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Beverage Brands INVESTOR PRESENTATION

Strictly Confidential © Beverage Brands, Inc., November 2009

This presentation is prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. Any such offer or solicitation will be made only by means of the Company's confidential Offering Memorandum and in accordance with the terms of all applicable laws.

About Beverage Brands

  Incorporated in 2007 to bring a portfolio of exotic, flavorful drinks to the market that have a combination of health benefits and great taste.

  In July 2008, Beverage Brands introduced MATÉ fusion, a ready-to-drink (RTD) tea made with Yerba Maté into the marketplace.   MATÉ fusion is available in Peach, Blueberry Acai,

Pomegranate and Asian Pear flavors.

  MATÉ fusion drinks gained enormous traction since strictly confidential July 2008; including laying the foundation for the Company’s distribution channels which has resulted in sales of its products in 1000 locations.

Strictly Confidential

The Beverage Brands Concept   Beverage Brands products are a reflection of their

commitment to and the market’s demand for delectable drinks made with cutting edge ingredients that are healthy, nutritious and beneficial to overall well being.

  Beverage Brands has successfully tapped emerging market trends through its use of exotic flavors fused with Yerba Maté , which has given it the ability to reach a largely untapped market space of health conscious consumers that are looking for a refreshing uplifting RTD beverages.

  MATÉ fusion:   Boost mental alertness   Stimulates the metabolism   Improves the immune system   Contains 90% more antioxidants than green tea   24 vitamins and minerals   15 amino acids


Yerba Maté a healthy energy boost   Yerba Maté has been consumed for centuries in South

America and is lauded for its ability to boost energy through three compounds:   mateine which gives a more balanced energy boost without

the side effects that caffeine brings;   theobromine (euphoric stimulant associated with chocolate);   and theophylline (primary stimulant in green tea).

  When fused together these compounds create an energy boost that is more balanced than any current caffeinated beverage in the marketplace.

  Additionally, Yerba mate’s health benefits include the ability to positively affect the immune system, increase metabolic function and provide essential daily vitamins and minerals.


Yerba Maté in the News

“Yerba Mate is the latest hip energy drink”

“The latest buzz among endurance athletes isn’t from caffeinated energy gels, but from a South American tea called yerba maté — maté for short. Cyclists and distance runners claim that imbibing maté before a workout gives them long-lasting energy”


Oak Beverages, Inc. and Boening Brothers Now Distributing Maté Fusion All Natural Premium Teas throughout New York

The Maté Fusion Market   Led by the US and Europe, consumers are increasingly interested in healthy

living products.

  In 2007, the U.S. tea and ready to drink (RTD) market was estimated to be $7.4 billion, and is expected to grow to $14.9 billion in 2012, which represents an average annual growth rate of 15%.

  The US RTD tea consumption has grown at a CAGR of over 11% since 2003 and showed 20% CAGR from 2005 to 2007.

  Nearly 132 million US adults or 43.5% of adults drink RTD tea.

  Yerba Maté target consumers include:   Outdoor/Action Sports enthusiasts - 49.7 million adult Fit Consumers (23% of adult

population)   University Students – 15.9 million   Baby Boomers – approximately 72 million

  In the US, per capita consumption of RTD tea is more than double the world average.

  RTD tea sales, by value, are about 7% above soft drinks and 3% above the overall beverage average, which reflects the higher average price.


Competition   While the RTD tea market is attractive, the area is increasingly

competitive. Between July 2006 and June 2007, a number of new RTD products were introduced in the U.S. . The competition for MATÉ fusion is broken down into two categories that both fit into the healthy beverage niche.

  Direct   MATÉ fusion will be competing directly with RTD beverages containing

Yerba Maté, which include: Guayaki, Herbal Mist, Pixe Maté, and Honest Tea.

  Indirect   MATÉ fusion will be compete indirectly with RTD beverage companies

that exist with in the healthy functional beverage category but do not contain Yerba Maté. These companies include: Tazo, Inkos, Snapple, Nestea, Hansen Natural, Steaze, Gold Peak, Arizona Tea and Fuze.


Beverage Brands Major Milestones  Developed and produced 4 flavors of Maté

Fusion Tea

  Established and Pipeline channels of distribution for the entire Metro NY,NJ area

  Rapidly growing NY,NJ and FL placement in key shopping venues including :


Financial Summary


Projected 2008/9 2010 2011 2012 2013

Revenue $146,456 $1,664,532 $6,295,715 $22,932,112 $45,897,693

Direct Expenses* $97,583 $827,342 $2,990,990 $10,165,174 $19,269,670 Gross Profit $48,873 $837,189 $3,304,724 $12,766,938 $26,628,024

Gross Profit (%) 33% 50% 52% 56% 58%

Other Expenses $78,807.99 $754,322 $2,481,812 $6,536,404 $12,349,250 EBITDA ($29,932) $82,868 $822,912 $6,230,534 $14,278,773 Depreciation $0 $3,000 $4,500 $6,000 $7,500

Income Tax Expense ($11,480.4)7 $37,100 $317,170 $2,178,590 $4,994,950 Net Income ($41,414) $42,768 $501,242 $4,045,944 $9,276,323 Net profit (%) 0% 2.6% 8% 18% 20%

* Does not include bulk purchase of tea which has been carried over as inventory

Use of Funds   Beverage Brands Inc expects to allocate the net

proceeds from this offering as follows:


Chain Placement and Roll-Out (2876 Stores) Slotting (2876 stores x 12 skus @ 1 1/2 case per sku) $465,000

Chain Ads (20 chains @ $1500 per ad 4X a Year) $120,000 Racks 600 @ $120 each $72,000 Demos 500 @ $100 each $50,000

Chain Placement and Roll-Out Total $707,000 Street Roll-Out 850 additional locations

5 accounts per day = 170 days @ $111.76 per day $19,000 Marketing/PR Activities

Trade Shows (6) $80,000 Other Events $20,000

Public Relations $100,000 Viral Marketing $50,000

Website upgrades $10,000 Product Samples $40,000

Celebrity Endorsements $50,000 Marketing Materials $100,000

Targeted Outdoor Marketing Materials $50,000 Media $300,000

Street Roll-Out Total $819,000 Inventory/Payables

12 trailers $140,000 Payables (6 weeks) $375,000

Inventory/Payables Total $515,000 Working Capital $500,000

Staffing $459,000 Total Use of Funds $3,000,000

Growing Distribution   Boening Brothers, Inc. and Oak Beverages, Inc.

