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Public Investor OverviewFALL 2019 TSXV: BEER
Introduction
TSXV: BEER
Forward Looking Statements
This Presentation may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and
current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words
“may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its
management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of
future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties
and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s quarterly and annual Management’s
Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. If you have read this far, please use the coupon code NewFriend10 on our website for ten
percent off your first order. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the
Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause
results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements
other than as may be required by applicable law.
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“While other players are creatingportfolios that span the gamut ofcannabis product options, webelieve that cannabis-infusedbeverages, specifically ones thatmirror beverage alcohol, have thebiggest opportunity. That is our laserfocus.”
Mission:create
the
preeminent cannabis
beverage
company.
- Terry Donnelly, CEO of Hill Street Bev Co.
-4-
Hill StreetStrategy
Create the preeminent
cannabis beverage company
to win in Canada in 2020 and
be well-positioned to expand
globally as regulations evolve.
Leverage Existing Alcohol-Free Beverage
Platform to Bring Cannabis-Infused Beer
and Wine to Market in Canada in 2020.
Award-Winning AF Beverage Platform
Establish Hill Street Bev Co as the
Preeminent Cannabis Beverage Company
in Canada.
Preeminent Cannabis Beverage Co.
Expand to adjacent US market and
overseas as global regulations evolve.
Global Cannabis Beverage Leader
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COMPANYHIGHLIGHTS
HILL STREET BEV CO. IS AN
ESTABLISHED CANADIAN
BEVERAGE PLATFORM WITH A
SUCCESSFUL TRACK RECORD
IN AND LASER FOCUS ON
ALCOHOL-FREE BEVERAGES.
Established Canadian Alc-free Beverage Brand
Exclusive Marketing Partnerships
Established Relationships with Numerous Retailers
Pipeline of Accretive Acquisitions to Build a Full-Scale Cannabis Beverage Company
Lexaria Cannabis Infusion Technology
Experienced, Brand-Building Management Team
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Hill Street provides major
benefits to any
strategic investor.
Access to the legal Canadian cannabis market
Investment in a beverage focused cannabis firm with an established trademark and alc-free market presence
Availability of market, consumer and product information at a detailed level
Ability to leverage Hill Street supply chain and expertise to launch brands in cannabis space
Detailed market, operational and strategic knowledge ahead of US / EU legalization
TSXV: BEER
Industry Overview
-8-
The global cannabis market is estimated to reach ~$166 billion by 2025.
The global legalization of Cannabis is a once in a lifetime event.
Canada was the first G7 country to legalize recreational Marijuana in 2018.
Cannabis edibles, including beverages, are scheduled to be legalized in Canada in October of 2019, and are expected to be a $2.7 mm market in 2020.
Canada is the 1st and best incubator for federally legal cannabis products as other major countries legalize.
Cannabis has enormous
market
potential.
Source: Euromonitor International
-9-
Recreation is the major
driver of
cannabis usage.
Canadian Usage
Recreational – 78%Medical – 22%
58% use cannabis to have fun with friends.
41% use cannabis as an alternative to alcohol.
18%
19%
25%
26%
29%
34%
41%
48%
58%
62%
66%
To help connect with others
To improve sex life
To heighten senses
To increase creativity or expressiveness
For special medical reasons (pain, etc.)
To make activities more interesting
As an alternative to alcohol
To improve mood
To have fun with friends
To reduce stress or anxiety
To help relax or sleep
Reasons for Using Recreational Cannabis
Source: Deloitte 2018 Cannabis Report
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60%
46% 45% 44%
38%
0%
10%
20%
30%
40%
50%
60%
70%
Alcohol E-Cigarettes SmokingCannabis
Vaping or Edibles Tobacco
Beverage is the most
socially
acceptable format for
recreational
cannabis use.
Social Acceptability of Using Various Products Occasionally
Source: Canadian Cannabis Survey 2018
Beverage is clearly the most socially accepted recreational format.
Smoking and vaping are not permitted in the majority of locations across the world.
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FutureCannabis Market
$65 bn+
Wine $80bn
Spirits $70bn
Beer$125bn
Size of Alcohol Beverage Markets (US+Canada 2018)The beverage alcohol
market
shows huge potential for
cannabis
beverages.27%
22% 22%
12%
26%
23% 23%
11%
28%
21% 22%
12%
Beer Wine Spirits Other
Overall United States Canada
Of Consumers Surveyed Who Would Try Cannabis Recreationally, Which Beverages Would They Replace?
