Food Industry Report Fall 2018 from Cascadia Capital

Food Industry Report
Fall 2018

Cascadia Capital Food Team
1
Food Advisory Leadership Team
Erik Einwalter
Senior Vice President
(206) 436-2538
eeinwalter@cascadiacapital.com
George Sent
Managing Director
(234) 380-3242
gsent@cascadiacapital.com
Bryan Jaffe
Managing Director
(206) 436-2534
bjaffe@cascadiacapital.com
The food sector continues to undergo consolidation as large CPG acquirers utilize M&A as a replacement for more traditional means of innovation.
Private equity has also demonstrated a considerable appetite for acquisitions given the durability and long term growth thematics of the industry.
Cascadia represents emerging growth brands that challenge the industry’s status quo, as well as food processors, ranging from contract manufacturers,
foodservice suppliers and ingredient houses.
With the addition of First Beverage’s advisory team in March of 2018, Cascadia Capital now boasts one of the more active Food & Beverage advisory
practices serving the lower middle market. Our team has closed 50+ transactions over the past three years, and with over 20 current mandates in
process, is well positioned to continue that momentum.
John C. Siegler
Managing Director
(206) 436-2550
jsiegler@cascadiacapital.com
Beverage Advisory Leadership Team
Townsend Ziebold
Managing Director
(917) 941-1987
tziebold@cascadiacapital.com
Nicole Fry
Managing Director
(323) 486-8121
nfry@cascadiacapital.com
Recently Closed Food & Beverage Transactions
has been
recapitalized by
March2018
has received a minority
investment from
July 2017
has been acquired by
August 2017

S E C T I O N I
Market Observations

Strategic Acquisitions Tapering After
Period of Elevated Activity
3
▪ After a period of heightened strategic M&A activity, many strategic buyers have slowed their M&A activity while trying to digest assets purchased over
the last few years. The contraction of the strategic buyer universe could lead to reduced competition and tapering valuations in the lower middle
market, absent private equity’s ability and willingness to fill the void
▪ The narrative that big CPG must buy emerging innovation is colliding with activist investor pressure to more rapidly transform, resulting in challenger
brand deals attracting less interest due to size and valuation expectations
– Large strategic buyers are placing bigger bets – Blue Buffalo, Ainsworth Pet Nutrition, Pinnacle Foods, Amplify Snacks – in an effort to move the
needle on growth, profitability and relevance
– A number of emerging brands previously acquired at premium values have now been written down due to their inability to meet growth
projections, furthering pressure on acquirers to focus on the next generation of scaled businesses
▪ However, with cash reserves and private equity dry powder at a record high and with emerging brands continuing to take market share, the record
levels of activity in food M&A seen in recent years will likely continue for the foreseeable future, with volume shifting between buyer segments
– Middle market private equity is becoming a more likely path to exit for emerging food brands, correspondingly impacting valuations are forcing
operators to balance growth and profitability
– A number of Tier II strategic CPG companies have sat on the sidelines as valuations soared, but will become more interested in emerging food
M&A opportunities at the right price
Source: S&P CapIQ, Pitchbook, Company Press Releases
Note: Q1 2018 includes Keurig / Dr. Pepper deal
$1.8 $1.9 $1.5
$4.5
$0.2
$6.5 $5.3
$11.8
$36.3
$16.2
$9.2
70
64
72
68
35
58 59
74
50
57
19
0
20
40
60
80
$0.0
$10.0
$20.0
$30.0
$40.0
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Strategic Value
Strategic Deals
Strategic Food & Beverage M&A Investment Over Time ($BN)

U.S. Food Manufacturers Are Listening
to Consumers
4
In an effort to gain access to challenger brand DNA without paying premium buyout prices, Corporate VCs are
filling the void for growth capital
▪ After experiencing a surge in venture capital investment between
2012 to 2015, consumer venture investors have become far more
selective when assessing food start-up investments, leading to a
clear delineation of the haves and have-nots in the industry
▪ Although venture capital investment has slowed, differentiated and
high growth challenger brands are still expected to continue
capturing market share from established food brands as consumers
increasingly demand innovation and healthier, fresher options
▪ However, sifting through the abundance of opportunities to identify
the categories, products and brands with break-out potential is
becoming increasingly difficult amongst a sea of competition
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Deal Count
Invested Capital
US Venture Capital Deal Value ($BN) and Count
General Mills was one of the first major food companies in the U.S. to
launch its venture capital investment arm. Early investments in Beyond
Meat (plant-based meat) and Kite Hill (plant-based yogurt) have
experienced solid growth and gained brand recognition
Campbell’s launched its $125MM venture arm, Acre Venture Partners, in
February 2016. The fund deployed capital relatively rapidly in 2016 and
2017 and invested in many businesses well beyond the boundaries of
traditional packaged food products
Kellogg launched its $100MM venture capital fund, Eighteen94, in June
2016. Its consumer-facing investments (Kuli Kuli's moringa powder and
Bright Greens' frozen smoothie cubes) have experienced mixed results
Kraft Heinz recently joined the movement and launched its own incubator,
Springboard, in 2018. Its inaugural class of five start-ups included South
African beef jerky and egg-white chips. Beyond Springboard, Kraft also
launched Mealtime Stories, a joint venture with Oprah Winfrey, in 2017
Sources: Alliance Bernstein, Fortune

