NCN NUTRITION CAPITALNETWORK - c.ymcdn.comc.ymcdn.com/sites/ · Stratum/Novus, Qualitas-Valicor, Lodaat, LiveLeaf, MycoTechnology, Blue Prairie, Natreon-DSM announced in July 2015

NCN NUTRITION CAPITALNETWORK

Overview of Trends in Industry Fundamentals,Trends and

Transactions in the Nutrition and Health & Wellness Industry

Grant Ferrier, CEO/Founder, NCN, 2007-presentEditor, Nutrition Business Journal, 1996-2007

Industry Fundamentals


NCN’s‘Ecosystem’

26 industry experts (screening committee) 27 meetings

260+ investor groups

2,300+cumulative applicants

452presenting companies

46 investor members

54% of companies have raised money or had a transaction

NCN NUTRITION CAPITALNETWORKCornerstone Investors – Strategic

Consumer Care

Cornerstone Investors – Private Equity


NCN Sponsor Partners - 2015


Stages of Investment in Growth Companies

Adapted from Canaccord

NCN Sweet Spot

Successful Exits

NCN: Success Story Highlights• ZICO Pure Coconut Water: NCN III in October 2008 raising $2-3 million:

NCN Cornerstone Investor member Coca-Cola invested $15 million in 2009

• Happy Baby: NCN III in October 2008 raised $500,000 in 2009: Sold to Danone in 2013 for $100-million-plus when with sales at $63 million.

• Plum Organics: NCN IV in April 2009; 2009 round led by now NCN member Alliance Consumer Growth; 2010 round $9 million led by NCN member Catterton; Campbell acquired Plum in June 2013 with sales at $93 million.

• Food Should Taste Good: NCN VI in May 2010 as portfolio company of NCN member Sherbrooke; acquired by NCN member General Mills in 2012.

• Other brands presented include Zevia, Annie’s, Manitoba Harvest, Nawgan, Reds, Balance Water, mix1, Kevita, Suja, Runa, Angie’s, Health Warrior, etc.

• Science& Ingredients: Biovelop-Tate & Lyle; IGY-family office, Anagenix-Stratum/Novus, Qualitas-Valicor, Lodaat, LiveLeaf, MycoTechnology, Blue Prairie, Natreon-DSM announced in July 2015


What are investors looking for?

•Differentiation •New company or concept

•Potential for category leadership

•“Protectability” of product or service or technology

•Intellectual property

•Size and growth rate•Scalability•Profitability•Exit potential

Novel Position Insulation Economic Potential

Management Tangibles Intangibles

•Experience & Track Record

•Starpower/connections•Team

•Experience & Track Record

•Starpower/connections•Team

•Brand•Quality•Taste•Packaging

•Brand•Quality•Taste•Packaging

•“Wow” Factor•“Wow” Factor

NCN Industry Fundamentals


U.S. Nutrition and Health & Wellness Industry: Big and Growing at $263 billion and up 6% in 2014; 5-6% in 2015

Penetration Rate of Healthy Foods Increasing: From 13% in 1995 to 29% of total foods in 2014

Supplement Sales Growth Surpasses Pharma back in 2007

Growth Drivers: Demographics/Aging, Self Care, Medical Transition, CPG/Food/Pharma Strategy, Better Products/Biz

Financing and M&A Activity Remains HighM&As may be slowing as sizeable targets are taken off the board and valuations are

up (Annie’s effect); still plenty of capital available for attractive targets

U.S. Nutrition and Health & Wellness Industry: Revenues of $263 Billion in 2014


Natural & Organic Foods, 63.3 , 24%Functional Foods,

51.1 , 19%

Lesser Evil Foods, 79.3 , 30%

Supplements, 35.8 , 14%

N&OPC & Household, 15.3 , 6%

Specialy Ingredients, 13.4 , 5%

Enabling Technology, 2.8 , 1%

Other, 2.5 , 1%

Nutrition and H&W Industry Growing at 2 to 7 Percentage Points More Than GDP


8.4%

6.6%

3.8%4.7%

6.6% 6.9% 7.2%6.5%

2.0%

-0.3%

-3.5%

3.0%1.7% 2.2% 1.8% 2.3%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2007 2008 2009 2010 2011 2012 2013 2014

