Sow Good (SOWG) investor relations material

Business overview and market position

• Six years in operation, initially focused on freeze drying technology before entering the CPG market with fruits, veggies, and later freeze dried candy.

• Achieved $24.4M in sales and 4.4M units sold in the past 52 weeks, with distribution in nearly 17,000 doors.

• Remains the top independent freeze dried candy brand despite increased competition from major CPG entrants like Hershey's and Mars.

• Differentiation is driven by proprietary manufacturing technology and a broad, innovative product mix including sweet, sour, chocolate, and ice cream varieties.

• Innovation and quarterly product launches, especially with key customers like Five Below, are central to growth strategy.

Industry trends and competitive landscape

• Freeze dried candy market is growing at 8.5% annually, outpacing the overall candy market's 4% growth.

• Entry of large brands like Hershey's and Mars has validated the category and increased competitive pressure.

• Despite exclusivity agreements by competitors, the company is regaining market share and rebuilding retailer relationships.

• Holds four of the top ten freeze dried candy SKUs, with sugar-based products outperforming chocolate due to rising cocoa prices.

• Recent weeks show a recovery in units per door and a comeback in customer demand.

Operations and technology

• Operates six custom-built freeze dryers in a 21,000 sq ft Irving, Texas facility, each capable of $10M in revenue.

• Vertically integrated and SQF2 certified, with a recent audit score of 97.

• Expansion into new retail channels, including hardware stores, and focus on stabilizing and then growing door count.

• Exploring adjacent categories such as private label baby snacks, air dried and freeze dried meats, and ready-to-eat meals.

• Successful international launch in the Middle East, with expectations for increased orders starting October.