2. TEAM KRAVE
Premium Quality
( J E R K Y 2.0 All-Natural
) 50%+ Less Salt/Fat
Foodie Flavors
Softer/Moist Texture
Contemporary
Branding
Better Margins
An On Trend Snack
A Category Disruptor Brand
3. WHY A DISRUPTION
T h e E xa m p l e s
The Opportunity + Industry Convention
Buster Brand
M a r ke t C o n d i t i o n s Airlines Virgin America
Ice Cream Ben & Jerry’s
Limited Market Segmentation
Beer Samuel Adams
Lethargic Competitors
Potato Chips Kettle / Terra Chips
Favorable Consumer + Trade Dynamics Coffee Starbucks
Entrepreneurial Entrant with New Chocolate Scharffenberger
Approach and Fewer Constraints Water Vitamin Water
Clear / Meaningful Differentiation vs. Cereal Kashi / Bear Naked
Mainstream Competitors Energy Bar Cliff Bar
Meat Snacks / JerkyKRAVE
4. MARKET SIZE
A m e r i c a n s L o v e t o Ea t M e a t a n d S n a c k
Giant Markets
> Meat: $160B / Snacks: $70B 2009 US Snack Food
> Meat Snacks: $4B Retail Sales
Varying Growth Rates Salty
> Meat: + 5% $30B
> Snacks: + 15%
>Jerky: + 5%
Mega Consumer Trends Converging Sweet
>Healthy, More Flavorful, Higher Quality $35B
Snacks Driven by Innovation / News
Meat
Meat Snacks / Jerky Generally Sleepy
> Limited Innovation $4B
> “Gut Stuffer” Image Source: US Package Facts
Change Underway Driven by New Entrants
>All-Natural
> 10% Growth Latest 52 Weeks Nielsen F/D/M
5. THE TEAM
Jon Sebastiani
Food & Beverage Domain Experience
Previous Entrepreneur
Manufacturing Experience
CPG Marketing Background
KamilAgi
PhD Engineering
Technology Specialist
Previous Entrepreneur
Alternative Prospect
6. KRAVE CANVAS SUMMARY #1
Key Partners Key Activities Value Prop
-Transactions: Paypal, Visa, Mastercard -New distribution channels -Unique package
-Channel to Consumer: HSN, Safeway, -In-store demos -Quality of meat
Flash sale sites (Woot, Joss & Main, Fab) -Formal customer support -Health benefits of jerky
-Public Relations Firm - GlodowNead service -Snack taste
Cust. Relations Cust. Segments Cost Structure
-Branding - Athletes -Slotting Fees
-Customer education - Gourmet food enthusiasts -Temporary price reduction,
-In-store demo - Purposeful eaters Scan based discount
-Frequent buyer program - Vegetarian Jerky -In-store demo
- Female segment -$19m target market
Key Resources Channels Revenue Stream
- Jon Sebastiani -Direct to consumer – web -$5.95
- Direct to store delivery -Vending machines
- National distribution -Specialty stores (Cost Plus)
-Supermarkets
-Krave Jerky Stores
7. WHAT WE DID
Ta r g e t e d F o c u s P o i n t s
Over 10 In-Store Demo’s including 100’s of customer surveys
Sonoma County Wine and Food Festival – 50 Surveys
Online Survey – Over 100 Surveys
M e e t i n g s w i t h A d v i s o r s , M e n t o r s a n d I n d u s t r y
Experts
Private Equity Groups – Including Encore, TSG, VMG, Verge, Blue
Horizon and ex-TPG partners
Mentors - Gina Bianchini, Robert Siegal, Adam Tachner
10 – 25% Price Premium vs. Mainstream Competitors
Advisors – Steve Blank, Jim Hornthaland Oren Jacob
Broker Network – Ignite Sales, Advantage Sales
8. WHAT WE LEARNED
K R AV E v s . C o m p et i t i o n
Fitness Enthusiasts Manufacturers vs. Marketers
Healthy Snackers, Foodies >Jerky = Waste Reducer / Capacity Filler
