Initial Private Financing
Solo Gi Nutrition Inc.
EXECUTIVE SUMMARY
August 1, 2008
GROUND FLOOR INVESTMENT OPPORTUNITY
The Board of Directors of New Era Nutrition Inc. (“New Era”) has authorized management to raise $2,000,000
through an Initial Private Offering (“IO”) representing 30% of the equity of Solo GI Nutrition Inc. (“Solo”), a
wholly owned subsidiary.
Valuation
The Board has valued this offering based upon the direct investment by New Era into
SoLo of $4,903,139 as of June 30, 2008. This is in addition to a significant
investment by New Era in intellectual property with over a decade of Low GI
research and development and pre-launch activities. After closing of this financing,
investors will own a proportionate number of Class “A” Common Shares, representing
30% of the outstanding and issued shares of SoLo.
Exit Strategy
The SoLo Brand and products are being positioned for acquisition by a large consumer
packaged goods company, intended to provide investors with liquidity and an excellent return on investment
within 3-5 years. An alternative exit would be an initial public offering if or when market conditions were
determined to be favorable for a SoLo IPO.
MARKET OPPORTUNITY
Mintel (Nutrition and Energy Bars – US- 2007) expects that nutrition and energy bar sales will be $982 million
by the year 2011. Currently, five companies own 67.9% of market share, but only 18% of consumers exhibit
brand loyalty (according to Mintel). Taste, ingredients and performance continue to be the three determining
factors in consumer purchase decisions in this category. As a result, there is a significant opportunity to
convert large numbers of competitor bar users with a product that outperforms, uses all-natural premium
ingredients, and tastes better than the existing category leaders.
Mintel sees the sub-segment of sports fitness oriented bars as the greatest opportunity for growth. Athletic
bars are forecast to grow 27% making this segment the one with the most anticipated success. The growth in
this category is primarily the result of an increased interest in sports among consumers.
According to Mintel, for six in ten of all energy bar users—and seven in ten male energy bar users—the
category is part of a workout routine. Providing energy to get through the workout is one driving factor for
use, yet additional ingredients, such as protein, that boost the workout’s effectiveness are popular additives
searched for in bars.
An equal number of sports-active respondents to a Mintel survey reported using a protein or energy bar
before activity to boost performance and after activity to assist in their body’s recovery. This finding suggests
the opportunity to sell athletic bars to be consumed in a before-and-after activity sequence. There is a great
opportunity for a bar designed to address the body’s specific needs before and after activity, respectively.
Mintel points out that many additional consumers, who are not active, use athletic-type products simply for
the sporty and “cool” image and/or for the taste. This presents a great opportunity for a company that can
successfully obtain professional and amateur athlete users and endorsers, offer a product with superior taste,
and effectively leverage this to appeal to the non-active, but image conscious consumer.Initial Private
Offering
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Solo Gi Nutrition Initial Private Offering
THE COMPANY
A Company with Pedigree
Solo GI Nutrition, Inc. is a wholly owned subsidiary of New Era
Nutrition Inc., a functional food and nutraceutical company
with an 18-year history. Founded by industry veteran Saul
Katz (Company President and CEO), New Era is a pioneer in the
research and development of functional food bars. The mission
of New Era is to develop great tasting functional food products
to promote health, enhance performance and reduce the risk
of disease. New Era has developed a deep pipeline of products
based upon proprietary and patent pending technology platforms. New Era’s functional food R&D originated
with a joint venture in 1993 with the University of Alberta Hospitals, and has been supported in part with
grants from the National Research Council of Canada.
New Era’s biggest success to date has been with the Balance Bar Company (BBC), its principal client between
1996 and January 2000 when it was acquired by Kraft. During that period BBC sales grew from USD$1.5 million
to USD$109 million, with BBC achieving #1 status in the Natural Channel and #2 status in Food, Drug and Mass
(FDM), at which time BBC was acquired by Kraft Foods for USD$268 million.
Solo GI Nutrition, Inc.
The Company is the marketer of SoLo Bars, an award-winning line of bars that provide a clinically validated
low glycemic response and a consumer-tested taste profile superior to the leading energy and nutrition bars.
SoLo Bars deliver the key benefits that resonate squarely with both athletes and fitness-conscious consumers
looking for a convenient, great tasting and natural nutrition bar that provides sustained energy for a
competitive advantage or as a healthy snack for their hectic lifestyle.
Having been incubated in the US Natural Food Channel, SoLo Bars are poised for leadership in the nearly US
$1 Billion plus Nutrition/Energy Bar category, and the emerging Low Glycemic (“Low GI”) movement
predicted by Packaged Facts to become the next big food trend. SoLo Bars have been discovered and are fast
becoming the “best-in-class” energy bar among professional sports teams, elite amateur athletes, sports
trainers, and the benchmark Low GI product used in world class research studies including Harvard Medical
School and the National Institutes of Health. To capitalize on this significant market opportunity,
management recently repositioned SoLo Bars to target fitness enthusiasts and health-active consumers who
are driving the growth in the Nutrition/Energy Bar category.
Intellectual Property
SoLo products have been developed in-house and are based upon New Era’s proprietary patent-pending Low
GI platform technology and functional food expertise. The Company utilizes a proprietary algorithm
developed over a decade of Low GI R&D, enabling speed-to-market of new Low GI products. The Company has
secured numerous domain names in the Low GI space over the past three years. Trademarks have been filed
internationally in anticipation of growing the SoLo brand globally.
SOLO PRODUCTS
The SoLo product line is comprised of 1.76oz (50 gr) all-natural, low glycemic energy bars available in 5
flavors: Berry Bliss, Chocolate Charger, Lemon Lift, Mint Mania and Peanut Power. The value proposition
represented by the SoLo bars is both unique and extraordinary, and is a direct reflection of the company’s
commitment to research and the staff’s technical capabilities. No other bar on the market today offers SoLo’s
combination of premium ingredients, unique product attributes and great taste. The benefits and impact of
low glycemic foods and snacks are universally accepted as the gold standard for athletes, dieters, diabetics,
and general good health for most people. SoLo bars are clinically validated low-glycemic and made with
wholesome, all natural ingredients yet contain no sugar alcohols, artificial sweeteners, trans fats or
hydrogenated oils.
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Solo Gi Nutrition Initial Private Offering
Controlled Energy Response
Most energy bars are made using refined sugars, including high fructose corn syrup, which causes a temporary
burst of energy, followed quickly by a “crash” where blood sugar drops below its original level leaving the
consumer feeling tired, hungry and less energetic.
SoLo Bar formulations are based upon New Era’s proprietary and patent-pending platform technology
(“Controlled Energy Response Technology™”) established over 18 years of functional food and nutraceutical
expertise. As a low glycemic pioneering product, SoLo Bars were developed with support from scientists who
developed the Glycemic Index at the University of Toronto and principals behind GI Labs Inc. which clinically
validated the low glycemic ranking of each SoLo Bar.
The Glycemic Index is the new scientific characterization of the impact of carbohydrate on blood sugar,
beyond the notion of simple or complex. Because carbohydrates vary greatly in their rate of digestion,
absorption and effect on blood glucose and insulin levels; the GI was developed as a more precise and
scientific ranking to measure the impact of a carbohydrate-containing food on blood sugar.
All SoLo bars are clinically validated as “Very Low GI” (23-29)
The result is that when consumed, SoLo bars raise blood sugar levels slowly, providing a steady fuel supply,
resulting in lasting energy and no crash – exactly what athletes and active people are seeking.
Pre and Post-Workout Nutrition
Fitness and nutrition experts suggest that pre-workout nutrition may be as important as post-workout
nutrition and SoLo Bars offer a unique marketing opportunity in offering the correct elements for both
applications.