Nutrition and Health & Wellness Industry GDP Growth

Industry Fundamentals: Market Share of Healthy Foods Rising Significantly; 13-29%


1.5% 1.7% 2.0% 2.2% 2.3% 2.4% 2.6% 3.1% 3.4% 3.9% 4.4% 5.0% 5.7% 6.1% 6.4% 6.5% 7.1% 7.6% 8.2% 8.8%2.6% 2.8% 3.1% 3.4% 3.6% 3.8% 3.9% 4.2% 4.5% 4.6% 5.0%

5.4%5.7% 6.0% 6.1% 6.5% 6.8% 7.1% 7.4% 7.7%

9.1% 9.3% 8.8% 9.1% 9.2% 9.2% 9.2%9.5%

10.1%10.6%

10.9%11.0%

11.1%11.3%11.4%11.6%

11.7%11.8%

12.0%12.1%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Natural & Organic Foods Functional Foods Lesser Evil Foods

U.S. Natural & Organic Food Sales & Growth: Natural vs. Organic, 2002-2015


$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e0%

5%

10%

15%

20%

25%

Natural Organic Natural Growth Organic Growth

Source: Nutrition Business Journal

U.S. Natural & Organic Food Sales & Growth by Channel, 2002-2015


$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e0%

5%

10%

15%

20%

25%

Natural & Specialty Retail M ass M arket Retail

Natural & Specialty Retail Growth M as M arket Retail Growth

Source: Nutrition Business Journal

U.S. Natural & Organic Sales & Growth by Product Category


CategoryOrganic Sales

Organic Growth

Natural Sales

Natural Growth

Total Food Sales

N&O Penetration

Dairy 4,350 7.0% 3,310 30.8% 73,210 10.5%

Fruits & Vegetables 9,860 12.8% 2,590 10.2% 128,570 9.7%

Breads & Grains 2,690 8.1% 3,700 9.6% 74,160 8.6%

Meat, Fish & Poultry 820 12.9% 2,390 13.9% 154,050 2.1%

Beverages 3,120 9.7% 5,860 10.5% 135,400 6.6%

Snack Foods 1,340 15.2% 1,720 9.8% 43,230 7.1%

Pack'd Prep'd Foods 3,210 9.9% 2,850 9.4% 72,830 9.7%

Condiments 920 15.5% 1,090 8.7% 22,040 9.1%

Total 26,310 10.8% 24,490 12.7% 703,490 7.2%

Source: Nutrition Business Journal: 2012 data

U.S. Growth in Healthy Foods ($188 B in 2014) vs. Total Foods ($654 B in 2014)


6.0%

2.5%2.1%

4.7%4.8%4.7%

1.7%0.9%

1.6%1.6%2.4%2.3%2.1%

1.6%0.8%

1.7%2.1%2.0%1.9%

10.4%

3.2%

7.5%8.0%

7.1%7.2%6.8%

8.4%8.9%

7.4%8.1%7.7%

6.0%

3.3%3.6%

6.3%6.1%5.9%5.9%

0%

2%

4%

6%

8%

10%

12%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total Foods Growth Healthy Foods

U.S. Growth in Supplements ($35 B in 2013) vs. Prescription Drugs ($330 B in 2013)


15.3%

19.4%18.7%16.9%

11.8%11.6%

8.3%

5.4%

9.1%

4.6%

1.3%

5.1%

2.3% 3.0%

-1.0%

3.2%

11.0%10.8%

6.5%4.9% 4.7%

3.7%5.7%

2.9%4.5% 5.4% 6.1% 6.4% 6.0%

4.4%

7.7%6.5%

7.5%

3.5%

-5%

0%

5%

10%

15%

20%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Rx Growth Supplement Growth

Rx: The “patent cliff” of expiring blockbusters has bottomed out; a peak of 48 drugs lost exclusivity in 2012, only 20 did in 2013, and 25 in 2014; Although the US FDA routinely gets excoriated for delaying the introduction of new drugs, over the 2008-2012 period, 104 new medicines were introduced in the USA.

