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BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence...

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INVESTOR PRESENTATION FALL 2018 BREW
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Page 1: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

INVESTOR PRESENTATIONFALL 2018

BREW

Page 2: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

OVERVIEW

Big Man’s Brew, Inc . p rov ides to ta l ALCBevs that

ce lebrate the legacy o f C larence “B ig Man”

Clemons.

CLARENCE CLEMONS i s a music legend, member

o f the Rock & Roll Hal l of Fame , and one o f the

most loved members o f the E Street Band.

Clarence spent 30 years by the s ide o f Bruce

Springsteen as a founding member o f the E Street

Band and 22 years p laying shows across the wor ld

wi th The Grateful Dead .

1

Fol lowers that are pass ionately engaged

wi th the C larence C lemons brand50M

2

Page 3: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

TRACTION

▪ Big Man’s Brew, Inc. is a subsidiary of Big Man’s West, LLC , a l icensing company and the ONLY official entity with publicity rights to Clarence “Big Man” Clemons name, likeness’s or images(IP).

▪ BMB has exclusive rights to Clarence Clemons across all products in the alcohol & beverage categories.

▪ BMB already launched a beer under the BMB brand, and will use this platform to expand into several other potential verticals in conjunction with BMW.

Page 4: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

WHY WE WILL WIN

4

PREMIUM BEER PRODUCTION & DISTRIBUTION

UNIQELY QUALIFIED TEAM

LEVERAGE INDUSTRY & NETWORK

Highest—quality specialty &

craft beers that are in high-

demand from the end consumer

with further innovative products

to be introduced to capitalize on

changing consumer preferences

Partner with a regional, premier

brewery that brews high-quality,

consistent beer across multiple

varieties and forms, has

flexible/small batch brewing

capability with an ability to scale, and

full packaging capability. Moreover,

we will develop strong relationships

with local distributors.

Management’s collective

network of industry

relationships, the 50M followers

that are passionately engaged

with the Clarence Clemons

brand, and the celebrity network

of friends who resonate with

and care about Clarence’s

legacy, creates a defensible

competitive advantage for BMB

.

Premier team of executives,

managers, board members, and

advisors with a successful track

record of consulting, building,

and Food & Beverage

businesses in the U.S. and

globally

4

Page 5: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

UNIQUELY QUALIFIED TEAM

5

ERV FREDERICK

Founder & Managing Partner Winnetka Park

• 28 year career at Kraft and SAB Miller

• Completed merger of South African Breweries and

Miller to form SAB Miller

• Responsible for leading multi-billion dollar businesses

including Maxwell House and Miller Lite

• Created value for brands through M&A/Alliances as

part of management team that purchased CapriSun

• Established distribution partnership with Starbucks

• Founder & Managing Partner of CreativeScale

• Select Clients:

• Unilever, Jim Beam, Miller Coors, Crown

Imports owned by Constellation Brands, Tenth

and Blake Beer Company, Pinnacle Foods, and

Bloomin Brands

• MBA at the Kellogg School of Management,

Northwestern University; BA at Dickinson College

VICTOR RUTSTEIN

Founder & Managing Partner Winnetka Park

• Has had a progressive career throughout: Seagrams,

Beam Global Spirits and Wine, Pillsbury, Ceridian,

and CurtisAlan

• Career has included roles in research, sales, new

product development, brand management, marketing,

and innovation

• Successfully navigated and created brand momentum

at all levels of the value chain including boardrooms,

marketing teams, sales organizations, retailers and

consumers

• Documented track record of brand turnarounds,

significantly growing market share, profitability and

brand equity

• MBA at Columbia University; BSB at the University

of Minnesota Carlson School of Business

ALLEN ROSEN

Chairman Of The Board

• Serial entrepreneur with proven track record of

founding, and presiding over several, healthcare

organizations over the past 30yrs

• Founder of proprietary skin care product line

UNITY™ brand, ADRx Medical, LLC, presently in

growth phase with multiple distribution channels

• Founding partner and medical director of the Plastic

Surgery Group, PA and North Fullerton Surgery

Center, LLC

• Founder of a private family owned commercial Real

Estate trust with holdings in NY, NJ, PA and FL

• NBC, CBS, Good Morning America

• Named one of the finest plastic surgeons in New

York and New Jersey, by both: New York Magazine

and New Jersey Monthly

Work Profiled:

Quoted In:

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Page 6: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

Over the past few years, the craft and specialty beer market has

dr iven the majori ty of the growth in the U.S. beer market .

