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Experienced Management TeamExperienced Management Team
Robert C. Harrison President & C.E.O.
Don Paterson, C.A.Chief Financial Officer
Peter C. Morrice, M.D.
Scientific Advisor
Ian MorriceExecutive Vice President
Business ModelBusiness Model
• Branding “Dairy Fresh Farms™”
• Developing licensing agreements for the manufacture and distribution of its innovative dairy products
““Dairy Fresh FarmsDairy Fresh FarmsTMTM” ” Milk and Dairy ProductsMilk and Dairy Products
Skim Milk
• Patented Process • Exclusive Canadian License• Milk and Cream• Coming soon
GMO Free Canola Oil
Ice Creams, Yogurts and Cheeses
Product BenefitsProduct Benefits
Tastes as good as or better than 2% milk Low in saturated fat Low in cholesterol Lactose-Free Nutritionally superior to 2% milk Patented Formula-enhanced with
monounsaturated fat
• Contributes to reduced serum cholesterol levels• Helps prevent heart disease
Dairy Fresh Farms: Optimal Fat Dairy Fresh Farms: Optimal Fat ProfileProfile
SFAs*
PUFAs
MUFAs
Dairy Fresh
SFAs
PUFAs
MUFAs
2% Milk Fat
Recommended Daily Allowance
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SFAs less than 7%
PUFAs approx 13%
MUFAs up to 80%
*Saturated fat content is below U.S. threshold(0.5 grams per serving). This allows labelling as“no saturated fat”.
MUFA - Monounsaturated fat PUFA - Polyunsaturated fat SFA - Saturated fat
Dairy Fresh Comparison Dairy Fresh Comparison Chart Chart
COMPARISONS *2% Milk *1% Milk Dairy Fresh
Serving Size 1 cup (240 ml)
Calories (energy) 129 108 90
Protein (grams) 8.6 8.5 7
Fat (grams) 5 2.7 2.5
Carbohydrates (grams) 12 12 10
Cholesterol (mg) 30 15 5
FAT
Saturated 3.3 1.7 0.3
Polyunsaturated 0.2 0.1 0.6
Omega 6 0 0 0.4
Omega 3 0 0 0.2
Monounsaturated 1.5 0.8 1.5
*Data for 2% and 1% Milk are estimates
World Authorities on Monounsaturates World Authorities on Monounsaturates and Preventive Cardiologyand Preventive Cardiology
• Scott Grundy, M.D., PhD University of Texas SW Medical Center (Chairman of the
NCEP)
• Nilo Cater, M.D. University of Texas S.W. Medical Center
• Penny Kris-Etherton, PhD, R.D. Penn State University (American Heart Association Advisor)
• Nathan Wong, PhD University of California, Irvine
Professionally Endorsed by…
January 1, 2003
“A Healthy Diet, Low in Saturated
and Trans Fats may Reduce the
Risk of Heart Disease”Source: Health Canada: Canadian Food & Health Inspection Agency
Nutritional Labelling Has Nutritional Labelling Has ChangedChanged
The Timing is The Timing is RightRight
a. Sources: Agriculture and Agri-Foods Canada: Functional Foods and Nutraceuticals Industry
World market growth in natural health & functional food productsa
• Increasing consumer understanding of the link between diet and disease
• Aging populations• Advances in food technology and nutrition research
Consumer trend to milk with lower fat content or milk alternative products (i.e. Soy & Rice beverages, Lactose-Free beverages)
High growth for foods that are lower in saturated fats and cholesterol
License signed with Canadian Heart & Stroke Foundation for use of symbol in Canada
Canadian Dairy IndustryCanadian Dairy Industry
Sources: Statistics Canada, Calculation done by the Dairy Section, Agriculture and Agri-Food Canada, Dairy Fresh and Harbinger Research estimates
Industrial Milk,
$6,572
Cream,$433
Milk,$4,484Fluid Milk,
$4,917
Yogurt, $920
Butter, $460
All Other, $657 Ice
Cream, $2,629
