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  • 1. The Pulse Beverage CorporationCorporate Presentation
  • 2. This presentation is prepared by The Pulse Beverage Corporation (the “Company”), and is solely for the purpose of corporatecommunication and general reference only. The presentation is not intended as an offer to sell or to solicit an offer to buy or form anybasis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used orrelied on without professional advice.The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, itscurrent or historical operation results or its future business prospects.The presentation contains certain forward looking statements with respect to the financial conditions, results, operations and businessof the Company. The statements and forecasts involve risk and uncertainly because they relate to events and depend on circumstancesthat occur in the future. There are a number of factors that could cause actual results or developments to differ materially from thoseexpress or implied by these forward looking statements and forecasts.This presentation is provided without any warranty or representation of any kind, either express or implied. The Company specificallydisclaims all responsibility in respect of any use or reliance of any information, whether financial or otherwise, contained in thispresentation. The statements contained within this presentation have not been evaluated by the Food and Drug Administration. TheCompany’s products are not intended to diagnose, treat, cure or prevent any disease.This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934, including statements regarding the business of the Company and its industry generally, businessstrategy and prospects. These statements are based on the Company’s estimates, projections, beliefs and assumptions and are notguarantees of future performance. The Company cautions that these statements are subject to various known and unknown risks andthat actual results may differ materially from those expressed in forward-looking statements. The Company undertakes no duty toupdate these forward looking statements except as required by law.Disclaimer and Forward Looking Statements
  • 3. Investment ProfileExchange/Symbol: OTCQB: PLSBAs of January 22, 2013:Shares Outstanding: 40 millionMarket Cap: $30 millionCurrent Stock Price: $0.743 Month Average Trading Volume: 50,000 shares per dayShareholders ≈ 3,000www.pulsebeverage.comThe Pulse Beverage Corporation intends to list on a more senior exchange such asAMEX or NASDAQ as soon as it completes a financing which will allow it to qualify
  • 4. • The Pulse Beverage Corporation (“Pulse”) is based in Northglenn, Colorado and wasformed by successful beverage industry veterans for the purpose of exploiting nichemarkets in the beverage industry• Pulse’s mission is to be one of the market leaders in the development and marketingof nutritional/functional beverage products that provide REAL health benefits to asignificant segment of the population and are convenient and appealing to consumers• Pulse has assembled an outstanding management team of beverage industryexecutives that have successfully launched and/or managed the distribution for morethan twenty-five major brands over the past twenty years and have strongrelationships with distributors and buyers who supply thousands of retail outlets,supermarkets, convenience stores and mass merchants• Pulse’s initial products consist of PULSE® Heart Health, Women’s Health and Men’sHealth Formulas and Cabana™ 100% Natural LemonadeCompany Overview
  • 5. • The PULSE® brand of beverages was formulated under license by a majorhealthcare company that spent in excess of $10 million formulating,developing and initially marketing the PULSE® brand• The PULSE® brand of beverages was formulated to be scientifically effectiveby containing ingredients that are widely considered to be critical to adulthealth including liposome nanotechnology that introduces the ingredientsinto the beverage in a format that allows the body to absorb the nutrients• Pulse has free and clear ownership of the formulations, rights andtrademarks relating to the PULSE® brand of beverages including the right touse the following Side-Panel Statement for PULSE® formulations for Pulse® -Men’s Health Formula™, Pulse® - Women’s Health Formula™ and Pulse® -Heart Health Formula™ : “Formulation developed under license from BaxterHealthcare Corporation”. This right is in perpetuity without royaltiesInitial Development and Acquisition
