The Perfect Storm" l How digital tools are forever changing the e sel way w e way we sell and

d market wine" ing th g chan " rever wine are fo arket s l tool and m igita d How

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CONFIDENTIAL

Unprecedented competition for mindshare.

Unprecedented competition for Wine Label Registration Growth

mindshare.

Total number of COLA applications through the TTB in 2008 was approximately 133,427*. This number increases on an annual basis by approximately 5,000 labels

Projected

*Source: Advertising, Labeling and Formula Division,TTB

VinTank Informa on Graphics

Long Tail

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$40 $18 $20

1 2

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$700 $600 $500 $400 $300 $200 $150 $120 $100 $80 $60

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$16 $10 $10 $11 $12 $14

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 Business has no geographic boundaries.

Ideas have no geographic boundaries.
Communication across borders is easier than ever.
We are economically linked.

CONFIDENTIAL

The US Funnel

Though it is reported that there are over 4000K wholesalers in the US each state 2 or 3 control the vast majority of distribution." The top 5 wholesalers in the US (Southern, Glazers, RepublicNational, Charmers, and Youngs) together have revenues of roughly $23 Billion." ShankenIMPACT Newsle-er in 2010 reports that the top 6 distributors control over 50% of the marketplace." From 2006 - 2010 it is reported that wholesalers spent $82 million dollars in lobbying and campaign contribution dollars." In contrast wineries spent approximately $16 million on the same activities. We are grossly out gunned."

Wine is Mainstream In the US

329.7 Million Cases

Quality . . . from EVERYWHERE

Great Wine from Everywhere

2002 Chaupi Estancia Palomino Fino Yaruqua, Ecuador

The Great Print Decline

Leaving Maybe 25 Power Critics

It is a bull market for free content.

Tyler Coleman Dr. Vino

Liberation with Complexity ala Granholm vs Heald

No its not the Apocalypse

Search is ber that connects the internet

Doug Cook Ablegrape.com

16

Buying Online Continues to Grow

CONFIDENTIAL

New Essential Elements

Digital Wine

E-commerce
Mobile
Social
Service companies

Social Media has become the most pervasive communication technology next to email.

Confusion

usin B Busi

Inte ess
ness

nce
llige

Dev elop men

Smart Phones Have Become Smarter

And the Dominant Force to Access the Internet

Smart Phone Usage

What the ?

By 2017, CMOs will spend more on IT than CIOs - Gartner

You got your chocolate in my peanut butter

Wine + E-commerce = $500 Million

Wine and Social Media

It is experiential

New access

Cost

There is no panacea in wine anymore!

Email 2.9% at best?

Direct Mail - .5% - 1.5% is good?

Advertising - #really?

Events - #drunk_fest and waste of $

Publicity Hope and a prayer

Wholesalers In the 1970s

Telemarketing 1 by 1 . . . sounds like . . .

Social media - 1:Many but still 1:1

If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends. -Jeff Bezos

39

Social is the lens to discovery on the web.

Consumer generated content is on the rise.

For people under 40,
70% of the content they read online has been written by somebody they know.*

*Forrester

Winning brands are transforming into media companies

Content will be the future of advertising, people distributing and creating content for your brand will be the barometer of your advertising success.

Barry Schuler
former CEO AOL/Time Warner/CEO Meteor Vineyards

Business Intelligence

The New Critic:

The New Critic:

The New Critic:

The New Critic:

The New Critic:

The New Critic

The New Critic

The New Critic

300 million social conversations about wine

35 Million quality conversations.

Over 10 Million Social Wine Customers

What does it all mean?

CONFIDENTIAL

Wine online. We believe.

 www.vintank.com


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