CONFIDENTIAL BRAND OVERVIEWWinter 2021
MESSAGE FROM THE FOUNDERS
We founded BeatBox Beverages almost 9 years ago with the mission of bringing
people together and having fun; centered around music that connects us all
globally. We wanted to build a brand that captured the feeling of being at a music
festival with your best friends, not having a care in the world other than what stage
you were going to hit up next. As founders this was an easy brand to represent,
because this was authentic to our core with our passion for music, new connections
and all-around great times. We looked up to experiential brands such as Red Bull,
and truly felt from day one that we would be the Red Bull of the alcohol space,
building a global experiential brand bringing a feeling of joy and connectedness
across the globe.
With no prior industry experience, we utilized the entrepreneurial spirit of Austin, TX to get our product off the ground. We met incredible people that
helped us navigate the complex world of the three tier-system and how to build a great brand. One of our biggest breaks occurred on national TV,
when Mark Cuban decided to invest $1m in our vision. He understood that we weren’t selling wine, we were selling FUN. And we continue to do that
to this day, 6 years later. Selling fun shows up in everything we do, from our packaging to our marketing to our entire team.
In addition to Mark Cuban, we've been fortunate to have like-minded celebrities join our company by making cash investments into the business
and helping us create brand awareness. From MTV's Rob Dyrdek, who generously featured BeatBox on his hit show “Ridiculousness”, to global
headlining DJ's Party Favor, Louis The Child, G.T.A, and others who authentically put BeatBox in front of our core consumer, we believe we've only
just scratched the surface on what these partnerships can bring to the brand. We have now figured out the perfect mix of product, team,
wholesaler network and marketing strategy. As of January 2021, our TTM revenue on the BeatBox Beverages brand is over $7.2m, with depletions
over 305,000 case equivalents. Nielsen recently named us the fastest growing single-serve wine product by cases, dollars, and velocities in January
of 2020. With consumer habits increasingly moving in the direction of ready to drink, flavor, “better for you”, and alternative/eco-friendly packaging,
BeatBox is positioned incredibly well to continue to disrupt the beverage industry in the current environment and beyond.
The foundation is in place and the white space is there for continued exponential growth. Much like our DJ and music partners who perform all over
the world, we feel the opportunity for BeatBox to be a global brand is there. There is a lot of work to be done, and we are incredibly excited for the
next chapter as we continue to make our dreams a reality.
Cheers,
- Justin, Aimy & Brad
Brad Schultz, Aimy Steadman & Justin Fenchel
THE BEATBOX WAY: CORE VALUES & CULTURE
“ WE THINK LIKE OWNERS
BECAUSE WE ALL ARE”
• Everyone has ownership and a voice in the business
• BeatBox treats the company resources as their own
• The BeatBox team are the Company’s Brand Ambassadors
• Management places a high-degree of value on living out and enforcing the Company’s core values
01
“ WE ARE THE CHANGE WE WISH TO
SEE
IN THE ALCOHOL INDUSTRY”
• BeatBox believes diversity is an advantage with female leaders at every level
• Innovative products that disrupt fast-growing categories
• Integrated B-Corp business model that drives a more inclusive and regenerative economy “For The Future”
02
“ WE ARE A SOLUTION FOR OUR
WHOLESALE & RETAIL PARTNERS”
• Not afraid of setting big goals and pushing to exceed
them
• There are no traffic jams along the extra mile
• Implement products that are designed to be incremental to traditional beer portfolios
03
“ WE ARE KIND EVEN WHEN IT’S
TOUGH”
• Partners want to work with BeatBox; people want to
work for BeatBox
• BeatBox knows its brands drive what people say when they leave the room
• The Company has a strong moral compass and a strict policy to honor and respect everyone
04
“ WE KNOW THERE IS
ALWAYS A SOLUTION”
• Led by a team of founders who find solutions
• Approach all challenges with a proposed solution
• Every NO brings BeatBox closer to a YES
• Identify and implement better solutions through rapid testing
05
“ WE KNOW HOW TO HAVE FUN”
• BeatBox doesn’t sell alcohol, BeatBox sells FUN
• Believe WINNING IS FUN
• Enjoy the journey and celebrate successes together!06
BeatBox recognizes that strong values and culture lead to a strong business. The Company is dedicated to living out its core values
and emphasizes listening to its team members and celebrating successes, all while having fun.
BEATBOX BEVERAGES INTRODUCTION
2012Year
Founded
Austin, TXCompany
Headquarters
3Years Selling
Single-Serve Tetrapacks
~200Wholesaler
Partners
35States
(Distribution Footprint)
$13.5MFY 2021P
Gross Product Revenue
666kFY 2021P Volume
Std. Cases (CEs)
95%FY 2021P YoY Revenue
Growth Rate
Building the Beverage Brand of the FUTURE
BeatBox was founded on the belief that future generations will continue to demand products that
authentically connect with
their lifestyle. The Company’s mission is to create cutting-edge beverage brands that speak to
innovative individuals.
