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Loeb's crunch investor deck 2015.v7

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Page 1: Loeb's crunch investor deck 2015.v7
Page 2: Loeb's crunch investor deck 2015.v7

MARKET OPPORTUNITY

LOEB’S CRUNCHTM IS A CONSUMER GOODS COMPA N Y ADDING A COMPLETELY UNIQUE, FRESH PRODUCT TO THE FOODS INDUSTRY.

W ith a variety of crispy, crunchy, and healthy toppings unlike anything now available, We’re

Ready to Capitalize as a First-Mover in the quickly expanding condiments market.

According to IBISWolrd, a global business intelligence

leader, increasing

disposable income and

new healthy product

offerings will drive demand

in the Seasoning, Sauce,

and Condiment industry in

the US.

The $21 bn industry grew at 2.4% annually between

2010 and 2015, despite

price increases due to

higher manufacturing

costs.

In 2014, sales of sauces, seasonings, and

condiments benefited from

new launches, especially

premium products from

numerous small companies.

Today, consumers are

searching for better,

premium condiments and

sauces to create meals at

home that are higher-quality, but still less expensive than

dining out.

The industry is expected to grow by 2.6% in 2015,

and slightly faster during

the next five years.

Page 3: Loeb's crunch investor deck 2015.v7

PRODUCT

VA LUE PROPOSITION TO CONSUMERS: VA LUE PROPOSITION TO CUSTOMERS:

• Fast product turnover

• 1-year shelf life

• Family of products with new flavors and new vegetables

• Celebrity endorsements

• Excellent PR

Sprinkle as much flavor and crunchiness as you want on any meal without feeling guilty.

• All-natural

• Just vegetables, flour, and vegetable oil

• Low fat

• Low sodium

• No cholesterol

• 0 grams of trans fat

• Just 40 calories per serving

Page 4: Loeb's crunch investor deck 2015.v7

CUSTOMERS: OVER 8000 RETAIL LOCATIONS

Page 5: Loeb's crunch investor deck 2015.v7

CUSTOMERS: OVER 2000 FOOD SERVICE AND CONVENIENCE STORES

CONVENIENCE RESTAURANTS HEALTHCARE

AMUSEMENT PARKS

STADIUMS

UNIVERSITIES

Page 6: Loeb's crunch investor deck 2015.v7

COMPANY STRATEGY

ESTABLISHED MARKET PRESENCE • National Retail Footprint -Over 8,000 Locations

MARGIN IMPROVEMENT/ EXPAND IN STORE • Improving Margin - Switched Out to Pouches - Margin Increase North of 60%

• Expand In-Store Presence - Pickle Crunch - Jalapeño Crunch

- Fried Green Tomato Crunch

- Gluten Free Onion Crunch

• Marketing Blitz - PR/Sampling/Demos/Social Media/ Sponsorships(hyperlocal approach)

- Cross Merchandising Program

- Content marketing online

• Channel Expansion - Food Service/Convenience/Private label/delivery and precooked foods.

EXPAND NATIONALLY

• Expand Model to

Additional Regions - 40,000 Locations

• Establish Brand/ Consumer Education

- In-Store Demos - Guerrilla Marketing

- Public Relations/ Social Media

• National Food Service/ Ingredients Partnerships

• International Expansion

LAUNCH BRAND INTO HIGH-VA LUE SPACE

GROW AWARENESS INCREASE VELOCITY

INCREASE HH PENETRATION ESTABLISH GLOBAL BRAND

2013 - 2014 2015 - 2016 2017 - 2019

Page 7: Loeb's crunch investor deck 2015.v7

USE OF PROCEEDS

Marketing & Trade 600,000.00$

Accounting, Legal 100,000.00$

Product Development 500,000.00$

Slotting 1,000,000.00$

Insurance 20,000.00$

Manufacturing 500,000.00$

Product Inventory 1,200,000.00$

Payroll 840,000.00$

Rent 120,000.00$

Supplies 20,000.00$

Miscellaneous 100,000.00$

Total Fixed Costs (TFC) 5,000,000.00$

Page 8: Loeb's crunch investor deck 2015.v7

SALES

ONION CRUNCH SALES GROWTH IN TOP ACCOUNTS IN 2014

SALES

JAN - DEC 2013

JAN - DEC 2014

Y/Y GROWTH

GROSS SALES REVENUES

Wal-Mart Stores, Inc.

$ 480,911

$ 568,592

18%

Regal Distributing Co.

$ 88,908

$ 127,312

43%

Kroger (on-shelf)

$ 34,101

$ 69,464

104%

PFG AFI Foodservice

$ 26,112

$ 34,080

31%

Soofer Company

$ 23,503

$ 35,616

52%

iHerb Inc.

$ 7,692

$ 19,254

150%

TRADE DISCOUNT RATE 42% 30%

Page 9: Loeb's crunch investor deck 2015.v7

FINANCIAL PROJECTIONS

Year # SKU'S per

store Store Count

Ave. weekly Unit Volume by

sku Ave. Unit $ $ Weekly Sales $ Annual Sales

2016 3 7,000 2 $ 1.60 $ 67,200.00 $ 3,494,400.00

2017 4 10,000 2 $ 1.60 $ 128,000.00 $ 6,656,000.00

2018 5 15,000 2 $ 1.60 $ 240,000.00 $ 12,480,000.00

2019 6 20,000 3 $ 1.60 $ 576,000.00 $ 29,952,000.00

2020 6 25,000 4 $ 1.70 $ 1,020,000.00 $ 53,040,000.00

Page 10: Loeb's crunch investor deck 2015.v7

MANAGEMENT

NICK LOEB — CEO

Mr. Loeb earned a Bachelor of Science in Management and Finance from the A.B. Freeman

