James Davis – Distinctive Brands, Inc.

Report
Patented Beef Jerky Made in the USA
March 22, 2012
DISTINCTIVE BRANDS, INC.

 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
Founded in 2001
Go To Market Strategy

 4 Keys to Building Brand Equity:
1.
Patented Tenderization Process
 Patent 6,319,527
o
Established in 2001 expires in 2021
 Distinctive Brands, Inc. is the only beef jerky company to:
o
Use a natural enzyme to tenderize meat prior to smoking
o
Deliver a more tender snacking experience
o
Faster delivery of flavor
o
Increases production yield and sourcing options
Go To Market Strategy

 4 Keys to Building Brand Equity:
2.
Focus distribution to heavy meat snack consumer.
3.
“Right at Shelf” on packaging, pricing and
promotional tools.
4.
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.
BRAND DESCRIPTION
CONVENIENCE STORES CATEGORY
WILD RIDE COWBOY STRIPS
Dollar vol '11
$ % Chg
882,439,940
6.7
558,785
747%
*Nielsen 52 Wk. Ending June '11 Convenience Store Sales.
Strong Customer - Distribution
Amazon.com
Holiday Stores

Super America
Thorton’s
2 Year Use of Funds Plan
Total Funds Needed:
 $1,000,000
 $500,000

$1,500,000
Equity
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.
Thank you for your time and
consideration!

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