The Market Opportunity for Meat Free From a Brand Perspective

IntroductionChanging Consumer TrendsChannel Opportunities

Sol Cuisine

• A Leader in Natural Foods manufacturing in Canada Established in 1996 Sol Cuisine pioneered Plant Based Protein Foods in Canada (Soy City Foods 1980)

• 35,000 sq. ft manufacturing facility and operations; Organic, Kosher, SQF Certified GFSI, Non-GMO Project Verified

• Over 5000 Retailers and Food Service (Costco, Loblaws, Sobeys, Kroger, Whole Foods Market)

• Experienced Team with over 180 years combined of Plant Based Food Experience

• We control the process from start to finish!

• Innovation

• Production

• Quality

• Operations

• Sales & Marketing

To make the best tasting & highest gourmet quality plant-based protein foods,

and share them with our “sol-mates” everywhere.

Mission

The Consumers Now & in Five Years

Bridge2Food – Plant Based

Page 6

Move over Vegans/Vegetarians. Make way for the

Flexitarians weigh

Vegans 1-4%Vegetarians 2-8%

As Concerns Around the Environment and Food Waste Grow, Meatless Options are Becoming More Important

8

=One gallon of

milk

Two thousand gallons of water

That water would last the average American 25 days

One cow produces 176lbs of methane gas per year, 23x

more powerful than carbon dioxide gas.

The equivalent of…

Six tons of carbon dioxide gas a year

per car.

Four tons of carbon dioxide gas a year

per cow.

Roughly two football fields of space needed to produce enough

food for the SAD* a year.

Estimated 3.3 acres per person.

That same amount of space can feed 14 people on an all

vegan diet

*Standard American Diet = heavily comprised of animal protein and dairy.

The Standard American Diet (SAD)* requires

• 10x more land • Over 10x more water• Over 10x more energy

than a plant-based diet.

There are roughly one billion cars in

the world

There are roughly 1.5 billion cows in

the world

Sources (Source: greenoptimistic.com “Milk Problem Environment” water.usgs.gov “qa home per capita” cartalk.com “Global warming and your car” drovers.com “World cattle inventory ranking countries fao” worldometers.info “cars”

Consumers are eating more meatless alternatives for health and ethical reasons

HEALTH ENVIRONMENTAL ANIMAL RIGHTS

If everyone ate a vegetarian/

vegan diet, 33% of early deaths could be

avoided.

Animal diet takes 10x more resources than

plant-based.

25 million farm animals killed each day in USA, often kept in inhumane

conditions.

72% prefer to treat animals and pets

well.

94% worry about the

environment.

99% try to eat healthier or pay

attention to nutrition.

Source: GfK 2018 Doublebase. Animalmatters.org “farm” plantricianproject.org

52% of CDN consumers eat meat alternatives.

Source: Mintel, Meat Alt Canada 2018

62% of CDN consumers eat meat alternatives.

Source: Mintel, Meat Alt Canada 2018

Plant Based consumer + category trends

Sales of plant-based foods reached more than $3.3 billion in 2017, +20%. Plant based meat was up 24%, $670 million.*Nielsen/Winsight

Media AttentionStrong Category

growth

Shift in Canada’s Food Guide

Plant based continues to grow year over year, and is outpacing Animal Meat

2017,

Plant Based, 8%

2018,

Plant Based, 20%

2018, All Food,

2%

0%

5%

10%

15%

20%

25%

Growth of All Plant Based vs All Food

2017, Plant Based Meats

6%

2018, Plant Based Meats,

24%

2018, Animal Meats,

2%

0%

5%

10%

15%

20%

25%

30%

Growth of Plant Based Meats vs Animal Meats

SOURCE: US Nielsen Data L52W ending Aug 2017, June 2018 (Plant Based Foods.org)

Continued Growth

Industry responses:

• Messaging & Regulations

• Increased Capacity

• Innovation to continue in Protein options

• High Quality Products

Channel Opportunities

Bridge2Food – Plant Based

13

Retail BrandsConsumer Exposure & Engagement

Competitive & Expensive

Dominated by large CPG companies

US: Kellogg’s (Morningstar Farms), Conagra (Gardein), Kraft (Boca)

CAN: Conagra (Gardein), Hain (Yves Veggie Cuisine)

Significant opportunities to Innovate

Retail Transitions

Declining Brands:

Morning Star and Boca

Growth Brands:

Gardein and Beyond Meats Page 14

VETO VOTE - 6.4 million Canadians are reducing their consumption of Meat

The Business Case for Food Service :

Meat-Free emphasis creating opportunities to drive traffic and awareness

History ………… Universities and Educational Accounts

The Future …... Fine Dining, Home Delivery, Meal Kits

FOOD SERVICE NEEDS TO SHOUT OUT ABOUT THEIR OFFERINGS15

Food Service

Store Brands

Match to the leading national brands quality but at a 20-25% discount

Opportunities for innovative items with the correct partner Trader Joes

Contract Manufacturing

New Brands

Lack of Manufacturing Capacity

The Future of Plant Based

Bridge2Food – Plant Based

Page 17

Accelerating Growth in 5 years

The Question: What if trend continues?

25% eating primarily plant based

Retail

Real Estate space @ shelf

Plant Forward Retailers

Food Service

Menu Segmentation

Vegan Only – All Channels

THE FOOD TRIBES

Most Buyers of Frozen Meatless Want to Explore Options, Searching for Improved Health or Texture

Source: SMART Market Research December 2018Base: Frozen Meat Alternatives 500

Q: Select the following statement that best describes your attitude towards Frozen Meat Alternatives

19

49%

32%

18%

12%

9%

9%

More Options

Better Signage, More Space, Easier to Locate

No Change

More Affordable

Better Quality / Healthier

Larger Sizes

% of Frozen Meatless ShoppersThoughts on Primary Retailer's FZ Meatless Section

20

49% of FM Shoppers are looking for more options

While shoppers have responded to new options, they want more. Many still seek easy to find sections.

Source: SMART Market Research December 2018Base: Frozen Meat Alternatives 500

Q&A