executive summary - Sloane Capital Corp.
Transcription
executive summary - Sloane Capital Corp.
R E TA I L P L A N EXECUTIVE SUMMARY 1 DISCLAIMER LYFE Kitchen is a brand that is comprised of three entities: LYFE Kitchen, Inc. (“LYFE Restaurant”); LYFE Kitchen Retail, Inc. (“LYFE Retail”); and LYFE IP Holdings, LLC (“LYFE Brand”). The information contained in these marketing materials (the “Marketing Information”) is not part of an offering memorandum, subscription agreement or other such offering document. The Marketing Information may contain references and information about any one or all of LYFE Restaurant, LYFE Kitchen and/or LYFE Brand. The Marketing Materials are for informational purposes only. LYFE Kitchen uses reasonable efforts to provide up to date and accurate information in its Marketing Materials, however, errors and omissions may occur. Further, any performance data that may be expressed in the Marketing Materials is an indication of past performance only and does not indicate or guarantee future results. No information in the Marketing Materials should be construed as a solicitation, offer, recommendation, representation of suitability or endorsement of any security or investment. Offerings of securities in any of the LYFE Kitchen entities are made only by a private placement memorandum, offering memorandum or subscription agreement distributed by persons authorized by LYFE Kitchen. LYFE Kitchen is the first national food and consumable brand to provide a product line that spans multiple supermarket departments–from fresh prepared meals, to refrigerated offerings, frozen meals, deli, bakery and ingredients–and a national restaurant roll-out. Great Tasting | Truly Healthy | Convenient | Affordable R E TA I L - G R O C E R Y The Vision 3 Fact of LYFE #1 LYFE tastes great. EXECUTIVE TEAM Mike Roberts Steve Sidwell Mike Donahue Director, Retail President and CEO, Restaurant President and CEO, Retail Director, Restaurant CCO • Former president and COO of McDonalds Corp • 30+ years industry experience • Board: Grainger, Qwest, Standard Parking • Entrepreneur • Devante Capital • Recent project: Gardein • Former CCO of McDonalds Corp • 20+ years industry experience • Public Affairs expert 4 Fact of LYFE #2 LYFE is good for you. NEW PRODUCT TEAM John Mitchell Denis Ring Stephen Ford VP Product Dev, Retail Director New Products, Retail Director Product Dev/Nutrition, Retail • Former Director of Operations/Food Service at Whole Foods Market • Former Senior Vice President at Beautifull • Former Vice President of Private Label at Whole Foods Market • Safeway – O Organic and Open Nature • Chef with degrees in Ecological and Nutritional Sciences 5 Free of High Fructose Corn Syrup Free of Artificial Preservatives Free of Artificial Flavors or Colorings Free of Hydrogenated Fats Antibiotic Free Meats Gluten Free Options Under 600 Calories per Meal or Serving Organic where possible Vegetarian Options Meals Free of Butter & Cream L Y F E K i t c h e n RETAIL STANDARDS F r e s h L i n e LYFE MEALTIME CHICKEN MASALA WITH A CILANTRO YOGURT BASMATI RICE BLEND All-natural chicken thigh meat in a yellow Mumbai curry sauce with sautéed vegetables, pineapple, sweet potatoes, shallots, ginger, lemongrass, and spices. Served with a custom rice blend of jasmine, wild rice, quinoa and mustard seeds combined with yogurt and cilantro. CHIMICHURRI BEEF WITH ANCIENT GRAIN RISOTTO All-natural beef in a traditional argentinean sauce made with tomatillos, yellow onions, cilantro, and lime juice. Served with a custom blend of arborio rice, wild rice and quinoa. 