SIMPLY TODDY

Daniel BelleauAlessandra DyerChase DurrettBethenie Hope

April 23rd, 2008

POINTS OF SIGNIFICANCE

Ready-to-Drink Packaged Coffee Beverage Market $413.9 Million 9% Market Share 17.5% Compound annual growth

rate

MARKET OPPORTUNITIES

Customer Surveys 90% drink coffee 3-4

times/week 95% liked/loved Simply Toddy What is “cold-brewing?”

PRODUCT STRATEGY

Offering Initially:

Sweetened and unsweetenedMexican Zaragoza Select

(Allegro) Future:

FlavorsSpecial Proprietary blend

Pricing Strategy Each 12 oz bottle= $2.99

PRODUCT STRATEGY

Benefits of Features

Unique PackagingTrendy look increases the cool factor of the

consumer

Niche ProductUnique flavor provides an exciting alternative to

the typical cup of coffee

CaffeineEnergy to get through the day without the sugar

crash

High in antioxidants/low in acidityMood lifting, protects against various diseases

SUSTAINABLE COMPETITIVE ADVANTAGESPackaging & Design

-creative and simple-Recognizable and convenient-Committed to sustainable products

Continuous Innovation

-Various Blends-New and exciting flavors-Always high quality and organic ingredients

Legal agreements and contracts

-Contract brew master-Supplier and distributor non-compete agreements

Management -Women-owned business-Hire CEO-Experienced and passionate company members

TARGET MARKET STRATEGY

Consumer Market•LOHAS individuals

•Young urban professionals

•Ages 20-35

•Average income ~ $40,000

CHANNEL STRATEGYYear 1

•Local Coffee Shops, Mom & Pops

•Boulder Whole Foods

•Direct Store Distribution

Year 2•Expand to other natural food grocers & coffee shops

•Expand to Whole Foods Markets across Colorado

Year 3•Expand regionally, and to conventional grocery chains

COMMUNICATION

Unique Packaging•Trendy, eye catching

Point of Purchase•Positive, informative, exciting

Intensive webpage•Consumer resource

Local events•Name recognition

POSITIONINGTaste/ Health benefits

Convenience

MANAGEMENTBoard of Advisors

- Wes Brasher, founder & VP of operations of MIX1 Life- Ed Nichols, Co-founder and President of Sambazon Inc.

- Ed Iacino, president of Seattle Fish Co

- Boland T. Jones, Founder, Chairman, CEO of Premiere Global

Position Role Desired Background

CEO Lead and guide Simply Toddy Experience in organic food/beverage industry

Co-Packer Brew & package our products Educated and passionate individuals

CFO Master of finances Strong financial skills

Other Production crew, Brew master, distributer, lawyer, organic local food broker, design company

knowledge in specific field

RISKS & MITIGATION

1) People don’t like it!

2)Simply Toddy does not get into Whole Foods Markets

3) Simply Toddy cannot get traction in the market

4) A competitor copies our product

REVENUE Portrays unit price

evaluated with number of units sold each year

Year 1: Local Boulder market penetration

Year 2: All Whole Foods CO locations

Year 3: All regional Whole Foods locations

Year 4: Western regional Whole Foods locations

Year 5: Coast to coast

INCOME

Driving factors•Economies of scale

•Outsource production years 3-5

•Initial start-up capital costs and transition costs will be highest in years 1 & 3

CASH FLOW

FUNDING

Funding Round Type Amount Offering Uses

Startup Investment (Prior to Year 1)

Founder Bootstrapping, Friends and

Family

$150,000 20%

Employee Salaries

CAPEX - EquipmentInventories

Launch Marketing Campaign

Production Support (Early Year 3)

Other companies

funding, Angel

investors

$200,000 10%

Additional Employee Salaries

CAPEX - Kitchen & Master Brewer

InventoriesMarketing - Sponsor

Events

CONCLUSIONS

Market Opportunity

Niche Product

Sustainable Competitive Advantage

QUESTIONS?

OPERATIONS PLAN

Allegro Coffee Beans Production in Boulder

Brewing labeling Bottling

Retailer DSD Whole Foods Market Coffee Shops Expansion…

Market Testing Customer Service

DEVELOPMENT PLAN

CUSTOMER RESEARCH

Surveys 80 handed out What is Toddy Coffee exactly?

