Superior products, foundational assets, massive growth opportunity - TSXV: VEG MAY 2021
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Superior products, foundational assets, massive growth opportunity MAY 2021 TSXV: VEG
Disclaimer
GENERAL FUTURE ORIENTED FINANCIAL INFORMATION
This presentation of Sol Cuisine Ltd. (the “Company”) is for information purposes only and does not constitute To the extent any forward-looking information in this presentation constitutes “future-oriented financial information”
an offer to sell or a solicitation to buy securities of the Company. The information contained in this document or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided
(a) is provided as at the date hereof and is subject to change without notice, (b) does not purport to contain all to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be
the information that may be necessary or desirable to fully and accurately evaluate a purchase of securities of appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial
the Company and (c) is not to be considered as a recommendation by the Company that any person purchase information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-
securities of the Company. This presentation is not, and under no circumstances is to be construed as, a looking information generally, are, without limitation, based on the assumptions and subject to certain risks.
prospectus, or advertisement or a public offering of securities of the Company. Readers should not assume that this
document is complete and should conduct their own analysis and investigation of the Company and consult with
their own financial, legal, tax and other business advisors before purchasing any securities of the Company. MARKET RESEARCH AND PUBLIC DATA
This presentation also contains or references certain market, industry and peer group data which is based upon
FORWARD LOOKING STATEMENTS information from independent industry publications, market research, analyst reports and surveys and other publicly
available sources. Although the Company believes these sources to be generally reliable, such information is
This presentation contains forward looking statements. Often, but not always, forward-looking statements can be subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability
identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. The
“anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain Company has not independently verified any of the data from third party sources referred to in this presentation and
actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking accordingly, the accuracy and completeness of such data is not guaranteed.
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Examples of such statements include, CAUTIONARY NOTE TO UNITED STATES INVESTORS
but are not limited to: statements of intention with respect to the business and operations of the Company; The securities of the Company have not been and will not be registered under the United States federal or state
growth opportunities and the ability of the Company to launch new brands and products and the timing thereof; securities laws and may not be offered or sold in the United States, or to, or for the account or benefit of, “U.S.
expectations regarding the plant-based sector generally and the Company’s market penetration; expectations Persons” as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the
regarding the Company’s ability to expand its operating base and e-commerce channels; expected revenue “U.S. Securities Act”), unless an exemption from registration is available.
opportunities, including from existing categories, new channels and increased distribution; expectations regarding
the number of points of distribution in the medium term..
Such statements and information are based on numerous assumptions regarding present and future business
strategies and the environment in which the Company will operate in the future.. Although management believes
that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these
risks, uncertainties and assumptions, readers should not place undue reliance on these forward-looking statements.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that
may cause the actual results to be materially different from those expressed or implied by such forward-looking
statements.
The Company anticipates that subsequent events and developments may cause their views to change and the
Company specifically disclaims any obligation to update these forward-looking statements, except as required by
applicable law. This presentation does not contain all information that a prospective investor may require. It is an
overview only and does not contain all the information necessary for investment decisions.
2
Investment Highlights
20+ Years as a Plant-Based Protein Leader
#1 in frozen plant-based burgers1 and #3 in frozen plant-based protein1
Superior Taste, Quality and Nutritional Attributes vs. Competitors
Thoughtfully curated product portfolio of 31 SKUs
Proven Track Record of Culinary and Nutrition-First Innovation
Robust pipeline of new products focused on the “flexitarian”
Established Omni-Channel Distribution in Canada and the US
Available in over 11,000 stores and more than 41,000 unique points of distribution
Best-in-Class Manufacturing and Operations
Two fully built, operational facilities totalling 35,000 sq. ft. with capacity of up to 10 million kg
Experienced and Aligned Management Team to Lead Growth
Proven track record of scaling CPG businesses
1. Source: AC Nielson Sept 2020 - Canada
2. Source: Third party research and analysis
3
Track Record of Innovation and Growth
2020 2020 2021
2019 1st Costco Canada
Launched 3
Items with Target
Went public on
TSXV under
2018 Facility Renovation
and Investment to
Rotation – Extreme
Griller (Tenders and
US – Good and
Gathered
trading symbol
VEG
Launched Italian Greek Meatballs)
Increase Production
Meatballs and
Capacity and
Greek Meatballs,
2012 Beet Burgers and
Portabello Quinoa
Upgrade Production
Technology
Introduction of Burger
Private Label
2007 Business
Expansion #2
to a Larger
1997 Facility
Launch of Meat
Alternatives
2021
(Chili, Grounds,
2020 2021
2020
Burgers) Added products
Continued through key
Launched
2018 Launched 6 items growth in North American
Seasonal Turk’y
with Whole Foods U.S. Club and retail banners
Roast in Loblaws
1980 2017 Expansion #4 to
Facility. Bringing
Market - 365 and Sobeys in
Canada
Food Service
segments, with
including:
Loblaws,
Established Tofu Launched Plant- it to 35,000 sq ft. launches and/ Sobeys, Costco,
2015
Manufacturing Based Seafood or expansions in Farm Boy, Whole
Costco (Midwest Foods, Weis,
2002 Expansion #3 to
25,000 sq ft Facility
region), Publix,
Little Spoon and
Tops and Cub
Foods.