  • 6. • Non-alcoholic beverages are among the most widely distributed food products in theworld and are being sold through more than 400,000 retailers in the United States• The United States has more than 2,600 beverage companies and 500 bottlers ofbeverage products. Collectively they account for more than $105 billion in annualsales. It is estimated that globally more than $300 billion worth of non-alcoholicbeverages are sold annually. The beverage market is controlled by two giants, Coca-Cola and Pepsico controlling over 70% of the beverage market• Industry watchers and the beverage giants believe that growth will be largely confinedto niche nutritional and functional beverages which are non-carbonated• Coca-Cola has stated that they are searching for another billion dollar brand and isbetting that the next big beverage will be a niche product. Coca-Cola’s VEB group ishoping to cultivate the next billion-dollar brand and has identified PULSE® as thedirection the market is going. Coca-Cola has stated that one million cases and/or $20min revenues is their “proof of concept” benchmark• It is common for these industry giants to acquire successful brands from smallercompanies, typically for a negotiated multiple of sales revenues. It is our goal to haveone or more of our brands in a position to be acquiredThe Beverage Industry and Market
  • 7. The PULSE® brand is NOT an emerging growth brand as in excess of $10 million was spentby a major healthcare company developing and extensively and successfully testmarketing the PULSE® brand in Chicago and PhoenixPulse has assembled a professional team of beverage industry experts, each having over25 years of experience in the beverage industry:• Robert Yates, CEO, was a major contributor to the success of the CLEARLY CANADIANbeverage brand at a time when he was responsible for $50m of their $178 million inannual sales and went on to develop and successfully launch his own KWENCHER®brand building it into 1.7 million cases in 2 years• Paddy Sheya, National Sales Manager, has worked with Robert Yates for over 18 yearsand owned his own beverage company• Ron Kendrick, Chief of Product Development was the Vice President of Operationsand Product Development for Clearly Canadian for over 17 years and wasinstrumental in developing the PULSE® line of products for Baxter Healthcare• Bruce Horton, Advisory Board Member, was the CFO, Director and Co-founder ofClearly Canadian. Under his tenure, sales grew from zero to $178 millionComparison to Other New Beverage Companieswith Emerging Growth Brands
  • 8. KEY TO SUCCESS is Pulse’s ability to rapidly develop a distribution network to distribute itsbeverage brands. Beverage companies that fail generally fail because they didn’t have thecontacts and experience to rapidly build a distribution networkThe VEB unit of Coca-Cola has expressed to Pulse Management that the beverage industry istrending to the niche beverage products such as PULSE®. VEB has expressed that nutraceutialbeverages that are scientifically formulated, having sufficient dosages of active ingredients tohelp maintain or make a difference to your health is where the beverage industry is trendingquicklyThe PULSE® brand is 2 to 3 years ahead in development compared to other “emerging” brandsfor the following reasons: Scientifically developed PULSE® brand has had in excess of $10 million spent onproduct formulation and extensive and successful test marketing Seasoned management team each having 25+ years in the beverage industry withproven track records VEB unit of Coca-Cola’s expressed interest in the PULSE® brand An existing extensive distribution network which is expanding across North Americaand Internationally - A MAJOR KEY TO SUCCESSComparison to Other New Beverage Companieswith Emerging Growth Brands Continues…..