  New York area territories including in downstate NY, Manhattan, Brooklyn, Queens, the Bronx, Staten Island, Nassau and Suffolk (Long Island) counties, and upstate in Rockland, Westchester, Orange, Dutchess, Sullivan, Ulster and Putnam counties

  Tree of Life

  A US and Canadian, coast to coast, specialty food distributor that boasts a wide range of retail customers ranging from national chains to small independent health food stores.

  UNFI   The leading US independent national distributor of natural, organic and specialty foods. UNFI

distributes high quality products throughout the United States and to more than 40 other countries.

  Peerless Crescent

  The largest beer distributor in New Jersey. They are the primary distributor for Coors, Corona, Yuengling and Guiness beers.

  Snackamaniac Distribution and New England Distributors   Established food and beverage distributors in the greater Florida area.

  Beverage Brands has additional US East Coast distributers ready for future expansion once the NY, NJ and FL markets are saturated.


The Beverage Brands Team   Paul Adler, President & CEO

  Before founding Beverage Brands Inc, Mr. Adler successfully operated several New York based private companies including: Contact Plus, Global Diversified Holdings. In 1998 he joined the securities industry and by 2001 he was managing his own branch of Granite Securities. Mr. Adler’s branch and the rest of the company were eventually acquired by Princor Financial where he remained as a Vice President of Sales. Mr. Adler served on the board of directors of, Russian Style Ravioli and New York Bread, two privately held food manufacturers and was instrumental to their initial growth. Mr. Adler has extensive investment banking Wall Street managerial and production experience.

  William A. Louttit, Executive Vice President a.i., Sales & Marketing.   Starting his 33-year Grand Union career in 1964, Bill rose from a part-time clerk to Executive Vice

President and Chief Operating Officer. He also served on Grand Union’s Board of Directors and Executive Committee for 7 years. Mr. Louttit was also Chairman and Chief Executive Officer of the Northeast group of the Great Atlantic & Pacific Tea Company, encompassing Metro A&P, Waldbaums, Super Fresh and Food Emporium stores from 1997 to 2000.

  From January 2008 to February 2009, Mr. Louttit expanded the distribution of ISBRE from 50 supermarkets to 2,000; 50 restaurants to 250; 600 independent vendors to 2,500; 50 convenience stores to 215; 20 specialty shops to 110; 2 hotels to 30; and 0 golf clubs to 8.

  Barry Bressler Director of Sales   From 1973 to 2003, Barry has established himself as a top retail chains specialty foods and beverage

brands manager. Starting with Waldbaums 36 years ago, Barry has advanced to the top store management positions of key stores on Long Island. Barry later joined Kolpen/ KDI Distributors, a major distributor of specialty foods to a wide variety of retail customers in Metro New York/ New Jersey and then went on to set up the newly formed Specialty Foods Division at White Rose Distributors, a food distributor to independent chains in Metro NY/ NJ.

  In 2005 Barry moved on to beverage product sales management positions and played a key role in the roll out of a number of newly introduced successful beverage brands including Vitazest, Isbre Water, Iced ‘Spresso and Liquid Lightning Energy Drink


Future Expansion

  Upon successful funding, Beverage Brands will introduce its diet brand of MATÉ fusion, which is made with Stevia, a non-caloric herb native to South America known for its extremely sweet taste.

  Beverage Brands will also extend its future offerings of sparking green tea, fortified enhanced water beverages, and continue its line extension with additional diet Stevia versions of top selling flavors. These products will be introduced in the first and second quarter of 2010.


Beverage Bands is currently seeking $3 million US for market expansion, infrastructure and operating expenses: Bridge Round Seeking: $ 1,000,000 USD Use of Funds Pre-Money: $ 8,000,000 USD * Planned rapid roll out in NY, NJ, FL First Close: December 2009 SC and NC areas

* Prepare for 2nd Phase Expansion

Series A Seeking: $ 3,000,000 USD Use of Funds Pre-Money: $10,000,000 USD * Introduction of new flavors Close: January 2010 * US East Coast expansion

* Prepare for 3rd Phase Expansion

Exit Strategy: Acquisition by a major beverage company Beverage Brands is an opportunity to make an investment in the newest Beverage concept to hit North America with high-return on investment delivered in a short period of time.



Contact:

United States - Headquarters 1750 Montgomery Street 1st Floor San Francisco, California 94111 United States +1 415 992 7614 +1 415 954 8598

Jonathan C. Miller managing partner [email protected] +86 1388.814.1754

China Suite 1201, Bld 2 1717 Xizang Nan Lu Shanghai 200011

+86 21 6316 5799 +86 21 6316 5799

Skip Canevit partner [email protected] +86 1381.868.7774

© Beverage Brands, Inc., November 2009

The following is available upon request: •  Full Financial Package •  Assumptions •  References for all information •  Complete Due Diligence Package

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