vaughan foods pitch book june...

June 2009June 2009

Company OverviewCompany Overview

Vaughan Foods, Inc. 1

Safe Harbor StatementSt t t d d i thi t ti di V h F d ’ b iStatements made during this presentation regarding Vaughan Foods’ business maynot be historical facts and may be “forward-looking statements” within the meaningof the Private Securities Litigation Reform Act of 1995. Although we believe that, inmaking any such statement, our expectations are based on reasonable

ti h t t t b i fl d b f t th t ldassumptions, any such statement may be influenced by factors that could causeactual outcomes and results to be materially different from those projected. Whenused in the following discussion, the words “anticipates,” “believes,” “expects,”“intends,” “plans”, “estimates,” and similar expressions, as they relate to us or our

t i t d d t id tif h f d l ki t t t Thmanagement, are intended to identify such forward looking statements. Theseforward-looking statements are subject to numerous risks and uncertainties thatcould cause actual results to differ materially from those anticipated. Factors thatcould cause actual results to differ materially from those anticipated, certain of

hi h b d t l t f th i thi t ti d th ff iwhich are beyond our control, are set forth in this presentation and the offeringinformation. Our actual results, performance, or achievements could differmaterially from those expressed in, or implied by, forward-looking statements.Accordingly, we cannot be certain that any of the events anticipated by forward-looking statements will occur or if any of them do occur what impact they will havelooking statements will occur or, if any of them do occur, what impact they will havein us.


Overviewi d d di ib f l dd d• We are an integrated processor and distributor of value‐added,

refrigerated foods.

• Our 2008 revenues were $91.8 million$

• Our common stock is publicly traded on the NASDAQ Capital Market under the ticker symbol “FOOD”

• We are uniquely able to distribute fresh‐cut produce items along with a full array of value‐added refrigerated prepared foods multiple times per week.

• We sell to both food service and retail sectors. Our products consist of fresh‐cut vegetables, fresh‐cut fruits, salad kits, prepared salads, dips, spreads soups sauces and side dishesspreads, soups, sauces and side dishes.

• Our primary processing facility is in Moore, Oklahoma. Our soups and sauces are processed in our facility in Fort Worth, Texas


Mission

Mission is to become the first national leader in the integrated manufacture andleader in the integrated manufacture and multiple times per week delivery of a full array of safe, high quality, value-added, fresh prepared foods. p p


Overview of Products

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Marquee Customer Base


The Only Fresh Food Company Offering Both Fresh-cut Produce and Value-Added Refrigerated Prepared Foods

Fresh Cut P d

Purchasing of Customer Base

Produceg

Raw Produce National and Regional Restaurant Chains

Grocery Retailers

Refrigerated d

y

Food Service Distributors

Convenience StoresPrepared Foods Wholesale Clubs

Vertical Integration Minimizes Raw Produce and Distribution Costs


Distribution Area


AppendixAppendix


Food Safety


Food Safety: Priority One…2008 saw the first full year of our Green Light

Program, our efforts in the area of field testing produce for pathogenic bacteria.

PREVENTIONField testing for the presence of e. coli 0157:h7 and

salmonella contamination

QUALITYHarvest crew food safety checklist

Sanitation monitoring of harvest equipmentPercent oxygen testing of clean and cored lettuce bins

• Green Light combined with other programs in place, including

Water quality testing

RISK ASSESSMENTRanch audits

– Pathogen testing of critical raw materials

– Our HACCP programs for processing,– Good Manufacturing Procedures – Numerous finished goods Ranch audits

Harvest crew auditsFacility audits

TRACEABILITY

gmicrobiological tests, can further assure that our products have a very high degree of safety.

• Food Safety is priority one.From planting to customer

Food Safety is priority one.


Grower Direct Program


Fresh to you...Freshness has a major emphasis atFreshness has a major emphasis at

Vaughan Foods.

Our new Grower Direct Program allows us to harvest produce and transportus to harvest produce and transport to our processing facility with maximum control and freshness.

I ll f ti th tili ti fIn all of our operations, the utilization of fresh, safe, quality ingredients are emphasized.

Af i fl fAfter processing, our fleet of refrigerated trucks and professional drivers transports our entire line-up of fresh-cut produce, salad kits, prepared salads dips soupsprepared salads, dips, soups, sauces, and side dishes to our customers multiple times per week.


Grower Direct Lettuce and Harvesting Operations

B fitS 18 k * 24 k Benefits:‐Major advance from historical sourcing

Spring and Fall crop ‐ 12 acres per week * 8 weeks – = 96 acres of lettuce

Summer crop 18 acres per week * 24 weeks = 432 acres of lettuce

historical sourcing practices

‐ Safety and quality i d i i

Winter crop ‐ 14 acres per week *18 weeks – 252 acres of lettuce

8 weeks 96 acres of lettuce

improvements driving increased plant efficiency and satisfied

tcustomers

‐ Supply Assurance

Ability to capture our‐Ability to capture our direct cost


Selected Product ImagesSelected Product Images


Fresh Cut Kits….


