the emperor of ice cream: pitch deck

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A modern update on the iconic ice cream truck.

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Page 1: The Emperor of Ice Cream: Pitch Deck

A modern update on the iconic ice cream truck.

Page 2: The Emperor of Ice Cream: Pitch Deck

Market Opportunity:

Strong Preference For Super-Premium

Preference For Impulse Purchases

Strong U.S. Market

Preference For All-Natural

Growing Preference For “Free Form”

Conclusions: 1. There Is a Broad And Sustained Interest In High-Quality Ice Cream: Super-Premium and All-Natural ice

creams are on-trend, with sustained increases in growth over the last decade and projected to continue; industry growth is primarily spurred by the “free form” segment at this time.

2. Impulse Purchases Are Driving The Market: Consumers overwhelmingly purchase ice cream on a whim!

Global$60B

Domestic$13B

All Other36%

Impulse64%

All Other Categories80.5%

Super-Premium 19.5%

Global Total$60B

All-Natural$28B

Projected Annual Revenues, All Segments, 2017

Non-dairy, low-sugar, gluten-free, etc.

Purchased For Immediate Consumption

High Fat Content, Low Air Content

Free of artificial additives and highly processed ingredients

$59B

$60B

$61B

$62B

$63B

2017 2018 2019 2020 2021

Projected CAGR +5% Driven Primarily By Growth In “Free Form” Ice Cream Segment

Page 3: The Emperor of Ice Cream: Pitch Deck

Market Problem:

Our Solution:

• High degree of market segmentation: Ice cream sales are divided amongst impulse, super-premium, all-natural, and “free form” (low-fat, low-sugar, gluten-free, vegan/dairy-free, and more).

• Changing Tastes: The iconic ice cream truck has fallen out of fashion as consumers’ tastes have trended towards more natural/healthy ingredients and processes — parents now regard the ice cream truck as suspicious as it relates to their children's’ diets.

• Develop a nationally recognized brand of modern ice cream trucks serving the best possible product

• Combine the proven market segments for impulse purchases, super-premium, all-natural, and free-form ice cream and sorbet with our product menu

• Create a synergy between our ice cream trucks and take-home product in the grocery aisle

• Offer an experience that stokes the consumers’ sense of nostalgia and novelty

• Service our product via a highly efficient distribution mechanism that keeps operating costs low

• Create a fully integrated customer experience that tracks their favorite flavors, allergies/dietary restrictions, and past experiences; rewards customers for repeat visits and social media engagement

Page 4: The Emperor of Ice Cream: Pitch Deck

• No Compromises: Our established product is the best possible quality and incredibly delicious! We are proud of our ingredients and processes, and are eager to share them with our customers. Our 19% butterfat/30% overrun formula positions our product as one of the richest, most dense products on the market.

• Sensitive to All Dietary Restrictions: We cater to all appetites and dietary restrictions: vegan, gluten-free, etc. We are able to recommend new menu items to our customers based on their past purchases.

• Rewards For Repeat Visits and Social Media Interactions: Tracking of past experiences and simple loyalty programs can work to drive repeat visits from customers. Imagine bringing your child to an ice cream truck in an unfamiliar city and he hears “Happy Birthday Billy! We’ve got your favorite flavor today, and it’s on the house!”

• A Modern Update On An Iconic Concept: Think “Mr. Softee for the 21st century.” Customers can expect the same superlative experience across multiple markets.

Value Propositions For The Consumer:

(L-R): Our S’Mores Cone, made with our own graham cracker cone, toasted marshmallow rim, and chocolate ice cream; Our Rootbeer Float, made with 100% natural, whole ingredients like sarsaparilla root and fresh ginger; and our Choco-Huckleberry Ice Cream Sandwich, made with our Mountain Huckleberry ice cream and Chocolate Crinkle Cookies

Page 5: The Emperor of Ice Cream: Pitch Deck

Underlying Magic:

• It’s About the Kids!: While many modern food companies are targeting the adult “foodie” or “conscious consumer,” our ultimate goal is to make kids and parents happy! Our branding strategy relies on enticing children to try our ice cream, and to prove to their parents that we always have their kids’ well-being in mind.

