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Resignation Brewery Investor Presentation
Executive Summary
One of a kind partnership with award winning Brewery and Media powerhouse
Scalable, low overhead busines...
Investment highlights
Official Beer of theCHIVE (28M monthly unique visitors); theCHIVE and Resignation Brewery (RB) are
su...
Company Overview
Developed by the creators of theCHIVE, KCCO Beer is marketed as part of the lifestyle brand to a massive ...
- Currently there are over 4,200 operating breweries in the U.S.; Craft breweries by definition produce under 6M barrels pe...
Product Timeline
2013
September
2014
January November January March April July November
2015
AB
BC
Launched KCCO Black Lag...
2016-17 Strategy - Audience
Texas as Home Market
- #2 Beer market in the U.S. & theCHIVE is headquartered in Austin
- Esta...
2016-17 Strategy - Actions
Increase and Align Marketing Resources
- Increase overall marketing spend by 3X; marketing surg...
Resignation Media Properties - theCHIVE, theBERRY, TheChivery
- Over 21,000,000 impressions per month for KCCO Beer
- Prod...
Appendix
RB Personnel
Resignation Media Company Overview
KCCO Beer Brand
Chive Nation
Notable Media Coverage
Distribution ...
RB Personnel
JOE MICHAELS PAT KILLORENJAKE MORROW
President Sales Director Marketing Manager
University of Notre Dame - Fi...
Resignation Media
32M Monthly unique visitors
theCHIVE ranked #1 humor website in the U.S (comScore, Aug 2015)
Dedicated p...
The KCCO Beer Brand
Keep Calm and Chive On!
For years, our fans have had a love for all things Humor, Hotness, Humanity, a...
HUMORHold my beer and watch this!
Hilarious moments captured in real-time
theCHIVE original videos
HOTNESSWhere there’s a KCCO Beer, there’s sexiness
Chivette photo shoots
Daily photo submissions
Weekly Instagram ‘KCCO Be...
HUMANITYMaking the world 10% happier
Proud Supporter of Chive Charities
Helping the underdogs through the Chive Charities ...
HEROeSKCCO Beer supports our nation's brave few!
Partnerships with several veteran-based charities
FO
U
N D A T I
O
N
CHR
...
CHive nation
166
CHAPTERS
$3.5M
TOTAL RAISED
580K+
MEMBERS
Chive Chapters began forming organically all over the world. Th...
NOTABLE MEDIA COVERAGE
merchandise
The KCCO Beer Brand is hopped up on awesome tees and cool gear.
Future Can design
Gold Lager
Distribution
- Safeway 10.6% of Total Volume and 5.7% Points of Distribution
- Kroger 5.4% of Total Volume and 3.7% Points...
CONTINUED CRAFT GROWTH
Growth accelerating from
17.2% in 2013
Acquisitive Environment
- 10 Barrel acquired by ABInbev at higher rate of $1,250/BBL (40K BBL output)
Unprecedented acquis...
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Resignation Brewery Investor Presentation

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Learn about KCCO Beer and the amazing potential of a brand affiliated with theCHIVE and Craft Brew Alliance.

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Resignation Brewery Investor Presentation

  1. 1. Resignation Brewery Investor Presentation
  2. 2. Executive Summary One of a kind partnership with award winning Brewery and Media powerhouse Scalable, low overhead business with high growth potential Operating in a strong acquisitive environment Strong focus on Texas as home market Conservative Valuation and very attractive Preferred Security
  3. 3. Investment highlights Official Beer of theCHIVE (28M monthly unique visitors); theCHIVE and Resignation Brewery (RB) are subsidiaries of Resignation Holdings (RH) Strong scalability due to partnership with Craft Brew Alliance (CBA) - Excess capacity available at CBA breweries - Access to the Anheuser-Busch Distribution Network (nationwide) - Access to Canadian markets through BeerThirst Minimal Operating Expenses - Utilize shared design and business process services; Leverage internal marketing rates on all RH digital properties (32M monthly unique visitors) - All PPE, Sales, Manufacturing Costs, and Inventory owned by CBA - RB responsible for marketing efforts and activating theCHIVE audience Very strong Craft Beer market growing at over 15% per year 2015 resulted in most acquisitive environment ever in this sector Attractive participating preferred security being offered in this raise ResignationBrewery.com ResignationMedia.com theCHIVE.com theBERRY.com TheChivery.com
