Healthy Living Consumer Products: Industry Update, Deal Review and 'Hot' Categories
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Healthy Living Consumer Products: Industry Update, Deal Review and 'Hot' Categories Natural Products Expo East Michael Burgmaier Nicolas McCoy September 2018 Managing Director Managing Director [email protected] [email protected] Disclaimer Nothing in this informational pamphlet is an offer or solicitation to buy or sell any security. Although this pamphlet may include investment related information, nothing in it is a recommendation that you purchase, sell or hold any security or any other investment or that you pursue an investment style or strategy. Cedar Crest Advisors, LLC does not give any advice or make any representation through this informational pamphlet as to whether any security or investment is suitable to you or will be profitable. Nothing in this pamphlet is intended to be, and you should not consider anything contained herein to be investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your financial advisors, accountants, or attorneys regarding your individual circumstances and needs. The past performance of any investment, investment strategy or investment style is not indicative of future performance. For additional disclosures, please see our website at www.whipstitchcapital.com. 2 Contents ▪ Whipstitch Capital Overview ▪ Healthy Living: Industry Overview and Deal Update / Whipstitch Capital’s Top 11 Healthy Living Consumer Trends ▪ Food & Beverage M&A and Private Placement Deal Data ▪ SPINS Market Update: Produced for Whipstitch’s Industry Analysis 3 The Largest, Independent M&A and Private Placement Advisory Firm Solely Focused on the Healthy Living Consumer Market Whipstitch [hwip-stitch] Noun. The stitch that passes over an edge, in joining, finishing, or gathering. • Led by Nick McCoy and Mike Burgmaier • Focused exclusively on innovative consumer companies • Financial Advisory on M&A and institutional private placements • Participate in and lead over 15 consumer industry events/year • Select recent deals: 4 Whipstitch Founded and Led by Experienced Dealmakers with a Highly Seasoned Team Nick McCoy, Managing Director & Co- Michael Burgmaier, Managing Director & Founder Co-Founder ▪ 20+ years investment banking experience ▪ 15+ years investment banking, consulting and ▪ Formerly Gleacher & Co. (First Albany, now VC Experience Jefferies), Allmerica Financial Corp., ▪ Formerly CEI Ventures, Bain & Co. Wheelabrator Technologies ▪ MBA, The Tuck School of Business at Dartmouth; ▪ MBA, Wake Forest University; BS, University of MPP, Duke University; BS, Boston College New Hampshire Greg Ucich, Senior Tim Sousa, Senior Dominic Mangano, Associate Associate Associate ▪ Six years consumer IB ▪ Six years consumer IB ▪ Three years consumer IB experience and PE experience experience ▪ Based in San Diego, CA – ▪ MBA and BS Finance, ▪ BS Finance, University of the most beautiful place in Bentley University Connecticut the country where Tim was a NCAA ▪ BS Economics and Finance, student athlete University of New Hampshire Natalie Cira, Associate Steve Gentili, Analyst Kathy Foster, Director of ▪ Eight years buyside ▪ Prior experience Operations experience at global asset performing valuations ▪ Five years of investment manager for financial reporting banking operations ▪ Marketing and strategy purposes experience experience at two ▪ BS Economics-Finance, emerging food start-ups Bentley University ▪ MBA, The Tuck School of Business at Dartmouth; BA Public Policy, Syracuse University 5 And Whipstitch has a Constant Connection with the Best: Supported by Industry Experts – the Stitching Crew ▪ Consultant to natural and specialty ▪ CEO of FoodState; a company that ▪ Founder of Wild Ventures, an food and beverage companies has been mastering the art of whole- influencer-based venture fund focused ▪ Over 25 years of experience in the food supplements since 1973 through on consumer health products & natural products industry its MegaFood and INNATE Response technology brands ▪ Co-Author of Natural Products Field ▪ New York Times bestselling author of Manual and The Sale’s Manager ▪ Previously CEO of Garden of Life; led The Paleo Manifesto & Spartan Fit! with Handbook them to the #14 spot on the Inc. Joe De Sena, founder of Spartan Race Magazine list of fastest-growing private ▪ Pre-launch advisor to Thrive Market; Bob Robert companies John Burke Craven Durant heavily involved in their influencer strategy ▪ Creates and grows brands: During 20- ▪ EVP at SPINS, leading consulting ▪ Founder of Campo Verde Solutions year career launched 1,500+ items practice, consumer insight team and providing consulting to natural and across 17 F&B categories into 12 financial partners group organic companies countries ▪ Previously held leadership positions at ▪ Private label expertise; previously with ▪ Currently serves on BOD for Demeter Brand Equity Ventures, McKinsey & Trader Joe’s and Whole Foods Biodynamic, Nuun, 4th Heart, Temple Company, and Beam, Inc. Beverage, Modern Alkeme and ▪ Over 20 years experience building Foodstirs Greg Anu winning strategies helping brands and Kim Fleishman ▪ Named to Forbes List of Top Consumer Goel retailers succeed Greenfeld Catalysts in 2016 ▪ CEO, The Tecnica Group, a winter sport ▪ Former Co-Founder, Chairman/ CEO of ▪ Created IGNITE Sales Management in and outdoor brand distributor; brands KeVita Probiotic Drinks; acquired by 2007; works with established brands as include Nordica, Tecnica, Blizzard & PepsiCo in 2016 a national sales force to assist in Rollerblade ▪ Founder, angel investor and strategic scaling CPG businesses ▪ Previously led Blake’s All Natural Foods; advisor for several on- trend functional ▪ Referred to as a “category captain” in acquired by ConAgra Foods in 2015 CPG ventures the industry ▪ Named NH Small Business Person of the ▪ Owner of Casa Barranca Winery; the ▪ Former General Mills: Roles included Year by The United States Business Bill first certified organic winery in central Kent directing sales operations, trade Chris Licata Administration in 2014 Moses coast California Pilakowski marketing and category management ▪ Principal, Financial Partner Group at ▪ Founder of The Tim Sperry Group; a ▪ Founder & CEO of Emerging Brand SPINS consultancy focused on clients selling Strategies, LLC, a consultancy to ▪ 15 years experiences developing into the Natural, Organic and Specialty beverage and consumer goods co’s strategic partnerships, consultative Marketplaces ▪ Held senior level roles with Diageo, solution selling and translating ▪ Previously spent 20 years in purchasing Constellation Brands & FIJI water complex data to meaningful insights leadership at WFM ▪ MBA from Wharton ▪ Holds and MBA from Elmhurst and B.A. Edricco in Corporate Finance and Commercial Tim Jeanne Reina Law from Western Michigan University Sperry Varley 6 In 2017, The Whipstitch Team Accomplished a Lot. Even More will Happen in 2018. 2017 by the Numbers • Ten M&A and Private Placements Transactions Closed • Three Unannounced Deals • One New Team Member • Over Ten Speaking Events with Emerging Consumer Companies • One Stitching Crew Lobster Bake Whipstitch 2018 Transactions • Six transactions closed in first half of 2018, including: Unannounced: Paleo Platform Company Undisclosed 7 Whipstitch Works with Clients both Before and During the Process: Our Services are Comprehensive and Best-in-Class Pre-Process Process Exec Sum & CIM Model Calling Program Meetings Diligence We generate strong We create the best We are on email and We manage the Data We create detailed, interest and provide story possible. We know phones constantly and Room. We know what highly-complex requested diligence what matters. We sell. at meetings. We will be asked and we bottoms-up financial materials We make you look models using airtight manage it all. We sell. have answers ready. good assumptions (You will look good) Marketplace Buyers List Closing We create a We lead negotiations We leverage our competitive process with investors/acquirers massive network to designed to generate to help create the best- compile the best list of multiple offers possible outcomes investors / acquirers tailored for you 8 Coast to Coast: Whipstitch Team Handles a Natural Client Base Select Current and Previous Whipstitch Team Client Locations * * * * * * * * * * Whipstitch HQ * Whipstitch Personnel Location Current / Not * Disclosed Clients 9 The Whipstitch Way: You Get the Best Bankers… and More Whipstitch…Explained ▪ Whipstitch Capital provides a hands-on approach to better-for-you consumer clients ▪ Our core-competencies surround running highly-competitive processes for our high-growth clients ▪ Whipstitch actively consults with our clients to ensure they are building equity value on a daily basis ▪ Whipstitch serves as connectors – this is our only industry and we are entrenched in it, we know the buyers, investors, retailers – the key decision makers… ▪ Do not take our word for it, we would probably under-promise and over-deliver anyways.. Bill Moses – Co-Founder, CEO Matt McLean – Founder and and Chairman, KeVita CEO Uncle Matt’s Organics ‘Nick and Mike led KeVita ‘When Whipstitch presented to expertly through more than five Uncle Matt's, they came financing transactions and the prepared with an in-depth ultimate exit to PepsiCo. Their analysis of our industry, and they knowledge, insight and tactical knew more than I expected instincts created an amazing about our brand and space. The opportunity for KeVita and a Whipstitch team helped us every tremendous outcome.’ step