  • 9. Prominent Industry AcquisitionsVitamin Water® - Coca-Cola® purchased Vitamin Water® for a reported $3.4 billion whenthey were selling approximately 10 million cases per year and had approximately $200million in salesSOBE® - Pepsi-Cola® purchased SOBE® for a reported $378 million when they were sellingapproximately 3 million cases per year and had approximately $60 million in salesFUZE® - Coca-Cola® purchased FUZE® for a reported $300 million when FUZE®, at the time,was selling approximately 7 million cases per year and had approximately $140 millionin salesRock Star Energy Drink® - Coca-Cola® purchased the distribution rights for an undisclosedamount and owns the right of first refusal to purchase the Rock Star Energy Drink®brand which is currently selling approximately 8 million cases per yearArizona Iced Tea® - turned down an offer from Coca-Cola® for $2.1 billion. At the time ofthe offer, Arizona Iced Tea® was selling approximately 25 million cases per year and$500 million in salesHonest Tea® – Coca-Cola purchased this brand in for a reported $400 million when it wasselling approximately 1.4 million cases per annum
  • 10. Product Mix• Pulse’s products are targeted at the nutritional and functional beverage segmentof the non-carbonated beverage market which Pulse believes has a potentialmarket size in excess of $1 billion in sales annually• Non-carbonated beverages divide into a number of categories including energyand sports drinks, nutraceuticals, lemonades, teas, juices and bottled water. Thesebeverage categories include a host of products that are fortified with vitamins,minerals and dietary supplements• Pulse’s product mix is calculated to exploit niches that have been identified aseither unoccupied or have yet to attract significant attention such as all-naturallemonades and nutritional/functional beverages• PULSE® brand of beverages are formulated and aimed at providing functionalingredients to specific health platforms. Pulse has recently improved the originalPulse® formulations by reducing the calories to not more than 55 calories per 8oz.serving
  • 11. Product MixPulse® brand of nutritional and functional beverages may be the only niche beverage linethat has sufficient dosages of active functional ingredients to help maintain health and ispresently comprised of three nutritional beverages in three functional health platforms:Pulse® - Men’s Health Formula™, Pulse® - Women’s Health Formula™ and Pulse® - HeartHealth Formula™ all in great tasting low calorie flavors
  • 12. Pulse® - Men’s Health Formula™Pulse® - Men’s Health Formula™ is a unique combination ofnutritional ingredients loaded with a variety of powerfulantioxidants that scavenge free radicals in our bodiesWhile it is designed to support areas such as prostatehealth in particular, the combination of green teacatechins, vitamins E & C, lycopene and selenium help menmaintain a counter attack in the battle against free radicaldamage to their bodiesFree radicals are associatedwith aging, cardiovascularproblems, cancer andother health concerns forthe modern man
  • 13. Pulse® - Women’s Health Formula™Pulse® - Women’s Health Formula™ is a convenientnutritional beverage designed specifically for women.Our ability to be active and healthy is directly affected bythe strength of our bodiesPulse contains meaningful levels ofthe key ingredients that work inconcert to enhance bone healththroughout our lives – calcium,magnesium and Vitamin DAdditionally, these ingredients coupled with folic acidand other B vitamins help women prepare forpregnancy while soy isoflavones can help buffersymptoms of menopauseNo matter the stage of life, Pulse helps you meet life head on
  • 14. Pulse® - Heart Health Formula™Pulse® - Heart Health Formula™ contains safe andeffective levels of a number of important heart andhealth friendly nutrients in a great tasting beverageIt has vitamin C and selenium, both ofwhich are important nutrients to helpmaintain the health of your heartPulse® - Heart Health Formula™ isan excellent source of dietary fiberwhich helps to maintain healthycholesterol levels within the normalrange
  • 15. Cabana™ 100% Natural LemonadeCabana™ 100% Natural Lemonade is a refreshing, all-natural, “good-for-you”, ready-to-drink lemonade in five distinct and great tasting flavors, offering a significantreduction in calories, only 60 calories and 12 grams of sugar per 8oz serving and noartificial sweeteners or coloring. To sweeten and reduce calories Pulse uses stevia, aSouth American herb used as a natural sweetener