  4. 4. Company Overview Developed by the creators of theCHIVE, KCCO Beer is marketed as part of the lifestyle brand to a massive audience and staunch brand supporters Entered 7 year partnership with CBA in September 2013 RB handles the majority of marketing in return for a fixed marketing fee per case and owns all the IP for branding and recipes; in addition to merchandise rights (25% of revenue from RB merchandise sales on TheChivery) Distributed to all 50 States and expanded to Alberta and British Columbia in late 2015 CBA handles the production, distribution, and sales of KCCO Beer utilizing their national sales team, 4 large scale breweries (OR, WA, NH, TN), and national distribution agreement with Anheuser-Busch Unprecedented start with over 31,000 barrels in first 2 years with only 1 national product at a time, sold in all 50 States RB personnel consists of 3 employees; product sold by CBA sales team (~100) Relationship to notable charitable causes through Chive Charities and a military coalition: Marcus Luttrell’s Team Never Quit, Chris Kyle’s Frog Foundation, and the Boot Campaign
  5. 5. - Currently there are over 4,200 operating breweries in the U.S.; Craft breweries by definition produce under 6M barrels per year - Craft beer represented 18% marketshare and 17% YTY growth in 2014 versus Total Beer growth at 0.5% - Big Beer making high number of acquisitions to capture emerging brand equity and higher margins; organic shrinkage requires inorganic growth - Most States require operating within the 3 Tier system - Brewer/Distributor/Retailer must remain independent - Resignation Brewery does not fall in the 3 Tier System since CBA holds the brewing license - provides much greater flexibility Beer Industry Basics Traditional Brewery Contract Brewing Partner Brewing (RB Model) PPE ($10M minimum) Inventory Risk Intellectual Property Sales Team Build Distribution Network Procurement Marketing Regulatory Risk X X X X X X X X X X X X X X X X
  6. 6. Product Timeline 2013 September 2014 January November January March April July November 2015 AB BC Launched KCCO Black Lager in 10 cities in September 2013 2013 Began shipping Black Lager Nationally in January 2014 2014 Halted sales of Black Lager in January 2015 2015 Introduced limited KCCO Gold Lager in November 2014 Launched KCCO Gold Nationally in March 2015 Launched KCCO White Wheat exclusively in Texas in April 2015 KCCO Gold available in Alberta, CA in July 2015 KCCO Gold available in British Columbia, CA in November 2015
  7. 7. 2016-17 Strategy - Audience Texas as Home Market - #2 Beer market in the U.S. & theCHIVE is headquartered in Austin - Establish KCCO Beer as a Texas brand thru POS, events, and sampling blitz - Increase high profile accounts (COTA) and partner with franchises Military - Active and Retired military represent 20% of theCHIVE’s monthly visitors - Partnered programs with Frog Foundation, Team Never Quit, & Boot Campaign - Increase POD on bases w/ samplings and better integrate military content online ChiveTV - Chive curated content delivered directly to bars (~500 locations) for free - Running KCCO Beer ads as the only ad since inception - KCCO Beer sold in alongside ChiveTV; expanding ChiveTV sales force and supporting accounts through spend programs
  8. 8. 2016-17 Strategy - Actions Increase and Align Marketing Resources - Increase overall marketing spend by 3X; marketing surge for an emerging brand - Expand digital presence outside theCHIVE; Expand to traditional media outlets near strong targeted account bases - Increase event and sponsorship activity; including sampling blitz in Texas - Utilize new ChiveTV field marketing representatives for Dallas, Houston, and San Antonio Improve Target Marketing - Advance geo-targeting campaign for very precise demographics within theCHIVE - Create custom ad strategy for theBERRY to reach more female consumers - Design ads/POS to include Texas, military, and Chive references when appropriate Better Leverage Charitable Activity - Strengthen the connection to Chive Charities thru events - Increase frequency and presence for Patriot Pact Coalition programming - Ignite the Drink With A Purpose campaign within Chive Nation activities - Continue to leverage in-kind relationships for charities as sampling events 71% Awareness of which 28% Find the Product in Market
  9. 9. Resignation Media Properties - theCHIVE, theBERRY, TheChivery - Over 21,000,000 impressions per month for KCCO Beer - Product placement in daily galleries - Dedicated Beer Locator on theCHIVE App - Dedicated section within TheChivery; included in email and banner promotions - Monthly social mentions on theCHIVE social outlets Resignation Brewery - ResignationBrewery.com has seen 357K unique visitors in prior 6 months - Beer locator on theCHIVE App receives 3K clicks per week - Facebook: 33K Likes - Instagram: 30K Followers - Twitter: 35K Followers KCCO Beer Brand DIGITAL Digital Presence on All Properties