Hard Cheese $1,906
2004 Canadian Dairy Market BreakdownTotal Market Size = $11.5 Billion
(in CD$ millions)
42%58%
91%
9%
10%
40%
29%
14%
7%
Consumption of Milk & Cream by Consumption of Milk & Cream by ProvinceProvince
12.3%
11.6%
6.5%
38.7%
22.5%
8.4%
Maritimes (249)Quebec (669)Ontario (1,149)Man/Sask (192)Alberta (345)B.C. (365)
Total Litres Consumed = 2,968MM
Province (MM Litres)
Source: Canadian Dairy Commission, 2003
Product’s OriginsProduct’s Origins
• Licensed in early 90’s• Marketed under brand
“Farmer’s Best”
• Obtained the Australia Heart Foundation’s Approval - “Tick” logo is on “Farmer’s Best” package
• Grew the fluid milk category by 3.8% while achieving a 4.5% market share
• Priced at a 25% premium vs. regular milk
RESULTS: Purchase Intent ---RESULTS: Purchase Intent ---Top 2 Box Pre Top 2 Box Pre andand Post Taste Post Taste
TestTest100%
80
60
40
0
20
Average(47%)
85th Percentile(62%)
Average = Average score across all food categories85th Percentile = 15% of all food categories scored at this level or above
Top Box increased from 48%
to 58% Post
Taste!
Dairy Fresh (86%)
86%
Top Box =Definitely will purchaseTop 2 Box = Definitely/probably will purchase
RESULTS: Health Advantage --- Top RESULTS: Health Advantage --- Top 2 Box2 Box
100%
80
60
40
0
20
Average(56%)
85th Percentile(73%)
Average = Average score across all food categories85th Percentile = 15% of all food categories scored at this level or above
Dairy Fresh (87%)
87%
Purchase IntentPurchase Intent
Vancouver: over 8 in 10 would purchase Dairy Fresh Farms instead of the milk they currently buy.
17%
83%
Purchase Instead Of
PurchaseIn Addition To
Vancouver
30%
70%
Montreal: 7 in 10 would purchase Dairy Fresh Farms…
Montreal
Of the 85% who expressed positive purchase interest…
Dairy Fresh Farm’s Milk is for Dairy Fresh Farm’s Milk is for Everyone!Everyone!
4%
50%
71%
92%
90%
98%
89%
92%
13%
58%
82%
89%
89%
91%
97%
98%
Only for people with heart health issues
I would drink this product more frequently than the milk Icurrently drink
Is worth paying a little more for
For people like me
For the whole family
For everyday consumption
For people who want the taste of milk without the badfats
For people looking for a healthier alternative
VancouverMontreal
What Did They Like?What Did They Like?
• Three quarters thought the taste was better than expected
• Graphics of pouring glass of milk was a clear winner
• Low in cholesterol, low fat and lactose-free all important
Dairy Fresh Product LaunchesDairy Fresh Product Launches
*93% Interested in Cheese *88% Interested in Ice Cream
*Based on Consumer Feedback from Research and In-store samplings
Investment ConsiderationsInvestment Considerations
The right product at the right time in one of the biggest and fastest growing categories worldwide
Exclusive Canadian license on patented process
A strong team of experienced and committed individuals
Solid relationships with relevant strategic partners
Endorsements of the health benefits of “Dairy Fresh Farms” by leading North American Experts
Outstanding results in Canadian research!
COMPANY:Dairy Fresh Farms
413 Churchill Avenue NorthOttawa, ON KIZ5C7
Phone (613) 724-2484Fax (613) 722-6343
www.dairyfresh.ca
INVESTOR RELATIONS:ROI Group Associates, Inc.39 Broadway, Suite 2410
New York, NY 10006Phone (212) 495-0200
Fax (212) 495-0746www.roiny.com
Bob Giordano, President, [email protected]
Contact InformationContact Information