  • 16. The Lemonade Market• Lemonade is America’s second favorite juice drink• 89% of juice drinkers consume lemonade – 36% as favorite• 56% of all teenagers prefer lemonade in the juice category - AfricanAmericans 66%, females 61%• 52% of all people purchase a drink contained in a glass bottles - thehighest of any packaged container for a beverage The LemonadeCategory in 2010 was a $350m business, up 32% from 2009• Simply Lemonade is the leader in the category at $155m in sales in2010, up 91%• Calypso sales were up 51% to $15m• Tropicana Lemonade grew at 233%
  • 17. Media Commentary on Lemonade Market“Lemonade, that quintessential summertime drink, is becoming adrink for all seasons. No longer resigned to backyard barbecuesand ball games, the category has seen a surge in year-roundconsumption. Consumer demand for the beverage drove sales ofsingle serving bottles to $154 million over the last 52 weeks, up11.3 percent over the same period in 2010, according toSymphony/IRI data”Ray Latif, BevNet Magazine, September 13, 2011“Bell Flavors & Fragrances, Northbrook, Ill., forecasted the Top 10flavors for the food and beverage industry in 2012. The No. 1beverage flavor on the list was Lemonade”BevNet Magazine, December 19, 2011
  • 18. Pulse® Heart Health, Women’s Health and Men’s Health FormulasGlaceau Vitamin Water - Numerous beverages/flavors, zero calories, mostly trace amounts of vitamins andelementsSoBe Lifewater - Numerous beverages/flavors, varying calories, mostly trace amounts of vitamins andelementsFunction Drinks - Three beverages/seven flavors, emphasis on detox/weight loss/energy, variousantioxidantsNeuro - Eight beverages/formulations/flavors, lightly carbonated, proprietary blends and vitaminsCabana™ 100% Natural LemonadesCalypso - distributed in only 30% of the US market, leading brand, Five flavors, 20oz glass bottle, high incalories with artificial coloringArizona Iced Tea - One flavor (lemonade/tea aka “Arnold Palmer”), 24oz canCountry Time Lemonade - One flavor, 12oz can, high in caloriesSimply Lemonade - One flavor, 13.5oz plastic bottle, natural lemon juice, high in caloriesHuberts Lemonade – all natural lemonade in a 16 oz bottleCompetitive Landscape
  • 19. Market Environment• Societal shift away from carbonated beverages - The PULSE® brand is supported by a growing consumerlink between nutrition and wellness in convenient solutions• Emergence of new product categories - energy and sports drinks, teas, juices, flavored waters, functionaldrinks and lemonades• Aging population – influencing the food and beverage industry and affecting everything from packagingand taste profiles to calories and contents• Pulse’s targeted demographics are 30+ adults who want to feel 30+ for the rest of their livesDifferentiators• Pulse’s goal is to create a new functional product category that is focused on providing true andmeaningful health and wellness benefits in a convenient, enjoyable and good tasting format• Proprietary formulations and scientifically effective in the recommended serving sizes as part of a dailyhealth regimen• PULSE® formulas include functional ingredients that are widely considered to be critical to adult healthincluding anti-oxidants, vitamins, minerals, soluble fiber and soy isoflavones. Liposome nanotechnologyto deliver non-water soluble “actives” ingredients to the body• Cabana™ Lemonades are 100% natural, low calorie, and uniquely flavoredCompetitive Differentiators
  • 20. Pulse strategically determined to introduce its Cabana™ 100% Natural Lemonade brand ahead ofthe launch of its PULSE® beverages for the following reasons:• The lemonade beverage category offered immediate opportunity due to few competitors.The leader in the category has grown at a rate of 51% over the previous year• Lemonades are no longer considered a seasonal beverage and only one other competitoroffers 100% natural ingredients• Messaging for Cabana™ 100% Natural Lemonades is straight-forward: “Everyone knowswhat lemonade is”• Senior management’s years of establishing distributor contacts is allowing Pulse to quicklyimplement a strong distribution network for Cabana™ which will facilitate and expeditePULSE® brand introduction through this established network• Pulse successfully predicted efficient Cabana™ product penetration attracting a broaddemographic without requiring consumer communicationPulse’s Key Strategy - having successfully delivered its Cabana 100% Natural Lemonade productinto its “Distribution System” it will be much easier to introduce the more complex PULSE®product with functional ingredients that have been proven to promote health. In essence “Red-carpeting” the PULSE® brand into the established Distribution SystemDistribution and Sales Strategy