Transaction and Dealflow Trends


Summary of NCN Deal Flow by Segment: June 2007 to December 2014


Segment Number of Cos. % of Cos.Natural & Organic Foods 710 35%Ingredients 294 15%Supplements 264 13%Natural PC & Household 178 9%Functional Beverages 157 8%Technology 129 6%Retail & Service 101 5%Functional Foods 88 4%Media 20 1%Packaging 14 1%Other 57 3%Total 2,012

Nutrition and Health & Wellness Industry Transactions Growth Confirm Investor Interest


7.9 9.7 8.7 9.1 21.4 Avg. Size of financing203244260253372Total Transactions626310193204Financings

141181159160168Total M&A829312747Others: Tech, Fitness, Pet

6577626952Nat’l & Organic, Functional Food8129411OTC and Personal Care84598Contract Manufacturing

2731263021Ingredients1519171118Supplements10991011Retail & Distribution

20102011201220132014M&A

7.9 9.7 8.7 9.1 21.4 Avg. Size of financing203244260253372Total Transactions626310193204Financings

141181159160168Total M&A829312747Others: Tech, Fitness, Pet

6577626952Nat’l & Organic, Functional Food8129411OTC and Personal Care84598Contract Manufacturing

2731263021Ingredients1519171118Supplements10991011Retail & Distribution

20102011201220132014M&A

Nutrition and Health & Wellness Industry Transactions: Financings Detail


63 102 93 204 Total NH&W Industry Financings8 18 7 18 Other-5 3 14 Technology - Software3 7 7 20 Technology - E-Commerce3 3 8 18 Technology - Devices: Analytical, Diag. & Monitoring3 11 9 28 Technology - Delivery Service

11 8 13 31 Technology - Apps, Information, Media3 3 4 6 Supplements3 4 4 9 Retail and Distribution-4 5 10 OTC & Personal Care5 7 5 6 Ingredients & Contract Manufacturers

20 26 23 33 Branded Food & Beverage4 6 5 11 Biotech & Agtech

2011201220132014

63 102 93 204 Total NH&W Industry Financings8 18 7 18 Other-5 3 14 Technology - Software3 7 7 20 Technology - E-Commerce3 3 8 18 Technology - Devices: Analytical, Diag. & Monitoring3 11 9 28 Technology - Delivery Service

11 8 13 31 Technology - Apps, Information, Media3 3 4 6 Supplements3 4 4 9 Retail and Distribution-4 5 10 OTC & Personal Care5 7 5 6 Ingredients & Contract Manufacturers

20 26 23 33 Branded Food & Beverage4 6 5 11 Biotech & Agtech

2011201220132014


Nutrition, Health and Wellness2015’s Record Pace of Transactions


2015’s Top Transactions (so far…)


Opposites Attract (investors)

Segments differentiated by early adoption, lifestyles, behaviors, and beliefs.

Source: NEXT, New Hope Natural Media

Source: NEXT, New Hope Natural Media

Ancient Wisdom

Harkening back to the days of pre-industrialized foods and a simpler way of life, the focus here lies on whole, nutrient dense ingredients and a “closer to nature” approach to processing.

Time-Tested

Ingredients

Clean Labels

Natural Fats

Superfoods 2.0

Superfoods

Heritage

to Hipster

Healthy

Sweeteners

Sophisticated

Flavors

Pulses & Beans Adaptogenic

Herbs

Ancient Wisdom:

Manifestations in Market

It’s about getting back to the basics with clean & simple ingredients that our ancestors may have used and that are often sourced from

other cultures and countries.

