©2013 The Ice Cream Bar, Inc., all rights reserved. COMPANY INFORMATION • Blend’s ice cream contains 20% distilled spirits made in 33 classic ice cream drink flavors: Brandy Alexander Whiskey & Cream White Russian Grasshopper Pink Squirrel Golden Caddy • Intellectual Property Blend’s technology stabilizes the alcohol molecule keeping it from interacting with ice crystals and milk proteins making ice cream with distilled spirits possible. Blend’s was developed at the U of M Pilot Plant by leading food scientists. The patent was published on November 15, 2001. Rulon Chappell, Ph.D. Charlie Pyne, Ph.D. Ramesh Chandan, Ph.D. Raymond Miller, M.S. David Smith, Ph.D. Daryl Orris, Ph.D. •Mark Litman, J.D. Patent Attorney •Title: A process for combining ethyl alcohol with ice cream. •European patent granted. Asian application has been submitted. • Blend’s is handled, distributed, warehoused and merchandised in the same manner as ice cream. PRODUCT • 100% Natural Agricultural Product • Convenient • Consistent • One Year Shelf Life • Focus Groups & Test Marketed • Bureau of Alcohol, Tobacco, and Firearms (now TTB), Food and Drug Administration, Patent & Trademark Office Approvals Achieved. MARKETING/SALES Blend’s are sold the same way as other beverage alcohol products. • Marketing Strategy - Top Grocery Stores, targeting women - Wine & Spirits Wholesale Associations - Advertising & Promotion Materials - Newspapers, Print Magazines, Retailer co-op promotion • The Market - Women 21-54 - Alcohol Industry is $420 Billion - Ice Cream Industry $22.4 Billion - $2.2 Billion U.S. Category Potential • Sales - Asia Through Ito Yokado / Aeon - Wal-Mart & Other Large U.S. Retailers BUSINESS MODEL • ICB Liquor Manufacturer to > Liquor Distributor to > Liquor Retailer; Licensed Foodservice; Government > (USA 3-Tiered System) to Consumers Profit Centers: • New Retail Market for Ice Cream Blend’s® cannot be sold in the ice cream section, only in the beverage alcohol section – a new retail location for ice cream, 33 states allow alcohol sales. • New Dessert Opportunities for Food Service & Caterers • License Technology To Ice Cream & Distilled Spirit Companies MANAGEMENT TEAM • Daryl J. Orris, Ph.D., Chief Executive Officer Over twenty-five years experience in packaged goods marketing which includes beverage alcohol & ice cream. • William A. Blonigan, J.D., Corporate Counsel Corporate Attorney familiar with all the federal & state rules & regulations pertaining to beverage alcohol. • David E. Smith, Ph.D., Director Product Development & Production Food Scientist: The leading expert in ice cream, Professor of Ice Cream at U of M & U of W, Madison. Analyzes product & establishes all production processes. • William F. Stoll, Ph.D., Director of Development Food Scientist who developed soft-serve version of the product & assists with product & production issues. • Mark Newman, M.S., Director of Production Food Scientist who establishes production and product development and research. COMPETITION • Bars & Restaurants - Made individually for immediate consumption • Large Ice Cream & Distilled Spirits Companies - Consumers make it at home (ingredients) • Blend’s Are Uniquely Positioned - New Convenient, Solid Form - New Dessert Opportunities USE OF PROCEEDS • Establish Production with Safeway & Well’s Dairy - Test Run to Produce Test-Market Inventory & Samples • Establish Market in Tokyo – Ito Yokado/Aeon • Begin Formal Presentation to Large Retailers Who Expressed an Interest in Blend’s - Wal-Mart • Finalize Five-Year Plan & Develop Administrative Systems BUSINESS MILESTONES • Establish Test-Market • Establish Retail Presence • License the Technology • Establish Food Service Presence FINANCING PLANS • Investments: $5.5MM start-up – Phase 1 Blend’s Asia – Phase 2 Wal-Mart / Safeway – Phase 3 Market Expansion • Liquidity – Acquisition – IPO FINANCIALS (000’s omitted) 120,000 100,000 80,000 60,000 40,000 20,000 0 2013 2014 2015 -20,000 Revenue Profit/Loss 2016 2017 SUMMARY OF KEY POINTS • Blend’s Combines Two Happy Products • Intellectual Property Secured • Huge Market • Competition - minimal • Not Capital Intensive • Fast Revenue Growth • Experienced Management Team • Large Retailers Interested in Blend’s NOW! • New Proprietary Technology CONTACTING BLEND’S Blend’s® • The Ice Cream Bar, Inc. 4300 Twin Oak Lane, Suite A, Robbinsdale, Minnesota 55422 USA, Telephone: +1-763-463-5796. E-mail: info@blendsicecream.com Website: www.blendsicecream.com ©2013 The Ice Cream Bar, Inc., all rights reserved.