SNAK Jan 2016 Investor Presentation

8/20/2019 SNAK Jan 2016 Investor Presentation

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Inventure

FoodsICR ConferenceJanuary 12, 2016


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Statements contained in this presentation that are not historical facts are forward-looking

statements as that term is defined in the Private Securities Litigation Reform Act of 1995.

Because such statements include risks and uncertainties, actual results may differ materially from

those expressed or implied by such forward-looking statements. Factors that may cause actual

results to differ from the forward-looking statements contained in this presentation and that mayaffect the Company's prospects in general include, but are not limited to, general economic

conditions, increases in cost or availability of ingredients, packaging, energy and employees, price

competition and industry consolidation, ability to execute strategic initiatives, product recalls or

safety concerns, disruptions of supply chain or information technology systems, customer

acceptance of new products and changes in consumer preferences, food industry and regulatory

factors, interest rate risks, dependence upon major customers, dependence upon existing and

future license agreements, the possibility that we will need additional financing due to futureoperating losses or in order to implement the Company’s business strategy, acquisition-related

risks, the volatility of the market price of the Company’s common stock, and such other factors as

are described in the Company's filings with the Securities and Exchange Commission.

Forward Looking Statements

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About Us

Shares Outstanding: 19.6 million

Market Cap: ~$140 million

Stock Price (as of 12/31/15): $7.10

52 week range: $6.57-$13.08

2014 Adjusted EPS: $0.47 (diluted)

Company Founded: 1983

Public Since: 1996

Headquarters: Phoenix, Arizona

Healthy Snacks

Premium Private Label

Frozen Fruit

Frozen Beverages Indulgent Snacks

Frozen Vegetables

LISTED

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Investment Highlights

Consistent organic growth in revenue and earnings

Innovative marketer of healthy / natural and indulgent specialty food brands with

state-of-the-art facilities

Strong portfolio of national brands

Diversified product portfolio and distribution channels of branded and private labelfruit and snacks

Seasoned management team with backgrounds at global CPG companies

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$9.9

$16.0$18.0

$24.9

$16.9 $14.7

2011 2012 2013 2014 First 9Months

2014

First 9Months

2015

Revenue

Financial & Investment Highlights

EBITDA

$162.2$185.2

$215.6

$285.7

$168.7$182.2

2011 2012 2013 2014 First 9Months

2014

First 9Months

2015

(c.)

($ in millions)

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(a.) Adjusted for gain on sale of DSD business

(b.) Adjusted for acquisition-related transaction costs(c.) Adjusted for Fresh Frozen contingent consideration, Jamba litigation settlement, and offering costs

(d.) Excludes Fresh Frozen

(e.) Excludes costs associated with the product recall, Boulder capacity constraints and estimated business interruption costs associated with the product recall

(b.)(a.)

($ in millions)

Historical 5-Year Stock Performance

(d.) (e.)(d.)(c.)

$7.10

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00


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2015 Issues

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Frozen Vegetable Recall

Announced April 2015

Significant impact on sales and earnings

Status:

Plant up and running at the end of June 2015

No illness reported from any consumers

Maintained 95% of customers

Slowly ramping sales to pre-recall velocity

Added additional costs

Boulder Canyon Capacity

The success of the brand caused a short term capacity issue at the kettle chip plant

Used outside co-packers at an incremental cost of $1.5mm per quarter starting in Q2

Status:

Four new kettles being installed at our Kettle chip plant and will be up and running by January 2016

Four additional kettles scheduled for the back half of 2016 at the Bluffton Indiana plant as Boulder expands east

Declining Fruit Margins

Reduced crop yield in the summer will affect fruit margins in 2016

Status:

Building our “value added” fruit business

Focusing on cost reduction projects to mitigate the margin issue


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2016 Outlook

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Boulder Canyon

Capacity issues will have been resolved

Expect to continue revenue growth

Expect to continue significant new product introductions

Frozen Vegetables Implementing bold moves in 2016 to increase margins

Upgraded the Operations team at the Jefferson facility

Frozen Fruit

Focusing on continuing the momentum on the Rader brand in 2016.

