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CORPORATE PRESENTATION
Q3 / 2019
Modern Lifestyle Products
©2019 FYTO BRANDS International 2
Information contained in this presentation is the property of FYTO BRANDS International Inc. (“FYTO BRANDS International” or the “Company”). This presentation does not constitute, or form part
of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company, nor shall it, or the fact of its communication, form the basis of, or
be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect to such securities. The communication of this presentation in or to
persons in certain jurisdictions may be restricted by law and persons who may receive communication of this presentation should inform themselves about, and observe, any such restrictions in
advance of communication to them of this presentation. No securities exchange or affiliated service provider has reviewed or accepts responsibility for the adequacy or accuracy of the content of
this presentation.
The material contained in this presentation is provided solely for your general knowledge and is not intended to be a comprehensive review of all matters and developments concerning
FYTO BRANDS International or its affiliates. The Company has taken all reasonable care in producing the information contained in this presentation. This information may contain technical or other
inaccuracies, omissions, or typographical errors, for which FYTO BRANDS International assumes no responsibility. FYTO BRANDS International makes no representation or warranty regarding,
and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or information in this presentation.
To the extent permitted by law, FYTO BRANDS International and its employees, agents, affiliates and consultants exclude all liability for any loss or damage arising from the use of, or reliance on,
any such information, whether or not caused by any negligent act or omission. Statements in this presentation other than purely historical information, including statements relating to
FYTO BRANDS International future plans, objectives or expected results, constitute forward-looking statements within the meaning of the U.S. federal and Canadian securities laws. Forward-
looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in FYTO BRANDS International business, including risks inherent in early to
development stage start-up ventures. These may include the state of the legal cannabis sector, global market conditions, the ability of the Company to identify and acquire key assets, the nature of
potential business acquisitions, the ability of the Company to secure product distribution agreements, capital expenditures, successful development of technologies, products and trademarks,
currency fluctuations, government policy and regulation, geopolitical uncertainty and environmental regulation. As a result, actual results may vary materially from those described in the forward-
looking statements. FYTO BRANDS International disclaims any obligation to update any forward-looking statements.
This presentation was prepared to assist interested parties in making their own assessment of FYTO BRANDS International and its business plans and does not purport to contain all of the
information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in
this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management’s current knowledge and no representation or warranty is
made as to their accuracy and/or reliability.
©2019 FYTO BRANDS International 3
H I G H L I G H T SFYTO BRANDS INTERNATIONAL was founded to
become the global leader in the development, marketing
and distribution of scientifically formulated, CBD-infused
functional beverages, wellness and dietary supplements.B U S I N E S S M O D E L :
Lifestyle Branded Products distributed B2B Wholesale & B2C Retail.
Currently generating recurring revenues.
M U L T I - D I S T R I B U T I O N C H A N N E L S :
Beverages & Lifestyle products:
• Office Coffee Service (OCS) Operators distribute to workplace end-
users either directly or online.
• Distribution Network: wholesalers to retail operators,
• Online B2C.
F I R S T T O M A R K E T
Distributed beverages, wellness products and supplements initially
targeting corporate, institutional, and Consumer Package Goods
(CPG) markets.
O C S B E V E R A G E D I S T R I B U T I O N
Channel market through a network of OCS operators (there are
approximately 2,300 OCS operators throughout North America supplying
3.5 million breakrooms with access to 157 million employees*). *statista.com
R E T A I L D I S T R I B U T I O N
Wholesale distributers to retail consumers alongside brand recognition
marketing efforts.
O N L I N E D I S T R I B U T I O N
Available direct to consumers, as well as wholesale and retail markets
FYTO BRANDS INTERNATIONAL IS…
FOCUSED ON CBD infused product development and distribution. Our proprietary IP
innovation is consolidated under an integrated ‘house of brands’ marketing concept
using a dual channel sales strategy; selling into the Office Coffee Services (OCS)
sector plus mainstream retail & grocery channels.
ALREADY REVENUE-POSITIVE with established nationwide base of high profile
distributors offering a combined 6000 +/- B2B reps pitching our product lineup and
supported by corporate territory reps.
DEPLOYING NANO BEVERAGE TECHNOLOGY for formulation of new products
and private label offerings. Technology licensing structure provides multi-year
revenues multiplied by potential for numerous simultaneous agreements.
LEVERAGING OUR CURRENT MANUFACTURING FACILITIES and established
access to other key manufacturing assets. Established global distribution channels
from North America to Europe.
