2. This presentation is prepared by The Pulse Beverage Corporation (the “Company”), and is solely for the purpose of corporate
communication and general reference only. The presentation is not intended as an offer to sell or to solicit an offer to buy or form any
basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or
relied on without professional advice.
The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its
current or historical operation results or its future business prospects.
The presentation contains certain forward looking statements with respect to the financial conditions, results, operations and business
of the Company. The statements and forecasts involve risk and uncertainly because they relate to events and depend on circumstances
that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those
express or implied by these forward looking statements and forecasts.
This presentation is provided without any warranty or representation of any kind, either express or implied. The Company specifically
disclaims all responsibility in respect of any use or reliance of any information, whether financial or otherwise, contained in this
presentation. The statements contained within this presentation have not been evaluated by the Food and Drug Administration. The
Company’s products are not intended to diagnose, treat, cure or prevent any disease.
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, including statements regarding the business of the Company and its industry generally, business
strategy and prospects. These statements are based on the Company’s estimates, projections, beliefs and assumptions and are not
guarantees of future performance. The Company cautions that these statements are subject to various known and unknown risks and
that actual results may differ materially from those expressed in forward-looking statements. The Company undertakes no duty to
update these forward looking statements except as required by law.
Disclaimer and Forward Looking Statements
3. Investment Profile
Exchange/Symbol: OTCQB: PLSB
As of January 22, 2013:
Shares Outstanding: 40 million
Market Cap: $30 million
Current Stock Price: $0.74
3 Month Average Trading Volume: 50,000 shares per day
Shareholders ≈ 3,000
www.pulsebeverage.com
The Pulse Beverage Corporation intends to list on a more senior exchange such as
AMEX or NASDAQ as soon as it completes a financing which will allow it to qualify
4. • The Pulse Beverage Corporation (“Pulse”) is based in Northglenn, Colorado and was
formed by successful beverage industry veterans for the purpose of exploiting niche
markets in the beverage industry
• Pulse’s mission is to be one of the market leaders in the development and marketing
of nutritional/functional beverage products that provide REAL health benefits to a
significant segment of the population and are convenient and appealing to consumers
• Pulse has assembled an outstanding management team of beverage industry
executives that have successfully launched and/or managed the distribution for more
than twenty-five major brands over the past twenty years and have strong
relationships with distributors and buyers who supply thousands of retail outlets,
supermarkets, convenience stores and mass merchants
• Pulse’s initial products consist of PULSE® Heart Health, Women’s Health and Men’s
Health Formulas and Cabana™ 100% Natural Lemonade
Company Overview
5. • The PULSE® brand of beverages was formulated under license by a major
healthcare company that spent in excess of $10 million formulating,
developing and initially marketing the PULSE® brand
• The PULSE® brand of beverages was formulated to be scientifically effective
by containing ingredients that are widely considered to be critical to adult
health including liposome nanotechnology that introduces the ingredients
into the beverage in a format that allows the body to absorb the nutrients
• Pulse has free and clear ownership of the formulations, rights and
trademarks relating to the PULSE® brand of beverages including the right to
use the following Side-Panel Statement for PULSE® formulations for Pulse® -
Men’s Health Formula™, Pulse® - Women’s Health Formula™ and Pulse® -
Heart Health Formula™ : “Formulation developed under license from Baxter
Healthcare Corporation”. This right is in perpetuity without royalties
Initial Development and Acquisition
6. • Non-alcoholic beverages are among the most widely distributed food products in the
world and are being sold through more than 400,000 retailers in the United States
• The United States has more than 2,600 beverage companies and 500 bottlers of
beverage products. Collectively they account for more than $105 billion in annual
sales. It is estimated that globally more than $300 billion worth of non-alcoholic
beverages are sold annually. The beverage market is controlled by two giants, Coca-
Cola and Pepsico controlling over 70% of the beverage market
• Industry watchers and the beverage giants believe that growth will be largely confined
to niche nutritional and functional beverages which are non-carbonated
• Coca-Cola has stated that they are searching for another billion dollar brand and is
betting that the next big beverage will be a niche product. Coca-Cola’s VEB group is
hoping to cultivate the next billion-dollar brand and has identified PULSE® as the
direction the market is going. Coca-Cola has stated that one million cases and/or $20m
in revenues is their “proof of concept” benchmark
• It is common for these industry giants to acquire successful brands from smaller
companies, typically for a negotiated multiple of sales revenues. It is our goal to have
one or more of our brands in a position to be acquired
The Beverage Industry and Market
