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Cautionary Notes
Not for Distribution; No Offering
This presentation is for information purposes only and may not be reproduced or distributed to
any other person or published, in whole or part, for any purpose whatsoever. This presentation
does not constitute a general advertisement or general solicitation or an offer to sell or a
solicitation to buy any securities in any jurisdiction. Such an offer can only be made by prospectus
or other authorized offering document. This presentation and materials or fact of their distribution
or communication shall not form the basis of, or be relied on in connection with any contract,
commitment or investment decision whatsoever in relation thereto. The information in this
presentation is not intended in any way to qualify, modify or supplement any prospectus, listing
statement, information circular or other information disclosed under the corporate and securities
legislation and stock exchange policies of any jurisdiction relating to Global Gardens Group Inc.
(the “Company”). No securities commission or similar authority in Canada or any other jurisdiction
has in any way passed upon the adequacy or accuracy of the information contained in this
presentation.
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Forward-looking
Information & Statements
This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities
Litigation Reform Act of 1995 (together, “forward-looking statements”). Forward-looking statements in this presentation include, but are not limited to, statements with respect to: the Company’s strategy,
development and commercialization plans (including sales roll out plans, shelf launches in grocery stores, health food stores and mass merchandiser and convenience store outlets and the projected number of
such stores, projected milestones, and cost metrics), market prices, values and other economic indicators. Forward-looking statements are based on certain material assumptions and analysis made by the
Company, and the opinions and estimates of management as of the date such statements are made and they represent management's best judgment based on facts and assumptions that management
considers reasonable in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and
uncertainties.
The material assumptions upon which forward-looking statements in this presentation are based include, among others, assumptions with respect to: commercialization, growth plans and cash flows; the demand
for the Company's Veggemo product and non-dairy beverages in general; the Company's ability to access financing on favorable terms from time to time; the Company's ability to protect its intellectual property
rights; the Company's ability to secure shelf distribution in grocery stores, health food stores and mass merchandiser and convenience store outlets; the Company's ability to attract and retain customers; the
continuation of executive and operating management or the non-disruptive replacement of them on competitive terms; and stable market and general economic conditions. The Company makes no
representation that reasonable business people in possession of the same information would reach the same conclusions. Although we believe that the assumptions underlying forward-looking statements are
reasonable, they may prove to be incorrect and we cannot assure that actual results will be consistent with such statements. Given these risks, uncertainties and assumptions, you should not place undue
reliance on these forward-looking statements or the information contained in such statements.
Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other
factors, including the Company's history of net losses and negative cash flow; the Company's requirement for additional funding to develop its business; and risks relating to the following: securing shelf space
and customers of the Company's Veggemo product; the Company's failure to economically commercialize its product; delays or other problems in the third-party manufacturing process; the Company's inability
to maintain or improve its competitive position; future demand for the Veggemo product and non-dairy beverages in general; the Company's failure to retain key personnel and hire additional personnel needed
to develop its business; the Company's failure to adequately evaluate its current business and future prospects; and the Company's business practice reputation being negatively affected by client or user
complaints or negative publicity.
These risks, uncertainties, assumptions and other factors could cause the Company's actual results, performances, achievements and experience to differ materially from the Company's expectations, future
results, performances or achievements expressed or implied by the forward-looking statements. The forward-looking statements contained herein are presented for the purpose of assisting readers in
understanding the Company’s expected financial and operating performance and the Company’s plans and objectives, and may not be appropriate for other purposes. You should read this information with the
understanding that the Company's actual future results may be materially different from what it expects. These forward-looking statements are expressly qualified in their entirety by this cautionary statement.
The Company disclaims any obligation to update forward-looking statements, except as required by law.
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We exist to better people’s lives and life on our
planet, by enhancing health and personal well-being.
We encourage, challenge and excite people globally to
make healthy choices from the inside-out with delicious
proprietary based non-dairy products.
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Investment Highlights
1 2 3 4
Non-Dairy Milk
alone is projected
to be a $4B Cdn
dollar N.A. and a
$22B global market
in 2020.
GGG is the first to
market an award
winning Vegetable based
global solution with
enhanced nutritionals to
replace dairy.
Substantial growth
opportunities
through geographic,
category and product
expansion.
GGG will execute
through an experienced
management team
with consumer
goods expertise.
