MamaMancini’s Holdings Inc. Corporate Presentation (OTCQB: MMMB) Winter 2018
Forward Looking Statements This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future,” "plan" or "planned,” "will" or "should,” "expected,” "anticipates,” "draft,” "eventually" or "projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company’s 10-K for the fiscal year ended January 31, 2018 and other filings made by the Company with the Securities and Exchange Commission. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Company Highlights • Investing in the business to grow profitably. • Growth initiatives gaining traction, including successful launch of several products on QVC with increasing authorizations. • Continuous improvement on efficiency metrics - increased gross profit margins; improved return on operating expenses; expanding cash flows. • Valuation metrics reflect discount to peer group - other rapidly growing brands being acquired at higher valuations. • Management team with proven track record of brand building. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growth Drivers for MMMB What is a good business to be in? • Industry Growing Rapidly • Perimeter of store where majority of MMMB product located growing 8-10% annually Taste Nutrition • Good Margins • MMMB: ~34-35% Gross Profit Margin • Marginal overhead increases with higher sales • Consistent Sales at full pricing Preparation Quality • MMMB Consumer Trends are favorable Products • Home meal replacement • Core products fill consumer needs • Quality • Taste • Nutrition • Ease of preparation • Competition fractionalized and non-branded • Value of the Brand M AMA M ANCINI’S An Original Family Recipe Winter 2018
MamaMancini’s: An Original Family Recipe Home style, old world Italian food created from recipes Dan Mancini’s grandmother brought to America in 1921 when she came through Ellis Island. Never written down, existing only in her heart until Anna Mancini taught all of the recipes to Dan. He is now sharing them with everyone. • All-natural, no artificial ingredients; • Superior nutritional profile; • Highly convenient preparation; • Great value. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Product Review M AMA M ANCINI’S An Original Family Recipe Winter 2018
Product Review M AMA M ANCINI’S An Original Family Recipe Winter 2018
Superior Nutritional Products M AMA M ANCINI’S An Original Family Recipe Winter 2018
High Customer Retention M AMA M ANCINI’S An Original Family Recipe Winter 2018
Favorable Industry Trends “….the most fundamental one is a shift in consumer preferences. Put simply, customers are buying more fresh vegetables and meat and shying away from packaged, processed foods….Supermarkets are responding to this trend in a number of ways. They are renovating stores to allocate more space to the perimeter, where fresh produce is sold…In addition, small challenger brands are proving more responsive to consumer trends..” -What’s Working and What’s Not in the Supermarket? (June 7, 2018) “And they [consumers] are buying more from stores at two poles: ones with cheap prices, and ones that offer high- “Shoppers are increasingly shunning the processed, quality fresh food, often at a premium….Consumers are far packaged products that fill most shelves in the center more curious and educated about the source and content of of the store. Instead, they are hunting the perimeter their food….while simultaneous demand for for….prepared foods…They’re [the consumer] really convenience….” buying more….prepared meals.” -For Amazon, Now Comes the Hard Part - What’s New in the Supermarket? (June 19, 2017) (May 16, 2017) M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Business with Large Expansion Opportunity 11 11 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Business with Expansion Opportunity Retail Channel Presence* 12,600 25,400 Current MMMB Stores Future Opportunity *Based on estimates of 38.000 U.S. Supermarket locations M AMA M ANCINI’S An Original Family Recipe Winter 2018
Positioned for Rapid Growth Concept Brand Awareness Expansion Profitable Growth 2015 2013 July 2009 • Commence relationship • Sales with QVC • Company $8.6M • Focus on margin • Incorporated Company 2018 improvement 2012 • Sales: $50,000 goes • Elimination of public • Sales rise by underperforming • Sales: Products 53% to accounts 2010 $4.6M sold in another • Embark 7,000 new record 2017 • Logo and packaging on locations of $27.5M developed. aggressiv • Company • • Sales climb Company ships first e radio acquires 2016 43% to product. campaign JEFE, new on Sirius creating • Expand and record of Radio additional leverage QVC $18.0M operational • relationship Company efficiencies • Drive reports 2014 expansion first with Top 10 profitable customers quarter • Sales: $12.3M • Focus on new • Introduction of 6 major new products 2011 accounts • Available in • Expand • Sales: $3.7M 11,000 locations product • Expansion of portfolio product line to 4 Products M AMA M ANCINI’S An Original Family Recipe Winter 2018
Focus on Growing Business Profitably 14 14 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Revenues Profitably Investing in the business to grow profitably Expand Upon Expand Eliminate Success of QVC Leverage Past Geographic Focus on Multi- Underperforming Relationships to Investments in Reach to Million Dollar Accounts to Turn Effectively Brand Awareness Untapped U.S. Accounts Profitable Introduce New Areas Products Complete Ongoing In-Progress In-Progress In-Progress M AMA M ANCINI’S An Original Family Recipe Winter 2018
Targeting High Growth Perimeter of Store Perimeter of store is Higher growth is occurring in the growing at approximately “perimeter,” or outer ring of the 8-10% per year supermarket where fresh foods are stocked. Fresh Package Meat Fresh Sandwiches Fresh Hot Bar Center of store Fresh Pasta is decreasing by ~ 1-2% per year Fresh Deli Fresh Prepared Food M AMA M ANCINI’S An Original Family Recipe Winter 2018
Expansion Focus 17 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Brand Building Through QVC World's Largest Direct to Consumer Media Marketer 12 new MamaMancini's products that have been featured on QVC since June 2015. Product Marketing Growing New Product Geographic Branding Research and Tool to Sell to Profit Center Introduction Reach Building Development Trade M AMA M ANCINI’S An Original Family Recipe Winter 2018
Large Expansion Potential with Major Retailer Chains Still scratching the surface of potential distribution Albertson’s/Safeway Kroger Super Value Whole Foods Publix Target 550 600 700 180 Fully Penetrated New Opportunity 1,500 1,400 370 2,200 1,800 1110 0 Sam’s Club 0 Stop n Shop/Giant Nash-Finch AWG Costco Walmart 90 300 500 Fully Penetrated New Opportunity Fully Penetrated 1,500 1,700 470 4,500 770 640 Current MMMB Stores Future Opportunity M AMA M ANCINI’S An Original Family Recipe Winter 2018
Expand SKU’s Per Retail Location Opportunity for multiple product placements per store MMMB products now in 43,600 locations as of October 31 vs. 40,600 last year. Company expecting to add 7,000-10,000 locations in coming quarters. Locations Product Fresh Original Stuffed Turkey Fresh Packag New Fresh Fresh Meatbal Meatbal New Meatbal Prepare Meatloa ed Deli Hot Bar ls and ls and Sauces ls and f d Meals Sauce Sauce Sauce Meat M AMA M ANCINI’S An Original Family Recipe Winter 2018
Increasing Velocity per Store *Estimated at end of third quarter 2014 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Financials 22 M AMA M ANCINI’S An Original Family Recipe Winter 2018
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