When eaten prior to exercise, SoLo’s low glycemic profile and optimum nutritional balance of protein,
carbohydrate, dietary fat and fiber - provide the best combination for optimized fuel delivery and long-term
energy during activity. Alternatively, SoLo is just as effective as a recovery food. With 23-26 grams of quality
carbohydrates, SoLo quickly helps to replenish glycogen stores following exercise. Protein also plays a role as
recent research has shown that protein may help the absorption of carbohydrates and aid in protein synthesis
and muscle-tissue repair. Combined with antioxidant vitamins A, C, and E and selenium, SoLo can provide the
ultimate recovery food by promoting healthy cellular respiration, faster recovery and better workouts as a
result.
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Solo Gi Nutrition Initial Private Offering
What SoLo Athletes Have to say about SoLo Replenishment Benefits:
“In my training it is very important to replenish my body with good food and nutrition after hard workouts
to get the most out of my body and SoLo lets me do just that. I eat about 3 a week to re-energize and I feel
they are a key part in helping my body recover on hard days.
Josh Simpson USA, Olympic Level Distance Runner
“I frequently eat SoLo Bars after hard workouts and I find that I recover better and faster!”
Rebecca Stallwood Canada, Elite Cross Country Runner
SoLo’s unique dual-use product benefits relates perfectly to Mintel’s previously mentioned finding that
suggests a great opportunity to sell athletic bars to be consumed in a before-and-after activity sequence; to
boost performance and assist in the body’s recovery.
Great Taste
Nothing impacts repeat sales more than taste. SoLo bars taste great, offering consumers a degree of
uniqueness and an element of indulgence that makes them more attractive than competitor’s bars. In fact,
independent consumer testing showed that consumers prefer the taste of SoLo over the nation’s leading
energy and nutritional bars by a wide margin – Power Bar (88% prefer Solo) and Balance Bar (72% prefer Solo).
Well-Rounded Nutrition
In addition to the marked benefits of controlled glycemic response, improved recovery and great taste, SoLo
products maintain stringent quality standards that include:
No sugar alcohols
No artificial sweeteners, flavors or colors
No hydrogenated oils or trans fats
Clinically validated low glycemic
11-13 grams of quality protein
24 vitamins and minerals
Antioxidants for cell recovery
Good source of fiber
Excellent source of calcium
Kosher
Best tasting bars on the market
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Solo Gi Nutrition Initial Private Offering
SALES & MARKEING STRATEGY
Situation Analysis
SoLo’s market introduction was a leadership gambit intended to coincide with the emerging Low GI
“blockbuster” trend that industry experts were predicting. Because of its broad application (sustained
energy, weight management, diabetes), Low GI was predicted to become the most significant and biggest
food trend ever. AC Nielsen predicted Low GI as its #1 blockbuster food trend in 2006, and Package Facts
more recently projected Low GI retail sales to grow at an outstanding compounded annual growth rate of 45%
(CAGR), to reach $1.8 billion by 2011. Based on these forecasts, SoLo’s initial focus was on weight
management and diabetes, the two largest sub-segments predicted within the emerging Low GI category.
SoLo initially launched the bars as its pioneering product through Whole Foods Markets (140 stores) in June
2005. SoLo continued to test the waters by adding distribution into the large Natural Channel and grocery
over the next 2 years including the leading distributors Tree of Life, United Natural Foods, Nature’s Best,
Kehe and DPI. To date, consumers have purchased over 2.5 million SoLo Bars. While an impressive number,
this falls far short of forecasted sales. The predicted “blockbuster” trend has not emerged as quickly as
predicted, and sales to date do not reflect the ultimate market potential of this line.
Due to the current carb-conscious mentality (and lack of understanding of the glycemic index), SoLo sales
have not grown as expected due to the perceived sugar content in the bars by their target consumers within
the diabetes and weight management sub-segments. Until consumers learn to differentiate good carbs (Low
GI) from bad carbs (High GI), SoLo sales within these categories will continue to under-perform. Insert a
sentence about the carbs in SoLo being unrefined and low GI, thereby allowing for a slow and steady release
of glucose into the blood. Other companies in these sub-segments skirt the carb/sugar content issue with the
use of chemically altered non-digestible carbohydrates (sugar alcohols) or artificial sweeteners. For this same
reason SoLo has an advantage as an energy bar, because sugar alcohols and artificial sweeteners are largely
non-available to the body and therefore do not provide the sustained energy benefit that consumers derive
from SoLo bars.
This is a double edged sword for SoLo. While SoLo is a superior bar technically
and taste-wise, it has been a challenge to compete with minimal marketing
dollars to educate the non Low GI-aware, in a crowded diet bar marketplace
against well funded competitors. While Low GI consumer awareness continues to
grow, it still lacks the critical mass for SoLo to achieve a meaningful market
penetration in the diabetes and weight loss segments. The good news is that this
slow development of the Low GI opportunity is positively indicative of a trend
rather than a fad and can be leveraged after the category matures. SoLo’s early
mover strategy also has garnered a strong media following and the natural
product industry’s prestigious Golden Egg Award for the “Most Innovative Product
of the Year”.
While strong sales and revenue growth were delayed, the company took
advantage of this test marketing period to develop a plan to identify and focus
on the early adopters of Low GI that are accounting for the growth it is
experiencing. Through market research, networking and a variety of industry surveys, SoLo identified the
Sports/Fitness/Athletic segment as a group that is much more Low GI aware and that the perceived sugar
content in SoLo bars receives no push-back. As a result, SoLo began an outreach to professional and amateur
athletes in October 2007 that has attracted an impressive and growing list of professional and amateur sports
teams and elite athletes who recognize and appreciate the performance benefits and taste advantage of SoLo
Bars (see Schedule A for a list of current teams, trainers and athletes that use or recommend SoLo bars for
training and competition).
In contrast to the broad positioning of “Low GI” for weight management and diabetes, SoLo’s “Controlled
Energy Response” repositioning resonates squarely with a well-defined athletic consumer base, through
established channels of distribution. To capture this significant market opportunity, management has revised
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Solo Gi Nutrition Initial Private Offering
SoLo’s marketing strategy to refocus on the well defined Sports Fitness category which just happens to also
be the fastest growing of all 4 bar segments.
Of the 4 segments that comprise the Bar Market (Wellness/Lifestyle, Diet, Medical and Energy/Sport), the
Sports/Fitness/Athletic category is the only one showing significant growth year over year. Since October
2007, SoLo bars have experienced adoption by an increasing number of professional and amateur sports
teams: NBA (National Basketball Association), NHL (National Hockey League), WHL (Western Hockey League),
MLB (Major League Baseball) and NCCA (National Collegiate Athletic Association). This movement is being
driven by word of mouth, from coach to coach, athlete to athlete, and trainer to trainer, across different
sports. Daily consumption of SoLo bars is being advocated by several prominent National Basketball
Association trainers (see Schedules A & B).
Upon raising the funds, SoLo will initiate an aggressive marketing campaign that completes the brand
repositioning and highlights SoLo as the best-in-class bar in the Sports/Fitness/Athletic category, using
existing testimonials from players, trainers and coaches. The campaign will maximize public relations and the
power of the internet to feature SoLo bar adoption by professional and elite amateur athletes. SoLo will build
upon its current channel outreach to target new national distributors that cater to athletes and weekend
warriors through sporting venues including sports stores, specialty running stores, gyms, fitness centers, bike
shops, outdoors stores, and college campuses. SoLo will also continue to support early low GI adopters
through the strong distribution it has already developed in the US natural and health food channel with its
new, focused, and stronger positioning.
