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Distinctive Brands, Inc. Patented Beef Jerky Made in the USA March 22, 2012. Distinctive Brands, Inc. Founded in 2001. Operates in $2.5 billion dollar meat snack category. Delivering a Difference to Meat Snacks Beef Jerky with p atented tenderization process
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Distinctive Brands, Inc. Patented Beef Jerky Made in the USA March 22, 2012
Distinctive Brands, Inc. Founded in 2001 • Operates in $2.5 billion dollar meat snack category. • Delivering a Difference to Meat Snacks • Beef Jerky with patented tenderization process • Using 100% US Beef and scalable production facilities • Optimized and experienced organizational structure • Multi-year brand success and development
Go To Market Strategy • 4 Keys to Building Brand Equity: • Patented Tenderization Process • Patent 6,319,527 • Established in 2001 expires in 2021 • Distinctive Brands, Inc. is the only beef jerky company to: • Use a natural enzyme to tenderize meat prior to smoking • Deliver a more tender snacking experience • Faster delivery of flavor • Increases production yield and sourcing options
Go To Market Strategy • 4 Keys to Building Brand Equity: • Focus distribution to heavy meat snack consumer. • “Right at Shelf” on packaging, pricing and promotional tools. • Measure consumer loyalty in micro examples of customer sales growth.
Outdoor Channel • Wild Ride holds the number 1 or 2 position in 3 of the top 4 retailers.
Distinctive Brands - Sales Trends • 3 Year Sales Trend basis limited working capital • 2011 Key Financial Improvements • 16% reduction in logistics • 45% reduction in SG&A
Strong Sales Growth • Sales to our top 5 customers in ’11 grew over 70% in ‘11. • Fastest growing beef jerky in Convenience Stores as of June ’11.
Strong Customer - Distribution Amazon.com Holiday Stores Super America Thorton’s
2 Year Use of Funds Plan Total Funds Needed: $1,500,000 • $1,000,000 Equity • $500,000 Working Capital • Distribution Expansion • 2 Year Spending Plan to expand distribution (shelf space) • Adds an additional 25,000 plus Convenience Stores • Investment delivers $9,000,000 in net sales in 2 years
Exit Strategy • Our exit strategy: • In the next 24 – 36 months: • Deliver sales in excess of $15 million • Sell at a multiplier of 4 – 5 times top line sales • Sale of organization valued at: $60 – 75 million
Proven Brand Transitions • Recently acquired snack and beverage brands • Kellogg Co. (K) is taking the acquisitive route with its pending $2.7 billion deal for Pringles. General Mills also made a small deal, recently buying Food Should Taste Good Inc., to take advantage of the growth in snacks and natural products.*
Organizational Experience • Dean Mefford – Board Chair • Over 45 years of CPG experience, former Pres. Ralston Purina Intl. and former President of Ocean Spray • Jim Davis – CEO • Over 25 years of cattle experience, creator of the patent and over 25 years of successful entrepreneurial company management. • Carl Goedjen – General Manager Over 20 years of sales and marketing experience from Frito-Lay, Pillsbury Co and Anheuser-Busch. • David Purser – Food Scientist • 30 plus years of food research and development. Masters degree in Food, Animal Science and Chemistry. • Roger Bordeaux – CFO • 40 plus years of managing banks, mergers and acquisitions.
Distinctive Brands, Inc. Thank you for your time and consideration!