CoCo Loco

* Company Summary
* Products
* Customer Positioning
* Distribution
* Being ready for future scale and beyond
* Realization of shares holder's investment
* Information regarding the market that we operate in

USDA Certified

• Premium Quality
• Non-dairy, Non GMO Certified
• Gluten Free and NO Preservatives
• 100% Vegan
• Use in baking, beverages and Asian cooking
• Designed to highlight the good natural benefits of coconut.
• Organic & Non-Organic USDA Certified

COMPANY PROFILE

• Joint Venture created by 3Dogs
• First product from Vietnam to enter US market
• Distributing 350 stores 7 Eleven, Humboldt Distributor, DSD Distributors in NorCal, and all over of West and East Coast.
• Going to expand online in the end of 2018 in Walmart, Amazon, and our own CoCoLoco.net

MISSION

• To empower people to take their health and well being into their own hands by providing solutions to support health and immune function.
• Stepped up on our quality and food safety standards without compromising on the taste we truly treasure.
• To manufacturing Organic products with hygiene for A Healthy Life.

VISION
Coco Loco's vision is to lead the growing trend in our culture toward more personal responsibility for greater health and well being by developing innovative and delicious beverages that offer the most efficacious health and nutritional benefits.

COMPANY SUMMARY

Key features of Operating Plan for 2018

1. Achieve 2 to 4 millions in gross revenue
2. Achieve 40-45% gross margin, based on gross sales
3. Achieve working capital efficiency

Specific Operational Goals

1. Establish stable cost efficient co-packing routine with key partners for supply and ingredients
2. Continuously seek additional savings with respect to ingredient and non-ingredient components compromising our cost of goods and realize additional savings throughout the year.
3. Continue to explore new flavors, categories, and package options.

PRODUCTS

Specific Sales, Merchandising, Marketing & Brand Awareness Goals

1. Develop and execute a strong presence and brand awareness from the west coast to East Coast while opening/seeding up new potential market that express interest as Asia, Middle East and Europe.
2. Increase authorizations in the convenience and natural retail channels. Build an internal culture which based on analytical decision making process and continuous identification & implementation of cost savings opportunities across the organization.
3. Strategic Partnerships with media, influencers, and celebrities to boost up Coco Loco's Brand.

Secured, Sustainable Gross Margins


Average sale price to Distributor $1.20
Current Bottle cost
$0.81
Gross Margins $0.59
% Margins = 40-42%

In the near future, as we increase our sales and distribution and gain "Buying Power" for our ingredients and packaging, we expect to increase our overall gross profit over 60% gross profit margin (GPM)

Estimate Monthly Volumes 2018

Using the same network and knowledge of our key players, our target goal will generate more than 2 to 4 millions in sales and still maintaing a 40% GPM. Based on the initial sell and footprint of Hemp2o products & capability and distribution, our future looks very promising and bright for Coco Loco. Additionally, we are going to gain customers base from 0 to 32 distributors from Hemp2o

Estimate Quarterly Sales Volumes 2018

Distribution Strategy

Beverage distribution across the entire U.S. is very complex. Our general strategic distribution plan is to expand into the major convenience chains and upscale & all-natural grocery chains by utilizing national distributor capabilities rather than traditional DSD distributors in every market.
This way, we will not need to invest in the personnel and costs associated with DSD Distributor management. However, if a traditional DSD beverage distributor is interested in working with Coco Loco, we will research and develop goals and capabilities for any given market at the lowest cost possible including having a firm stance on Distributor Agreements.
Our primary focus will be to activate the West Coast states. Obtain as many retail authorizations in high populated markets within those states where the retailers have a significant number of stores. Support the retailers with a promotional schedule and concentrate our marketing efforts in order to build volume with each retailer.

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MARKET OVERVIEW

The increasing sale of coconut milk is driven by changing consumer’s preference and adoption of vegan food consumption trend. Rising consumption of healthy beverages with low calorie content also is likely to drive the market for various coconut milk varieties increasing its sale in the beverages market. The health benefits obtained from coconut milk and application in keeping the gut healthy is also supporting its sale amongst the consumers. Increasing consumption of natural food is found to have a positive impact on the coconut milk market. The consumption of coconut milk is found to be high in North America and is evaluated to increase at a positive growth rate in various countries of Europe and Asia-Pacific region.
Market which is estimated to grow more than 7.5% during the period 2017-2023

9 MAIN BENEFITS ABOUT COCONUT MILK

1. Improves heart Health
2. Builds Muscle and helps lose FAT
3. Provides Electrolytes and prevent Fatigue
4. Helpful for losing weight
5. Helps improve digestion and
Constipation
6. Can help manage blood sugar and Control Diabetes
7. May help to prevent Anemia
8. Helps prevent joints inflammation and arthritis
9 Helps prevent Ulcers

Source: Dr. AXE and BBC Goodfood

MARKET FORECAST

Globally, the coconut milk market share is estimated to escalate at a higher growth rate due its healthy fat content that help in controlling the insulin level, thereby preventing diseases like diabetes. The high consumption of coconut milk is backed up by it property to lower cholesterol level in the body and further decreasing the chance of heart diseases. The rising demand for high vitamins and mineral containing food products in the market is supporting its sale on a global level. Rapid increase in the vegan population is anticipated to fuel up the market share of coconut milk globally.