40oz - 4 servings THAI COCONUT CURRY WITH BASIL YOGURT JASMINE RICE BLEND Authentic thai coconut curry sauce made with coconut milk, green curry paste, yellow onions, lime juice, and spices. Served with custom rice blend of jasmine, wild rice and quinoa. 40oz - 4 servings 40oz - 4 servings F r e s h L i n e LYFE MEALTIME TOMATILLO CHILI SAUCE WITH WHITE BEANS & TURKEY All natural cocoa infused turkey, cannellini beans, fresh red bell peppers, red onions, jalapeño chilies, garlic, and spices. Served with a creamy southwest spiced whole grist polenta. 40oz - 4 servings F r e s h L i n e LYFE SPOONFULS SWEET CORN CHOWDER WITH SMOKY CHIPOTLE CROUTONS Sweet corn, farm-fresh chowder vegetables and almond milk with a whole grain smoky chipotle crouton. 24oz - 3 servings CHICKEN MULLIGATAWNY WITH SPICY CURRY CROUTONS Traditional sweet curry chicken, wild rice blend, tangy green apples and sweet red peppers with a custom whole grain garam masala spiced crouton. 24oz - 3 servings F r e s h L i n e LYFE SPOONFULS SMOKY TOMATO BISQUE WITH SPICY HERB CROUTONS TURKEY BEAN SOUP WITH ZESTY ANDOUILLE – SPICED CROUTON Smoked paprika and tangy tomatoes blended with sweet potato and onion, with a whole grain peppercorn-thyme crouton. All natural turkey soup, cannelini beans with a whole grain andouille spiced crouton. 24oz - 3 servings 24oz - 3 servings F r e s h L i n e LYFE DAYBREAKS APPLE OATMEAL MORNING CIABATTA Whole grain oats & sweet apple chunks in a delicious breakfast ciabatta. Packed with tangy apples & whole grains! 320g - 4 servings LEMON BLUEBERRY MORNING CIABATTA APRICOT CRANBERRY MORNING CIABATTA Packed with sunkissed dried blueberries and a hint of lemon zest in an artisan breakfast bun. Toast and top with almond butter, fruit spread or your favorite topping! Tart cranberries and tangy apricots in a delicious breakfast ciabatta. Packed with tangy dried fruit! 320g - 4 servings F r e s h L i n e LYFE DAYBREAKS 300g - 4 servings WHOLE GRAIN RAISIN MORNING CIABATTA Sweet & tangy raisins with sunflower seeds & other whole grains in a delicious breakfast ciabatta. Perfect for breakfast on the go! 320g - 4 servings G r e e n M i s s i o n Great Food - Green Mission Packaging 13 Product Description: Roasted Seasoned Chicken in a Spicy Green Chile Sauce with Corn Polenta, Savory Black Beans and Papita Seeds Key Nutrient Dense Ingredients: GARLIC BEANS OLIVE OIL PEPPERS TOMATILLOS Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Chicken Chile Verde with Corn Polenta and Black Beans 14 Product Description: Cage-Free Eggs and Egg Whites with Mushrooms and Goat Cheese, Served with Sweet Potato/Mango Hash and Spicy Garden Salsa. Key Nutrient Dense Ingredients: PEPPERS OLIVE OIL EGG WHITES SWEET POTATOES MANGO Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Farmer’s Market Frittata with Mushrooms, Goat Cheese & Sweet Potato Hash 15 Product Description: Organic Steal Cut Oatmeal with Quinoa, Cinnamon, Fruits