Kaibae Baobab

Fruit Powder Nature’s Path Qi’a

Superseeds & Grains

Time-Tested Ingredients

Ancient Wisdom

Kuli Kuli

Moringa Bar Ancient Harvest Amazing Foods

for Health

ANCIENT GRAINS

Dates back to B.C. Cultivated in India Superfood-

extremely nutrient dense

Over 1,000 years old Cultivated in Africa Superfruit-high in

antioxidants

Traditional side dish delivery with quinoa, millet and amaranth

Oatmeal offering but adds in buckwheat, chia, amaranth, hemp and quinoa

Cookie Mix with flour base of rice, flax, quinoa and amaranth

“Old school” ingredients and maker-movement-like processing are helping to re-invent the old and sometimes forgotten.

Fire Cider Up Mountain

Switchel Tessamae’s Dressing

Heritage to Hipster

Ancient Wisdom

Used for generations as health booster/natural curative

Apple cider vinegar base

Green Goddess flavor features turmeric, today’s “It Girl” of healthy spices

Traditional Vermont drink made with apple cider vinegar and maple syrup

The label bares all and tells a story about how you source and make your product. Keep it clean & simple, demonstrate trust and align on

consumer values to win.

Simply Gum Lesser Evil Buddha

Bowl Foods

Simple Mills Baking Mixes

Clean Labels

Ancient Wisdom

100% Natural Gum No synthetics Just 6 ingredients

Uses avocado oil, a trending healthy fat

3 ingredients: non-GMO popcorn, avocado oil and Himalayan sea salt

All non-GMO ingredients

7 natural ingredients

Healthy sweeteners inch ever closer to outsmarting HFCS and our sweet cravings. Blends are the leading edge, with coconut sugar and

monk fruit especially on trend.

Madhava Ooey-Gooey Brownie Mix

Bumbleroot Drink Mixes

Healthy Sweeteners

Ancient Wisdom

Artic Zero Frozen Desserts

Koochikoo Cookies

Organic cane sugar Coconut sugar

Utilize monk fruit as sweetener

No longer afraid of all fats, consumers are looking for healthy fats like coconut, avocado and other plant-based sources for

nutrition & satiety.

Earth Balance

Avocado Spread Melt

Jackson’s Honest Chips

Natural, Healthy Fats

Ancient Wisdom

Blend that includes coconut, palm fruit, and flaxseed oils

Made with avocado oil

Potato chips fried in coconut oil

Feed Me! A global population of 10 billion will require a serious change in how we go about feeding the world.

Sustainable Plant

Protein

Insect Protein Grass-Fed

Dairy & Meat

Sourcing Local

Feed Me!:


From eggless mayonnaise to meatless meats, the market for alternative plant-based proteins has seen a burst of innovation that is fueling rapid

growth. These products help ease dependence on resource-intensive animal protein and provide healthier and less-expensive alternatives to a protein-

hungry market.

Banza

Chickpea Pasta

Just Mayo ProTings

Sustainable Plant Protein

Feed Me!

High protein pasta made from chickpeas

Plant-based, eggless mayonnaise

Pea protein chips Pancake mix with

whey and plant protein

Already a source of protein for millions across the world, the use of insects as an alternative protein is gaining momentum in the US, partly

because insects are high in protein but also because raising and harvesting them requires far less resources than standard meat options.

Chapul Bar Bitty Foods eXo Bar C Fu Mealworm Tofu

Insect Protein

Feed Me!

Cricket flour-based bars

Cricket flour-based cookies & baking mixes

Mealworm-based tofu replacement

Sourcing ingredients within a moderate radius of the business can increase sustainability and community involvement while creating a simpler supply

chain and possibly a deeper consumer connection as well.

Three Twins Ice Cream First Field Jersey Ketchup

Sourcing Local

Feed Me!

Back to the Roots

Stoneground Cereal

Just 3 Ingredients-all sourced in USA

Wheat is grown & harvested in CA

All milk, cream & eggs are sourced within 17 miles of the factory

Sources all tomatoes from home state of New Jersey

Transcendent

Transparency

Consumers are critically taking note of ingredients, marketing messages and the manufacturing process. A lack of transparency can result in a deep sense of distrust.

