FEAST Creative Foods

FEAST Creative Foods is a special type of strategic investment company.
We bring innovative food and beverage startups to China, the world's biggest consumer market!

In 2013, China’s grocery market crossed the one trillion-dollar mark and became the largest food and beverage market in the world. Since then, this growth has accelerated even further and it is without a doubt that the future of the world's food industry will be shaped in China.
Over half of the population here now lives in cities. The young urban middle class dominates new consumer trends and is hungry for innovation. Their curiosity and open attitude towards new food concepts will decide which companies thrive and which ones fail.
Most startups in the food and beverage business do not have the knowledge or financial fire power to set up shop on a different continent. Feast Creative Foods is a strategic investment company. We work with innovative F&B brands and bring them to China. We're hands-on, part of the team, committed and true entrepreneurial partners on the ground and at the frontlines in China's supermarkets. We work hand-in-hand with our partner startups to bring their awesome products to the world’s biggest consumer market. Bang!!

For more information, please visit our website! ' https://www.feast-china.com '

Transcript

1. Introduction I May 2019
2. kind of is a strategic investment company
3. We bring innovative food startups to China, the world’s biggest consumer market
4. For generations, consumers have been deluded by Big Food and they have started to realise that. The Fruit Loops of the world are fast loosing market share. And the past years have seen a vast number of innovative food and beverage startups offering more transparent, more individualised and more nutritious alternatives. Some industry observers already refer to the food industry as "the new internet". The Food Industry is Changing
5. China is Upgrading its Consumption Patterns The rise of the middle class, the increase of products available on the market, coupled with a lack of confidence in local food supply chains have led to major changes in the grocery shopping landscape. China has quickly become the biggest marketplace for nearly all FMCG categories. Food continues to secure a lion share of the overall spending behaviour outperforming transportation, the next ranked category, by a factor of 2x. By 2020, the Chinese online grocery market is set to be worth over $ 280 billion. Providing enough food at acceptable levels of quality and at an affordable cost is shaping up to be one of China’s most challenging issues. And sales of imported food will continue to grow at double digits.
6. Our Mission: An Unfair Advantage Feast Creative Foods is a China-focused platform investing in emerging food and beverage brands. Our team has decades of experience in marketing, e-commerce, media and China's food industry. And we pulled our resources together to support international F&B startups in China like no other concept. We are their import agents, community builders, marketing experts, brand ambassadors, distributors, networkers, sales managers, trade show representatives and their own China office. Our goals are fully aligned. We work completely transparent and we're just as excited about new food concepts as you are. Our sole purpose and mission is giving our partner startups the backing, budgets and brainpower necessary for a successful launch in China.
7. Documentation Label compliance Customs clearance Registration Food product entering China Inspection declaration Customs declaration Tax payments Customs inspection Customs clearance Sample inspection and label auditing Sanitary certificate issued Bringing a Food Product to China If you are launching a food product in China, there are many stakeholders to handle in a complex linguistic, cultural and regulatory environment.
8. Feast benefits from10+ years of experience in China’s food & beverage market via the operations of its founding parent ESB Group & its subsidiaries (www.esb-foods.com). ESB leverages Feast platform by providing key competencies in ‣ Logistics services ‣ Import & customs clearance ‣ Inventory management ‣ China sales network & experience ‣ Quality assurance Our Background Annual Growth (CAGR): 81% >100.000 tons annual turnover Visible market share 30 countries of origin 7 categories (frozen foods, snacks) > 220 SKUs >140 plant numbers >100 suppliers Founded in 2009 Offices in Shanghai and Hefei 45+ headcount Large recurring customer base Category expert (frozen) Multiple sales channels 11 port destinations in China >80 customs agencies
9. 4 Paths Lead to China Importers & distributors Sales agents Rep. office or direct sales Marketing support - - - ✔ Alignment - limited ✔ ✔ Transparency - - ✔ ✔ Speed medium faster slow full speed Overall risk low higher max. risk - Investment medium medium max. investment entrepreneurial There are many different ways of launching a brand in China. Most larger F&B companies would opt for setting up an own organisation, building it brick by brick and with huge resources, both capital and time. Smaller companies usually work with agents or distributors, but it can be a challenge finding an agent who shares the same passion for their products. Feast offers an entrepreneurial path into China. We finance the expansion in exchange for an equity stake in our partner brands. This way we have ”skin in the game” with our goals fully aligned. For startups there’s no faster and no more efficient way of entering China.
10. I Initiation (1-3 months) II Brand Launch (2 months) Every brand needs a different China strategy and every product will face different hurdles on the way to the hearts and shopping baskets of the Chinese consumers. We vest upon an agreed valuation. Over 4 phases, we develop and implement an individual launch strategy for each partner brand with clear KPIs and deliverables. 4 Phases of Vesting ‣ Sign MoU ‣ Market study ‣ Focus groups and and product tastings ‣ China workshop together with brand owners ‣ Develop Chinese label ‣ Develop marketing and communication strategy ‣ First test order ‣ Sign vesting contract ‣ First regular product shipment ‣ Hire brand ambassador / sales manager ‣ Official brand launch ‣ Launch social media channels
