ICR Conference January 2016 Exhibit 99.1
I. Introduction & Overview
We are an innovation driven brand disrupting a huge, growing industry We are positioned at the confluence of pet parenting and consumer health & wellness with a socially responsible brand We are redefining what good pet food is in ways that are intuitive to consumers We deliver a value proposition relevant to the average consumer and every class of pet retailer We have a scalable and very difficult to replicate business model from product conception to point of purchase Who is Freshpet
pets. people. planet. The power of fresh natural & simple foods Less processed Acts of kindness Our team Our partners Our families Efficient conservation Renewable energy Sustainable practices Carbon footprint offset At Freshpet, we have a single-minded mission -- to bring the power of real, fresh food to our dogs and cats. And, we're committed to doing so in ways that are good for our pets, for people and for the planet. This is our commitment
We believe that there’s a better, healthier way to develop & deliver pet food We use only the freshest, most wholesome, human-grade ingredients So we produce ultra premium, fresh pet food for the dogs & cats that we all love in our own Kitchens How we are different…
Our Product Promise
Traditional Pet Food The Freshpet Difference Unchanged for over 70 years 9 years of continuous innovation Wet Dog Food Dry Dog Food Fresh ingredients, with all-natural meats and veggies sourced in North America Gently cooked without preservatives at the Freshpet Kitchens in Bethlehem, PA Unique branded Freshpet Fridges at leading retailers vs. We are Disrupting the Pet Food Industry
Relevant To All Major Classes Of Pet Food Retail Distribution in Stores and Counting(1) Grow Points of Distribution Runway To Expand Distribution Retail Class Some Of Our Customers Pet Specialty Mass Merchandisers Club Traditional Grocery Natural (1) Store Count as of December 31, 2015 1 5 , 0 0 0+ ~35,000
Freshpet Stores Across North America – 15,000+
Source: IRI Total US Multi Outlet Average Price latest and brand website feeding guidelines – smallest size for all competitive SKUs listed Leading Brands Freshpet is Affordable for the Average Consumer
Name Title Years of Packaged Good Experience Previous Experience Richard Thompson Chief Executive Officer 30+ Dick Kassar Chief Financial Officer 29+ Scott Morris Chief Operating Officer 21+ Stephen Weise Executive VP of Manufacturing and Supply Chain 30+ Cathal Walsh Senior VP of Cooler Operations 17+ Michael Hieger Senior VP of Manufacturing Operations 18+ Stephen Macchiaverna Senior VP, Controller and Secretary 26+ Thomas Farina Senior VP of Sales 26+ Lisa Barrette VP of Business Development 15+ Christopher Taranto VP of Procurement & Planning 23+ Kathryn Winstanley VP of Marketing 14+ VP of Marketing Zone Marketing Manager Controller Eastern Region VP Senior Brand Manager CEO CFO Marketing Manager Controller Brand Manager Founder, CEO, President CFO, Co-President Fully-staffed teams at corporate HQ and Freshpet Kitchens COO COO Pet Food Group Director Engineering Manager Pet Treats Manager Sr. Director Director of Supplier Management, Global Operations Regional VP Experienced Team with a Proven Track Record
The Freshpet team delivered strong results across several areas Topline growth % (year end est.)~34% vs. YAG Adjusted EBITDA~100%+ vs. YAG Successful innovation - shredded and baked launches~$10MM+ in revenue Continued improvements across consumer fundamentalsPenetration & Repeat rates Kitchens expansion phase I complete and phase II in progressOn time and on budget Organization build out and developmentExpanded capabilities Freshpet Had a Year Marked by Great Achievements
2013-2015 – CAGR Growth 35% Net Sales CAGR: 35%
II. Value Proposition
6. Brand 1. Product Know-How 2. Manufacturing 4. Freshpet Fridge 5. Retailer Economics 3. Supply Chain The Freshpet Value Creation Platform
Note: Freshpet branded refrigerators as of June 30, 2015 Our Freshpet Fridges allow us unparalleled control over our merchandising space Powerful and distinct brand ambassadors Opportunity for unparalleled communication with our consumers We don’t fight for shelf space with other manufacturers Major barrier to entry for future competition We own and maintain 15,000+ Freshpet branded units in pet aisles across North America We Control the Merchandising Space
III. Growth Strategy
Grow Points of Distribution Grow Awareness and Trial New Product Innovation Leverage Scalable Infrastructure 1 2 3 4 We have four levers for long term growth
Grow Points Of Distribution Grow Points of Distribution Freshpet is sold across all major classes of retail including grocery, mass, club, pet specialty and natural Opportunity to approximately double store count at existing retail partners alone Substantial runway to penetrate new retail accounts Attractive economics: 15 month cash-on-cash payback period(1) Targeting double digit Freshpet Fridge Growth We Are Still Early In The Game Drivers Of North America Penetration 1 (1) Calculated by comparing our total current costs for refrigeration (including installation and maintenance) to the Company’s current margin on net revenues
Guerilla Marketing Digital & Social Media Differentiated Packaging Retail Merchandising Freshpet Share of Dry and Wet Dog Food Freshpet Toolbox to Connect with Consumers National TV Advertising Source: Market share data as per IRI Approximately 20% of dog owners today have ever heard of Freshpet 2 Grow Awareness and Trial
New Product Innovation 3 Current New Product Pipeline Innovation Adds Incremental Sales Layers Packaged Facts Fresh and Frozen Food Report (2) Euromonitor Fresh Baked Launched in 2015 Fresh Baked found in dry dog food aisle Made from 100% fresh chicken or turkey No processed animal meals Available in grain and grain-free varieties Fresh Raw Launched in 2014 Fresh Raw vs. Competitors’ Frozen Raw Frozen Raw is a $300mm category today(¹) Shredded Launched in 2015 Looks like food people eat at home Convenient, easy to use packaging Further differentiates product portfolio in the pet food space Continuing to Expand Freshpet Cat Offerings Freshpet currently underdeveloped Plan to develop a range of products for cat owners $6.8bn category in 2013(²) $16 $25 $43 $63 $87 $116
Freshpet Fridge growth Awareness & adoption New product innovation Incremental Sales Flow Through Increasing capacity utilization Fully-staffed manufacturing team Have historically taken pricing to offset cost inflation Corporate infrastructure in place National TV advertising in place Increasing efficiency on outbound freight Net Sales Drivers Gross Profit Leverage SG&A Leverage Operating Leverage *Adjusted for $1.8 million and $0.9 million for non-cash items related to stock compensation and the fair valuation of warrants in 2014 and 2013, respectively. **Adjusted for $1.3 million and $0.2 million for non-cash items related to stock-based compensation and the fair valuation of warrants in 2015 and 2014, respectively. Fridge Growth Net Sales Growth Gross Profit Growth SG&A Growth Fridge Growth Net Sales Growth Gross Profit Growth SG&A Growth 4 Leverage Scalable Infrastructure
Double digit Topline Growth Double digit Store Growth High double digit Adjusted EBITDA Growth Building out 2015 innovation and new 2016 innovation Developing a sustainable store growth foundation for 5+ years Kitchens expansion phase II completion and startup Improving commitment to Pets, People and Planet 2016+ -- Positioned for Continued Growth
Freshpet 2016 Growth Platform