"Way too many people in the wine business want to come out and talk about how many barrels they use or what the terroir is. There is nobody in the millennial generation that gives a crap. They would much rather know about the name of the dog that runs around in the vineyard. That's much more personal." Gary Vaynerchuk Agenda BIG opportunity. BOLD plan. Millennial Males Account For $2.2 BILLION in wine purchases 3 Millennial Drink Brands Visually Impactful Confident Sophisticated Social 4 Look for brand video at www.Sledgehammerwine.com/tr ade 5 Agenda BIG opportunity. - worth $2.2 billion - needs a bold brand BOLD plan. Traditional Advertising Won’t Work Our Target: Millennial Men Reaching millennials is difficult Watch more than an hour of TV day Social Network users The Rest of the Market: Gen X, Boomers Millennials 57% Above 30 79% 72% 40% 7 8 Carolla became famous as host of the radio show & MTV program Loveline from 1995 to 2005, as the co-host of the television program The Man Show (1999–2004), and most recently for his performance on Dancing with the Stars. Carolla started a daily podcast on February 23, 2009 at his personal website. The first Adam Carolla podcast was downloaded over 250,000 times and, as of the third podcast, it was the number one podcast on iTunes in both the U.S. and Canada. 9 Carolla Podcast Facts: Up to 300,000 unique downloads per day with 89% of listeners being Men 2009 iTunes Rewind “Best Podcast of the Year” The Adam Carolla podcast consistently ranks ahead of HBO’s Real Time with Bill Maher, Ricky Gervais, & President Obama’s Weekly Address 10 Carolla Partnership Exclusive Original Content via 2.0 Outlets 6 Viral Webisodes 12 Social Media Blitzes (Twitter & Facebook Attacks) 4 Separate :30 Ads on Podcast 4 Podcast Segments & On-air Game Show Ten Comedy Tour Show Sponsorships Show tickets for distributor incentives, trade entertainment, consumer prizing Post-show meet & greets (select cities) for incentives, prizing and media 115,000 Twitter followers 14,000 Facebook friends 300,000 daily podcast downloads 11 12 Locate Retailers Online NEW! Website Launched Jan 15 13 Where you’ve seen us… 14 Winning in New York ROS Already Competitive within Peer Group Total Nielsen Liquor Eq Vol / ACV 7 Deadly Zins 292.1 Sledgehammer 261.9 337 231.9 AC Nielsen P52W ending 9/18/10 NY Hot Spot Placements Palace Hotel Chelsea Wine Cellar Voodoo Lounge Battery Gardens Black Door Club Max Cielo Club Greenwich Village Bistro Keys to Success • Robust start: – – – • Maintain Focus – – – • Initial 60-day one case pricing for distribution PLUS distribution incentives Put in the right accounts, branded tastings in retail, lobby tastings in Hotels and restaurants on night they would feature SH Sponsorship of hip events, like premier parties First 6 months SH is always on sales rep quota SH at least one varietal on our monthly blitz Paid for windows displays (especially important in metro) Driving the Sale home: “a lot of buyers don’t understand “millennial” when we explain it in marketing terms. We pull a bottle of Jagermeister and put next to Sledgehammer. The colors are the same and most of the time so are the drinkers. They get it.“ - Gstell 15 Channel Focus Objective: Build distribution in key millennial male accounts to maximize targeted marketing & PR activities. (50/50 on-off-premise split) OFF-premise Club Mass/Supercenter Specialty Grocery Convenience & Conventional Wine Specialty *Liquor stores will vary by market. (Michigan Avenue vs. Southside Chicago) More upscale liquor stores in the right neighborhoods are key. ON-premise Fine Dining Casual Theme Casino Private Club Country Club/Golf Hotels Catering & Food Service Bars/Nightclub 16 This is not traditional wine marketing. Objective Tactics Tools (1) Capture the attention of Millennial Males (1) Digital Activation (1) Carolla (2) Develop Brand Ambassadors (2) Metro/Urban Focus (2) POS (3) The package (3) Find the Hot Spots What is isn’t: – Distribution everywhere – Buble holiday promotion 17 SLEDGEHAMMER is the RIGHT wine. the RIGHT distribution. the RIGHT marketing plan. the RIGHT time. Appendices 19 Sledgehammer Cabernet Points of Distinction: • 91% of the grapes are from Alexander Valley • Long hang time on the vines creates a robust 14.2% alcohol wine with big, ripe fruit flavors • 14% Syrah was blended in to increase the ripe fruit, body, and tannin structure of the Cab Sauv. • Aged in American, French and Hungarian oak fo 2 years. Sledgehammer Cabernet Sauvignon Appellation: North Coast Vintage: 2007 Retail Price: $15.99 Promoted Price: $14.99; BTG Price: $9 Tasting Notes: Complex aromas of black cherry and notes of cinnamon and nutmeg lead to powerful flavors of plum and dark berry fruit. The wine has supple tannins and well integrated oak from barrel aging. 20 Sledgehammer Zinfandel Points of Distinction: • 80% Lake Co. "Mountain Fruit," producing intensely bold Zinfandels. Another 20% from benchmark Sonoma appellations Alexander Valley and Dry Creek Valley. • A long hang time resulted in a wine with 15% alcohol and big ripe fruit flavors. • 11% Petite Sirah and 8% Syrah were included in the blend to increase the ripe fruit, body, and tannin structure of the Zinfandel. Sledgehammer Zinfandel Appellation: North Coast Vintage: 2007 Retail Price: $15.99 Promoted Price: $14.99; BTG Price: $9 Tasting Notes: Intense aromas of blackberry, black pepper, toasted oak and a hint of brown spice. Bright flavors of raspberry and blackberry fruit with some vanilla highlights from the influence of again in small oak barrels. 21 360 Program Overview Comedy Tour Sponsorship Celebrity Spokesperson Consumer Events PR & Social Media National In-Store POP Podcast & Online Integration On-premise 22