Allison’s Deli Fresh Select…


New York Style Broccoli Cheese Soup

This New York City inspired Broccoli Cheese Soup is a culinary blend of velvety smooth creamy cheddar cheese with rich cream, tender

bites of Broccoli florets & accents of red bell pepper withbites of Broccoli florets & accents of red bell pepper with

just a hint of cayenne pepper!


Stockyard Chili - Made in Fort Worth Texas!

Straight from the from the heart of Texas… comes only the best chili in the land!

Made with USDA Sirloin Steak and all the other Cowboy recipe fixings we bring the spicy bold flavorsp g g p y

right to your table!


Prize of the Vine Tomato Basil

The essence of this silky delicious soup is in the sautéing of the garlic in rich extra virgin olive oil with vine ripened tomatoes, basil, whipping

cream & a hint of Café grind black pepper!


Captain Jack’s Clam Chowder

This bountiful Clam Chowder recipe was handed down by our good friend Captain Jack, it is a true treasure for the palette with Ocean Clams, tender onions, celery, potatoes, red bell pepper, rich velvety cream,

smoky bacon and a bouquet-garnish of thyme, oregano, peppercorns and sea salt!


Soup and Dip…Fall Launch…BloomTable Top Maestro’s MinestroneMaestro’s Masterpiece… chunks of tender Roast Beef in a rich Broth with diced Onion, Celery, Carrots, Potatoes & Tomatoes. Seasoned to perfection! p

Table Top Hearty American Onion SoupA rich hearty Beef stock with caramelized Onions simmered to perfection. Fresh cracked Black Pepper for seasoning p pp gand you have a delicious Hearty American Onion Soup!!!!

Table Top White Chicken ChiliWe start by sautéing Garlic Onions Celery Green Bell Peppers andWe start by sautéing Garlic, Onions, Celery, Green Bell Peppers and then add pulled cooked all white meat Chicken along with Great Northern Beans and just a few diced Green Chilies. Seasoned with a little Cumin, Chili Powder & Sea Salt!

T bl T Q Fl dTable Top Queso FlameadoA rich Queso made with White Cheddar Cheese! We add fire Roasted Tomatoes, chopped Poblanos, minced Garlic, diced Jalapeno’s, rich Cream, hints of Chili Powder & minced Cil t ! J t d li i !!!!Cilantro! Just delicious!!!!


Two New additions ….

Roasted Sweet Potato Black Bean Soup sSoup

We slowly simmer Fire Roasted Sweet Potatoes & Garlic in a traditional

B B S pA delicious combination of

tender Black Beans, Garlic, fresh Onion, diced Potatoes & Garlic in a traditional

Mirepoix broth until tender. We then add a splash of Southern Whiskey along with Marshmallow Crème,

,Jalapeno’s, petite diced Tomatoes & seasoned with cumin and cilantro!

seasonings of Sea Salt & Cayenne pepper & puree to the perfect

consistency! Vaughan Foods, Inc. 23

Three new desserts…creamy delicious…


Retail Product Display


Senior Management and Board f Di tof Directors


Senior Management - CEOH b t B G i H b G i h b Ch i f th B d d Chi f E ti• Herbert B. Grimes. Herb Grimes has been our Chairman of the Board and Chief Executive Officer since June 27, 2007. He has also served as President of Braxton Management Corporation, the general partner of Allison’s, and as such, as President and Chief Executive of Allison’s, since he co-founded Allison’s in January 2003. From 2002 until January 2003, h i t i t B f th t M G i d Vi P id t f S lhe was a private investor. Before that, Mr. Grimes served as Vice-President of Sales, Marketing, and Research and Development for Orval Kent Holding Company from November 1996 until Orval Kent was acquired by Sky Chefs, Inc. in 2002. From January 1996 until November 1996 Mr. Grimes was President of the Mrs. Crockett’s Country Kit h di i i f O l K t B f th t f 1982 h h f d d M C k tt’Kitchens division of Orval Kent. Before that, from 1982, when he cofounded Mrs. Crockett’s Country Kitchens, Inc. (formerly known as Mrs. Giles’ Country Kitchens, Inc. he served as its Vice President of Sales, Marketing and Research and Development until it was acquired by Orval Kent in January 1996. Mr. Grimes has over 35 years experience in the food

i i d t ith th b lk f hi ti i th f i t d d l dprocessing industry, with the bulk of his expertise in the refrigerated prepared salads business.