  • 21. • Pulse has been very successful in developing an elaborate and credible productdistribution system for its product offerings. What typically takes three to four years tobuild has taken Pulse’s management just over one year to build• Pulse’s distribution system presently includes over 90 distributors serving 44 States,Canada, Mexico, Panama and Bermuda. Pulse’s distribution network includes 80% class“A” distributors. Class “A” distributors are distributors that carry major beverage brandssuch as: Anheuser-Busch, MillerCoors, Pepsi, Coca-Cola, RC and 7-Up. These distributorsprovide full service product distribution at the highest level than smaller beveragedistributors• Pulse’s distribution system was strategically established behind the strength of itsCabana™ 100% Natural Lemonade which acceptance by distributors, retailers andconsumers has exceeded expectations• Pulse has established a substantial portion of its distribution system and now will readilybe able to “Red-carpet” our PULSE® brand of functional beverages into its existingdistribution system and through United Natural Food International and Nature’s Best,the two largest natural food distributors. Distributors have been made aware of thehealth benefits of PULSE® and are eagerly awaiting the initial launch in FebruaryDistribution Network – Key to aSuccessful Beverage Company
  • 22. Successful Launch of Cabana™ 100%Natural Lemonade• Response from distributors, retailers and consumers has exceeded expectationsdue to superior packaging, great taste, 100% natural ingredients and lower caloriesthan competitors – 60 calories and only 12 grams of sugar per 8 oz serving. Anybeverage under 20 grams of sugar is considered a “good-for-you” beverage• By March 2013 the Cabana™ brand is expected to reach the 1,000,000 level ofcase sales on an annualized basis. This is a “proof of concept” in the eyes of themajor beverage companies and the brand should be an acquisition target at thatpoint. Most emerging brands do not achieve this annualized level of sales untilyears three or four after launch, if ever• By comparison, it took New Leaf Tea and Jones Soda almost six years to reach1,000,000 in annualized case sales• Based on past acquisitions of successful beverage brands, and an independentvaluation of a private 1,000,000 case sale per annum brand, Pulse’s Cabana™100% Natural Lemonade brand would have a significant value upon reaching anannual case sale level of 1,000,000
  • 23. • Pulse intends to launch its Pulse® beverage brand in February of 2013• Pre-marketing with distributors is underway in conjunction with continued marketing ofCabana™ 100% Natural Lemonades and all distributors have expressed strong interest inadding Pulse® brand to their line-up• Pulse will position Pulse® brand of functional beverages as an extension of the successfullemonade launch through the enthusiastic participation of its established and growingdistribution network across the United States and internationally• Pulse® “functional” beverage line-up requires increased educational messaging directed atbeverage consumers in order to demonstrate the enhanced benefits predicted to drive salesgrowth. Pulse’s Chief of Product Development and his team have reduced calories, increasedflavor profiles and have aligned the product with hot-fill bottling processes which allows forall natural ingredients without the use of preservatives• Educational process - Dr. Peeke, Advisory Board Member, is a keynote speaker at nutritionaland sports conferences throughout the year. Pulse plans to utilize this opportunity as part ofthe process to educate consumers. In addition, we plan to utilize a consumer website and allsocial media outlets and print ads in major beverage magazinesPULSE® Brand Launch
