2. Disclaimer and Forward Looking Statements
This presentation is prepared by The Pulse Beverage Corporation (the “Company”), and is solely for the purpose of corporate
communication and general reference only. The presentation is not intended as an offer to sell or to solicit an offer to buy or form any
basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or
relied on without professional advice.
The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its
current or historical operation results or its future business prospects.
The presentation contains certain forward looking statements with respect to the financial conditions, results, operations and business
of the Company. The statements and forecasts involve risk and uncertainly because they relate to events and depend on circumstances
that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those
express or implied by these forward looking statements and forecasts.
This presentation is provided without any warranty or representation of any kind, either express or implied. The Company specifically
disclaims all responsibility in respect of any use or reliance of any information, whether financial or otherwise, contained in this
presentation. The statements contained within this presentation have not been evaluated by the Food and Drug Administration. The
Company’s products are not intended to diagnose, treat, cure or prevent any disease.
This presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, including statements regarding the business of the Company and its industry generally, business
strategy and prospects. These statements are based on the Company’s estimates, projections, beliefs and assumptions and are not
guarantees of future performance. The Company cautions that these statements are subject to various known and unknown risks and
that actual results may differ materially from those expressed in forward‐looking statements. The Company undertakes no duty to
update these forward looking statements except as required by law.
4. Company Overview
• The Pulse Beverage Corporation (“Pulse”) is based in Northglenn, Colorado and was
formed by successful beverage industry veterans for the purpose of exploiting niche
markets in the beverage industry.
• Pulse’s mission is to be one of the market leaders in the development and marketing
of nutritional/functional beverage products that provide REAL health benefits to a
significant segment of the population and are convenient and appealing to consumers.
• Pulse has assembled an outstanding management team of beverage industry
executives that have successfully launched and/or managed the distribution for more
than twenty‐five major brands over the past twenty years and have strong
relationships with distributors and buyers who supply thousands of retail outlets,
supermarkets, convenience stores and mass merchants.
• Pulse’s initial products consist of PULSE® Heart Health, Women’s Health and Men’s
Health Formulas and Cabana™ 100% Natural Lemonade.
5. Initial Development and Acquisition
• The PULSE® brand of beverages was formulated under license by a major
healthcare company that spent in excess of $10 million formulating,
developing and initially marketing the PULSE® brand.
• The PULSE® brand of beverages was formulated to be scientifically effective
by containing ingredients that are widely considered to be critical to adult
health including liposome nanotechnology that introduces the ingredients
into the beverage in a format that allows the body to absorb the nutrients.
• Pulse has free and clear ownership of the formulations, rights and
trademarks relating to the PULSE® brand of beverages including the right to
use the following Side‐Panel Statement: “Formulation developed under
license from BAXTER HEALTHCARE CORPORATION”. This right is in perpetuity
without royalties.
6. The Beverage Industry and Market
• Non‐alcoholic beverages are among the most widely distributed food products in the
world and are being sold through more than 400,000 retailers in the United States.
• The United States has more than 2,600 beverage companies and 500 bottlers of
beverage products. Collectively they account for more than $105 billion in annual
sales. It is estimated that globally more than $300 billion worth of non‐alcoholic
beverages are sold annually. The beverage market is controlled by two giants, Coca‐
Cola and Pepsico controlling over 70% of the beverage market.
• Industry watchers and the beverage giants believe that growth will be largely confined
to niche nutritional and functional beverages which are non‐carbonated.
• Coca‐Cola has stated that they are searching for another billion dollar brand and is
betting that the next big beverage will be a niche product. Coca‐Cola’s VEB group is
hoping to cultivate the next billion‐dollar brand and has identified PULSE® as the
direction the market is going. Coca‐Cola has stated that one million cases and/or $20m
in revenues is their “proof of concept” benchmark.
• It is common for these industry giants to acquire successful brands from smaller
companies, typically for a negotiated multiple of sales revenues. It is our goal to have
one or more of our brands in a position to be acquired.
8. Comparison to Other New Beverage Companies
with Emerging Growth Brands Continues…..
KEY TO SUCCESS is Pulse’s ability to rapidly develop a distribution network to distribute its
beverage brands. Beverage companies that fail generally fail because they didn’t have the
contacts and experience to rapidly build a distribution network.
