INVESTOR INFORMATION 2021 - CONFIDENTIAL New Shareholders June 2021 - VentureCrowd
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INVESTOR INFORMATION 2021
CONFIDENTIAL
New Shareholders June 2021
1
2
EXECUTIVE SUMMARY
WHAT WE DO
▪ PERKii Probiotic is a probiotics company, using Patent-Protected Technology to create better
performing and tasting probiotic products for probiotic aware consumers
▪ With 50% of probiotic consumers aware that stomach acid is harmful to probiotics,
PATENTED GLOBAL
▪ PERKii’s technology is highly relevant and effective by delivering probiotic survival through to TECHNOLOGY RELEVANCE
the gut by factor of x10,000
▪ Range of functional probiotic drinks – Still 350ml and Sparkling 330ml
▪ Ability to extend technology into other chilled food and drink categories such as shots, non-
dairy drinks, diary products and functional foods
▪ Focusing on growth in Australia as proof of concept for future export into the UK, US and MULTI-
premium Asian markets, with a combined market size of over US$24.8b SCALABLE
CATEGORY
STATUS
▪ Business is growing and tracking to become net cash movement positive in 2022
▪ Raising AU$1.0m to achieve this and fund working capital to provide flexibility over the next 12
months
THE JOURNEY SO FAR
Stages of the Business Evolution
Product – Market Fit
Problem – Solution Fit Product – Channel Fit Invest to accelerate growth, build scale and continue to innovate
Product – Language Fit F22 F
$5.0m
+47%
Net Revenue (AUD)
2020 Nov
Sparkling
$3.5m range
launched
2020 Apr
2021 Feb
Conv. Note
Sparkling
Cap. Raise
range
$2.0m 2020 Nov accepted by
Sparkling Coles
range in Supermarkets
$2.5m 2019 Feb 700 Coles
Coles Launch nationally
2020 Jun Express
2018 Jul 2018 Sep 800 stores Woolworths stores
Follow-on New Expand into nationally
Cap. Raise Zealand 773
$3.1m Launch 2019 Oct supermarkets
2018 Apr
Coles Express &
Manassen Foods Australia
Aldi Launch
$1.5m 2016 Oct distributor to IGA and
1,200 stores
2016 Apr 2018 Oct
independent retail stores
Series-A Woolworths Metro Woolworths
Cap. Raise Launch Launch
2018 May
$5.5m Caltex Launch 150 COVID -19
2015 Jun
Perkii +500 stores supermarkets
Formed
$0.2m $0.7m +250% $1.1m +57% $2.3m +109% $3.4m +48%
Fin. Year F16 F17 A F18 A F19 A F20 A F21 F 3
CURRENT STATUS
Business
▪ Based in Brisbane, currently at the University of Queensland, where the technology was developed
▪ Employing 16 people in sales, marketing, logistics, production and finance
▪ Perkii has exclusive license to encapsulate probiotics globally using the patented ProGel® technology
▪ PERKii also owns patents covering the formulation of the encapsulated probiotics
Financials
▪ Strong Sales Growth. Net Revenue + 1050% over 3 years: $0.2m in F17 to $2.3m in F20 and expectation to achieve $3.4m
in F21
▪ Improving Product Gross Margin^ : 38% NSV H1 F21 vs 19% H2 F20
▪ The business is not yet profitable and is building scale with new products and aims to reach breakeven by end 2022
▪ With the launch of the Sparkling range in 2021 and acceptance by national retail chains, the business can continue to grow
over next 12 months
^ Product Gross Margin = Net Revenue less COGS excluding Royalties
4
CURRENT STATUS
Production
▪ One probiotic encapsulation site in Brisbane with production controlled by PERKii employees
▪ Three co-bottling sites across Brisbane, Toowoomba and Melbourne with two further sites in Sydney and Ballarat under
review
▪ Two step production process with encapsulation in batches by PERKii; transferred to co-bottlers for bottling
▪ Process has been successfully commercially scaled and can support planned future production demand for the ANZ
markets
Warehousing and Logistics
▪ Perkii uses several approaches to make product available in retail fridges for consumers;
▪ Direct to distribution centers via 3PL (Third Party Logistics) for large retail customers
▪ Sub-distributors in Australia and NZ to reach café’s, airports, convenience stores and independent supermarkets
▪ Direct to store (DTS) capability to be able to quickly test new products
▪ Direct to consumer (DTC) capability to support regular eCommerce and subscription sales direct to consumers
5
CURRENT STATUS
Route to Market
▪ PERKii controls the sales function and contact with key customers to deliver greater control, better customer
relationships, and a quicker response to changing needs of consumers and customers to accelerate sales revenue growth
▪ During 2020, the business has built effective relationships with major supermarket and retail chains to expand its range
and successfully promote its products to drive trial and repeat sales
▪ Perkii is available nationally across Coles and Woolworth’s supermarkets, Coles Express, Quick Service Restaurants, Petrol
& Convenience and other stores
▪ Perkii now has over 11000 Points of Distribution (POD) in ANZ (POD = 1 stock keeping unit (SKU) in 1 store)
▪ Over the last 12 months, Perkii has built PODs by +50% despite the challenges of COVID-19 lockdown measures.
