Alabama Launchpad presentation for Alabama Chai and teasyteas.com

1. The Best Tasting Chai
Marshall Malone
President, Teasy Teas LLC
CEO, Alabama Chai LLC
The Best Way To Make It

2. • Tea brewed with milk and spices
• Originated in India
• Made popular in café’s
• $84M in U.S.
• +9% growth per year
• Tea – 2nd
most consumed
beverage next to water
• 85% is iced
• Specialty tea +15% per year –
new luxury boom
• Starbucks bought Atlanta’s
Teavana for $620M and
announces new tea cafes
Tea Chai
The Market

3. Ready-To-Drink
• Bottled Iced Tea has grown by more than
17.5 times in 10-years
• Bottled Iced Tea sales were estimated at
$3.5 billion
• RTD and iced tea mix comprises about
1/4 of all tea prepared in US
TEA

4. Problem
US Dairies
are closing doors
Chai is on
high demand

5. Solution
• Working Cow’s Dairy will
integrate Alabama Chai in their
existing process and distribution
• Low capital investment
• Low operating cost
• Distribution launch = 44 stores

6. Repeat the Model
AL
AL
KY
IL
Concentrate

7. Business Model
Cost
$2.98
Margin
$8.65
Concentrate
468% net margin
Ready To Drink
(RTD)
40% net margin
Cost
$.94
Margin
$.63
Sold to Coffee Distributors Dairy Cooler Sales

8. Competition
Concentrate

9. Competition
RTD

10. Proposition
• Tasty alternative to coffee and
soda
• Perception of health and
wellness
• More digestible
• 8 x less sugar than soda
• A great story
• A mission to save dairies
• Organic
• Local
• Sustainable
• Café’s can satisfy consumer
demand for more flavors
• Easy to use

11. The Market • Females 25-54 – Primary
• Upwardly mobile urbanites
• Disposable income
• Health conscience
• Environmentally aware
• Craves organic
• Loves the story behind the
product

12. First Customer • Birmingham
$300-500 per week
• Alabama
3 new stores coming
$250-500 per week
• Region
28 stores (5 states)
$2200 per week
• Nationwide
320 stores
$25,000 per week

13. Milestones
2013
Completed
• 90% Formulation
• Partner with dairy
• Distribution
• Packaging Design, label, logo
• Secure Whole Foods
Equipment
Launch product
Delivery Vehicle
Marketing, Displays
Website Complete
Administrator
Sales Staff

14. Sales Strategy
• Wholesale network of
TeasyTeas.Com
• Coffee distributors
• Other distributors: Tree
of Life, United Natural
Foods, etc.
Concentrate

15. Sales Strategy • 3 flavors x 2 cases per week = (72
units) = $113 / per store.
• Working Cows Dairy Dist: 44 stores
= $4900 per week
• Whole Food’s in 5 states: 28
stores. = $3100 per week
• Actively selling other distributors:
KeHe, Sysco, United Natural
Foods, etc.
RTD

16. Sales Strategy RTD
•Boots on the ground tasting
• Part-time demonstrators
will increase demand, from
$113 per store to $243 per
week
• Farmers Markets increases
awareness
Concentrate
•POS displays – café’s
Success Through Sampling

17. Alabama Launchpad
Marketing /Advertising/ POS $28,500
Inventory $9,100
Legal / TM $3,500
Employees $30,000
Sampling Deployment $6,000
Branded Automobile $18,000
$93,100

18. Sales Forecast
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Year 1 Year 2 Year 3 Year 4 Year 5
RTD
Concentrate
Profit
Break-even year 2
$3-5 million year 5

19. Experienced Leadership
Marshall Malone
CEO
Roger Stephenson
COO
Team
20 years in sales, marketing and brand management:
Tapscan, Marketron, Slaughter Group, Portsmouth Tea
Company, Teasy Teas
10 years accounting, 30 years diverse management
in consumer goods, sourcing & quality control:
Deloitte Touche, Sheaffer Pen, Pfaltzgraff, Southern
Living At Home

20. Experienced Leadership
Advisory Board
• Former CEO and founder, Lotus Notes (now IBM Notes)
• Former President at Swatch USA and member of SCORE
• Retired Executive at Red Diamond

21. Conclusion
• Funding gets us to market and will insure $5-7K/week at
launch.
• Alabama Chai will be a first-mover RTD organic, tea
latte with multiple flavors
• Great product, Great team, Great branding, Great story
• Down the road: retail, k-cups
“What Tom’s did for Maine and what
Ben & Jerry’s did for Vermont, we will do
for Alabama.”

22. Financials