poppy's annual report

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2016

ANNUAL REPORT

E E T W SUCC S ESS

poppy s C A K E PO P & B A K E RY

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Greetings I consider it a privilege to introduce Kallisti Iced Cider’s 2016 annual report. This company has had an incredible year, leaping over obstacles and achieving new accomplishments.

Kallisti is not just an iced cider company, it is a family, a sanctuary, and a community. We take pride in the happiness of our customers, the quality of our products, and the idea that a stranger is just a friend we have not yet met. This year is a testament to just how well our family has done. It has surpassed all of our expectations for a brand new company and I couldn’t be happier.

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2016 WAS A SWEET SUCCESS

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Content 3 Foreward note 5 Letter from our CEO 7 Company summary 9 Letter to our shareholders 10 Financial summary 12 Board of diresctors

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r e F t r t om Our C EO e L What is it about cake pop that makes it so delicious? Mouth watering? Full of awesomeness?

Maybe it’s because it literally goes with anything. Fruits, gummies, you name it. Or is it beause it releases endorphins in your brain? Endorphins make you happy, and happy people just don’t shoot their husbands (for those who watched Legally Blonde, I tip my hat to you).

It wasn’t until I had a girls’ night in on a lazy Thursday night with my best friends that I realized that it’s really the people you’re with who truly make the experience unforgettable. We teased each other about our love lives; laughed until our

stomachs hurt; drooled over Ryan Gosling’s abs; and shared fondue. It really doesn’t matter wherever you are and and whatever you’re doing: if you’re with good company, then you’re going to have a good time.

We strive to make your Fondue for You experience unforgettable. Whether you’re with family, friends, or by yourself, we will do our best to make sure you have a smile on your face the whole time. I promise!

Nicole Clevenger

Nicole Clevenger | President & CEO

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2016 In Review We love our cake and our jams and our coconut sprinkles. Our brand is all about making it fun. This year, our reality has been booming success. We have spread the love of our peaceful little cake pops to areas all around Syracuse and our reputation is growing. We are considering expanding to New York City in 2017.

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QUARTER ONE We began this year with high hopes.

We started off by introducing a donut, the cream cheese donut, which paired perfectly with all of our spreads.

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QUARTER TWO By the second quarter, we had introduced our second new donut, Nutella. We experienced a sharp increase in sales due to this new product.

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QUARTER THREE Third quarter began with heavy proot.

We remained steady throughout the remainder of this quarter.

QUARTER FOUR We nished this year with a boom.

Holiday sales in- creased, as our donuts pair ridiculously well with hot chocolate and ciders.

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M o w bile App e N In 2016, we established our well mobile online store.

Our online order boosted. We take pride in the happiness of our customers, the quality of our products, and the idea that a stranger is just a friend we have not yet met. This year is a testament to just how well our family has done.

It has surpassed all of our expectations for a brand new company and I couldn’t be happier.

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Create.

Explore.

Achieve.

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Letter To Our Shareholders The progress we have made this year would not have been possible without our current shareholders.

We are now on track to reaching our highest stock price yet in the first quarter of 2016.

This year we brought in more revenue than Poland Springs and we were rated higher in customer satisfaction. Consum- ers also chose our bottle design over SmartWater and Voss.

We became the rst bottled water com- pany to fund and develop

our own mobile app for the Apple App Store. It was released in the nal quarter of 2015 an as been purchased by more than 100,000 customers. The app was rated as one of the “most useful and innovative apps of the year� by Forbes.com.

Our revenue for this year has more than doubled since our opening year in 2010. We brought in more than $350 million through a combination of sales of our products, store merchandise and our newly released mobile application.

Nicole Clevenger

Nicole Clevenger | President & CEO

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Financial 2016 Total Spending A breakdown of how we spent our money this year.

These categories include: once expansion, employee salaries, advertising and production costs.

14% Expansion 15% Advertising 3% Other

39% Production

29% Salary

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REVENUE & FREE CASH FLOW (IN MILLIONS)

$550.00 $400.00 $250.00 $0.00

2012

2013

2014

2015

2016 REVENUE

SOURSES OF REVENUE

FREE CASH FLOW

42%

PRODUCT SALE

36%

ONLINE STORE

22%

MERCHANDISE

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Board Of Directors Nicole Clevenger

Henry Sherman

President & CEO

President, Communications

Margot Tenenbaum

Herman Blume

Executive Chairman

Chief Operating O cer

Felicity Fox

Peter Flynn

Vice Chairman

Administrative Director

Ned Plimpton

Francis Whitman

Executive Vice President

Sr. Vice President, Planning

Suzy Bishop

Klaus Daimler

Sr. Vice President

Vice President, Brewing

Sam Shakusky

Alistair Hennessey

Sr. Vice President, Sales

President, HR

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