2017
COMPANY HISTORY
2012-
2013
2014 2019-
2020
2016 2018BeatBox Beverages was
founded as a business
school project at The
University of Texas in Austin.
BeatBox gains
traction as local
support grows
BeatBox founders
land $1 million
investment from Mark Cuban on
Shark Tank.
BeatBox introduced its eco-friendly
single serving product and sales
began to take off.
The Company aligns distribution
network with beer network and hires
industry veterans, growing sales
200%+.
throughout the Austin area & retailers like HEB jump on board.
The Company’s founders appear on MTV’s hit TV show, Ridiculousness, with the show’s host, and BeatBox investor and advisor, Rob Dyrdek.
BeatBox Beverages, which has
become somewhat of
household name associated with
a number of the country’s
largest, most influential music
festivals, participates in its first
national festival, which proved
to be a great success.
BeatBox launched their sixth flavor, Peach Punch, and was able to realize two successful
initiatives which massively expanded their gross margins, setting them on the final path to profitability.
INNOVATIVE & EXPERIENCED MANAGEMENT TEAM
Name & Title BeatBox Tenure Prior Experience
Justin FenchelCo-Founder, Chief Executive Officer
9 years
Aimy SteadmanCo-Founder, Chief Operating Officer
9 years
Brad SchultzCo-Founder, Chief Marketing Officer
9 years
Hanna SwansonVice President of Marketing
2 years
Tony ZangaraVice President of Sales
<1 year
Tim PrimusVice President of Operations
<1 year
Jeffrey McNallyVice President of National Accounts
2 years
BeatBox is led by innovative founders and seasoned beverage industry executives that have
successfully created and/or scaled early-stage beverage and CPG brands.
WOMEN IN LEADERSHIP
BeatBox is proud to have women in leadership in every level and department of the company.
Aimy SteadmanCo-Founder/COO
Ashley ZielinskaMidwest National Account Executive
Rachel GreeneMidwest Regional Sales Manager
Hanna SwansonVP of Marketing
Angela SchmidtCentral Regional Sales Manager
Julie EdwardsNational Account Executive
Liana Duvall West Coast National Account Executive
Tracy Martin Accounting Manager
Cindy CrowellDirector of Operations
DELICIOUSLY POTENT (11.1% ABV)
ECO-FRIENDLY TETRAPAK PACKAGING(Trend-Right, Thoughtful Packaging)
LOW CALORIE / WINE-BASED(130 Calories, 8 Carbs & Gluten-Free)
MILLENNIAL FOCUSED(Highly Connected and Influential Customers)
FESTIVAL / PARTY INSPIRED(The Ultimate Party Beverage)
SINGLE-SERVE RETAIL PACKAGING(500ml Tetra Pak)
ONE OF THE BEST SELLING RTD
COCKTAILS IN THE USthat Reinvented a Boring Category.
BEATBOX HIGHLIGHTS
Blue Razzberry Pink
Lemonade
Tropical
Punch
Fruit PunchFresh
Watermelon
Peach Punch
The WORLD’S TASTIEST PARTY PUNCH
with ZERO sugar and a lower ABV
ZERO SUGAR HIGHLIGHTS
SAME GREAT FLAVORS(Pink Lemonade, Blue Razzberry, Fresh Watermelon)
SAME PRICE POINT AND MARGIN PROFILE($3.49 each, Same High Margins)
“BETTER FOR YOU” BEVERAGE(ZERO Sugar, & 6% ABV)
PARTY LONGER(Lower ABV and ZERO sugar keeps the party going)
NEW GEOGRAPHIES, MARKETS & OCCASIONS(Opening up opportunities in all of Pennsylvania, New Jersey, and others)
CURRENT DISTRIBUTION FOOTPRINT
BeatBox currently distributes across 35 states and aims to reach national distribution by the end of 2024.
Note: As of 3.2.2021
$ SalesVol.
SalesCWD
$87,319 1,491 58.1
$42,257 623 28.0
$32,346 412 42.1
$24,087 90 29.2
$14,355 94 23.1
$14,353 151 40.4
$9,534 52 10.2
$8,586 120 3.2
$8,064 21 24.0
$7,179 140 15.9
$2,704
1,512
1,502
936
824
768
621
450
355
336
BEATBOX BEVERAGES
MONACO COCKTAIL
HIGH NOON SUN SIPS COCKTAIL
SKINNY FREEZER COCKTAIL
ON THE ROCKS COCKTAILS
CUTWATER COCKTAIL
BUZZ BALLZ COCKTAILS
CANTEEN SPIRITS COCKTAILS
JOSE CUERVO COCKTAIL
TWISTED SHOTZ
UNPRECEDENTED DISTRIBUTION OPPORTUNITY
Source: Source: IRI w/e December 26, 2020
(1) Volume measured in 9L Case Equivalents
While BeatBox is wine-based, as Mark Cuban said, they don’t sell wine they sell fun. They are far more comparable to RTDs than any wine product. In
addition to having the highest $ sales per point of CWD of the top ten RTDs, BeatBox is subject to a lower federal excise tax and has a broader potential
distribution footprint than other RTDs due to its wine base.
