Barley + Oats Investor Intro Deck

Transcript

1. Food for Female Health + The Modern Family Info Deck/Fall 2016 Proprietary + Confidential
2. 5 things to note • Our core customer, the millennial mom is a force to be reckoned with, with an annual spending power of $170 Billion/year* • We have a very big vision - fully prepared meals are only the beginning • We have an experienced team of advisors, and VC backed accelerator funding • Our early adopters love us, with a rising LTV of $1,200 and an NPS of 75 • We are fundraising to scale our model, leverage our first mover advantage to gain market share + build a valued brand focused on mothers + families . COM *globally
3. Why did we launch Bar y + Oats?
4. Moms ed help • 71% of modern mothers work outside the home • 75% change their diets when they first became pregnant; impacting the eating patterns + purchasing decisions of the whole family • 9 in 10 admit that they have trouble finding time to prepare healthy meals • they are spending $8.6B/year in the US on convenient food options for themselves, and $20B/year for the whole family • health remains their #1 concern when deciding what to buy • and they are 24x more likely to purchase something natural or organic • still, 9 in 10 are deficient in key vitamins + minerals for health . COM
5. Our big vision • To build a new generation of healthier, happier babies + mamas • Beginning with the massive need for prepared food options that support women’s health + saves them time • Through direct-to-consumer channels, allowing for better margins, customer experience + quality control • Educating + engaging our customers through content, trusted brand partnerships + community • Expanding our product line to become the Honest Co. of functional food for the modern millennial family . COM
6. • Fully prepared meals sold in subscription or non-recurring plans • Backed by a quantitative nutritional commitment that exceeds the standard recommendations for female health • Including curated menus that fulfill pregnancy + breastfeeding requirements • Ranging from $66-$375/week • With an option to purchase snacks or gifts • Delivered to your doorstep Our go-to-mar t . COM
7. But isn’t the meal delivery spaÎ saturated?
8. Online 6% Offline 94% . COM nope… Baby + Toddler Food Sales ‘15 Online 8% Offline 92% Fresh Food Sales ‘15 Online 13% Offline 87% Delivery + Take-Out Sales ‘15 Morgan Stanley, “Are Groceries the Next Big Driver of Global E-commerce”, 1/22/16
9. What this means • Online US food sales are expected to grow at a CAGR of 21% annually for the next 3 years • By 2025 up to 65% of food purchases will be made online • This means $36.5B dollars will move online for delivery + takeout • And $188B-$236B dollars will move online for fresh grocery + CPG • There is a huge opportunity for new brands catering to different diets + lifestyles to gain market share, loyalty and trust among the new millennial consumer . COM
10. Our val FULLY PREPARED MEAL KITS TAKE-OUT ONLINE GROCERY . COM convenеnÎ nutrеnt- density transparency f xibility
11. Our baby pha Customer Value 82% revenue from repeat purchasers 56% revenue from subscription $1,200 rising subscriber LTV - $142 to acquire $119 average a la carte transaction - $19 to acquire Customer Adoption over 435 transactions YTD 7.5 week average subscriber retention time serving NYC (since 9/15/16) + metro area (as of 7/5/16) 4,300 user email mailing list Customer Love 75 NPS and… as of July 31, 2016
12. Subscriber sinÎ oct. ‘15 I think I will be upgrading my subscription plan soon, because my husband loves the meals so much! Best, Kai Subscriber since April “16, Upgraded Sep. ’16 Thank you SOOOOO much for starting this meal plan, I am excited to be a part of it. Happy I do not have to cook, and happy to know I am getting all my nutrients. I am 3.5 months pregnant, and doctor just told me my triglycerides levels were high. I eat healthy, but obviously I need to do more. Thanks again :) Tara Subscriber since August ‘16 I wanted to write to say how happy I've been with the service so far. Everything has been really tasty. Today I'm having the seasonal Maki rolls and it's probably one of the best snacks I've ever had. Thanks, Elhaam Subscriber since April ‘16
13. Revenue ($) 0 4000 8000 12000 16000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Revenue Marketing *actualized through Aug. ’16, projected from Sep ‘16 residual lift from April spend industry summer slump web relaunch/bug fixes 2016 trajectory
14. average transaction price: $160 cost to acquire: $40 ROAS: 4x gross margin: 54% gross profit $: $64.80 operating margin: 17% profit: $27.20 *data as of EOM July 2016 Unit economics average transaction price: $157 cost to acquire: $19 ROAS: 8x gross margin: 40% gross profit $: $55.20 operating margin: -78% profit: ($122.46) Today (Y1) Tomorrow (Y3)
15. Where we’re going
16. Raising mo y to capture the mar t . COM rapidly scale customer base build out scaleable infrastructure expand service to additional regions lock in premium brand partners grow LTV by expanding product line
17. Our roadmap . COM $ Annual Run Rate Monthly Transactions Corp. Employees* Gross Margin Sep “16 $240k 130 10 40% Jan “17 close seed round soft launch new website + branding $480k 260 15 42% Jun “17 $100k >50 4 30% launch northeast corridor retail distribution for CPG $1.5m 811 18 44% Dec “17 $14m 7.5k 20 50% Dec “18 $60m 32k TBD 52% Dec “19 $110m 59k TBD 52% Dec “20 *only includes salaried employees, not kitchen labor launch midwest launch west coast close series A launch B+O Baby launch B+O Family close series B
18. Market Size: $7 Billion Market Size: $5 Billion* Market Size: $80 Billion *by 2026 BABY FOOD FAMILY STYLE MEAL KITS NATURAL + ORGANIC CPG O ortunit for expansion . COM
19. • Raising: $1.5m Seed Round • CLN 15% Discount • IOI by 10/15/16 • Closing by 12/15/16 Additional Overhead 10% Marketing 40% Infrastructure 50% Infrastructure Marketing Additional Overhead 4,225 w subscribers = $5 reven The terms . COM
20. Ashly Yashchin, CEO Kimberly Straub, CXO Alfa Muzio, Executive Chef Devin Sullivan, Operations Bonnie Johnson, Nutritionist, RD The Team Michelle Muller Mom CPG Expert Bryan Janeczko Meal Delivery Expert Alisa Vitti Hormone Health Expert Our Advisors
21. Contact: ashly@barleyandoats.com https://gust.com/companies/barley-and-oats https://angel.co/barley-and-oats
22. Rсearch https://techcrunch.com/2015/05/07/a-secular-shift-to-online-food-ordering/ https://www.internetretailer.com/2016/01/29/online-sales-will-reach-523- billion-2020-us https://www.morganstanley.com/ideas/online-groceries-could-be-next-big- ecommerce-driver https://www.organicconsumers.org/news/demand-organic-food-growing-faster- domestic-supply http://exponential.com/advertising/millenialmomswhitepaper/ Millenial%20Moms%20Whitepaper.pdf https://www.statista.com/topics/1218/baby-food-market/ http://blog.smithbrosagency.com/2015/03/expo-west-2015-trend-report-healthy- snacks-driving-the-growth-of-natural/ https://www.fastcompany.com/3046685/most-creative-people/the-5-billion- battle-for-the-american-dinner-plate . COM