Expansion #1. Target Deli.
1990
Our First Industrial
Production Begins
Launch of
Veggie Burgers
4
Rapidly Growing Plant-Based Sector
Market Growth Why Customers Choose
Through 2030 Plant-Based Protein
Canada USA
95% 94%
92% 91% 90%
87% 88%
85% 85%
19%
79%
CAGR
US $13.8
Billion
Global Market
by 2027
Healthier Sustainable Curiousity Animal Better
Choice Welfare Tasting
(2018 to 2027) according to Grand View Research Source: Proprietary study n=350, Jan 2021
5
New Consumers are Driving Growth
Introducing Plant-Based into Diet Household Penetration US
Length of time since introduction in diet
63% Canada USA
~85% Substantial
of consumers
have been adding opportunity for
48% plant-based items higher plant-based
into their diets penetration in the
for less than meat category
5 years 41%
29%
21%
13%
11% 11% 14%
5%
Less than 3-5 Years 6-10 Years More Than Plant-Based Plant-Based
2 Years 10 Years Milk Meat
Source: Proprietary study n=350, Jan 2021 Source: SPINs 52wks ending 12/29/19
6
Positioned to Win
Consumer Trends Sol Cuisine Alignment
Health & Wellness Sol cuisine products are 100% plant-based and
made with a best-in-class nutritional profile &
Consumers are searching for increasing nutritional, organic and natural quality ingredients
products, with fewer artificial ingredients
Social & Environmental Our plant-based patty requires 87% less water
and 96% less land compared to beef, without
Local ingredients, sustainable sourcing & production, protection of animal
welfare and fair treatment of employees and environment harming any animals
Transparency We are non-gmo and kosher, and also
From companies and products through clear labelling, certifications from offer gluten-free, organic and halal options
trusted third-parties and brand trust
Sol Cuisine is a brand of choice for North Americans who want to transition to a
plant-based diet by providing superior taste without nutritional compromise
7
Multi Platform Product Portfolio
Burgers Appetizers Entrees
#1 frozen brand in Canada1 #1 Consumer preferred plant-based chicken Emerging high velocity segment
alternative in North America2
Platform for future expansion in this format Provides access to regular year-round meal routines
Strong distribution growth since launch in Sept 2020
11 SKUs 14 SKUs
6 SKUs
1. Source: AC Nielson Sept 2020
2. Source: VegNews Oct 2020
8
Strong and Growing Recognition with Consumers
Customer Perceptions Customer Perception of Sol Cuisine
of Leading Brands
Healthy High quality Delicious
vs. other Leading Brands
Customer Blind Taste Test Results n
#1
Consumer-Preferred
Chicken
#1
Sol Cuisine 90% 86% 86% Alternative1
Morningstar Farms
Amy’s
88%
85%
83%
83%
78%
75%
7%
Somewhat prefer
31%
other top brands
Beyond Meat 81% 83% 79%
Lightlife Foods 80% 78% 73% Frozen
Gardein 80% 70% 63%
Sol Cuisine equal
other top brands Burger 2
Field Roast 80% 80% 76%
#1
62%
Boca 78% 76% 61%
Roast product
Impossible Foods 73% 83% 81% chosen for
Prefer Whole Foods Market
Sol Cuisine 365 brand
Yves Veggie Cuisine 73% 72% 67%
Tofurky 66% 46% 41%
Among Consumers Aware of Brand - US & Canada Combined 1. Source: VegNews Oct 2020 - North America
Source: Proprietary study n=350, Jan 2021 Source: Proprietary study n=350, Jan 2021 2. Source: AC Nielson Sept 2020 - Canada
9
Superior Nutritional Profile
“If you look at the ingredients
[of mainstream plant-based
alternatives], they are super
highly processed foods. I don’t
think eating highly processed
foods is healthy.” Calories #1 159 270 240 270
John Mackey, CEO of Whole Foods
speaking to CNBC on many of the new Fat (g) #1 3.9 17 14 20
#1 4.7
plant-based offerings on the market.