The Sweet Earth acquisition
diversifies Nestlé’s frozen
portfolio and gives entry into
the rapidly growing plant-
based foods segment
Freezer Aisle Making a Comeback
5
▪ Frozen food volumes grew 1.5% in 2017, with total U.S. sales of $53BN.
Innovative and better-for-you offerings are bringing the younger
generations of consumers back to the freezer aisle
▪ While frozen foods seem out of step with fresh and functional food
trends, they offer convenience, portion control, fewer preservatives,
and less waste than other dining options with new options
incorporating organic, vegan and more diverse ethnic attributes
▪ Through 2018, frozen vegetable sales have seen an impressive 4.5%
surge, a large increase from the (2.0%) slide in 2017. Along with plant-
based alternatives, the upwards momentum in frozen vegetable sales is
driven by increasingly popular vegetarian and vegan lifestyles,
combined with Millennial demand for speed and convenience
(4.5%)
(3.0%)
(1.0%)
0.5%
1.5%
(5.0%)
(4.0%)
(3.0%)
(2.0%)
(1.0%)
0.0%
1.0%
2.0%
2013 2014 2015 2016 2017
Source: Cascadia Capital, RBC research reports
YoY U.S. Sales Change in Frozen Meals ‘13 – ‘17
Consumer appetite for the freezer aisle is heating up and displays trends that mirror the health-focused movement
that has altered the landscape of other grocery aisles over the last decade
The combined Pinnacle and
Conagra portfolios create an
industry leader in the
revitalized frozen foods
segment
▪ Brazi Bites is a leading U.S. producer of naturally
gluten-free Brazilian-style cheese bread and has
emerged as a key player in the food industry’s
rapid evolution towards “clean-label,” offering
convenient, delicious, wholesome products
▪ In July of 2018, the Company announced its
partnership with San Francisco Equity Partners
(SFEP), which focused on development of new
businesses around the strength of the founding
team that has been leading a movement among
consumers toward authentic, ethnic, better-for-
you frozen food offerings
Has Been Acquired ByHas Been Acquired By

Meal Kits are Struggling While DTC
Brands Thrive
6
Meal-kits ushered in a new age of fresh options but one should not
confuse popularity with profitability
▪ The meal-kit business is incredibly capital intensive and involves
customer acquisition subsidization, requiring companies to secure
substantial funding to start, grow and maintain a business, which often
times has too many unknown variables
▪ Meal-kit companies have yet to find success in retaining acquired
customers, with users rarely maintaining subscriptions for longer than six
months because of market saturation and discounted welcome offers
‒ Additionally, consumers have become overwhelmed by the number of options
and the upfront commitment, and tend to end up reverting to the norm of
grocery stores runs as their primary source of nutrition acquisition
▪ Companies such as Blue Apron have tried to stem customer attrition by
partnering with traditional food retailers, typically at a discount to online
offerings, which further reduce already slim margins
Meal-kits broke down the barriers for online product acquisition, but
independent products with clearer points of differentiation are garnering
the most traction from consumers customizing their own routines through
ecommerce
▪ In contrast to meal-kits, where the experience and product can often be
replicated, DTC brands have been rewarded for building a crystal-clear
brand positions and value propositions that resonates with consumers
before launching expensive distribution efforts
▪ As new entrants continue to flood the food and beverage landscape,
grocery buyers are increasingly overwhelmed with options and less
inclined to change performing sets. Further changes at Whole Foods
Markets, the previous launchpad for new offerings, impacts the roadmap
for how to scale new challenger brands
▪ Creative entrepreneurs are taking brand incubation away from the grocer
through direct sales online, and are scaling quickly and profitably in the
process, especially in emerging categories where the speed of digital helps
▪ However, brands should heed warning that filling a pantry with individual
online transactions isn’t sustainable: leveraging the points of
differentiation that drove success online into a wholesale model will be
imperative to build barriers before imitators arrive
▪ Additionally, experienced online retailers, such as Amazon, are pushing the
cost of loyalty programs back to brands, as another form of paid
promotional services, impacting margins of all product participants
Consumer preference for a simple but personalized food experience should spur growth for leaders in the meal-kit
market, but the crowded and capital intensive nature of the space has made sustained growth difficult to capture
Sources: Supermarket News, VC Café, Alliance Bernstein and CoreSight Research
Year-to-Date Public Meal-Kit Stock Performance
(85.0%)
(55.0%)
(25.0%)
5.0%
35.0%
Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18
S&P 500
HelloFresh
Blue Apron Holdings
1.7%
(12.3%)
(73.1%)

Consumer Demand Driving Innovation
Trends with Manufacturers
7
The manufacturing landscape within the food and beverage industry is adapting to new consumer preferences and
demands through technological advancement and innovation in every step of the production process
Sustainability
Consumers looking for brands that share
their commitment to environmental
sustainability and are taking steps to
optimize energy and water consumption
throughout the production process
Production Transparency
Consumers are demanding to know more
about how their food made it to the shelf,
moving the industry beyond clean labeling
and now requiring traceability in every step
of the supply chain
Social Transparency
Consumers yearn to connect with the
brands they use and consume, increasingly
preferring presentation, packaging, and
marketing that tell a story about the
product and its journey to their home
Automation:
▪ Consumer demands, rising labor costs and increased regulations have pushed the manufacturing industry towards automation and innovative
solutions to create a more efficient, cost effective and sustainable processes
Blockchain:
▪ Leveraging blockchain technology to aggregate information across the supply chain in a secure, decentralized fashion, enabling consumers to
quickly and accurately trace products back to their source and provide greater transparency
▪ Walmart announced that they will require all fresh, leafy greens suppliers to implement digital, end-to-end traceability of their products using
blockchain by September 2019
▪ Increased adoption of distributed ledger technology allows brands display their values and back them up with data
Sources: Food Dive, Food Engineering, Food Business News and Fortune
Innovation and Technological Advancements Have Supported Higher Efficiency and Safety

