2. Cordial Strategies & Tactics
Objective: Maintain Arrow and Paramount volume while opportunistically grow on-premise business
Strategy: Leverage brand portfolio strategy to consolidate distributor cordial needs in the popular and value cordial segment
Tactics:
Utilize Arrow as the popular brand and Paramount as the value brand to attack cordial distributor needs on multiple fronts
Leverage new packaging on both Arrow and Paramount
Regional programming developed through FMM
Utilize new items to plug existing holes and open up new opportunities

3. Overall, the cordial category is in decline with majority of consumers 45+ but cordials are still an important segment of the business!
While consumption has experienced a decrease over the past few years, cordial are still the 2nd ranked segment in consumption and 3rd in value
Approximately two-thirds of traditional cordial & liqueur consumers are age 45+
Source: IWSR 2015 BAR Report
IWSR 2015 Bar report

4. Traditional cordials are experiencing a stronger decline in dollars vs
Traditional cordials are experiencing a stronger decline in dollars vs. cases YOY due to value cordials continuing to lower prices
Traditional Cordials
‘12 vs ‘15
‘13 vs ‘15
‘14 vs ‘15
Sales $
-9%
-5%
-2%
Cases
-10%
-3%
-1%
Opportunity: Leverage the brands that have consistently held retail pricing YOY to drive overall profitability for distributors and accounts!

5. Arrow and Paramount have consistently held retail price vs
Arrow and Paramount have consistently held retail price vs. all other traditional cordial brands!
Arrow maintaining pricing and growing category sales
DeKuyper, Bols, Hiram Walker and Mr. Boston consistently lowering retails – taking profitability out of the category!
Paramount continues to maintain a premium price point to Mr. Boston! Opportunity to improve profit margin for on/off premise accounts to switch to Paramount
NABCA data ending June 2016

6. Leverage the #2 cordial (Arrow) and the #3 cordial (Paramount) to grow overall cordials sales!
#2 share and growing by X% in 2016
NABCA data ending June 2016

7. ~70% of traditional cordials sales are in 4 flavors!
The top four flavors of the cordials industry – orange, peppermint, peach, and apple, respectively – account for approximately 70% of the entire cordials industry
Luxco performing better than category in these key flavors
Luxco showing strong growth in Triple Sec in 2016
% Share of 9L R12 TY and 9L R12 % Change
NABCA
Luxco: -.5%
Luxco: -3%
Luxco: 1.6%
Luxco: -4.4%
Luxco: 3.3%
Latest trends (June ‘16) show Arrow 1L Triple Sec +7.5% and 1.75L +14%
Opportunity: Insure these 4 flavors are distributed everywhere along with regionally appropriate items!
Source: NABCA Member data through June 2016

8. Competitive Target Set Suggested Positioning
Arrow Guidelines
Main Target: On-premise accounts looking for a high quality, competitively priced well cordial .
Consumer Target: 45+ consumer looking for a nice tasting mixer at home for a great price
Brand Thematic: Mixer for any cocktail, Product is the hero along with the drink recipe and picture
Priority Product Mix
Competitive Target Set
Suggested Positioning
1. Peppermint Schnapps
Premium to value cordials, regionally competitive against target set
2. Triple Sec
3. Peach Schnapps
4. Blackberry Brandy
5. Coffee Brandy
6. Blue Caracao

9. Arrow Facts #2 traditional cordial brand in control states1
#4 brand overall in traditional cordials2
#1 selling peppermint schnapps1
Naturally gluten free
Made with all natural ingredients
High flow filtration method to ensure the cleanest and most crisp liqueurs
Uses only the finest flavor extracts for the best tasting cordials and liqueurs
Made with water purified by a state of the art Reverse Osmosis water purification system
Taste designed specifically for mixology to bring out those flavors in cocktails
Luxco investing in Arrow with new package refresh, website and POS materials
1 - NABCA data ending June 2016
2 - IWSR 2015 Bar report

10. Arrow is the cordial of choice in numerous bars, restaurants and resorts
Top cordial choice of Walt Disney World – approximately 7 cases a day are depleted
Top choices of chains such as Island’s Fine Burgers, Applebee’s, and Hotshots Bar & Grill
Arrow is top brand at at Meijer and Hy-Vee grocery stores
Source: VIP Depletion data through June 2016

11. Luxco is refreshing Arrow with a new, modern brand look without losing its heritage
Flavor cues and naming on neck for easier identification for bartenders
New recipes on back of each bottle
Premium, cleaner front label
Fresh flavor cues, more inviting and refreshing

12. Under-indexed Opportunity states
Numerous open states opportunities exist to grow Arrow share
Under-indexed Opportunity states
Role: Expansion
Utilize new packaging to introduce the brand
Regional promotional plans developed with FMM
Over-indexed states
Role: Maintain share

