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SIMPLY TODDY
April 23rd, 2008
Daniel Belleau
Alessandra Dyer
Chase Durrett
Bethenie Hope
POINTS OF SIGNIFICANCE
Market
Opportunity
Niche
Product
Sustainable
Competitive
Advantage
MARKET OPPORTUNITIES
Ready-to-Drink Packaged
Coffee Beverage Market
$413.9 Million
 9% Market Share
 17.5% Compound annual growth
rate

Customer Surveys
90% drink coffee 3-4 times/week
 95% liked/loved Simply Toddy
 What is “cold-brewing?”

PRODUCT STRATEGY
Offering
Initially:
 Sweetened and unsweetened
 Mexican Zaragoza Select
(Allegro)
 Future:
 Flavors
 Special Proprietary blend

Pricing Strategy

Each 12 oz bottle= $2.99
PRODUCT STRATEGY
Benefits of Features

Unique Packaging


Niche Product


Unique flavor provides an exciting alternative to the
typical cup of coffee
Caffeine


Trendy look increases the cool factor of the
consumer
Energy to get through the day without the sugar
crash
High in antioxidants/low in acidity

Mood lifting, protects against various diseases
SUSTAINABLE COMPETITIVE
ADVANTAGES
Packaging &
Design
-creative and simple
-Recognizable and
convenient
-Committed to sustainable
products
Continuous
Innovation
-Various Blends
-New and exciting flavors
-Always high quality and
organic ingredients
Legal agreements
and contracts
Management
-Contract brew master
-Supplier and distributor
non-compete agreements
-Women-owned business
-Hire CEO
-Experienced and passionate
company members
TARGET MARKET STRATEGY
Consumer Market
•LOHAS individuals
•Young urban professionals
•Ages 20-35
•Average income ~ $40,000
CHANNEL STRATEGY
Year 1
•Local Coffee Shops, Mom & Pops
•Boulder Whole Foods
•Direct Store Distribution
Year 2
•Expand to other natural food grocers
& coffee shops
•Expand to Whole Foods Markets
across Colorado
Year 3
•Expand regionally, and to conventional
grocery chains
COMMUNICATION
Unique Packaging
•Trendy, eye catching
Point of Purchase
•Positive, informative, exciting
Intensive webpage
•Consumer resource
Local events
•Name recognition
POSITIONING
Taste/ Health benefits
Convenience
MANAGEMENT
Board of Advisors
Wes Brasher, founder & VP of operations of MIX1 Life
- Ed Nichols, Co-founder and President of Sambazon Inc.
- Ed Iacino, president of Seattle Fish Co
- Boland T. Jones, Founder, Chairman, CEO of Premiere Global
-
Position
Role
Desired
Background
CEO
Lead and guide Simply Toddy
Experience in organic
food/beverage industry
Co-Packer
Brew & package our products
Educated and passionate
individuals
CFO
Master of finances
Strong financial skills
Other
Production crew, Brew master,
distributer, lawyer, organic local
food broker, design company
knowledge in specific
field
RISKS & MITIGATION
1) People don’t like it!
2)Simply Toddy does not get into Whole
Foods Markets
3) Simply Toddy cannot get traction in
the market
4) A competitor copies our product
REVENUE
Portrays unit price
evaluated with number
of units sold each year
 Year 1: Local Boulder
market penetration
 Year 2: All Whole
Foods CO locations
 Year 3: All regional
Whole Foods locations
 Year 4: Western
regional Whole Foods
locations
 Year 5: Coast to coast

INCOME
Net Income Statement
Gross Profit Years 1-5
Net Income Statement
Net Earnings Years 1-5
4,500,000
8,000,000
4,000,000
7,000,000
3,500,000
3,000,000
5,000,000
Net Earnings
Gross Profit
% of revenues
6,000,000
4,000,000
3,000,000
2,500,000
2,000,000
1,500,000
2,000,000
1,000,000
1,000,000
500,000
0
0
(1,000,000)
1
Gross Profit (4,983)
2
3
4
5
465,781 1,421,85 4,926,03 7,523,39
Driving factors
(500,000)
1
Net Earnings (97,155)
2
3
233,770
608,885
4
5
2,711,10 4,251,16
•Economies of scale
•Outsource production years 3-5
•Initial start-up capital costs and transition costs will
be highest in years 1 & 3
CASH FLOW
FUNDING
Funding Round
Type
Startup
Investment
(Prior to Year 1)
Founder
Bootstrapping,
Friends and
Family
Production
Support
(Early Year 3)
Other
companies
funding, Angel
investors
Amount
Offering
Uses
Employee Salaries
$150,000
20%
CAPEX - Equipment
Inventories
Launch Marketing
Campaign
Additional Employee
Salaries
$200,000
10%
CAPEX - Kitchen &
Master Brewer
Inventories
Marketing - Sponsor
Events
CONCLUSIONS
Market
Niche
Sustainable
Opportunity Product Competitive
Advantage
QUESTIONS?
OPERATIONS PLAN
Market Testing
Customer Service
Allegro Coffee Beans
 Production in Boulder

Brewing
 labeling
 Bottling


Retailer
DSD
 Whole Foods Market
 Coffee Shops
 Expansion…

DEVELOPMENT PLAN
CUSTOMER RESEARCH
 Surveys
80 handed out
 What is Toddy Coffee exactly?

