ForwardLooking Statements

1
Forward-Looking Statements
1
2
Forward-Looking Statements

• This presentation contains certain
  forward-looking statements within the meaning of
  the federal securities laws. We make
  forward-looking statements which represent our
  expectations or beliefs about future events and
  financial performance. Forward-looking
  statements are identifiable by words such as
  "believe," "anticipate," "expect," "intend,"
  "plan," "will," "may" and other similar
  expressions. In addition, any statements that
  refer to expectations, projections or other
  characterizations of future events or
  circumstances are forward-looking statements.
  Forward-looking statements are subject to known
  and unknown risks and uncertainties, including
  those described in our filings with the
  Securities and Exchange Commission.
• In addition, actual results could differ
  materially from those suggested by the
  forward-looking statements, and therefore you
  should not place undue reliance on the
  forward-looking statements. We do not make any
  commitment to revise or update any
  forward-looking statements to reflect events or
  circumstances occurring or existing after the
  date of any forward-looking statement is made.

2
3

• Ron Wilson, President and CEO
• Joined SKNY December 2008
• 38 years of beverage industry experience
• Manufacturing, sales and delivery
• President and Chief Operating Officer of The
  Philadelphia Coca-Cola Bottling Company (Fourth
  largest Coca-Cola bottler in the country)
• Member - Beverage World Soft Drink Hall of Fame

3
4
Obesity Crisis in America

• There are 23.6 million children and adults in the
  US who have diabetes
• Since 1985 an Americans annual consumption of
  High Fructose Corn Syrup has gone from 45 lbs. to
  66 lbs.
• Switching to diet drinks (one a day) can save
  someone 1,000 calories a week, 52,000 calories a
  year adding up to 15 lbs. weight loss for the
  year
• Government intervention likely to increase
• Most public school districts have made
  regulations banning CSDs in schools
• Proposed tax on drinks with sugar in New York
  (18)

Source American Diabetes Association and New
York Times 2/10/2009 Omnivores Dilemma by
Michael Pollan Internal Data
5
Consumers are Responding

• The sales volume of regular (non diet) Coke
  Pepsi has declined each year since 2000 (-18
  from 2000 to 2007)
• Retailers are adding more shelf space for
  enhanced beverages
• Vitamin Water momentum was negatively impacted by
  Propel attack ad
• Sales of enhanced beverages have been growing
• The medicine cabinet is moving to the
  refrigerator
• Coke Zero has been a huge success because of
  taste and Zero calories (450 million cases sold
  since 2005, 192 oz case equivalent)

Source Beverage Digest/Fact Book 2008 Coca Cola
Sales Presentation
6
Skinny Water is the Coke Zero of the Enhanced
Beverage Category

• Tastes great!
• Has little or no diet aftertaste
• Great functional benefits
• Weight management is an added benefit

7
Functional Beverages on the Rise

7
Source Deutsche Bank Beverage Research May 2007
8
Beverage Digest Reports 4/25/2008

• All Channel Enhanced and Flavored Water 2007
• Glaceau - 100.2
• Sobe Life Water - 140.0
• In 2007, the flavored waters lost steam, and the
  enhanced waters products fortified mainly with
  vitamins -- posted strong growth.
• The strongest growth came from the hot-fill
  enhanced waters Glaceau and SoBe Life Water.
  Each posted volume growth of more than 100.
• Though it is clear to most observers that the
  hot-fill products will continue to grow, future
  prospects for the cold-fill products are less
  clear at this juncture.

8
Source Beverage Digest Vol 52 No. 5, April 2008
9
ZERO, ZERO, ZERO, ZERO

ZERO,
ZERO,
ZERO
ZERO,
9
10
(No Transcript)
11
(No Transcript)
12
The Power of the Skinny Brand

• Skinny is the aspiration of many women
• Skinny Water clearly demonstrates the benefits
  of the drink
• Skinny Water is the first zero calorie enhanced
  beverage to market
• Great Taste is the key to success
• Weight Management function distinguishes Skinny
  from other products in Marketplace
• Large Umbrella of Trademarks (Water, Tea, Java,
  Smoothie)

13
2009 Objectives

• Increase number of Distributors from 27 to 75
• Increase Retail Locations Serviced by our
  Distributors from 35,000 to 100,000
• Expand Chain Store Authorizations
• Introduce 6 New Flavors (3 new Skinny Waters, 3
  new Skinny Teas)
• Introduce a 12 Pack, 4 Pack, Variety Pack
• Develop Strategic Partnership with Distributors
• Increase Workforce from 15 to 25

14
Direct Store Delivery
Quality Distributors

• Red Bull
• Anheuser-Busch
• Dr. Pepper
• Canada Dry
• Snapple

• Better execution
• Leveraged Resources
• Entrepreneurial Partners
• Vacuum Created by Coke and Pepsi

15
Channel Authorizations
16
Skinny in the Market

• Building the brand on the floor
• In store marketing
• Price promotions
• Store circular advertising
• Sweepstakes
• On Shelf promotion
• Custom Racks
• In Store sampling

17
Skinny in Warm and Cold Section
18
National Advertising Support People Style
(Featured November 21) Circulation 3.6 million
people
19
Hollywood Outreach Campaign
20
Public Relations
20
21
Market Launch Events
22
Advertising Support
Bus Stop
Billboard
Phillies Victory Parade - Aerial banner
23
St. Paul Saints Skinny Water Park Naming Rights
24
Sampling
25
Skinny Teas

• Developing with new all natural sweetener,
  Stevia
• Green, White and Black tea fruit blends
• Functional beverages Focus, Liquid Yoga and
  Beauty

26
www.skinnywater.com
Web Site

• Valuable tool for communicating with consumers
  and shareholders
• Composed of the following modules
• Social networking
• Blogs
• Links to retailers
• Product Information
• Investors Relations

27
Attractive Business Model

• Scale creates buying power and operating leverage

• No manufacturing overhead
• Minimal capital requirements

• Outsourced Manufacturing

• Outsourced R D(Wild Flavors)

• Minimal Headcount

• Outsource Distribution

• No Trucks
• No Warehouses

Distributors can be quickly brought on board
27
28
Investment Considerations

• Well positioned in the fastest growing segment of
  the beverage industry
• Powerful family of brands
• ZERO (calories, sugar, carbs, sodium)
  positioning provides significant competitive
  advantage
• Successful execution to date, ahead of typical
  industry adoption
• Acquisitions and distribution deals have left a
  vacuum in the market
• Scalable business model, allows rapid growth with
  minimal capital expenditure or overhead
  requirements
• Experienced management team

28
29
Selected Beverage Acquisitions Investments
New Age Drinks
29
Source Stifel Nicolaus
30
(No Transcript)
31
Thank You