and Coconut/Almond Topping. Key Nutrient Dense Ingredients: PEACHES APPLES ALMONDS QUINOA STEEL CUT OATS Suggested Retail: $ 4.99 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Fresh Frozen Fruits High Fiber Frozen Line Steel-Cut Oatmeal & Quinoa with Mixed Fruits and Cinnamon 16 Product Description: A Hearty Vegetarian Mix of Multi Grains with Kale and Artichokes, with a Sweet Peperonata and Toasted Almonds Key Nutrient Dense Ingredients: GARLIC QUINOA KALE OLIVE OIL PEPPERS BROWN RICE Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Great Fats High Fiber Frozen Line Whole Grain Pilaf & Sweet Vegetable Peperonata 17 Product Description: Roasted Seasoned Chicken Breast in a Tangy Orange/Mango Sauce with Green Tea Infused Whole Grains, Steamed Kale and Broccoli Key Nutrient Dense Ingredients: GARLIC BROCCOLI KALE QUINOA MANGO FARRO Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Orange Mango Chicken with Whole Grains, Kale & Broccoli 18 Product Description: Tender Strips of Beef in Savory Teriyaki Sauce, with Steamed Kale and a Hearty 7-Grain Pilaf. Key Nutrient Dense Ingredients: KALE PEPPERS WHOLE GRAINS OLIVE OIL BROCCOLI Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Multi-Grain Blend with Sweet Chile & Soy-Ginger Glazed Beef 19 Product Description: Spicy Steamed Chunks of Barramundi Fillet with Greens, Mushrooms and Hearty Buckwheat Soba Noodles in a Ginger/Garlic Broth. Key Nutrient Dense Ingredients: CABBAGE BROCCOLI BARRAMUNDI BEANS MUSHROOMS Suggested Retail: $ 5.99 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Lemon Spiced Barramundi with Market Greens, Mushrooms and Soba Noodles 20 Product Description: Roasted Seasoned Chicken with Whole Grain Penne Pasta and a Savory Fire Roasted Tomato Sauce. Key Nutrient Dense Ingredients: GARLIC KALE OLIVE OIL PEPPERS TOMATOES Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Chicken and Fire-Roasted Tomato Cacciatore with Kale 21 Product Description: Whole Grain Penne Pasta in a Fire Roasted Tomato Sauce with Turkey Meatballs. Key Nutrient Dense Ingredients: GARLIC WHOLE GRAINS OLIVE OIL TURKEY Suggested Retail: $ 5.49 Retail Gross Margin: 30 - 40% TOMATOES Nutrition Highlights: • • • Low sodium Protein/Carb Balance High Fiber Frozen Line Whole Grain Penne Pasta and Turkey Meatballs 22 What We Have Done Product Dev Sales Plan Q1-Q2 2010 Q3-Q4 2010 Q1-Q2 2011 Q3-Q4 2011 Q1-Q2 2012 Founders Invest Branding Elements Retail Grocery Packaging Created Costco Test Success Create Brand Retail Concept Fresh Line USDA approvals in 20 Norcal Stores Business Plan Retail Business Product Start Sales Process Plan Development Brand engagement Retailers Secured: Surpasses 1 billion Safeway Impressions Whole Foods Key Team: Steve Sidwell Expand Team: Expand Team: Mike Roberts Retail Team John Mitchell Mike Donahue Todd Buchanan Janet Evans Expand Team: Chef Art Smith Stephen Ford Dr. Cardillo Stanley Hainsworth Expand Team: Chef Tall Ronnen Len Boyko Dr. Dorian Troy Polamalu Denis Ring Thomas Tull Norris Phillippe Dr. Perlmutter Brendan McDonald Derek Fisher David Graham Advisors Dr. Hyman Jay Holt Jim Wiatt Livleen Kaler AmazonFresh Adrienne Weiss 23 What We Have Done NPD - INNOVAION Q1 2012 LYFE Bread - Breakfast Ciabattas LYFE Ready to Eat - Meal