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, LLC. Innovations for Healthier Lifestyles Turtle Creek Club October 28, 2011. Operating since 2010 Provider of fun and nutritious , sparkling, dairy-based beverages in the Consumer Health & Wellness space Innovative technologies are protected by U.S. and foreign patent applications.
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, LLC Innovations for Healthier Lifestyles Turtle Creek Club October 28, 2011
Operating since 2010 Provider of fun and nutritious, sparkling, dairy-based beverages in the Consumer Health & Wellness space Innovative technologies are protected by U.S. and foreign patent applications About FIZZA, LLC
Management Team • George H. Clark – President and Co-Founder • Over 50 years of nutrition, bio-medical diagnostic, and healthcare experience • Invented technologies for the carbonation of milk • Formulated and manufactured a number of unique and patented milk-based beverages • Mary A. Clark, RN – Vice President and Co-Founder • Registered Nurse for over 35 years and expert in the field of child nutrition • Member of numerous nutrition advocacy organizations including Action For Healthy Kids and the School Nutrition Association (SNA) among others • Robert O’Connell, MBA – Vice President of Marketing • Over 25 years of experience in advertising, promotion, and brand management • Co-Chair of the Academic Committee for the Promotional Marketing Association of America • Brand management experience includes Lever Brothers, Drake Bakeries & Kraft Foods • Fabián E. Rosado, MBA – Executive Officer, Right Start Consulting • Over 10 years of management experience, most recently with startups • Charter member of New Dominion Angels, a Virginia angel group • Chris Boehmler – Director of Finance, Right Start Consulting • Mike Keymer – Director of Marketing, Right Start Consulting • Russ Rands – Director of Sales, Right Start Consulting • Frankie Pezzella – Brand Manager, Right Start Consulting
Board of Advisors • Susan E. Duncan, PhD., RDProfessor, Dept of Food Science & Technology, Virginia Polytechnic Institute & State University • Food Science, Nutrition/Dietetics, and Food Technology Expert • Lead Researcher in 2009 Study: Improving Nutritious Beverage Choices for School Compliance to USDA Wellness Policy • Houston C. Ker, D.D.S. • 34+ years U.S. Navy and Private Practice Dentistry • Instrumental in limiting the availability of sodas and other junk food in K-12 schools • Lifetime Achievement Award recipient 2010 (GSDS) • Public speaker for FIZZA, LLC on the benefits of replacing sodas with lower-carbonation, higher calcium beverages
Customer Problem Retailers: Need for compelling, healthy brands Children: Lost access to soda at school Parents: Lack of attractive, healthy options Nationwide: Childhood obesity epidemic
A nutritious sparkling dairy beverage that contains all the qualitative nutrients of milk and the fun of soda Available in four flavors: Orange Strawberry Apple Cola Introducing FIZZA®
Key Health Benefits Nutritional Advantages: Fat and lactose free Low in calories and sugar No artificial sweeteners Contains the qualitative nutrients of milk All of the Vitamin A & D in milk 7g FIZZA® is formulated for fun and enjoyment while providing alternative, nutritious refreshment choices to children prone to childhood obesity, early onset of cardiovascular diseases, diabetes and growing youth food allergies
Awarded “BEST NEW BEVERAGE OF 2008” by the Virginia Department of Agriculture 60% of middle-school children preferred FIZZA® to soda in market tests conducted by Virginia Tech University Response To FIZZA® FIZZA® INNOVATION AWARD Left to Right – George Lewis, Sales Mgr., MARVA MAID DAIRIES, Mary Ann Clark, RN, VP Tech Services, BIOFREE-USA CORP, T. Robins Buck, Project Manager Virginia Agricultural Development Services
Protected Science Behind FIZZA® • Broad patents and trade secrets protect FIZZA®’s products and methods from competitive interference • Patent-pending process produces unique carbonation profile and balanced mouth-feel • Patent-pending process removes lactose and stabilizes beverage system while retaining the nutrients of milk • Unique bottle preserves product freshness • These and other innovative processes produce a refrigerated product shelf life of 70 days!
Retail Outlets Serving Size: 16 ounces Sales Price: $1.69 FIZZA® Point of Sale • FIZZA® will be sold in School Cafeterias and Retail Outlets: • The ban of soda from school cafeterias offers FIZZA® a protected market • FIZZA® has already been approved by the USDA for sale in school cafeterias! • School Cafeterias • Serving Size: 8 ounces • Sales Price: $1.00
Schools (Captive Market) Market Size • Retailer Market ~$300 million annual sales potential ~$1.1 billion annual sales potential Total FIZZA® Addressable Market: $1.4B(0.9% of the $153B Liquid Refreshment Market)
A Winning Business Model Manufacturing & Distribution Source One & Danthan MarvaMaid National Retail & Military Sales BarkerDZP School Sales, Brand Management, Marketing & Consumer Education FIZZA, LLC Marketing, Advertising & Promotions
Seed Capital • Phase One: ($200K) COMPLETED! • Third-party verification of label claims • Design production line at co-packing plant • Received government approval for production line • Phase Two: ($1.3M) • Install production equipment at co-packing plant • Launch product in Mid-Atlantic region • Sales & marketing activities • Working capital (inventory)
Deal Structure • Equity Investment, Common Stock • Current Pre-Money Valuation: $3.4M • Translates to 0.2% ownership per $10K invested
Exit Strategy • IPO • Strategic Acquisition • Soda Giant: Regain access to schools • Dairy: Replace lost milk & chocolate milk volume • Other Beverage Co.: Broader use of FIZZA® patents
Upcoming Key Milestones 2012 January March May July September November Jan: Launch school sales efforts Mar: Conduct plant shakedown May: Begin closing ’12-’13 school year contracts July: Introduce new flavor(s) for retail outlets Nov: Launch holiday season promotions Dec: Commence plant up-fitting Feb: Undergo final government inspections Apr: Ship product (Revenues begin) Jun: Launch retail outlet & summer school promotions Aug: Launch school promotions Oct: Launch Halloween special promotion
Recap • Superior Investment Opportunity • Experienced team • Right time for this product • Large captive/protected market • Protected technology • Low-cost business model • Attractive to the strategic buyers
Thank you! Fizza, LLCGlen Allen, Virginia 23060George Clark • george@fizzallc.comwww.fizzallc.com(o) 804-935-8574 • (f) 804-747-6182