Consumer interest has shifted to food and beverages products that are certified as being made with organic
ingredients and whose better-for-you attributes are obvious. The market has grown rapidly since the organic labeling
program began, and it has captured the attention of ingredient manufacturers interested in serving the market
Ingredient Innovation Pushing Product
Development and Quality
8
$20.4 $21.3 $23.0
$25.2
$28.0
$31.4
$35.1
$39.0
$42.5
$45.2
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
▪ The overall industry shift of consumers wanting traceable clean label
and minimally processed products has led to the demand for organic
ingredients. Even as the organic food market is expected to see a
steadier pace of growth as it matures, it will likely continue to surpass
the growth rate of the broader food market
▪ As the organic market has evolved from single ingredient staples (i.e.
milk, fruits, vegetables) to the production of processed products,
ingredient manufacturers have been developing ingredients that
meet organic labeling standards and improve the organic products
that undergo harsh process conditions
▪ Rapidly changing consumer preferences have pushed product and
ingredient innovation to deliver functional benefits, addressing
consumer conditions (i.e., lactose intolerance, Celiac), concerns over
health benefits, and the demand for plant-based protein alternatives
▪ Global product launches of meat alternatives with pea protein
increased 35% from 2013 to 2017. Protein from rice, fava beans,
potatoes, and lentils also are appearing in meat alternatives
▪ With global popularity and demand for plant-based options, there has
been significant improvement in the texture, taste and nutrition of
these products. While soy protein and wheat protein still dominate the
market, chickpeas, oats and ancient grains are some popular
ingredients being leveraged to deliver improved gluten-free options U.S. Sales of Organic Food Products Continue to Rise
Banza is a chickpea
alternative to
traditional pasta,
touting the same
texture and taste of
wheat pasta, but
with more protein
and fiber and less
carbohydrates.
($ in billions)
Sources: Food Dive, Food Engineering and Food Business News
Hippeas is a
natural, gluten-
free chickpea
snack which offers
the familiar
‘crunch’ that
consumers cherish
with an appealing
nutritional profile.

S E C T I O N I I
Transaction Highlights

Select Transactions Altering the
Landscape
10
Pinnacle Foods is Acquired by Conagra Brands
▪ Pinnacle is a leading manufacturer and marketer of high-quality branded food
products, with a mission of unleashing brand potential
▪ The transaction aligns with Conagra’s three-year strategic initiative to become a
pure-play, branded food company by significantly expanding Conagra’s snack
and frozen food brand portfolio
Key Metrics
Announced Date: Jun 2018
EV: $10.8BN
EV / Revenue: 3.4x
EV / EBITDA: 15.8x
J.M. Smucker U.S. Baking Business is Acquired by Brynwood Partners
▪ The J.M. Smucker U.S. baking portfolio includes the Pillsbury, Hungry Jack,
White Lily, Jim Dandy, and Martha White Brands
▪ The carved-out entity formed by Brynwood, named the Hometown Food
Company, will serve as a platform to invest and grow the former J.M. Smucker
brands as well as potential future acquisitions of bakery-related assets
Key Metrics
Announced Date: Jul 2018
EV: $375MM
EV / Revenue: 1.0x
EV / EBITDA: NA
Tate’s Bake Shop is Acquired by Mondelez
▪ Tate’s is a nationally acclaimed brand of delicious baked goods with a specialty
bake shop located in Southampton, New York
▪ The purchase of Tate’s gives Mondelez an entry-point into the fast-growing
premium cookie segment with a unique and authentic portfolio of delicious
products with a strong brand
Key Metrics
Announced Date: May 2018
EV: $500MM
EV / Revenue: 7.4x
EV / EBITDA: NA
Key Metrics
Announced Date: Sept 2018
EV: $420MM
EV / Revenue: 4.7x
EV / EBITDA: 15.0x
Key Metrics
Announced Date: Oct 2018
EV: $1.8B
EV / Revenue: 0.8x
EV / EBITDA: 13.4x
Greencore is Acquired by Hearthside Food
▪ Greencore is a leader in frozen contract packaging and a top producer of
refrigerated, fresh-made sandwiches, entrees, and salad kits
▪ The acquisition of will expands and diversifies the Hearthside network to 38
production facilities and bolsters innovation and R&D capabilities in frozen,
refrigerated and fresh sandwiches/entrées
Pirate Brands is Acquired by Hershey’s
▪ Pirate Brands is home to Pirate’s Booty, a leading and fast-growing brand within
the $2.5BN cheese puffs category
▪ Pirate Brands will operate within Amplify, Hershey’s better-for-you snacking
division, which is focused on driving growth in the warehouse snacking aisle
with unique product flavors and forms like Skinny Pop and Oatmega
Sources: S&P CapIQ, Company Press Releases

Select M&A Transactions
11
($ in millions, except per share data) Industry Enterprise EV /
Date Target Name Acquiror Name Target Business Description Class Value Revenue EBITDA
10/15/2018 Mountain Valley Spring DSS Group, Inc. Mountain Valley Spring produces and delivers bottled spring water Non-alcoholic Beverages $78.5 1.6x 10.3x
10/15/2018 Greencore Us Holdings DSS Group, Inc. Greencore US is a provider of contract packaging services and producer of convenience
foods
Private Label Food and
Beverage
$1,075.0 0.8x 13.4x
10/11/2018 Slim-Fast Glanbia, plc. Slim-Fast produces food products for weight management and health improvement Non-alcoholic Beverages $350.0 1.7x 14.6x
10/01/2018 Mars Drinks North
America
Luigi Lavazza S.p.A. Mars Drinks North America offers specialty single serve coffees, teas, and hot
chocolate drinks for offices in the United States and Canada
Non-alcoholic Beverages $650.0 1.9x NA
09/27/2018 Core Nutrition Keurig Dr Pepper Inc. Core Nutrition produces organic beverages and bottled water Non-alcoholic Beverages $525.0 2.6x NA
09/12/2018 Pirate Brands The Hershey Company Pirate Brands manufactures snack products within the "better-for-you" market Snacks $420.0 4.7x 15.0x
08/31/2018 Costa Limited The Coca-Cola Company Costa Limited operates a chain of coffee shops in the United Kingdom and
internationally
Non-alcoholic Beverages $5,065.0 2.8x 15.4x
08/20/2018 SodaStream
International
PepsiCo SodaStream International manufactures, distributes, and sells home beverage
carbonation systems
Soft Drinks $3,173.6 5.3x 26.0x
08/01/2018 Jamba FOCUS Brands Jamba owns, operates, and franchises Jamba Juice stores Non-alcoholic Beverages $195.8 2.8x NM
07/09/2018 The J. M. Smucker
Company (U.S. Baking
Business)
Brynwood Partners U.S. Baking Business Of The J. M. Smucker Company comprises baking products
producing business, including Pillsbury, Hungry Jack, White Lily, Jim Dandy, and
Martha White brands
Branded Processed Foods $375.0 1.0x NA
06/27/2018 Pinnacle Foods, Inc. Conagra Brands, Inc. Pinnacle Foods manufactures, markets, and distributes branded convenience food
products in North America. It operates through four segments: Frozen, Grocery,
Boulder, and Specialty
Branded Processed Foods $10,777.9 3.4x 15.9x

