2. Market Opportunity:
Strong Preference For Super-Premium
Preference ForImpulse Purchases
Strong U.S.Market
Preference For All-Natural
Growing Preference ForโFree Formโ
Conclusions:
1. There Is a Broad And Sustained Interest In High-Quality Ice Cream: Super-Premium and All-Natural ice
creams are on-trend, with sustained increases in growth over the last decade and projected to continue;
industry growth is primarily spurred by the โfree formโ segment at this time.
2. Impulse Purchases Are Driving The Market: Consumers overwhelmingly purchase ice cream on a whim!
Global
$60B
Domestic
$13B
All Other
36%
Impulse
64%
All Other Categories
80.5%
Super-Premium
19.5%
Global Total
$60B
All-Natural
$28B
Projected Annual Revenues,
All Segments, 2017
Non-dairy, low-sugar, gluten-free, etc.
Purchased For Immediate Consumption
High Fat Content, Low Air Content
Free of arti๏ฌcial additives and
highly processed ingredients
$59B
$60B
$61B
$62B
$63B
2017 2018 2019 2020 2021
Projected CAGR +5% Driven Primarily By
Growth In โFree Formโ Ice Cream Segment
3. Market Problem:
Our Solution:
โข High degree of market segmentation: Ice cream sales are divided amongst impulse, super-premium, all-
natural, and โfree formโ (low-fat, low-sugar, gluten-free, vegan/dairy-free, and more).
โข Changing Tastes: The iconic ice cream truck has fallen out of fashion as consumersโ tastes have trended
towards more natural/healthy ingredients and processes โ parents now regard the ice cream truck as
suspicious as it relates to their children'sโ diets.
โข Develop a nationally recognized brand of modern ice cream trucks serving the best possible product
โข Combine the proven market segments for impulse purchases, super-premium, all-natural, and free-form
ice cream and sorbet with our product menu
โข Create a synergy between our ice cream trucks and take-home product in the grocery aisle
โข O๏ฌer an experience that stokes the consumersโ sense of nostalgia and novelty
โข Service our product via a highly e๏ฌcient distribution mechanism that keeps operating costs low
โข Create a fully integrated customer experience that tracks their favorite ๏ฌavors, allergies/dietary restrictions,
and past experiences; rewards customers for repeat visits and social media engagement
4. โข No Compromises: Our established product is the best possible quality and incredibly delicious! We are
proud of our ingredients and processes, and are eager to share them with our customers. Our 19% butterfat/
30% overrun formula positions our product as one of the richest, most dense products on the market.
โข Sensitive to All Dietary Restrictions: We cater to all appetites and dietary restrictions: vegan, gluten-free,
etc. We are able to recommend new menu items to our customers based on their past purchases.
โข Rewards For Repeat Visits and Social Media Interactions: Tracking of past experiences and simple loyalty
programs can work to drive repeat visits from customers. Imagine bringing your child to an ice cream truck in
an unfamiliar city and he hears โHappy Birthday Billy! Weโve got your favorite ๏ฌavor today, and itโs on the
house!โ
โข A Modern Update On An Iconic Concept: Think โMr. Softee for the 21st century.โ Customers can expect the
same superlative experience across multiple markets.
Value Propositions For The Consumer:
(L-R): Our SโMores Cone, made with our own graham
cracker cone, toasted marshmallow rim, and chocolate ice
cream; Our Rootbeer Float, made with 100% natural, whole
ingredients like sarsaparilla root and fresh ginger; and our
Choco-Huckleberry Ice Cream Sandwich, made with our
Mountain Huckleberry ice cream and Chocolate Crinkle
Cookies
5. Underlying Magic:
โข Itโs About the Kids!: While many modern food companies are targeting the adult โfoodieโ or โconscious
consumer,โ our ultimate goal is to make kids and parents happy! Our branding strategy relies on enticing
children to try our ice cream, and to prove to their parents that we always have their kidsโ well-being in mind.
โข Vat Pasteurization: Our ice cream is pasteurized at a signi๏ฌcantly lower temp for a longer period than other
products โ this gives our ice cream an incredible texture and ๏ฌavor, while maintaining more healthy bacteria.
โข Familiar Flavor Combinations Are Proven Hits: Flavors like Key Lime Pie, Bourbon Pecan Pie, and Southern
Banana Pudding provoke an immediate fondness and expectation in the customer's mind.
โข โEnlightened Hospitalityโ: Our customers should always feel like their individuality is recognized and
embraced โ a small-town feel with a personal touch behind every cone!
6. Business Model:
โขOur products are ๏ฌrst tested in small batches at our Montana facility, while food service products for our ice
cream trucks are then produced to our specs by established co-packers throughout the US. Our ice cream co-
packer has been in business for over twenty years, and is well-equipped to meet our volume demands as our
business grows.
โขTo control packaging costs, packaged grocery product is produced at our own facility.
โขDistribution is handled in part by company-owned vehicles. Packaged grocery product is introduced to new
markets in tandem with our ice cream trucks, and serviced via the same delivery vehicles.
โขDistribution-related overhead is o๏ฌ-set by transport of other third-party food and beverage along our
established delivery routes.
$
EOIC Facility
+
+
+
Demo Product
Commercial Product
7. Fundraising Goals:
โข Upgrades to facility, including establishment of packaging processes and expansion of cold storage
โข Purchase ice cream trucks, launch in secondary markets
โข Working Capital
The company is currently seeking $200k through the sale of its common stock to members of the foundersโ
friends, family and acquaintances in a โfriends & family roundโ.ย In exchange for $200k, the investors in this
round will collectively own approximately 20.4% of the Company.
