New Era Nutrition

Industry: Functional Foods & Nutraceuticals

Employees: 7 + independent contractors

Founded Date: New Era Nutrition Inc. 1989; Solo GI Nutrition Inc. 2003

New Era Nutrition Inc. (New Era) is a pioneer in functional food R&D, developing products based on an age, gender and need to promote health, enhance performance and prevent disease. Since 1993 the Company has developed a deep pipeline of patent-pending proprietary products at various stages of readiness for commercialization. New Era has developed private label products for market leaders in food, nutraceutical and drug (over 20 products and 200M+ units sold).

In 2004, Management predicted the decline of Low-Carb and rapid ascent of the Low Glycemic Index (Low GI) as more a sensible and sustainable eating regimen. The Company vertically integrated through Solo GI Nutrition Inc. (SoLo), seizing first mover advantage as “Category Captain”, to distribute, market and sell Low GI foods. In 2006, ACNielsen identified Low GI as its #1 food trend and potentially the biggest food trend ever because managing blood sugar is recognized as integral to weight management, sustained energy and disease prevention. SoLo’s primary products are a line of award winning (“Most Innovative Product of the Year” and Taste) Nutrition Bars which are the first in a line of Low GI food that will comprise the SoLo Brand.

Investment is required to capitalize on SoLo’s rapid rise in sales which has been driven by all major diets now endorsing Low GI, propelling SoLo to #3 in the diet bar category (recently surpassing Atkins) and #26 overall in the Natural Channel.

New Era will ultimately sell the SoLo brand to a large food/drug conglomerate or initiate an IPO after establishing SoLo as the leading Low GI Brand. Additionally, New Era will continue to commercialize products in its deep development pipeline either through subsidiaries or under license to industry leading companies.

In the U.S., SoLo is perfectly positioned to capitalize on the fast growing Low GI trend, being the only company solely focused on Low GI. The Company successfully established national distribution through the Natural Channel and is expanding into the larger Food, Drug and Mass (F/D/M) Channels. SoLo assembled the best management, advisors and partners available to develop a scalable infrastructure for manufacturing, distribution, sales and marketing covering all 48 states and all sales channels. Demand generation activities are heavily weighted toward SoLo’s formidable taste advantage and its Low GI product benefits.

SoLo is proceeding with the most cost effective expansion into F/D/M which is a regional U.S. marketing and sales roll-out with a particular focus on the Western U.S. having 20% of population and 30% of bar consumers. This strategy maximizes consumer impact and market penetration as a precursor to its staged national expansion.

SoLo Bars are sold in the U.S. with expansion planned for Canada in 2007 and then globally. SoLo is positioned as a healthy alternative for mainstream consumers, ideal for people seeking energy, weight management benefits and is safe for diabetics. The U.S. market alone for existing and planned products is in excess of USD$9B. The Company has already generated sales in excess of $1M over the last 12 months, while its products were only available in is less than 0.5% of potential U.S. retail locations.

The combination of New Era’s patent-pending Low GI platform technology and early market entry established SoLo Gi™ as the leading brand in the emerging Low GI category. The best in class and award winning taste is proven to far exceed the leading competitors who, with their massive resources, have not created bars that taste as good as SoLo’s. The Company utilizes a proprietary algorithm that originated from its 10 years of Low GI R&D enabling speed to market of innovative new products and line extensions that is currently unparalleled in the marketplace. Being the only company wholly dedicated to Low GI, SoLo can champion Low GI while the competition’s product line-ups are predominantly High GI and/or Low-Carb. SoLo’s superior products are science based and clinically validated which enables the Company to back-up its marketing claims with facts.

Saul Katz, President & CEO
Cameron Schuler, COO/CFO
Clio Stewart, VP Sales

Capital Required:
USD$10.0 million

Investment Received:
CAD$6,250,000

Use of Proceeds:
Expand Distribution $2.5M
Working Capital $2.0M
Demand Generation $5.5M

Cameron Schuler COO & CFO joined the Company in November 2005. His career in finance (including raising debt and equity funding both in Canada and the U.S.), business & product development, IT and general management from start-ups to mature companies is well suited to New Era as it continues to experience rapid growth. Cameron obtained his MBA from Queen’s University, is a Certified Investment Manager and Fellow of the Canadian Securities Institute

Cameron Schuler
10250 176th Street
Edmonton, AB
T6M 2T4
tel: (780) 423.4551

email: cschuler@solo-gi.com

www.neweranutrition.com
www.solo-gi.com