Select M&A Transactions (cont’d)
12
05/23/2018 Shepherd Gourmet
Dairy (Ontario)
Saputo, Inc. Shepherd Gourmet Dairy is a Canadian producer of dairy products Dairy $78.3 1.8x NA
05/17/2018 Zipfizz Corp. KUC Holding Co. Zipfizz engages in the production and distribution of energy and sports drink tubes in
the United States
05/06/2018 Tate's Bake Shop, Inc. Mondelez International,
Inc.
Tate’s Bake Shop is a producer of premium bake goods and cookies Snacks $500.0 7.4x NA
05/03/2018 SarPes Beverages Harvest One Cannabis SarPes Beverages manufactures sleep and relaxation water-based beverages. It offers
Dream Water, water that helps users to relax and fall asleep
04/26/2018 Old Orchard Brands Lassonde Industries Old Orchard Brands produces fruit juices. It offers bottled juices, fruit juice
concentrates, and frozen juice concentrates
Non-alcoholic Beverages $156.0 1.5x 9.9x
04/17/2018 Hearthside Food
Solutions
Charlesbank Capital
Partners
Hearthside Food Solutions provides contract manufacturing services for baked goods
and snack foods
04/09/2018 National Beef Packing
Co. LLC
Marfrig Global Foods S.A. National Beef Packing engages in processing, packaging, and delivering fresh and
frozen beef and beef by-products in the United States and internationally
Meats $2,300.0 0.3x 4.4x
04/04/2018 Ainsworth Pet Nutrition The J. M. Smucker
Company
Ainsworth is a leading producer, distributor, and marketer of premium pet food and
pet snacks
Pet Food $1,900.0 2.4x 13.9x
03/31/2018 C.H. Guenther & Son,
Inc.
PPC Partners C.H. Guenther & Son produces branded and private-label food products for food
services, quick-serve restaurants, club and retail customers
Beverage
$1,400.0 1.8x NA
02/22/2018 Blue Buffalo Pet
Products, Inc.
General Mills, Inc. Blue Buffalo Pet Products operates as a pet food company in the United States,
Canada, Japan, and Mexico. It develops, produces, markets, and sells dog and cat food
under the BLUE Life Protection Formula, BLUE Wilderness, BLUE Basics, BLUE Freedom,
and BLUE Natural Veterinary Diet lines names.
02/21/2018 NutraDried LLP EnWave Corp. NutraDRIED produces cheese snacks. Its products include cheddar cheese, gouda
cheese, and Monterey jack cheese with jalapeño peppers

13
02/20/2018 Del Monte Canada, Inc. Bonduelle SA Del Monte Canada produces canned fruits, refrigerated fruits, and canned tomatoes
and vegetables
Fruit and Vegetable $34.2 0.7x NA
02/12/2018 Crystal Rock Holdings Cott Corp. (Canada) Crystal Rock produces, markets, and distributes bottled water to homes and offices in
New England, New York, and New Jersey. The company also distributes various
coffee, tea, and other hot beverage products
Non-alcoholic Beverages $34.8 0.6x 8.0x
02/06/2018 Mann Packing Co. Del Monte Fresh Produce
N.A.
Mann Packing offers fresh-cut and commodity vegetables for retail, wholesale, and
foodservice marketplaces
Fruit and Vegetable $361.0 0.7x NA
02/01/2018 Dole Food Co. Total Produce Plc Dole Food engages in growing, sourcing, processing, marketing, and distributing fresh
fruits and vegetables to wholesale, retail, and institutional customers
Fruit and Vegetable $666.7 0.2x 2.8x
01/29/2018 Dr Pepper Snapple
Group, Inc.
Keurig Dr Pepper Inc. Dr Pepper Snapple is a major US-based producer of soft drinks and non-alcoholic
beverages
Soft Drinks $26,801.0 4.0x 18.0x
01/24/2018 Galaxy Nutritional
Foods
GreenSpace Brands Galaxy Nutritional Foods produces plant-based cheese-free products Branded Processed Foods $16.9 1.0x NA
01/12/2018 Bob Evans Farms Post Holdings, Inc. Bob Evans Farms produces and distributes food products for grocery retailers
throughout the US
12/18/2017 Snyder's-Lance, Inc. Campbell Soup Co. Snyder's-Lance engages in the manufacture, distribution, marketing, and sale of snack
food products in North America and Europe
12/17/2017 Amplify Snack Brands Hershey Amplify Snack Brands develops, markets, and distributes better-for-you snack
products in North America and internationally
Snacks $1,503.0 4.0x 18.5x
12/12/2017 Betin, Inc. Saputo, Inc. Betin, doing business as Montchevre, produces and sells goat cheese Dairy $263.9 2.3x NA
12/12/2017 Pacific Foods of Oregon Campbell Investment
Company
Pacific Foods of Oregon produces natural and organic food products; the company
offers broths and stocks, soups, meals and sides, sauces and purees, non-dairy
beverages, and special diets