• Vat Pasteurization: Our ice cream is pasteurized at a significantly lower temp for a longer period than other products — this gives our ice cream an incredible texture and flavor, while maintaining more healthy bacteria.

• Familiar Flavor Combinations Are Proven Hits: Flavors like Key Lime Pie, Bourbon Pecan Pie, and Southern Banana Pudding provoke an immediate fondness and expectation in the customer's mind.

• “Enlightened Hospitality”: Our customers should always feel like their individuality is recognized and embraced — a small-town feel with a personal touch behind every cone!

Page 6: The Emperor of Ice Cream: Pitch Deck

Business Model:

• Our products are first tested in small batches at our Montana facility, while food service products for our ice cream trucks are then produced to our specs by established co-packers throughout the US. Our ice cream co-packer has been in business for over twenty years, and is well-equipped to meet our volume demands as our business grows.

• To control packaging costs, packaged grocery product is produced at our own facility.

• Distribution is handled in part by company-owned vehicles. Packaged grocery product is introduced to new markets in tandem with our ice cream trucks, and serviced via the same delivery vehicles.

• Distribution-related overhead is off-set by transport of other third-party food and beverage along our established delivery routes.

$

EOIC Facility

+

+

+Demo Product

Commercial Product

Page 7: The Emperor of Ice Cream: Pitch Deck

Fundraising Goals:

• Upgrades to facility, including establishment of packaging processes and expansion of cold storage

• Purchase ice cream trucks, launch in secondary markets

• Working Capital

The company is currently seeking $200k through the sale of its common stock to members of the founders’ friends, family and acquaintances in a “friends & family round”.  In exchange for $200k, the investors in this round will collectively own approximately 20.4% of the Company.   The company anticipates that it will need to raise an additional $200k in the 4th quarter of 2017 to expand its packaging capabilities. While we expect to sell shares of common stock at the price it is currently offered, we cannot guarantee that the price will be the same at the time of the subsequent investment round.

Use Of Proceeds:

Equity Common Stock Of 2M Authorized Shares

Pre-Raise % Ownership

Post-Raise % Ownership

Alex McKenzie 408,000 87.2% 69.4%

Christina Calabrese 20,000 4.3% 3.4%

Tiffany Lach 20,000 4.3% 3.4%

Darryl David 20,000 4.3% 3.4%

Friends & Family Investors, Total 120,309 0% 20.4%

Total 588,309 100% 100%

Page 8: The Emperor of Ice Cream: Pitch Deck

Financials:

Gross Profit (Ice Cream Only); Excludes Third-Party Distribution Revenues/COGS

2016 Summer

Only*

2017 Summer Only,

Projected

2018 Year-Round,

Projected

2019 Projected

Revenues $16,000 $25,000 $225,000 $305,000

Cost of Goods and Services $6,300 $15,000 $155,000 $200,000

Gross Profit $9,700 $10,000 $70,000 $105,000

Gross Profit Margin 61% 40% 31% 34%

Debt Financing Amount Interest Rate Term

Convertible Promissory Note* $100,000 6% simple 10 years

USDA/Prospera Business Network $25,000 8% 5.5 years

Nissan/GMAC (Company Vehicle) $35,000 3.48% 6 years

Founder’s Loans $25,000 N/A N/A

$85,000

*Convertible Promissory Note converts into equity of the Company upon certain financing or time thresholds.