Targeted to Men and Women > All Similar Offerings – Compete on Price
All Natural Ingredients All Targeted to Men
Gourmet / Premium / Modern Image Artificial Ingredients
US Sourced Meat “Gut-Stuffer” / Traditional Image
Higher Quality Meat Cuts South American Sourced Meat
50% Less Salt and Fat Unknown Quality of Meat Cut
Moist and Tender Texture High Fat / Sodium Content
Grocery and Specialty Channel Focus Dry and Tough Texture
Limited and Conventional Flavors
9. KRAVE CANVAS SUMMARY – Summary #2
Key Partners Key Activities Value Prop
-Transactions: Paypal, Visa, Mastercard -New distribution channels -Unique package
-Channel to Consumer: HSN, Safeway, -In-store demos -Quality of meat
Flash sale sites (Woot, Joss & Main, Fab) -Formal customer support -Health benefits of jerky (✔)
-Public Relations Firm - GlodowNead service --Snack taste (✔)
-Manufacturer - Social media leverage
Cust. Relations Cust. Segments Cost Structure
-Branding -Athletes (✔) -Slotting Fees
-Customer education -Gourmet food enthusiasts -Temporary price reduction,
-In-store demo -Purposeful eaters (✔) Scan based discount
-Frequent buyer program -Vegetarian Jerky -In-store demo
- Female segment (✔) -$19m target market
Key Resources Channels Revenue Stream
- Direct to store delivery -Direct to consumer – web -$5.95
- National distribution -Vending machines
-Specialty stores (Cost Plus)
-Supermarkets
-Krave Jerky Stores
-Kiosks
10. WHAT WE DID
Reta i l Pe n et r a t i o n
4,000 Retail Outlets – Grocery Stores, Online Shopping, Specialty Food Stores
11. THE GLIMPSE OF DEATH
•Build 1m •20% Increase
Relationship •Evaluation of on all SKU’s
•Design 2012 Terms PRICE •KRAVE Margin
Supplier Supplier to <10%
Strategic •Competitive INCREASE
Recipe Consideration •Wholesale
Relationship Pricing Set
12. KRAVE CANVAS FINAL
Key Partners Key Activities Value Prop
-Transactions: Paypal, Visa, Mastercard -New distribution channels - Unique package
-Channel to Consumer: HSN, Safeway, -In-store demos - Quality of meat
QVC. KeHE) -Formal customer support - Health benefits of jerky
Flash sale sites (Woot, Joss & Main, Fab) service - Snack taste
-Public Relations Firm - GlodowNead -Social media leverage
-Manufacturer -Manufacturing
-Order Fulfillment -Vertical/Horizontal integration
Cust. Relations Cust. Segments Cost Structure
-Branding -Athletes -Slotting Fees
-Customer education -Gourmet food enthusiasts -Temporary price reduction,
-Public relations -Purposeful eaters Scan based discount
-In-store demo -Vegetarian Jerky -In-store demo
-Frequent buyer program - Female segment -$19m target market (specialty)
-$500m jerky market (niche)
-Gross margins or revenues
Key Resources Channels Revenue Stream
- Direct to store delivery -Direct to consumer – web -$5.95 (retail)
- National distribution -Vending machines - QVC
- National media (e.g. AP, WSJ articles) -Specialty stores (Cost Plus) -KeHE/Tree of life
-Supermarkets/retail - Flash sites
-Krave Jerky Stores - Direct sales
-Kiosks
13. WHAT’S COMING DOWN THE PIKE?
Roll-out of KRAVE 2.0 in Q1 2012
New Branding
Better Product
New Size (3.25 oz)
Formal Marketing / PR Drive
Launching with Safeway on National Basis in Jan 2012
5 Flavors
$5.99 / unit price to Consumer
Addition of Other Major Distributors in Q4 ‘11 / Q1 ‘12