6
CURRENT STATUS
Consumer Communication and Marketing
▪ PERKii is in the better probiotics business through its globally
patented technology. It is not just another drinks company or PERKii uses micro-shield technology for a
product. targeted in-gut release of effective probiotics.
▪ In 2020 the business focused on communicating the benefits Protected and nourished
of its ‘PERKii Science’ to probiotic aware consumers inside a natural alginate shield,
each probiotic is equipped to
▪ Brand communication talks about ‘Targeted Release resist stomach acid and
Probiotics’ and validated with consumers through research survive the journey to your gut.
For a difference you can feel
▪ Brand building activity has focused on social media, and taste.
influencer, and sampling marketing
Developed at the University of Queensland. Australia’s
leading institution for scientific innovation.
7
CURRENT STATUS
Marketing communication focuses on two key benefits for consumers:
1. Probiotic survival through to the Gut 2. Health benefit of the Probiotic
▪ Central benefit of PERKii’s patented encapsulation ▪ Whilst adhering to the appropriate regulations, PERKii
technology can talk about the general health benefits of the
probiotics that it uses.
▪ Simulated stomach trials show PERKii encapsulated
probiotics have 10,000x the survival rate of non ▪ Publicly available clinical trials support the benefits of
encapsulated probiotics probiotics:
▪ Highly relevant with 50% of probiotic consumers aware ▪ L. Casei – may support the bodies immune and
that probiotics don’t survive the journey to the gut digestive functions and response to vaccines
▪ Supermarket decision-makers now proactively recognize
▪ Bifidobacterium – may support the bodies
immune and digestive functions and response to
this as a consumer benefit
vaccines
▪ PERKii is investing in R&D to improve its ability to
make stronger health claims within regulations
9
CURRENT STATUS - Market Traction
NATIONAL DISTRIBUTION
EXPANDING FOOTPRINT
11,000 +
Points of
Distribution
+50% since
Jan 2020
10CURRENT STATUS
Sales Performance
▪ PERKii is regularly ranked in top 25% of all products in the Functional drink category in Coles and Woolworths
▪ At an individual stock keeping unit (sku) level, it outsells kombucha brands owned by global multi-national companies which
are ranged in the same category in the fridge
▪ PERKii has successfully invested in promotional activity in-store to drive trial and is seeing repeat purchase growing when
not on promotion
PERKii 350ml Weekly Sales – WW Supermarkets
Source: Coles and WW Store scan data 19th Jan ‘21
11CURRENT STATUS
New Product Development
▪ PERKii has a pipeline of new products in development with different strains of
encapsulated probiotics and different drink ‘carriers’
▪ In market now – functional Probiotic water in both Still and Sparkling
(Sparkling launched in Oct 2020)
▪ Ready to launch – Probiotic Shots with 6b Bifidobacterium Probiotics
▪ These can be launched with existing resource and probiotic encapsulation
capacity
▪ Each new range being developed to match sales of the current still range –
therefore Sparkling and Shots ranges have potential to grow total annual
revenue x2-3 when ranged