SoLo Sales Strategy
The objective of the SoLo sales strategy is to transition the Solo Brand into the Sports Fitness category and
leverage the early low GI adopter audience in Sports Fitness and Export Channels where the glycemic index
and the power of SoLo are understood, and the sugar content is not a barrier. This concept has been proven
through market experience on the initial launch and the overwhelming positive reaction from sports trainers,
professional athletes and amateur athletes. This will primarily be in the sports fitness arena (gyms, athletic
clubs, health shops, bike shops, outdoor shops, etc.) and subsequently expanding into the Mass and Drug
channels where sports fitness also does quite well.
This will occur as part of a 2 year brand building campaign that will prepare the Company for expansion into
more mainstream channels such as Convenience, Club and Grocery as a known brand while coinciding with
the continued growth of Low GI awareness. Management will implement an incremental growth strategy
designed to use resources as efficiently as possible and mitigate risk as consumers are made aware of the
products and benefits and each market or channel achieves forecasted sales targets.
ONLINE SALES
SoLo Web site
The company recently created and launched a comprehensive new Web site at www.solo-gi.com, reflecting
the product repositioning. Products may be purchased on the site and sales are driven by search engine
optimization efforts and online advertising campaigns including Google AdWords.
Online Retailers
The Amazon.com Ranking for SoLo has climbed significantly with the brand repositioning. SoLo is often in the
top 30 out of more than 500 bars. Chocolate Charger recently ranked #48 alone. The 47 bars ahead of it are
all major brands such as Luna, Clif, PowerBar and Balance Bar. Sales have increased 400% since we began
refocusing the SoLo messaging in December 2007.
SoLo has recently solidified distribution through Drugstore.com, the largest online drugstore in the U.S.
Product will be available via Drugstore.com in August 2008. SoLo will continue to grow this segment by
expanding online sales into other retailers such as Netrition.com, VitaminShoppe.com and others.
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Solo Gi Nutrition Initial Private Offering
Fitness Channel – Gyms, health clubs, bike shops, etc.
The response to SoLo by the fitness trade has been extremely positive. SoLo is attracting interest from the 3
leading Fitness distributors in the US (Europa, Boss, Martex). We are in discussion with Europa, the largest
sports fitness distributor in the U.S. with 4 regional warehouses around the country. These distributors will
open up the market for SoLo in Gyms, Health Clubs, Fitness centers, etc. These new distribution
opportunities focus on brands that are not ubiquitous such as PowerBar and Luna as a away of differentiating
their offerings.
Export
The glycemic index has been widely adopted by many countries around the world, making SoLo very
attractive in those markets. Furthermore, the international appeal of US professional sports has attracted
interest in SoLo. As a result, the company is represented in 70 countries by Sportika, the largest exporter of
sports fitness products in the US. It is forecast that approximately 10% of total sales Q4, year 2 will be export.
Private Label
SoLo and New Era’s formidable expertise in healthy low-glycemic products makes SoLo an attractive product
for private label. SoLo has secured a private label agreement with eDiets, the largest online diet company.
SoLo is to provide 3 bar flavors under the eDiets label. SoLo will piggyback its production runs to increase
margin and also utilize this additional volume to meet manufacturing minimum requirements. The first eDiets
order is expected in September 2008 for 30,000 bars. Projected volume for year 1 of this agreement is
250,000 bars.
Drug & Mass Channels
Once consumer awareness has risen and a strong sales history has been achieved through online and fitness
sales, management will begin to migrate the product to the larger Drug and Club store chains. Forecasts are
that Drug, mass and fitness will account for approximately 30% of total sales by Q4, Year 2.
Natural/Health Channel
SoLo will complete Brand repositioning in current distribution at Tree of Life and UNFI (represents 500+ stores
carrying SoLo), but revenues will become less dependent on this channel due to the high cost of doing
business with Whole Foods and other large Natural store chains.
Grocery Channel
Placement fees (slotting), and other demands from grocery retailers and distributors, coupled with less savvy
consumers, make this segment the least attractive for SoLo and therefore the plan is to reduce dependence
on this channel, decreasing to less than 10% of total sales by year Q4, year 2.
Below is a chart that shows forecasted sales (by % total sales) within the respective channels:
Percentage Grocery
Percentage Health / Natural
Percentage Whole Foods
Percentage Amazon
Percentage Other
Percentage Sports Fitness
Percentage Mass
Percentage Drug
Percentage C-Store
Percentage Club
Percentage Export
Percentage Private Label
Total:
Yr 1Q1
20.3%
20.8%
11.4%
12.9%
2.0%
3.9%
0.0%
0.0%
0.0%
0.0%
17.8%
10.9%
100.0%
Yr 1Q2
11.9%
14.8%
9.8%
15.7%
5.7%
11.1%
0.0%
0.0%
0.0%
0.0%
31.1%
0.0%
100.0%
Yr 1Q3
7.3%
10.1%
7.6%
12.9%
5.3%
10.2%
0.0%
0.0%
0.7%
0.0%
37.7%
8.2%
100.0%
Yr 1Q4
10.1%
12.2%
8.6%
14.1%
7.5%
16.7%
0.0%
0.0%
3.2%
0.3%
19.1%
8.2%
100.0%
Yr 2Q1
10.7%
10.1%
6.5%
10.3%
7.2%
20.7%
7.1%
0.0%
4.3%
1.4%
21.7%
0.0%
100.0%
Yr 2Q2
8.5%
6.8%
4.2%
5.8%
5.1%
21.4%
12.5%
2.9%
3.5%
1.7%
24.4%
3.4%
100.0%
Yr 2Q3
8.6%
6.9%
3.7%
4.9%
4.8%
22.4%
16.5%
4.0%
4.2%
2.2%
21.6%
0.0%
100.0%
Yr 2-Q4
9.4%
6.8%
3.4%
4.3%
4.9%
25.1%
20.0%
10.9%
4.8%
2.7%
6.0%
1.7%
100.0%
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Solo Gi Nutrition Initial Private Offering
SoLo: The Brand
1. The Definition of SoLo
SoLo is a premium all-natural bar geared toward the healthy active lifestyler, delivering
outstanding health benefits and really great taste to people who are looking for long- term and
sustained energy in their bar of choice, prior to and during fitness activities.
While other energy bars provide a quick lift and then an even faster crash, SoLo provides a more
gradual lift and then avoids the crash by providing longer, sustained energy.
SoLo is based in solid science, crushes the competition in taste and both of these points come to
life in the testimonials and numerous elite athletes that are choosing SoLo over other bars.
2. Communication Priorities, in order of Importance
A. Controlled Glycemic Response Technology
B. Best Tasting Bar on the Market
C. SoLo Powered Elite Athletes
D. All-Natural
E. Balanced Nutrition
3. Tone
SoLo is a premium product that costs a little more than other bars you’ve seen or tried, but is
definitely worth the price. It will exceed your expectations for taste, and will power you naturally for
endurance activities. Though the product helps you with your fitness activities, there is nothing
“Muscle-Head” or “Creatine” about its appearance or tone. If you are new to fitness activity, you in
no way will be intimidated by the SoLo message.
4. Audience
The SoLo audience is both men and women. The SoLo user is someone who has already made the
commitment to live an active lifestyle (some may be beginners) and is looking for that edge or boost
to lift them from the beginning to the end of their chosen activity. They are not the hard-core
protein bar eaters who have given up on taste. SoLo users may be occasional bar users or people who
ate bars in the past but gave up finding a bar that works and still tastes good enough to eat on a
regular basis.
5. Voice
The SoLo voice is authoritative, friendly, upbeat, trustworthy, smart, contemporary and very
pleasant. It teaches you about how to take care of your health, get that edge, and provides real
world examples of SoLo Powered Athletes. It is also unique in that there’s no hype – just down-toearth, intelligent advice to improve your health, performance, and make you feel better.
