disclaimer€¦ · marketing programs for the company’s full portfolio of brands. steve bellini...

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Page 1: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 2: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 3: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

DISCLAIMER: The shares of common stock of the company offered hereby (the “Shares”) are highly speculative and an investment in the shares involves a high degree of risk and immediate and substantial dilution from the offering price. The shares are suitable for investment only by a person who can afford to lose the entire investment. Prospective investors in the shares should carefully consider the risk factors contained in the subscription agreement before making an investment decision. The shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and will be offered and sold in reliance on exemptions from the registration requirements of these laws. The shares have not been approved or disapproved by the Securities and Exchange Commission or any state regulatory authority nor has the commission or any state regulatory authority passed upon or endorsed the merits of the offering or the accuracy or adequacy of this communication. Any representation to the contrary is unlawful. In the absence of an effective registration statement under the Securities Act and any applicable state securities laws or an exemption from registration thereunder, the shares may not be sold or otherwise transferred.

Statements in this investor presentation that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to:

● our ability, as an early stage entity with limited operating history, to effectively manage our growth,● our ability to manage and maintain the contracts with third-parties who provide resources and services necessary for the production, packaging, importation and distribution of our product,● our ability to obtain financing based on reasonable terms, ● our ability to secure distributors in new territories, ● our ability to reach distribution targets and surpass distribution goals, ● our ability to attract, retain and motivate qualified personnel, and● our personnel’s and distributors’ ability to build relationships with retailers and brand loyalty with consumers.

Additionally, such statements may also involve risks, assumptions and uncertainties related to:

● variations in market conditions as well as the demand and pricing for our product which is dependent on unpredictable consumer tastes and trends, ● federal and state legislative reform in the heavily-regulated spirits industry, ● failure of any of the third parties involved in the supply of resources, manufacturing, packaging, importing and distribution of the product to meet their contractual obligations● competition from new or established brands in our industry, and● our ability to successfully maintain and enforce our intellectual property rights and defend against claims of infringement of the intellectual property rights of third parties.

These and other risks, assumptions and uncertainties are described in other documents that we provide to prospective investors, which you are encouraged to read. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. We expressly disclaim any current intention to update publicly any forward-looking statement after the distribution of this presentation, whether as a result of new information, future events, changes in assumptions or otherwise.

Page 4: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Broken Shed

Broken Shed has recently agreed terms to increase distribution from 5 to 15 states.

Broken Shed has introduced a proven management team with experience creating Jagermeister, Grey Goose, and Casamigos.

We are seeking growth capital to fund the requirements of this expansion.

Page 5: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Management Team

EXPERIENCED PROFESSIONALS FROM NEW ZEALAND TO CONNECTICUT

JONATHAN BAILEYCEO & PRESIDENT

SAMUEL A. BROWNEXECUTIVE CHAIRMAN

Sam grew up in Kentucky from a prominent family that has been in the spirits business for generations. An enthusiastic entrepreneur and risk taker, Sam started his career in motor racing before a stint in advertising at Ogilvy and Mather. A seasoned entrepreneur with over 35 years of experience growing companies in telecommunications and digital technologies, including M&A, IPO, Private Placement, Sales, Marketing and Growth Management.

Jonathan’s career has been spent in finance, initially with Arthur Andersen and subsequently as a professional investor. He was a Partner in New York at Omega Advisors, in London with Perry Capital, and ran his own hedge funds from 2003 to 2010.

JEAN-MARIE HEINSCHIEF MARKETING OFFICER

MARK SIMMONDSMASTER DISTILLER

Mark is one of the three founders of Broken Shed Limited. He has been in the beverage industry since 1992 and was responsible for developing BSV. He’s based in New Zealand and, as Master Distiller, is responsible for all production and quality control.

Jean-Marie, a distilled spirits industry veteran, brings her marketing and operations experience to Broken Shed. She held leadership roles at Sidney Frank Importing Co., Inc. where she was instrumental in the launch and development of brands including Casamigos Tequila, Grey Goose Vodka and Jägermeister, developing and executing a variety of innovative marketing programs for the company’s full portfolio of brands.

STEVE BELLINIEVP BUSINESS DEVELOPMENT

Steve, an industry veteran who has held leadership positions at Seagram Americans, Future Brands (a JV between Jim Beam and Absolut) and most recently Mast Jägermeister (formerly Sidney Frank Importing Company). During the course of Steve’s career he has successfully managed the sales and distribution of leading industry brands including, Crown Royal, Captain Morgan, Jameson and Makers Mark. Steve brings a unique blend of open and control state experience to the Broken Shed family.

Page 6: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

The Broken Shed Opportunity

We believe the Vodka market is ready for a new entrant.

Vodka remains the dominant spirit, accounting for one third of all spirit sales totalling 70MM cases annually in the US.

Volumes increased 2.2% in 2017, and revenues in the category expanded 3%.

The high end premium segment increased 14.5% in volume to 18.1MM cases. Revenue increased 15.4% to $1.6 Billion.

The leading brand accounts for 10% of cases. Many of the premium brands are old.

We believe the opportunity is there to take a meaningful share of the premium market with our differentiated, exceptional quality vodka and unique brand profile.

