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GOURMET, SPECIALTY - GRADE COFFEES FORTIFIED WITH CLINICALLY - SUPPORTED NUTRACEUTICALS OTCQB: NUZE December 2017
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GOURMET, SPECIALTY-GRADE COFFEES FORTIFIED WITH

CLINICALLY-SUPPORTED NUTRACEUTICALS

OTCQB: NUZE

December 2017

Any statements that are not historical facts contained in this release are "forward-looking statements" within themeaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statementswith respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates,intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, whichmay be beyond our control, and which may cause our actual results, performance or achievements to bematerially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. We have based these forward-looking statements upon information available to managementas of the date of this release and management's expectations and projections about certain future events. It ispossible that the assumptions made by management for purposes of such statements may not materialize. Suchstatements may involve risks and uncertainties, including but not limited to those relating to product demand,pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome ofcompetitive products, risks in product development, and other factors discussed from time to time in theCompany's Securities and Exchange Commission filings. The Company undertakes no obligation to update orrevise any forward-looking statement for events or circumstances after the date on which such statement is made.

FORWARD LOOKING STATEMENTS

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First-ever line of clinically supported, all-natural coffees with health benefits

Compatible with most single-serve brewing systems

100% Arabica beans, directly and fairly sourced from Central and South America

Slow roasted

Experienced sommeliers

IT’S COFFEE REIMAGINED ™

3

SWITCH TO DRIP CUP

EXCLUSIVE LICENSE

U.S. Single Serve Coffee Retail Sales (1) U.S. Functional Beverages (2)

[1] National Coffee Association, https://www.statista.com/topics/2219/single-serve-coffee-market/ 2016[2] Functional Beverage Segment Review; http://trifectaresearch.com/wp content/uploads/2015/09/Functioal-Beverages-PE-Sample-FINAL.pptx.pdf

100% Arabica CoffeeTop Quality Beans Harvested

Hand Roasted in Small Batches

Quality IngredientsBacked by Clinical Studies

Each Cup Provides “Therapeutic dose”

MARKET OPPORTUNITY

6

$0.5 M

FY 2015

FY 2016

9 Mo. 6/30/17

$0.1 M

$1.2 M

Revenue

9 Mo. 2017 Sales

9 Mo. 2017 Sales

61%

39%

Product Sales Breakdown9 Mo. 2017

K Cup Drip Cup Whole Bean

COMPANY OVERVIEW

49% 49%

1%

7

• Manufactures and markets all-natural, specialty-grade functional coffees and Matcha tea

• Sold at 2000+ retail locations via B2B multi-store retail chains, wholesale distributors, office & home delivery, and B2C via www.coffeeblenders.com and www.amazon.com.

• Available in 48 states, the District of Columbia, South Korea, and Japan

• Manufactures and markets Drip Cup coffee system

• Accelerating revenues; capitalizing on multiple industry trends to support continuing growth in 2018

• Highly scalable business model, supported by multiple co-packing relationships.

• Focused on new products, expanded marketing, and partnership agreements

Commences production of

functional beverages

Launch Cold Brew

line of functional

coffee

Introduces Drip Cup line of functional

coffees under exclusive U.S. license

Introduces ACTIVE Cup ®NUDE Cup ®Matcha Tea

Launches whole bean coffee line

2016

PRODUCT TIMELINE

2014Nov.2017

2015

8

Coffee Blenders® products are sold at

RETAILERS DISTRIBUTORS

2,000+retail locations and online

PRODUCT AVAILABILITY

9

Coffee demand is growing.

According to a 2017 report from the National Coffee

Association (NCA), 62% of Americans drink coffee daily,

up from 57% in 2016.

NCA data shows that 33% of US households now own a single-cup brewer, up from 29%

in 2016.Keurig Green

Mountain sold 13.2 BN single-serve cups in 2015, with an

average growth rate of 17.6% (2012-15) (2)

Mintel estimates cold brew alone grew by 339% (2010 – 2015). When combined with RTD coffee, the entire

business is worth close to $2 billion in the U.S.,

and should continue to grow.