Components LYFE Soups - 4 soups Product Dev Plan Q2 2012 LYFE Frozen Meals - Proprietary “Steam” Technology -Skillet Meals PROGRAM EXPANDED DUE TO CUSTOMER DEMAND LYFE-Ready to Eat -Meal Combinations -Soups LYFE Frozen Flatbreads - Whole Grain Crust - Gardein Inclusion Q3 2012 Sales Plan Q4 2012 *LYFE Frozen Wraps - High Protein - Whole Grains - Gardein Inclusion *LYFE Snacks - Antioxidant Bars - Super Fruits - Whole Grains *LYFE Water - Organic, Herbal Infused Functional Sparkling Water *LYFE-is a Party - Fresh Dips/Spreads with HPP Technology - Hummus - Guacamole -Spinach/Kale LYFE Starter - Probiotic Yogurt Drink and Ice Bars *LYFE Treats - Whole Grains - Gluten Free *LYFE Morning Crunch - Granola with Super Fruits Nuts and Whole Grains 2013 Products in Development -Organics -Non GMO -Gluten Free -Vegan/Vegetarian -Low Sodium -Low Fat “Cooking for LYFE” - Culinary Sauces, Marinades, Spices and Ingredients for ease in healthy meal preparation. *Potential products under consideration and development Timing may change based on customer demand 24 What We Have Done Product Dev Sales Plan Q1 2012 Q2 2012 Q3 2012 Q4 2012 2013 Brand Launch with Costco’s Northern California Region Costco Norcal Rolled Out to 20 Stores NATIONAL ONLINE LAUNCH *Whole Foods Markets (30 stores) Rollouts Coscto Norcal Reset (20 stores) AmazonFresh.com Safeway Norcal (100+ stores) Amazon.com – national HSN - national Extend distribution within existing customer channels, add new retailers to distribution network and expand to national distribution. Extend distribution within existing customer channels, add new customers and complete national distribution Top 20 locations in region POs Received Feb-22 *Amazon Fresh.com: Online, Seattle *Safeway California (100+ stores) *Amazon.com *Home Shopping Network (HSN) Programs* Kroger: California HEB: Texas Meijer Wegmans FreshDirect (Online, New York) Targets** Kroger: National Safeway: National Publix: Florida Ahold: Some banners Delhaize: Some banners Supervalu: Some banners Giant Eagle *Sales program development for future quarter rollout **Targets and timing may change based customer demand Targets** Ahold: National Delhaize: National SuperValu A&P FreshMarket 25 R e t a i l L a u n c h COSTCO PROGRAM R e t a i l L a u n c h COSTCO PROGRAM 242 websites 1,550 page views (August 8, 2012) Key placements include: Yahoo! Finance; Audience: 5,187,349 MSNBC; Audience: 2,741,852 Daily Finance (AOL); Audience: 169,669 ABC Local; Audience: 1,889,233 CBS News’ Audience: 203,074 10 units per day each meal G r o c e r y P r o d u c t s WHO IS NEXT Magazines: 425 Magazine Edible Seattle Northwest Business Monthly Puget Sound Business Journal Seattle Business Seattle Magazine Seattle Metropolitan Magazine Seattle Woman Seattle's Child Sunset magazine TV: KCPQ-TV KING-TV KIRO-TV KOMO-TV KCTS-TV New Day Northwest Q13 Fox News This Morning Radio: Ross and Burbank Seattle's Morning News KUOW Presents Jackie and Bender Mornings The B.J. Shea Morning Experience Ron and Don Show Blogs/Online: A La Carte Eater Seattle Seattle Healthy Food Examiner Seattle Women's Health Examiner West Seattle Blog Sammamish Patch Renton Patch Shoreline Patch Mercer Island Patch Woodinville Patch Bellevue Patch Daring Young Moms Absolutely