ย
The company anticipates that it will need to raise an additional $200k in the 4th quarter of 2017 to expand its
packaging capabilities. While we expect to sell shares of common stock at the price it is currently o๏ฌered, we
cannot guarantee that the price will be the same at the time of the subsequent investment round.
Use Of Proceeds:
Equity
Common Stock
Of 2M Authorized Shares
Pre-Raise
% Ownership
Post-Raise
% Ownership
Alex McKenzie 408,000 87.2% 69.4%
Christina Calabrese 20,000 4.3% 3.4%
Ti๏ฌany Lach 20,000 4.3% 3.4%
Darryl David 20,000 4.3% 3.4%
Friends & Family Investors, Total 120,309 0% 20.4%
Total 588,309 100% 100%
8. Financials:
Gross Pro๏ฌt (Ice Cream Only);
Excludes Third-Party Distribution Revenues/COGS
2016
Summer
Only*
2017
Summer Only,
Projected
2018
Year-Round,
Projected
2019
Projected
Revenues $16,000 $25,000 $225,000 $305,000
Cost of Goods and Services $6,300 $15,000 $155,000 $200,000
Gross Pro๏ฌt $9,700 $10,000 $70,000 $105,000
Gross Pro๏ฌt Margin 61% 40% 31% 34%
Debt Financing Amount Interest Rate Term
Convertible Promissory Note* $100,000 6% simple 10 years
USDA/Prospera Business Network $25,000 8% 5.5 years
Nissan/GMAC (Company Vehicle) $35,000 3.48% 6 years
Founderโs Loans $25,000 N/A N/A
$85,000
*Convertible Promissory Note converts into equity of the Company upon certain ๏ฌnancing or time thresholds.
*Launch Season Did Not Include Founderโs Salary
9. Milestones To Date:
May 2015
Company Established
Summer/Fall 2015
Market Research &
Product Development
Winter /Spring 2016
Facility Lease Signed;
Co-Packing Relationships Established;
$25K USDA Loan Obtained
Summer 2016
Initial Sales Season
$16K gross, 61% Pro๏ฌt Margin
September 2015
$50K Investment
From Hampshire College
Fall/Winter 2016
Distribution Arm Established;
$10K Grant Awarded
For Company Use
Spring 2017
Federal liquor license obtained;
Company Vehicle Purchased;
Second $50K Investment Procured
Summer 2017
Second Sales Season Launched;
Increased Distribution Range and Sales;
Board of Directors Established
Fall 2017
Friends & Family Investment Round;
Submit Regulatory Plan For On-Site Production
Spring 2018
Begin Distribution of Packaged Product;
Prepare for Launch In Southern Market
Summer 2018
Launch in Southern Market;
Expand Montana Retail Operation
Winter 2017
Second Investment Round;
Acquire Production & Packaging Assets;
Acquire Ice Cream Trucks
Growth Timeline:
11. Brand Product Formula
Brick-and-Mortar
Locations
Ice Cream Trucks
Available at Grocery
Store?
โEconomy gradeโ: Less
than 10% butterfat,
with ~120% overrun
(air mixed in) and
arti๏ฌcial ingredients
Products
available in
hundreds of
trucks
nationwide
โEconomy gradeโ: Less
than 10% butterfat,
with ~120% overrun
(air mixed in) and
arti๏ฌcial ingredients
<10 ~600
All-natural, super-
premium: No arti๏ฌcial
or highly-re๏ฌned
ingredients; 19%
butterfat and 30%
overrun
3 (projected)
Competitive Analysis: Notable Ice Cream Trucks
12. Management Team:
Advisor: Darryl David has worked in the dairy industry for nearly forty years, having founded his ๏ฌrst ice cream
brand in 1978. He has worked variously as VP Operations and Franchise Sales at Annabelle's Natural Ice Cream,
Inc.; Director of Purchasing at West Lynn Creamery, with $500M in sales; Director of Operations and Cost
Control at Reilly Dairy & Food Co, with over $80M in sales; and currently advises frozen dairy companies with
his organization Darrylโs Ice Cream Solutions, LLC.
Ti๏ฌany Lach is the founder and owner of three Solaย Cafeย & Market locations and Red Tractor Pizza in southwest
Montana. She has owned multiple cafes and bakeries within the west/southwestern US throughout her 28
years as an entrepreneur.
Founder: Alex McKenzie is the Founder and CEO of The Emperor of Food, Inc. He has nearly twenty years of
experience across multiple sectors of the food industry, including work in 14 di๏ฌerent restaurants; food-service
operations; multiple farms, including dairy and other livestock; wholesale production operations; and both
freshwater and saltwater aquaculture systems. He holds a BA in Food Policy, and has maintained a deep
fanaticism for ice cream since he was a youngster. This is his ๏ฌrst experience as a business owner.
Board of Directors: Christina Calabrese is the co-founder of the Emperor of Food (and Alexโs partner), and
serves as the company Secretary. With professional experience in real estate and design, she will be an asset
as we commence operations in markets beyond Montana, assisting with matters related to zoning, applicable
permitting, and vehicle prototyping.
Our Teenage Scoopers and Wa๏ฌe-Cone Pros: For the
past two summer seasons, weโve taken great pride in
providing Big Sky youth with their ๏ฌrst employment
experience!