12CURRENT RANGE
PERKii Still PERKii Sparkling
uses clinically proven strain uses clinically proven strain
*LACTOBACILLUS CASEI *BIFIDOBACTERIUM
431® [LC431] BB12® [BB12]
▪ Improved immunity ▪ Improved immunity
▪ Shortens symptoms of cold and flu ▪ Reduced incidence of upset
▪ Protection from virus infections stomach
▪ Reduced incidence of upset ▪ Improves bodies response
stomach to vaccines
▪ Naturally Flavoured Probiotic Drink ▪ Naturally Flavoured Sparkling Probiotic Drink
▪ Bottled with 1.2b+ live and protected Lactobacillus Casei ▪ Bottled with 1b live and protected probiotics
probiotic
▪ Vegan - 100% plant based strain of Bifidobacterium
▪ 3 core Flavours – no fermentation, great taste probiotic
▪ Two pack sizes – 350ml and 1L ▪ 3 core Flavours – no fermentation, great taste
▪ Low in Sugar ▪ One pack size – 330ml
▪ Only 37 Calories ▪ Only 45 Calories
13
▪ 16 Week Shelf Life – attractive supply chain benefits ▪ 24 Week Shelf LifeCOMPETITIVE ADVANTAGE
▪ Naturally Flavoured Probiotic Drink
PERKii Yakult Remedy Mojo
▪ Two Key ‘gut health’ alternatives on the market; 350ml Shots Kombucha Kombucha
dairy-based Yakult and kombucha brands ▪ Years on Australian Market 2 25 6 10
controlled by CCA and Lion, Mojo and Remedy ▪ Non-Dairy Water & Juice (15%)
Beverage
▪ Key incremental sales offer for retailer: PERKii
▪ Specific Strain of Probiotic
provides a different taste profile in a non-
▪ Low Sugar and Energy Count
carbonated, non-dairy based and bitter-free drink.
▪ Non-Fermented All-Natural
▪ Sparkling offers a better tasting and higher Fruit Flavours
probiotic count to Kombucha’s ▪ Lactose / Gluten / GMO Free
▪ Attractive for retailer and offer category growth ▪ Non-Carbonated
opportunity with a different offer to just ‘another’
▪ +3month Shelf Life
kombucha
▪ RRP (in Supermarkets) $11.42/L $12.12/L $12.31/L $9.76/L
14THE PROBLEM WITH PROBIOTICS
• Retailers and consumers limited in taste and efficacy
Format & Ingredients Probiotics Shelf Instability Digestive Track Stability
Dried Pills & Powders Live culture short shelf-life Limited dose per serve
Fermentated Milks & Beverages Unregulated and misleading High mortality rate
labelling in stomach acids
Lactose & High Sugars Content
Minimally qualified strains
Inefficient chilled Supply Chain
with high wastage
15PERKii SOLUTION &
POINT OF DIFFERENCE !
Probiotic coating technology created at
the University of Queensland
Controlling acid production, creating stability on
shelf and enhancing survival through the stomach
environments, delivering more probiotic to the gut
Probiotics Made Better LEAD PATENT APPROVED
US, JAPAN, EUROPE, NZ AND AUS
16APPLICATION & ADVANTAGE
PERKii simulated stomach trials
Time (minutes) Difference (CFU survival)
30 34,500x
60 10,500x
90 10,000x
120 10,300x
▪ pH trial to mimic the acidic environment in the stomach - pH 2, over a 2 hour period (a typical time for stomach digestion trials)
▪ Trial to measure the survival rate of micro-shield and non micro-shield probiotics.
▪ Numbers taken as average over multiple trials.
Micro-shield with Macro impact: 10,000 times the survival rate of non micro-shield probiotics in a low pH
environment! Ensuring our probiotics survive better in the stomach.
