The Pulse Beverage Corporation
Investor PresentationOTCQB: PLSB
Summer 2015
Nutrition Made Simple®
• Safe Harbor: This presentation contains forward-looking statements relating to anticipated plans, products and financial performance. These statements are not guarantees of future performance, and it is important to remember that actual results may differ – and may differ in a material way – from these forward-looking statements. In addition to the factors that mentioned today, additional factors that could affect actual results can be found in the most recent Annual Report on Form 10-K and the most recent Form 10-Q filed with the Securities and Exchange Commission. The forward-looking statements are made as of today’s date, and the Company assumes no obligation to update any such statements to reflect events or circumstances after today’s date.
• This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibility in respect to any use or reliance of any information, whether financial or otherwise, contained in this presentation. The statements contained within this presentation have not been evaluated by the Food and Drug Administration. The Company’s products are not intended to diagnose, treat, cure or prevent any disease.
Forward-Looking Statements
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Led by beverage industry veterans, we develop and
market great tasting and nutritional beverages that
provide real health benefits
Our expanding portfolio of products consists of Natural
Cabana® Coconut Water, Lemonade and Limeade and
PULSE® Heart & Body Health functional beverages –
originally developed by Baxter Healthcare
Company Overview
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• Beverage industry veterans with significant branding, operations and distribution
experience including being instrumental in the growth of Clearly Canadian from
start-up to a $178 million company
• Robust distribution network with more than 25,000 delivery points for Natural
Cabana® including: Albertsons/Safeway, Walmart, Wegmans, Kroger/Fred
Meyer/Ralphs, Kmart, Circle K, Walgreens, 7-Eleven, Smashburgers, Whole
Foods, H-E-B, Hy-Vee, Save Mart, Hannaford, Food City, Raley's, Price Chopper ,
WinCo and Gelson’s
• Distribution system includes more than 150 distributors, serving 48 states, plus
Canada, Mexico, Panama, Bermuda and Ireland
• Free and clear ownership of Pulse® Heart & Body Health from Baxter Healthcare
Corporation, which invested $10 million to develop and test market this functional
beverage
• Rapid growth; 800,000 cases expected for fiscal 2015 (four years after formation)
through expansion into Canada and Mexico. Normally takes seven to eight years to
reach 1,000,000 case level
Investor Thesis
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Experienced Management Team
Robert Yates – President and CEO
• More than 20 years in the beverage industry
• Generated approximately $50 million in annual sales for Clearly Canadian Beverage Corporation
• U.S. Distribution portfolio included: Monster Energy®, AriZona® Iced Tea, Rock Star Energy Drink®, Vitamin Water®, and Perrier®
• Successfully launched his own brand, Kwencher, and grew it to a 1.7 million case brand in less than two years
Parley (Paddy) Sheya – VP and National Sales Manager
• More than 30 years of sales and distribution management experience in the beverage industry
• Extensive track record developing brands and building sales and distribution systems, including leading Clearly Canadian® from start-up to 4.8 million cases in less than three years, and managing Kwencher® sales from start-up to 1.7 million cases in less than two years
Ron Kendrick - Chief of Product Development
• More than 30 years in the beverage industry
• Founded Catalyst Development Inc. and was instrumental in creating formulations for many companies, including PULSE® brand functional products for Baxter Healthcare
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Advisory Board Members
Bruce Horton
• Co-founded Clearly Canadian Beverage Corporation, serving as CFO and director from 1987 to 1997
• During Clearly Canadian tenure, sales grew from start-up to $178 million
Pamela Peeke, M.D.
• Internationally recognized expert, physician, scientist and author in the fields of nutrition, stress, fitness and public health
• Pew Foundation Scholar in nutrition and metabolism and Fellow of the American College of Physicians
• Chief Medical Correspondent for Discovery Health TV; has a national bestselling book, Fit to Live
• Chief lifestyle expert for WebMD’s 50-million members and spokesperson for American College of Sports Medicine
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Pulse Beverage Corporation Snapshot
Stock price, trading range and market cap data as of 6/22/2015
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Founded 2011
HeadquartersNorthglenn,
Colorado
Trading Symbol OTCQB: PLSB
Market cap $12.2 M
Stock price $0.17
Shares Outstanding 64 M
52 week trading range $0.11 - $0.48
Average Volume (3 Month) 31,000
Long-Term Debt 0
Natural Cabana™ Lemonades and Limeades
+ Natural lemonades: High-growth market with few entrants
+ Vast distribution network, laying the groundwork for Coconut Waters
and PULSE Heart & Body Health functional beverages
+ Expanding into Mexico through national distributor
Natural Cabana™ Coconut Water
+ Rapidly emerging category targeting consumer trends – “healthy” and
“natural”
+ Category has nearly doubled in revenue every year since 2005
+ Debuted in March 2014 in the United States
+ Currently expanding into Canada and Mexico
PULSE® Heart & Body Health
+ Targeting nutritional and functional beverage segment of non-
carbonated market
+ Uniquely positioned in marketplace as product with real science and
technology behind health claims; available in select markets
Great-Tasting and Nutritional Beverages
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Natural Cabana™ Lemonade and Limeade
• Refreshing, natural, ready-to-drink
lemonades and limeades
+ Distinct, great tasting lemonade and limeade flavors
+ Significant reduction in calories compared with
competition - only 60 calories and 12 grams of sugar
per 8 oz. serving
+ No artificial sweeteners or coloring
+ 89% of juice drinkers consume lemonade – 36% as
favorite juice drink
+ 56% of all teenagers prefer lemonade in the juice
category
+ Lemonade is America’s second favorite juice drink
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Natural Cabana™ Coconut Water