Focusing on building “value-added” fruit products (ie. Fresh Start)

Focusing on margin enhancement projects


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Financing Update

8

On November 23rd

, SNAK completed a $135 million debt refinancing

– Includes a new five-year, $50 million senior-secured revolving credit facility and a new five-

year $85 million senior secured term loan facility, both of which mature on November 17,

2020

These facilities, in conjunction with the company’s cash flow from operations,expected to adequately meet capital requirements for future growth over the next

several years


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Sales Growth Across Brands

2014 Net Revenue of $285.7 million, up 33%

First Nine Months 2015 Net Revenue of $213.9 million, up from $211.9

Excluding the Fresh Frozen business, net revenues would have increased 8%

Frozen Berries

Frozen Vegetables

Jamba All-Natural Smoothies

National Licenses

Regional Brands

Healthy Natural84% of Net Sales

Indulgent Specialty16% of Net Sales

Better-For-You Snacks



Private Label

LicenseeLicenseeLicensee Private Label

Licensee Private Label Private Label

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Innovative New Products 2014

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Innovative New Products 2015

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Specialized Facilities

Lynden, WA

Willamette, OR

Goodyear, AZ

Bluffton, IN

Jefferson, GA

Thomasville, GA

Frozen Facilities

Snack Facilities

Inventure Manufacturing Locations

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Diverse Distribution Channels

Broad and growing distribution across grocery, natural, mass, convenience and foodservice channels

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Seasoned Leadership Team

Strong executive management team from top-tier consumer packaged good companies with

average leadership tenure of 7 years

Name Title

Years at

Inventure Foods

Industry

Experience Relevant Experience

M a n a g e m e n t

Terry McDaniel Chief Executive Officer 9+ Years 30+ Years

Steve Weinberger Chief Financial Officer 9+ Years 30+ Years

Steven Sklar GM Snack Division 10+ Years 25+ Years

Dan Hammer GM Frozen Division 1+ Year 30+ Years

N e w A d d i t i o n s

t o t h e

B o a r d o f D i r e

c t o r s

David Meyers Board Chairman 2+ Years 35+ Years

Harold Edwards Board Director 2+ Years 20+ Years

Paul Lapadat Board Director 2+ Years 20+ Years

Tim Cole Board Director 2+ Years 30+ Years

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http://www.theschwanfoodcompany.com/default.htmhttp://www.theschwanfoodcompany.com/default.htmhttp://logodatabases.com/general-mills-logo.html/general-mills-logo-2012http://logodatabases.com/general-mills-logo.html/general-mills-logo-2012


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Trends in Healthy Eating

(1) SPINSscan Natural (proprietary), SPINSscan Conventional Multi Outlet TPL (powered by IRI). 52 weeks ending 10/5/2014.(2) SPINS 52 week data ending 11/1/15.

(3) IRI Multi-Outlet 52 week data ending 11/1/15.15

Frozen fruit category

increased

9.4%(3)

The Natural snack

channel grew

16.1%(2)

Dollar sales of natural and organic products are expected to reach more than $100 billion in the USin 2015 with a growing number of retailers increasing product selection to meet consumer demand.(1)

Healthier foods are snatching up dollar share.

Natural and organic now represents nearly 6% of Conventional Multi Outlet total channel dollar sales.

While that’s just a fraction of the 82% dollar share these products get in Natural Supermarkets, the

number rises each year.(1)


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Frozen Fruit and Smoothies

2014 Net revenues up 9.5%

First Nine Months 2015 Net revenues up 11.8%

Strong frozen fruit branded and private label sales

Successful launch of new Jamba Fusion line-up of blended fruits and vegetables, including: Green Fusion,

Blue Fusion, Red Fusion and Organics

Market leading: Jamba dollar share of frozen beverage category is 46.9%(1)