17GLOBAL MARKET SIZE - OVER US$50B
Probiotics Market by Application End User, and Region – Global Forecast to 2023 Market and Markets Published Date: Jan 2019 | Report Code: FB 2269
18GLOBAL BUSINESS MODEL
MULTIPLE CURRENT & POTENTIAL
REVENUE STREAMS
$
PRIMARY
$
SECONDARY
$
TERTIARY
D IR E C T B R AN D S AL E S E X P ORT OP P ORTINITIES U N D E R P e rk ii T E C H NOLOGY S U B -LICEN SE
C ON T ROL
Current Category: Better-for-you Non – Competitive categories
beverages Production: Partnerships to export the
proven production process for both Wide Probiotic Application:
New categories: Dairy, Juice, Non-Dairy, probiotic encapsulation and application (Dairy, Juice, Non-Dairy,
Functional Foods to the drink/food with co -manufacturers Functional Foods)
Route to Market: Sell own brand through in key export markets
own sales team, co-manufacture and 3PL Go to Market: Engage local distributors
Supply Chain and sales companies to sell direct to key
Focus Market: Australia and New Zealand customers
19 Focus Markets: UK, USA, SEAGLOBAL OPPORTUNITY
2019 - 2020 2020-22 2023+
Australia distribution Priority on building scale in Australia Export development with high quality local
& acceleration with NPD production and Go-to-market partners if
business case is warranted
Prove scalability of production process Identify suitable Export market
and bottling opportunities for finished products Continued Australia scale
(Asia) and with partners to co- with NPD
manufacturer and distribute in US,UK
Secondary Focus Markets with consolidators or licensee agreements
20MANAGEMENT TEAM
ANTHONY DAVIE CARL RYAN
CHIEF EXECUTIVE OFFICER HEAD OF SALES (ANZ)
2010- 2014 - Managing Director – Asia Treasury Wine Estates 1997- 2016 - Coca-Cola Amatil
2015-2016 - General Manger – Coles Liquor
2017-2019 - CEO Sabrands Group
Anthony has a significant record of achievement across channel Carl is a highly experienced sales and route-to-market
management, route to market, sales/marketing, production and retail manager. As state and national business manager, he
disciplines. He has global brands and global leadership experience with developed field teams and drove large scale national
senior experience at Chairman, CEO and Managing Director level in account acquisition. Carl is responsible for regional
Asia, including China, Australia, New Zealand, UK and Europe. Has sales teams and national direct distribution accounts.
worked successfully for global multinationals, domestic retailers and
private /family-owned companies
Emily Paff Richard Symons Su Ching Andrew Kelly Vanessa Pinto
PRODUCTION MANAGER CHIEF FINANCAL TECHNICAL MARKETING DIRECTOR BUSINESS AND LOGISTICS
OFFICER MANAGER MANAGER
21BOARD OF DIRECTORS
TEAM AND Peter Devine [Chairmen] – Capital Investment & Biotechnology
ADVISORS Peter Devine is CEO of Uniseed. He has extensive experience in the
commercialisation of early stage technologies, with exits in excess of $1.75Bill
TEAM AND Peter
Peter Devine
Devine [Chairman]
[Chairmen]––Capital
CapitalInvestment
Investment&&Tech Start-Up
Biotechnology
Jim Kalokerinos [NED] –has Capital Investment & Biotechnology
ADVISORS Peter
Peter Devine
Over
Devine isisCEO
commercialisation
thirty
CEOof
years’ of
ofUniseed.