• Rapidly emerging category
+ Capturing shifting tastes away from carbonated drinks
+ Wall Street Journal: Coconut water category has nearly doubled in
revenue each year since 2005
+ Pulse’s competitive edge: Vast distribution network set forth by
Natural Cabana™ Lemonade
+ Debuted in March 2014 in the United
States. Currently expanding into Canada and Mexico
• In-demand attributes
+ High-quality and competitively priced
+ Great tasting and healthy with only 60 calories and 10 grams of
natural occurring sugar per serving
+ All natural alternative to typical sport drinks
+ High in electrolytes, naturally fat- and cholesterol-free, excellent
source of hydration
+ Made from the highest quality coconuts from Vietnam
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PULSE® Heart & Body Health Functional Beverages
• Formulated to be scientifically effective
+ Utilizes liposome nano-dispersion technology, developed by Baxter Healthcare Corporation, allowing
absorption of nutrients and providing competitive advantage over so-called “vitamin beverages”
+ May be the only nutraceutical beverage developed that has functional ingredients to help promote
and maintain health
+ Pulse Beverage owns formulations, rights and trademarks in perpetuity without royalties
+ Distribution foundation established by Natural Cabana® Lemonade brand
+ PULSE® Heart & Body Health formulation tastes great
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National Distribution in Key Retailers
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Speed to Market
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Company Reaching 1 Million Cases
Vitamin Water 7 years
Honest Tea 8.5 years
Jones Soda 7 years
Clearly Canadian 3 years
Pulse is more than half way to reaching a million
case threshold in sales in just under four years by the end of 2015
• Function Drinks
+ Three beverages/seven flavors, emphasis on
detox/weight loss/energy, various antioxidants,
mostly trace amounts of vitamins and elements
• Neuro
+ Eight beverages/formulations/flavors, lightly
carbonated, proprietary blends and vitamins
• ZICO
+ Coconut water brand acquired by Coca-Cola in
2013
• Hubert’s Lemonade
+ Manufactured by Monster Beverage Corporation
Competitive Landscape
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• Pulse has Walmart store manager approval status across the country to sell Natural Cabana®
Lemonade/Limeade. The Pulse team has set more than 300 Walmart stores to date;
• Wegmans 50 mega-stores have received their first shipment of 4,000 Natural Cabana® Lemonade/Limeade
variety 12 packs. Wegmans is a US North Eastern favorite with its customers.
• Pulse also announces that Natural Cabana® Lemonade, Limeade and Coconut Water will be carried in the
cold box and grocery aisle/displays by Minyard Food Stores, a hometown locally owned supermarket chain
having 12 locations in the Dallas/Ft. Worth Metroplex area. Minyard has served these communities for
more than 80 years. Natural Cabana® Lemonade, Limeade and Coconut Water will also be carried by Vista
Super Markets in its cold box and grocery aisle/displays. Vista Super Markets is a 10 store, El Paso, Texas,
grocery store chain.
• Pulse’s Natural Cabana® Coconut Water was featured as a cover article in the March 2015 edition of
Beverage Industry, a national beverage magazine. Link to the related article:
http://www.bevindustry.com/articles/88249-coconut-water-sales-expanding-robustly. The article
discusses the sector and all of the health benefits of coconut water and that the category is expanding
rapidly in North America, Europe and Asia. They talk about all the major companies in the category and
that Natural Cabana® Coconut Water is a new entrant in the category. However, after considering all the
entrants in the category and their packaging they chose to place Natural Cabana® Pineapple Coconut
Water on the cover because of its packaging.
Recent Developments
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• The Company recently closed a non-brokered private placement and raised $1.1m through a $0.10 per
Unit offering. With these additional funds Pulse can accelerate its PULSE® distribution and Natural
Cabana® rollout into Mexico and Canada
• Pulse signed an agreement with an established Mexico distributor in February, 2015 to distribute Natural
Cabana® Coconut Waters, Lemonades and Limeades (Limonada’s in Mexico) to key chain store accounts
obtained over the past few months. This distributor has been in business for more than 60 years and has
more than 1,000 employees with distribution points in every major city in Mexico and distribution routes
to almost all retail outlets. Our Mexico operations are headed by Carlos Villarreal. Mr. Villarreal was
responsible for the Mexico introduction and distribution of Monster Energy Drink® in 2004 and led the
expansion across all of Mexico up until June, 2010. Mr. Villarreal has worked with leading brands such as
Dr. Pepper Snapple and Miller, among others, in their entry/distribution strategies. He has also served as a
Director for Anheuser-Busch and for Grupo Modelo (Corona) in the U.S. and Mexico;
Recent Developments (Continued)
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Driving Revenue Growth and Strong Operating Leverage;
Building Long-Term Sustainable Shareholder Value
Build Worldwide Distribution Network
With Natural Cabana® Lemonade
Leverage Network
To Introduce Natural Cabana®Coconut Water and PULSE®
Enhance Product Portfolio;
Increase Marketing Initiatives
Growth Strategy
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• Proven management team
• Niche products in high growth categories
• Great-tasting, low-calorie natural products with consumer appeal
• Real nutritional value for PULSE® Heart & Body Health functional
beverages, as clinically proven and developed by Baxter Healthcare
• Expanding distribution network, with more than 85% of Class “A”
distributors, such as Independent, Coca-Cola, Pepsi, Dr. Pepper Snapple
Group (7-UP), Anheuser-Busch and Miller Coors
• Listings at more than 25,000 retail outlets
• Rapid growth, with four-year ramp to 1 million
case sales which normally takes 7 to 8 years
• Currently, low market multiple and low market cap
Why Invest in Pulse?
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The Pulse Beverage Corporation
11678 North Huron Street
Northglenn, CO 80234
(720) 382-5476
www.pulsebeverage.com
Contact
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