Fiber (g) 2 3 3
Protein (g) #2 19 20 19 20
Sodium (mg) #1 350 540 370 380
Burger, 113g serving size
Sol Cuisine is Whole Foods Market's
365 brand supplier partner
10Well Established Omni Channel Distribution Platform
FY’20 Revenue / % of Revenue
Canada Retail Sales and Club U.S. Retail Sales and Club
Over
11,000
Doors
FY’20 $4.9 million / 26% FY’20 $1.1 million / 6%
Over
41,000
Food Service & Industrial Private Label
Points of
Distribution
FY’20 $4.1 million / 21% FY’20 $9.0 million / 47%
11Vertically Integrated Manufacturing and Operations
Quality & Food Safety Control
35,000 Additional
We have an in-house quality control lab to rigorously
test our products throughout the manufacturing process
Square 2019 from sourcing through packaging and fulfillment and are
feet 2 investment of HACCP and GMP certified
$7.3 Facility Certifications
3x
Increase in
Million
capacity to up to
10 Million kg Supports
annually up to
$100
Million1
in annual
revenue
We control quality through every step of the process - sourcing,
manufacturing, packaging and fulfillment
1. Source: third party research and analysis
2. Two fully built, operational facilities totalling 35,000 sq. ft.
12Team With a Track Record of Execution
John Flanagan Adam Kozak, CPA Dror Balshine Ken Cross Sarah Cline Prashin Chaturvedi
CEO CFO Founder, President & Director CMO VP Sales VP Supply Chain and CI
25+ years experience in 20+ years’ experience in 20+ years at the visionary 30+ years’ experience with 20+ years of experience in 10+ years of supply chain
CPG, beginning his career at Finance, M&A Integration, helm of Sol Cuisine with a multinational CPG companies Natural Product Sales across leadership roles in food
Coca-Cola, where he was the and Investor Relations in both demonstrated track record of such as P&G, Kellogg’s, North America. retail (Loblaw, Target), CPG
Canadian brand manager for established and emerging managing a growing protein Maple Leaf, Clorox and Mars (Canada Bread, Love Good
Diet Coke industries alternatives manufacturer Former sales management Fats), and co-manufacturing
Experience in scaling mid size roles at Hain Celestial Group (Griffith Foods)
Most recently held the role
Held senior marketing and private equity CPG business and Nature’s Path.
of CFO for a privately held
sales roles at Sun Rich, Unico and divesting to strategic Diverse operational leadership
group of direct store delivery,
and Nabisco, consistently acquirers Experienced in growing experience – planning,
warehousing, and logistics
driving both increased sales small and mid-size brands supply chain, manufacturing,
companies
and margin improvement on across multiple channels and procurement, continuous
the portfolios he managed. While holding the role of CFO categories. improvement, and technology
John was instrumental in at TerrAscend Corp. Adam led
building the US business the Company through several Experienced in setting
of Unico and its eventual key milestones that laid the up scalable benchmark
divestiture to a strategic buyer foundation for entering into the processes and systems
U.S. market becoming a leading for small to medium-sized
Prior to joining Sol Cuisine, North American operator hypergrowth food and CPG
John was the CEO of a companies
Prior to joining TerrAscend,
Canadian baked goods
Adam spent over 10 years at
manufacturer, where he
Loblaw Companies Limited
tripled sales and steadily grew
where he held progressive roles
EBITDA margins, eventually
in Finance, Investor Relations,
leading the company’s sale to
M&A Integration, Loyalty and
a US-based private equity firm
Consumer Insights.