  10. 10. Appendix RB Personnel Resignation Media Company Overview KCCO Beer Brand Chive Nation Notable Media Coverage Distribution Snapshot Continued Craft Growth 2015 Industry Acquisition Activity Merchandise Future Can Design
  11. 11. RB Personnel JOE MICHAELS PAT KILLORENJAKE MORROW President Sales Director Marketing Manager University of Notre Dame - Finance and Computer Applications University of Notre Dame - MBA Corporate Finance Certified Management Accountant Created Resignation Brewery in 2013 Bethel University - Communication B.A. Over 12 years sales experience Virginia Tech University - Marketing Has lead marketing efforts since 2013
  12. 12. Resignation Media 32M Monthly unique visitors theCHIVE ranked #1 humor website in the U.S (comScore, Aug 2015) Dedicated product placement and digital advertising to KCCO Beer Owns TheChivery.com: online merchandising storefront of theCHIVE KCCO Beer apparel and hard goods sold exclusively on TheChivery Owner of flagship humor content websites; theCHIVE and theBERRY ResignationBrewery.com ResignationMedia.com theCHIVE.com theBERRY.com TheChivery.com
  13. 13. The KCCO Beer Brand Keep Calm and Chive On! For years, our fans have had a love for all things Humor, Hotness, Humanity, and Heroes. They soon found ways to connect offline and the KCCO lifestyle was born. With the creation of KCCO Beer, the lifestyle was given a flavor, and its taste matched our community's commitment to live every day to the fullest.  Cheers high, often and always with a purpose.
  14. 14. HUMORHold my beer and watch this! Hilarious moments captured in real-time theCHIVE original videos
  15. 15. HOTNESSWhere there’s a KCCO Beer, there’s sexiness Chivette photo shoots Daily photo submissions Weekly Instagram ‘KCCO Beer Girl’
  16. 16. HUMANITYMaking the world 10% happier Proud Supporter of Chive Charities Helping the underdogs through the Chive Charities Fund
  17. 17. HEROeSKCCO Beer supports our nation's brave few! Partnerships with several veteran-based charities FO U N D A T I O N CHR IS KYLE F ROG TM
  18. 18. CHive nation 166 CHAPTERS $3.5M TOTAL RAISED 580K+ MEMBERS Chive Chapters began forming organically all over the world. These are like minded individuals organizing local groups that share a culture of camaraderie and charity in the name of KCCO. theCHIVE has nurtured these groups and provided them with guidance on how to present themselves and make the best possible impact on the needs of their communities.
  19. 19. NOTABLE MEDIA COVERAGE
  20. 20. merchandise The KCCO Beer Brand is hopped up on awesome tees and cool gear.
  21. 21. Future Can design Gold Lager
  22. 22. Distribution - Safeway 10.6% of Total Volume and 5.7% Points of Distribution - Kroger 5.4% of Total Volume and 3.7% Points of Distribution - HEB 3.3% of Total Volume and 0.7% Points of Distribution Distributed to over 5,000 locations by AB Network in all 50 States plus Alberta and BC Total U.S. 80% Off-Premise 20% On-Premise Leading Chains: Texas Only Distribution 70% Off-Premise 30% On-Premise (consistent with industry average) Leading Chains: - HEB 15.6% of Total Volume and 5.3% Points of Distribution - Kroger 10.9% of Total Volume and 6.9% Points of Distribution - Safeway 5.6% of Total Volume and 4.1% Points of Distribution AVAILABLE IN ALL 50 states!
  23. 23. CONTINUED CRAFT GROWTH Growth accelerating from 17.2% in 2013
  24. 24. Acquisitive Environment - 10 Barrel acquired by ABInbev at higher rate of $1,250/BBL (40K BBL output) Unprecedented acquisition & investment activity in the sector 2014 Valuations were consistent at $1,000 per barrel of annual production - Firestone Walker sold to Duvel for estimated $1,250/BBL (200K BBL output) - Lagunitas sold 50% to Heineken for estimated $1,250/BBL (800K BBL output) - St. Archer sold to SAB MillerCoors for estimated $1,000/BBL (35K BBL output) - Ballast Point planned to IPO at estimated $1,287/BBL then sold to Constellation Brands for estimated $3,448/BBL (290K BBL output) 2015 Valuations showed considerable growth off the $1,000/BBL baseline Big breweries are losing marketshare; the only way to reverse the trend is to grow through acquisition

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