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WHOLE FOODS SCAN DATA

In Whole Foods, RTD Beverage Brands are considered a good ROI when they average selling more than 4 units/store/day. As we grow and build our infrastructure, we will have the manpower to work closely with WF's and our distributors in order to continuously increase our volumes per outlet.

MARKETING PLATFORMS
Our Marketing strategy consists of 3 main parts

SAMPLING

Extensive Store Demo Program
1. Strategically scheduled demos to fast track growth at current top performing accounts.
2. Demos prior to category reviews to enhance SKU opportunities.
Community Seeding
Guerrilla marketing, sampling within a 3 mile radius following stores demos.

SOCIAL MEDIA

Increase our current users by utilizing all aspects of social media to inform our consumer base the benefits of Coco Loco, share new distribution and retail outlets, announce upcoming Coco Loco events, and share with consumers the healthy ways and benefits of drinking Coco.

SOCIAL MEDIA (FACEBOOK & EMAIL MARKETING)

A. Call to action landing page for "Liking" the page and signing up for the Coco Loco newsletter
B. Facebook audience identification and targeting
C. Drive Facebook Fans through scannable QR barcode on product label, company collateral, signage at demos, events.
D. Increase user engagement through contest and Tweetstakes
EMAIL MARKETING
Utilize MailChimp to engage with monthly newsletter subscriber with targeted offerings.

EVENTS

Event Marketing & Participating in events across the country where people are familiar with the benefits of coconut as well as events introducing consumers to Coco Loco for the first time

event presence

• Influencers of health & well being drink and recommend Coco Loco. Plan in place to expand relationships with top yoga practitioners, celebrities and artist.
• Strategic event plan to execute targeting three key event verticals to maximize exposure to core consumers
• YOGA / ARTIST / MUSIC FESTIVALS
• GREEN EVENTS
• HEALTH AND WELLNESS EXPOS

COCO LOCO TEAM

Joel Kleinfeld - Founder / President

Joel has held top leadership positions in companies conducting global manufacturing, licensing and retail distribution for 30 years. He has been responsible for the growth and bottom line performance managing diverse teams and clients across the world. His experience in managing global/manufacturing/sales organizations and their supply chains has demonstrated outstanding results. His unique ability to spot trends in the market will continue to guide the company's future.

Andy Bui - Founder / Chief Operational Officer

Andy has over 17 years of international trading on both furniture and garment textile manufacturing / wholesale experience in the the USA and Vietnam. He brings extensive operational experience to his role at Coco Loco. He is also acting as a Founder/CEO of The Jata Group which it operates and outsources the services from Southeast Asia. This company is specializing in garments and it is producing for all of the licensing company as Disney, Marvel, Walmart, Target, and all the biggest licensing companies in USA. With Andy's depth of operational knowledge and experience, his reputation in sourcing and trading industry is phenomenal to this company.

TOMMY TRAN - DIRECTOR OF SALES AND MARKETING

Tommy is also a founder and board member of Coco Loco where he leads business development and marketing initiatives involving merchandise branding and nationwide distribution. Tommy has been successfully involved in fashion world as created Tsquare's Media in Vietnam which got funded by IDG Ventures then hosted Vietnam Idol. He has worked with numerous celebrities in Southeast Asia as business development for Unilever's in Singapore, Hongkong and Vietnam. His knowledge in fashion and marketing is unparalleled.

FINANCING STRATEGY / $1 MM PRIVATE PLACEMENT

• Raise capital to GROW
• Convertible to EQUITY
• Go PUBLIC
• Get ACQUIRED
• Return on INVESTMENT UPSIDE

USE OF PROCEEDS

USE OF PROCEEDS

A. Social Media / Marketing 30%

1. Web Advertising
2. Retail Channel Point of Sale
3. Web Promotions
4. Trade Shows
5. Website & Streaming Media
6. Public Relations (PR)
7. Consumer Education & Sampling

USE OF PROCEEDS



B. Personnel Expansion 40%

Ramp up sales, logistics, marketing, distribution in order to manage volume expectations

USE OF PROCEEDS

C. Working Capital 30%

1. Retail distribution & Inventory Management
2. IT Customer Relationship Management
3. Product Development & Production
4. Legal / Accounting Services
5. Packaging

PROPOSED TERMS
We are looking for a long term strategic partner/investor. Based on our network/experience, we want to be conservative with our approach and willing to discuss the proposed terms:
$ 1 MM INVESTMENT for 10% Ownership

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let's coco to the next level