13Board of Directors
Mike Fata Dror Balshine Mary Dalimonte Beena Goldenberg Lisa Swartzman
Chairman of the Board Founder, President & Director Director Director Director
23 years in Natural Products 20+ years at the visionary helm of Sol Over 40 years of leadership Proven business leader with over Lisa Swartzman is an accomplished
Cuisine with a demonstrated track experience in the retail grocery 30 years of experience in CPG and senior executive with 25-plus years
Founder/CEO of Manitoba Harvest record of managing a growing protein industry spanning merchandising, a background in marketing and of experience in manufacturing,
($0-$100M in revenue growth, alternatives manufacturer multi banner operations, private label, manufacturing. Extensive experience consumer products, retail and
$419M exit in 2019) innovation development and process managing brands and operations healthcare
management, governance, new store within the Canadian CPG sector
Director (Past Chairman) of concept development and design in companies including Parmalat, Currently operates BGO Advisory
Canadian Health Food Association Ronzoni Foods and Pillsbury Canada which provides strategic advice to
Recently retired as the Senior Vice small and mid-market privately held
Past Chairman of Om Mushrooms President of Merchandising and Former President of Hain-Celestial and publicly traded companies
Commercial Programs for Sobeys Canada, a wholly owned subsidiary
Inc., a leading Canadian grocery of The Hain Celestial Group Former President of AirBoss of
retailer and food distributor, and is (NASDAQ: HAIN) where she America Corp. (TSX: BOS), and
currently engaged as a highly sought- strategically grew the company senior leader at George Weston
after consultant to the CPG industry through innovation, increased Limited/Loblaw Companies Limited
distribution and acquisitions. During where she held progressively more
her 15-year tenure, Ms. Goldenberg senior positions, including 6 years as
managed a portfolio of over 15 Vice President, Treasurer
brands, including organic and plant-
based brands - most notably the
Yves Veggie Cuisine brand
14Actionable Pathway for Growth
Year-to-date progress
Runway for Category Growth – In Q2, driven by new product launches, Sol Cuisine continued to significantly outperform the
market in terms of sales growth. The Company grew +44% in Canada, more than four-times
Generate Brand Velocity faster than the overall category and +40% in the US in a category that declined in the low single
digits.¹
The recent launch of appetizers and entrees in a bagged format have been favorably received
Breakthrough Product Innovation by consumers. Distribution continues to grow and during Q2, the sales velocity of Sol Cuisine
Wings, Meatballs, Turk'y Roasts and Chik'n Tenders already exceeded that exhibited by the
Focus on the flexitarian, access new areas of store and new
Company's leading burger products in Canada. In the U.S., Sol Cuisine Falafel, Chik'n Bites,
consumption occasions
Chik'n Tenders, Meatballs and Wings are also selling ahead of expectations in the first quarter
post-launch.
Sol Cuisine continued to introduce products beyond its core burger set into key retail channels
Aggressively Expand Grocery Distribution in Canada and the U.S. During Q2, the Company added products through Canadian retail
banners including: Loblaws, Sobeys, Costco, Farm Boy and Whole Foods. In the U.S., the
Company added products through retail banners including: Weis, Tops and Cub Foods.
Launch Into Exciting New Channels The Company continued to grow its presence in the key U.S. Club and Food Service segments
during Q2, with launches and/or expansions in Costco (Midwest region), Publix, Little Spoon
and Target Deli.
1. Q2-2021. Canadian data per A.C. Nielsen Markettrack @ Mar 2021; US data per SPINS TL MULO @ April 2021
This slide contains “future oriented financial information” or “financial outlooks” within the meaning of applicable securities laws (FOFI) and is based on
numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future.
