Better Choice Company Pitch Deck Teardown: A Multi-Brand

Better Choice Company: The Premium Pet Food Roll-up

The investor presentation from April 2020 for Better Choice Company (BTTR) represents a specific moment in the pet industry's evolution: the shift toward 'premiumization' and the consolidation of niche brands into larger platforms. The deck is structured to appeal to institutional investors by highlighting a significant valuation gap between the company and its nearest public peer, Freshpet.

Slide 1: Title and Brand Overview

The cover slide introduces the two primary brands under the Better Choice umbrella: TruDog and Halo. The imagery emphasizes the 'humanization' of pets, showing high-quality ingredients and lifestyle-oriented photography. The 'Better Choice Company' logo is positioned at the bottom, establishing the corporate identity as the parent entity for these consumer-facing brands.

Slide 3: Key Investment Highlights

This slide serves as the executive summary. It lists eight core pillars of the investment thesis, including 'Premium, Natural Products,' 'Experienced Management,' and 'Actionable Near-Term Growth Opportunities.' Crucially, it provides the first hard numbers: Halo has annual net sales of approximately $35 million, and TruDog has annual net sales of approximately $15 million. This establishes a $50 million revenue baseline for the combined entity.

Slide 6: Public Market Scarcity and Equity Value Creation

This is the 'money slide' of the deck. It presents a side-by-side comparison between Better Choice (BTTR) and Freshpet (FRPT). The company notes its current share price as of 2/19/2020 was $0.80, resulting in an Implied Enterprise Value of $76,178,000. They contrast their 1.6x EV/2019 Annualized Net Revenue multiple against Freshpet's 11.4x multiple. The slide explicitly points out the 'scarcity' of public pet food plays, suggesting that BTTR is a deep-value opportunity for investors looking for exposure to the sector.

Slide 9: Highly Attractive Consumer Demographic

Slide 9 uses Facebook Pre-Post Ad Viewership Insights from 2018 to profile the Halo customer. The data is granular: 91% female, 72% college-educated, and 54% with a household income (HHI) of $75k+. By showing that 82% of 'Halo Converts' are homeowners, the company is signaling to investors that their customer base has high disposable income and high 'stickiness'—essential traits for a premium CPG brand.

Slide 12: Established Premium Brand Positioned for Long Term Growth

This slide maps the history and market tailwinds for the Halo brand. It notes that Halo was founded in 1986, giving it 30 years of brand equity. It identifies the '$100+ Billion Global Pet Food Market' and lists growth avenues such as 'Innovative Products' (Vegan and Supplements) and 'New Channels' (Asia & Australia). The slide highlights a '45% of sales with majority monthly subscription base,' which is a key metric for valuation in the modern CPG landscape.

Slide 15: TruDog at a Glance

While Slide 12 focused on the legacy brand, Slide 15 focuses on the growth engine: TruDog. Founded in 2013, TruDog is described as 'data-driven' and 'subscription based.' The metrics provided are robust: $1.0 million in monthly repeat revenue, $40 CAC, and $190 LTV. The slide also lists their customer acquisition channels, ranging from social networks and Google to traditional media like radio and direct mail, showcasing a diversified marketing stack.

Slide 18: Comparable Pet Industry Transaction Multiples

To further support their valuation argument, the company provides a list of 16 industry transactions dating back to 2006. Notable deals include General Mills acquiring Blue Buffalo for $8 billion (6.3x revenue) and Mars acquiring P&G's pet business for $2.9 billion. The slide calculates a mean revenue multiple of 3.2x and a median of 2.8x. Since BTTR was trading at 1.6x at the time of the deck, this slide serves as a justification for a potential doubling of the stock price based on sector averages.

Slide 21: Board of Directors

The final slide in this selection profiles the Board of Directors. It emphasizes corporate governance and industry experience. The board includes Mike Young (capital markets), Jeff Davis (CPG experience at P&G), and Lori Taylor (the founder of TruDog). The presence of directors with backgrounds in insurance and healthcare (Word, Gee, Close) suggests a focus on the 'wellness' aspect of the pet industry rather than just food production.

What Works in This Deck

Direct Valuation Comparison: The comparison to Freshpet on Slide 6 is a classic and effective investor relations tactic. It gives investors a clear 'north star' for what the company could be worth if it executes successfully and migrates to a major exchange.

Granular Unit Economics: Slide 15 provides the exact numbers (CAC, LTV, AOV) that sophisticated investors need to see to believe in a DTC growth story. Providing the $190 LTV against a $40 CAC shows a healthy 4.75x ratio, which is strong for the CPG sector.

Demographic Specificity: Instead of saying 'everyone with a dog,' Slide 9 uses actual data to show they are winning with high-income, educated homeowners. This specificity makes the market opportunity feel more tangible and less like a generic projection.

What Is Missing from This Deck

The Specific 'Ask': While this is an investor presentation, the provided slides do not include a specific capital requirement or the terms of a current round. It functions more as a general corporate update or a 'buy' recommendation for the public stock rather than a traditional startup pitch for a specific funding round.

Integration Roadmap: The deck discusses two very different brands—one legacy retail (Halo) and one modern DTC (TruDog). It lacks a detailed slide on how these two will be integrated to achieve 'synergies.' While Slide 3 mentions 'Realization of Synergies,' it doesn't explain if this means shared manufacturing, cross-selling to the database, or supply chain consolidation.

Product Roadmap: While 'Innovation Pipeline' is mentioned as a highlight, there is no visual or descriptive roadmap of what new products are coming in the next 12-24 months. Investors are left to guess what 'Vegan and Supplements' (Slide 12) actually looks like in practice.

What a Founder Should Copy

The 'At a Glance' Format: Slide 15 is a masterclass in summarizing a business unit. It combines a company overview, a list of sub-brands, a list of acquisition channels, and six key financial metrics in a single, readable layout. Founders should use this format to summarize their traction.

Using Transaction Multiples: If you are in a sector with high M&A activity, a slide like Slide 18 is essential. It moves the valuation conversation away from 'what I think I'm worth' to 'what the market actually pays for companies like mine.'

Consumer Profiling: Don't just list your TAM (Total Addressable Market). Use Slide 9 as a template to show who your actual customers are based on data. Showing that you understand your demographic's HHI, education level, and homeownership status proves you have a handle on your marketing funnel.

Final Thoughts on Strategy

The Better Choice Company deck is a clear example of a 'roll-up' strategy presentation. It attempts to bridge the gap between a legacy brand with stable revenue and a new-age brand with high growth metrics. By positioning the combined entity as a public-market alternative to massive incumbents, the company makes a compelling, data-backed case for equity value appreciation, provided they can successfully manage the operational complexities of an omni-channel pet platform.