6. Emotional Character
The SoLo brand is steady and sure, always reliable and safe. It is known to be on the leading edge of
its field, which is exciting. It is made by a small group of people with remarkably high standards, who
care about helping people. It makes you wonder why no other brand has ever offered you such a
smart, delicious alternative before.
SoLo Marketing Strategy – Building the Brand & Consumer Awareness
Due to the high cost of effective advertising campaigns, there will be little or no traditional advertising
(radio, TV, print) during the first year of this strategic plan. With the award winning taste, continually
growing athlete endorsement, and the clear clinical validation of the performance benefits of the SoLo
product line, it is clear that the best way to build consumer awareness and loyalty is to reach out, inform and
promote trial at the consumer level. SoLo will accomplish this through the following investment:
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Solo Gi Nutrition Initial Private Offering
Budget: 2 Year Expenditure of $1,795,479
Marketing Categories
Ad Words
Internet Marketing
Other
Miscellaneous
In-Store Visual Promos
Media Relations
Trade Publication Ads
Event Sponsorships
Endorsements
Newsletter
Consumer Magazine
Ads
Demo Funds
Co-Op Advertising
Trade Advertising
Samples
Total Marketing
Yr 1Q1
$19,000
Yr 1-Q2
Yr 1-Q3
Yr 1-Q4
Yr 2-Q1
Yr 2-Q2
Yr 2-Q3
Yr 2-Q4
$30,000
$30,000
$30,000
$30,000
$25,000
$15,000
$19,000
$3,000
$0
$1,000
$2,900
$1,000
$0
$0
$400
$18,000
$7,000
$6,000
$30,000
$3,000
$6,000
$7,500
$2,500
$18,000
$15,000
$20,000
$30,000
$3,000
$11,000
$12,000
$3,000
$18,000
$20,000
$11,000
$36,000
$3,000
$15,000
$16,500
$3,000
$18,000
$30,000
$15,000
$39,000
$3,000
$15,000
$24,000
$3,000
$15,000
$21,000
$15,000
$42,000
$3,000
$13,000
$27,000
$3,000
$11,000
$19,000
$17,500
$36,000
$3,000
$9,000
$29,000
$3,000
$17,000
$30,000
$22,500
$45,000
$12,000
$22,500
$50,000
$3,000
$0
$1,337
$2,337
$1,316
$3,000
$35,289
$3,000
$1,249
$3,496
$1,914
$9,700
$129,359
$11,000
$1,346
$4,726
$2,575
$14,850
$176,498
$15,000
$1,845
$6,121
$3,712
$22,300
$201,477
$18,000
$2,899
$9,131
$6,357
$36,250
$249,637
$21,000
$4,787
$15,705
$12,464
$60,500
$278,456
$16,000
$6,464
$21,490
$17,916
$88,500
$292,869
$25,000
$8,866
$29,088
$24,939
$123,000
$431,892
See Schedule E: SoLo Marketing Plan for detailed explanation of marketing categories above.
THE COMPETITIVE ENVIRONMENT
Competitors
The mainstream energy bar category is crowded with competitors ranging from small niche providers to
industry giants including Kraft, Kellogg’s and Nestle. In general, the major brands compete primarily on broad
distribution (convenience) and price. The products themselves offer little actual benefit to the user and fall
short on taste. Even so, it can be difficult for small companies with limited resources to compete with these
well-know brands which are supported by vast marketing initiatives and aggressive promotions. Historically,
however, there is strong precedent for the emergence of specialized brands with products that meet the
needs of target consumers by providing genuine benefit, great taste and adequate convenience. Consumers
have choices and savvy consumers will choose the brands and products that best meet their needs. Ironically,
the presence of formidable competitors such as Balance Bar and Power Bar creates a barrier to entry for all
emerging companies that don’t have a strong value proposition. SoLo has an immensely strong value
proposition and is therefore poised to capture a significant share of the mainstream energy bar market and
benefit from the competition-thwarting impact of existing national brands.
SoLo Competitive Advantages and Barriers to Entry
SoLo brings innovation and differentiation to a crowded bar category. SoLo has a window of opportunity to be
the leading glycemic index-based energy bar because the food industry at-large has not designed its products
to be Low GI. SoLo’s competitive advantages as best-in-class bars and award winning taste are difficult to
replicate, and early market entry has provided valuable consumer insights.
SoLo’s patent-pending platform technology resulting from over a decade of research and development,
clinical validation and participation in 5 major government and university studies, superior taste, genuine
nutritional benefit and marketing expertise all add up to SoLo being in an excellent position to become a
significant competitor in this category.
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Solo Gi Nutrition Initial Private Offering
To support their marketing programs and discount pricing, the national brands must compromise the integrity
of their products. Most contain refined sugars which cause the detrimental “bounce and crash” effect when
consumed, or the combination of sugar alcohols and artificial sweeteners which causes unpleasant gastric
distress – the last things someone wants who’s seeking a pick me up.
SoLo Competitive Strengths
Leadership and Early Market Entry
Endorsements, teams and athletes
Superior Taste
Superior Nutrition
Scientific and Clinical Support
Management: Sales and marketing expertise
How SoLo Compares to its Top Competition
SoLo Bars provide the perfect addition to an athlete’s nutritional game plan. True to the original design of
the bars, the unique low glycemic profile combines quality ingredients with balanced nutrition, allowing
active individuals to achieve their fitness goals through SoLo’s Controlled Energy Response™ technology.
While other bars may offer a quick boost up-front, they were not designed to provide long-term energy and
pale in comparison to SoLo’s sustained fuel delivery, all-natural ingredient profile, high performance
nutrition, and award-winning taste.
Below is a brief comparative analysis of SoLo Bars vs. the top 10 contenders in the energy and nutrition
bar category.
Balance Bar Original has a nutritional balance similar to SoLo but trails far behind in ingredient quality by
having high fructose corn syrup, sugar and high maltose corn syrup as 3 of the top 4 ingredients within the
blend. SoLo’s ingredients are of the highest quality - and least refined as possible; nourishing the body from
the inside out. SoLo also wins on taste as it was preferred over Balance Bar 72% of the time in independent
taste testing.
Clif Bar is known to be high GI, and considered to be a true “energy” bar as it contains high levels of
carbohydrates for instant energy, but does not have the protein and fat to help slow down the digestive
process needed to sustain and prolong the energy release over long periods of time. SoLo Bar’s University
validated low glycemic profile and nutritional balance allows for a slow and steady release of fuel to working
muscles and the additional protein will also aid in muscle protein regeneration and recovery.
Detour Bar takes pride in having high amounts of whey protein – 17 grams per 50 g serving, and for having an
award-winning candy-bar taste. The protein may be beneficial, but the ingredient composition is likely the
reason for the award-winning taste due to the high levels of high fructose corn syrup, corn syrup, artificial
sweetener, sugar alcohols, partially hydrogenated soybean oil, and artificial sweetener. SoLo Bars also have
an award-winning taste but have a much better nutritional balance and contain only natural ingredients with
no sugar alcohols, high fructose corn syrup, or hydrogenated oils. SoLo also has 10% of the Dietary Reference
Intake (DRI) for 24 vitamins & minerals in each bar, whereas Detour has no additional fortification. SoLo’s
quality speaks for itself.
Gatorade Energy Bar is criticized for the lack of “substance” within the bar; being described as a “crispy rice
treat” type of bar with substandard taste and texture; while having no added vitamins and minerals and high
levels of sodium as compared to SoLo and other bars on the market. SoLo Bar’s award-winning taste,
significantly lower sodium content, and 24 added vitamins and minerals contribute to the daily total of
nutrients, aid in muscle regeneration and recovery, and keep athletes coming back for more.