Sources: Statista, BW166, AT Kearney, New Frontier Data, Marijuana Business Daily
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Cannabis-Infused
beverages are
a healthier alternative to
alcohol.
Consumers Are Looking for Healthier Alternatives to Alcoholic Beverages
33% of Canadians are willing to pay a premium for
health-enhancing products. (1)
47% of regular alcohol drinkers are looking to reduce
their consumption. (2)
Health is the #2 concern for US consumers. (3)
Health Benefits of Hill Street Cannabis-Infused vs. Traditional Alcoholic Beverages
▪ 60-80% fewer calories▪ Less toxic▪ No hangover
Sources: (1) Business Development Bank of Canada, (2) The Harris Poll, (3) Conference Board® Global Consumer Confidence Survey
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Adult-format beverage is the
best
opportunity for edible
cannabis.
▪ $275bn+ beverage alcohol market in the US and Canada…
▪ Large future Cannabis market of over $65bn+ in 5-7 years
▪ More socially acceptable than smoking or vaping
▪ Alcohol format de-selects minors
▪ Micro doses mimic onset & duration of effect from beverage alcohol
▪ Socially inclusive to match beverage alcohol occasions
▪ Healthier than alcohol
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Alcohol-free beverage is a
rapidly
growing category.
+19% yoy
Category Growth*(alcohol free beer, wine, cocktails, mixers,
cider)
55% vs. 34%AF Beer % of total AF beverage sales
2018 vs. 2017
+27% yoy
Growth in AF beer sales
This Is Not a Niche.
135 million adults on prescriptions contra-
indicated to alcohol in the US and Canada, That is
44% of the adult population.
52% of adults in the US who drink alcohol are
either trying now or have tried before to reduce their alcohol intake.
Sources: Nielsen, Forbes
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Investor Target Company Invested Dollars (USD)
$4bn
$3.4bn
$200mm
$100mm
JV
Beverage companies are
already
creating cannabis
partnerships
that will drive growth in
Canada and
beyond.
(Pending)
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Summary of Amended Regulations
• Limit of 10 mg THC in any cannabis infused product
• No alcohol beverages mixed with cannabis
• Prohibition on marketing cannabis products
• Separate licensed production facilities required (no co-
production of alcohol and cannabis)
Canadian
edibles
become legal
in October
providing Hill
Street with a
competitive
advantage.
Hill Street’s Advantages
• Limit on THC increases the value of cannabis infusion
technology and increased effectiveness
• Hill Street is able to leverage alc-free recipes that share
base liquids with cannabis infused line
• Separate production facilities to be available through Hill
Street’s acquisition pipeline
• Company has been approached to co-pack for major
Canadian cannabis and beverage companies
Hill Street is already ahead of the game and has put itself in position to capture market share that is up
for grabs.
Company Overview
TSXV: BEER
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Hill Street has a
management
team and board
with 150+ years
of cannabis,
beverage, and
consumer
expertise.
Terry DonnellyChief Executive Officer
Brian BolshinPresident & Chief Product Officer
Hinta ChambersChief Financial Officer
Doug TaylorChief Commercial Officer
Bruce AndersonChief Information Officer
June NicholsonEVP Government Affairs & Health Partnerships
Barry KatzmanStrategic Advisor
Hill Street Management Team
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Board of Directors
Craig BinkleyPaul Rosen
Lori Senecal Jack Fraser
Terry DonnellyChairman & CEO
Terry Donnelly has 30+ years’ experience in marketing andadvertising, serving most recently as Chief Marketing Officer,Canada for MDC Partners (NASDAQ: MDCA), the largest Canadianmarketing services company with $1.3B in revenues and over17,000 employees. He was the co-founder of Adcentricity, EVP,Digital at Mandrake, and a board member/investor in a number ofpublic corporations, including two TSX listed companies.