14
11/30/2017 Squirrel Brand LP John B. Sanfilippo & Son,
Inc.
Squirrel Brand produces roasted and flavored nuts Branded Processed Foods $31.5 0.9x NA
11/30/2017 Field Roast Grain Meat
Co.
Maple Leaf Foods Inc. Field Roast Grain Meat produces and markets vegan meat products Meat $120.0 3.2x NA
11/10/2017 Original Philly Holdings,
Inc.
Tyson Foods, Inc. Original Philly Holdings through its subsidiaries, produces raw and fully-cooked Philly-
style sandwich steak and cheesesteak appetizer products
Meats $226.0 1.7x NA
11/02/2017 Tazo Tea Company Unilever Plc. Tazo Tea offers tea and herbal beverages; the company provides filter bags, full leaf
tea kits, tea lattes, and iced teas
11/02/2017 Richelieu Foods, Inc. Süddeutsche
Zuckerrübenverwertungs
Genossenschaft
Richelieu Foods engages in the production of private label food products for retail,
corporate brands, and contract packing customers
Beverage
$435.0 1.3x NA
10/27/2017 Chicago Bar Company Kellogg Company Chicago Bar Company, doing business as RXBAR, produces and sells food protein bars
in the United States. The company offers food protein bars in various flavors
10/26/2017 Inventure Foods, Inc. UTZ Quality Foods Inventure Foods manufactures and markets healthy/natural and indulgent specialty
snack food products in the United States and internationally; operates in two
segments, Frozen Products and Snack Products
Snacks $137.8 0.9x NA
10/16/2017 East Balt, Inc. Grupo Bimbo, S.A.B. East Balt produces buns, bagels, English muffins, tortillas, breads, and specialty bakery
products
Branded Processed Foods $650.0 1.6x 9.3x
10/16/2017 Ferrara Candy Co. Ferrero SpA Ferrara Candy Company manufactures and sells candies, snacks, and gummy bears Confections $1,300.0 1.5x NA
10/06/2017 Omega Protein
Corporation
Cooke, Inc. Omega Protein develops, produces, and delivers products to enhance the nutritional
integrity of foods, dietary supplements, and animal feeds worldwide
Meat $473.6 1.4x 7.8x
10/03/2017 Main on Foods (USA) Nagatanien Holdings Co. Main on Foods, based in Los Angeles, produces and markets food products Branded Processed Foods $54.1 1.0x NA

15
10/02/2017 Boyd Coffee Company,
Inc.
Farmer Bros. Co. Boyd Coffee Company produces and sells roasted coffee Coffee $58.6 0.6x NA
10/01/2017 Tinhorn Creek
Vineyards Ltd.
Andrew Peller Limited Tinhorn Creek Vineyards produces red and white wines in Canada Alcoholic Beverages $23.8 4.1x NA
09/21/2017 Angie's Artisan Treats,
LLC
Conagra Brands, Inc. Angie's Artisan Treats produces and sells popcorns and other snack items. Branded Processed Foods $250.0 2.5x NA
Max $26,801.0 7.4x 26.9x
Median $420.0 1.8x 14.2x
Mean $1,753.2 2.4x 14.5x
Min $3.7 0.2x 2.8x

S E C T I O N I I I
Public Comparables

Food and Beverage Performance
17
7.0x
9.0x
11.0x
13.0x
15.0x
17.0x
19.0x
October 2017 December 2017 February 2018 April 2018 June 2018 August 2018 October 2018
Alcoholic Beverages Branded Processed Foods Private Label Food and Beverages
Natural / Organic / Better-For-You Baked Goods Dairy
Snacks Non-Alcoholic Beverages
8.9x
10.6x
10.5x
12.7x
13.6x
16.0x
14.2x
17.5x

