INVESTOR PRESENTATIONFALL 2018
BREW
OVERVIEW
Big Man’s Brew, Inc . p rov ides to ta l ALCBevs that
ce lebrate the legacy o f C larence “B ig Man”
Clemons.
CLARENCE CLEMONS i s a music legend, member
o f the Rock & Roll Hal l of Fame , and one o f the
most loved members o f the E Street Band.
Clarence spent 30 years by the s ide o f Bruce
Springsteen as a founding member o f the E Street
Band and 22 years p laying shows across the wor ld
wi th The Grateful Dead .
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Fol lowers that are pass ionately engaged
wi th the C larence C lemons brand50M
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TRACTION
▪ Big Man’s Brew, Inc. is a subsidiary of Big Man’s West, LLC , a l icensing company and the ONLY official entity with publicity rights to Clarence “Big Man” Clemons name, likeness’s or images(IP).
▪ BMB has exclusive rights to Clarence Clemons across all products in the alcohol & beverage categories.
▪ BMB already launched a beer under the BMB brand, and will use this platform to expand into several other potential verticals in conjunction with BMW.
WHY WE WILL WIN
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PREMIUM BEER PRODUCTION & DISTRIBUTION
UNIQELY QUALIFIED TEAM
LEVERAGE INDUSTRY & NETWORK
Highest—quality specialty &
craft beers that are in high-
demand from the end consumer
with further innovative products
to be introduced to capitalize on
changing consumer preferences
Partner with a regional, premier
brewery that brews high-quality,
consistent beer across multiple
varieties and forms, has
flexible/small batch brewing
capability with an ability to scale, and
full packaging capability. Moreover,
we will develop strong relationships
with local distributors.
Management’s collective
network of industry
relationships, the 50M followers
that are passionately engaged
with the Clarence Clemons
brand, and the celebrity network
of friends who resonate with
and care about Clarence’s
legacy, creates a defensible
competitive advantage for BMB
.
Premier team of executives,
managers, board members, and
advisors with a successful track
record of consulting, building,
and Food & Beverage
businesses in the U.S. and
globally
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UNIQUELY QUALIFIED TEAM
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ERV FREDERICK
Founder & Managing Partner Winnetka Park
• 28 year career at Kraft and SAB Miller
• Completed merger of South African Breweries and
Miller to form SAB Miller
• Responsible for leading multi-billion dollar businesses
including Maxwell House and Miller Lite
• Created value for brands through M&A/Alliances as
part of management team that purchased CapriSun
• Established distribution partnership with Starbucks
• Founder & Managing Partner of CreativeScale
• Select Clients:
• Unilever, Jim Beam, Miller Coors, Crown
Imports owned by Constellation Brands, Tenth
and Blake Beer Company, Pinnacle Foods, and
Bloomin Brands
• MBA at the Kellogg School of Management,
Northwestern University; BA at Dickinson College
VICTOR RUTSTEIN
Founder & Managing Partner Winnetka Park
• Has had a progressive career throughout: Seagrams,
Beam Global Spirits and Wine, Pillsbury, Ceridian,
and CurtisAlan
• Career has included roles in research, sales, new
product development, brand management, marketing,
and innovation
• Successfully navigated and created brand momentum
at all levels of the value chain including boardrooms,
marketing teams, sales organizations, retailers and
consumers
• Documented track record of brand turnarounds,
significantly growing market share, profitability and
brand equity
• MBA at Columbia University; BSB at the University
of Minnesota Carlson School of Business
ALLEN ROSEN
Chairman Of The Board
• Serial entrepreneur with proven track record of
founding, and presiding over several, healthcare
organizations over the past 30yrs
• Founder of proprietary skin care product line
UNITY™ brand, ADRx Medical, LLC, presently in
growth phase with multiple distribution channels
• Founding partner and medical director of the Plastic
Surgery Group, PA and North Fullerton Surgery
Center, LLC
• Founder of a private family owned commercial Real
Estate trust with holdings in NY, NJ, PA and FL
• NBC, CBS, Good Morning America
• Named one of the finest plastic surgeons in New
York and New Jersey, by both: New York Magazine
and New Jersey Monthly
Work Profiled:
Quoted In:
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Over the past few years, the craft and specialty beer market has
dr iven the majori ty of the growth in the U.S. beer market .
GROWTH OF CRAFT & SPECIALITY BEER
23%
77%
Craft Other Domestic
111.4BTOTAL U.S. MARKET SIZE
26.0BTOTAL U.S. MARKET SIZE
8.0%DOLLAR VALUE GROWTH (YoY)
5.0%VOLUME GROWTH (YoY)
12.7%VOLUME SHARE (YoY)
Craft Beer Market Growth (2017)Total Beer U.S. Market (2017)
For a beer drink to be considered a premium product, it
must be made with high-quality ingredients, should
be more expensive than regular products, and the
brand should have a long heritage and history
Premiumization isn’t as simple as just charging a
higher retail price, brands must offer added value,
authenticity, brand story and an experience, say
industry experts.