Craig Binkley is President of Consulting for PROHBTD. He was CEOof Northstar Research Partners, Chief Consulting Officer for ZymanGroup, a world leader in beverage strategy consulting. Craigserved as Vice President of Marketing for Coca-Cola Mexico andWorldwide Director of Marketing for Diet Coke® and Coca-Cola’sMinute Maid® brands. Craig attended Davidson College in NorthCarolina and completed postgraduate work at Harvard BusinessSchool’s Program for Management Development.
Paul Rosen is the Founder and Former CEO & Chairman of TidalRoyalty Corporation, focused exclusively on the emerging,regulated U.S. cannabis industry (CSNX:RLTY.U). He co-foundedPharmaCan Capital (d.b.a. The Cronos Group, CRON.V,NASDAQ:CRON), and he is on the Board of iAnthus CapitalHoldings (IAN.C), a New York-based investment bank invested inthe marijuana sector. Paul is a member of the Law Society ofUpper Canada, and received a B.A. in Economics from WesternUniversity and an LL.B. from the University of Toronto.
Lori is the former Global CEO of renowned ad agency CrispinPorter + Bogusky and Chair and CEO of New York based KBS+P.She was one of Fast Company’s Most Innovative People of 2017,President and Global Chief Innovation Officer of McCannWorldwide, and named AdAge’s Top 4 People to Watch. She hasover 30 years of beverage marketing experience working onbrands like Coke, Dos Equis, Coors, Nestle and many others. Shehas a BComm from McGill University.
Jack Fraser is an ecommerce and consumer brand executive,currently working as VP Finance for Ssense, a fashion ecommercebusiness. He has raised over $1Bn in capital, and built majorecommerce brands such as iTravel2000, Bookit.com andTravelZest. He holds an MSc and MBA from Northwestern, andhas a Bcomm in Economics from the University of Guelph.
Kevin Ruddle
Kevin Ruddle is the VP Operations and Partner in VinFirstInnovative Packaging, the largest packaging facility in NorthAmerica for alcoholic beverages in the Prisma Tetra format. He is apioneer in alcoholic beverage packaging, and has been operatingin the Niagara wine and spirits industry for over 25 years. Kevinled VinFirst’s initial investment into Hill Street, ultimatelybecoming the major shareholder in the company.
Rudy Sawatzky
Rudy Sawatzky is President and owner of Grey Forest Homes andVinFirst Innovative Packaging. Rudy is a major property developer,investor and entrepreneur in the Niagara region of Ontario.
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Hill Street has won numerous medals and accolades including three Gold, two Silver, and two Bronze Medals at the U.S. Open Beer Championships, the Retail Council of Canada's Grand Prix award, and a prestigious Double Gold Medal at the San Francisco International Wine Challenge.
Hill Street has a
portfolio of
award-winning
alcohol-free
adult beverage
brands which
will serve as a
proxy for
cannabis
beverages.
Hill Street AF WineHill Street AF Beer
Hill Street will leverage its AF beer and wine brands to build brand awareness for the cannabis-infused
beverage line.
Beer and Wine Awards
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Representative Experience*
Leading Alc-free Retailers
Hill Street
already knows
the beverage
retail space in
Canada from
years of
experience.
Hill Street’s relationships with its numerous current alcohol-free retailers create additional brand awareness
*Represents professional experience of executive team and board members
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▪ Generated roughly $2mm in donations to these partnerships through Hill Street sales
▪ Research-led initiatives to support cannabis and alcohol-free beverages as alternatives to alcohol
▪ Lead sponsorships and usage of endorsement for alcohol-free & cannabis products
Select Partnerships
How Hill Street Makes a Difference
Exclusive
research
partnerships
with Canadian
health
organizations.
These partnerships allow Hill Street to reach 23mm+ Canadians
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Company Timeline
• Product development, innovation & formulation
• Contracted with Lexaria for rights to Cannabis Infusion
Technology
• Publicly listed via a reverse merger
Jul ‘18
• Developed beer-making strategy
• Won key partner agreements with Canadian health
associations
Sep ‘18
• Recreational Marijuana Legalized
in Canada
• Expanded Quebec Distribution with 3,000 new stores
Oct ‘18
• Proof of concept for new dealcoholizing
and cannabis infusion
technologies
Dec ‘18 May ‘19
• Distribution & licensing strategies
June ‘19
Summer ‘19
• Legalization of Cannabis Edibles
scheduled in Canada
Oct ‘19
• Cannabis-infused beer and wine
launched in market
Spring ‘20
The Company plans to launch cannabis-infused beer and wine following the legalization of cannabis edibles scheduled in Canada for October 2019.