Uniseed.He
experience
He hasextensive
extensiveexperience
early stageintechnologies,
business
experienceininthe
with exits inand
development excess
the
of Jim
sales,
commercialisation of early stage technologies, with exits in excess of
$1.75Bill
has co-found
$1.75Bill
Providinga three companies and has experience in M&A, capital raising and IPO (PanBio)
wealth of Jim Kalokerinos [NED] – Capital Investment & Biotechnology
expertise, Sarah
Sarah Jones
Jones
Over thirty
[NED] – FMCG
years’[NED]
Business
– Business
experience in Asia & BioPharmacuetical
in business development and sales, Jim has co-found
Providinga
Providing a wealthguidance
of and Seventeen years
yearsinin
three companies
Seventeen brand
and hasbuilding
brand and
experience
building innovation
and roles
ininnovation
M&A, capital with Sanofi
raising
roles with andand
IPO
Sanofi leading
and(PanBio)
leading
wealth
and of
industry
expertise, guidance networks FMCG business, has experience on China expansion in the heath consumer
FMCG business, has experience on China expansion in the heath consumer goods
goods
industry networksforexpertise,
for the
the Sarah Jones [NED] – Business in Asia & BioPharmacuetical
Adrian Popek [NED] – FMCG Business
guidance
PERKii and
team. Jim Kalokerinos
Seventeen [NED]
years in brand – Capital
building Investment
and innovation roles with& TechandStart-Up
Sanofi leading
PERKii team. Strong sales and marketing experience over 15 years, including Trade Marketing and
industry networks FMCG business, has experience on China expansion in the heath consumer goods
Over thirty years’
International experience
Business in business
Manager at nudiedevelopment
foods duringand sales, Jimdrive
its meteoric has co-founded
to acquisition
for the three companies and has experience in M&A, capital raising and IPO (PanBio)
Adrian Popek [NED] – FMCG Business
PERKii team. Geoff Cockerill [NED] – FMCG Business
Strong sales and marketing experience over 15 years, including Trade Marketing and
Senior Executive
International with International
Business Manager at and domestic
nudie experience.
foods during A track
its meteoric driverecord
to acquisition
Michael Angliss
for driving revenue and[NED] – Commercialisation
profit with Intellectual
senior positions Diageo and Lion Property
Chief Intellectual Property Officer of UniQuest. Provides over 20yrs in IP management
Geoff
and Cockerill [NED]
commercialisation.
Cameron Turner – FMCG Business
[Advisor] – Commercialisation
Seniortechnology
Food Executive with International
Entrepreneur andand
CEOdomestic experience.
of ProGel. ExperienceA track record and
in identifying
for drivingmultinational
fostering revenue and licensing
profit with senior positions Diageo and Lion
opportunities.
22
Cameron Turner [Advisor] – CommercialisationUSE OF FUNDS
PERKii will use these funds for the following activities:
Working Capital
▪ Working Capital to build scale in Australia and reach profitability
▪ Continued investment in price promotional activity in-store with key supermarket chains to maintain/grow sales rates
▪ Launch activities to drive consumer awareness and trial of new NPD using existing route to market network
▪ Business has renegotiated material commercial arrangements to improve cash management and is using Receivables Financing on a
monthly basis
Technical Development
▪ Ongoing R&D to support stronger health claims and competitive point of difference for use in marketing communications
▪ Investment in technical resource to accelerate New Product Development for ANZ and Export
▪ Small investment in encapsulation equipment to improve efficiency and reduce COGS
Export Development
▪ Engagement with export markets such as USA and UK put on hold during COVID-19 but further technical development work is needed to
prepare the inoculum for export
23THE OFFER
We are seeking $1.0m via an extension of the 2020 Convertible Note to fund working capital needs and will consider
investments above this amount if oversubscribed
▪ First close on April 16 2021
▪ The Offer will remain open until August 27 2021 unless fully subscribed earlier, available for existing and new
shareholders on ‘first in” basis.
Convertible Note Terms: (same as the terms offered in 2020)
▪ Converts at a 30% discount to the lower of either:
▪ Share price of next financing round (including ‘exit’ share price if no next financing); or
▪ Share price of previous financing round of $3.66 (=$2.562)
▪ Accrues 8% p.a. coupon convertible to shares as above ending two years after first close.
24OVER NEXT 3-4 YEARS …
The business aims over the next 2 years; The business aims over the next 3-4 years;
▪ Net Revenue of $6-7m in ANZ ▪ Net Revenue of $10-15 m in ANZ and
selected global markets
▪ Cashflow positive
▪ Positive Net profit while still investing
▪ Improve margins from lower costs as in sales, marketing and R&D technology
scale builds
▪ Positioned for a Trade sale or IPO
25CONTACT DETAILS
For more information about PERKii Probiotics, our products and the opportunity to invest,
contact either:
Peter Devine Anthony Davie
Chairman, PERKii CEO, PERKii
p.devine@uniseed.com anthony@perkii.com
+61 409 631 581 +61 407 872 054
26 www.PERKii.com /perkiiprobioticsINVESTOR INFORMATION 2021 27
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