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The Pulse Beverage Corporation Investor Presentation OTCQB: PLSB Summer 2015 Nutrition Made Simple®
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The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Mar 14, 2020

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Page 1: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

The Pulse Beverage Corporation

Investor PresentationOTCQB: PLSB

Summer 2015

Nutrition Made Simple®

Page 2: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• Safe Harbor: This presentation contains forward-looking statements relating to anticipated plans, products and financial performance. These statements are not guarantees of future performance, and it is important to remember that actual results may differ – and may differ in a material way – from these forward-looking statements. In addition to the factors that mentioned today, additional factors that could affect actual results can be found in the most recent Annual Report on Form 10-K and the most recent Form 10-Q filed with the Securities and Exchange Commission. The forward-looking statements are made as of today’s date, and the Company assumes no obligation to update any such statements to reflect events or circumstances after today’s date.

• This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibility in respect to any use or reliance of any information, whether financial or otherwise, contained in this presentation. The statements contained within this presentation have not been evaluated by the Food and Drug Administration. The Company’s products are not intended to diagnose, treat, cure or prevent any disease.

Forward-Looking Statements

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Page 3: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Led by beverage industry veterans, we develop and

market great tasting and nutritional beverages that

provide real health benefits

Our expanding portfolio of products consists of Natural

Cabana® Coconut Water, Lemonade and Limeade and

PULSE® Heart & Body Health functional beverages –

originally developed by Baxter Healthcare

Company Overview

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Page 4: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• Beverage industry veterans with significant branding, operations and distribution

experience including being instrumental in the growth of Clearly Canadian from

start-up to a $178 million company

• Robust distribution network with more than 25,000 delivery points for Natural

Cabana® including: Albertsons/Safeway, Walmart, Wegmans, Kroger/Fred

Meyer/Ralphs, Kmart, Circle K, Walgreens, 7-Eleven, Smashburgers, Whole

Foods, H-E-B, Hy-Vee, Save Mart, Hannaford, Food City, Raley's, Price Chopper ,

WinCo and Gelson’s

• Distribution system includes more than 150 distributors, serving 48 states, plus

Canada, Mexico, Panama, Bermuda and Ireland

• Free and clear ownership of Pulse® Heart & Body Health from Baxter Healthcare

Corporation, which invested $10 million to develop and test market this functional

beverage

• Rapid growth; 800,000 cases expected for fiscal 2015 (four years after formation)

through expansion into Canada and Mexico. Normally takes seven to eight years to

reach 1,000,000 case level

Investor Thesis

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Page 5: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Experienced Management Team

Robert Yates – President and CEO

• More than 20 years in the beverage industry

• Generated approximately $50 million in annual sales for Clearly Canadian Beverage Corporation

• U.S. Distribution portfolio included: Monster Energy®, AriZona® Iced Tea, Rock Star Energy Drink®, Vitamin Water®, and Perrier®

• Successfully launched his own brand, Kwencher, and grew it to a 1.7 million case brand in less than two years

Parley (Paddy) Sheya – VP and National Sales Manager

• More than 30 years of sales and distribution management experience in the beverage industry

• Extensive track record developing brands and building sales and distribution systems, including leading Clearly Canadian® from start-up to 4.8 million cases in less than three years, and managing Kwencher® sales from start-up to 1.7 million cases in less than two years

Ron Kendrick - Chief of Product Development

• More than 30 years in the beverage industry

• Founded Catalyst Development Inc. and was instrumental in creating formulations for many companies, including PULSE® brand functional products for Baxter Healthcare

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Page 6: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Advisory Board Members

Bruce Horton

• Co-founded Clearly Canadian Beverage Corporation, serving as CFO and director from 1987 to 1997

• During Clearly Canadian tenure, sales grew from start-up to $178 million

Pamela Peeke, M.D.