  • 24. Growth and Acquisition Strategy• Negotiate additional co-packing contracts in strategic locations to more efficientlyserve the entire North American market including Canada, Mexico and CentralAmerica• Expand and improve the PULSE® brand by developing new proprietary formulationsproviding demonstrable clinical benefits such as: reducing sugar conversion inglucose to assist in preventing the onset of Type 2 diabetes, support good skinhealth, manage body weight, retard macular degeneration and preserve eyesight,and provide adolescents with a beverage that supplies all the building blocks theyneed for healthy growth• Acquire products and/or secure distribution rights that complement or extend ourcurrent product mix• Expand internationally and into Asia in the second half of 2013• Founding shareholders include strategic Asian partners for distribution into China andother major Asian markets including financing inventory, build-out, branding and corporate co-listing on an Asian Stock Exchange
  • 25. President, CEO and Board Member, Robert Yates, is a seasoned business executive with over 20 yearsin the beverage industry. His previous distribution company generated approximately $50 millionin annual sales and was the most successful master licensee for Clearly Canadian BeverageCorporation through much of Canada and the U.S. His distribution portfolio has included numerouswell-known beverages including Monster Energy Drink®, AriZona® Iced Tea, Rock Star EnergyDrink®, Vitamin Water®, and Perrier®. Bob successfully launched his own brand, Kwencher, whichhe built into a 1.7 million case brand in less than two yearsNational Sales Manager and Board Member , Paddy Sheya, has over 30 years of internationalexecutive sales and distribution management experience in the beverage industry. He has anextensive track record in the development of brands and in building sales and distribution systemsfrom the ground up to multi-million case sales. Notable examples include leading Clearly Canadian®from nil to 4.8 million cases in less than 3 years, and managing Kwencher® sales from nil to 1.7million cases in less than 2 yearsChief of Product Development, Ron Kendrick, has been in the beverage industry for over 30 years. Ronwas previously with Clearly Canadian Beverage Corporation for over twelve years where hemanaged supply and logistical operations during a time when Clearly Canadian sales grew fromzero to $180 million. He subsequently founded Catalyst Development Inc. and was instrumental inthe creation of formulations for many companies including the PULSE® products for BaxterHealthcareManagement Team
  • 26. Advisory Member, Bruce Horton, co-founded Clearly Canadian Beverage Corporation where he served asCFO and Director from 1987 to 1997. During his ten year tenure, Clearly Canadian’s sales grew fromzero to $178 millionAdvisory Member, Dr. Pam Peeke, MD, is an internationally recognized expert, physician, scientist andauthor in the fields of nutrition, stress, fitness and public health. Dr. Peeke is a Pew Foundation Scholarin nutrition and metabolism and is a Fellow of the American College of Physicians. She serves as ChiefMedical Correspondent for Discovery Health TV, and has a national bestselling book, Fit to Live. Majormagazines, television and radio networks interview her as a regular in-studio science and health newscommentator. Dr. Peeke is chief lifestyle expert for WebMD’s 50 million members and serves asspokesperson for the American College of Sports MedicineAdvisory Member, Don Prest, is a financial consultant competent in accounting, auditing and US GAAPfinancial reporting. Mr. Prest was CFO of Omnicity Corp, a public Wireless Internet Service Providerfrom 2009 to 2011 and CFO of Power Air Corp, a public fuel cell company, from 2005 to 2008. From1993 to 2008 he served as practice head for a large US public company accounting firmAdvisory Team
  • 27. Company Contact InformationBob Yates, Chief Executive Officer11678 N Huron StreetNorthglenn, CO, 80234Phone: 720-382-5476Email: ryates@pulsebeverage.comLegal CounselHart & Trinen LLP1624 Washington StreetDenver, CO, USA 80203Shareholder RelationsMartin E. Janis & Company, Inc.Phone: +1-877-302-6404Email: investors@pulsebeverage.comInvestor and Broker RelationsAcorn Management Partners LLCLance A. BeckhamPhone: +1-678-368-4012Email:lbeckham@acornmanagementpartners.comTransfer AgentHolladay Stock Transfer, Inc.2939 North 67th PlaceScottsdale, AZ, USA 85251AuditorsWeaver, Martin & Samyn LLC411 Valentine Rd, Suite 300Kansas City MO, USA 64111CorporateOTCBB: PLSBwww.pulsebeverage.com
  • 28. Thank YouPULSE® and PULSE: NUTRITION MADE SIMPLE® areregistered trademarks of The Pulse Beverage Corporation