School of Business at Tulane University in 1998. He began his career working at Universal

Studios in corporate development and motion picture finance before forming IPC

(International Production Company) where he produced the MGM film THE SMOKERS with

Quincy Jones and a documentary series called THE LIVING CENTURY with Executive

Producer Barbara Streisand. He then formed Loeb Investments: a private investment

company focusing on real estate and small ventures. Aeer moving to Florida, Mr. Loeb

began working at Lehman Brothers, in a business development capacity, making

introductions and generating deal flow to the firm’ s wealth management, investment

banking and real estate divisions. He was invited to speak at Tulane University to the

MBA’s on the highs and lows of private banking. He then founded Carbon Solutions

America (CSA) where he previously served as a Managing Partner providing climate

change advisory services to corporate and government clients — he now serves on their

board of directors. In 2006, he formed Loeb’s Foods and began to develop his latest

venture, the Onion Crunch brand. In April of 2011, he finally launched Onion Crunch—

securing his first customer. Within a year, he was able to get Onion Crunch into over 7000

stores generating over a million dollars in revenue.

Page 11: Loeb's crunch investor deck 2015.v7

MANAGEMENT

BOB ROSKO — CFO/COO

After College, Mr. Rosko started his career out with Anheuser-Busch and became a division

manager for their non- alcoholic division in the New York tristate area. He then became CEO of

Golden Distributors, Inc., a snack food distribution company. In 1996, Mr. Rosko founded and

became CEO of Edison Technologies, LLC — a complete back room solution for small and medium

size businesses that want to focus their energy towards sales and marketing. Some of Edison’s

clients over the years have included, but are not limited to: Cape Cod Potato Chips, Stella Doro

Cookies, On-The-Border Torts, Brynwood Partners, The Farmers Cow dairy products, Cibolo

Capital, Manhakan Food Brands, LLC and Onion Crunch, Inc. Over the past several years, Bob

has sat on boards as a member or advisor for several companies: Miguel’s Foods, LLC — Eagle I

Capital Corp — Manhakan Food Brands, LLC — and Onion Crunch, Inc.

LISA PYROS— VICE PRESIDENT OF NATIONAL SALES Ms. Elizabeth (Lisa) Pyros is vice president, sales with over 20+ years of broad-based background in consumer packaged goods with extensive food selling experience. Most recently, she served at Castella Imports Inc. as regional account manager for a specialty foods importer and manufacturer servicing retail, foodservice, club and convenience classes of trade. Ms. Pyros possesses an extensive food industry knowledge given her experience and training with DANONE, PepsiCo/Frito Lay (PBG-NYSE), and Nabisco. She has a B.A. degree in business administration from NY Institute of Technology, Old Westbury, NY

Page 12: Loeb's crunch investor deck 2015.v7

MANAGEMENT

MICHAEL ROBERTS— DIRECTOR OF SALES, MIDWEST Mike comes with 20+ years CPG background that ranges from Specialty Foods to Beverages into the Grocery Channel division. Mike's most recent position was with Peet's Coffee & Tea as the Great Lakes Central Sales Manager. This position saw Mike with the largest growth within the company over the last 2 and a half years in the grocery and mass market stores. He has extensive sales experience with large companies including Anheuser-Busch (Eagle Snacks), Diageo, Brown-Forman, Bacardi and Kendall Jackson. Mike's background also includes working within the natural food and cheese/deli areas (POM Wonderful, Kashi, Horizon, BelGioioso & Applegate Farms). These opportunities have given him a wide range of categories to work with and help hone his selling skills while managing the business of Super Valu, Kroger, Safeway, Target and Wal-Mart. He has managed multiple sales teams within the Midwest and looks forward to growing the business as part of the Loeb's Crunch team. Mike has a BA degree in Psychology from the University of Kansas.

Page 13: Loeb's crunch investor deck 2015.v7

CELEBRITY ENDORSEMENTS

DONNY DEUTSCH plugs Onion Crunch® on Access Hollywood.

ROBERT IRVINE Celebrity Chef/Iron Chef

“Old Homestead Borgata

Onion Crunch® Burger is the

best f”/!&’”ing burger at

Burger Bash. TIFFANY HINES Celebrity from 90210

Eating Onion Crunch® Dip at the

Sundance Film Festival.

JOSH CAPON Celebrity Chef

“It’s great product, I have them on

my desk and just eat them.”

IVY SUPERSONIC On Howard Stern Radio

“It’s a slam-dunk… Like Heinz is to

Ketchup.”

MICHAEL SYMON Iron Chef

Places 2nd at Burger Bash at

with

his Onion Crunch® Burger.

ROBERTO JR. CLEMENTE Major League Baseball Wearing the Onion Crunch®

Hat supporting Onion

Crunch®.

LEE SCHRAGER Founder of NY and South Beach Wine

“Loved it, it’s a great product!”

Page 14: Loeb's crunch investor deck 2015.v7

NATIONAL PRESS

Page 15: Loeb's crunch investor deck 2015.v7

CROSS MERCHANDISING PROGRAMS

Page 16: Loeb's crunch investor deck 2015.v7

TRANSACTION

FOUNDER INVESTED OVER $1.3MM NATHAN’S, SOFIA VERGARA AND OTHER FAMILY OFFICES INVESTED $4MM.

Page 17: Loeb's crunch investor deck 2015.v7

THANK YOU