Bridge2Food – 2019The Plant Based Opportunity from the Investors Perspective

Presentation Outline

• Introduction to Avrio

• Why Plant Based Foods?

• Exuberance

• Investment Trends

• Ecosystem

• What’s Next?

Avrio Capital

• Pioneer in Agri-Food Tech Investing

• Founded in 2002 to address the global challenges in Health, Wellness and Sustainability

• Focus on growth stage companies along the Farm-to-Fork Value Chain

• Invested over $275M in 60+ Companies

• Success Stories:

Why Are Investors Interested in Plant-Based?

• Very Strong M&A Environment driven by Strategic Buyers

• (2019)Tilray Acquires Manitoba Harvest• $419M

• (2018) Unilever Buys Vegan Butcher• Undisclosed

• (2017) Maple Leaf Foods Purchases Lightlife• $140M -

• (2017) Otsuka buys Daiya Foods• $405M

• (2017) Maple Leaf Foods Acquires Field Roast• $120M

• (2017) Nestle Acquires Sweet Earth• Undisclosed

• (2015) Whitewave Foods Buys Vega Foods• $550M – 4x Sales

M & A is Very Active

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Market Exuberance

• Beyond Meat IPO• Raised $240M • Market Cap over

$5B

• Impossible Foods $300M Raise • Celebrity Investors• Partnership with

Burger King

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Macro Trends

• Consumer Preferences

• Distrust for ‘Big Food’

• Support for local

• Vegan, Vegetarian, Flexitarian

• Health and Wellness

• Demographics

• Millennials are now the largest Cohort of Consumer Dollars

• Projected to spend $1.4 Trillion next year

• Experienced Focused, Research Driven, Community Orientated

• Environmental/Sustainability/Ethical

• Climate change concerns

• Animal Rights

• Efficiencies

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Big Food/ Big Meat Sees the Writing on the Wall

• Facing rising tide of challenges• Ethical• Environmental• Competitive• Consumer – (Millennials)

Big Food/ Big Meat Sees the Writing on the Wall

“In the pursuit of more protein consumption, the majority of that growth in North America will come from plant-based proteins, not animal proteins. We view ourselves as a protein company.”

Michael McCain, CEO,

Maple Leaf Foods

"We have a strategy focused on protein, whether that's animal protein or plant protein,"

Noel White , CEO, Tyson Foods

Big Food/ Big Meat Sees the Writing on the Wall

Why Are Strategics Interested ?

Big Foods Growth is

being Driven by M&A

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Investment Trends

• More than $17 billion has been invested in U.S. plant-based meat, egg, and dairy companies since 2009, including $13 billion in 2017 and 2018 alone;

Types of Investors

• Dedicated Plant Based Funds

• Mission Driven (Environmental, Climate)

• Strategic Corporate Funds

• Consumer Focused Funds

• Generalist Tech Funds

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Active Investors in this Space

Plant Based Investment

Plant Based Investment

Top Funded Plant Based Companies

Plant Based vs Cell Based?

The Broader Ecosystem

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Conclusion:

• What is next?

• Is Cell Based complimentary or competition?

• CBD

• Does Pea become the new Soy?

• GMO ?

• Is there a possible that we will over invest?

• Trend or Fad?

• Canada’s Role?

• Competitive Advantage

• Value creation exported abroad or retained?

• Regulatory issues?

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