*Launch Season Did Not Include Founder’s Salary

Page 9: The Emperor of Ice Cream: Pitch Deck

Milestones To Date:

May 2015 Company Established

Summer/Fall 2015 Market Research &

Product Development

Winter /Spring 2016 Facility Lease Signed;

Co-Packing Relationships Established; $25K USDA Loan Obtained

Summer 2016 Initial Sales Season

$16K gross, 61% Profit Margin

September 2015 $50K Investment

From Hampshire College

Fall/Winter 2016 Distribution Arm Established;

$10K Grant Awarded For Company Use

Spring 2017 Federal liquor license obtained;

Company Vehicle Purchased; Second $50K Investment Procured

Summer 2017 Second Sales Season Launched;

Increased Distribution Range and Sales; Board of Directors Established

Fall 2017 Friends & Family Investment Round;

Submit Regulatory Plan For On-Site Production

Spring 2018 Begin Distribution of Packaged Product; Prepare for Launch In Southern Market

Summer 2018 Launch in Southern Market;

Expand Montana Retail Operation

Winter 2017 Second Investment Round;

Acquire Production & Packaging Assets; Acquire Ice Cream Trucks

Growth Timeline:

Page 10: The Emperor of Ice Cream: Pitch Deck

BrandHigh-End Product?

All-Natural & Super-premium?

Brick-and-Mortar Locations Ice Cream Trucks Available at

Grocery Store?Available Outside

Montana?

3 1

1 1

5 2

3 (projected)

Competitive Analysis: Montana Ice Cream Brands

(Idaho only)

Page 11: The Emperor of Ice Cream: Pitch Deck

Brand Product Formula Brick-and-Mortar Locations Ice Cream Trucks Available at Grocery

Store?

“Economy grade”: Less than 10% butterfat, with ~120% overrun

(air mixed in) and artificial ingredients

Products available in hundreds of

trucks nationwide

“Economy grade”: Less than 10% butterfat, with ~120% overrun

(air mixed in) and artificial ingredients

<10 ~600

All-natural, super-premium: No artificial

or highly-refined ingredients; 19%

butterfat and 30% overrun

3 (projected)

Competitive Analysis: Notable Ice Cream Trucks

Page 12: The Emperor of Ice Cream: Pitch Deck

Management Team:

Advisor: Darryl David has worked in the dairy industry for nearly forty years, having founded his first ice cream brand in 1978. He has worked variously as VP Operations and Franchise Sales at Annabelle's Natural Ice Cream, Inc.; Director of Purchasing at West Lynn Creamery, with $500M in sales; Director of Operations and Cost Control at Reilly Dairy & Food Co, with over $80M in sales; and currently advises frozen dairy companies with his organization Darryl’s Ice Cream Solutions, LLC.

Tiffany Lach is the founder and owner of three Sola Cafe & Market locations and Red Tractor Pizza in southwest Montana. She has owned multiple cafes and bakeries within the west/southwestern US throughout her 28 years as an entrepreneur.

Founder: Alex McKenzie is the Founder and CEO of The Emperor of Food, Inc. He has nearly twenty years of experience across multiple sectors of the food industry, including work in 14 different restaurants; food-service operations; multiple farms, including dairy and other livestock; wholesale production operations; and both freshwater and saltwater aquaculture systems. He holds a BA in Food Policy, and has maintained a deep fanaticism for ice cream since he was a youngster. This is his first experience as a business owner.

Board of Directors: Christina Calabrese is the co-founder of the Emperor of Food (and Alex’s partner), and serves as the company Secretary. With professional experience in real estate and design, she will be an asset as we commence operations in markets beyond Montana, assisting with matters related to zoning, applicable permitting, and vehicle prototyping.

Our Teenage Scoopers and Waffle-Cone Pros: For the past two summer seasons, we’ve taken great pride in providing Big Sky youth with their first employment experience!

Page 13: The Emperor of Ice Cream: Pitch Deck

Contact:

Alex McKenzie

[email protected]

(406) 595-3392

The Emperor of Ice Cream

PO Box 161256

Big Sky, MT 59716

www.eoicbigsky.com

https://www.instagram.com/eoicbigsky/

https://www.facebook.com/EOICBigSky/

https://twitter.com/eoicbigsky