©2019 FYTO BRANDS International 4
F E AT U R E S
Significant product
differentiation.
Transparent supply chain promotes
corporate responsibility.
Similar to existing non-CBD products
but with higher margins.
Attracts new users and creates
customer loyalty opportunities.
Contemporary appeal
to millennial workforce.
Ability to extend new segments based
on enhanced formulations, perceived
culture and cost.
Product positioning aligned with
innovative culture.
Capability to pivot and rapidly
introduce new brands subject
to trend data.
©2019 FYTO BRANDS International 5
G L O B A L
S T R AT E G YWorkplace to Retail
Wholesale & Online
©2019 FYTO BRANDS International 5
CBD products target entire wholesale segments long
dominated by major players.
Office Coffee Services (OCS) is a less well known, high
margin distribution network able to introduce new products
into consumer workspaces.
Interest in health and wellness products growing exponentially.
CBD infused sector is a prospective high growth vertical
segment.
Beverage and Wellness distribution systems are well
established and open to new and profitable offerings.
Retail global distribution is increasingly aware and eager for
new segment offerings.
Direct-to-Consumer (DTC) and Online distribution have
proven impact in key cannabis-friendly markets.
©2019 FYTO BRANDS International 6
OCS Market(Office Coffee Services)
Source: Office Coffee Service operator numbers in the table above are based on internal company
estimates derived from a collaborative effort between NCBD and executive staff at the National
Automated Merchandising Association (NAMA)
Category # of CompaniesTotal Machines
on Location
$ Volume
in Category% of Market
A 5 750,000 $1,020,000,000 25%
B 25 420,000 $720,000,000 16%
C 70 680,000 $900,000,000 19%
D 400 680,000 $900,000,000 19%
E 500 400,000 $480,000,000 10%
F 1300 600,000 $720,000,000 15%
TOTAL 2,310 3,530,000 $4,740,000,000 100%
OFFICE COFFEE SERVICES (DEFINED)
OCS operators in the USA derive greater
than 51% of their revenues from the sale of
coffee and related beverages. These
operators supply 3.53 million office break
rooms in the USA.
©2019 FYTO BRANDS International 6
©2019 FYTO BRANDS International 7
O U R O C S
C L I E N T S
Management has proven experience working with
and introducing OCS channel market beverages
to and through a number of key organizations
Office Coffee Services (OCS) Distributors
FYTO BRANDS International is already working
or in discussions with all the above.
©2019 FYTO BRANDS International 8
Total Market Potential2,495,000± breakrooms (125± million employees)
FYTO BRANDS International Year 5 Projection73,000± breakrooms (3.6± million employees)
NON-ENTERPRISE
OPERATORS 1,770,000± breakrooms,
(88.5± million employees)
COMPASS GROUP300,000± breakrooms
(15± million employees)
ARAMARK191,000± breakrooms
(9.5± million employees)
STAPLES107,000± breakrooms
(5.3± million employees)
DS SERVICES127,000± breakrooms
(6.3± million employees)
OCS MARKET POTENTIAL
* Office Coffee Service operator numbers based on estimates derived from National Automated Merchandising Association (NAMA)
©2019 FYTO BRANDS International 9
Launch and Initial Focus: OCS markets, Micro Markets, Pantry, Vending
Concurrent Distribution: Wholesale to Retail Outlets
Long Term Goal: Home Delivery And Online
D I S T R I B U T I O N O V E R V I E W
Current OCS operator’s micro market locations ($3.3 billion in sales in
2018 with 23,681 locations)
USG co-op > 11,000 micro market locations
North American and UK inside sales division for OCS and retail market
Fully licensed and approved global distribution channels
Online markets to grow and maintain significant revenue opportunities
through advanced online marketing and direct-to-consumer sales..
Retail demand increases exponentially as a result of workplace and
vending markets.
Co-promotion online platforms with established vendors
Chain and Independent Health Food Stores
Grocery Stores
Convenience Stores
Drug Stores
Mass Retail
Online Sales
O C S M AR K E T S AN D B E Y O N D
©2019 FYTO BRANDS International 10
US Launch (Phase One)
Sales and Distribution
Initial Launch Territories
Phase 1 Sales Representatives
CBD Friendly Market Launch Phase 1
©2019 FYTO BRANDS International 11
Activated Nano works with manufacturers of
infused CBD products to create next generation
brand leaders.
We supply activated ingredients in water-based formulas through
licensed producers in Canada and the United States to manufactures
legally operating in the industry. Our products are CBD, THC, and
Whole Plant Oil based. They can be tailored to any application by
our staff of scientists and technicians.