Traceability

Certifications

& Labels

The Story

Truth in

Labeling

Transparent

Packaging

Growth of

Refrigeration

Ingredients

Up Front Compostable

Packaging

Transcendent Transparency:


Certifications act as badges of trust and are a quick and easy way for consumers to assess a product. But you have

to prioritize your communications wisely and maintain authenticity to avoid consumer fatigue and distrust.

Nutiva Red Palm Oil Rhythm Kale Chips

Certifications & Labels

Transcendent Transparency

Organic, non-GMO, fair trade sourced

Certifications help alleviate concern about contentious ingredient

Gluten-free, organic, non-GMO

Nello’s Biodynamic

Marinara

First U.S.-grown, biodynamic tomato sauce

Biodynamic methods protect soil quality and are said to produce tastier food

Helping shoppers trace the origins of their product fosters a deeper connection with the brand. It builds trust in the product, process

and sourcing which addresses consumer desires to feel confident in the quality and social/environmental impact of their purchase.

Fish People Cisee One Degree Cereals Cat Spring Tea

Traceability


Ability to trace origins of your meal and meet the fisherman who caught it

Can use QR code on box to trace back to the family farm

Fair trade, non-GMO and fully traceable hot chocolate. Names contract manufacturer on label

Wild harvests Yaupon for this tea from family land in Cat Spring, TX

Simple formulations with nothing to hide. Listing every ingredient on the front of the package may build consumer trust and confidence.

Temple Tumeric Haagen-Dazs Five Bolthouse 1915

Ingredients Up Front


Ice cream with just 5 ingredients, prominently displayed on front of package

Cold-pressed juice line Tumeric beverages with all ingredients listed on front

Like buying from a local company, a connection is fostered when consumers feel they know the people behind a product. Personal,

humanizing stories are powerful and differentiating.

Jackson’s Honest Chips Fat Toad Farm Caramel Dave’s Killer

Bread

The Story

Transcendant Transparency

Started out of a desire to find a healthier, anti-inflammatory snack for their children

Tells story through social media

Includes daily updates on goats and photos of caramel processing and goat milking

Started by family-run bakery business to give his brother a 2nd chance as an ex-convict

Food Tribes

We are becoming a nation of food tribes – communities bound together not only by what we eat but also by our personal values, beliefs and behaviors.

Gluten-Free

Paleo It’s a

Lifestyle

Vegan Pegan

Food Tribes:


Whole, unprocessed foods is a core tenet of the paleo diet, but the category is slowly adopting more packaged food products.

Jackalope Good Food Co.

Cappello’s The New Primal

EPIC

Paleo

Food Tribes

Grassfed meat-based bar (bison, turkey, beef, lamb)

Grain-free bread & baking mixes

Grain-free pastas Recently introduced a

paleo cookie dough

Grassfed meat-based trail mixes

Neat

Meat Replacements Treeline Cheese SO Declicious

Beyond Meat

Beast Burger

There’s a spectrum among this food tribe as many Americans are adopting diet cues from Vegans to reduce their intake of less healthy

ingredients and environmental impact as plant-based alternatives bring ‘meat’ and ‘dairy’ back onto the plate.

Vegan

Food Tribes

Artisan nut cheeses Fermented cashew base Avoids “fake cheese”

taste

Pioneer in alternative dairy

Coconut, almond and soy based products

Burger texture appeals more to flexitarians

Most appealing to those who enjoy meat

Healthy meat replacement derived from nuts

Blurring the lines of difference, some products are finding success catering to multiple food tribes. One prevalent

example is the Pegan (Paleo Vegan).

Dang Coconut Chips Vixen Kitchen

Gelato

Zaza Snacks

Pegan

Food Tribes

Vegan, raw, paleo desserts Made with whole fruits,

vegetables, nuts and natural sweeteners

Vegan coconut chips positioned around paleo favorite: bacon

Vegan, paleo cashew-based gelato

Food tribes aren’t just about food. For many it’s a lifestyle that goes beyond the food and beverage category. Their restrictions and beliefs extend to other categories such as health & beauty.