$ Sales per Point of CWD – Top 10 U.S. ($000s) $ Sales, Vol. Sales & CWD – Top 10 U.S. (000s)(1)
$ SalesVol.
SalesCWD
$65,631 880 49.7
$52,045 569 59.5
$29,555 342 25.5
$26,647 410 19.1
$15,562 176 26.3
$10,287 104 19.1
$8,586 120 3.2
$7,272 116 12.2
$5,817 69 15.1
$2,499 27 5.2
$2,704
$1,3…
$1,3…
$1,0…
$874
$683
$596
$593
$540
$477
BEATBOX BEVERAGES
LIBERTY CREEK
VENDANGE
MD 20/20
BLACK BOX
BOTA
FRANZIA
BAREFOOT
WOODBRIDGE
BANDIT
WINNING IN WINE AS WELL AS RTD COCKTAILS
Source: Source: IRI w/e December 26, 2020
(1) Volume measured in 9L Case Equivalents
Unlike the segment’s other leading brands, which have expansive distribution presences, BeatBox’s distribution opportunity is virtually untapped.
BeatBox is a clear category leader with a remarkable amount of whitespace, doubling the next closest brand’s $ Sales per point in Category Weighted
Distribution, all while relying on a distribution base that is a fraction as small as the other leading brands.
$ Sales per Point of CWD – Top 10 U.S. ($000s) $ Sales, Vol. Sales & CWD – Top 10 U.S. (000s)(1)
According to Nielsen, as of December
31st 2020, Beatbox led its category in $
sales per point in category weighted
distribution, more than doubling the
next closest brand. This speaks to
BeatBox’s continued velocity and
upside for growth as it penetrates
more and more markets.
Less than two years ago, BeatBox
was found in fewer than 100 chain
locations. Today, BeatBox is
available in 1,800+ Circle K locations,
500+ QuikTrips, 250+ Krogers, 200+ H-
E-Bs, 300+ 7-Elevens, 200+ Casey’s
General Stores & more.
BeatBox is well-poised to maintain its
impressive recent trends – notably,
growth continues with five new state
openings, several new chain locations
opening, and award-winning flavor
innovations the like brand new Zero
Sugar launch all in Q1 2021. With a
focus on off-premise sales, a long shelf
life, and high margin, cash generating
product, BeatBox is poised to thrive
throughout COVID-19 and beyond.
EXTRAORDINARY VELOCITY & VOLUME GROWTH
BEATBOX BEVERAGES IS THE #1 FASTEST
SELLING BRAND IN WINE AND RTD
COCKTAIL ON A $/CWD BASIS
MOST $ SALES PER
POINT OF CWD
RAPIDLY EXPANDING
ACCOUNT PENETRATION
LOOKING
FORWARD
UNIQUELY FAVORABLE DISTRIBUTION DYNAMICS
The Company’s distribution network is built around beer wholesalers,
making Its offerings highly competitive within the Grocery and C-
Store channels that beer competitors heavily rely upon.
BeatBox ABV below key thresholds allowing the product into beer channels.
✓
Highly attractive alternative for wholesalers pushing primarily beer.
✓
Much higher gross profit per CE sold when compared to beer.
✓
Sold like beer, consumed like beer, but not just another beer SKU.
✓
BEST-IN-CLASS, PROVEN PRODUCT INNOVATION
BeatBox management has an impressive track-record introducing new
brands that compliment their portfolio and drive continued growth.
Coming Soon
BeatBox Zero Sugar• 6% ABV zero sugar Beatbox drink
• Provides a zero-sugar, lower ABV alternative for the
health conscious that still resonates with the party
culture
01
BeatBox Variety Pack• Allows for increased shelf footprint in off-premise
locations
• Facilitates larger purchases from consumers and
DTC potential
02
Recent & Near-Term BeatBox Releases
EFFECTIVE, OUT-OF-THE-BOX MARKETING STRATEGIES
The Company’s marketing strategy goes beyond just digital platforms. Its festival and party presence is unmatched and has proven to
be extremely effective in solidifying its ethos as a brand focused on getting together and having fun.
