BarFresh Food Group, Inc. Investor Presentation
You may not know it, but smoothies are NOW the new gourmet coffee in the quick service restaurant (QSR) world. NBT is finishing an updated research report on BarFresh Foods and the quick version is...BRFH single serve smoothie drinks are positioned VERY similar to how Green Mountain Coffee became a dominant player in the individual coffee dispensing world.
In short, in the coming smoothie wars the ARMS dealer is the winner—and BarFresh Foods is the ONLY pure play stock in the $billion trend. Wall Street is just discovering this trend...and the way Wall Street likes to play a $billion+ trend is to bet on the "arms dealer"-i.e. the company that, like Green Mountain Coffee was in the single service coffee trend, wins no matter WHO wins the smoothie war. While McDonalds and Burger King battle and 2000 quick serve restaurant (QSR) chains ramp up their smoothie products to meet demand, BarFresh Foods wins every time a QSR or Fast Casual chain selects their killer value proposition for the smoothie game.
Lest you forget, look at the chart of Green Mountain Coffee as the single service Krueig machines started to hit critical mass...a 20X bagger from the lows of $5 in 2009 to $120 as the single serve coffee craze hit its peak in late 2010.
Our central investment thesis—for the QSR world, smoothies is the NEXT big thing in single serve beverages. Next time you go by a McDonalds or Burger King—look at what they are advertising in the store or on air...smoothies. The REST of the QSR competitors are racing to catch up...and that makes BarFresh’s single serve smoothies and automated smoothie making machines as THE pure play on the smoothie trend.
And just like the Kuerig machine at home and Green Mountain...BarFresh has not even started to sell to the home market from grocery stores....yet.
BRFH Has the Most Important Thing A Stock Can Have—TRACTION
MOST important, every week BRFS is announcing another nationwide deal to sell their Barfresh's Smoo™ Smoothies, that is what Wall Street calls “traction”.
Yesterday they just announced a well-known International Restaurant Chain, which consists of 330 locations in thirty eight states and six countries, has joined the Smoo™ Smoothie train.
That is traction...that is their third contract win in as many weeks.
The agreement calls for Barfresh's Smoo™ Smoothies and proprietary packaging system to be tested in the restaurant chain's location(s) of their choice here in the United States. Upon test approval, we expect that full distribution and product rollout will commence to potentially all 330 restaurant locations, which currently operate under several different brand names both domestically and internationally.
Riccardo Delle Coste, Barfresh Food Group's Chief Executive Officer, said, "We're very excited to have landed a QSR (quick service restaurant) chain of this magnitude. It's very standard procedure for any large-scale QSRs to conduct testing prior to full product rollout, which is in the best interest of their customers and operations. However, we believe that getting product tests are a testament to the quality, efficiency and low cost nature of our all-natural blended beverage line. We believe that it's the final step toward putting us in a position to start realizing significant revenue and market share going into 2013."
Mr. Delle Coste went on to say, "Since getting our production line up and running only a few short months ago, we've not only signed on several small QSR chains, we're continuing to see a high degree of interest for our portion controlled ingredient packs with some of the most highly recognized multinational names in the QSR space. This interest is now rapidly translating into product test rollouts with these large chains.
Lastly, Mr. Delle Coste stated, "One large multinational client has the potential to change our fundamentals as a Company overnight. As the trend for healthier alternatives here in the U.S. continues to grow, we believe we are perfectly positioned to take advantage of this major shift in what Americans are eating and drinking on a daily basis."
YES—the most important issue for shareholders is this—they are ONE game-changing national distribution contract from hitting the radar of Wall Street and the financial media. Barron’s already has run a pretty bullish article on the juicing craze.
We expect the same kind of coverage for the smoothie trend.
But Barron’s missed the real point…the REAL money in a war is made by the arms dealers…and BarFresh is the arms dealer for the Smoothie Wars.
And we are convinced there are MAJOR restaurant chains that will HAVE to jump on the BarFresh train to get their entire systems up to speed FAST. That is the BRFH value proposition—GREAT tasting smoothies with only a 7” counter space.
It’s a $200k cost to set up a full blown smoothie station at a QSR location. BRFH gets them in business with ONE machine—about $300.
PLUS there is no waste from spoiled fruit...or gallons of ice cream to store.
In short—the BarFresh Smoo solution is in the very right place—with the right value proposition—at the right price AND most important the right time.
Table pounding buy—our $5 target will be reviewed the SECOND BRFH signs a major chain (2000 store+) deal.
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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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