Primal Pit Paste

The Dirt Trace Mineral

Tooth Brushing Powder

JASON

Gluten Free Shampoo

It’s a Lifestyle

Food Tribes

Organic, all natural deodorant

No gluten, GMOs or aluminum

Unlike glycerin, dirt supports tooth re-mineralization process

Gluten-free beauty care

Rehabilitation of

Science The role of food science is being reframed to embrace the spirit of natural products while addressing societal concerns – it’s a pivot that moves toward rebuilding consumer confidence and following consumer demand.

Green Chemistry

Beauty from

Within NourishTech

Probiotics Brain Health

Clean Energy

Rehabilitation of Science:


Silicon Valley’s gaze is falling on food tech and the prospect of fixing food to solve large societal problems.

Clara Foods

NourishTech

Rehabilitation of Science

Beyond Meat

Mission is to create mass market solutions that perfectly replace animal protein with plant protein

San Francisco-based biotech startup working to make animal-free egg whites

Bottega Organica Goddess Garden

Organics

When it comes to what we consume, people prefer the imagery of aprons over lab coats. However, some companies are figuring out

how to put the imagery of science to good use.

Green Chemistry


Uses medicinal plants and natural ingredients only (100% Natural) focused on healthy aging.

Developed by geneticist who was studying a cure for cancer

Uses only natural & organic ingredients Cleans up products often loaded with

chemicals Innovating in sun care category

Ozuke Jarrow Formulas

Yogurtein

Probiotics continue to be hot, showing up in new supplement formulations, cosmetics, greens powders, snacks and fresh-pressed

juices. Even more innovation is on the horizon.

Ohso Chocolate

Probiotics Pop


Good Greens

Line of fermented foods High in live & active

probiotic cultures

Yogurt/whey blend with probiotic benefits

Probiotic chocolate bar Fruit & vegetable bar with probiotics included

The energy beverage craze pivots toward natural sources and away from synthetic additives and caffeine.

Guayaki Runa Sambazon Gr3en Energy

Clean Energy


Several energy beverage formats

Uses yerba mate as energy source

Uses guayusa, an Amazon super-leaf packed with natural caffeine

Sources of energy are yerba mate, green tea and guarana

Sources of energy include green tea and guarana

Kale-based

Snackification

Symptomatic of an always-on culture often in need of fuel, snacking has evolved and the plain potato chip won’t cut it anymore. Snacks must be easy, tasty and nutritious.

Pouch

Packaging

Convenient

Nutrition

Coconut

Reimagined

Savory

Snacking

Cooking

Made Easy

Yogurt Juices

Snackification:


The twin pillars of commerce—make it cheap, make it convenient—stand on shakier ground in natural products, but there is a clear demand for higher

quality snack foods that deliver convenience and nutrition.

Veggie-Go’s

Fruit & Veggie Snacks

Navitas Tumeric

Tamari Almonds

Snack Out Loud

Power Puffs

Convenient Nutrition

Snackification

Nutrient dense fruit & veggie snack leathers

Highlight vegetables in form dominated by fruit

Bean & rice puffs made with coconut oil

Complete protein & fiber rich snack

Flavorful almond snack packed with superfoods

Convenience trumps price and pouch packaging reigns supreme. Putting old standbys into pouch form can increase a

product’s convenience and usability.

Plum Organic Soups

Batter World

Pancake Batter YumButter Munk Pack Oatmeal

Pouch Packaging

Snackification

Easy to pour pancake batter – no mixing, no mess

Nut butters in pouch allow you to eat anywhere

Oatmeal in pouch form makes easy to eat on the go

Soup in pouch form

As the concerns about sugar continue to grow, many food categories built around sweet flavors are expanding to savory and global taste profiles.