LARABAR comprises a blend of unsweetened fruits, nuts and spices. LARABAR is unique bar in its’ own right
but not optimum for athletic pursuits due to the higher amount of fiber (5 grams) and fat (13 grams), and
lower amount of protein (5 grams). Comparatively, the Chocolate Charger SoLo Bar provides a better
Page 11
Solo Gi Nutrition Initial Private Offering
nutritional balance for athletes and active individuals with 11 grams of protein, 26 grams of carbohydrates, 4
grams of fiber and 7 grams of fat – making it easier to digest, and release the energy required by the body
during physical activity.
Luna Bar was designed for women’s nutrition needs and not as an energy-sustaining bar. They also differ
greatly from SoLo in terms of texture and organoleptic profile as the main ingredients are soy crisps and rice
crisps, which makes Luna more of an airy, crispy bar. SoLo’s premise is in providing sustained energy that
lasts, resulting from the low glycemic profile and nutritional balance. The texture profile is soft and chewy,
making them easy to eat and digest.
PowerBar Performance was formulated to energize the body by helping to provide the energy that muscles
need. Comprising more than 75% of the calories from carbohydrate alone, it lacks fat and protein to assist
with slowing down the energy release and sparing what is needed for the later stages of exercise. SoLo’s low
glycemic profile and superior nutritional balance allow energy to be released up-front, but also assist with
sparing what is needed for later, and avoiding glycogen utilization at the same time. SoLo also wins on taste
as it was preferred over PowerBar 88% of the time in independent taste testing.
PowerBar Pria was designed to be an indulgent snack only, and not a bar for energy performance value. The
bar has a respectable nutritional balance with the exception of the saturated fat, with 4.5 grams per 50 g
serving - comprising 21% of the calories and 90% of the fat within the bar. SoLo Bars were designed to be low
glycemic, provide sustained energy, and enjoyed as an indulgent snack; and they have a better nutritional
balance with only 13.5% of the calories coming from saturated fat.
Promax Energy Bar contains comparable protein and carbohydrates to SoLo but falls extremely short on fiber
and fat, both of which assist with slowing down the release of energy and provide satiety. Promax also
contains a high content of refined sugars with corn syrup, high fructose, and sugar being 3 of the first 4
ingredients within the bar. Consequently, the energy will be released very quickly and used up long before it
is needed. SoLo Bars contain only low glycemic and less refined carbohydrate sources, along with a good
balance of protein, fat and fiber to slow down the digestive process, thereby providing a slow and sustained
release of energy during activity.
Snickers Marathon Energy Bar has an acceptable nutritional balance but seems to be a “spin-off” of the
original candy bar, having artificial flavor and a high content of refined sugars such as corn syrup, high
fructose corn syrup and sugar within the top ingredients in the bar. SoLo Bars are far superior to Snickers
Marathon as they contain only natural, minimally processed ingredients; have half the amount of sodium; less
sugar overall; and more essential nutrients (24 vs. 16).
For a detailed competitive comparison between SoLo and major competitors, please see Schedule C.
Testimonials
Elite trainers and athletes alike are talking about their love for SoLo. To see what they are saying, please see
Schedule B.
SOLO ATHLETES
A cornerstone of SoLo’s success and optimism for the future has been the adoption
of and enthusiasm for the bars from elite professional athletes and collegiate
teams. What started off as test with the Orlando Magic, has catapulted SoLo into a
phenomena in the professional and collegiate team sports world. The strength and
conditioning coaches love SoLo’s all-natural ingredient profile, balanced nutrition,
and its clinically validated Controlled Energy Response™ technology. Elite athletes
from various disciplines have chosen SoLo to help them push their limits and excel
to the podium. The company has formed great relationships with several National
Basketball Association (NBA) trainers who are advocating SoLo on a daily basis.
To see a list of teams and athletes using SoLo products, please see Schedule A.
Page 12
Solo Gi Nutrition Initial Private Offering
MANAGEMENT
Solo Management Team
Saul Katz: President, CEO and board member, founded New Era Nutrition in 1989, and is considered a pioneer
in the functional food and nutraceutical industry. Under the direction of Mr. Katz, New Era develops
proprietary technology platforms that have resulted in the market introduction of numerous science-based
functional food products (primarily food bars). He led New Era in the establishment of research collaborations
with leading scientific institutions, and technology licensing agreements with major U.S. firms. Prior to
founding New Era, Mr. Katz was Vice President and General Counsel for 10 years of the Triple Five Group of
Companies (developers of West Edmonton Mall and the Mall of America). Saul has two law degrees, Common
Law (79) and Civil Law (78), from the University of Ottawa and an undergraduate degree from McGill
University (75).
Kevin Dalrymple: Vice President Sales & Marketing, bringing 15 years of diverse food industry experience to
Solo GI. Prior to Solo GI, he was V.P. Sales & Marketing for Eat Well Be Well Foods and a co-founder of
Carbsense Foods in 2001 where he served as architect of the Carbsense brand and a sales and distribution
network that spanned 18 countries. He has an accomplished history of launching products into all food
channels including key accounts such as Wal-Mart, Target, Rite Aid, Kroger, Safeway, Albertsons, Wild Oats,
and Whole Foods. He began his career with Durkee-French Foods where he worked in various leadership
capacities, including operations, quality assurance, IT, and sales and marketing. There he worked with such
recognizable consumer brands including Durkee, French’s, Fleischmann’s, Tones and Spice Islands. Dalrymple
holds a Bachelor of Science degree in Political Science from Muhlenberg College.
Scientific Advisory Committee
Continuing in the vein of pioneering R&D and product excellence, New Era/SoLo has attracted world-class
experts in endocrinology, obesity and nutrition with a focus on Low GI.
Dr. Tapan Basu (Chair); senior science advisor to New Era since 1991; Professor Emeritus of Nutrition,
University of Alberta; Past President of the International College of Nutrition; recipient of many awards and
author of 160 research publications and six books.
Dr. David Lau; President of Obesity Canada, Professor of Medicine, Biochemistry, and Molecular Biology, Chair
of the Diabetes and Endocrine Research Group University of Calgary.
Dr. Arya Sharma; Science Director of the Canadian Obesity Network; Canada Research Chair in Cardiovascular
Obesity Research, and recently Medical Director for Capital Health's Weight Wise Program.
Dr. Richard Lewanczuk; Regional Medical Director for Capital Health for Chronic Disease Management, past
Director of the Division of Endocrinology and Metabolism at the University of Alberta, Past-President of the
Canadian Hypertension Society.
Anthony Almada; Founder of ImagiNutrition Inc., a nutritional technology company focusing on dietary
supplements, nutraceuticals, functional beverages and cosmeceuticals. Mr. Almada
was the Co-Founder and President of Experimental and Applied Sciences (EAS), a leading sports and nutrition
company. He has authored numerous publications and presentations. Director of New Era Nutrition an
affiliated company of SoLo Gi Nutrition.
Page 13
Solo Gi Nutrition Initial Private Offering
FINANCIALS
Financial Projections
The following forecast is based on completion of a US$2,000,000 financing in August 2008.
To see the SoLo forecast 5-year income statement summary please see Schedule D
Use of Funds
SoLo has little operational overhead with the large majority of proceeds allocated to sales, marketing and the
building of required inventory. The Company has developed a comprehensive and strategic financial growth
model which is available for review upon request.
SoLo’s Cost of goods sold (COGS) as a percentage of Gross Revenue will continue to decline due to
economies of scale in manufacturing, transportation and storage, reducing from 55% for Year 1, to
49% in Year 2 and 42% by Year 5.
Sales & Marketing expenditures will be 108% of Gross Revenues in Year 1 of this plan declining to 39%
in Year 2 and settling in at 20-24% in Years 3, 4 and 5.