Senior Management - COOM k E V h M k V h d P id t Chi f• Mark E. Vaughan. Mark Vaughan served as President, Chief Executive Officer and a director of Vaughan from 1992 until June 27, 2007. On June 27, 2007 he became President and Chief Operating Officer hile remaining a director He has o er 20 ears of foodOfficer while remaining a director. He has over 20 years of food processing experience and has directed advances in quality control, food safety, purchasing and manufacturing processes at Vaughan. Mr. Vaughan attended the University of OklahomaVaughan attended the University of Oklahoma.


Senior Management - CFO• Gene P. Jones. Mr. Jones has served as our Secretary, Treasurer and Chief Financial

Officer since August 2007. In addition to this appointment, Mr. Jones retains a position he has held since April 2006 as a partner of Tatum, LLC (“Tatum”), an organization providing executive financial and information technology services to businesses. Mr. Jones served the Company in his capacity as a Tatum partner, beginning in May 2007, and was elected to his current position in August 2007. Before his affiliation with Tatum, from November 2003 to March 2006, Mr. Jones was Co-Founder, Secretary, Treasurer and Chief Financial Officer of Encore Discovery Solutions, a leading national provider of high quality and innovative electronic and paper discovery solutions to Fortune 500 corporations and AmLaw 200 law firms. Mr. Jones has served in senior financial capacities with a number of public and private firms throughout his career. He began his career with the international accounting firm of KPMG, achieving the position of senior audit manager. His public accounting career spanned ten years.

• Mr. Jones holds a Master of Science in Business Administration from Indiana University and a Bachelor of Science in Accounting from St. Joseph’s College. He is a member of the American Institute of Certified Public Accountants, the Texas Society of Certified Public Accountants and Financial Executives International.


Independent Board Members• Richard A. Kassar. Mr. Kassar is Chief Executive Officer of Fresh Pet Company, a

manufacturer of fresh refrigerated pet food, which he launched as a start-up in October 2006. From July 2006 to October 2006 he raised venture capital for Fresh Pet Company. Before that, from 2002 until 2006 Mr. Kassar was Senior Vice President and Chief Financial Officer of Meow Mix. When Meow Mix was sold to Del Monte Corporation in May 2006, Mr. Kassar remained in his position there until July 2006. From 2001 until 2002 he was a consultant to venture capital businesses with respect to acquisitions of consumer brands and service organizations. From 1999 to 2001 he was Co- President and Chief Financial Officer of Global Household Brands, a manufacturer of consumer household cleaning products. He was Senior Vice President, Chief Operating Officer and Corporate Comptroller of Chock Full O’Nuts Corporation from 1986 to 1999. Mr. Kassar is a director and audit committee member of World Fuel, a New York Stock Exchange listed public company whose principal business is supplying fuel to the marine and aviation industry, and a director and chair of the audit committee of Velocity Express, a NASDAQ listed public company whose principal business is providing same-day transportation services. He is a graduate of Baruch College and is an inactive Certified Public Accountant.


Independent Board Members• Robert S Dillon Robert Dillon has been a partner in theRobert S. Dillon. Robert Dillon has been a partner in the

certified public accounting firm of Dillon & Associates, P.C. since June, 1983. He has provided accounting and consulting services to Vaughan Foods since 1983 and to Allison’s Gourmetservices to Vaughan Foods since 1983 and to Allison s Gourmet Kitchens Limited Partnership since its 45 formation in 2003. He is a graduate of the University of Oklahoma and has been a

b f th Okl h S i t f C tifi d P blimember of the Oklahoma Society of Certified Public Accountants since 1979.


Independent Board Members• Laura J. Pensiero. Laura Pensiero has been the owner and manager of Gigi Trattoria,

Rhinebeck, New York since 2001. In 2006 she founded and opened Gigi Market in Red Hook, New York, a year-round farmers’ market, gourmet store bakery and catering site. Since 2005 she has also been a chef consultant and member of Just Salad LLC, a chain of New York City salad bars and restaurants. She has served as the nutrition consultant to the Strang Cancer Prevention Center, New York, New York since 2005, and was the culinary coordinator for the Memorial Sloan-Kettering Prevention and Wellness Program, New York, New York, from 1999–2005. She continues to work with Strang’s nationwide Healthy Children, Healthy Future’s initiative. From 1998 to 2004 she was a consultant to the Culinary Institute of America, Hyde Park, New York. Since 1992 she has also been the founder and operator of Chef4Life, a nutrition and culinary consulting service promoting healthy eating. She is a co-author of The Strang Cancer Prevention Center Cookbook (2004) and the author of numerous articles on healthful diet and eating and Italian cuisine. She is a graduate of the State University of New York, Plattsburgh (1989), majoring in nutrition and food service management, and of the Professional Culinary Arts Program of The French Culinary Institute, New York, New York (1992).


vaughan foods pitch book june...

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