The VEB unit of Coca‐Cola has expressed to Pulse Management that the beverage industry is
trending to the niche beverage products such as PULSE®. VEB has expressed that nutraceutial
beverages that are scientifically formulated, having sufficient dosages of active ingredients to
help maintain or make a difference to your health is where the beverage industry is trending
quickly.
The PULSE® brand is 2 to 3 years ahead in development compared to other “emerging” brands
for the following reasons:
Scientifically developed PULSE® brand has had in excess of $10 million spent on
product formulation and extensive and successful test marketing.
Seasoned management team each having 25+ years in the beverage industry with
proven track records.
VEB unit of Coca‐Cola’s expressed interest in the PULSE® brand.
An existing extensive distribution network which is expanding across North America
and Internationally ‐ A MAJOR KEY TO SUCCESS.
9. Prominent Industry Acquisitions
Vitamin Water® ‐ Coca‐Cola® purchased Vitamin Water® for a reported $3.4 billion when
they were selling approximately 10 million cases per year and had approximately
$200m in sales.
SOBE® ‐ Pepsi‐Cola® purchased SOBE® for a reported $378 million when they were selling
approximately 3 million cases per year and had approximately $60m in sales.
FUZE® ‐ Coca‐Cola® purchased FUZE® for a reported $300 million when FUZE®, at the time,
was selling approximately 7 million cases per year and had approximately $140m in
sales.
Rock Star Energy Drink® ‐ Coca‐Cola® purchased the distribution rights for an undisclosed
amount and owns the right of first refusal to purchase the Rock Star Energy Drink®
brand which is currently selling approximately 8 million cases per year.
Arizona Iced Tea® ‐ turned down an offer from Coca‐Cola® for $2.1 billion. At the time of
the offer, Arizona Iced Tea® was selling approximately 25 million cases per year and
$500m in sales.
Honest Tea® – Coca‐Cola purchased this brand in Q‐2 of 2011 for a reported $400 million
when it was selling approximately 1.4 million cases per annum.
10. Product Mix
• Pulse’s products are targeted at the nutritional and functional beverage segment
of the non‐carbonated beverage market which Pulse believes has a potential
market size in excess of $1 billion in sales annually.
• Non‐carbonated beverages divide into a number of categories including energy
and sports drinks, nutraceuticals, lemonades, teas, juices and bottled water. These
beverage categories include a host of products that are fortified with vitamins,
minerals and dietary supplements.
• Pulse’s product mix is calculated to exploit niches that have been identified as
either unoccupied or have yet to attract significant attention such as all‐natural
lemonades and nutritional/functional beverages.
• PULSE® brand of beverages are formulated and aimed at providing functional
ingredients to specific health platforms. Pulse has recently improved the original
Pulse® formulations by reducing the calories to not more than 55 calories per 8oz.
serving.
13. Women's Health
Pulse® ‐ Women’s Health Formula™ is a convenient
nutritional beverage designed specifically for women.
Our ability to be active and healthy is directly affected by
the strength of our bodies.
Pulse contains meaningful levels of
the key ingredients that work in
concert to enhance bone health
throughout our lives – calcium,
magnesium and Vitamin D.
Additionally, these ingredients coupled with folic acid
and other B vitamins help women prepare for
pregnancy while soy isoflavones can help buffer
symptoms of menopause.
No matter the stage of life, Pulse helps you meet life head on.
15. Cabana™ 100% Natural Lemonade
Cabana™ 100% Natural Lemonade is a refreshing, all‐natural, “good‐for‐you”, ready‐
to‐drink lemonade in five distinct and great tasting flavors, offering a significant
reduction in calories, only 60 calories and 12 grams of sugar per 8oz serving and no
artificial sweeteners or coloring. To sweeten and reduce calories Pulse uses stevia, a
South American herb used as a natural sweetener.
