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Smart Food with a Healthy Future. MARCH 17, 2006. Robert C. Harrison President & C.E.O. Don Paterson, C.A. Chief Financial Officer. Ian Morrice Executive Vice President. Peter C. Morrice, M.D. Scientific Advisor. Experienced Management Team. Business Model.
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Smart Food with a Healthy Future MARCH 17, 2006
Robert C. Harrison President & C.E.O. Don Paterson, C.A. Chief Financial Officer Ian Morrice Executive Vice President Peter C. Morrice, M.D. Scientific Advisor Experienced Management Team
Business Model • Branding “Dairy Fresh Farms™” • Developing licensing agreements for the manufacture and distribution of its innovative dairy products
Skim Milk GMO Free Canola Oil “Dairy Fresh FarmsTM” Milk and Dairy Products • Patented Process • Exclusive Canadian License • Milk and Cream • Coming soon Ice Creams, Yogurts and Cheeses + =
Product Benefits • Tastes as good as or better than 2% milk • Low in saturated fat • Low in cholesterol • Lactose-Free • Nutritionally superior to 2% milk • Patented Formula-enhanced with monounsaturated fat • Contributes to reduced serum cholesterol levels • Helps prevent heart disease
MUFAs 100% 90% 80% PUFAs 70% MUFAs MUFAs up to 80% 60% 50% 40% SFAs 30% 20% PUFAs approx 13% PUFAs 10% SFAs* SFAs less than 7% Dairy Fresh Farms: Optimal Fat Profile Recommended Daily Allowance Dairy Fresh 2% Milk Fat *Saturated fat content is below U.S. threshold (0.5 grams per serving). This allows labelling as“no saturated fat”. MUFA - Monounsaturated fat PUFA - Polyunsaturated fat SFA - Saturated fat
Dairy Fresh Comparison Chart *Data for 2% and 1% Milk are estimates
World Authorities on Monounsaturates and Preventive Cardiology • Scott Grundy, M.D., PhD • University of Texas SW Medical Center (Chairman of the NCEP) • Nilo Cater, M.D. • University of Texas S.W. Medical Center • Penny Kris-Etherton, PhD, R.D. • Penn State University (American Heart Association Advisor) • Nathan Wong, PhD • University of California, Irvine Professionally Endorsed by…
Nutritional Labelling Has Changed January 1, 2003 “A Healthy Diet, Low in Saturated and Trans Fats may Reduce the Risk of Heart Disease” Source: Health Canada: Canadian Food & Health Inspection Agency
License signed with Canadian Heart & Stroke Foundation for use of symbol in Canada The Timing is Right • High growth for foods that are lower in saturated fats and cholesterol • World market growth in natural health & functional food productsa • Increasing consumer understanding of the link between diet and disease • Aging populations • Advances in food technology and nutrition research • Consumer trend to milk with lower fat content or milk alternative products (i.e. Soy & Rice beverages, Lactose-Free beverages) a. Sources: Agriculture and Agri-Foods Canada: Functional Foods and Nutraceuticals Industry
Canadian Dairy Industry Sources: Statistics Canada, Calculation done by the Dairy Section, Agriculture and Agri-Food Canada, Dairy Fresh and Harbinger Research estimates
Consumption of Milk & Cream by Province Total Litres Consumed = 2,968MM Province (MM Litres) Source: Canadian Dairy Commission, 2003
Obtained the Australia Heart Foundation’s Approval - “Tick” logo is on “Farmer’s Best” package Product’s Origins • Licensed in early 90’s • Marketed under brand “Farmer’s Best” • Grew the fluid milk category by 3.8% while achieving a 4.5% market share • Priced at a 25% premium vs. regular milk
Quantitative Research Dairy Fresh Technologies December, 2003
86% Dairy Fresh (86%) 85th Percentile (62%) Average (47%) RESULTS: Purchase Intent ---Top 2 Box Pre and Post Taste Test 100% Top Box increased from 48% to 58% Post Taste! 80 60 40 Top Box =Definitely will purchase Top 2 Box = Definitely/probably will purchase 20 0 Average = Average score across all food categories 85th Percentile = 15% of all food categories scored at this level or above
87% Dairy Fresh (87%) 85th Percentile (73%) Average (56%) RESULTS: Health Advantage --- Top 2 Box 100% 80 60 40 20 0 Average = Average score across all food categories 85th Percentile = 15% of all food categories scored at this level or above
Vancouver: over 8 in 10 would purchase Dairy Fresh Farms instead of the milk they currently buy. • Montreal: 7 in 10 would purchase Dairy Fresh Farms… Vancouver Montreal Purchase Instead Of Purchase In Addition To Purchase Intent Of the 85% who expressed positive purchase interest…
What Did They Like? • Three quarters thought the taste was better than expected • Graphics of pouring glass of milk was a clear winner • Low in cholesterol, low fat and lactose-free all important
*93% Interested in Cheese *88% Interested in Ice Cream Dairy Fresh Product Launches *Based on Consumer Feedback from Research and In-store samplings
Investment Considerations • The right product at the right time in one of the biggest and fastest growing categories worldwide • Exclusive Canadian license on patented process • A strong team of experienced and committed individuals • Solid relationships with relevant strategic partners • Endorsements of the health benefits of “Dairy Fresh Farms” by leading North American Experts • Outstanding results in Canadian research!
Contact Information COMPANY: Dairy Fresh Farms 413 Churchill Avenue North Ottawa, ON KIZ5C7 Phone (613) 724-2484 Fax (613) 722-6343 www.dairyfresh.ca INVESTOR RELATIONS: ROI Group Associates, Inc. 39 Broadway, Suite 2410 New York, NY 10006 Phone (212) 495-0200 Fax (212) 495-0746 www.roiny.com Bob Giordano, President, x10 rgiordano@roiny.com