7. The PULSE® brand is NOT an emerging growth brand as in excess of $10 million was spent
by a major healthcare company developing and extensively and successfully test
marketing the PULSE® brand in Chicago and Phoenix
Pulse has assembled a professional team of beverage industry experts, each having over
25 years of experience in the beverage industry:
• Robert Yates, CEO, was a major contributor to the success of the CLEARLY CANADIAN
beverage brand at a time when he was responsible for $50m of their $178 million in
annual sales and went on to develop and successfully launch his own KWENCHER®
brand building it into 1.7 million cases in 2 years
• Paddy Sheya, National Sales Manager, has worked with Robert Yates for over 18 years
and owned his own beverage company
• Ron Kendrick, Chief of Product Development was the Vice President of Operations
and Product Development for Clearly Canadian for over 17 years and was
instrumental in developing the PULSE® line of products for Baxter Healthcare
• Bruce Horton, Advisory Board Member, was the CFO, Director and Co-founder of
Clearly Canadian. Under his tenure, sales grew from zero to $178 million
Comparison to Other New Beverage Companies
with Emerging Growth Brands
8. KEY TO SUCCESS is Pulse’s ability to rapidly develop a distribution network to distribute its
beverage brands. Beverage companies that fail generally fail because they didn’t have the
contacts and experience to rapidly build a distribution network
The VEB unit of Coca-Cola has expressed to Pulse Management that the beverage industry is
trending to the niche beverage products such as PULSE®. VEB has expressed that nutraceutial
beverages that are scientifically formulated, having sufficient dosages of active ingredients to
help maintain or make a difference to your health is where the beverage industry is trending
quickly
The PULSE® brand is 2 to 3 years ahead in development compared to other “emerging” brands
for the following reasons:
Scientifically developed PULSE® brand has had in excess of $10 million spent on
product formulation and extensive and successful test marketing
Seasoned management team each having 25+ years in the beverage industry with
proven track records
VEB unit of Coca-Cola’s expressed interest in the PULSE® brand
An existing extensive distribution network which is expanding across North America
and Internationally - A MAJOR KEY TO SUCCESS
Comparison to Other New Beverage Companies
with Emerging Growth Brands Continues…..
9. Prominent Industry Acquisitions
Vitamin Water® - Coca-Cola® purchased Vitamin Water® for a reported $3.4 billion when
they were selling approximately 10 million cases per year and had approximately $200
million in sales
SOBE® - Pepsi-Cola® purchased SOBE® for a reported $378 million when they were selling
approximately 3 million cases per year and had approximately $60 million in sales
FUZE® - Coca-Cola® purchased FUZE® for a reported $300 million when FUZE®, at the time,
was selling approximately 7 million cases per year and had approximately $140 million
in sales
Rock Star Energy Drink® - Coca-Cola® purchased the distribution rights for an undisclosed
amount and owns the right of first refusal to purchase the Rock Star Energy Drink®
brand which is currently selling approximately 8 million cases per year
Arizona Iced Tea® - turned down an offer from Coca-Cola® for $2.1 billion. At the time of
the offer, Arizona Iced Tea® was selling approximately 25 million cases per year and
$500 million in sales
Honest Tea® – Coca-Cola purchased this brand in for a reported $400 million when it was
selling approximately 1.4 million cases per annum
10. Product Mix
• Pulse’s products are targeted at the nutritional and functional beverage segment
of the non-carbonated beverage market which Pulse believes has a potential
market size in excess of $1 billion in sales annually
• Non-carbonated beverages divide into a number of categories including energy
and sports drinks, nutraceuticals, lemonades, teas, juices and bottled water. These
beverage categories include a host of products that are fortified with vitamins,
minerals and dietary supplements
• Pulse’s product mix is calculated to exploit niches that have been identified as
either unoccupied or have yet to attract significant attention such as all-natural
lemonades and nutritional/functional beverages
• PULSE® brand of beverages are formulated and aimed at providing functional
ingredients to specific health platforms. Pulse has recently improved the original
Pulse® formulations by reducing the calories to not more than 55 calories per 8oz.
serving
11. Product Mix
Pulse® brand of nutritional and functional beverages may be the only niche beverage line
that has sufficient dosages of active functional ingredients to help maintain health and is
presently comprised of three nutritional beverages in three functional health platforms:
Pulse® - Men’s Health Formula™, Pulse® - Women’s Health Formula™ and Pulse® - Heart
Health Formula™ all in great tasting low calorie flavors
12. Pulse® - Men’s Health Formula™
Pulse® - Men’s Health Formula™ is a unique combination of
nutritional ingredients loaded with a variety of powerful
antioxidants that scavenge free radicals in our bodies
While it is designed to support areas such as prostate
health in particular, the combination of green tea
catechins, vitamins E & C, lycopene and selenium help men
maintain a counter attack in the battle against free radical
damage to their bodies
Free radicals are associated
with aging, cardiovascular
problems, cancer and
other health concerns for
the modern man
13. Pulse® - Women’s Health Formula™
Pulse® - Women’s Health Formula™ is a convenient
nutritional beverage designed specifically for women.