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Compelling Valuation Metrics
Industry Leading
Management Team
Robert Harrison
President & CEO
Paul Lott
Chief Financial Officer
Wade Bayne
VP Sales & Marketing
Frank Hood
VP U.S. Business
Development
Bob Somers
VP Distribution &
Logistics
• 35 year Food Executive;
Former President,
Neilson Dairy
• Launched Ben & Jerry’s
& Haagen Dazs in
Canada
• Oversaw 4 Neilson
manufacturing facilities
and $700m in revenue
• 28 year Senior Finance
Executive, MBA
• Former Senior VP
Finance Americas,
Cadbury Schweppes
• Provided financial and
strategic leadership for
a $500m portfolio
• 25 year Sales &
Marketing
Executive, MBA
• Fortune 500 companies:
Proctor & Gamble,
Gillette, Molson Coors
• Managed brand Profit &
Loss statements of
$380m in revenue
• 25+ years with major US
brands and retailers
• Managed wholesale growth
for Sunny Delight, Fruit20
and Veryfine brands
• Holds several patents in
package design
• 35 year Food industry
Executive
• Executed international
consumer goods
importation of $50m
annual revenue
• Co-Founder and current
Chairman of Food Steps
International (FSI)
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Paul Sun
Director
• 20 year capital markets
expertise
• Held numerous senior
roles at investment banks
including Scotia Capital,
Desjardins, and Beacon
Securities
• Provided financial
solutions from small start-
ups to billion dollar
market-cap companies
Nitin Kaushal
Director
• 25 years of healthcare,
financial and investment
experience
• Performed over 40
mergers, acquisitions,
strategic advisory and
licensing assignments
• Board experience
includes audit,
governance and
compensation
committees
Brian Isherwood
Director
• Businessman and
Entrepreneur
• Owner BCI Group
International – Self
Storage Business
• Co-Founder, Co-Owner
and Developer of the
Flying Pig Restaurant
Group
Board of Directors
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Justin Kates
Director
• Partner DuMoulin Black
LLP, Corporate and
Securities Lawyers
• Advises clients on equity
and debt financing, stock
exchange listings, mergers
and acquisitions, and
reorganizations
• Member of the Securities
Law, and Business Law
sections of the Canadian
Bar Association
Robert Harrison
Director
• 35 year Food Executive;
Former President,
Neilson Dairy
• Launched Ben & Jerry’s
& Haagen-Dazs in
Canada
• Oversaw 4 Neilson
manufacturing facilities
and $700m in revenue
• 25 years of
entrepreneurial &
investment experience
in a broad range of
sectors ranging from
resource, real estate
and technology
• Last 10 years primary
focus has been impact
& social investing
• Long-time member of 2
global entrepreneur
organizations, EO & TiE
(Founding Director of
Vancouver chapter)
Sara Harrel
Director, Marketing & Culinary
• Expert Vegetarian /
Vegan chef; spearheaded
the launch of Canada’s
first Certificate in
Vegetarian Cuisine at
George Brown’s School
of Culinary Arts
• Chef spokesperson for
Unilever, Ontario Apple
Growers and the
Food Network’s online
“Ask a Vegetarian Chef
Expert”
Management & Advisors
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Praveen Varshney
Advisor
John Szold
Advisor
• Adjunct Professor of
Marketing, University of
Toronto
• Brand Marketing
Executive,
Ben & Jerry’s
• Retail Executive with
Loblaw’s and the Liquor
Commission
Board of Ontario
Greg Steele
Advisor
• 25 year track record of
business transformation
and operational
effectiveness in the
consumer packaged
goods industry
• Extensive experience with
systems and process
design and
implementation
• Consulting to food and
distribution companies for
the past 5 years.
The Plant Based
Revolution
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Whether for heart health, climate health, ecological efficiency or
animal welfare, plants are fast becoming man’s best friend
The dairy aisleis no longer the“dairy” aisle…
A growing market
has emerged as
consumers move away
from traditional dairy
products and seek
Plant-based alternatives.
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• Launch a proprietary “global” brand as a solution to dairy
• Outstanding 89% concept appeal score from consumers
• North America non-dairy milk is estimated to reach $4.0+ billion in 2022
• The Global Dairy Alternatives market is projected to reach $35 billion by 2024*
• $5.0 million has gone into research, product & market development, testing, packaging
and plant trials
• To-date GGG has completed brokered and non-brokered private raises for $14 million
• GGG is targeted a raise of $12m USD to support its U.S. chilled market roll-out
• GGG plans to launch in a multitude of other non-dairy categories i.e. ice cream, yogurt, etc.
Executive Summary
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Global Gardens Group Inc. (GGG) – Proprietary non-dairy products
The company trades on the Toronto Venture Exchange under the symbol VGM
* Source: Grand View Research, Inc. Aug 2016
The Non-Dairy Milk Category
Soy Milk Continues to Lose Ground
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Second place soy milk continues to decline as consumers question its overall healthfulness and
as other plant-based milks, like almond and cashew, trend. The segment makes up approximately
19.3% market share, Soy milk is forecast to be surpassed by the “other” non-dairy milk segment
by 2017 and coconut milk by 2018
TOTAL US RETAIL SALES AND FORECAST OF NON-DAIRY MILK, BY SEGMENT, AT CURRENT PRICES, 2010-2020
Source: Based on Information Resources Inc., InfoScan Reviews; SPINS; USDA Economic Research Service; US
Census Bureau, Economic Census/Mintel.
Room for More
Frequent Consumption
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An equal number of consumers drink non-dairy milk frequently and moderately, partially influenced by heavier dairy milk consumption. Dairy milk remains a strong challenger to non-dairy milks. Non-dairy milk drinkers’ cross-consumption of dairy milk likely limits non-dairy milk frequency and competes for usage occasions.
