THE LION TEA ADVANTAGE
Transcript of THE LION TEA ADVANTAGE
03LION BOTANICAL TONICS PROPRIETARY. FOR PRESENTATION USE ONLY
Why Dandelions?
Dandelions are a medicinal super plant that have been healing folks for thousands of years.
In 2009, they saved Ray DeRosa’s eyesight from a rare genetic eye disease called Leber’s.
Shortly after, he discovered the many other healing properties they have and founded LION Tea to spread the benefits of dandelions throughout the world.
Our mission is to spread the healing power of the dandelion for our health and for our planet.
THE LION TEA ADVANTAGE
• Leading growth in category of functional tea• Making dandelions edgy & cool • Amazing taste & functional benefits• Driving incrementality in functional beverage space
• Innovation poised for category expansion• First mover advantage within RTD dandelion; brand equity in the space• Innovate through the spectrum of daily consumption moments: energy, calm,
immunity, focus, etc. • Path to [fast] profitability by 2023 via continued COGs reduction plan
• Affordable & quality lead ingredient: dandelion• Scale vendor partnerships, channel mix, and operational efficiencies
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• Launched D2C in 2020; grown 770% since February 2020
• Acquired 15K new customers in 2020
• 22% of our customers make up 44% of our revenue
• Launched in LA + NYC Top 100 Natural Independents
• #7 Bottled Iced Tea in the US on Amazon
• Invited by Coca-Cola’s VEB as one of 12 emerging brands to participate in
Founders Forum
GROWING TODAY
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LION D2C - Poised for Growth • Cost of acquisition: $11, down 39% since Feb
• Conversion rate: 3.79% up from 1.2% in Feb
• Top 25 Customers: spent over $200 in 3 months
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(39%)+76%
+50%
+58%
+48%
+39%
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LION DTC - Poised for Growth • Reorder within 2 weeks of trying variety pack
• Email list grew to over 15K, driving $37K in revenue
• 77% of new customers coming from digital ads; only served 3% of addressable market
• Customers pay themselves off within first month
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Cost + Margin Today and TomorrowDandelions are affordable and readily available. • D2C avg selling price $2.85 per unit - 66% gross margin (2021) / 72% gross margin (2023)
* D2C = Direct to Consumer13
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MARKETING - 2021 Growing the Brand STRATEGY● Large reach programs to drive awareness & trial
○ Trial is key: proves benefits○ Awareness: educate to distinguish vs other teas
● Investing in digital ads + community building○ Consumer insights to drive efficiencies in digital spend
● Leverage brand champions to spread LION love○ Innovation: launch with rabid fan to drive strong initial results
INITIATIVES● Grow social channels to >10K followers with >3% engagement● Increase email list to >20K names with 20%+ open rates● Limit promos to <5 days/month● Grow affiliate marketing program to >$100K/month by EOY 2021● Land 1+ top tier media placement/month
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26LION BOTANICAL TONICS PROPRIETARY. FOR PRESENTATION USE ONLY
• Proven concept in LA + NYC = Loyal LION Community • Thriving D2C channel w/ untapped potential• $2.4M revenue run rate• Achieving efficiency in production run + reducing COGs• Scaling from independent stores to conventional grocery• Building LION into THE Dandelion Brand
GROWING TOMORROW
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Scale D2C Business Across Product Lines
LION proved the demand in 2020● Decreased customer acquisition costs by 39%● Increased digital advertising efficiencies
Driving Demand For The Future● Continue growth trajectory by growing base of
customers● Innovate to expand audience & drive incremental
consumption moments ● Establish brand as leader in functional ingredients.
Consumers lean on LION to tell them what is hot!
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LION in Retail
● Aligning brand with key northeastern large chain grocery stores
● Strong buyer desire for brand ● Top RTD tea SKU in Fresh Market● Top 10 performer in all current retail
outlets ● Leveraging data to launch in
concentrated customer areas
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FUNCTIONAL
BEV
ENERGY
CALM
SLEEP
BRAIN FUNCTION
DETOX & DIGESTION
PREBIOTICPR
ESEN
T FUTURE
FUNCTIONAL BEVERAGE BRAND BUILT FROM THE DANDELIONForgotten super plant healing for over 1,000 years
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Introducing: LION Sparkling Prebiotic TeaPutting the FUN in functional
A LION Tea for the exciting moments in your day
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LION: Why are we switching to cans?
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● Increases Margin to 66% ● Decreases COGS by 10%● Decreases shipping fees by 47%
● Expands addressable market to millennials● Increasing AOV w/ additional SKUs● Decrease environmental impact
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2021 LION GoalsGOALS STRATEGIES TACTICS MEASURES
Scale D2C Business
Retail Launch
Profitability
Build the LION Brand
Leverage consumer insights to target more of the right customers
Re engage with buyers to prepare for consumer shift back to retail
Decrease COGs, fulfillment fees, and production costs
Capitalize on first mover opportunity
1. Paid social2. Amazon/Google ads3. Public Relations
1. Submit category reviews
2. Pitch go-to-market strategy for sparkling
1. Switch to Cans2. Larger runs3. Purchase material from
source
1. Launch product innovation
2. Build LION community via digital platforms
1. Ecomm conversion rate 10%
2. Grow new customers 100% MoM
1. Land 3 key retailers2. Receive POs from all
3 key retailers
1. Blended 45% gross margin in 2021
1. Time between orders reduced by 50%
2. Grow 15K new customers by 2021
LION BOTANICAL TONICS PROPRIETARY. FOR PRESENTATION USE ONLY : Disclaimer, these projections cannot be guaranteed
LION 5 Year Outlook
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Increased volume = increased economies of scale in COGs & production
THANK YOU
(We actually brought you flowers, kind of)CONTACT: [email protected] 39