Dub 20070131 a Chill Baby presentation

Slide1: 

Chill Baby Guilt-free Convenience in a Pot

Introduction: 

Introduction Ulrik Bagge-Hansen 1 wife, 1 dog, 0 babies Education BSc Hon Economics & Finance (UK) 2002/3 MBA Smurfit Business School Managing Director for Chill Baby Founded Oct 2003 Career with Reuters plc for 9 years Europe, Middle East, Asia, Far East Financial Institutions Sales & Business Development

Chill Baby: 

Chill Baby Currently employs 6 people The Brand is a registered trademark Started trading April 2005 Age range covered Babies 4-15 months Stages: 4+; 7+; 10+ months (standard) Probably the only fresh baby food in the world! 100% organic Certified by the Organic Trust Storage 2-4OC Chill Baby

The Start-up Story: 

The Start-up Story Now 15,000 units produced per month 30+ outlets Tesco Expansion – March 2007

Current Range: 

Current Range Short shelf-life Recyclable Plastic polypropylene tubs

Baby Food Category: 

Baby Food Category Segmentation Prepared baby food  Jars & Cans Other baby food  Rusks, biscuits, juices Dried baby food  Cereals & breakfast Milk formula  Standard & follow-on Chill Baby competes in the prepared baby food market Target market time pressurised mums, who want to feed baby with fresh, homemade food, but who does not have the time to do so On-Trend organic, fresh & convenience

Market Sizes: 

Market Sizes Estimated figures for Prepared baby food segment for 2005/06 Ireland €10m U.K. €195m U.S. €735m Germany €250m France €485m Italy €465m Denmark €26m Holland €34m Average Growth Rates Between 1 and 3%

Our USP : 

Our USP Jars Ambient only Heinz, Cow & Gate, HiPP Frozen Chill Baby

Happy Customers: 

Happy Customers

What some mums had to say..: 

What some mums had to say.. “I recently visited from London and came across Chill Baby. I tried it on my baby and she ate like she had never eaten before - absolutely loved it! I even had a few spoonfuls myself. It is such a shame it’s not in London. I’ve arranged to visit again but not to visit them, as they may think, but to stock up my fridge. Pls bring it to London it would be well received.” “My son (14mths) loves all the 10mth ranges and the Chicken Hotpot, thrilled you brought them out. I have always cooked for him, but now I don't need to and I know he's getting natural fresh food, with none of the cooking! Can't wait for some more ranges.” “Niamh 7 months just adores Chill Baby! I don’t feel guilty about not making up homemade dinners for her every day!” “My Kids love them (9 months and 2 ½ years). Traditional Irish Stew and Beef Goulash are their favourites. Price seems fair (I’d pay anything once it is natural). You are doing a good job – keep it up.” Hello there...I am eager to try your product! However, in my research on your website I quickly found out that your products are only available overseas! I live in Texas and would love to be able to purchase your foods....... any chance that you sell them online? Please let us know...... (Erin 11-Nov-06) Tue 30 Jan – Mum calls us all the way from Cork to tell us that she just discovered Chill Baby and that we are wonderful and thank you so much for producing such a great product.

Lesson 1: Cash is King: 

Lesson 1: Cash is King Start-up High cash burn Low brand equity Great ideas cost money Value is in the Brand All intellectual property No patents VC’s, banks, private equity & …

Lesson 2: Trusted Advisors: 

Lesson 2: Trusted Advisors HELP!

Lesson 3: Have an Exit Plan: 

Lesson 3: Have an Exit Plan Why was Chill Baby established? Great opportunity Market potential Fun product with challenge Make money Try not to get emotionally attached Sell Chill Baby to major player with; Resources Distribution Growth potential Equity + motivation + ownership + reward

Lesson 4: Distribution: 

Lesson 4: Distribution Have to be in shops Tesco, Dunnes, Superquinn, Supervalu  70+% of retail market Otherwise investment in brand waste of cash i.e. Promotions Advertising PR BUT….. nationwide distribution cost money = increase production = risk = more cash For Chill Baby €500,000 in capex Chicken or egg UK market

Lesson 5: Dealing with Supermarkets: 

Lesson 5: Dealing with Supermarkets Buyers = margin (%) TESCO, SUPERQUINN, DUNNES, MUSGRAVE All very approachable & helpful Don’t underestimate the costs of; Promotions, distribution, brand support, etc. Need a great product USP Don’t try another marmalade Persistence Be careful about being too far outside of “the box” Getting a listing is only ½ the battle

Lesson 6: A Positive Trade Story: 

Lesson 6: A Positive Trade Story Chill Baby offers supermarkets a vehicle for category value growth in a modest growth category Mum/Dad trading up from ambient jars to Chill Baby Mum/Dad replacing some self-prepared home made meals with Chill Baby As much as 55% is homemade

Lastly: HR: 

Lastly: HR Get a good HR consultant

Parting Thoughts: 

Parting Thoughts Fun Stress Challenging Stress Exciting Stress Not quite what they taught in MBA land Stress

Slide19: 

Thank you