• Internationally recognized expert, physician, scientist and author in the fields of nutrition, stress, fitness and public health

• Pew Foundation Scholar in nutrition and metabolism and Fellow of the American College of Physicians

• Chief Medical Correspondent for Discovery Health TV; has a national bestselling book, Fit to Live

• Chief lifestyle expert for WebMD’s 50-million members and spokesperson for American College of Sports Medicine

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Page 7: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Pulse Beverage Corporation Snapshot

Stock price, trading range and market cap data as of 6/22/2015

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Founded 2011

HeadquartersNorthglenn,

Colorado

Trading Symbol OTCQB: PLSB

Market cap $12.2 M

Stock price $0.17

Shares Outstanding 64 M

52 week trading range $0.11 - $0.48

Average Volume (3 Month) 31,000

Long-Term Debt 0

Page 8: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Natural Cabana™ Lemonades and Limeades

+ Natural lemonades: High-growth market with few entrants

+ Vast distribution network, laying the groundwork for Coconut Waters

and PULSE Heart & Body Health functional beverages

+ Expanding into Mexico through national distributor

Natural Cabana™ Coconut Water

+ Rapidly emerging category targeting consumer trends – “healthy” and

“natural”

+ Category has nearly doubled in revenue every year since 2005

+ Debuted in March 2014 in the United States

+ Currently expanding into Canada and Mexico

PULSE® Heart & Body Health

+ Targeting nutritional and functional beverage segment of non-

carbonated market

+ Uniquely positioned in marketplace as product with real science and

technology behind health claims; available in select markets

Great-Tasting and Nutritional Beverages

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Page 9: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Natural Cabana™ Lemonade and Limeade

• Refreshing, natural, ready-to-drink

lemonades and limeades

+ Distinct, great tasting lemonade and limeade flavors

+ Significant reduction in calories compared with

competition - only 60 calories and 12 grams of sugar

per 8 oz. serving

+ No artificial sweeteners or coloring

+ 89% of juice drinkers consume lemonade – 36% as

favorite juice drink

+ 56% of all teenagers prefer lemonade in the juice

category

+ Lemonade is America’s second favorite juice drink

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Page 10: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Natural Cabana™ Coconut Water

• Rapidly emerging category

+ Capturing shifting tastes away from carbonated drinks

+ Wall Street Journal: Coconut water category has nearly doubled in

revenue each year since 2005

+ Pulse’s competitive edge: Vast distribution network set forth by

Natural Cabana™ Lemonade

+ Debuted in March 2014 in the United

States. Currently expanding into Canada and Mexico

• In-demand attributes

+ High-quality and competitively priced

+ Great tasting and healthy with only 60 calories and 10 grams of

natural occurring sugar per serving

+ All natural alternative to typical sport drinks

+ High in electrolytes, naturally fat- and cholesterol-free, excellent

source of hydration

+ Made from the highest quality coconuts from Vietnam

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Page 11: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

PULSE® Heart & Body Health Functional Beverages

• Formulated to be scientifically effective

+ Utilizes liposome nano-dispersion technology, developed by Baxter Healthcare Corporation, allowing

absorption of nutrients and providing competitive advantage over so-called “vitamin beverages”

+ May be the only nutraceutical beverage developed that has functional ingredients to help promote

and maintain health

+ Pulse Beverage owns formulations, rights and trademarks in perpetuity without royalties

+ Distribution foundation established by Natural Cabana® Lemonade brand

+ PULSE® Heart & Body Health formulation tastes great

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Page 12: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

National Distribution in Key Retailers

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Page 13: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Speed to Market

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Company Reaching 1 Million Cases

Vitamin Water 7 years

Honest Tea 8.5 years

Jones Soda 7 years

Clearly Canadian 3 years

Pulse is more than half way to reaching a million

case threshold in sales in just under four years by the end of 2015

Page 14: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• Function Drinks

+ Three beverages/seven flavors, emphasis on

detox/weight loss/energy, various antioxidants,

mostly trace amounts of vitamins and elements

• Neuro

+ Eight beverages/formulations/flavors, lightly

carbonated, proprietary blends and vitamins

• ZICO

+ Coconut water brand acquired by Coca-Cola in

2013

• Hubert’s Lemonade

+ Manufactured by Monster Beverage Corporation

Competitive Landscape

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Page 15: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• Pulse has Walmart store manager approval status across the country to sell Natural Cabana®

Lemonade/Limeade. The Pulse team has set more than 300 Walmart stores to date;

• Wegmans 50 mega-stores have received their first shipment of 4,000 Natural Cabana® Lemonade/Limeade

variety 12 packs. Wegmans is a US North Eastern favorite with its customers.