NON-DAIRY MILK CONSUMPTION FREQUENCY, JANUARY 2016
Base: 984 internet users aged 18+ who personally consume non-dairy milk
Source: Lightspeed GMI/Mintel
Principled Decisive
• Vegan / vegetarian
• Plugged-in
• Reads labels
• Heavy volume
Worrier-Survivalist The Butterfly
Extensive quantitative & qualitative research
• Allergy / Intoleranceto dairy / lactose
• Want something safe
• Dr. / Naturopath’s reco.
• Making healthier choices
• Eating better
• Exercising more
• Seek balance
15% of Category Volume 25% of Category Volume 60% of Category Volume
The Non-Dairy
Consumer
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Soy
Strengths
Nutrition
Weaknesses
Taste, Health concerns,
93% Genetically Modified
Almond
Strengths
Taste, Texture, Calories
Weaknesses
Nut allergies, Nutrition,
Protein
Rice
Strengths
Allergen Free
Weaknesses
Texture, Aftertaste,
Taste, Nutrition, Flavour
Competitive analysis
Consumer Feedback
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Introducing…
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Our proprietary vegetable blend: pea protein, tapioca & potato.
The non-diary milk originating from veggies. Product is nutritious and tastes great.
Current non-dairy milk drinkers
GGG product appeal
89%Appealing
Additionally, 78% of dairy drinkers
find the GGG product appealing.
Quantitative testing included both current non-dairy milk drinkers and milk drinkers who
are open to trying non-dairy milk. Sample size of 700 = +/- 3.7% nineteen times out of 20.
52% Appealing
37% Very appealing
9% Not very appealing
2% Not at all
Source: Lux Insights Qualitative Study / Concept Testing
Product Appeal
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Veggemo
• Veggie included in the name
• Light-hearted and approachable
• Nature delivered in a quirky and witty manner
• Highly visual with eye catching imagery
• Sustainable packaging with a cap
• Shelf Stable with 12 month shelf life
• 6 grams of protein
• Nutritious and tastes great
Our products deliver an exceptional taste &
texture along with the
following attributes to
consumers:
Veggemo delivers 6 grams of
protein, is rich in calcium
& vitamin D while being an
excellent source of vitamin
B12 & riboflavin.
• Cholesterol free
• Lactose free
• Gluten free
• Soy & nut free
• Non GMO
• Vegan
• Kosher
Product Attributes
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How is Veggemo
Disruptive?
• Positioning – The non-dairy milk originating from vegetables!
• Ingredients – Pea protein, tapioca and potato
• Nutrition – Protein, Soy free, nut free, vitamin B12
• Character – Lighthearted, approachable, playful and quirky
• Packaging – Dimensions, cap
• Sustainability – Ingredients and packaging
• Usage – Replacement for milk 1 for 1 in all usage occasions including coffees/smoothies/baking/etc
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Voted Top Ten “Most
Innovative Products” at the
2015 Grocery Innovation
Canada Show.
Veggemo – Awards &
Accolades
One of three finalists for “Best
New Beverage.” Criteria
“Innovation, Integrity,
Inspiration.”
Voted Best New Vegan
Product by VegNews, “Best of
Show Awards 2016”.
In-Store
Distribution
Veggemo is currently in approx. 5000 stores across North America and available on
key on-line platforms. This includes the following popular banners:
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1 2 3 4 5
Aggressive
sampling
Our goal is to maximize brand awareness & trial. We will reach consumers by connecting with them where they are. Our marketing budget will support the following five areas:
Robustwebsite &fully integratedsocial mediacampaign /presence
Consumer &Industry trade shows
Targeted print,i.e. vegannews, health& fitnessmagazines
Ad hoc marketing
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Consumer
Marketing Plan
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Consumer Marketing
Plan
Activity 2018
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Sampling
Social - Digital Media
Bloggers & Influencers
Consumer/Trade Shows/Events
Couponing
Excellent Industry
Acquisition Multiples
Acquirer Target Business Description Size Revenue Multiple
General Mills Annie’s Natural & Organic Foods $820m $204m 4.0x
WhiteWave Foods So Delicious Non-Dairy Beverages $195m $115m 1.7x
WhiteWave Foods Earthbound Farm Organic Produce $600m $500m 1.2x
Campbell Soup Bolthouse Farms Natural Food & Beverages $1.55b $689m 2.2x
PepsiCo Naked Juice Natural Beverages $450m $150m 3.0x
Kellogg Kashi Natural & Organic Cereal $33m $25m 1.3x
WhiteWave Foods Vega Plant-Based Powdered Shakes & Snack Bars $550m $100m 5.5x
Danone WhiteWave Foods Non-Dairy and Plant Based Products $12.5B $4.0B 3.1X
Average Multiple 2.8x
150 similar deals over 10 years produced an average EBIT multiple of 13.5X
- Bloomberg, July 2012
Company acquisition sources: Forbes, Market Watch, Wall Street Journal, Bloomberg, LA Times
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