1. US Drinks Conference 2010 Brought to you by: Allocating Marketing Budgets

2. U.S. Drinks Conference 2010 Product: Good Tasting Product Unique, Attractive Package Product Point Of Differentiation Path: Organization (Your Own or Importer/Supplier) to Manage Business Distributors Who Stock and Distribute Product Retailers (On & Off-Premise) Who Introduce Your Product to Your Target Consumers Promotion: Sales and Education Materials In-Store/Bar Merchandising – POS Support Advertising/Public Relations/Programs Price: Must Fit Positioning What Brands Need to Bring to Market 2

3. U.S. Drinks Conference 2010 U.S. Drinks Conference 2010 Should do… Could do… Allocating Budgets - A Question of: Must do… 3

4. U.S. Drinks Conference 2010 U.S. Drinks Conference 2010 You Must 4

5. U.S. Drinks Conference 2010 You Must Get the Product into a distributor. Who is looking for: –What are you going to do to move it out of our house so I can make money Get Retailers. Who are looking for: –What are you going to do to move it out of our bar/store so I can make money Get Consumers. Who are looking for: –A product (like yours) that fits my needs 5

6. U.S. Drinks Conference 2010 You Must Sell Your Product and Educate Trade and Consumers on Why Your Brand –Provide sales tools to your sales teams (internal and external) Sales literature, sampling kits, fact cards, etc –Education material – –What is this product? Why should I sell/consume it? »Product description, tasting notes, pairings, point of differences, etc 6

7. U.S. Drinks Conference 2010 You Must Create Consumer Demand at Point of Purchase and Outside POP At POP –Off-Premise – bottle necker, shelf talkers, display materials… –On-Premise – fact cards, table tents, unique point of sale that brings your –Both - Sampling, promotion, events.. Outside: bring your brand to life… –Advertising –Public Relations –Social Media –Your budget will dictate which way you go 7

8. U.S. Drinks Conference 2010 U.S. Drinks Conference 2010 You Should 8

9. U.S. Drinks Conference 2010 You Should Market your brand to the Trade: –Retailers –Bar Owners –Bartenders –Staff –Etc Why you may ask? 9

10. U.S. Drinks Conference 2010 U.S. Drinks Conference 2010 FUNNEL 10

11. U.S. Drinks Conference 2010 FUNNEL 11

12. U.S. Drinks Conference 2010 How To Market To The Trade The Top Way Trade Gets Information is: –Trade Publications Editorial –Distributors –Suppliers –Trade Publication Advertising –On-Line –E-Newsletters Working with Trade Publications is effective: –Trade PR is effective and lower cost –On-Line growing and where they say they want to get info –Trade Advertising effective in getting your exact message to the trade Reversed for Off vs. On 12

13. U.S. Drinks Conference 2010 You Should Promote your brand to your target consumer Social Media Marketing Blogs specifically set up for Beer, Wine, or Spirits that can reach large numbers of Passionate beverage alcohol consumers Sites & Forums that reach large sums of consumers who are interested in Beer, Wine, Spirits FaceBook – Best place, least expensive way to engage your consumers Other Media Outreach – traditional & on-line Targeted to your audience as much as possible Also key in on lifestyles that match your target consumers 13

14. Shifting Marketing $$ to Online/SMM Adding Reducing 14 Marketing Sherpa 2009

15. U.S. Drinks Conference 2010 U.S. Drinks Conference 2010 You Could

16. U.S. Drinks Conference 2010 You Could Advertise: On-Line allows you to target consumers and lower cost Traditional more expensive and less targeted Events Facilitates sampling Tie in with Celebrities At events Though Sponsorships Conduct Partnership programs Tie-in with complimentary products, programs, etc Value Added packs 16