16. The Lemonade Market
• Lemonade is America’s second favorite juice drink
• 89% of juice drinkers consume lemonade – 36% as favorite
• 56% of all teenagers prefer lemonade in the juice category ‐ African
Americans 66%, females 61%
• 52% of all people purchase a drink contained in a glass bottles ‐ the
highest of any packaged container for a beverage The Lemonade
Category in 2010 was a $350m business, up 32% from 2009
• Simply Lemonade is the leader in the category at $155m in sales in
2010, up 91%
• Calypso sales were up 51% to $15m
• Tropicana Lemonade grew at 233%
17. Media Commentary on Lemonade Market
“Lemonade, that quintessential summertime drink, is becoming a
drink for all seasons. No longer resigned to backyard barbecues
and ball games, the category has seen a surge in year‐round
consumption. Consumer demand for the beverage drove sales of
single serving bottles to $154 million over the last 52 weeks, up
11.3 percent over the same period in 2010, according to
Symphony/IRI data”
Ray Latif, BevNet Magazine, September 13, 2011
“Bell Flavors & Fragrances, Northbrook, Ill., forecasted the Top 10
flavors for the food and beverage industry in 2012. The No. 1
beverage flavor on the list was Lemonade”
BevNet Magazine, December 19, 2011
18. Competitive Landscape
Pulse® Heart Health, Women’s Health and Men’s Health Formulas
Glaceau Vitamin Water ‐ Numerous beverages/flavors, zero calories, mostly trace amounts of vitamins and
elements
SoBe Lifewater ‐ Numerous beverages/flavors, varying calories, mostly trace amounts of vitamins and
elements
Function Drinks ‐ Three beverages/seven flavors, emphasis on detox/weight loss/energy, various
antioxidants
Neuro ‐ Eight beverages/formulations/flavors, lightly carbonated, proprietary blends and vitamins
Cabana™ 100% Natural Lemonades
Calypso ‐ distributed in only 30% of the US market, leading brand, Five flavors, 20oz glass bottle, high in
calories with artificial coloring
Arizona Iced Tea ‐ One flavor (lemonade/tea aka “Arnold Palmer”), 24oz can
Country Time Lemonade ‐ One flavor, 12oz can, high in calories
Simply Lemonade ‐ One flavor, 13.5oz plastic bottle, natural lemon juice, high in calories
Huberts Lemonade – all natural lemonade in a 16 oz bottle
19. Competitive Differentiators
Market Environment
• Societal shift away from carbonated beverages ‐ The PULSE® brand is supported by a growing consumer
link between nutrition and wellness in convenient solutions.
• Emergence of new product categories ‐ energy and sports drinks, teas, juices, flavored waters,
functionals and lemonades.
• Aging population – influencing the food and beverage industry and affecting everything from packaging
and taste profiles to calories and contents.
• Pulse’s targeted demographics are 30+ adults who want to feel 30+ for the rest of their lives.
Differentiators
• Pulse’s goal is to create a new functional product category that is focused on providing true and
meaningful health and wellness benefits in a convenient, enjoyable and good tasting format.
• Proprietary formulations and scientifically effective in the recommended serving sizes as part of a daily
health regimen.
• PULSE® formulas include functional ingredients that are widely considered to be critical to adult health
including anti‐oxidants, vitamins, minerals, soluble fiber and soy isoflavones.
• Cabana™ Lemonades are 100% natural, low calorie, and uniquely flavored.
• Liposome nanotechnology to deliver non‐water soluble “actives” ingredients to the body.
20. Distribution and Sales Strategy
Pulse strategically determined to introduce its Cabana™ 100% Natural Lemonade brand ahead of
the launch of its PULSE® beverages for the following reasons:
• The lemonade beverage category offered immediate opportunity due to few competitors.
The leader in the category has grown at a rate of 51% over the previous year
• Lemonades are no longer considered a seasonal beverage and only one other competitor
offers 100% natural ingredients
• Messaging for Cabana™ 100% Natural Lemonades is straight‐forward: “Everyone knows
what lemonade is”
• Senior management’s years of establishing distributor contacts is allowing Pulse to quickly
implement a strong distribution network for Cabana™ which will facilitate and expedite
PULSE® brand introduction through this established network
• Pulse successfully predicted efficient Cabana™ product penetration attracting a broad
demographic without requiring consumer communication
Pulse’s Key Strategy ‐ having successfully delivered its Cabana 100% Natural Lemonade product
into its “Distribution System” it will be much easier to introduce the more complex PULSE®
product with functional ingredients that have been proven to promote health. In essence “Red‐
carpeting” the PULSE® brand into the established Distribution System.