Mediterra Savory Bars

Good Culture

Clif Energy Food

Savory Snacking

Snackification

Available in flavors like Black Olive & Walnut and Sundried Tomato Basil

Cottage cheese offering in flavors like Sundried Tomato and Kalamata Olive

USDA Organic tomato puree Replaces hyper-sweet sports

gels

Shoppers still value meals made at home but don’t always have the time to prepare them from scratch. Meal prep kits with clean

ingredients are at the forefront of enticing options.

Beetnik TableCookSimple Meals

Cooking Made Easy

Snackification

Frozen meals with fresh, simple ingredients

No GMOs, no artificial ingredients

Boxed meal starter kits

High quality ingredients (grassfed, pasture-raised, organic)

Made with whole foods and a simple ingredient list

Bean & Lentil based meals

No artificial colors or preservatives

Value(s) Shopper

Consumers are moving beyond price as their single purchasing filter as a new and complex world of values now influences purchasing decisions.

Sustainable

Sourcing

Environmental

Sustainability

Food As Medicine

Mission-Based

Brands B Corps

Value(s) Shopper:


From considerations about how and where raw materials are grown and sourced to the wages of those who do the growing and

harvesting, there’s a growing focus on sourcing raw materials responsibly and sustainably.

Harmless Harvest Safe Catch Big Tree Farms

Sustainable Sourcing

Value(s) Shopper

Sources organic coconuts from Thailand

Coconuts are picked by hand as part of non-destructive cultivation

Sourced from captains whose methods minimize environmental impact

Every single fish is mercury tested

Indonesia’s largest organic food company

First and only certified fair trade coconut sugar

OneCoffee K Cups

Chia Pod

Bircher Muesli

Bearded Brothers Bars Loliware

Environmentally Sustainable

Value(s) Shopper

99% compostable K-cups Compostable cups Made of materials so

natural they are safe to eat

Compostable packaging

Get those supplement ingredients into food and get your functional benefit naturally. Both logic and emotion are driving consumers towards an increased awareness that food is a form of medicine.

Sweet Earth Functional Burritos

GoodBelly TuMe Tumeric Drinks

Food As Medicine

Value(s) Shopper

Plant-based protein burritos with food ingredients added for functional benefits

Includes “Get Cultured”, “Get Focues”, “Stay Zen”

Sports drink that uses raw tumeric root to promote additional benefits (anti-inflammatory, detox, etc.)

Adds probiotics to juice mixes to support gut health

Mission-based brands help consumers do good with their purchasing power. Conscious consumers can help others

through the products they choose to buy.

Make a Stand Lemonade

Sunshine Nut Company

Mission-Based Brands

Value(s) Shopper

Began as a lemonade stand run by an 8-year old to end child slavery

Roasting facility in Mozambique employs adult orphans

Re-invests 90% of proceeds in Mozambique communities

Giv Foods

Donates half of all profits from sale of its veggie burger products to charities its customers help choose

trends are moving faster than ever into the

mainstream. So pay attention!

Natural Products Adoption Curve


What is NCN


• The mission of Nutrition Capital Network (NCN) is to:– Facilitate the financing process for small to mid-size companies– Introduce investors to the next generation of successful brands

and technology in the nutrition, health & wellness, and natural/organic product industries.

– Create a vibrant network for collaboration and partnerships

NCN will accomplish this mission by:– Creating a series of meetings, events, and virtual tools to

connect companies and investors– Facilitating capital flow for the betterment of business and

society

• Since October 2007, NCN has hosted 25 investor meetings and presented 441 companies, 54% of which have raised capital or completed some sort of transaction.

Presenters: 441 companies have presented at 25 meetings since 2007 from a dealflow list of more than 2,200 applicants

Investors: 260 investor entities have attended NCN investor meetings from strategic investors in CPG, food, pharma and ingredients, to professional investors in private equity & venture capital and family funds, to former industry owners, high-net-worth individuals and angel investors; Cornerstone Investor members number 40 in 2015

Sponsors: Specialist service providers: 9 in 2015 in law, IB, recruiting, PR

Selection Committee: Industry experts who help recruit, select and mentor presenting companies at each meeting: 25 in 2015

Note: NCN is a private company supported by Cornerstone Investor subscription membership fees, investor meeting registrations, sponsorship fees and presenter fees. NCN makes no fee on transactions, but principals or selection committee members may invest or take positions in NCN companies. Information provided by NCN does not constitute investment advice nor the offer to sell any securities in any jurisdiction.