Our ability to be active and healthy is directly affected by
the strength of our bodies
Pulse contains meaningful levels of
the key ingredients that work in
concert to enhance bone health
throughout our lives – calcium,
magnesium and Vitamin D
Additionally, these ingredients coupled with folic acid
and other B vitamins help women prepare for
pregnancy while soy isoflavones can help buffer
symptoms of menopause
No matter the stage of life, Pulse helps you meet life head on
14. Pulse® - Heart Health Formula™
Pulse® - Heart Health Formula™ contains safe and
effective levels of a number of important heart and
health friendly nutrients in a great tasting beverage
It has vitamin C and selenium, both of
which are important nutrients to help
maintain the health of your heart
Pulse® - Heart Health Formula™ is
an excellent source of dietary fiber
which helps to maintain healthy
cholesterol levels within the normal
range
15. Cabana™ 100% Natural Lemonade
Cabana™ 100% Natural Lemonade is a refreshing, all-natural, “good-for-you”, ready-
to-drink lemonade in five distinct and great tasting flavors, offering a significant
reduction in calories, only 60 calories and 12 grams of sugar per 8oz serving and no
artificial sweeteners or coloring. To sweeten and reduce calories Pulse uses stevia, a
South American herb used as a natural sweetener
16. The Lemonade Market
• Lemonade is America’s second favorite juice drink
• 89% of juice drinkers consume lemonade – 36% as favorite
• 56% of all teenagers prefer lemonade in the juice category - African
Americans 66%, females 61%
• 52% of all people purchase a drink contained in a glass bottles - the
highest of any packaged container for a beverage The Lemonade
Category in 2010 was a $350m business, up 32% from 2009
• Simply Lemonade is the leader in the category at $155m in sales in
2010, up 91%
• Calypso sales were up 51% to $15m
• Tropicana Lemonade grew at 233%
17. Media Commentary on Lemonade Market
“Lemonade, that quintessential summertime drink, is becoming a
drink for all seasons. No longer resigned to backyard barbecues
and ball games, the category has seen a surge in year-round
consumption. Consumer demand for the beverage drove sales of
single serving bottles to $154 million over the last 52 weeks, up
11.3 percent over the same period in 2010, according to
Symphony/IRI data”
Ray Latif, BevNet Magazine, September 13, 2011
“Bell Flavors & Fragrances, Northbrook, Ill., forecasted the Top 10
flavors for the food and beverage industry in 2012. The No. 1
beverage flavor on the list was Lemonade”
BevNet Magazine, December 19, 2011
18. Pulse® Heart Health, Women’s Health and Men’s Health Formulas
Glaceau Vitamin Water - Numerous beverages/flavors, zero calories, mostly trace amounts of vitamins and
elements
SoBe Lifewater - Numerous beverages/flavors, varying calories, mostly trace amounts of vitamins and
elements
Function Drinks - Three beverages/seven flavors, emphasis on detox/weight loss/energy, various
antioxidants
Neuro - Eight beverages/formulations/flavors, lightly carbonated, proprietary blends and vitamins
Cabana™ 100% Natural Lemonades
Calypso - distributed in only 30% of the US market, leading brand, Five flavors, 20oz glass bottle, high in
calories with artificial coloring
Arizona Iced Tea - One flavor (lemonade/tea aka “Arnold Palmer”), 24oz can
Country Time Lemonade - One flavor, 12oz can, high in calories
Simply Lemonade - One flavor, 13.5oz plastic bottle, natural lemon juice, high in calories
Huberts Lemonade – all natural lemonade in a 16 oz bottle
Competitive Landscape
19. Market Environment
• Societal shift away from carbonated beverages - The PULSE® brand is supported by a growing consumer
link between nutrition and wellness in convenient solutions
• Emergence of new product categories - energy and sports drinks, teas, juices, flavored waters, functional
drinks and lemonades
• Aging population – influencing the food and beverage industry and affecting everything from packaging
and taste profiles to calories and contents
• Pulse’s targeted demographics are 30+ adults who want to feel 30+ for the rest of their lives
Differentiators
• Pulse’s goal is to create a new functional product category that is focused on providing true and
meaningful health and wellness benefits in a convenient, enjoyable and good tasting format
• Proprietary formulations and scientifically effective in the recommended serving sizes as part of a daily
health regimen
• PULSE® formulas include functional ingredients that are widely considered to be critical to adult health
including anti-oxidants, vitamins, minerals, soluble fiber and soy isoflavones. Liposome nanotechnology
to deliver non-water soluble “actives” ingredients to the body
• Cabana™ Lemonades are 100% natural, low calorie, and uniquely flavored
Competitive Differentiators
20. Pulse strategically determined to introduce its Cabana™ 100% Natural Lemonade brand ahead of
the launch of its PULSE® beverages for the following reasons:
• The lemonade beverage category offered immediate opportunity due to few competitors.