($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA
Company 10/25/18 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM
Alcoholic Beverages
Anheuser-Busch InBev $73.75 $144,315 $258,279 $55,002 $21,534 (1.9%) 7.0% 63.0% 39.2% 21.9x 4.7x 4.6x 12.0x 11.0x
Asahi Group Holdings 42.15 19,308 28,621 19,113 2,876 20.9% 5.5% 38.4% 15.0% 16.6x 1.5x 1.7x 10.0x 10.0x
Brown-Forman 47.08 22,298 24,573 3,291 1,122 7.7% 1.7% 67.8% 34.1% 36.2x 7.5x 7.2x 21.9x 20.9x
C&C Group plc 3.89 1,203 1,522 623 115 87.9% 17.5% 27.7% 18.5% 21.5x 2.4x 0.8x 13.2x 9.9x
Carlsberg A/S 109.33 16,617 19,789 9,390 2,010 (1.5%) (1.7%) 51.4% 21.4% 25.0x 2.1x 2.1x 9.8x 9.3x
Craft Brew Alliance 16.10 323 328 212 23 2.9% 2.0% 33.7% 10.7% 44.1x 1.5x 1.5x 14.5x 13.7x
Constellation Brands 214.13 40,266 50,247 7,915 4,427 6.2% 8.1% 50.7% 55.9% 18.2x 6.3x 6.0x 11.4x 15.8x
Diageo plc 34.39 83,765 97,857 15,591 5,679 0.9% 4.0% 61.9% 36.4% 29.3x 6.3x 6.0x 17.2x 16.8x
Heineken N.V. 88.66 50,606 66,906 25,387 5,390 6.1% 3.9% 38.9% 21.2% 28.9x 2.6x 2.6x 12.4x 10.9x
Kirin Holdings Company 23.41 20,554 25,297 16,162 2,602 5.1% (1.6%) 42.4% 16.1% 20.9x 1.6x 1.4x 9.7x 10.3x
Molson Coors Brewing Company 57.77 12,810 23,104 10,879 2,438 23.9% 41.4% 41.6% 22.4% 16.4x 2.1x 2.1x 9.5x 9.2x
Pernod Ricard SA 150.80 39,846 47,972 10,221 2,911 (0.3%) 1.6% 62.4% 28.5% 28.0x 4.7x 4.5x 16.5x 15.1x
Sapporo Holdings Limited 18.91 1,473 3,811 4,753 349 (2.8%) 0.7% 32.6% 7.3% 21.2x 0.8x 0.8x 10.9x 10.9x
The Boston Beer Company 270.84 3,208 3,132 917 160 3.9% (0.8%) 52.1% 17.4% 49.0x 3.4x 3.1x 19.6x 16.9x
Mean 11.4% 6.4% 47.5% 24.6% 26.9x 3.4x 3.2x 13.5x 12.9x
Median 4.5% 3.0% 46.5% 21.3% 23.4x 2.5x 2.3x 12.2x 10.9x
Branded Processed Foods
Associated British Foods plc $30.14 $23,754 $23,704 $19,847 $2,427 6.2% 6.0% 23.3% 12.2% 23.6x 1.2x 1.2x 9.8x 9.5x
B&G Foods 27.30 1,820 3,831 1,714 326 13.8% 26.0% 26.8% 19.0% 17.5x 2.2x 2.2x 11.8x 10.9x
Campbell Soup Company 38.02 11,545 21,222 8,685 1,945 10.1% 2.4% 33.6% 22.4% 13.7x 2.4x 2.2x 10.9x 11.8x
Conagra Brands 36.64 15,163 19,012 7,969 1,572 3.0% (10.8%) 29.6% 19.7% 20.8x 2.4x 1.8x 12.1x 9.3x
General Mills 44.60 26,723 43,026 16,065 3,469 3.8% (2.9%) 34.4% 21.6% 17.9x 2.7x 2.5x 12.4x 12.3x
Hormel Foods 41.58 22,343 22,798 9,514 1,360 2.3% 0.4% 20.7% 14.3% 30.6x 2.4x 2.3x 16.8x 16.2x
Kellogg Company 70.55 24,770 34,147 13,261 3,216 3.8% (2.3%) 39.6% 24.3% 16.3x 2.6x 2.5x 10.6x 13.1x
McCormick & Company 139.51 18,599 23,528 5,401 1,117 18.2% 8.2% 43.9% 20.7% 36.8x 4.4x 4.2x 21.1x 20.1x
Nestlé S.A. 83.93 257,080 287,168 90,986 18,785 1.7% (0.2%) 50.1% 20.6% 27.9x 3.2x 3.1x 15.3x 14.6x
Post Holdings 90.06 6,036 13,104 6,076 1,147 20.6% 11.5% 30.1% 18.9% 24.2x 2.2x 2.1x 11.4x 10.1x
The Hershey Company 102.47 22,641 26,789 7,696 1,921 2.6% 1.1% 44.7% 25.0% 23.7x 3.5x 3.4x 13.9x 13.9x
The J. M. Smucker Company 106.73 12,199 18,722 7,511 1,664 2.5% 5.9% 38.2% 22.2% 18.4x 2.5x 2.4x 11.3x 10.9x
Mean 7.4% 3.8% 34.6% 20.1% 22.6x 2.6x 2.5x 13.1x 12.7x
Median 3.8% 1.8% 34.0% 20.7% 22.2x 2.5x 2.4x 11.9x 12.0x
Food and Beverage Public Comps
18

