2. Deutsch Spirits Stephen Lewin
That was cold water and for an incredible cause – A Special Olympics fundraiser in New England
Lets be clear about Deutsch Spirits - We are not dipping our toe in the water…We are diving in head first…
Spirits is a New frontier at WJD – and it all makes sense and the Timing is Right
Diversify Deutsch – add to our current wine business.
Distribution network is strong – it’s a natural
Revenue potential is huge – Spirits can be very profitab
Peter and Tom asked me to lead the Spirits team in late February
Jumped at the opportunity – Similar to VCP
Size, # of people and Distributor leverage
Opportunity to build the network and culture
Build Brands for the long term
If starting a spirits company today is not evidence of OFA, I don’t know what is?

3. Top Priority Growth Initiatives to Reach $650 Million by FY15
1. Focus on Highest Priority Brands (Biggest Bets) with increased A&P investment against those brands
2. Optimize Route to Market (Distributor Agreements & Investment)
3. Wine Innovation: New Brands and Alternative Packaging for Existing Brands
4. Secure Spirits brands, likely via Agency Agreements
5. Wine Acquisitions (brands or companies, JVs or alone)
Lets Get Started
Review the company’s Growth Initiatives
Spirits Plays a major Role - # 4 on the hit parade
# 1 &2 also very relevant to Spirits

4. Spirits - 5 Year Goals By 2015: Triple our volume Double our suppliers
Est. Case Vol.
220K
300K
400K
450K
600K
Est # Suppliers 3 4 5 6
We are on the move
READ BULLETS
Water seems pretty cold at the moment
We finished FY ’10 with 2 brands 30K cases

5. Spirits Strategy Objective: Scale: Sources: Segments: Resources:
Maximize profitability, $40 million in new revenue by FY15
Get to break-even by FY12
Scale:
Add a few big cornerstone brands across key categories
Max 1 “New To World” brand per year.
6 months between existing new additions
Sources:
1) Primarily existing Agency 2) JV 3) Acquisition 4) Innovation
Segments:
Premium segment is our focus
Open to consider Super Premium
Unlikely we will add Value Brands
Resources:
Add resources commensurate with DBC growth, competitive reinvestment
Lets look at our Strategy - Talk about a BHAG
Read Bullets
NTW – bottle one
Competitive re-investment rates are high for Spirits – as a % of revenue. Just need to get profitable first

6. FY’11 Spirits P & L Snapshot
Revenue
Depletions
Gross Profit
Luksusowa
$15.2M
183K
$3.4M
Landy
3.2M
20K
900K
Villa Massa
1.4M
17K
360K
NTW (July)
1.0M 4K
300
TOTAL
$20.8M
224K
$5.0M
Let’s Look at FY’11 numbers
Lukso first cornerstone brand (read across)– gave us critical mass to operate as a separate division
Landy - 20k cases from 8k LY
VM – 17k from 12 k
New To World in July – Cant tell you what it is yet. Really exciting – Will create a new category of Spirits. On premise focused to start and reason for small numbers
5M to run entire business (all in)
Goal to be profitable in first year – covers all staff, brand spending and division overheads

7. The WJD Spirits Team Sheku Alieu Jean-Francois Bonneté Pablo Pelaez
Mid-Atlantic
Mark Lowen
Midwest
Jean-Francois Bonneté
VP Southern Region
Pablo Pelaez
Brittany Sales Co.
With that I would like to Intro players – Please intro yourselves this week.
READ NAMES and REGION
This mission for team is BASIC BLOCKING AND TACKLING
Distribution, Distribution, Distribution
Working the streets
Managing Wholesalers and holding them accountable
Introduce yourselves to them this week and work side by side together in the markets
Michael Keltsch
West
Eric Maldonado
Director, Spirits Marketing
Heather Sturm
Southern CA
Empire Position Open
Broker network in selected markets across the U.S.

8. Shared WJD Resources Finance Public Relations Supply Chain Innovation
Marketing Services
National Accts
Finance
Supply Chain
Legal
Compliance IT
Analytics
Fortunate to have access to these resources.
Spirits group can Act like a big company
Resources Provide leverage given our current start up size
Utilize resources commensurate with our size – as we grow, we will have greater access to these functions

9. Spirits Category Overview
Category trends

10. Total Spirits Category Size
Total Case Vol. Sales -
185.5 Million 9-Liter cases
As compared to Wine - 271MM cases
Total $ Retail Sales
$63 Billion
Total Spirits is $63BB in retail sales in US - the total amount consumers paid for spirits at retail in 2008
On-Premise revenue and profits far surpass off premise in the spirits category even though 4 out of every 5 bottles are running through the stores
Off Volume = 78%
Source: MintelThe Beverage Information Group 2009