GROWTH OF CRAFT & SPECIALITY BEER

23%

77%

Craft Other Domestic

111.4BTOTAL U.S. MARKET SIZE

26.0BTOTAL U.S. MARKET SIZE

8.0%DOLLAR VALUE GROWTH (YoY)

5.0%VOLUME GROWTH (YoY)

12.7%VOLUME SHARE (YoY)

Craft Beer Market Growth (2017)Total Beer U.S. Market (2017)

Page 7: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

For a beer drink to be considered a premium product, it

must be made with high-quality ingredients, should

be more expensive than regular products, and the

brand should have a long heritage and history

Premiumization isn’t as simple as just charging a

higher retail price, brands must offer added value,

authenticity, brand story and an experience, say

industry experts.

One Of The Major Growth Drivers

Of The Market Is Premiumization

“Today, 100 percent of beer

category volume and dollar

growth is driven by the high-

end, and growth of high-end

beer has accelerated the past

five years. We expect this

trend to continue for many

years to come.”

Head of Beer Division,

Constellation Brands

RISE OF PREMIUMIZATION

Page 8: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

OPPORTUNITY: PREMIUMIZATION OF TOTAL ALCBEV MARKET

6

The premiumization of the beer market is driving most of the growth that import, specialty and craft beers have experienced.

Big Man’s Brew is posit ioned to capital ize on the r is ing demand driven by changing

consumer preferences as they shif t to high -end beer brands.

8

In an age of premiumization and shift in

customer preferences, brewers and brands

must focus on new strategies, including;

increasing portfolio and channel complexity,

reducing the lead times of product innovation

and understanding consumer needs and

aspirations.

Key Takeaway:

Consumers are willing to pay more for better

quality products, exclusivity and a more

enjoyable consuming experience.

Miller Lite Corona Extra Modelo Especial Michelob Ultra Stella Artois Blue Moon

6.2%

4.5%

3.6% 3.6%

1.2% 1.1%

0.0%

2.0%

4.0%

6.0%

8.0%

Premium Brands Drive Growth in 2017

Page 9: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &
Page 10: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

GO-TO-MARKET STRATEGY

SALES CHANNELS & DISTRIBUTORS

Partner with the leading distributor in the NY/NJ Area

o Key capabilities, include; modern infrastructure for inventory

management and order fulfillment, large selling organization

with strong retail relationships and high call frequency.

o Our sales team will be knowledgeable about craft beer and

potentially have a separate specialty selling organization.

o Experienced leadership team with process controls in place

to track performance and KPI’s.

Big Man West competes in the specialty & craft beer segment of the market with a hyper targeted northeast launch

MUSIC/ENTERTAINMENT VENUES

o Our collective network will allow us to partner with leading

music and entertainment venues with national reach

o Key tactics will be PR, sampling, social media (Facebook,

Instagram, Twitter), digital media (paid, SEO, SEM), and

influencers / endorsements.

OFF-PREMISE ACCOUNTS

o Big Man’s Brew will provide artwork for sell sheets, display

cards, window banners, cooler door stickers, and shelf talkers.

o Leverage standard distributor in-house print shops to produce

and distribute most of these items to their sales force.

TRADITIONAL ON-PREMISE ACCOUNTSNeighborhood accounts, sports bar, craft beer accounts, etc.

o Essential tools for the generation of awareness at retail will

be provided

o Promotions: tap handles, coasters, glassware, tin signs,

table tents, a limited run of lighted pub signs, and t-shirts

for promotions

10

Page 11: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

The high density of fans in the

northeast United States serve as a

catalyst for global recognition of any

product among Clarence Clemons’s

50 million global fans

We envision Clarence’s aspirational rock n’

roll lifestyle to be experienced by the masses

through brand licensing deals across several

industries. His image is an ideal fit for

brandedbeers, restaurants, tobacco products,

cannabis products, and merchandise.