21. Distribution Network – Key to a
Successful Beverage Company
• Pulse has been very successful in developing an elaborate and credible product
distribution system for its product offerings. What typically takes three to four years to
build has taken Pulse’s management just one year to build.
• Pulse’s distribution system presently includes over 78 distributors serving 38 States,
Canada, Panama and Bermuda. Pulse’s distribution network includes 80% class “A”
distributors. Class “A” distributors are distributors that carry major beverage brands such
as: Anheuser‐Busch, MillerCoors, Pepsi, Coca‐Cola, RC and 7‐Up. These distributors
provide full service product distribution at the highest level than smaller beverage
distributors.
• Pulse’s distribution system was strategically established behind the strength of its
Cabana™ 100% Natural Lemonade which acceptance by distributors, retailers and
consumers has exceeded expectations.
• Pulse has been educating and pre‐selling its distributors as to the health benefits of its
flagship product, Pulse® in three health platforms: Men’s Health Formula™, Women’s
Health Formula™ and Heart Health Formula™. These products will be “red‐carpeted”
into the extensive distribution network in place this fall.
22. Successful Launch of Cabana™ 100%
Natural Lemonades
• Response from distributors, retailers and consumers has exceeded expectations
due to superior packaging, great taste, 100% natural ingredients and lower calories
than competitors – 60 calories and only 12 grams of sugar per 8 oz serving. Any
beverage under 20 grams of sugar is considered a “good‐for‐you” beverage.
• By March 2013 the Cabana™ brand is expected to reach the 1,000,000 level of
case sales on an annualized basis. This is a “proof of concept” in the eyes of the
major beverage companies and the brand should be an acquisition target at that
point. Most emerging brands do not achieve this annualized level of sales until
years three or four after launch, if ever.
• By comparison, it took New Leaf Tea and Jones Soda almost six years to reach
1,000,000 in annualized case sales.
• Based on past acquisitions of successful beverage brands, and an independent
valuation of a private 1,000,000 case sale per annum brand, Pulse’s Cabana™
100% Natural Lemonade brand would have a significant value upon reaching an
annual case sale level of 1,000,000.
23. PULSE® Brand Launch
• Pulse intends to launch its Pulse® beverage brand in the fall of 2012.
• Pre‐marketing with distributors is underway in conjunction with continued marketing of
Cabana™ 100% Natural Lemonades and all distributors have expressed strong interest in
adding Pulse® brand to their line‐up.
• Pulse will position Pulse® brand line‐up as an extension of the successful lemonade launch
through the enthusiastic participation of its established and growing distribution network
across the United States and internationally.
• Pulse® “functional” beverage line‐up requires increased educational messaging directed at
beverage consumers in order to demonstrate the enhanced benefits predicted to drive sales
growth. Pulse’s Chief of Product Development and his team have reduced calories, increased
flavor profiles and have aligned the product with hot‐fill bottling processes which allows for
all natural ingredients without the use of preservatives.
• Educational process ‐ Dr. Peeke, Advisory Board Member, is a keynote speaker at nutritional
and sports conferences throughout the year. Pulse plans to utilize this opportunity as part of
the process to educate consumers. In addition, we plan to utilize a consumer website and all
social media outlets and print ads in major beverage magazines.
24. Growth and Acquisition Strategy
• Negotiate additional co‐packing contracts in strategic locations to more efficiently
serve the entire North American market including Canada, Mexico and Central
America.
• Expand and improve the PULSE® brand by developing new proprietary formulations
providing demonstrable clinical benefits such as: reducing sugar conversion in
glucose to assist in preventing the onset of Type 2 diabetes, support good skin
health, manage body weight, retard macular degeneration and preserve eyesight,
and provide adolescents with a beverage that supplies all the building blocks they
need for healthy growth.
• Acquire products and/or secure distribution rights that complement or extend our
current product mix.
• Expand internationally in 2013 and into Asia in the second half of 2013.
• Founding shareholders include strategic Asian partners for distribution into China and
other major Asian markets including financing inventory, build‐out, branding and corporate co‐
listing on an Asian Stock Exchange.