General and Administrative expenditures will remain controlled as the SoLo will maintain a
minimalist infrastructure. G & A expenditures will be 20% of Gross Revenues in Year 1 of this plan,
but the percentage will decrease significantly in Year 2 (5%) and settle in permanently at about 3%.
CONTACT
Saul Katz, President & CEO
Solo GI Nutrition Inc.
#3 14004 102A avenue
Edmonton, AB
Canada T5N0P7
Office: 250-448-0483
Cell: 780-990-9841
skatz@solo-gi.com
www.solo-gi.com
Advisory – Forward-looking Statements
This document contains statements that may constitute “forward-looking statements” within the meaning of
applicable securities legislation. Theses statements include, among others, statements regarding current and
future business strategy or expectations, beliefs, plans, goals, objectives, assumptions or statements about
future events or performance. By their nature, forward looking statements are subject to numerous risks and
uncertainties, some of which are beyond the Corporation's control, including the impact of general economic
conditions, industry conditions, competition from other industry participants, lack of availability of qualified
personnel or management and ability to access sufficient capital from internal and external sources. You are
cautioned that the assumptions used in the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on
forward looking statements. Actual results, performance or achievement could differ materially from those
expressed in, or implied by any forward looking statements in this presentation, and accordingly, no
assurance can be given that any of the events anticipated by the forward looking statements will transpire or
occur, or if any of them do so, what benefits the Corporation will derive there from. This Corporation
disclaims any intention or obligation to update or revise any forward looking statements, whether as a result
of new information, future events or otherwise. This Business Plan is solely the product and opinion of
Management.
Schedule A – Teams & Athletes Using SoLo
Solo Gi Nutrition Initial Private Offering
Look Who’s Using SoLo!
Professional Basketball Teams
Elite Athletes
San Antonio Spurs
Paul Tichelaar CAN (2008 Beijing Olympics - Triathlon)
Orlando Magic
Larsen Jensen USA (2008 Beijing Olympics - Swimming
Boston Celtics
Megan Metcalfe CAN (2008 Beijing Olympics – 5000m)
Miami Heat
Josh Simpson USA (Olympic Level Distance Runner)
Toronto Raptors
Annett Kamenz GER (Elite Ironman Triathlete)
Denver Nuggets
Adrian Lambert CAN (World Mountain Racing)
Sacramento Kings
Rebecca Stallwood CAN (Elite Cross Country Runner)
Cleveland Cavaliers
Mark Vollmer CAN (World Mountain Racing)
Indiana Pacers
Nathaniel Miller CAN (Canadian Water Polo Team)
Washington Wizards
Matt Norminton CAN (Marathon)
Atlanta Hawks
Keith MacCullough CAN (Paragliding - Ranked #1 in Canada)
Dallas Mavericks
MLB (Major League Baseball)
NHL (National Hockey League)
Detroit Tigers
Calgary Flames
Toronto Maple Leafs
Minor League Baseball
Fort Erie Seawolves
WHL (Western Hockey League)
Toledo Mud Hens
Saskatoon Blades
Lakeland Flying Tigers
Vancouver Giants
West Michigan Whitecaps
Oneonta Tigers
AHL (American Hockey League)
Manitoba Moose
NCAA Athletic Departments
University of Miami
QMJHL (Quebec Major Junior Hockey League)
Boston University
Acadie-Bathurst Titan
Northeastern University
West Virginia
CFL (Canadian Football League)
Syracuse University
Winnipeg Blue Bombers
Florida State
Boston College
Duke University
Georgia Tech
North Carolina State
Schedule B – SoLo Powered Athlete Testimonials
Solo Gi Nutrition Initial Private Offering
SoLo Powered Athlete Testimonials
“The road to the Olympics has involved long bike rides, endless laps in the pool, and runs that have left me
shaking. Through all of this, nutrition is vital to my success and I am assisted by SoLo energy bars. SoLo is the
only bar that I have found with no sugar alcohols, allowing me to digest easily and feel great as I drive for the
finish line – with gold on my mind!”
Paul Tichelaar CAN, Triathlete: Canadian Olympic Triathlon Team Member for 2008 Beijing Olympics
“On August 19th I will line up for the women’s 5km event with the best in the world at the 2008 Olympic
Games. SoLo has been track-side with me this past year and aside from the great taste, the bars give me a
boost of energy on long runs when my body naturally wants to slow down. SoLo will be making the trip with
me to the Olympics.”
Megan Metcalfe CAN, Distance Runner: Representing Canada in the 5000-meter run at the 2008 Beijing
Olympics
“The San Antonio Spurs, 2007 World Champions, have enjoyed the low glycemic benefits of the SoLo Bars for
their nutritional advantage and great taste. SoLo’s slow release carbohydrates give our players sustained
energy for four full quarters of basketball.”
Mike Brungardt, USA, Strength and Conditioning Coach, San Antonio Spurs
“In my training I find it is very important to replenish my body with good food and nutrition after hard
workouts to get the most out of my body and SoLo lets me do just that.“
Josh Simpson USA, Olympic Level Distance Runner
“SoLo has given our team an advantage. Our players eat them before games and at halftime to give them
sustained energy for four quarters of pro basketball and the ability to perform in the later stages of the
game.”
Joe Rogowski USA, Strength and Conditioning Trainer, Orlando Magic
“By constantly replacing essential nutrients which are depleted during exercising, the SoLo bars allow me to
train hard for hours. The bars taste great and I find them easy to digest on the bike.”
Annett Kamenz GER, Elite Ironman Triathlete and Marathon Runner
“SoLo bars are delicious, which is a rare treat in the energy/protein bar industry. You have to respect the
portion size, not too much and definitely not too little.”
Mark Vollmer CAN, World Mountain Racing Team Member
“I frequently eat SoLo Bars after hard workouts and I find that I recover better and faster!”
Rebecca Stallwood CAN, Elite Cross Country Runner
“The energy from SoLo in the second half of races is one of the reasons that I can dig deep and achieve my
best efforts. Incredible tasting SoLo is my fuel for excellence.”
Adrian Lambert CAN, World Mountain Racing Competitor, Canadian Cross Country Team Member
“Finding a bar with the right carb-protein balance is difficult, but even worse is trying to find one that
actually tastes good enough to eat on a regular basis.”
Nathaniel Miller CAN, National Water Polo Team Member
"SoLo sustains my energy levels for physical endurance and mental concentration, enabling me to achieve my
personal best performance.”