Revenue generating with exclusive licensing agreements.
The Challenge: CBD product taste and delivery
The Solution: Nano Emulsions
Created in the
pharmaceutical industry
for enhanced delivery of
intravenous drugs.
Food grade nano
emulsions improve
digestibility, offer efficient
encapsulation, increased
bioavailability and
targeted delivery
Exceptional properties such
as high surface area,
transparent appearance
and robust stability.
Our TechnologyPowering the Next Generation of CBD Infused Products
CBD Drinks Confront a Serious Buzz Kill—They Taste Terrible
Small startup companies tinker with ways to dial down ‘oily grass’ flavors and related
undesired notes.
Traditional orally delivered cannabinoids take long to absorb (2hr+) and are poorly
bioavailable (2-10%).
DOSAGE CONTROL is essential
©2019 FYTO BRANDS International 12
Water Based CBD Benefits
Stability
One of the largest challenges facing producers of
infused beverages is oil separation. In our ingredients
the oil is wholly encapsulated making it compatible with
water. Due to a variety of factors, the strength of our
encapsulation does not diminish over time.
Power
Activated formulas are at least 2.5 times more effective
than the same amount of refined cannabis oil. Making oil
compatible with water makes it fundamentally more
compatible with the human body. So less oil does more,
saving money and improving results.
Flexibility
Our formulas mix as naturally as milk into coffee.
No longer do you need to battle to get even distribution.
Just mix gently into the liquids you are using in your
products and you can be confident that distribution is
perfectly even.
Predictability
Modern consumers want to be in control of their
experience. Activated Nano infused products provide
consistent experiences from use to use. Predictability
breeds brand loyalty.
Speed
With formulas that act in as little as 3 minutes, there is
no other infused CBD technology that offers a speed
approaching traditional smoking. Activated Nano infused
products provide a situationally responsive method of
consumption that is entirely new.
Precision
Due to the enhanced predictability and efficacy of
Activated Nano’s formulas, micro-dosing and other
precision driven uses of CBD have never been more
practical or attainable to consumers.
For Manufacturers For Consumers
©2019 FYTO BRANDS International 13
M A N U F A C T U R I N G
Facilities in California and Nevada
Aim to Meet Production Demands
Award-winning suppliers with secured access to highest quality botanical
and phytoceutical ingredients sourced directly from growers in 27 countries. Includes
award-winning organic teas, herbs, medicinal blends and related raw ingredients,
combined with custom formulation capabilities and state-of-the-art blending facilities.
Near term use of high efficiency manufacturing facilities in the US are positioned to
cost effectively supply finished goods under licensing agreements to UK/EU partners.
Our national sales and distribution structure allows us to
readily scale operations by leveraging proprietary and/or
acquired brand options.
The Company has proven its ability to execute the
development and distribution of consumer brands in
mainstream channels, which will serve as the roadmap of
its global CBD strategy.
Scientifically advanced CBD products designed for modern lifestyles
Our Brands
High growth beverage segment,
existing national clients, multiple
products, OCS strategy.
Health & Wellness sector,
existing clients, healthy,
nutritional, multiple products,
distributor/reseller friendly.
Powered by:Science-based CBD product development,
growing client list, national reach, ability to
infuse CBD into multiple products and
segments, delivers excellent margins.
©2019 FYTO BRANDS International 15
Revenue Positive TEAJA Poised for CBD Boost
Now preparing to launch with Cannabidiol (CBD) and adaptogen powders.
TEAJA is currently working with all four of the largest OCS operators
including Canteen, Aramark, First Choice and DS Services to distribute
our loose leaf tea products to their clients which have access to over
725,000 breakrooms.
TEAJA has a national agreement with Staples USA (2,500 reps). TEAJA
Office products are now available on Staples.com,
Staplesadvantage.com and Quill.com. In addition, TEAJA has a national
agreement with Office Depot (1,700 reps) and their subsidiary Grand
and Toy across Canada. We are also working with W.B. Mason (800
reps) to create a marketing program.
TEAJA has shipped over 7500 Experience Kits representing a
975% placement growth in 26 months into leading global
brands such as LinkedIn, Shopify, Samsung, Uber,
Salesforce.com, SAP, Spotify, Netflix, Showtime, Tinder, Twitter,
Electronic Arts, Pokémon, Groupon, Nintendo, Mozilla, Raymond
James and Wayfair.
©2019 FYTO BRANDS International 16
Products in Advanced Stage of Development
Single portion pyramid bags.