19
Private Label Food and Beverages
Cott Corporation $14.63 $2,020 $3,132 $2,337 $277 9.5% (3.4%) 49.5% 11.9% 72.5x 1.3x 1.3x 11.3x 9.5x
Seneca Foods Corporation 31.18 298 656 1,377 24 6.8% 2.7% 4.8% 1.8% NM 0.5x 0.0x 27.1x 0.0x
Treehouse Foods 47.58 2,687 4,960 6,186 532 (3.7%) 24.0% 17.0% 8.6% 28.0x 0.8x 0.8x 9.3x 8.9x
Mean 4.2% 7.8% 23.8% 7.4% 50.3x 0.9x 0.7x 15.9x 6.1x
Median 6.8% 2.7% 17.0% 8.6% 50.3x 0.8x 0.8x 11.3x 8.9x
Natural / Organic / Better-For-You
SunOpta 7.54 656 1,250 1,256 52 (5.2%) 7.4% 10.8% 4.2% NM 1.0x 1.0x 23.9x 15.5x
Pinnacle Foods 66.89 8,020 10,696 3,154 668 0.8% 6.3% 29.1% 21.2% 29.2x 3.4x 3.4x 16.0x 14.8x
The Hain Celestial Group 24.78 2,594 3,201 2,458 219 4.9% (2.0%) 21.0% 8.9% 31.3x 1.3x 1.3x 14.6x 11.8x
Mean 0.2% 3.9% 20.3% 11.4% 30.2x 1.9x 1.9x 18.2x 14.0x
Median 0.8% 6.3% 21.0% 8.9% 30.2x 1.3x 1.3x 16.0x 14.8x
Baked Goods
ARYZTA AG $8.67 $779 $2,526 $3,974 $347 (9.5%) (3.5%) 15.6% 8.7% NM 0.6x 0.7x 7.3x 7.2x
Flowers Foods 19.29 4,190 4,996 3,954 438 1.3% 1.7% 48.2% 11.1% 23.4x 1.3x 1.3x 11.4x 11.1x
George Weston Limited 70.11 8,951 25,724 36,847 3,102 (0.7%) 0.8% 30.6% 8.4% 22.9x 0.7x 0.7x 8.3x 7.4x
Grupo Bimbo 2.00 8,769 13,341 14,161 1,662 4.0% 10.6% 53.0% 11.7% 19.1x 0.9x 0.9x 8.0x 9.1x
Lancaster Colony Corporation 157.25 4,430 4,224 1,223 201 2.6% 2.9% 24.9% 16.4% 40.2x 3.5x 3.3x 21.0x 19.8x
Mean (0.4%) 2.5% 34.5% 11.3% 26.4x 1.4x 1.4x 11.2x 10.9x
Median 1.3% 1.7% 30.6% 11.1% 23.1x 0.9x 0.9x 8.3x 9.1x
Dairy
Danone $72.03 $46,588 $62,302 $28,403 $6,101 8.2% 4.2% 49.3% 21.5% 16.3x 2.2x 2.2x 10.2x 11.4x
Dean Foods Company 7.87 697 1,540 7,804 288 (1.3%) (4.0%) 22.7% 3.7% 16.6x 0.2x 0.2x 5.3x 5.7x
Emmi AG 687.11 3,676 4,023 3,434 417 5.3% 1.0% 35.7% 12.1% 21.7x 1.2x 1.2x 9.6x 11.4x
Glanbia plc 16.85 4,971 5,428 2,631 396 (1.1%) (4.7%) 26.4% 15.1% 28.7x 2.1x 2.0x 13.7x 14.3x
Lifeway Foods 2.68 43 45 111 1 (10.6%) (2.5%) 27.5% 1.0% NM 0.4x 0.0x 40.3x 0.0x
Parmalat S.p.A. 2.98 5,501 5,328 7,367 423 (4.7%) 3.1% 19.3% 5.7% 51.2x 0.7x 0.0x 12.6x 9.3x
Saputo 30.32 11,963 14,079 9,141 928 4.3% 4.0% 10.2% 10.2% 27.5x 1.5x 1.3x 15.2x 13.3x
Savencia SA 74.83 1,041 1,770 5,509 298 3.4% 2.1% 33.9% 5.4% NM 0.3x 0.3x 6.0x 5.0x
Mean 0.4% 0.4% 28.1% 9.3% 27.0x 1.1x 0.9x 14.1x 8.8x
Median 1.2% 1.5% 27.0% 7.9% 24.6x 0.9x 0.7x 11.4x 10.3x

20
Non-Alcoholic Beverages
A.G. BARR $9.50 $1,074 $1,069 $365 $64 9.0% 3.7% 46.9% 17.4% 32.0x 2.9x 2.9x 16.8x 15.1x
Cott Corporation 14.63 2,020 3,132 2,337 277 9.5% (3.4%) 49.5% 11.9% 72.5x 1.3x 1.3x 11.3x 9.5x
Dr Pepper Snapple Group 24.01 33,180 46,135 4,207 1,165 0.0% (3.5%) 47.9% 27.7% 36.9x 11.0x 4.1x 39.6x 14.8x
Lassonde Industries 180.68 1,265 1,592 1,166 135 0.2% 4.1% 28.4% 11.6% 23.6x 1.4x 1.2x 11.8x 10.6x
Monster Beverage 52.61 28,742 27,871 3,587 1,304 12.4% 11.9% 61.6% 36.4% 38.0x 7.8x 7.1x 21.4x 19.5x
National Beverage 98.82 4,636 4,388 1,008 223 16.0% 15.4% 39.9% 22.1% 35.3x 4.4x 3.9x 19.7x 17.5x
Pepsico 112.66 159,451 180,773 64,663 12,714 1.8% 0.1% 54.4% 19.7% 27.0x 2.8x 2.7x 14.2x 13.6x
The Coca-Cola Company 46.47 198,739 228,090 33,143 11,998 (14.7%) (10.2%) 63.6% 36.2% 30.5x 6.9x 7.1x 19.0x 20.2x
Mean 4.3% 2.3% 49.0% 22.9% 37.0x 4.8x 3.8x 19.2x 15.1x
Median 5.4% 1.9% 48.7% 20.9% 33.7x 3.6x 3.4x 17.9x 14.9x
Snacks
J&J Snack Foods 155.99 2,929 2,805 1,154 164 12.1% 6.0% 29.8% 14.2% 37.9x 2.4x 2.4x 17.1x 16.8x
John B. Sanfilippo & Son 71.48 811 877 889 69 5.0% 0.1% 15.6% 7.7% 26.3x 1.0x 1.0x 12.8x 10.1x
Mondelez International 41.07 60,598 79,528 26,373 5,303 3.2% (6.8%) 40.3% 20.1% 24.5x 3.0x 3.1x 15.0x 15.0x
Pepsico 112.66 159,451 180,773 64,663 12,714 1.8% 0.1% 54.4% 19.7% 27.0x 2.8x 2.7x 14.2x 13.6x
Mean 5.5% (0.2%) 35.0% 15.4% 28.9x 2.3x 2.3x 14.8x 13.9x
Median 4.1% 0.1% 35.1% 16.9% 26.7x 2.6x 2.6x 14.6x 14.3x

S E C T I O N I V
Appendix – Cascadia Capital

Cascadia Capital Overview
Founded in 1999
Cascadia has a successful 18 year history
investment banking
professionals
Managing Directors in
five cities
transactions completed,
with more than $12 billion
in aggregate value
22
50
16
OVER
300
Headquartered in Seattle, with
Managing Directors in Los Angeles,
Minneapolis and New York
INDUSTRY
EXPERTISE
RESULTS
FOCUS
DEAL
VOLUME
Leading diversified
investment bank
• M&A, private placements, advisory services
• Specialized in-depth expertise across multiple
industry verticals
• Representing clients in the US and globally,
including Europe, Asia and Australia
Experienced team with
successful track record
• Cascadia is the investment bank of choice for
entrepreneurs and family-owned companies
• Decades of investment banking and operational
expertise
• Deep capital markets expertise