 Sampling
50 Distributed on-campus
 Cold-brewing system is NOT well-known
 95% loved the drink because:

Taste
 Smooth
 Refreshing
 Less bitter

FINANCIAL ASSUMPTIONS
Revenue numbers and quantities are based of
Mix1 business model
 Each bottle of Simply Toddy will be filled with
12oz of toddy and 80 cans will be produced per
case.
 Salary for employees will make up on average
71.8% of our revenue
 A water permit must be obtained for ~$2000 due
to the Boulder Country water allotment
restrictions
 The cost of sampling for 1 year is ~$275 and
$500+ budgeted in the financial plan

REVENUE MODEL
Simply Toddy
Notes
Revenue Projections
Years 1 to 5
($)
Simply Toddy
Number of units
Cases Per Year
Price per unit
Total
Net Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
256
512
356
2,764
391
10,332
430
27,400
473
42,034
239.2
61,235
239.2
661,149
239.2
2,471,414
239.2
6,554,080
*price
239.2customer pays
10,054,533
61,235
661,149
2,471,414
6,554,080
10,054,533
Year 3
Year 4
Year 5
143,442
546,057
860,950
168,756
642,420
1,012,882
236,258
899,388
1,418,035
Revenues by
Months &
Quarters
($)
Months
Month 1
Month 2
Month 3
Total 1st Quarter
Month 4
Month 5
Month 6
Total 2nd Quarter
Month 7
Month 8
Month 9
Total 3rd Quarter
Month 10
Month 11
Month 12
Total 4th Quarter
Total for year
Average Revenue
by Month
by Quarter
Year 1
Year 2
0
0
0
0
1,062
1,700
2,125
4,887
2,125
2,550
3,187
7,862
2,550
2,762
3,187
8,499
14,035
14,035
19,649
47,720
16,842
19,649
19,649
56,141
22,456
28,071
28,071
78,598
30,878
33,685
33,685
98,247
295,322
1,124,235
1,772,544
21,248
280,706
843,778
3,212,100
5,064,411
5,103
15,309
55,096
165,287
205,951
617,854
546,173
1,638,520
837,878
2,513,633
COMPETITION
Company
Product
Quality
Features
Location
Strengths
Starbucks
Lack credibility in socially
4 RTD coffee beverages
Low quality, low cost
and economically
(Frappucciono, Doubleshot product. Recent efforts to Consistency of product with World-wide, headquartered Consistently maintains over sustainable and organic
& Light, and Iced Coffee) support growing community recognizable brand
in Seattle, WA
90% of RTD coffee industry community
Caribou
Lack credibility in socially
Recent Partnership with
Low quality, low cost
Partnership with Coca-Cola and economically
Coca-Cola including plans product. Recent efforts to Consistency of product with Nationwide, headquartered with immediate plans to sell sustainable and organic
to expand to RTD industry support growing community recognizable brand
in Minnesota
nationwide
community
Single origin coffee from
several regions. No known
Sold nationwide as well as
organic or fair-trade
Protein and vitamin infused online, headquartered in
Differentiation with protein
agreements
health features
California
and vitamin health benefits
Weaknesses
Lack any differentiation
from Starbucks with
inability to overcome
market share
Bolthouse
3 protein infused RTD
coffee beverages
Cool Brew
Cold brewed coffee
concentrate served in large Low quality, low cost
servings. Requires mixing product
Low in acid and bitterness New Orleans based, online First mover in cold brew
of flavor
sales
coffee beverages
4 RTD coffee beverages
100% organic, fair-trade,
high in sugar and additives and single origin coffee
Single origin with
consistency of bean and
flavor
Socially sustainable
Lack any differentiation
Sold nationwide as well as company with products and from Starbucks with
online, headquartered in
production capability to
inability to overcome
California
penetrate market
market share
100% organic and fairtrade coffee
Boulder based, sold on
west coast as well as
online
Adina
Veloce
Whole bean and ground
coffee ready for to brew
100% organic and fairtrade coffee importer
Poor marketing resulting in
market unawareness as
well as lacking convenience
of RTD
Well known in whole bean
Established Boulder based coffee with inexperience or
organization with
production capacity to enter
necessary resources
RTD coffee