Acids are the functional “cleansing” ingredient in Kombucha. GT claims 65 mg of Organic Acids per bottle. Health Ade has no declared amount of Organic Acids. MBK is filtered and contains no “floaties” The “floaties,” are cellulose particles called pellicles. These “floaties” provide little to no health benefits. Filtration results in yeast free Kombucha.

• Excessive yeast may contribute to Dysbiosis which is an unhealthy

imbalance of the body.

• Master Brew Kombucha supports “yeast free” candida diet.*

GT Dave and Health Ade is unfiltered and contains “floaties” . Consuming too much yeast may contribute to Dysbiosis which is an unhealthy imbalance of the body. MBK is Verified Non-Alcoholic.

• To be labeled as Non-Alcoholic in compliance with the law, a product

must contain less than 0.49% alcohol by volume. GT and Health Ade Kombucha are involved in class action lawsuits for allegedly improperly labeling product as Non-Alcoholic. GT’s Kombucha was pulled from shelves in 2010 for concerns surrounding alcohol compliancy and product allegedly exceeding 0.49% alcohol by volume. MBK is SAFE to drink while pregnant or nursing. GT Dave openly states that: “if you are pregnant or breast feeding, please consult with your health care professional before consuming our products.” MBK’s Sugar content stated on our nutritional fact panel is accurate. Both GT Dave and Health Ade Kombuchas have a class action lawsuit brought against them for allegedly understating the sugar content in their Kombucha.* MBK is Naturally Energizing

• Brewed with Green and Black teas
• Quantify the caffeine on the label at 40mg per serving (2 servings per bottle)

Both GT Dave and Health Ade:

• Do not say that they are naturally energizing
• Do not quantify the caffeine levels on their labels

MASTER BREW KOMBUCHA OTHER BRANDS OF KOMBUCHA

7

SPJ UPJ Chilled Functional

$ Share of Premium Chilled Wholesome Category 84% (-5.1%) 4% (+1.6%) 12% (+3.7%) Segment $ % Chg YA +8.2% +60.6% +61.3% Including Non-Measured + Natural (estimated) annualized retail $ $1.5B+ $150MM+ $500MM+ Key players

Segments within Premium Chilled Wholesome Category

YTD Dec 27th – IRI, MULOC

Kombucha and Sparkling Probiotic are over 3x the size of cold pressed juice and still growing faster

8

SPINS Data 1/24/16

KeVita outperforms the category in all channels

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

Natural Gourmet Conventional

Category KeVita

52 Week Growth Cross Channels

10.0% 81.7% 4.3% 56.2 % 15.4% 121.6%

9

• In the last 52 weeks, KeVita is up 102% vs. prior year.
• Natural Channel is up +78.5%
• Conventional Channel is up +121%
• KeVita made successful cross over from natural to conventional with the latest 12 week sales rate

putting KeVita on pace to generate $64MM in per annum retail sales.

• At Whole Foods Market, where KeVita first launched 6+ years ago, $ sales are $12.8MM over the

L52 weeks and growing +47%!

• KeVita has also penetrated Food Service, Mass, Club, Military, and Drug Channels

Growth rate continues to accelerate in all channels

Data Source: SPINS Weeks Ending 1/24/16

10

Consumer demand is driving national distribution

SUPERMARKET NATURAL CLUB & MASS DRUG MILITARY C-STORE E-COMMERCE

11

Sparkling Probiotic Drink Ranking

1. Lemon Cayenne 2. Mojita 3. Lemon Ginger 4. Strawberry

• 5. Mango Coconut
• 6. Tangerine
• 7. Blueberry Cherry
• 8. Pomegranate
• 9. Coconut
• 10. Hibiscus Berry
• 11. Pineapple Coconut

1. Ginger 2. Pineapple Peach 3. Raspberry Lemon 4. Tart Cherry

• 5. Citrus
• 6. Mango Habanero
• 7. Lavender Melon
• 8. Dragon Fruit Lemongrass
• 9. Grapefruit

Master Brew Kombucha Ranking

SKU Ranking Guidelines