GLOBAL MARKET DRIVERS

(1) www.naturalproductsinsider.com/blogs/food-beverage-perspectives/2015/09/functional-coffee-piques-consumer-interest.aspx(2) 13.2 BN included branded and co-packing; www.statista.com/statistics/259236/leading-single-cup-coffee-vendors-in-the-united-states/

Research firm Mintel estimates that 42% of U.S. consumers would

like to see added nutritional benefits in

coffee at retail.

Asia/Pacific retail sales

of fortified/functional

coffee were US $271 M

in 2015, with a CAGR

of 12% (2010-15). (1)

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• Drip Cup is the first single serve pour over coffee on U.S. market

• Common and popular brewing method in Asia

• Portable technology allows you to conveniently craft quality gourmet coffee anywhere; ideal for campers, college students, outdoor enthusiasts

• NUZE estimates a total U.S. market of 30 billion Drip Cups per year

• Target production of 100 million Drip Cups by 2020

Coffee Blenders Drip Cup ProductionUnits / in MMs

Japan Korea United States

3.23.3

0.1

0.7 0.6

4.0

0.6

FY 2015

FY 2016

9 mo. FY 2017

FY 2015

FY 2016

9 mo. FY 2017

FY 2015

FY 2016

9 mo. FY 2017

n/a

DRIP CUP COFFEE POUCH

n/a

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• 100% Arabica Coffee• 400mg – All Natural Green Coffee Bean Extract• Improves your lean body mass index by 4%* • Proven to help lose up to 11 pounds in 60 days*• Claims backed by multiple clinical studies

LOSE WEIGHT NATURALLY

* Results May Vary see website for details

COFFEE BLENDERS® - LEAN Cup ®

CONFIDENTIAL / PRIVILEGED 12

• 100% Arabica Coffee • 200mg – All Natural American Ginseng• Improves cognitive functions and mental clarity • Increases concentration, memory and productivity • Claims backed by multiple clinical studies• Available in Single Serve & Drip Cup

STAY SHARP NATURALLY

COFFEE BLENDERS® - THINK Cup ®

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Coffee Blenders® - RELAX Cup™

• 100% Arabica Coffee • 200mg – All Natural L-Theanine 98%• Reduces stress and anxiety • Induces relaxation without drowsiness • Claims backed by multiple clinical studies• GRAS Approved

REDUCE STRESS NATURALLY

COFFEE BLENDERS® - RELAX Cup ®

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• 100% Arabica Coffee • 100% All-Natural Organic Coffee• Available in Single Serve and Drip Cup

ORGANIC DARK ROAST COFFEE

COFFEE BLENDERS® - NUDE Cup ®

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• 100% Arabica Coffee • 300mg – All Natural Alpha GPC• Improves muscle power output during physical activity• Sharpens agility and delays mental fatigue• Claims backed by multiple clinical studies

NATURAL WORKOUT BOOST

COFFEE BLENDERS® - ACTIVE Cup ®

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• 100% Natural Green Tea, Matcha Powder• Improves mental focus & provides natural energy• One cup of Matcha has 10x as many anti-oxidants

as a normal cup of brewed green tea.

NATURAL PURE LEAF GREEN TEA

COFFEE BLENDERS® - MATCHA Cup ™

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COFFEE BLENDERS WHOLE BEAN & GROUND COFFEE

• Coffee Blenders Nude Whole Bean features 100% Organic Honduran Blend Coffee

• Coffee Blenders Functional Ground Coffee Is Available in Lean, Think, Relax, & Active

COFFEE BLENDERS® - WHOLE BEAN AND GROUND COFFEE

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(1) StudyLogic; (2) Among those drinking coffee daily, National Coffee Association; (3) Mintel

• Launched November 2017

• 100% Arabica Dark Roast Coffee

• Steeped, not brewed, for 12 hours

• Sweeter, less acidic than hot coffee

• 10 oz. glass bottles

• DSD in branded-fleet of refrigerated trucks

• Available at independent retailers and convenience stores throughout So. Cal.