17. U.S. Drinks Conference 2010 Reference Media Spend: Spirits Reference Media Spend: Spirits 17 Measured Media Spend 2009: Spirits ($000's) Mag.Newsp.OutdoorB'castTotal Vodka Absolut$12,342$315$1,103$4,073$17,833 Grey Goose$10,211$358$0$3,605$14,174 Svedka$7,609$189$1,663$0$9,461 Ultimat$3,314$0$490$21$3,825 Tito's$2,406$152$0$20$2,578 Georgi vodka$0 $148$0$148 Whiskies Jack Daniel's$4,004$35$1,235$9,186$14,460 Jameson$3,283$5$198$6,235$9,721 The Glenlivet$3,913$864$0$49$4,826 Red Stag by Jim Beam$316$0 $1,148$1,464 Rum Captain Morgan$187$16$600$18,795$19,598 Gosling$1,221$0 $1,221 Sailor Jerry$0 $225$198$423 Gin New Amsterdam$2,196$0 $175$2,371 Bombay Sapphire$1,958$0 $203$2,161 Bulldog$44$0 $44 The B.I.G. 2010 Liquor Handbook

18. U.S. Drinks Conference 2010 Measured Media Spend 2009: Spirits ($000's) Mag.Newsp.OutdoorB'castTotal Vodka Absolut$12,342$315$1,103$4,073$17,833 Grey Goose$10,211$358$0$3,605$14,174 Svedka$7,609$189$1,663$0$9,461 Ultimat$3,314$0$490$21$3,825 Tito's$2,406$152$0$20$2,578 Georgi vodka$0 $148$0$148 Whiskies Jack Daniel's$4,004$35$1,235$9,186$14,460 Jameson$3,283$5$198$6,235$9,721 The Glenlivet$3,913$864$0$49$4,826 Red Stag by Jim Beam$316$0 $1,148$1,464 Rum Captain Morgan$187$16$600$18,795$19,598 Gosling$1,221$0 $1,221 Sailor Jerry$0 $225$198$423 Gin New Amsterdam$2,196$0 $175$2,371 Bombay Sapphire$1,958$0 $203$2,161 Bulldog$44$0 $44 Reference Media Spend: Spirits Reference Media Spend: Spirits 18 The B.I.G. 2010 Liquor Handbook

19. U.S. Drinks Conference 2010 Reference Media Spend: Beer 19 Measured Media Spend 2009: Beer ($ 000's) PrintBroadcastTotal Corona Extra$9,556$35,083$44,639 Heineken$10,262$28,741$39,003 Dos Equis$204$22,040$22,244 Stella Artois$10,940$6,065$17,005 Sam Adams Boston Lager$86$16,328$16,414 Guinness$330$7,334$7,664 Beck's$997$2,539$3,536 St Pauli Girl$725$0$725 Grolsch$0 The B.I.G. 2010 Beer Handbook

20. U.S. Drinks Conference 2010 Measured Media Spend 2009: Beer ($ 000's) PrintBroadcastTotal Corona Extra$9,556$35,083$44,639 Heineken$10,262$28,741$39,003 Dos Equis$204$22,040$22,244 Stella Artois$10,940$6,065$17,005 Sam Adams Boston Lager$86$16,328$16,414 Guinness$330$7,334$7,664 Beck's$997$2,539$3,536 St Pauli Girl$725$0$725 Grolsch$0 Reference Media Spend: Beer 20 The B.I.G. 2010 Beer Handbook

21. U.S. Drinks Conference 2010 Pro Forma Budget Allocation Just a starting point 21

22. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Spirit 22 BAT Analysis

23. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Spirit Stimulate measurable actions by people who “raise their hand” Priorities Put Your Money On the Street Get the Trade Involved 23 BAT Analysis

24. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Wine 24 BAT Analysis

25. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Wine 25 Get the Trade Involved Put Your Money On the Street Stimulate measurable actions by people who “raise their hand” BAT Analysis

26. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Beer 26 BAT Analysis

27. U.S. Drinks Conference 2010 Pro Forma Budget Allocation: Beer Put Your Money On the Street Get the Trade Involved Stimulate measurable actions by people who “raise their hand” 27

28. Conclusions You need to think about: –What are your short and long-term goals –What type of product are you launching: Value brand vs. premium brand –How much money can you invest –Do you need to be national? – You can go regional or in a state or two You have to determine what you must, should and could do U.S. Drinks Conference 2010 28

29. U.S. Drinks Conference 2010 Thank You! Jeff Grindrod, Managing Partner 1 Darling Dr. Avon, CT 06001 USA 860-676-7900 JeffGrindrod@comcast.net