The leader in the category has grown at a rate of 51% over the previous year
• Lemonades are no longer considered a seasonal beverage and only one other competitor
offers 100% natural ingredients
• Messaging for Cabana™ 100% Natural Lemonades is straight-forward: “Everyone knows
what lemonade is”
• Senior management’s years of establishing distributor contacts is allowing Pulse to quickly
implement a strong distribution network for Cabana™ which will facilitate and expedite
PULSE® brand introduction through this established network
• Pulse successfully predicted efficient Cabana™ product penetration attracting a broad
demographic without requiring consumer communication
Pulse’s Key Strategy - having successfully delivered its Cabana 100% Natural Lemonade product
into its “Distribution System” it will be much easier to introduce the more complex PULSE®
product with functional ingredients that have been proven to promote health. In essence “Red-
carpeting” the PULSE® brand into the established Distribution System
Distribution and Sales Strategy
21. • Pulse has been very successful in developing an elaborate and credible product
distribution system for its product offerings. What typically takes three to four years to
build has taken Pulse’s management just over one year to build
• Pulse’s distribution system presently includes over 90 distributors serving 44 States,
Canada, Mexico, Panama and Bermuda. Pulse’s distribution network includes 80% class
“A” distributors. Class “A” distributors are distributors that carry major beverage brands
such as: Anheuser-Busch, MillerCoors, Pepsi, Coca-Cola, RC and 7-Up. These distributors
provide full service product distribution at the highest level than smaller beverage
distributors
• Pulse’s distribution system was strategically established behind the strength of its
Cabana™ 100% Natural Lemonade which acceptance by distributors, retailers and
consumers has exceeded expectations
• Pulse has established a substantial portion of its distribution system and now will readily
be able to “Red-carpet” our PULSE® brand of functional beverages into its existing
distribution system and through United Natural Food International and Nature’s Best,
the two largest natural food distributors. Distributors have been made aware of the
health benefits of PULSE® and are eagerly awaiting the initial launch in February
Distribution Network – Key to a
Successful Beverage Company
22. Successful Launch of Cabana™ 100%
Natural Lemonade
• Response from distributors, retailers and consumers has exceeded expectations
due to superior packaging, great taste, 100% natural ingredients and lower calories
than competitors – 60 calories and only 12 grams of sugar per 8 oz serving. Any
beverage under 20 grams of sugar is considered a “good-for-you” beverage
• By March 2013 the Cabana™ brand is expected to reach the 1,000,000 level of
case sales on an annualized basis. This is a “proof of concept” in the eyes of the
major beverage companies and the brand should be an acquisition target at that
point. Most emerging brands do not achieve this annualized level of sales until
years three or four after launch, if ever
• By comparison, it took New Leaf Tea and Jones Soda almost six years to reach
1,000,000 in annualized case sales
• Based on past acquisitions of successful beverage brands, and an independent
valuation of a private 1,000,000 case sale per annum brand, Pulse’s Cabana™
100% Natural Lemonade brand would have a significant value upon reaching an
annual case sale level of 1,000,000
23. • Pulse intends to launch its Pulse® beverage brand in February of 2013
• Pre-marketing with distributors is underway in conjunction with continued marketing of
Cabana™ 100% Natural Lemonades and all distributors have expressed strong interest in
adding Pulse® brand to their line-up
• Pulse will position Pulse® brand of functional beverages as an extension of the successful
lemonade launch through the enthusiastic participation of its established and growing
distribution network across the United States and internationally
• Pulse® “functional” beverage line-up requires increased educational messaging directed at
beverage consumers in order to demonstrate the enhanced benefits predicted to drive sales
growth. Pulse’s Chief of Product Development and his team have reduced calories, increased
flavor profiles and have aligned the product with hot-fill bottling processes which allows for
all natural ingredients without the use of preservatives
• Educational process - Dr. Peeke, Advisory Board Member, is a keynote speaker at nutritional
and sports conferences throughout the year. Pulse plans to utilize this opportunity as part of
the process to educate consumers. In addition, we plan to utilize a consumer website and all
social media outlets and print ads in major beverage magazines
