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Advanced EntrepreneurshipDecember 1st, 2011

Jonathan Sebastiani

An On Trend SnackA Category Disruptor Brand

Premium Quality All-Natural 50%+ Less Salt/Fat Foodie Flavors Softer/Moist Texture Contemporary Branding Better Margins

( J E R K Y 2 . 0 )

TEAM KRAVE

↓

WHY A DISRUPTION

Th e O p p o r t u n i t y + M a r ket C on d i ti on s

Limited Market Segmentation Lethargic Competitors Favorable Consumer + Trade Dynamics Entrepreneurial Entrant with New

Approach and Fewer Constraints Clear / Meaningful Differentiation vs.

Mainstream Competitors

Th e E xa m p l e s

Industry

Airlines Virgin AmericaIce Cream Ben & Jerry’sBeer

Samuel AdamsPotato Chips Kettle / Terra ChipsCoffee StarbucksChocolate ScharffenbergerWater Vitamin WaterCereal Kashi / Bear NakedEnergy Bar Cliff Bar

Meat Snacks / Jerky KRAVE

Convention Buster Brand

MARKET SIZE

Giant Markets > Meat: $160B / Snacks: $70B > Meat Snacks: $4B

Varying Growth Rates> Meat: + 5%> Snacks: + 15%> Jerky: + 5%

Mega Consumer Trends Converging

> Healthy, More Flavorful, Higher Quality

Snacks Driven by Innovation / News

Meat Snacks / Jerky Generally Sleepy> Limited Innovation> “Gut Stuffer” Image

Change Underway Driven by New Entrants

> All-Natural> 10% Growth Latest 52 Weeks Nielsen F/D/M

2009 US Snack Food

A m e r i ca ns L o v e to Ea t M e a t a nd S n a c k

Retail Sales

Source: US Package Facts

Sweet$35B

Salty$30B

Meat$4B

THE TEAM

PhD Engineering Technology Specialist Previous Entrepreneur Alternative Prospect

Food & Beverage Domain Experience Previous Entrepreneur

Manufacturing Experience CPG Marketing Background

J o n S e b a s ti a n i

Ka m i l A g i

Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab)-Public Relations Firm - Glodow Nead

Key Activities-New distribution channels-In-store demos-Formal customer supportservice

Value Prop-Unique package-Quality of meat-Health benefits of jerky-Snack taste

Cust. Relations-Branding-Customer education-In-store demo-Frequent buyer program

Cust. Segments- Athletes- Gourmet food enthusiasts- Purposeful eaters - Vegetarian Jerky- Female segment

Key Resources- Jon Sebastiani- Direct to store delivery- National distribution

Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets-Krave Jerky Stores

KRAVE CANVAS SUMMARY #1

Cost Structure-Slotting Fees-Temporary price reduction,Scan based discount-In-store demo-$19m target market

Revenue Stream-$5.95

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 ti 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 E x p e r t s

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 Hornthal and Oren Jacob Broker Network – Ignite Sales, Advantage Sales

WHAT WE LEARNEDKRAVE vs . Competi ti on

Fitness Enthusiasts Healthy Snackers, Foodies Targeted to Men and Women All Natural Ingredients Gourmet / Premium / Modern Image US Sourced Meat Higher Quality Meat Cuts 50% Less Salt and Fat Moist and Tender Texture Grocery and Specialty Channel Focus

Manufacturers vs. Marketers > Jerky = Waste Reducer / Capacity Filler

> All Similar Offerings – Compete on Price All Targeted to Men Artificial Ingredients “Gut-Stuffer” / Traditional Image South American Sourced Meat Unknown Quality of Meat Cut High Fat / Sodium Content Dry and Tough Texture Limited and Conventional Flavors

Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab)-Public Relations Firm - Glodow Nead-Manufacturer

Key Activities-New distribution channels-In-store demos-Formal customer supportservice- Social media leverage

Value Prop-Unique package-Quality of meat-Health benefits of jerky (✔)--Snack taste (✔)


Cust. Segments-Athletes (✔)-Gourmet food enthusiasts-Purposeful eaters (✔)-Vegetarian Jerky- Female segment (✔)

Key Resources- Direct to store delivery- National distribution

Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets-Krave Jerky Stores-Kiosks

KRAVE CANVAS SUMMARY – Summary #2



WHAT WE DIDRetai l Penetrati on

4,000 Retail Outlets – Grocery Stores, Online Shopping, Specialty Food Stores

THE GLIMPSE OF DEATH

Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway,QVC. KeHE)Flash sale sites (Woot, Joss & Main, Fab)-Public Relations Firm - Glodow Nead-Manufacturer-Order Fulfillment

Key Activities-New distribution channels-In-store demos-Formal customer supportservice-Social media leverage-Manufacturing-Vertical/Horizontal integration

Value Prop- Unique package- Quality of meat- Health benefits of jerky- Snack taste

Cust. Relations-Branding-Customer education-Public relations-In-store demo-Frequent buyer program

Cust. Segments-Athletes-Gourmet food enthusiasts-Purposeful eaters-Vegetarian Jerky- Female segment

Key Resources- Direct to store delivery- National distribution- National media (e.g. AP, WSJ articles)

Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets/retail-Krave Jerky Stores-Kiosks

KRAVE CANVAS FINAL

Cost Structure-Slotting Fees-Temporary price reduction,Scan based discount-In-store demo-$19m target market (specialty)-$500m jerky market (niche)-Gross margins or revenues

Revenue Stream-$5.95 (retail)- QVC - KeHE/Tree of life- Flash sites - Direct sales

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

MOVING FORWARD

Publ ic Relati ons

BUSINESS PERSPECTIVE

2011 – 2012 YOY Growth2 0 1 1 - $ 1 , 6 0 0 , 0 0 0

2 0 1 2 - $ 7 , 0 0 0 , 0 0 0 + 4 5 0 %

Krave – on!







Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets-Krave Jerky Stores

KRAVE CANVAS SUMMARY WEEK 1









Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets (✔)-Krave Jerky Stores




Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead




Cust. Segments- Athletes - Gourmet food enthusiasts- Purposeful eaters - Vegetarian Jerky- Female segment (✔)


Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets (✔)-Krave Jerky Stores




Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) -Public Relations Firm - Glodow Nead

Key Activities-New distribution channels-In-store demos-Formal customer supportService- Social media leverage

Value Prop-Unique package-Quality of meat-Health benefits of jerky-Snack taste (✔)


Cust. Segments- Athletes (✔)- Gourmet food enthusiasts- Purposeful eaters (✔)- Vegetarian Jerky- Female segment (✔)


Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets (✔)-Krave Jerky Stores-Kiosks




Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) (✔)-Public Relations Firm - Glodow Nead


Value Prop-Unique package-Quality of meat-Health benefits of jerky-Snack taste (✔)




Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus)-Supermarkets (✔)-Krave Jerky Stores-Airport kiosks-South Beach diet-Jerky store in Vegas




Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, Flash sale sites (Woot, Joss & Main, Fab) (✔)-Public Relations Firm - Glodow Nead-Manufacturing


Value Prop-Unique package-Quality of meat-Health benefits of jerky (✔)-Snack taste (✔)

Cust. Relations-Branding (✔)-Customer education-In-store demo-Frequent buyer program



Channels-Direct to consumer – web-Vending machines-Specialty stores (Cost Plus) (✔)-Supermarkets (✔)-Krave Jerky Stores-Airport kiosks (✔)-South Beach diet-Jerky store in Vegas




Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, KeHeFlash sale sites (Woot, Joss & Main, Fab) (✔)-Public Relations Firm - Glodow Nead (✔)-Manufacturing (✔)

Key Activities-New distribution channels (✔)-In-store demos-Formal customer supportServiceSocial Media LeverageManufacturingVertical Horizontal Integration

Value Prop-Unique package (✔)-Quality of meat (✔)-Health benefits of jerky (✔)-Snack taste (✔)

Cust. Relations-Branding (✔)-Customer education-In-store demo-Frequent buyer program (✔)

Cust. Segments- Athletes (✔)- Gourmet food enthusiasts (✔)- Purposeful eaters (✔)- Vegetarian Jerky- Female segment (✔)

Key Resources- Jon Sebastiani- Direct to store delivery- National distribution-National Media (AP, WSJ, etc.)-Gross margins versus top line revenues

Channels-Direct to consumer – web (✔)-Vending machines-Specialty stores (Cost Plus) (✔)-Supermarkets (✔)-Krave Jerky Stores-Airport kiosks (✔)-South Beach diet-Jerky store in Vegas


Cost Structure-Slotting Fees-Temporary price reduction,Scan based discount-In-store demo-$19m target market-Gross margin vs. Revenue

Revenue Stream-$5.95(✔)-KeHe/Tree of Life-Direct Sales(✔)-Flash sites(✔)-QVC(✔)

Key Partners-Transactions: Paypal, Visa, Mastercard-Channel to Consumer: HSN, Safeway, KeHeFlash sale sites (Woot, Joss & Main, Fab) (✔)-Public Relations Firm - Glodow Nead (✔)-Manufacturing (✔)-Order Fulfillment (✔)

Key Activities-New distribution channels (✔)-In-store demos-Formal customer supportServiceSocial Media Leverage (✔)ManufacturingVertical/Horizontal Integration(✔)

Value Prop-Unique package (✔)-Quality of meat (✔)-Health benefits of jerky (✔)-Snack taste (✔)

Cust. Relations-Branding (✔)-Customer education-In-store demo-Frequent buyer program

Cust. Segments- Athletes (✔)- Gourmet food enthusiasts (✔)- Purposeful eaters (✔)- Vegetarian Jerky- Female segment (✔)

Key Resources- Jon Sebastiani- Direct to store delivery- National distribution (✔)-National Media (AP, WSJ, etc.) (✔)

Channels-Direct to consumer – web (✔)-Vending machines-Specialty stores (Cost Plus) (✔)-Supermarkets (✔)-Krave Jerky Stores-Airport kiosks (✔)-South Beach diet-Jerky store in Vegas


Cost Structure-Slotting Fees-Temporary price reduction,Scan based discount-In-store demo-$19m target market (specialty jerky)-Gross margin vs. Revenue(✔)

Revenue Stream-$5.95 (✔)-KeHe/Tree of Life-Direct Sales (✔)-Flash sites (✔)-QVC (✔)-Cash flow-2012 Projections

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