Feast Creative Foods introduction

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Introduction I May 2019
2
of
kind
is a strategic investment company
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We bring innovative food startups to China, the
worlds biggest
consumer market
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The Food Industry is Changing
For generations, consumers have been deluded by
Big Food and they have started to realise
that. The Fruit Loops of the world are fast
loosing market share. And the past years have
seen a vast number of innovative food and
beverage startups offering more transparent,
more individualised and more nutritious
alternatives. Some industry observers already
refer to the food industry as "the new internet".
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China is Upgrading its
Consumption Patterns
The rise of the middle class, the increase of
products available on the market, coupled with a
lack of confidence in local food supply chains
have led to major changes in the grocery shopping
landscape. China has quickly become the biggest
marketplace for nearly all FMCG categories. Food
continues to secure a lion share of the overall
spending behaviour outperforming transportation,
the next ranked category, by a factor of 2x. By
2020, the Chinese online grocery market is set
to be worth over 280 billion. Providing enough
food at acceptable levels of quality and at an
affordable cost is shaping up to be one of
Chinas most challenging issues. And sales of
imported food will continue to grow at double
digits.
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Our Mission
An Unfair Advantage
Feast Creative Foods is a China-focused platform
investing in emerging food and beverage brands.
Our team has decades of experience in marketing,
e-commerce, media and China's food industry. And
we pulled our resources together to support
international FB startups in China like no
other concept. Our sole purpose and mission is
giving our partner startups the backing, budgets
and brainpower necessary for a successful
launch in China. We are their import agents,
community builders, marketing experts, brand
ambassadors, distributors, networkers, sales
managers, trade show representatives and their
own China office. Our goals are fully aligned. We
work completely transparent and we're just as
excited about new food concepts as you are.
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Documentation
Food product entering China
Bringing a Food Product to China If you are
launching a food product in China, there are
many stakeholders to handle in a complex
linguistic, cultural and regulatory environment.
Sanitary certificate issued
Inspection declaration
Label compliance
Registration
Customs declaration
Sample inspection and label auditing
Customs clearance
Tax payments
Customs inspection
Customs clearance
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Our Background
Annual Growth (CAGR) 81
Founded in 2009
Feast benefits from10 years of experience in
Chinas food beverage market via the
operations of its founding parent ESB Group its
subsidiaries (www.esb-foods.com).
gt100.000 tons annual turnover
Offices in Shanghai and Hefei
Visible market share
45 headcount

• ESB leverages Feast platform by providing key
  competencies in
• Logistics services
• Import customs clearance
• Inventory management
• China sales network experience
• Quality assurance

30 countries of origin
Large recurring customer base
7 categories (frozen foods, snacks)
Category expert (frozen)
gt 220 SKUs
Multiple sales channels
11 port destinations in China
gt140 plant numbers
gt100 suppliers
gt80 customs agencies
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4 Paths Lead to China
Importers distributors
Sales agents
Rep. office or direct sales
? ? ? full speed - entrepreneurial
Marketing support
-
-
-
There are many different ways of launching a
brand in China. Most larger FB companies would
opt for setting up an own organisation, building
it brick by brick and with huge resources, both
capital and time.
Alignment
-
limited
?
?
Transparency
-
-
Smaller companies usually work with agents or
distributors, but it can be a challenge finding
an agent who shares the same passion for
their products.
Speed
medium
faster
slow
Feast offers an entrepreneurial path into China.
We finance the expansion in exchange for an
equity stake in our partner brands. This way we
have skin in the game with our goals fully
aligned.
Overall risk
low
higher
max. risk
For startups theres no faster and no more
efficient way of entering China.
max. investment
Investment
medium
medium
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4 Phases of Vesting
Every brand needs a different China strategy and
every product will face different hurdles on the
way to the hearts and shopping baskets of the
Chinese consumers.
I
Initiation (1-3 months)
We vest upon an agreed valuation. Over 4 phases,
we develop and implement an individual launch
strategy for each partner brand with clear KPIs
and deliverables.

• Sign MoU
• Market study
• Focus groups and and product tastings
• China workshop together with brand owners
• Develop Chinese label
• Develop marketing and communication strategy
• First test order
• Sign vesting contract

II
Brand Launch (2 months)
? ?
? ?
? ? ? ?
First regular product shipment Hire brand
ambassador / sales manager Official brand
launch Launch social media channels
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III
Growth / Sales (6-9 months)
Activate marketing plan Grow sales network
Organise brand events Formulate initial business
case for evaluation and long-term cooperation
? ? ? ?
And One Common Goal The big advantage compared
to traditional distribution models is that our
goals are completely aligned and the brand
owners know exactly whats happening with their
product in China.
IV
Evaluation (1month)
Demonstration of sustainable business model in
the territory Sales projection after phase IV
?
?
The 4 phases also give us enough time to build
the trust necessary for a successful cooperation.
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The Feast Framework
Feast Holdings (Singapore)
Cooperation Vesting Agreement
Holds assets
The Cooperation Vesting Agreement Regulates
the equity investment targeting a minority stake
of 5-10 of ordinary shares by means of reverse
vesting.
Feast OpCo (China)
Operational execution, sales, marketing, brand
building
Buys goods
Vesting is triggered upon deliverables within the
4 distinctive phases over the initial engagement
period (typically 9-18 months) with a commitment
of payment-in-kind of up to US 500k per brand.
Brand
Distribution Agreement
The Distribution Agreement regulates the use of
intellectual property rights and commercial terms
for procurement.
Ships goods
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What We are Looking for