Single portion tea based adaptogen powders.
Hemp derived Cannabidiol (CBD) infused tea based
powder offerings.
With the impending approval of the 2018 Farm Bill in the USA,
hemp will no longer be considered a controlled substance
which will allow CBD’s to be sold legally in all 50 states.
Alcoholic beverage giant Constellation Brands is investing $4
billion in the marijuana and CBD company, Canopy Growth to
participate in this sector. Other major brands are also looking
to invest. Heineken is also producing a CBD infused beer.
©2019 FYTO BRANDS International 17
VAYU is a line of phytonutritional dietary
supplements based on traditional methods
of using plants to rejuvenate, heal and restore
the body to its optimum performance.
Licensed by Health Canada as Natural Health Products,
and available in the US as dietary supplements
All ingredients are grown without the use of chemical fertilizers
and toxic pesticides
Non-GMO, gluten free, dairy free, vegan, and Kosher certified
Certified Organic tea base ingredients which are highly soluble for optimum
bioavailability
Pre-launched with LOI’s ranging from wellness spas to retail
©2019 FYTO BRANDS International 18
VAYU offers a complete innovative
solution for providing phytonutrient
and mineral supplements.
Elegant and convenient displays for in-spa / in-clinic use
Attractive, sustainable retail packaging with sleek, high-end boxes
A selection of 6 products plus a variety pack
Each box is labeled with benefits, ingredients and usage instructions
Sales support across North America
©2019 FYTO BRANDS International 19
*Mordor Intelligence Report Sept. 2018
**Brightfield Group market report Sept 2018
***Zion Market Research 2017 Forecast, 2016 - 2022
T H E C B D M A R K E T
The global cannabis beverages market,
valued at approximately USD 1.61 billion in 2018
is expected to generate around USD 4.6 billion
by 2025at a CAGR of approximately
15.6% between 2019 and 2025.**
The 2018 Farm Bill paved the way for
the emerging CBD industry, from beverages
to beauty products, and the market potential
has become substantial.
The North American functional beverages
market is expected to grow at a CAGR of
7.86% in the next 5 years and reach USD
68.8 billion by the end of 2023.*
The emerging North American CBD market was estimated in
2018 at USD 591 million. With new regulations taking effect
throughout the continent, the North American CBD market is
expected to surpass the marijuana market, grow nearly 40
times and hit USD 22 billion by 2022.**
Future Target Market(under consideration)
Global Sports Nutrition
Est. $28.37 billion by 2022***
©2019 FYTO BRANDS International 20
I N D U S T R Y I N V E S T M E N T S
Aurora Cannabis (ACB-TSX) & Alcanna (CLIQ-TSX)
In February 2018 Aurora announced an investment of CAD 103.5 million
for 19.9% stake in Alcanna with option to increase to 40%.
Molson Coors (TAP-NYSE) & Hydropothecary (HEXO-TSX)
In October 2018 Molson Coors Canada and HEXO formed a joint venture,
Truss, to develop non-alcoholic, cannabis-infused beverages for the
Canadian market following legalization.
Constellation Brands (STZ-NYSE) & Canopy (WEED-TSX)
In August 2018 Constellation Brands announced a USD 4 billion increase stake
in Canopy (up to 50%). The first investment was USD 245 million for 9.9%stake.
The current US opportunity is estimated at USD 50 billion. The global opportunity
is estimated to reach USD 227 billion by 2032.
Cronos Group (CRON-NASDAQ) & Altria (MO-NYSE)
In December 2018 Cronos Group announced an investment of CAD 2.4 billion from
the Altria Group which gives Altria a 45% stake in the company, with option to
increase up to 55%.
NOTABLE SECTOR INVESTMENTS
©2019 FYTO BRANDS International 21
S U M M A RY
CONCEPT KEY DRIVERS PROJECTED OUTCOME
First of its kind beverage marketer targets
robust vertical segments
Subsequent adoption leverages
introduction to broader markets
Initial marketing delivers wide interest
and access to nationwide retail sales
Unique lifestyle & wellness products
infused with CBD
Innovative distribution via
workplace & lifestyle introduction
Partnerships with OCS marketing
organizations hungry for innovative products
Enthusiastic adoption
Rapid manufacturing and deployment
Year-over-year sales growth
Thank YouFYTO BRANDS INTERNATIONAL INC.
2710 - 200 GRANVILLE ST.
VANCOUVER, BC V6C 1S4
INFO@FYTOBRANDS.COM
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