Keith MacCullough CAN, Canadian Paraglider Champion
Schedule C – SoLo Competitive Comparison Chart
Solo Gi Nutrition Initial Private Offering
Schedule D – Forecast Quarterly Income Statement Quarterly, Years 1 and 2
Forecast Quarterly Income Statement Quarterly, Year 1
Gross Sales
Returns & Allowances
Net Revenue
$
$
$
Cost Of Goods Sold
$
Gross Profit
$
Operating Expenses:
Operating Overhead
$
Sales & Marketing
$
Product Development
$
General & Administration
$
Total Operating Expenses
$
Operating Income (Expense)
$
Q1
158,712.71 $
(25,827.00) $
132,885.71 $
Q2
216,465.05 $
(11,648.91) $
204,816.14 $
Year 1
Q3
368,188.00 $
(8,586.09) $
359,601.91 $
Q4
Total Year 1
382,634.35 $ 1,126,000.10
(10,757.78) $
(56,819.78)
371,876.57 $ 1,069,180.32
93,329.20 $
58.8%
39,556.50 $
24.9%
126,235.01 $
58.3%
78,581.13 $
36.3%
198,599.95 $
53.9%
161,001.96 $
43.7%
198,493.45 $
51.9%
173,383.12 $
45.3%
$16,698.00
7.7%
312,031.90
144.1%
15,300.00
7.1%
50,388.00
23.3%
394,417.90
$18,366.00
5.0%
348,524.29
94.7%
15,300.00
4.2%
67,318.00
18.3%
449,508.29
$19,200.00
5.0%
440,339.43
115.1%
15,300.00
4.0%
74,388.00
19.4%
549,227.43
8,366.00
5.3%
118,357.31
74.6%
300.00
0.2%
36,088.00
22.7%
163,111.31
$
$
$
$
(123,554.80) $
$
$
$
$
(315,836.76) $
$
$
$
$
(288,506.33) $
$
$
$
$
$
616,657.61
54.8%
452,522.72
40.2%
62,630.00
5.6%
1,219,252.92
108.3%
46,200.00
4.1%
228,182.00
20.3%
1,556,264.92
(375,844.31) $ (1,103,742.21)
Forecast Quarterly Income Statement Quarterly, Year 2
Gross Sales
Returns & Allowances
Net Revenue
$
$
$
Cost Of Goods Sold
$
Gross Profit
$
Operating Expenses:
Operating Overhead
Sales & Marketing
$
Product Development
$
General & Administration
$
Total Operating Expenses
$
Operating Income (Expense)
$
Q1
654,306.66 $
(15,226.69) $
639,079.97 $
Q2
1,305,454.06 $
(25,013.92) $
1,280,440.13 $
Year 2
Q3
1,850,004.29 $
(29,274.89) $
1,820,729.40 $
347,242.17 $
53.1%
291,837.80 $
44.6%
679,850.26 $
52.1%
600,589.87 $
46.0%
961,648.30 $
52.0%
859,081.11 $
46.4%
$22,200.00
3.4%
505,130.89
77.2%
15,300.00
2.3%
76,248.00
11.7%
618,878.89
$22,200.00
1.7%
587,927.02
45.0%
15,300.00
1.2%
76,248.00
5.8%
701,675.02
$23,200.00
1.3%
558,967.84
30.2%
15,300.00
0.8%
76,248.00
4.1%
673,715.84
$
$
$
$
(327,041.08) $
$
$
$
$
(101,085.14) $
185,365.26
Q4
Total Year 2
2,366,695.32 $
6,176,460.33
(41,694.84) $
(111,210.34)
2,325,000.48 $
6,065,249.99
1,051,149.77 $
44.4%
1,273,850.71 $
53.8%
3,039,890.50
49.2%
3,025,359.49
49.0%
$
$
$25,200.00
1.1%
737,241.96
31.2%
15,300.00
0.6%
76,348.00
3.2%
854,089.96
$
92,800.00
1.5%
2,389,267.71
38.7%
61,200.00
1.0%
305,092.00
4.9%
2,848,359.71
$
419,760.75
$
176,999.79
$
$
$
$
$
$
Schedule D – Forecast Quarterly Income Statement Quarterly, Years 3-5
Forecast Quarterly Income Statement Quarterly, Years 3-5
Year 3
Gross Sales
Returns & Allowances
Net Revenue
Cost Of Goods Sold
Gross Profit
Operating Expenses:
Operating Overhead
$9,125,000.00
$136,875.00
$8,988,125.00
Year 4
Year 5
$14,425,000.00
$216,375.00
$14,208,625.00
$19,950,000.00
$299,250.00
$19,650,750.00
$4,197,500.00
$6,347,000.00
$8,379,000.00
46.0%
44.0%
42.0%
$ 4,790,625.00 $ 7,861,625.00 $ 11,271,750.00
46%
44%
42%
Total Operating Expenses
$136,875.00
$158,675.00
$187,530.00
1.5%
1.1%
0.9%
$2,190,000.00
$3,029,250.00
$3,990,000.00
24.0%
21.0%
20.0%
$91,250.00
$142,086.25
$196,507.50
1.0%
1.0%
1.0%
$346,750.00
$432,750.00
$558,600.00
3.8%
3.0%
2.8%
$ 2,764,875.00 $ 3,762,761.25 $ 4,932,637.50
Operating Income (Expense)
$ 2,025,750.00
Sales & Marketing
Product Development
General & Administration
$ 4,098,863.75
$
6,339,112.50
Schedule E – SoLo Detailed Marketing Plan
Solo Gi Nutrition Initial Private Offering
SoLo Gi Nutrition, Inc. – Marketing Plan Detail
Due to the high cost of effective advertising campaigns, there will be little or no traditional advertising
(radio, TV, print) during the first year of this strategic plan. With the award winning taste, continually
growing athlete endorsement, and the clear clinical validation of the performance benefits of the SoLo
product line, it is clear that the best way to build consumer awareness and loyalty is to reach out, inform and
promote trial at the consumer level. SoLo will accomplish this through the following:
Budget: Two Year Expenditure of $1,795,479
Marketing Categories
Ad Words
Internet Marketing
Miscellaneous
In-Store Visual
Promos
Media Relations
Trade Publication Ads
Event Sponsorships
Endorsements
Newsletter
Consumer Magazine
Ads
Demo Funds
Co-Op Advertising
Trade Advertising
Samples
Total Marketing
Yr 1-Q1
Yr 1-Q2
Yr 1-Q3
Yr 1-Q4
Yr 2-Q1
Yr 2-Q2
Yr 2-Q3
Yr 2-Q4
$19,000
$3,000
$0
$30,000
$18,000
$7,000
$30,000
$18,000
$15,000
$30,000
$18,000
$20,000
$30,000
$18,000
$30,000
$25,000
$15,000
$21,000
$15,000
$11,000
$19,000
$19,000
$17,000
$30,000
$1,000
$2,900
$1,000
$0
$0
$400
$6,000
$30,000
$3,000
$6,000
$7,500
$2,500
$20,000
$30,000
$3,000
$11,000
$12,000
$3,000
$11,000
$36,000
$3,000
$15,000
$16,500
$3,000
$15,000
$39,000
$3,000
$15,000
$24,000
$3,000
$15,000
$42,000
$3,000
$13,000
$27,000
$3,000
$17,500
$36,000
$3,000
$9,000
$29,000
$3,000
$22,500
$45,000
$12,000
$22,500
$50,000
$3,000
$0
$1,337
$2,337
$1,316
$3,000
$35,289
$3,000
$1,249
$3,496
$1,914
$9,700
$129,359
$11,000
$1,346
$4,726
$2,575
$14,850
$176,498
$15,000
$1,845
$6,121
$3,712
$22,300
$201,477
$18,000
$2,899
$9,131
$6,357
$36,250
$249,637
$21,000
$4,787
$15,705
$12,464
$60,500
$278,456
$16,000
$6,464
$21,490
$17,916
$88,500
$292,869
$25,000
$8,866
$29,088
$24,939
$123,000
$431,892
Explanation of Key Marketing Categories:
Ad Words
The company operates comprehensive Google ad-word campaigns (pay per click) designed to generate
significant month-to-month targeted traffic increases to our Web site for search terms utilized by our
sports/fitness-minded consumers. Ad Words allow us to laser focus on the precise Internet user at the time
they are searching for something on the Internet that relates to the SoLo brand positioning. An example
would be a Google search for “nutrition and tennis”.
Schedule E – SoLo Detailed Marketing Plan
Solo Gi Nutrition Initial Private Offering
Internet Marketing
The SoLo-GI.com Web site will be continually and aggressively promoted to consumers, retailers, distributors,
trainers and coaches as the “go-to” destination site about performance nutrition information and education.
Specifically targeted “Resource Centers” engage visitors while at the same time provide opportunities for
them to view SoLo’s product offerings, learn about new products, SoLo athletes, and current promotions.