• National roll-out contemplated to commence in 2018

U.S. cold brew sales increase TTM 2/2017 (1)

80% 21%U.S. cold brew

market penetration

in 2017 (2)

0.4%Estimated U.S.

RTD sales in 2015 (3)

Favorable Industry Market Trends

COFFEE BLENDERS® - FUNCTIONAL COLD BREW

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ADDING EXPERIENCE

• William Lampe joins NUZE as “Operations Consultant”

• 30 years of global food and beverage industry experience, including 27 years with various divisions and JVs of The Coca-Cola Company:

• managed Coca-Cola North America Packaging Group • managed Minute Maid Capital Project Group • executive with Corporate Packaging Development, Corporate Engineering,

Coca-Cola Foods, and Coca-Cola North America Contract Manufacturing.

• Involved in all three joint ventures between The Coca-Cola Company and Nestlé, SA, including Coca-Cola Nestlé Refreshments and both iterations of Beverage Partners Worldwide.

• Experience in ready-to-drink (RTD) coffee and tea products globally, as well as clinical claim functional beverage developments via Nestlé Research.

“Bill has been associated with some of the most successful beverage launches in our industry. He brings to NuZee extensive experience in package ideation, design and development, contract

manufacturing, capital project management.”

- Masa Higashida, CEO of NuZee

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OPERATIONS EXPANSION

VISTA, CA

• Adding ~600 square feet, or 14%, of new capacity at existing HQ

• Adding two new Drip Cup co-packing machines and upgrading process automation, which is expected to, on an annual basis:

• increase production by ~250%• reduce COGS by ~10-15%

• Build-out will accommodate rising demand for Drip Cup; FY 2017 unit production expected to rise by ~30% from FY 2016

• Scheduled to be completed by EOY 2017.

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GROWTH STRATEGY

12 MONTH OBJECTIVES LONGER-TERM OBJECTIVES

• Secure additional working capital

• Complete exclusive U.S. license agreements with NASA/Fuso and Ohki for Drip Cup

• Drive sales growth by leveraging current and potential customer base

o implement sales & marketing road maps with distribution partners, work closely with chosen brokers, broaden SKUs

• Expand distribution channels

o direct; e-commerce; mass/grocery; club; outdooro DSD distribution in southern California

• Enter into new co-packing agreements for Drip Cup

• Innovate and introduce new products

• Scale business to achieve higher efficiencies, expand profit margins, and generate cash

• Expand co-packing relationships for Drip Cup

• Retain talented professionals and expand base to support and drive our future growth

• Expand U.S. presence by opening new facilities

• Once proven, establish international, vertically-integrated operations: Japan, Korea, China

• Up list to national exchange

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Q3 FY 2017

Q2 FY 2017

Q1 FY 2017

9 Mos.FY 2017

FY 2016

Total Revenues $268,262 $376,327 $577,507 $1,222,096 $455,491

Gross Profit $65,186 $50,735 $160,639 $276,560 $47,341

Gross Margin % 24% 13.5% 27.8% 22.6% 10.4%

Operating Loss $(371,990) $(363,139) $(347,695) $(1,082,824) $(1,287,190)

Net Loss $(367,009) $(385,292) $(346,374) $(1,098,675) $(1,275,293)

Net (Loss) Per Diluted Share $(0.01) $(0.01) $(0.01) $(0.03) $(0.04)

Diluted Avg. Shares O/S 32,744,196 32,925,132 32,553,835 31,539,132 30,752,267

FINANCIAL OVERVIEW (FYE 9/30)

For the 9 months ended 6/30, revenues were nearly 3x higher when compared to FY 2016, with gross margin of 22.6% as compared to 10.4% in FY 2016.

Losses reflect NUZE’s continuing investments in facilities, products, and sales & marketing as it continues to expand SKUs and geographic presence

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CONTACT

Corporate Offices2865 Scott Street, Suite 101Vista, CA760.295.2408www.coffeeblenders.com

Masa Higashida, [email protected]

Travis Gorney, President and [email protected]

https://www.facebook.com/coffeeblenders/

https://twitter.com/coffeeblenders?lang=en

Investor Relations The Equity Group Inc.Devin Sullivan, [email protected]

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