11. Spirits average annual case volume growth 2.6% over past 10 years
190
180
170
160
150
140
130
120
110
100
1.4%
1.7%
2.4%
4.1%
2.7%
4.1%
3.8%
3.0%
1.0%
2.0%
Lets look at Volume growth
10 straight years of case volume growth
Arrow pointing in the right direction
Further evidence of why we are getting into the spirits category
Source: DISCUS MSDB

12. Spirits average annual revenue growth of 5.2% over past 10 years
66% revenue growth over past decade
$18.7
$18.7
$18.2
$17.2
$16.0
$15.1
$13.9
$13.2
$12.2
$11.7
Supplier Gross Revenue (Bil.)
Revenue Growth tells an interesting story
Revenue is growing DOUBLE the rate of volume (5.2% vs 2.6); Due to the trade-up phenomenon over the past 10 years which came to a temporary halt in 2009.
Look at ’08 vs 09 – no growth
Like any investment you look at long term trend. This tells a good story.
Source: DISCUS MSDB

13. Volume Growth by Price Segment
Value segment leading the growth, followed by Premium
Most segments expected to improve as economy recovers - with Premium expected to lead the growth
Volume in ’08 vs. ’09 – sign of the times
Read Bullets on Screen
High end and super premium segments – brands such as Absolut and Grey Goose - suffered in ‘09
Value segment - with brands like Popov - leading the growth, followed by Premium-Svedka
Source: DISCUS MSDB; Mintel 2009

14. Volume & Revenue Share by Price Category - 2009
Value segment leads share of spirits volume
Premium segment leads revenue
Read Title and Bullets and then points below
Premium will continue to grow as consumers reward themselves. The companies that invest in marketing and innovation during tough times will lead the growth
The Deutsch Spirits brands live primarily within the Premium category
We mentioned early on that our strategy was premium, here’s why - premium delivers financially
Source: DISCUS MSDB

15. Off-Premise Driving Growth
Increase of at-home consumption
Consumers
Making cocktails at home
Re-evaluating spending
Tighter budgets and sticking to them
The new normal
Shifting trends towards off premise
READ BULLETS
WJD focus for FY’11 is primarily in the off-premise segment
GO TO TAKE AWAY’S
Source: DISCUS MSDB

16. Spirits Category Takeaways
Spirits category continues to grow
Revenues have historically grown faster than case volume
Premium segment is largest revenue segment and growing
Off-Premise is driving majority of growth
WJD is positioned for success in the Spirits category
All Points to Opportunity

17. Introducing the Deutsch Spirits Portfolio
Now I’d like to introduce you to the Deutsch Spirits Portfolio
Blocking and tackling – distribution, price integrity, display
Build Brands for the long term – and create value
Communicate and become relevant to the consumer

18. Landy Award-winning cognacs Competitively positioned
Cognac/Brandy represents 6% of total spirits category with new players coming in all the time
F11 Goal: 20,000 cases
8000 cases LY
Landy – This is where it all started for Deutsch Spirits -Equity Supplier with exciting news
Cover bullets on screen
Relationship and story with Ferrand and Alexandre
Source: MintelThe Beverage Information Group 2009

19. Landy Brand Positioning
Landy is authentically smooth and priced right to be the confident cognac choice of those who want to enjoy the good times everyday.
Read Brand Positioning and Landy & Snoop
Snoop - just signed this week - Who better to be the face of the brand than Snoop Dogg
successful business person who has done reality TV, voice-over on navigation systems, and can have a strong positive effect when he gets behind a brand. Very Visible – appeared on many talk shows recently
SNOOP Activities in addition to his concerts
After Parties hosted by Landy
Social Media and On Line Opportunites
Snoop trade appearances, Landy mentions in songs and other cool benefits.

20. The Opportunity in Cognac
Despite a challenging 2009, the cognac category has shown growth in 2010 Q1 (+16.2).
The VS and VSOP segments are leading the growth, both up 12.4% and 13.2%, respectively.
Segment
% Chg vs. YAG
TTL Cognac
+16.2% VS
+12.4%
VSOP
+13.2% XO
-9.1%
Playing in the right segment of the cognac category
Source: Nielsen 13wk FDL to

21. Proper Price Positioning
FY11 Plan
Quality Distribution
Public Relations
Proper Price Positioning
Retail Merchandising
Snoop Dogg Tour
Smooth
Confident
Pedigree
Dichotomy
Good Times
Dog
Landy & Snoop
Our mission is to merge the most compelling Landy attributes with those of brand Snoop. From this intersection comes the brand opportunity.