• We are looking for enthusiastic entrepreneurs
  with a vision and a mind-blowing product
  compatible with the demand in China's
  supermarkets, restaurants and online stores.
• We seek to partner with the best-in-class food
  innovators and management teams to help
  accelerate their international growth and boost
  their strategic value with a meaningful presence
  in the world's largest consumer market.
• We are looking for companies that
• turn the old food industry upside down
• are planet positive
• offer healthy, nutritious and sustainable
  products
• have a solid, diverse team
• have a clear growth strategy
• have existing products in the market

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Our Target Categories and Their Market Size in
China
All numbers in Billion CNY
Functional Food / Supplements
Breakfast Cereals
Snacks
Beverages
Baby Food
13 9,75 6,5 3,25
700 525 350 175
1100 825 550 275
20 15 10 5
300 225 150 75
0
0
0
0
0
2012 2014 2016
2012 2015 2018E 201020132016
2011 2014 2017 201020132016
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Portfolio
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Case Study (Pilot Case)
Total Sales vs China-Exports Channel Revenues
1
22500 16875 11250 5625 0
10 4 1
monthly total units sold monthly China-Exports
Ecommerce Distributor Other HoReCa Corporate
Retail
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61
Mar Jun Sep Dec Mar Jun Sep Dec Mar
Client Sources 3 1 2 Events Ads
Regional Distribution
Shanghai Jiangsu Zhejiang Xinjiang Shanxi
Beijing Tianjin Shandong Guangdong Hong Kong
One year after bringing Noveltea to China, the
Peoples Republic now accounts for 42 percent of
the companys global unit sales. If you are
interested in the details, ask us for our
Noveltea case study.
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41
Existing network Client refferal Freelance
sales Social media Other 45
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Trade show representatives
To be successful in China, its not enough to
list your product on Taobao. The typical
Chinese consumer requires 9 brand touch points
before making a purchase decision. Thats 4
more than in the most Western countries. For our
partner brands we are McKinsey China
China market representation
Shared office space
Import agents
Social media managers
Community builders
Distributors
Brand ambassadors
Event promoters
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Chinas Digital Customer Journey
Friends Family Inspiration
Offline Inspiration
Social Inspiration
Research
Purchase
Sharing
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Route-to-Market Partners

• Gourmet food and drink shop
• gt 3 million followers
• Regular content offering with dedicated editors,
  video producers, food science experts
  freelance writers
• 80s and 90s generation,
• 60 female

We have strategic partnerships with several of
the largest Chinese e-commerce platforms and
online retailers.
Penguin Guide, our preferred launch partner, has
so much social media pull, that their promotions
usually even have a measurable effect in the
brands own home market.

• Chinas premium online store
• 20 million followers on WeChat and over 3
  million daily video views
• Distributed in gt50 main
• channels online offline
• Customers mainly 70s and 80s generation,
• mainly male followers

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Founders Core Team
Rachel started her long career in retail at
industry giants such as PG and Carrefour where
she worked as a Purchasing Director.
Janis is a former journalist and entrepreneur
who has been living in Shanghai since 2002.
Food is his passion. Nicolas Stöckert Strategy
Benedikt joined ESB in 2012. He spent years as
a MD at tech startups and consulted mid- cap
companies as finance specialist.
Max is the founder and former CEO of Lazada,
the leading e-com platform in SE Asia. In 2016,
he sold the company to Alibaba.
Nic is a food entrepreneur who started his
China journey in 2005. His company ESB
provides key services to Feast. Benedikt
Stöckert Finance
Max Bittner Angel/Advisor
Rachel Han Operations
Janis Vougioukas CEO
April Wang Cindy Fan Lana Khovracheva Tom Su Monica Fan Rita Zhai Justin Jing Elyn Gao Summer Liu
Sales Director Creative Director Event Manager E-com Manager Event Manager E-com Manager Sales Manager Logistics Designer Analyst Administration
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Connect
Shanghai
Feast Creative Foods Ltd. shanghai_at_feast-china.com
RM 204, No.664 Xinhua Road Changning District,
Shanghai, 200052 PRC ????????????664? ?????????204
? ??200052
Munich
Feast Germany munich_at_feast-china.com ? GFEP
Family Equity Maximiliansplatz 15 80333 Munich
Germany
Global
www.feast-china.com