ONE Musicfest
(50,000+ attendees)
Rolling Loud
(180,000+ attendees)
Imagine Festival
(25,000+ attendees)
Breakaway Music Festival
(65,000+ attendees)
Moonrise Festival
(30,000+ attendees)
Virtual House Party
EYE-CATCHING RETAIL DISPLAYS…
19.1k+ ACCOUNTS HAVE PURCHASED OVER THE LAST 12 MONTHS
Select Set of Retail Partners
In 2014, BeatBox’s co-founders
pitched BeatBox Beverage on
ABC’s Shark Tank. Justin, Aimy
& Brad received three offers,
in total, from Mark Cuban,
Barbara Corcoran and Kevin
O'Leary. The three ultimately
accepted a $1M investment
from Mark Cuban’s.
The days of cheap wine product from boxes
have been replaced with premium options.
This change has occurred thanks to pioneers
such as BeatBox.
BeatBox may have once been a
fantastic addition to any social setting,
but now could be considered a
necessity with current dynamics at
universities.
“The liquid is amazing, and it looks like
BeatBox has another winner with this
new Peach flavor,” stated Mark Ostoits,
Vice President for the Southeast at
Circle K.
You might talk about beerification," one
taster said to me, "but this product is all
about youthification. I can see someone
running into a convenience store and
buying a box to take to the lake. It's
perfect for that.
United through a love of music and
inspired by the entrepreneurial spirit of
Austin, TX, the founders of BeatBox set
out to create something that could help
everyone #PartyBetter.
BeatBox Beverages started as a humble
homemade cocktail and has grown to be
one of the biggest disruptors in the single
serving beverage market.
“
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“
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“
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“
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“
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“
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IMPRESSIVE NATIONAL MEDIA PRESENCE
BeatBox’s investor base includes a number of highly-influential individuals with strong media presences and
deep knowledge across a wide array of industries.
WIDELY-RECOGNIZED INVESTOR BASE
GTA
(Musician, EDM DJ)
Louis the Child
(Musician, EDM DJ)
Luke Davis
(Professional Surfer)
Coast Club
(Musician, EDM DJ)
Nick Gross
(Entrepreneur & Musician)
Mark Cuban
(Billionaire Entrepreneur & Investor)
Rob Dyrdek
(Entrepreneur, TV Host, Ex-Pro Skateboarded & more)
Anna Lunoe
(Musician, EDM DJ)
Iikka Backstrom
(Professional Snowboarder)
Party Favor
(Musician, EDM DJ)
BEATBOX HAS LEVERAGED PARTNERSHIPS WITH KEY INFLUENCERS, SUCH AS DOING
THINGS MEDIA, ON SOCIAL MEDIA TO CONNECT DIRECTLY WITH MILLENNIALS AND
GEN Z DAILY
AN EFFICIENT AND VIRAL MARKETING MACHINE
59k+ SOCIAL MEDIA FOLLOWERS ACROSS FACEBOOK, TWITTER & INSTAGRAM
20k+ TIKTOK FOLLOWERS AND 1M+ LIKES ON SPONSORED TIKTOK CONTENT
THAT CREATES MASSIVE PENT-UP DEMAND
2.7
1.6
2.6
2.2
3.28.6
0.6
10.0
5.4
2.3
Through its store locator search service, BeatBox can track in real time underserved markets to most effectively target
their expansion to capitalize on the demand their viral marketing campaign generates.
Note: Highlighted states represent current distribution footprint.
# = # of Searches (000s)
0.9
15.3
3.8
0.7
1.5 2.2
0.6
2.8
4.44.9
3.4
6.2
0.7
0.4
1.1
1.1
3.3
1.4
0.6
10.1
7.8
0.6
12.9
3.8
0.3
0.9
5.3
7.17.7
1.9
1.5
0.4
3.9
0.62.7
0.9
3.3
0.2
States/Territories Not Shown
Number of
Searches
(000s)
Alaska 0.1
District of Columbia 0.2
Hawaii 0.3
Puerto Rico 0.04
12 Month Total Unique
Searches: 167k
MULTIPLE ACTIONABLE GROWTH OPPORTUNITIES
Further Penetration of Current Markets
Expansion into Near-Term Markets of Interest
Execution of Margin-Improving Supply Chain
Initiatives
International Expansion
Continued Product Innovation
VERY STRONG TOP LINE AND MARGIN GROWTH
Gross Product Sales ($ thousands)(1)
Gross Margin ($ in thousands)(1)
Total Volume (Standard Cases in thousands)(1)
87 188 331 666
1,639
2,707
4,322
2018A 2019A 2020A 2021P 2022P 2023P 2024P
(1) Includes both Domestic and International Sales
$2,335 $4,282 $6,926 $13,472
$33,290
$54,824
$87,182
2018A 2019A 2020A 2021P 2022P 2023P 2024P
$554 $1,079$3,965
$8,688
$21,546
$35,473
$56,388
24% 24%
54%
66% 66% 66% 66%
2018P 2019P 2020P 2021P 2022P 2023P 2024P2018A 2019A 2020A