15Runway for Category Growth – Generate Brand Velocity
Initiative #1 Digital & Social Marketing
Grow followership and engagement levels to market-leading position
Initiative #2 Sampling
Deliver samples to consumers prior to purchase occasion in-store, at events, and in-home
Initiative #3 Customer-Specific Promotions
Partner with priority retailers and E-Commerce sites to access loyalty and digital marketing programs
Initiative #4 Public Relations and Earned Media
Capture position of “thought leader” in plant-based foods industry through outreach to most
influential print/sites/influencers
Only Sol Cuisine gives you the power to Brighten Your World by delivering delicious taste, finally without compromise
16Aggressively Expand Grocery Distribution
Strategies Total Points of Distribution
Sol Cuisine Branded Products
Canada >35,000
Canada USA
Expand outside of core burger set
Focus on core set of 8 items – 4 burgers, 4 Entrée/Appetizer
>24,000
Expand outside natural aisle to mainstream aisles
24,392
U.S 14,166
Establish foothold in Western US and expand nationally
6,324
Focus on Entrée/Appetizer as differentiator to burgers
6,324
Streamline product offering to core existing set and innovate
FY’20A FY’23E
17Launch Into Exciting New Channels
Club Food Service USA E-Commerce
Current rotations with Canada West and US FY’21 penetrating US Market with focus on retailer Current postings on Target.com, Voila, and other
Midwest Regions prepared foods, industrial sales, and small regional retailer sites
restaurant chains
Items under review at Sam’s Club, additional US Immediate expansion using shopping platforms like
Costco regions, and Costco UK Focus: Midwest and Western regions Thrive and Good Egg
18Executing on Growth
Historical Sales INVEST SCALE
(in C$M)
16-month upgrade to its 35,000 sq. ft. facilities1
Fiscal year ended September 30th
Modernized equipment for increased efficiency & capacity
Hired CEO with extensive CPG expertise
Built-out senior management team to include: CFO, CMO,
VP Sales, Director of US Sales, and VP Supply Chain & CI
Fully built, operational
19.1 35,000 sq. ft. facility 1
15.9 15.4 with capacity of up to
17.1
10.0 14.6 14.0
10 million kg2
7.0
9.2
6.5
2016A 2017A 2018A 2019A 2020A 1. Two fully built, operational facilities totalling 35,000 sq. ft.
2. Source: Third party research and analysis
3. Defined as Gross Sales less sales discounts and other deductions
Gross Sales Revenue³
19Q2 financial results summary
Three months ending Six months ending
Q2 2021 YTD4 2021
March 31, 2021 March 31 2020 March 31, 2021 March 31, 2020
Gross Sales $6,127,467 $4,075,437 $12,632,225 $7,125,454 Gross Sales Gross Sales
Revenue¹ $5,635,537 $3,615,412 $11,663,640 $6,260,992 +50.4% +77.3%
vs. Q2 2020 vs. YTD 2020
Gross Profit $877,313 $246,984 $1,773,545 ($204,196)
Gross Margin² 15.6% 6.8% 15.2% (3.3%) Gross Margin2 Gross Margin2
Adjusted
EBITDA³ ($819,820) ($771,966) ($1,003,436) ($1,801,586) +880bps +1,850bps
Net Loss and vs. Q2 2020 vs. YTD 2020
Comprehensive
Loss ($2,005,923) ($1,223,806) ($3,122,169) ($3,015,800)
1. Defined as Gross Sales less sales discounts and other deductions
2. Defined as Gross Profit divided by Revenue
3. Adjusted EBITDA is a non-IFRS financial measure. For further information and a reconciliation of Adjusted EBITDA, please see the Company’s news release titled “Sol Cuisine Reports Financial Results for the Three and Six Months
Ended March 31, 2021” published on May 31, 2021, and refer to the section entitled "Non-IFRS Financial Measures: Adjusted EBITDA and Adjusted EBITDA Margin"
4. YTD is for the six months ending March 31, 2021 and March 31, 2020
20Select Balance Sheet Information
All figures shown in C$ millions Pro Forma¹
Cash $17.5
Current Assets $25.1
Total Assets $34.8
Total Liabilities $8.8
Shareholder’s Equity $26.0
1. As of December 31, 2020, unaudited pro forma – refer to filing statement dated May 7, 2021
21Capitalization
Basic shares outstanding 54,382,350
Options 7,702,993
Wtd. avg/exercise $0.53
Warrants 3,651,808
Wtd. avg/exercise $2.60
Fully diluted shares outstanding 65,737,151
22Highlights
20+ Years as a Plant-Based Protein Leader
#1 in frozen plant-based burgers1 and #3 in frozen plant-based protein1
Superior Taste, Quality and Nutritional Attributes vs. Competitors
Thoughtfully curated product portfolio of 31 SKUs
Proven Track Record of Culinary and Nutrition-First Innovation
Robust pipeline of new products focused on the “flexitarian”
Established Omni-Channel Distribution in Canada and the US
Available in over 11,000 stores and more than 41,000 unique points of distribution
Best-in-Class Manufacturing and Operations
Two fully built, operational facilities totalling 35,000 sq. ft. with capacity of up to 10 million kg
Experienced and Aligned Management Team to Lead Growth
Proven track record of scaling CPG businesses
1. Source: AC Nielson Sept 2020 - Canada
2. Source: Third party research and analysis
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