Data Source: Distilled Spirits Council Industry Report 2/1/18

Page 7: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 8: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 9: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Our Vodka

Page 10: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

™•

••

••

••

••••

•••

•••

Page 11: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Page 12: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 13: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

A side by side comparison against several other top-shelf premium vodkas highlighted its extremely pure and unique taste, and it was the hands-down preference. This is a fantastic vodka and at its price point, it’s an absolute steal compared to many other high-end, pricey spirits that are more widely available. It’s definitely worth picking up a bottle or two and would be best enjoyed over ice or in a cocktail that lets its delicate flavor shine.

"...It is the pure and polished characteristics of the vodka that will impress."

"...Smooth, clean, sweet and surprisingly full bodied for a vodka, featuring light vanilla and anise tones."

"With vodka brands constantly fighting to differentiate themselves from the rest of the over-crowded market in the United States, Broken Shed definitely stands out as a company with extraordinary heart and unmatched quality in every sip."

"At Broken Shed's price point, we can see it giving higher-end, premium vodkas a real run for their money."

Reviewers agree that Broken Shed is an amazingly clean & smooth Vodka...

"An incredibly clean finish, with a velvety mouth-feel."

The spirit is crisp and refreshing. As it opens up, a slight milky sweetness appears and it finishes extremely smooth with very little

bite. A side-by-side comparison against several other top-shelf premium vodkas highlighted its extremely pure and unique taste,

and it was the hands-down preference.

"It's easily the smoothest vodka I have ever tasted. It goes down like milk."

”“

Page 14: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Page 15: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 16: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

™Distribution

as of Q1 2018

CT World Wide Wine

NJ Allied

RI RID

KY Heidelberg

MI Great Lakes (to start 6/18)

CA Bock (legacy contract)

New or Changed Distributors

as of Q2 2018

CT ** CDI

RI ** Horizon

CA ** Youngs

MA Horizon

NH Horizon

ME Horizon

NV SGWS

DE Breakthru

MD Breakthru

DC Breakthru

WI

** added or changed distributor

Broken Shed’s current sales territories accounted for 33% of US Vodka consumption in 2016.

Vodka enjoyed a growth rate in consumption of 2.6% in these states during the five years to 2016. This exceeded the national average of 1.8%.

Page 17: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

We support all markets we are distributed in with full-time Brand Ambassadors.

Our Brand Ambassadors make 50-75 account calls and hold at least 2-3 tastings per week.

Our ambassadors act as category, brand and product experts and provide education and training to accounts, generating sales, focused on creating pull-through consumer awareness and brand experiences.

Brand ambassadors support the local Sales team with work-withs and sales leads through our “Indication of Interest” system

Qualified orders are sent to local sales team’s inboxes for their follow up and input into order systems.

All orders are tracked and monitored through our customer accounts system which assures we stay on top of the relationship and monitor our best customers.

Indication of Interest SystemAMBASSADORS SUPPLEMENT LOCAL TEAM SALES THROUGH OUR DIGITAL LEAD GENERATION SYSTEM AND OUR ON & OFF-PREMISE ACCOUNT TRACKER PROVIDING NOTIFICATION OF ACCOUNTS READY TO PLACE AN ORDER AND FOLLOW UP ON ACCOUNTS.

Page 18: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

18

Consumer Website: About Broken Shed – Brand & product information Product Locator – Where to buy News & Events – The latest news and update on Broken Shed Vodka Our Home – About Broken Shed’s culture Recipes – Featuring Cocktail recipes.

Content: Social Content – Distributed and shared across channels Brand Idea – Who we are & what we stand for Recipe – Continued seasonal updates for ways to enjoy product Regional & Local Promotions – Activation of grassroots activities Campaigns – Larger awareness and advocacy focused efforts

ORGANIZED TO SERVE DIFFERENT AUDIENCES

CONTENT OPTIMIZED FOR EDUCATION & DISCOVERY

SOCIAL CONTENT & SHARING INTEGRATIONS

Brokenshed.comTHE HUB TO OUR CONSUMER COMMUNICATION AND RELATIONSHIPS

CONSISTENT CONTENT UPDATES & NEW FEATURES

Page 19: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 20: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 21: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

BROKEN SHED WILL DELIVER A WORLD CLASS VODKA AT AN ACCESSIBLE PRICE. OUR PRICING IS SET TO POSITION OUR VODKA AS MORE PREMIUM THAN TITO'S AND AS MORE AFFORDABLE THAN GREY GOOSE

PRICING

BOTTLE (750ml) CASE (750ml)

Retail(Recommended)

$26.99 $323.88

Wholesale $20.99 $251.88

Distributor (FOB)

$14.33 + tax $171.96 + tax

Posting / Rips /Incentive

Up to $2.50 per bottle Up to $30 per case(scaled by volume, market by market)

COGS $3.50 $42.00

Gross Profit $8.33 $99.96

Page 22: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

Data source: 2017 Liquor Handbook 1) Gross Profit based on assumptions detailed on Slide 262) Leading 60 Brands accounting for 92% of all case sales

Page 23: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

These transactions are a representative sample of transactions for which data is available.

Per Case valuation is the relevant metric because the acquirer does not carry costs below the gross profit line of the income statement and may be able to decrease COGS.

Buyers are purchasing gross profit and the potential further growth.

Page 24: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 25: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 26: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

•••••••

••

Page 27: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions
Page 28: DISCLAIMER€¦ · marketing programs for the company’s full portfolio of brands. STEVE BELLINI EVP BUSINESS DEVELOPMENT Steve, an industry veteran who has held leadership positions

LocationBroken Shed Distilleries, Inc.PO Box 731Southport, CT 06890

PhoneJonathan Bailey +1 (646) 891-6477

[email protected]

Contact us