Sampling 50 Distributed on-campus Cold-brewing system is NOT well-known 95% loved the drink because:

Taste Smooth Refreshing Less bitter

FINANCIAL ASSUMPTIONS

Revenue numbers and quantities are based of Mix1 business model

Each bottle of Simply Toddy will be filled with 12oz of toddy and 80 cans will be produced per case.

Salary for employees will make up on average 71.8% of our revenue

A water permit must be obtained for ~$2000 due to the Boulder Country water allotment restrictions

The cost of sampling for 1 year is ~$275 and $500+ budgeted in the financial plan

REVENUE MODELSimply Toddy Notes

Revenue Projections

Years 1 to 5

($)

Year 1 Year 2 Year 3 Year 4 Year 5Simply Toddy

Number of units 256 356 391 430 473

Cases Per Year 512 2,764 10,332 27,400 42,034

Price per unit 239.2 239.2 239.2 239.2 239.2

*price customer pays

Total 61,235 661,149 2,471,414 6,554,080 10,054,533

Net Revenue 61,235 661,149 2,471,414 6,554,080 10,054,533

Revenues by Months & Quarters

($)

Months Year 1 Year 2 Year 3 Year 4 Year 5Month 1 0 14,035      

Month 2 0 14,035      

Month 3 0 19,649      

Total 1st Quarter 0 47,720 143,442 546,057 860,950

Month 4 1,062 16,842      

Month 5 1,700 19,649      

Month 6 2,125 19,649      

Total 2nd Quarter 4,887 56,141 168,756 642,420 1,012,882

Month 7 2,125 22,456      

Month 8 2,550 28,071      

Month 9 3,187 28,071      

Total 3rd Quarter 7,862 78,598 236,258 899,388 1,418,035

Month 10 2,550 30,878      

Month 11 2,762 33,685      

Month 12 3,187 33,685      

Total 4th Quarter 8,499 98,247 295,322 1,124,235 1,772,544

Total for year 21,248 280,706 843,778 3,212,100 5,064,411

Average Revenue

by Month 5,103 55,096 205,951 546,173 837,878

by Quarter 15,309 165,287 617,854 1,638,520 2,513,633

COMPETITIONCompany Product Quality Features Location Strengths Weaknesses

             

Starbucks

4 RTD coffee beverages (Frappucciono, Doubleshot & Light, and Iced Coffee)

Low quality, low cost product. Recent efforts to support growing community

Consistency of product with recognizable brand

World-wide, headquartered in Seattle, WA

Consistently maintains over 90% of RTD coffee industry

Lack credibility in socially and economically sustainable and organic community

Caribou

Recent Partnership with Coca-Cola including plans to expand to RTD industry

Low quality, low cost product. Recent efforts to support growing community

Consistency of product with recognizable brand

Nationwide, headquartered in Minnesota

Partnership with Coca-Cola with immediate plans to sell nationwide

Lack credibility in socially and economically sustainable and organic community

Bolthouse3 protein infused RTD coffee beverages

Single origin coffee from several regions. No known organic or fair-trade agreements

Protein and vitamin infused health features

Sold nationwide as well as online, headquartered in California

Differentiation with protein and vitamin health benefits

Lack any differentiation from Starbucks with inability to overcome market share

Cool Brew

Cold brewed coffee concentrate served in large servings. Requires mixing

Low quality, low cost product

Low in acid and bitterness of flavor

New Orleans based, online sales

First mover in cold brew coffee beverages

Poor marketing resulting in market unawareness as well as lacking convenience of RTD

Adina4 RTD coffee beverages high in sugar and additives

100% organic, fair-trade, and single origin coffee

Single origin with consistency of bean and flavor

Sold nationwide as well as online, headquartered in California

Socially sustainable company with products and production capability to penetrate market

Lack any differentiation from Starbucks with inability to overcome market share

VeloceWhole bean and ground coffee ready for to brew

100% organic and fair-trade coffee importer

100% organic and fair-trade coffee

Boulder based, sold on west coast as well as online

Established Boulder based organization with necessary resources

Well known in whole bean coffee with inexperience or production capacity to enter RTD coffee