One Of The Major Growth Drivers
Of The Market Is Premiumization
“Today, 100 percent of beer
category volume and dollar
growth is driven by the high-
end, and growth of high-end
beer has accelerated the past
five years. We expect this
trend to continue for many
years to come.”
Head of Beer Division,
Constellation Brands
RISE OF PREMIUMIZATION
OPPORTUNITY: PREMIUMIZATION OF TOTAL ALCBEV MARKET
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The premiumization of the beer market is driving most of the growth that import, specialty and craft beers have experienced.
Big Man’s Brew is posit ioned to capital ize on the r is ing demand driven by changing
consumer preferences as they shif t to high -end beer brands.
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In an age of premiumization and shift in
customer preferences, brewers and brands
must focus on new strategies, including;
increasing portfolio and channel complexity,
reducing the lead times of product innovation
and understanding consumer needs and
aspirations.
Key Takeaway:
Consumers are willing to pay more for better
quality products, exclusivity and a more
enjoyable consuming experience.
Miller Lite Corona Extra Modelo Especial Michelob Ultra Stella Artois Blue Moon
6.2%
4.5%
3.6% 3.6%
1.2% 1.1%
0.0%
2.0%
4.0%
6.0%
8.0%
Premium Brands Drive Growth in 2017
GO-TO-MARKET STRATEGY
SALES CHANNELS & DISTRIBUTORS
Partner with the leading distributor in the NY/NJ Area
o Key capabilities, include; modern infrastructure for inventory
management and order fulfillment, large selling organization
with strong retail relationships and high call frequency.
o Our sales team will be knowledgeable about craft beer and
potentially have a separate specialty selling organization.
o Experienced leadership team with process controls in place
to track performance and KPI’s.
Big Man West competes in the specialty & craft beer segment of the market with a hyper targeted northeast launch
MUSIC/ENTERTAINMENT VENUES
o Our collective network will allow us to partner with leading
music and entertainment venues with national reach
o Key tactics will be PR, sampling, social media (Facebook,
Instagram, Twitter), digital media (paid, SEO, SEM), and
influencers / endorsements.
OFF-PREMISE ACCOUNTS
o Big Man’s Brew will provide artwork for sell sheets, display
cards, window banners, cooler door stickers, and shelf talkers.
o Leverage standard distributor in-house print shops to produce
and distribute most of these items to their sales force.
TRADITIONAL ON-PREMISE ACCOUNTSNeighborhood accounts, sports bar, craft beer accounts, etc.
o Essential tools for the generation of awareness at retail will
be provided
o Promotions: tap handles, coasters, glassware, tin signs,
table tents, a limited run of lighted pub signs, and t-shirts
for promotions
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The high density of fans in the
northeast United States serve as a
catalyst for global recognition of any
product among Clarence Clemons’s
50 million global fans
We envision Clarence’s aspirational rock n’
roll lifestyle to be experienced by the masses
through brand licensing deals across several
industries. His image is an ideal fit for
brandedbeers, restaurants, tobacco products,
cannabis products, and merchandise.
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BRANDING
WITH STRONG UNIT ECONOMICS…
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The alcohol industry is designed by a three-tier distribution model; as described below, with the Brewer margin based on
its allocation to higher-margin “draught” vs. more scalable “packaged product” (glass and cans).
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70%
30%
RETAILERS
Distributor Cost Gross Margin
73%
27%
DISTRIBUTOR
Cost from Brewer Gross Margin
30%
70%
BREWER
Production Cost Gross Margin
LICENSING STRATEGY
Big Man’s Brew will expand into adjacent beverage categories, as well as potential ancillary licensing
opportunities
ALCOHOL WINE & SPIRITS NON-ALCOHOLIC
BEERS
CANNABIS-INFUSED
BEVERAGES
Potential licensing verticals include:
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Top brewers are homing in on the continued promising craft beer category as wel l as
diversi fying in categories l ike w ine, soft dr inks, and even dairy
Acquisition Price: $1B
($700M initially + $300M based on
10yr performance)
Revenue Multiple: 20x
($700M Price / $36M (2016 Sales)
2016 Sales (At Retail): $70M
2016 Sales: $36M
(After Retail Markup and Wholesale Pricing)
ACQUIRER
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CELEBRITY BACKED BRANDS: GEORGE CLOONEY + CASAMIGOS
The success of celebrity backed alcohol brands have exploded over the last decade including numerous licensing deals and
acquisitions of companies such as Casamigos and Skinnygirl by larger brands such as Diageo and Beam Inc.
TARGET COMPANY
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Looking for growth opportunities beyond beer,
Constellation brands recently announced its $4B
bet on Cannabis.
Earlier this year, Heineken’s subsidiary Lagunitas
released a THC-infused sparkling water in
collaboration with AbsoluteXtracts. Additionally,
MolsonCoors partnered with The Hydropothecary
Corporation to work on cannabis-infused drinks.
CANNABIS INFUSED BEVERAGESALCOHOL-FREE BRANDS
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Alcohol-free spirits and cannabis-infused drinks are rising to compete with traditional beer, wine, and spirits
ALCOHOL GIANTS SEEK DIVERSIFICATION
Based on the heritage and brand
story for Big Man’s Brew, and the
rich history of Clarence Clemons,
there are ancillary licensing
opportunities that are on-brand with
huge potential.