11. III IV Growth / Sales (6-9 months) Evaluation (1month) … And One Common Goal ‣ Activate marketing plan ‣ Grow sales network ‣ Organise brand events ‣ Formulate initial business case for evaluation and long-term cooperation ‣ Demonstration of sustainable business model in the territory ‣ Sales projection after phase IV The big advantage compared to traditional distribution models is that our goals are completely aligned and the brand owners know exactly what’s happening with their product in China. The 4 phases also give us enough time to build the trust necessary for a successful cooperation.
12. Feast Holdings (Singapore) Holds assets Cooperation & Vesting Agreement Brand Feast OpCo (China) Operational execution, sales, marketing, brand building Distribution Agreement Ships goods Buys goods … And One Common Goal The Cooperation & Vesting Agreement Regulates the equity investment targeting a minority stake of 5-10% of ordinary shares by means of reverse vesting. Vesting is triggered upon deliverables within the 4 distinctive phases over the initial engagement period (typically 9-18 months) with a commitment of payment-in-kind of up to US$ 500k per brand. The Distribution Agreement regulates the use of intellectual property rights and commercial terms for procurement. The Feast Framework
13. What We are Looking for We are looking for enthusiastic entrepreneurs with a vision and a mind-blowing product compatible with the demand in China's supermarkets, restaurants and online stores. We seek to partner with the best-in-class food innovators and management teams to help accelerate their international growth and boost their strategic value with a meaningful presence in the world's largest consumer market. We are looking for companies that ‣ turn the old food industry upside down ‣ are planet positive ‣ offer healthy, nutritious and sustainable products ‣ have a solid, diverse team ‣ have a clear growth strategy ‣ have existing products in the market
14. Our Target Categories and Their Market Size in China Beverages Snacks 0 175 350 525 700 2012 2014 2016 0 275 550 825 1100 201020132016 0 3,25 6,5 9,75 13 2012 2015 2018E 0 5 10 15 20 201020132016 0 75 150 225 300 2011 2014 2017 Baby Food Breakfast Cereals All numbers in Billion CNY Functional Food / Supplements
15. Portfolio
16. 1 % 1 % 4 % 10 % 23 % 61 % Ecommerce Distributor Other HoReCa Corporate Retail Case Study (Pilot Case) 0 5625 11250 16875 22500 Mar Jun Sep Dec Mar Jun Sep DecMar monthly total units sold monthly China-Exports 8 % 1 % 2 % 3 % 45 % 41 % Events & Ads Existing network Client refferal Freelance sales Social media Other Channel Revenues Regional Distribution Shanghai Jiangsu Zhejiang Xinjiang Shanxi Beijing Tianjin Shandong Guangdong Hong Kong One year after bringing Noveltea to China, the People’s Republic now accounts for 42 percent of the company’s global unit sales. If you are interested in the details, ask us for our Noveltea case study. Total Sales vs China-Exports Client Sources
17. To be successful in China, it’s not enough to list your product on Taobao. The typical Chinese consumer requires 9 brand touch points* before making a purchase decision. That’s 4 more than in the most Western countries. For our partner brands we are … *McKinsey China Shared office space China market representation Distributors Brand ambassadors Event promoters Community builders Import agents Trade show representatives Social media managers
18. China’s Digital Customer Journey Social Inspiration Friends & Family Inspiration Offline Inspiration Research Purchase Sharing
19. Route-to-Market Partners ‣ Gourmet food and drink shop ‣ > 3 million followers ‣ Regular content offering with dedicated editors, video producers, food science experts & freelance writers ‣ 80s and 90s generation, ‣ 60 % female ‣ China’s premium online store ‣ 20 million followers on WeChat and over 3 million daily video views ‣ Distributed in >50 main channels online & offline ‣ Customers mainly 70s and 80s generation, ‣ mainly male followers We have strategic partnerships with several of the largest Chinese e-commerce platforms and online retailers. Penguin Guide, our preferred launch partner, has so much social media pull, that their promotions usually even have a measurable effect in the brand’s own home market.
20. Founders & Core Team Janis is a former journalist and entrepreneur who has been living in Shanghai since 2002. Food is his passion. Janis Vougioukas 
 CEO Nicolas Stöckert Strategy Nic is a food entrepreneur who started his China journey in 2005. His company ESB provides key services to Feast. Benedikt joined ESB in 2012. He spent years as a MD at tech startups and consulted mid- cap companies as finance specialist. Max is the founder and former CEO of Lazada, the leading e-com platform in SE Asia. In 2016, he sold the company to Alibaba. Benedikt Stöckert Finance Max Bittner Angel/Advisor April Wang Sales Director Justin Jing Designer Cindy Fan Creative Director Rita Zhai Logistics Elyn Gao Analyst Rachel started her long career in retail at industry giants such as P&G and Carrefour where she worked as a Purchasing Director. Tom Su E-com Manager Monica Fan Sales Manager Summer Liu Administration Rachel Han Operations Lana Khovracheva Event Manager
21. Connect Shanghai Munich Global Feast Creative Foods Ltd. shanghai@feast-china.com RM 204, No.664 Xinhua Road Changning District, Shanghai, 200052 PRC 上海海市⻓长宁区新华路路664号
 万宝国际商务中⼼心204室 邮编：200052 Feast Germany munich@feast-china.com ℅ GFEP Family Equity Maximiliansplatz 15 80333 Munich Germany www.feast-china.com