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COWEN COLLABORATIVE INSIGHTS February 25, 2019 From a consumer staples perspective, we see innovation across a host of form factors. To analyze the category's potential, we focused on six specific consumer product categories, including: 2 i. Nutraceuticals (tinctures, capsules, sprays, and gummy vitamins) ii. Topicals (for targeted pain relief, like Tiger Balm) iii. Beverages (water, energy drinks and beer) iv. Food (including confections and bars) v. Vapor vi. Beauty (including skin care, serums, lotions, and bath products) While our analysis was far from exhaustive, below we: i. Break down the above product categories by sub-segment to benchmark pricing, which we define as value, main, premium and super-premium, ii. Forecast run rate revenues by vertical over the next two years, iii. Offer company-specific detail on numerous private and public companies as part of our research on the CBD opportunity (primarily in the U.S). Figure 27 Beauty Products Carry the Most Premium Pricing, While Tinctures and Gummies Offer the Best Value Proposition in Terms of Price / MG of CBD CBD Form Factor Price Per MG cummies | (NE vope | SINE Confections | {0 BathBombs | {/ 0 Topicals Body Lotion [0.24 || $0.44 | $0.58 || $0.75 | Body Oil Beverages Mask [s0.36 ] Balm Face Cream Face Serum $0.00 $025 $0.50 $0.75 $1.00 $125 $150 $175 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 m|Value @Main mPremium = m™ Super Premium Note: Price boxes represent the high-end of the form factor’s respective price segment. Source: Company Websites and Cowen and Company COWEN.COM 27 HOUSE_OVERSIGHT_024843