11

BRANDING

Page 12: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

WITH STRONG UNIT ECONOMICS…

10

The alcohol industry is designed by a three-tier distribution model; as described below, with the Brewer margin based on

its allocation to higher-margin “draught” vs. more scalable “packaged product” (glass and cans).

12

70%

30%

RETAILERS

Distributor Cost Gross Margin

73%

27%

DISTRIBUTOR

Cost from Brewer Gross Margin

30%

70%

BREWER

Production Cost Gross Margin

Page 13: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

LICENSING STRATEGY

Big Man’s Brew will expand into adjacent beverage categories, as well as potential ancillary licensing

opportunities

ALCOHOL WINE & SPIRITS NON-ALCOHOLIC

BEERS

CANNABIS-INFUSED

BEVERAGES

Potential licensing verticals include:

13

Top brewers are homing in on the continued promising craft beer category as wel l as

diversi fying in categories l ike w ine, soft dr inks, and even dairy

Page 14: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

Acquisition Price: $1B

($700M initially + $300M based on

10yr performance)

Revenue Multiple: 20x

($700M Price / $36M (2016 Sales)

2016 Sales (At Retail): $70M

2016 Sales: $36M

(After Retail Markup and Wholesale Pricing)

ACQUIRER

12

CELEBRITY BACKED BRANDS: GEORGE CLOONEY + CASAMIGOS

The success of celebrity backed alcohol brands have exploded over the last decade including numerous licensing deals and

acquisitions of companies such as Casamigos and Skinnygirl by larger brands such as Diageo and Beam Inc.

TARGET COMPANY

14

Page 15: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

Looking for growth opportunities beyond beer,

Constellation brands recently announced its $4B

bet on Cannabis.

Earlier this year, Heineken’s subsidiary Lagunitas

released a THC-infused sparkling water in

collaboration with AbsoluteXtracts. Additionally,

MolsonCoors partnered with The Hydropothecary

Corporation to work on cannabis-infused drinks.

CANNABIS INFUSED BEVERAGESALCOHOL-FREE BRANDS

15

Alcohol-free spirits and cannabis-infused drinks are rising to compete with traditional beer, wine, and spirits

ALCOHOL GIANTS SEEK DIVERSIFICATION

Page 16: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

Based on the heritage and brand

story for Big Man’s Brew, and the

rich history of Clarence Clemons,

there are ancillary licensing

opportunities that are on-brand with

huge potential.

Cigars, tobacco, and cannabis

products can be branded with Big

Man’s Bud image can help

differentiation and recognition in this

booming market.

ADDITIONAL LICENSING OPPORTUNITIES

16

Page 17: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

*THE WORLD’S 6 LARGEST

BREWERS HAVE MADE:

55 Acquisitions

10 Investments

Constellation Brands

In late 2016, Constellation

Brands announced the

acquisition of a leading US craft

brewer, Ballast Point, closely

followed by the acquisition of

Florida based craft brewery,

Funky Buddha, in August 2017,

moves which push the

company more closely to the

brewing process.

17

AB InBev

AB InBev has made 43

acquisitions & investments made

directly and through its

venture fund ZX Ventures.

AB InBev has mostly focused on

craft brewers, including US-based

Blue Point Brewing, UK-based

Camden Town Brewery, and Italy-

based Birra del Borgo.

BREWERY GIANTS SEEK INVESTMENTS AND M&A FOR GROWTH

Many of these deals have focused on product line expansion, primarily targeting high-growth craft beer brands

Big brewers have increasingly invested in the fast -growing craft beer category to mitigate

declining sales, and are already looking to expand into adjacent beverage categories

* AB InBev, Heineken, Asahi, Kirin, Carlsberg, and

Molson Coors in the private market since 2013

Page 18: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

PREMIUM VALUATION DRIVEN BY DIVERSIFICATION

Based on recent trading comparables, we believe that a 2-4x exit revenue multiple is achievable based on our

growth prospects, customer engagement, unique product positioning, and marketing strategy.