PULSE® Brand Launch
24. Growth and Acquisition Strategy
• Negotiate additional co-packing contracts in strategic locations to more efficiently
serve the entire North American market including Canada, Mexico and Central
America
• Expand and improve the PULSE® brand by developing new proprietary formulations
providing demonstrable clinical benefits such as: reducing sugar conversion in
glucose to assist in preventing the onset of Type 2 diabetes, support good skin
health, manage body weight, retard macular degeneration and preserve eyesight,
and provide adolescents with a beverage that supplies all the building blocks they
need for healthy growth
• Acquire products and/or secure distribution rights that complement or extend our
current product mix
• Expand internationally and into Asia in the second half of 2013
• Founding shareholders include strategic Asian partners for distribution into China and
other major Asian markets including financing inventory, build-out, branding and corporate co-
listing on an Asian Stock Exchange
25. President, CEO and Board Member, Robert Yates, is a seasoned business executive with over 20 years
in the beverage industry. His previous distribution company generated approximately $50 million
in annual sales and was the most successful master licensee for Clearly Canadian Beverage
Corporation through much of Canada and the U.S. His distribution portfolio has included numerous
well-known beverages including Monster Energy Drink®, AriZona® Iced Tea, Rock Star Energy
Drink®, Vitamin Water®, and Perrier®. Bob successfully launched his own brand, Kwencher, which
he built into a 1.7 million case brand in less than two years
National Sales Manager and Board Member , Paddy Sheya, has over 30 years of international
executive sales and distribution management experience in the beverage industry. He has an
extensive track record in the development of brands and in building sales and distribution systems
from the ground up to multi-million case sales. Notable examples include leading Clearly Canadian®
from nil to 4.8 million cases in less than 3 years, and managing Kwencher® sales from nil to 1.7
million cases in less than 2 years
Chief of Product Development, Ron Kendrick, has been in the beverage industry for over 30 years. Ron
was previously with Clearly Canadian Beverage Corporation for over twelve years where he
managed supply and logistical operations during a time when Clearly Canadian sales grew from
zero to $180 million. He subsequently founded Catalyst Development Inc. and was instrumental in
the creation of formulations for many companies including the PULSE® products for Baxter
Healthcare
Management Team
26. Advisory Member, Bruce Horton, co-founded Clearly Canadian Beverage Corporation where he served as
CFO and Director from 1987 to 1997. During his ten year tenure, Clearly Canadian’s sales grew from
zero to $178 million
Advisory Member, Dr. Pam Peeke, MD, is an internationally recognized expert, physician, scientist and
author in the fields of nutrition, stress, fitness and public health. Dr. Peeke is a Pew Foundation Scholar
in nutrition and metabolism and is a Fellow of the American College of Physicians. She serves as Chief
Medical Correspondent for Discovery Health TV, and has a national bestselling book, Fit to Live. Major
magazines, television and radio networks interview her as a regular in-studio science and health news
commentator. Dr. Peeke is chief lifestyle expert for WebMD’s 50 million members and serves as
spokesperson for the American College of Sports Medicine
Advisory Member, Don Prest, is a financial consultant competent in accounting, auditing and US GAAP
financial reporting. Mr. Prest was CFO of Omnicity Corp, a public Wireless Internet Service Provider
from 2009 to 2011 and CFO of Power Air Corp, a public fuel cell company, from 2005 to 2008. From
1993 to 2008 he served as practice head for a large US public company accounting firm
Advisory Team
27. Company Contact Information
Bob Yates, Chief Executive Officer
11678 N Huron Street
Northglenn, CO, 80234
Phone: 720-382-5476
Email: ryates@pulsebeverage.com
Legal Counsel
Hart & Trinen LLP
1624 Washington Street
Denver, CO, USA 80203
Shareholder Relations
Martin E. Janis & Company, Inc.
Phone: +1-877-302-6404
Email: investors@pulsebeverage.com
Investor and Broker Relations
Acorn Management Partners LLC
Lance A. Beckham
Phone: +1-678-368-4012
Email:
lbeckham@acornmanagementpartners.com
Transfer Agent
Holladay Stock Transfer, Inc.
2939 North 67th Place
Scottsdale, AZ, USA 85251
Auditors
Weaver, Martin & Samyn LLC
411 Valentine Rd, Suite 300
Kansas City MO, USA 64111
Corporate
OTCBB: PLSB
www.pulsebeverage.com
28. Thank You
PULSE® and PULSE: NUTRITION MADE SIMPLE® are
registered trademarks of The Pulse Beverage Corporation