Bananas Mama's Losin' It 425 Mom Seattle Moma Doc MomStart Mommies with Cents Daily Newspapers:u Seattle Weekly Bellingham Herald The Herald The News Tribune The Seattle Times Link Under 600 Calories per Meal or Serving G r o c e r y P r o d u c t s COMITTED CUSTOMERS G r o c e r y P r o d u c t s SALES TARGETS From Launch to National 1. Brand Launch: • Food Sampling Programs • In-store branding, banners, point of purchase materials, hand-out brochure • Major Media Announcement • Retail Rolling Thunder • Ambassador Video Tastemonials 3. National Launch: • National TV and Talk Show Exposure • WME Contacts and Network • Food Sampling Programs • In-store branding, banners, point of purchase materials, hand-out brochure • Retail Rolling Thunder Brand Engagement 2. California and Adjacent State Roll-out: • Food Sampling Programs • In-store branding, banners, point of purchase materials, hand-out brochure • Retail Rolling Thunder Brand Engagement PLAN 2012 Marketing: Launch and Directional Strategy 31 MEDIA IMPRESSIONS Over L Y F E K i t c h e n 1,200,000,000 LYFE IN THE NEWS Article L Y F E K i t c h e n NATIONAL LAUNCH L Y F E K i t c h e n NATIONAL LAUNCH L Y F E K i t c h e n NATIONAL LAUNCH GRAND OPENING PALO ALTO LYFE loves life. We're 100% committed to a "sustainability first" approach when it comes to gathering the ingredients in every LYFE recipe. And we'll continually seek new and better ways to source and prepare our dishes because, hey, that's just the way we like to run our business. PS. That’s Fact of LYFE #5 36 Spring 2010 $5 Million Fall 2010 $35 Million Spring 2011 $45 Million Fall 2011 $60 Million Spring 2012 $80 Million valuation valuation valuation valuation valuation Business Plan Branding Elements Restaurant first site Restaurant ground Restaurant Open to Founders Invest Restaurant Concept secured, Palo Alto Breaking, Palo Alto Rave Revues Menu Progression Retail grocery prod. Retail grocery Retail product line Retail Concept in development packaging created approved by USDA Key Team: Steve Sidwell Brand engagement Mike Roberts Expand Team: Expand Team: Expand Team: surpasses 1 billion Mike Donahue Synergy Consulting John Mitchell Stanley Hainsworth impressions Chef Art Smith Jim Wiatt Janet Evans Troy Polamalu Chef Tall Ronnen Adrienne Weiss Dr. Cardillo Dr. Perlmutter Thomas Tull Dr. Dorian Expand Team: Derek Fisher Dr. Hyman Denis Ring Share Capital Valuation for Restaurant and Retail Together LYFE VALUATIONS LYFE Kitchen Retail, Inc. August-12 Outstanding Shares Issued At Inception of RetailCo 143,177,163 Issued Subsequent to Inception 9,865,486 Shares Outstanding 153,042,649 Current Share Price Current Valuation $ 0.35 $ 53,564,927 Summary of Shareholdings Devante & Westside 100,000,000 Ambassadors & Advisors 10,864,512 LYFERs & Other Investors 42,178,137 Shares Outstanding 153,042,649 Summary of Options & Warrants Warrants - Ambassadors & Advisors 2,463,415 Options - Ambassadors & Advisors Options & Warrants Outstanding 2,463,415 CAP CHART SUMMARY LYFE Kitchen Retail, Inc. Public Company Retail Industry Players Comparative Performance Analysis PR OJEC T ED PR OJEC T ED PR OJEC T ED LYFE Retail LYFE Retail LYFE Retail Conservative Aggressive Kaboom! Exchange Symbol Public Since 'LYFE' 2018 'LYFE' 