Trading Comparable Valuation AB InBev Leading Through Premiumization

18

BUD’s ‘The High End’ d ivis ion , made up o f i ts

global spec ial ty and cra f t brands, had been

estab l ished in 22 markets , accounting for roughly

70% of the h igh -end opportuni ty wor ldwide, as a t the

end o f FY 2017.

W hile the brands represented on ly 11.4% of BUD’s

to ta l revenue outs ide the i r home markets in 2017,

they contr ibuted to over 35% of the to ta l net revenue

growth.

This presents BUD wi th a cons iderable opportun i ty to

encourage consumers to t rade -up to more h igh -end

products , in both deve loped and in emerging markets.Constellation Diageo AB InBev Boston Beer Heinken Molson Coors Calrsberg Kirin

6.7x6.4x

5.1x

3.5x

2.7x2.2 2.2x

1.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

Page 19: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

ELLIOT GROVER

Advisor

• Spent 28 years at Mars Chocolate North America

• Background in operations, marketing, brand management,

new business development, procurement and licensing

• Member of Senior Management Team

• Responsible for setting strategic direction and

delivering results for a $3.5 billion business unit

• North American Chief Procurement Officer

• Oversaw of 100 associates in a department responsible

for $2 billion in annual expenditures

• Responsible for raw material & packaging buying,

commodity hedging, and negotiation of advertising,

consulting, sponsorship and licensing agreements

• Limited partner with the SoundBoard Angel Fund

• Advisory Board of Grover Pro Percussion & Morristown

Medical Center

• University of Chicago Booth School of Business, MBA

NICK CLEMONS

Advisor

• Eldest son of Jackie and Clarence

Clemmons, a prominent member of Bruce

Springsteen’s East Street Band

• Nick has shared the stage with Bobby

Bandiera, John Eddie, New Riders of the

Purple Sage, Jimmy Vivino, and Clarence

Clemons

• Nick's band, The Nick Clemons Band, has

been touring and brings an original fusion

of rock, jazz and funk to venues all across

North America

• Other artistic interests include acting, building a

production company to develop and manage

other musicians, and producing events for

charity across the United States

• Producer of the Annual Asbury Park

Comedy Fest

DAVE MILLER

Advisor

• Chief Operating Officer at City Winery

• Career Experience:

• Regional Vice President at Landry’s, a

subsidiary of Fertitta Entertainment, whose

parent company Station Casinos, who acquired

Joe’s Crab Shack parent company for $175M on

August 2017

• Regional Vice President at Joe’s Crab Shack

• Director of Operations at Hard Rock

International

• General Manager at Hard Rock Café

• General Manager & Director of Operations at

The Briad Group, which operates a chain of

franchise restaurants and hotels in the

Northeastern United States

19

OUR ADVISORS

Page 20: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

SALES REP / MERCHANDISERS:

EXECUTIVE SALARIES:

Responsibilities include: all strategy,

brand/product development, financial,

operations/logistics (Yr.1 and Yr.2),

marketing and sales function;

including distributor management.

Integrated marketing approach as

described by our go-to-market strategy

SALES & MARKETING:

Two retail specialists to support our

expansion into NJ/NYC

Includes legal, compliance, insurance, etc.

STARTUP EXPENSES:

20

USE OF FUNDS

$2.0M35.0%

30.0%

20.0%

5.0%

10.0%

Executive Salaries (1) Sales Reps/MerchandisersSales and Marketing Investment Start-up Expenses/Legal ComplianceOpening Inventory & Working Capital

Page 21: BREW...OVERVIEW Big Man’s Brew, Inc. provides total ALCBevs that celebrate the legacy of Clarence “Big Man” Clemons. CLARENCE CLEMONS is a music legend, member of the Rock &

CONTACT USName: [ ]Email: [ ]


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