Providing a Full Suite of Banking Services
23
MERGERS &
ACQUISITIONS
We have completed hundreds of M&A transactions ranging in
size from $20-$500 million. Our thorough and disciplined
process, in combination with our deep industry expertise, has
resulted in a proven track record of delivering successful
outcomes for our clients.
CORPORATE
FINANCE
We have extensive experience placing equity and debt
capital ranging from $10-$250 million. We leverage our
deep relationships with institutional investors; including
private equity, growth equity, venture capital, family office,
mezzanine and venture debt, hedge funds and BDCs.
STRATEGIC
ADVISORY
SERVICES
We provide our clients with analytical data and insights to
facilitate strategic decision-making. We advise our clients on
how to maximize shareholder value and then provide support
for transaction implementation.
PRIVATE
CAPITAL
We listen carefully to business owners and managers and then
work closely with them to custom design long-term and
flexible capital solutions. Our approach resonates particularly
well with family-owned and closely-held companies.
ENGAGEMENTS INCLUDE:
• Mergers & Acquisitions (Buy & Sell Side)
• Corporate Divestitures
• Management Buyouts
• Leveraged Buyouts
• Recapitalizations
• Partial Liquidity Events
• Private Equity Capital Raises
• Public Company Capital Raises
• Debt Financings & Restructurings
• Project Finance
• Valuations
• Fairness Opinions
• Shareholder Rights Planning
• Shareholder Value Analysis
• Strategic Alternatives Reviews
• Strategic Partnerships & Joint Ventures
• Special Situations

Process and Experience Deliver Results
24
We Differentiate Each
Process With a
Customized
Approach
• We are thoughtful advisors who
deliver a tailored process to suit the
needs of our clients
• We understand the strategies of the
counterparties, enabling us to tell
them why they should be interested
– allowing Cascadia to drive the
transaction and maximize results
Team Members Have
Deep Industry
Expertise
• With bankers across multiple
industry verticals, we have the
experience to offer industry
breadth while maintaining sector
depth
• Dedicated resource model with
comprehensive vertical expertise
from Managing Director to Analyst
Our Experience
and Approach
Drive Results
• We have experience, industry
focus and a differentiated
process that drives success
• Our transactions are built upon
delivering the best quantitative
and qualitative terms with the
most desirable counterparty
$10+ billion in total M&A transactions closed in the firm’s history
$5+ billion in total capital raised in the firm’s history
Note: Transaction Values include deals closed by Consumer Managing Directors while at prior firms

Consumer & Retail Practice Overview
Principal Sector Focus
• Branded Food
• Branded Beverage
• Food and Beverage Manufacturing
• Media, Commerce & Consumer Tech
• Pet Industry
• Auto Aftermarket
25
• Restaurants & Retail
‐ Ecommerce
‐ Outdoor Sports
‐ Restaurants
‐ Specialty Retail
Auto Aftermarket
Business Services
Consumer & Retail
Energy & Applied Technology
Food & Agribusiness
Healthcare & Digital Health
Industrials
Real Estate
Technology
Acquisition of First Beverage Group
On March 5th, Cascadia Capital announced a merger with First Beverage Financial,
the investment banking division of First Beverage Group. The merger brings
Cascadia a proven and highly-specialized team with a deep focus across the
beverage landscape, including the market’s leading M&A franchise in craft beer.
This expertise in alcoholic beverages augments Cascadia’s current consumer
practice in consumer packaged goods, food and beverage manufacturing, specialty
retail, outdoor goods, restaurants, health and wellness, and the pet industry.
Overview
We have 13 professionals with greater than 100 years of collective consumer
investment banking experience that have completed over 75 transactions since
the beginning of 2010 valued at over $3.5 billion in enterprise value, including 25
capital markets transactions and 50 M&A advisory assignments. Our team has a
deep understanding of the underlying consumer trends driving disruptive change
in our core sectors of focus. We are in constant dialog with active strategic and
financial counterparties in the consumer sector, providing us with the ability to
best position our clients for an optimal outcome.
Note: Transaction Values include deals closed by Consumer
Managing Directors while at prior firms

26
March 2018
has been
recapitalized by
July 2016
a Strategic
Buyer
August 2015
August 2016September 2016
March 2016
September 2016
March 2016
July 2017
August 2016
CASCADIA’S CONSUMER TEAM HAS BEEN AMONG THE MOST ACTIVE MIDDLE M ARKET
INVESTMENT BANKS IN THE INDUSTRY, WITH OVER 50 CLOSED TRANSACTIO NS
Food & Beverage Transaction Experience
May 2016
September 2016
August 2017

Consumer & Retail Leadership Team
27
Managing Director
Experience:
15+ years banking
13 years with
Cascadia
Education:
BA, Washington
University
MBA, Wharton
Bryan Jaffe
Managing Director
Experience:
25+ years banking
5 years with
Cascadia
Education:
BA, Princeton
MBA, University
of Chicago
John C. Siegler
Managing Director
Experience:
15+ years banking
4 years with
Cascadia / First
Beverage
Education:
MBA, BA, UCLA
MS, London
School of
Economics
Nicole Nugent Fry Erik Einwalter
Senior Vice President
Experience:
10+ years banking
7 years with
Cascadia
Education:
BA, University of
Washington
Managing Director
Experience:
25+ years banking
1 year with
Cascadia
Education:
BA, University of
Cincinnati
MBA, Cornell
University
George Sent
Managing Director
Experience:
25+ years banking
7 years with
Cascadia / First
Beverage
Education:
BA, Trinity
College
MBA, Stanford
University
Townsend Ziebold

Food Industry Report Fall 2018 from Cascadia Capital

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