Cigars, tobacco, and cannabis
products can be branded with Big
Man’s Bud image can help
differentiation and recognition in this
booming market.
ADDITIONAL LICENSING OPPORTUNITIES
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*THE WORLD’S 6 LARGEST
BREWERS HAVE MADE:
55 Acquisitions
10 Investments
Constellation Brands
In late 2016, Constellation
Brands announced the
acquisition of a leading US craft
brewer, Ballast Point, closely
followed by the acquisition of
Florida based craft brewery,
Funky Buddha, in August 2017,
moves which push the
company more closely to the
brewing process.
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AB InBev
AB InBev has made 43
acquisitions & investments made
directly and through its
venture fund ZX Ventures.
AB InBev has mostly focused on
craft brewers, including US-based
Blue Point Brewing, UK-based
Camden Town Brewery, and Italy-
based Birra del Borgo.
BREWERY GIANTS SEEK INVESTMENTS AND M&A FOR GROWTH
Many of these deals have focused on product line expansion, primarily targeting high-growth craft beer brands
Big brewers have increasingly invested in the fast -growing craft beer category to mitigate
declining sales, and are already looking to expand into adjacent beverage categories
* AB InBev, Heineken, Asahi, Kirin, Carlsberg, and
Molson Coors in the private market since 2013
PREMIUM VALUATION DRIVEN BY DIVERSIFICATION
Based on recent trading comparables, we believe that a 2-4x exit revenue multiple is achievable based on our
growth prospects, customer engagement, unique product positioning, and marketing strategy.
Trading Comparable Valuation AB InBev Leading Through Premiumization
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BUD’s ‘The High End’ d ivis ion , made up o f i ts
global spec ial ty and cra f t brands, had been
estab l ished in 22 markets , accounting for roughly
70% of the h igh -end opportuni ty wor ldwide, as a t the
end o f FY 2017.
W hile the brands represented on ly 11.4% of BUD’s
to ta l revenue outs ide the i r home markets in 2017,
they contr ibuted to over 35% of the to ta l net revenue
growth.
This presents BUD wi th a cons iderable opportun i ty to
encourage consumers to t rade -up to more h igh -end
products , in both deve loped and in emerging markets.Constellation Diageo AB InBev Boston Beer Heinken Molson Coors Calrsberg Kirin
6.7x6.4x
5.1x
3.5x
2.7x2.2 2.2x
1.7x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
ELLIOT GROVER
Advisor
• Spent 28 years at Mars Chocolate North America
• Background in operations, marketing, brand management,
new business development, procurement and licensing
• Member of Senior Management Team
• Responsible for setting strategic direction and
delivering results for a $3.5 billion business unit
• North American Chief Procurement Officer
• Oversaw of 100 associates in a department responsible
for $2 billion in annual expenditures
• Responsible for raw material & packaging buying,
commodity hedging, and negotiation of advertising,
consulting, sponsorship and licensing agreements
• Limited partner with the SoundBoard Angel Fund
• Advisory Board of Grover Pro Percussion & Morristown
Medical Center
• University of Chicago Booth School of Business, MBA
NICK CLEMONS
Advisor
• Eldest son of Jackie and Clarence
Clemmons, a prominent member of Bruce
Springsteen’s East Street Band
• Nick has shared the stage with Bobby
Bandiera, John Eddie, New Riders of the
Purple Sage, Jimmy Vivino, and Clarence
Clemons
• Nick's band, The Nick Clemons Band, has
been touring and brings an original fusion
of rock, jazz and funk to venues all across
North America
• Other artistic interests include acting, building a
production company to develop and manage
other musicians, and producing events for
charity across the United States
• Producer of the Annual Asbury Park
Comedy Fest
DAVE MILLER
Advisor
• Chief Operating Officer at City Winery
• Career Experience:
• Regional Vice President at Landry’s, a
subsidiary of Fertitta Entertainment, whose
parent company Station Casinos, who acquired
Joe’s Crab Shack parent company for $175M on
August 2017
• Regional Vice President at Joe’s Crab Shack
• Director of Operations at Hard Rock
International
• General Manager at Hard Rock Café
• General Manager & Director of Operations at
The Briad Group, which operates a chain of
franchise restaurants and hotels in the
Northeastern United States
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OUR ADVISORS
SALES REP / MERCHANDISERS:
EXECUTIVE SALARIES:
Responsibilities include: all strategy,
brand/product development, financial,
operations/logistics (Yr.1 and Yr.2),
marketing and sales function;
including distributor management.
Integrated marketing approach as
described by our go-to-market strategy
SALES & MARKETING:
Two retail specialists to support our
expansion into NJ/NYC
Includes legal, compliance, insurance, etc.
STARTUP EXPENSES:
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USE OF FUNDS
$2.0M35.0%
30.0%
20.0%
5.0%
10.0%
Executive Salaries (1) Sales Reps/MerchandisersSales and Marketing Investment Start-up Expenses/Legal ComplianceOpening Inventory & Working Capital
CONTACT USName: [ ]Email: [ ]
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