2018 'LYFE' 2018 Share Price Shares O/S Market Cap $1.15 186,034,306 $ 213,939,452 $3.00 174,546,211 $ 523,638,632 $11.25 188,534,306 $ 2,121,010,941 Revenue Gross Margin EBITDA Margin Net Profit Margin Return on Assets Return on Equity $ 103,936,239 35% 8.55% 5.78% 22.40% - $ 252,138,050 35% 11.01% 7.63% 27.00% - $ 989,495,904 36% 15.40% 9.12% 28.43% - 24 36 2.1 19 27 2.1 14 24 2.1 12 41 0.72 17 56 1.96 32 63 4.29 17 39 1.99 8 22 1.03 61 1,691,620 137 1,838,215 1,060 933,839 422 379,147 203 1,349,754 79 1,784,810 2,000 565,000 3,900 525,641 Mulitple of EBITDA Multiple of Net Profit Mulitple of Revenue Employees Revenue $ / Employee Inventure Foods Smart Balance Annie's NASDAQ SNAK Dec 1996 NASDAQ SMBL Feb 2006 NYSE BNNY Mar 2012 $ $ Hain Celestial TreeHouse Foods NASDAQ HAIN Jun 2007 NYSE THS Jul 2005 $6.27 18,390,000 115,305,300 $9.09 $36.30 58,940,000 16,650,000 $ 535,764,600 $ 604,395,000 $50.22 44,730,000 $ 2,246,340,600 $ $58.90 35,950,000 2,117,455,000 160,000,000 19% 6.07% 1.74% 3.19% 7.10% $ 274,000,000 $ 141,000,000 45% 39% 11.47% 13.29% 3.52% 6.79% 2.01% 13.73% 3.04% - $ 1,130,000,000 $ 28% 11.58% 5.05% 4.51% 6.74% 2,050,000,000 23% 13.23% 4.61% 3.94% 9.20% LYFE KITCHEN RETAIL, INC. Comparison between Conservative, Aggressive and Kaboom! Models 2012 CONSERVATIVE Number of Retail Stores & Online Users by end of year Average number of SKUs per store Average net selling price per SKU Average weekly turns per SKU $ Revenue Adjusted EBITDA (excl stock-based comp) Cash Proceeds from Issuance of Shares Bank Indebtedness AGGRESSIVE Number of Retail Stores & Online Users by end of year Average number of SKUs per store Average net selling price per SKU Average weekly turns per SKU 853,689 (4,508,079) 725,194 5,000,000 - $ Revenue Adjusted EBITDA (excl stock-based comp) Cash Proceeds from Issuance of Shares Bank Indebtedness KABOOM! Number of Retail Stores & Online Users by end of year Average number of SKUs per store Average net selling price per SKU Average daily turns per SKU Average weekly turns per SKU Revenue Adjusted EBITDA (excl stock-based comp) Cash Proceeds from Issuance of Shares Bank Indebtedness 570 5 9.00 $ 60.00 570 5 9.00 $ 60.00 853,689 (4,508,079) 725,194 5,000,000 - $ 570 5 9.00 $ 0.35 60.00 853,689 (4,008,079) 11,108,107 15,000,000 - 2013 4,897 6 3.99 $ 3.85 18,133,656 (3,375,716) 965,928 5,000,000 - 6,094 8 3.99 $ 3.85 24,248,774 (3,697,332) 329,423 5,000,000 - 16,588 17 3.99 $ 0.62 4.34 2014 2015 6,397 10 3.89 $ 3.99 28,762,097 (2,097,029) 3,452,146 5,000,000 - 404,442,029 44,361,077 23,245,273 20,794 31 3.59 4.41 252,138,050 27,769,957 28,046,769 - 29,788 48 3.69 $ 0.74 5.18 675,898,548 90,972,716 4,359,789 - 10,897 21 3.59 4.41 103,936,239 8,886,364 8,860,083 - 19,294 25 3.69 $ 4.27 168,361,986 15,352,679 13,098,547 - 26,188 37 3.79 $ 0.70 4.90 2017 9,397 18 3.69 $ 4.27 74,139,213 4,329,570 4,174,518 - 15,694 18 3.79 $ 4.13 104,204,431 6,232,853 5,775,015 - 22,588 27 3.89 $ 0.66 4.62 35,205,759 174,392,233 (4,179,434) 11,325,745 5,000,000 3,002,365 22,407,734 7,897 14 3.79 $ 4.13 46,821,460 285,821 2,560,440 - 12,094 13 3.89 $ 3.99 58,870,964 427,859 3,737,937 5,000,000 - 2016 31,288 58 3.59 0.78 5.46 989,495,904 152,357,769 59,874,901 -
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