The Consolidation of RH Phillips-Hogue

Brands in Maryland

OBJECTIVE

1

•Almost no turnover among office Almost no turnover among office & support staff& support staff

•Customer service employed for an average of 5 years

• Our strength is our people!Our strength is our people!

BACCHUS CULTURE•12 full-time salespeople in Maryland12 full-time salespeople in Maryland

•Employed for an average of 6 years

•No turnover for over 5 years

2

Bacchus currently services 90+% of the accounts offering

RH Phillips products in MD

FACTS

* Information based on comparative sales reports for Reliable Churchill & Bacchus in Maryland

3

Bacchus has Hogue placements in over 100 accounts not currently

offering RH Phillips products

FACTS (2)

* Information based on comparative sales reports for Reliable Churchill & Bacchus in Maryland

4

Bacchus has superior on-premise support.

Restaurant % Bacchus Restaurant %

Bacchus Restaurant % Bacchus

208 Talbot 40% Inn at Perry Cabin 30% Ruth’s Chris 25%

Antrim 1844 40% Harry Browns 45% Sotta Sopra 25%

Atlantic 35% Jeannier’s 25% Soigné 30%

Bicycyle 30% King’s Contrivance 30% Rudy’s 2900 25%

Black Olive 40% Lewnes 45% Spike & Charlie’s 35%

Aldo’s 25% Linwoods 25% Town Dock 40%

Boccaccio 15% Louisiana 30% Tsunami 50%

Brass Elephant 30% Milton Inn 35% Vespa 35%

Café Troia 30% Northwoods 20%* RH Phillips products are currently represented in less than 2% of these

accounts.

Charleston 40% O’Leary’s 35%

Corks 40% Oregon Grille 25%

Due 25% Polo Grill 25%

Hamptons 25% Prime Rib 25%

5

RH Phillips fills a very specific need in the Bacchus Portfolio - with limited competition

FACTS (3)

Example: Competition for Toasted Head Chardonnay

Bacchus Reliable Churchill

6

Coordinated sales efforts, distribution, marketing and support

BACCHUS BENEFITS

Unified message to customers resulting in

stronger brand presenceIn Maryland & DC

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BACCHUS BENEFITS (2)

Clicquot, Inc. $3.9M 16%Empson $2.3M 10%Vineyard Brands $2.1M 10%Wilson Daniels $1.6M 7%Marc de Grazia $1.1M 5%Hogue $.5 3%

Before RH Phillip-Hogue Consolidation

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RH Phillips-Hogue would become Bacchus’ #1

Domestic Supplier

BACCHUS BENEFITS (3)

RH Phillips-Hogue $1.7M 7%Wilson Daniels $1.6M 6%Cline $.9M 4%

After RH Phillip-Hogue Consolidation

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RH Phillips-Hogue would become Bacchus’ #4 Supplier over-all giving the combined Brand priority in Bacchus’ top accounts

BACCHUS BENEFITS (4)

Clicquot, Inc. $3.9MEmpson $2.3MVineyard Brands $2.1MRH Phillips-Hogue $1.7MWilson Daniels $1.6MMarc de Grazia $1.1M

After RH Phillip-Hogue Consolidation

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Over 90% coverage in existing RH Phillips accounts

Commitment to service RH Phillips customers not currently serviced by Bacchus

BACCHUS BENEFITS (5)

Moving from one part of the Charmer family to another

ensures immediate impact and minimal ramp up

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Immediate access to increased on-premise placements

X% of Hogue sales are to major on-premise accounts

BACCHUS BENEFITS (6)

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Dynamic on-line POS

Custom large scale displays

BACCHUS BENEFITS (7)

B2B eCommerce solution available to customers and sales force within 6 mos.

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BACCHUS IS THE RIGHT CHOICE IN MARYLAND

•RESOURCES: Latest technology and marketing support available to our customers & sales force 24 hours a day

•HISTORY: Seventeen years in the market with substantial growth annually

•COMMITMENT: RH-Phillips-Hogue will immediately become our #1 domestic supplier - #3 overall

•SMOOTH TRANSITION: Similar market numbers and increased on-premise exposure ensures immediate impact and minimal ramp up

•RESULTS: A proven track record with new & established brands

•PEOPLE: Loyal, motivated, successful salespeople who know the Maryland market

•REACH: Dominant presence in major on-premise & off-premise accounts

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