Founding Member, 2019
• Helped create Cannabis Beverage Producers Alliance
Apr ‘19
• Final version of Cannabis Edibles
regulations released
Sep ‘19
• Manufacturing and global licensing
partnership with Lexaria announced
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Creating an End-to-End Cannabis Beverage Business
Combined With Exclusive Research Partnerships to Grow Business
*Hill Street has multiple options to bring beer and wine production in-house moving forward
Beer*
- 3rd Party Craft Supplier- 3rd Party Draft Supplier
Wine*
- 3rd Party Wine Supplier
CannabisLicensed Producer
Lifford Cannabis Solutions
Retail
Scheduled to complete co-packing agreement, Oct.
2019
Liquid SourceCultivation, Infusion and
PackagingDistribution and
Sales ForceConsumer
Sales
Hill Street Business Strategy
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Hill Street has
been getting
phenomenal
product
testimonials and
press
from media
influencers.
“It’s not like some of that other non-alcoholic stuff that’s dank and
heinous… this tastes like GREAT beer.”
- Howard Glassman, Midas Letter Live
“Wow… that’s fantastic! Really does have an incredible flavor
profile.”
- James West, Midas Letter Live
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Semi-exclusive
licensing
agreement with
premier
cannabis-
infusion
technology from
Lexaria.
▪ Patented water-soluble infusion tech
▪ Allows for odorless, tasteless cannabis-infusing of any beverage
▪ Altria invested $12mm in technology
▪ 5 to 10 times faster acting (less than 15 minutes) than other similar cannabis infusion technologies in the market
▪ Hill Street holds one of only 6 beverage licenses for use of technology
▪ 50+ patents pending, 14 issued
About DehydraTECH
▪ Global, semi-exclusive licensing agreement to utilize Lexaria’s patented DehydraTECH technology for production
▪ Hill Street will be able to infuse its award-winning Alcohol-free beverage line with cannabis in a cost-effective manner
▪ Hill Street is the only company licensed to use this technology globally for beverages
Lexaria – Hill Street Partnership
OTCMKTS: LXRP
Lexaria’s DehydraTECH is the best cannabis infusion technology on the market today, allowing for odorless, tasteless infusion 5-10x faster than
other infusion products.
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New product
offerings to
provide both
B2B and B2C
revenue streams
to current
business.
▪ Hill Street and Lexaria will also create and market additional products both B2B and B2Co Infusion powder to be sold to other businesses
looking to create edibles and other infused beverages
o Cannabis tablets to be sold direct to consumer
▪ B2B infusion powder fills a need for numerous other businesses looking to create infused products without access to DehydraTECH’s technology
▪ B2C tablets provide product diversification and allow Hill Street to reach even more consumers through DehydraTECH’s technology
▪ Clinical studies have proven DehydraTECH’s superb effectiveness, which will add to the premiumization of these new products
New Product Offerings
OTCMKTS: LXRP
Hill Street’s partnership with Lexaria provides the company with the opportunity to capitalize on enhanced consumer choice through the
DehydraTECH technology.
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Agreement in
place with a
leading
distributor
focused on
cannabis.
About Lifford Cannabis Solutions
Subsidiary of Lifford Wine and Spirits, a leading distributor in the beverage alcohol world
Actively selling flower and accessory products for LP’s and beverage companies
Over 40 dedicated sales reps
Will handle listing procurement, field level production detailing, brand ambassadorship, and event coordination
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▪ Proven consumer products with nearly 2MM bottles of wine already sold into market.
▪ Market proven infusion technology which mimics onset and duration of alcohol
▪ Significant product benefits when compared to alcohol
▪ Sophisticated flavours aligned with consumer preferences
▪ Marketing partnerships with leading medical research organizations that can reach over 23MM Canadians annually.
▪ Cause-related brands generate higher consumer loyalty and brand preference
▪ Multiple media partnerships aligned with shareholder interests.
Craft Beverages Meets Craft Cannabis
Summary
Thank you
TSXV: BEER