13. Under-indexed Opportunity states
Arrow over-indexed in control states, need to protect our share but growth opportunities in PA, OH, OR
Utilize new packaging to introduce the brand
Maintain with regional promotional plans developed with FMM
Under-indexed Opportunity states
Role: Expansion
Over-indexed states
Role: Maintain share

14. Arrow Recipes
Cosmopolitan
1.5 oz Pearl® Vodka
.75 oz Arrow® Triple Sec
.5 oz Lime Juice
1 oz Cranberry Juice
Combine all ingredients into a mixing glass. Shake and strain into a martini glass. Garnish with a lime wheel.
Blue Hawaiian
2 oz Coconut Rum
1 oz Arrow® Blue Curacao
2 oz Pineapple Juice
Combine all ingredients into a mixing glass. Shake and strain over ice into a rocks glass. Garnish with a lime wedge and an optional salted rim.
Grasshopper
1 oz Arrow® Crème de Menthe
1 oz Arrow® Crème de Cacao
1 oz Heavy Cream
Combine all ingredients into a mixing glass. Shake and strain over ice into a martini glass. Garnish with chocolate shavings.
White Russian
1 oz Pearl® Vodka
1 oz Arrow® Coffee Brandy
Fill with Cream or Milk
Combine all ingredients into a mixing glass. Shake and strain over ice into a rocks glass. Garnish with a cherry.
Recipe Strategy: Value cordial for any cocktail – bartenders choice to make more per cocktail

15. Arrow Recipes After 5 .5 oz Arrow® Peppermint Schnapps
.5 oz Arrow® Coffee Flavored Brandy
.5 oz St. Brendan’s® Irish Crème
In a shot glass, add Peppermint Schnapps. Next, carefully add Coffee Brandy, pouring slowly down side of glass, layering on top. Last, add St. Brendan’s slowly using same method.
Woo Woo
1 oz Pearl® Vodka
1 oz Arrow® Peach Schnapps
1 oz Cranberry Juice
Combine all ingredients into a mixing glass. Shake and strain into a martini glass. Garnish with a lemon twist and an optional sugar rim.
Adult Root Beer Float
1.5 oz Pearl® Vanilla Bean Vodka
.5 oz Arrow® Root Beer
1 scoop of Vanilla Ice Cream or 2 oz Heavy Cream
In a frosted mug, add ice cream or heavy cream. Add vodka and Arrow® Root Beer. Fill with cola.
Bee Stinger
1.5 oz Arrow® Blackberry Brandy
.5 oz Arrow® White Crème De Menthe
Combine both ingredients into a mixing glass. Shake and strain into a cocktail glass.

16. Competitive Target Set Suggested Positioning
Paramount Guidelines
Main Target: On-premise accounts looking for a value priced well cordial .
Consumer Target: 45+ consumer looking for a nice tasting mixer at home for a great price
Brand Thematic: Mixer for any cocktail, Product is the hero along with the drink recipe and picture
Priority Product Mix
Competitive Target Set
Suggested Positioning
1. Peppermint Schnapps
Regionally competitive against target set
2. Triple Sec
3. Peach Schnapps
4. Blackberry Brandy
5. Amaretto
6. Cherry/Apricot Brandy

17. Paramount Facts Bottled and Made in the USA
Long heritage – over 80 years old!
#3 traditional cordial brand in control states1
#4 brand overall (open and control) in traditional value cordials2
#4 selling peppermint schnapps1
#6 selling triple sec1
#4 selling blackberry brandy1
1 - NABCA data ending June 2016
2 - IWSR 2015 Bar report
3 – VIP Depletions through July 2016
1 - NABCA data ending June 2016
2 - IWSR 2015 Bar report

18. Luxco refreshed Paramount with a new, modern brand look without losing its heritage – available now!
Extended neck great for bartenders in the well. Flavor billboard easier to identify product in the well
Premium, cleaner front label
Fresh flavor cues, more inviting and refreshing

19. Paramount Recipes Amaretto Swindle Southern Bomber
1 Part Paramount Amaretto
1 Part Orange Juice
1 Part Sour Mix
Southern Bomber
1 1/4 part Paramount Peach Schnapps
3/4 parts Rebel Yell Bourbon
1 part Sour Mix
1/2 part Grenadine or Cranberry Juice
Summer Fling Punch
2 cups Paramount Vodka
1/2 cup Paramount Triple Sec Liqueur
1 cup Cranberry Juice
4 cups Limeade
Fresh Cherries
(Makes 12 Servings)
Warm and Toasty
1 part Rebel Yell Bourbon
1 part Paramount Peppermint Schnapps