22. Villa Massa Brand Positioning
For sophisticated, goodtime seekers who love interesting food & drink  Villa Massa is the authentic & premium limoncello that brightens any meal with the sunny & refreshing flavors of the Amalfi Coast
It’s made only from Oval lemons from Sorrento and has been enjoyed by Italians for centuries ... the culture that has perfected the art of blending passion, romance & eating.
Brand positioning (will not read) – Key Words and what VM is about.
Authentic
Premium
Amalfi Coast
Oval Lemons from Sorrento
Passion, Romance and great food

23. The Opportunity in Limoncellos
Quality. Villa Massa is made with 100% natural ingredients and 100% PGI Sorrento Oval lemons. This is an appealing message to consumer.
Versatility. Villa Massa mixes well to make fantastic cocktails such as The Villa Mossa (sparkling wine with Villa Massa) or The Surriento (tonic).
On-premise accounts. Accounts are open to adding the best Limoncello to their portfolio to be included in their after dinner lists and in interesting cocktails.
The “Brunch” occasion. Summer programs in place

24. FY11 Plan FY11 MARKETING PLAN Objectives
Grow the brand to 17,000 cases
Grow distribution on and off-premise (combined) to 4,200 accounts (+30%)
Strategies
Drive distribution
Increase brand velocity
Build brand awareness
Promote the brand outside the after-dinner occasion by communicatingits versatility.
Expand distribution outside core markets of CA and PA
Target non-Italian on-premise accounts
Tactics
Sampling Program
Merchandising
Holiday VAPs (750ml and 375ml)
Gain menu listings at on-premise accounts
Promote The Villa Mossa and The Surriento
Summer Brunch Program
Engage the media and garner national editorial coverage
Enter brand in major spirit competitions
Stefano Massa Tour

25. Luksusowa
Cornerstone Brand – 180K cases in limited markets (50% in top 5 markets)
Pernod Ricard – Agency Relationship (recent acquisition)
Nearly 1 out of every 3 drinks is a vodka drink
Off-premise focus - 70% 1.75L (Display Activity)
Brand has a real following however a limited knowledge of the consumer base
Cover Bullets
Source: MintelThe Beverage Information Group 2009

26. Luksusowa Brand Positioning 94 Points BTI Mixologists Favorite
For vodka drinkers who are seeking quality and value, Luksusowa is the premium imported vodka that offers ultra premium rich taste at a reasonable price
Authentic potato Vodka from Poland and uniquely triple distilled for purity
94 Points BTI
Mixologists Favorite
Research – Potato, Luxury, Authenticity, Poland, Tag Line
Innovation – Label Design
Cover Positioning and Bullets
Positioning is a work in progress
WJD Brand Positioning and Tag Line – WJD Work
Priced just above Svedka and below Skyy

27. The Opportunity in Vodka
Segment
% Chg vs. YAG
TTL Vodka
+4.8%
Value
+2.1%
Premium
+8.9%
High-end
+5.5%
Super-Premium
+4.9%
Premium Segment is leading the growth at double the rate of the category-13 week.
At 29% of volume at retail, the premium segment is leading in growth at almost double the category.
Source: Nielsen 13wk FDL to

28. Luksusowa is: The #1 Potato vodka in the US and the World.
Priced right in the fastest growing vodka segment.
Poised to benefit from national distribution.
Great quality and has won many recent awards and accolades!
The Luksusowa Martini – Finalist at the 2010 Ultimate Cocktail Challenge
The Luksusowa Cosmopolitan- Finalist at the 2010 Ultimate Cocktail Challenge
The Luksusowa Bloody Mary- Finalist at the 2010 Ultimate Cocktail Challenge
94 points 2009 Beverage Tasting Institute
94 Points and Gold Medal and 2009 International Review of Spirits
Cover Bullets

29. FY11 Plan FY11 MARKETING PLAN Objectives
Grow the brand to 183,000 cases in depletions
Increase brand awareness
Strategies
Increase velocity at retail in top markets
Expand distribution outside historical key markets (PA, NY, FL, NC, VA)
Engage in basic Public Relations communicating brad quality vs. affordability message and recent accolades
Tactics
Sampling Program
Merchandising
Coupons
Neckers
Press luncheons and relations
750 ml Holiday VAP

30. And coming soon… What happens when you combine… It’s time to shine…
A world-renowned chef
The power of the media and entertainment industries
A new spirits category grounded in the soul of America
The power and people of WJD
It’s time to shine…
This new brand will blow you away.
Cover bullets
… you’ll be hearing more about it in the coming months
We will roll out in limited markets in August and nationally in 18 moths

31. Spirits Summary Year 1 – A Year of Building
Contributor towards long term vitality and health of WJD
Profit-Focused
Brand Development and Value Creation
Portfolio Expansion
Establishing Deutsch Spirits in the Marketplace
Cover Bullets

32. Open for Anything… WJD is now officially in the spirits business…
Further proof that we’re open for anything!
Leave you with another Snoop hit…