25. Management and Advisory Team
President, CEO and Board Member, Robert Yates, is a seasoned business executive with over 20 years
in the beverage industry. His previous distribution company generated approximately $50 million
in annual sales and was the most successful master licensee for Clearly Canadian Beverage
Corporation through much of Canada and the U.S. His distribution portfolio has included numerous
well‐known beverages including Monster Energy Drink®, AriZona® Iced Tea, Rock Star Energy
Drink®, Vitamin Water®, and Perrier®. Bob successfully launched his own brand, Kwencher, which
he built into a 1.7 million case brand in less than two years.
National Sales Manager and Board Member , Paddy Sheya, has over 30 years of international
executive sales and distribution management experience in the beverage industry. He has an
extensive track record in the development of brands and in building sales and distribution systems
from the ground up to multi‐million case sales. Notable examples include leading Clearly Canadian®
from nil to 4.8 million cases in less than 3 years, and managing Kwencher® sales from nil to 1.7
million cases in less than 2 years.
VP and Eastern Sales Manager , Robert Watkins, has over 27 years of international executive sales and
distribution management experience in the beverage industry. Proven record in the development
of brands and in building beverage brand sales and distribution systems from the ground up to
multi‐million case sales. Ex national and international sales manager for Bai Brands throughout the
East coast and parts of the Mid‐west, Dubai and the Caribbean. 2007 to 2010; was Operations and
International Business Manager for New Leaf Teas in the mid‐south and the Caribbean. Previously
on‐premise sales manager for Red Bull NA; District Manager and Marketing/Merchandising
Manager for Oak Beverages in the NYC market.
26. Management and Advisory Team
Chief of Product Development, Ron Kendrick, has been in the beverage industry for over 30 years. Ron
was previously with Clearly Canadian Beverage Corporation for over twelve years where he managed
supply and logistical operations during a time when Clearly Canadian sales grew from zero to $180
million. He subsequently founded Catalyst Development Inc. and was instrumental in the creation of
formulations for many companies including the PULSE® products for Baxter Healthcare.
Advisory Board Member, Bruce Horton, co‐founded Clearly Canadian Beverage Corporation where he
served as CFO and Director from 1987 to 1997. During his ten year tenure, Clearly Canadian’s sales
grew from zero to $178 million.
Advisory Board Member, Dr. Pam Peeke, MD, is an internationally recognized expert, physician, scientist
and author in the fields of nutrition, stress, fitness and public health. Dr. Peeke is a Pew Foundation
Scholar in nutrition and metabolism and is a Fellow of the American College of Physicians. She serves
as Chief Medical Correspondent for Discovery Health TV, and has a national bestselling book, Fit to Live.
Major magazines, television and radio networks interview her as a regular in‐studio science and health
news commentator. Dr. Peeke is chief lifestyle expert for WebMD’s 50 million members and serves as
spokesperson for the American College of Sports Medicine.
Advisory Board Member, Don Prest, is a financial consultant competent in accounting, auditing and US
GAAP financial reporting. Mr. Prest was CFO of Omnicity Corp, a public Wireless Internet Service
Provider from 2009 to 2011 and CFO of Power Air Corp, a public fuel cell company, from 2005 to 2008.
From 1993 to 2008 he served as practice head for a large US public company accounting firm.
27. Corporate
Company Contact Information
Legal Counsel
Bob Yates, Chief Executive Officer
Hart & Trinen LLP
11678 N Huron Street
1624 Washington Street
Northglenn, CO, 80234
Denver, CO, USA 80203
Phone: 720‐382‐5476
Email: ryates@pulsebeverage.com
Investor and Broker Relations
Acorn Management Partners LLC
Shareholder Relations
Lance A. Beckham
Martin E. Janis & Company, Inc.
Phone: +1‐678‐368‐4012
Phone: +1‐877‐302‐6404
Email:
Email: investors@pulsebeverage.com
lbeckham@acornmanagementpartners.com
Transfer Agent Auditors
Holladay Stock Transfer, Inc. Weaver, Martin & Samyn LLC
2939 North 67th Place 411 Valentine Rd, Suite 300
Scottsdale, AZ, USA 85251 Kansas City MO, USA 64111
OTCBB: PLSB
www.pulsebeverage .com