NCN’s Network or ‘Ecosystem’

NCN investor meetings are presented in association with• NCN Law Firm Sponsor: Venable LLP• NCN Investment Banking Partner: Silverwood Partners• NCN Life Science Innovation Partner: SPRIM• NCN Clinical Research Partner: KGK Synergize• NCN Executive Search Partner: Leadership Capital Partners• NCN Industry Advocacy Partner: New Hope Natural Media• NCN Communications Partner: Christie Communications• NCN Technology Commercialization Partner: Specialty Nutrition Group• NCN Natural Product Formulation Partner: MetaBrand• NCN Government Trade Partner: New Zealand Trade & Enterprise

NCN 2015 Sponsor Partners


• Grant Ferrier, Co-Founder, NCN Principal & CEO• Thomas Aarts, Co-Founder, NCN Principal• Greg Horn, SNG, Prinicipal, Chair of Screening Committee• Steve Allen, Co-Founder, NCN• Mike Dovbish, NCN Executive Director• Edward Hauck, Ed Hauck Consulting• Marie Benedix, A Bigger Fish Bowl • Matthew Roberts, NBTY, Abbott Nutrition, Nestle• Carlos Barroso, Campbell Soup Co.• Lara Burns, former SPINS (cont.)

SCREENING COMMITTEE


• Steven Schultz, Align Partners• Tim Avila, Systems Bioscience• Ian Newton, Ceres Consulting• Beverly Emerson, Olive Tree Product Development• Mike Burgmaier, Silverwood Partners• James Tonkin, Healthy Brand Builders• David Thibodeau, Wellvest Capital• Brad Barnhorn, Board Advisor• Bob Burke, Natural Product Consulting• Lauren Clardy, NutriMarketing

NCN NUTRITION CAPITALNETWORKSCREENING COMMITTEE (cont.)

• Keith Kohler, Industry Advisor, GF Solutions• Dr Geoffrey Margolis, Inventor, President & Founder of

NFF Inventions and New Food Frontiers, Nestle• Eric Schnell, Founder, MetaBrand, Entrepreneur, Co-

founder & former President of Steaz

SCREENING COMMITTEE (cont.)


o NCN Europe II: 16 companies presented in May in Geneva, Switzerland

o NCN XVI: New York: 20 companies in Mayo NCN Ingredients & Technology Investor

Meeting VII at SupplySide West, October 6, 2015, Las Vegas – 12-14 companies present

o NCN XVII, November 3-4, 2015, Hilton San Francisco Financial District - 20 companies present


NCN 2015 CALENDAR

o NCN Europe III: 16 companies present, May 9, 2016, in Geneva, Switzerland

o NCN XVIII: New York, NY - 20 companies in May 2016

o NCN Ingredients & Technology Investor Meeting VIII at SupplySide West, October 2016, Las Vegas: 15 companies present

o NCN XIX, November 2016, San Francisco: 20 companies present


NCN 2016 CALENDAR

INVESTMENT FOCUSCompanies in the nutrition and health & wellness industry

across the value chain including the following sectors:

Dietary Supplements: VMS, H&B, Sports, LMRs

Ingredients, Medical Foods, Technology for OTC/Pharma

Natural & Organic Foods H&W Enabling Technology

Functional Foods Health & Fitness; Green Products

Healthy Foods, BFY Foods Weight Loss

N&O Personal Care, Cosmetics Household and Pet Products


NCN NUTRITION CAPITALNETWORK - c.ymcdn.comc.ymcdn.com/sites/ · Stratum/Novus, Qualitas-Valicor, Lodaat, LiveLeaf, MycoTechnology, Blue Prairie, Natreon-DSM announced in July 2015

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