Users can also visit the “Where to Buy” page to purchase products online or find a store near them that
carries SoLo. Consumers will also be able to print coupons for use at retailers and/or conveniently purchase
SoLo through online partner stores (Amazon.com, Drugstore.com, Netrition.com, etc.).
The goal is to create an online, peer-to-peer community that allows visitors to share information, personal
stories, support, and hope. This will consumer loyalty will be leveraged through viral marketing campaigns
and unique promotional offers (i.e., coupons & special deals if they sign-up to receive the SoLo newsletter,
ability to forward information to others, affiliate sales, etc.). The company will also introduce an extensive
online advertising campaign and sponsorship program via targeted venues including specific sports oriented
sites as well as broader resources such as active lifestyle sites.
Monthly Email Newsletter
The company offers a monthly email newsletter that will includes performance nutrition information and
other articles that pertain to SoLo and sports performance in general. The newsletter initially targets key
marketplace professionals and will be an increasingly powerful tool for building customer loyalty.
Comprehensive Media/Public Relations Campaign
Consumer education will hinge on a platform that educates consumers on and how SoLo Bars benefit elite
athletes as well as all people who are engaged in active lifestyles, or interested in sustained energy
throughout the day.
The company requires a multi-tiered approach because of the tremendous fragmentation in today's media.
The proliferation of magazines, radio, Internet and television programming is a double-edged sword. On one
hand, it provides abundant placement opportunities for the SoLo message; on the other hand it is highly
inefficient to confidently reach the target audience with one tactic. Therefore, the best approach is a
combination of high-impact national and local print exposure, radio interviews, television appearances, as
well as “street marketing” impressions.
I. Consumer Education
A. National News Bureau
The heart and soul of the campaign resides in the contracted news bureau, which the company’s media
relations partner will organize and manage. This operation will be an extension of the work to date, and will
include proactive as well as reactive tactics. The goal is to push out relevant news related to SoLo products
and respond to media inquiries that will result as we build relationships for the SoLo Brand.
1. Media Kit
The media kit is a reference tool that will be used as a door-opener with national magazine editors, as a
handout at conventions/tradeshows and a story generator for print media. It not only shows reporters how to
work SoLo GI into their coverage, but helps cut down on reporter errors when covering SoLo and its products.
2. National Press Releases
Media across the country rely on the Web to quickly research trends and sources. News releases will be sent
out on a national news service wire, which will ensure SoLo’s place in cyberspace and the company name will
pop up regularly on reporters' radar. Our media relations company will reinforce this campaign with their
own customized distribution and follow-up with our media list.
3. Magazine Editor Outreach
Editors are lynchpins to the success of any PR/marketing campaign. We will design an editor outreach
program that will establish relationships with and regularly suggest stories to key editors on “SoLo Powered”
athletes, glycemic response, etc.
Schedule E – SoLo Detailed Marketing Plan
Solo Gi Nutrition Initial Private Offering
4. Small-market MAT Stories
MAT stories will be included in SoLo’s PR materials. These are “canned” stories the company can pay to have
distributed for use in smaller market newspapers. SoLo’s media relation’s company controls all copy, which
would center on a trend such as “How Controlled Energy Response can improve your performance” or a
specific local athlete who is using SoLo.
5. Expert Blogs
The fastest emerging trend in public relations is the news blog. SoLo’s President, Saul Katz has begun to
maintain a blog, www.low-glycemic.com. This will augment SoLo’s presence on the Web and will establish
SoLo as the preeminent authority on low glycemic foods and their benefits.
6. Spokesperson Selection
SoLo has an array of elite athletes currently using the bars. Once funded, SoLo will solidify agreements with
numerous endorsers to help lift consumer awareness and credibility in the sports fitness category.
II. Consumer Engagement
Because SoLo wins on taste, a vital component of the plan will be to generate sampling and product trial.
This goal will be achieved through a variety of outreach efforts. Most important among these is to align the
SoLo Brand with logical fitness organizations through cause-related marketing.
A. Targeted Sampling and Sponsorships
SoLo’s retailers will provide numerous opportunities for product sampling and promotion at various events
such as community walks, 5K/10K runs, health & wellness symposiums, etc.
B. Athletes as Endorsers
Americans are fascinated with athletes and their preferences. As such, SoLo has already secured numerous
affordable endorsements from Olympic bound athletes in sports such as Swimming, Triathlon, and Track.
SoLo is working towards having endorsers in each segment of sports activity.
C. Strategic Partnerships
SoLo will continually look to align with synergistic brands. This may include aligning with a company that
manufactures running shoes, an author on a book tour, and working closely with key national retailers on
fitness lifestyle related initiatives and events.
III. Program Management
A. Media Relations Partner
A project of this scope requires many resources, contacts, continuous communication and partnership. SoLo
will work with a leading media relations firm with expertise in this channel to assist us in managing and
executing the entire media/public relations campaign.
B. Publicity Tracking and Measurement
Publicity placements will be tracked by an outside clipping service.
C. Annual Planning
Public Relations should be viewed as a long-term strategy that builds a cumulative effect over time. As the
business grows and sales increase, the publicity effort will be enhanced over and above the first year plan as
well.
Consumer & Trade Shows
The company will participate in both consumer and trade shows throughout the year, promoting the brand
before targeted audiences and providing the opportunity to interact with prospective customers, offer
product samples and explain the value proposition. An example is the recent NBA Trainers Association Annual
Meeting that SoLo recently attended. With 12 NBA teams already purchasing SoLo, Solo was able to further
develop its NBA prospect list and now has 10 additional NBA teams interested and evaluating the product.
Schedule E – SoLo Detailed Marketing Plan
Solo Gi Nutrition Initial Private Offering
Events
SoLo will sponsor very targeted events and athletes in targeted venues to promote the brand and help
consumers recognize the value proposition and benefits that SoLo products provide. Events will provide SoLo
an ideal sampling opportunity and take advantage of SoLo’s award-winning taste.
Sales & Promotions at Retail
The company’s objective is to promote consumer trial and awareness. These programs also provide the
retailer assurances that SoLo is fully behind its brand and will strengthen relationships at the retail level.
This will eventually lead to premium shelf placement and retailer funded promotions.
Coupons
SoLo will begin to drive consumers to visit solo-gi.com and print valuable coupons good toward first time and
repeat purchases of SoLo. Because the coupon program is managed on the Web site, it enables ongoing
aggressive promotions. Coupons will also be included at events, at retailer demo opportunities, and
continuously promoted through SoLo’s Internet marketing campaigns and on SoLo’s Web site.
Quarterly Pricing Promotions
SoLo offers 10-15% off pricing promotions once per quarter to continually promote consumer trial. Pricing
promotions are an effective method of garnering trial at certain retail outlets.
Co-Op Advertising
Key retailers are offered a 2-4% ad accrual program. This allows for a percentage of a retailer’s purchases to
be banked and utilized for internal marketing from time to time. Marketing activities are usually coordinated
with the months that pricing promotions are in affect.
In-Store Visual Materials
SoLo has developed a point of sale consumer flyer that concisely covers the benefits, the science and the
elite athletes who are currently using SoLo to improve performance and recovery. Consumer flyers will be
sent to retailers who want to provide consumers an educational support piece or will be used in tandem with
demo opportunities. We have also had several requests for a small poster that can be utilized behind
concession stands, in windows or on the walls of retailers to help bring attention to SoLo and its value
proposition.
Consumer Magazine Ads
Beginning in Q4 Year 1, SoLo will begin to explore affordable very targeted consumer focused magazine ads in
publications such as Mountain Biking, Cycling, Triathlete, Backpacking, etc. To maximize these efforts, this
will be rolled out according to the sports areas where we have the best distribution and the best athlete
endorsements. Spending in this category will incrementally grow over time as our brand begins to get
traction and revenue can support a greater investment in this area.