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melt D9 Expansion Plan: Executive Summary

BUSINESS HISTORY
Launched in Massachusetts in October 2023 with three flavors–original, lemon, and
lime.
Sold as a tray of 10 liquid cubes, each infused with 5mg of THC. The customer freezes
at home.
Currently distributed in 30+ dispensaries in the state. Expect 50+ dispensaries by June
2024.
3,000 wholesale units sold to date.

KEY PRODUCT ATTRIBUTES
CONSUMER
Strong appeal with the ”Canna-Curious” market, women, & occasional users
Consumer-friendly: make their own THC beverage by just adding ice
Flexible: can be used frozen or poured straight into a drink
Control: rapid onset, so the consumer can manage dosing
Quality: all-natural ingredients; no added sugar
RETAIL
Easy to stock, store, and display. No need for refrigeration
Less bulky and cumbersome than beverages in cans
Healthy margins and better cost per mg than canned seltzers
○ $10 per tray wholesale
○ $20 per tray MSRP
Cheaper to ship DTC

BUSINESS OPPORTUNITY
Create a Hemp D9 THC product extension to expand melt beyond MA
Hemp products can be sold DTC via e-commerce platforms and mainstream retailers in
40+ hemp-legal states
Maintain product efficacy and purity through lab testing
Marketing strategies and plans in place to maximize awareness and scale

STRATEGIC PARTNER OPPORTUNITY
Seeking strategic partner to assist in maximizing MA opportunity and achieving scale
through Hemp/D9 expansion
Looking for capital, expertise, manufacturing/distribution capabilities, cooperative
marketing support
Strategic partner contribution of $25k/mo x 4 months + 20k/mo x 5 months = 200k over
9 months
At an $800k pre-money valuation, the strategic partner receives 20% equity in
Highdration Kitchen D9 (HKD9)
In addition, HK Mass (HKMA) will contribute a portion of the profits from its regulated
business (expected to begin in Jun 2024) to HKD9 to accelerate growth.
This investment should provide enough capital for initial inventories and robust DTC
market test and drive at least $100,000 in revenues (based on 2.0x RoAS) in a 6-month
period from DTC sales alone.

CURRENT D9 FORECAST
TBD
TBD

BRAND AND MESSAGING
CONSUMER PROMISE
With melt, every glass is half full
LIFESTYLE BENEFITS
The ideal alternative to spirits, beer, and wine – always in control, no hangover
A better choice than infused cans – your recipes, not someone else’s
CALL TO ACTION
Make your drink, then let melt make it better.
Buy today at www.meltcubes.com

melt MARKETING STRATEGY
PHASE 1: Drive brand engagement and trial through DTC digital marketing
Paid Instagram and Facebook ads in hemp-approved states for direct purchase at
meltcubes.com – video-driven creative
Highly targeted to core segments – Canna-, Sober-, and Infused Beverage-Curious
Test and learn against key sub-demos– “California Sober,” Gen Zs, “Weed Moms,”
sleep-challenged older adults, etc.
Enhance paid digital media with content co-creation and distribution with strategic
influencers – focus on drink recipes and testimonials
Primary metric: ROAS (Return on ad spend)
Test and Learn Phase: 2-3 months, $8k-$10k per month, 1X ROAS target
Build Awareness and Trial Phase: 3-6 months, $10-$15k per month, 2X ROAS target
Repeat Purchase and Referral Phase: Sustained, $20k+ per month, 3X – 5X ROAS
target

PHASE 2: Drive brand engagement and trial through retail distribution
Dedicated brand ambassadors for sales support and on-premise activation at
dispensaries, grocery, C-stores, liquor and beer retailers
Cross-beverage category strategic alliances and product bundles
Retail event activation via pop-ups and POS retailer social media cross-promotion
Outdoor and other directional advertising
Primary metrics:
○ New accounts
○ Same-store sales increases

PRICING STRATEGY
Maintain healthy margins while providing an attractive opportunity for retailers and
competitive consumer positioning:
MELT WHOLESALE
$10 per tray / $120 per case
MELT MSRP
$20 per tray (50MG) / $2 per case
COMP 50MG MSRP
Edibles: $20-$30 / Pre-Made Drinks: $50-$80

STRATEGIC PARTNER OPPORTUNITY
Strategic partner contribution of $25k/mo x 4 months + 20k/mo x 5 months = 200k over
9 months

At an $800k pre-money valuation, the strategic partner receives 20% equity in
Highdration Kitchen D9 (HKD9)
In addition, HK Mass (HKMA) will contribute a portion of the profits from its regulated
business (expected to begin in Jun 2024) to HKD9 to accelerate growth.
This investment should provide enough capital for initial inventories and a robust DTC
market test and drive at least $100,000 in revenues (based on 2.0x RoAS) in a 6-month
period from DTC sales alone.

Original Melt.jpg

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