• Pulse also announces that Natural Cabana® Lemonade, Limeade and Coconut Water will be carried in the

cold box and grocery aisle/displays by Minyard Food Stores, a hometown locally owned supermarket chain

having 12 locations in the Dallas/Ft. Worth Metroplex area. Minyard has served these communities for

more than 80 years. Natural Cabana® Lemonade, Limeade and Coconut Water will also be carried by Vista

Super Markets in its cold box and grocery aisle/displays. Vista Super Markets is a 10 store, El Paso, Texas,

grocery store chain.

• Pulse’s Natural Cabana® Coconut Water was featured as a cover article in the March 2015 edition of

Beverage Industry, a national beverage magazine. Link to the related article:

http://www.bevindustry.com/articles/88249-coconut-water-sales-expanding-robustly. The article

discusses the sector and all of the health benefits of coconut water and that the category is expanding

rapidly in North America, Europe and Asia. They talk about all the major companies in the category and

that Natural Cabana® Coconut Water is a new entrant in the category. However, after considering all the

entrants in the category and their packaging they chose to place Natural Cabana® Pineapple Coconut

Water on the cover because of its packaging.

Recent Developments

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Page 16: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• The Company recently closed a non-brokered private placement and raised $1.1m through a $0.10 per

Unit offering. With these additional funds Pulse can accelerate its PULSE® distribution and Natural

Cabana® rollout into Mexico and Canada

• Pulse signed an agreement with an established Mexico distributor in February, 2015 to distribute Natural

Cabana® Coconut Waters, Lemonades and Limeades (Limonada’s in Mexico) to key chain store accounts

obtained over the past few months. This distributor has been in business for more than 60 years and has

more than 1,000 employees with distribution points in every major city in Mexico and distribution routes

to almost all retail outlets. Our Mexico operations are headed by Carlos Villarreal. Mr. Villarreal was

responsible for the Mexico introduction and distribution of Monster Energy Drink® in 2004 and led the

expansion across all of Mexico up until June, 2010. Mr. Villarreal has worked with leading brands such as

Dr. Pepper Snapple and Miller, among others, in their entry/distribution strategies. He has also served as a

Director for Anheuser-Busch and for Grupo Modelo (Corona) in the U.S. and Mexico;

Recent Developments (Continued)

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Page 17: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

Driving Revenue Growth and Strong Operating Leverage;

Building Long-Term Sustainable Shareholder Value

Build Worldwide Distribution Network

With Natural Cabana® Lemonade

Leverage Network

To Introduce Natural Cabana®Coconut Water and PULSE®

Enhance Product Portfolio;

Increase Marketing Initiatives

Growth Strategy

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Page 18: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

• Proven management team

• Niche products in high growth categories

• Great-tasting, low-calorie natural products with consumer appeal

• Real nutritional value for PULSE® Heart & Body Health functional

beverages, as clinically proven and developed by Baxter Healthcare

• Expanding distribution network, with more than 85% of Class “A”

distributors, such as Independent, Coca-Cola, Pepsi, Dr. Pepper Snapple

Group (7-UP), Anheuser-Busch and Miller Coors

• Listings at more than 25,000 retail outlets

• Rapid growth, with four-year ramp to 1 million

case sales which normally takes 7 to 8 years

• Currently, low market multiple and low market cap

Why Invest in Pulse?

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Page 19: The Pulse Beverage Corporation · • More than 30 years of sales and distribution management experience in the beverage industry • Extensive track record developing brands and

The Pulse Beverage Corporation

11678 North Huron Street

Northglenn, CO 80234

(720) 382-5476

www.pulsebeverage.com

Contact

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