Launched new “Steamables” product in early 1Q15

Successful launch of Fresh Start line

Rader FarmAcquisition

Jamba At-Home

Smoothies

AdditionalJamba SKUs

WillametteAcquisition

Fresh FrozenAcquisition

2007 2010 2012 2013

Frozen Segment Innovation Timeline

(1) IRI US Foods Channel data 52 weeks ending 11/1/15.16

Jamba FusionJamba

OrganicFresh Start

2014 2015 2016


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Boulder Canyon Brand

2014 Net revenues up 70.3%

First Nine Months 2015 Net revenues up 38.2% 5 year CAGR 24.5%

Gluten Free / GMO Free / Healthy Oils

Highly extendable brand that can be leveraged into adjacent

product categories

Increased brand investment support

Strong dedicated sales and marketing team New flavors and concepts introduced in 2014 and 2015

New line of better for you popcorn available late 2016

Boulder Canyon Innovation Timeline

Boulder CanyonAcquisition

Rice & AdzukiBean Chip

CompostablePackaging

Garden SelectVegetable

Crisps

New Boulder Canyon Flavors

2000 2011 2012 2013 and 20142009

US Foods(52 weeks ending 11/1/15)

IRI Potato Chip Category +2.8%

Boulder Canyon +42.4%(12 weeks ending 11/1/15)

IRI Potato Chip Category +2.6%

Boulder Canyon +32.1%

SPINS(12 weeks ending 11/1/15)

SPINS Potato Chip category +15.7%

Boulder Canyon +57.8%

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Coconut Oil

Popcorn

2015


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Frozen Vegetables

Portfolio diversification: Frozen vegetables are a $4.4 billion

category Full-service processor and supplier of 60 varieties of frozen

vegetables and fruits

Year-round freezing operations in Southeast and ability to freeze

strawberries and other fruits in new region

Accretive to earnings in 2014

Began to capitalize on synergy opportunities in sales, operationsand logistics

Launched new “Steamables” product in early 1Q15

US Foods(Pre-Recall / 52 weeks ending

4/19/15)

IRI Frozen Vegetable Category -

0.8%

Fresh Frozen +11.4%

(1) Wall Street Journal: “See Through Food Packaging Boosts Sales.”

“Clear packaging givesproducts an aura of being

natural, something that

more shoppers are

seeking(1)”

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Premium Private Label Brands

Unique premium private label products offer a distinct competitive advantage and

additional sell-through opportunities for branded products

Illustrative Customers

5.2%

47.4%

39.0%

2013 2014 First 9

Months

2015

Healthy / Natural Private Label Sales Increase

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Distribution Growth Opportunities

Key Brands

Channels

Grocery(1)37% ACV Less than 20% ACV Less than 20% ACV

Natural(2) 82% ACV

Mass

Drug

Club

Convenience

(1) IRI US Foods Channel data 52 weeks ending 11/1/15.

(2) SPINS Natural Channel 52 weeks ending 11/1/15.20


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Recent Accolades

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Circ: 2,395,496

Circ: 2,872,944

Circ: 8,615,404

Circ: 1,708,387Featured in

November 3rd

issue of

Forbes; named

as innovators

in the “Futureof Snacktime” Named to 2014

Forbes List of

“America's Best Small

Companies”

for third year

Circ: 4,072,592


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Recent Accolades: 2015 Highlights – Jamba

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Total of 28 placements, resulting in 1,360,271

impressions

• 10 print (187,374 impressions)

• 3 online (19,919 impressions)

• 9 blogs (197,474 UVPM)

• 6 National TV (955,504 viewers)• 203 Regional TV (15.6M audience)

Trade/channel

awareness

6 national airings

955,000 viewers

203 regional

airings

149 markets


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Recent Accolades: 2015 Highlights – Rader Farms

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Total of 17 placements, resulting in

779,210 impressions

• 10 print (298,133 impressions)

• 3 online (151,579 impressions)• 6 blogs (465,498 UVPM)

• 264 Regional TV (9.5M audience)

264 regional airings

164 markets


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Investment Summary

Strong growth potential with consistent revenue and earnings growth performance

Continued distribution gains and participation in high growth categories

Plans to leverage diverse distribution channels to spur ACV growth across brands to

allow for enhanced market share

Develop new technology to fuel growth

Expand product portfolio to take advantage of consumers’ desire for frozen fruits,

frozen vegetables and snacks

Difficult 2015 but poised to return to growth in 2016

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www.inventurefoods.com

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SNAK Jan 2016 Investor Presentation