Captûre Business Overview 2013
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- 2. Vision Organization Chart Market & Brand Executive Bios Vineyard Production Plan Winemaker Case Sales Wines Sales by Brand Performance Looking Forward Investment Summary 2
- 3. Captûre Wines was launched in 2008 to create world class Bordeaux- style artisan wines, originating in the steep, rugged terroir of our mountaintop vineyards In our first four years, we’ve created one of the most acclaimed and highly rated portfolios in California, and a nationally known and respected luxury brand 3
- 4. Our market strategy is to sell luxury wines directly to the affluent consumer Artisan wines costs 2 to 3 times more to produce, but command a 5 to 10 times premium price. With operating and sales margins significantly higher, it is the most profitable segment of the wine industry The global market for luxury wine remains strong, as cellars have appreciated at 40% over the past decade Investment cellars regularly include Napa and Sonoma artisan brands, and the Asian market is now turning to California wines At exit, luxury brands are valued at a premium 4
- 5. The Captûre brand is off to a good start: Covered in the Wall Street Journal, Forbes, CNN, Bloomberg, The Robb Report, Wine Spectator, Food and Wine, and other top publications Awarded consistent 90+ and classic scores from Robert Parker, Steven Tanzer, Wine Spectator, Wine Enthusiast, and other respected critics Named a “Top 100 Luxury Brand” by The Robb Report in 2010, and one of only five domestic white wines named to The Robb Report’s “Best of the Best” for 2011 Developed high-profile partnerships with prominent restaurateurs, top sommeliers, celebrity chefs and complementary luxury brands Invited to participate at Pebble Beach Food and Wine, Aspen Food and Wine, and other prestigious, invitation-only luxury events Served in top tier restaurants and hotels, in top U.S. markets 5
- 6. Rising to 2,450 feet above the Alexander Valley, and first planted to vine in the 1850s, Tin Cross Vineyards is one of the oldest and most beautiful vineyards in California The 240 acre grounds are studded with ancient oaks, artesian spring-fed lakes, wild turkey, bobcat, deer and boar, and the large mountaintop home is used for tastings and vacationing guests 6
- 7. Acquired in 2008, Tin Cross is now an ultra-premium wine-growing estate, with 40 acres of plantings in mineral-rich volcanic soils, steeply pitched to a variety of exposures and micro-climates Planting and organic farming practices are directed by Denis Malbec, a vigneron with decades of experience at Chateau Latour and other Bordeaux Grand Cru estates 7
- 8. Tin Cross is one of a handful of high elevation artisan vineyards that comprise the new Pine Mountain-Cloverdale Peak AVA The recently approved appellation contains less than 230 planted acres, and is the highest mountain AVA in the Napa and Sonoma wine regions With projects by Denis Malbec, Thomas Rivers Brown, Ulisses Valdez and other high profile winemakers already under way, Pine Mountain is quickly gaining recognition as a new, unique source of luxury quality fruit 8
- 9. Captûre ’s founding winemakers are among the most celebrated and successful in the world Denis Malbec was born at Chateau Latour, was apprenticed at Château Lagrange and Haut Brion, and returned as third generation winemaker (following his father and grandfather), for vintages 1994 through 1998 May Britt Malbec founded "Le Bateau,” on a luxury yacht built for King Frederic of Denmark. In 1992, she won the Prince Henri-Melchior de Polignac Award, and was named the Best Sommelier in the Nordic countries. In 1995, she joined Denis at Chateau Latour 9
- 10. Révélation Ma Vie Carol Dark Rose A pure, single vineyard Our very small lot Chardonnay A Bordeaux blend of Cabernet mountain cabernet $135 from Tin Cross $48 and Merlot grapes $20 Harmonie Les Pionniers Our best yearly blend of our Deep, nuanced SB, placed at best barrels $120 French Laundry $40 Alliance Tradition A Bordeaux expression of Rich, round sauvignon blanc, a pure mountain fruit $90 blend of four hillside sites $30 10
- 11. Fleuron Cabernet Fleuron Chardonnay A blend of Tin Cross estate A bright, lightly oaked wine from and hillside fruit $40 30-year old Tin Cross vines $24 Fleuron is our value line, priced for “by the glass” placements and national distribution We will be introducing new Sauvignon Blanc and Pinot Noir wines in 2013 Celebrity chef Tom Colicchio has commissioned a Fleuron “Cuvee wichcraft” for his national restaurant group 11
- 12. 92 2010 Ma Vie Carol Chardonnay 2009 Ma Vie Carol Chardonnay Wine Spectator 90 Anthony Dias Blue 90 2010 Les Pionniers Sauv Blanc 92 2009 Les Pionniers Sauv Blanc Wine Spectator Wine Spectator 2010 Les Pionniers Sauv Blanc 92 2009 Les Pionniers Sauv Blanc 92 Stephen Tanzer Wine Advocate 2009 Revelation Cabernet Sauv 2009 Tradition Sauv Blanc 95 91 Wine Enthusiast Wine Spectator 2009 Harmonie Cabernet Sauv 2009 Tradition Sauv Blanc 95 92 Wine Enthusiast Anthony Dias Blue 2009 Harmonie Cabernet Sauv 91 2008 Tradition Sauv Blanc 94 Wine Spectator Wine & Spirits 2008 Tradition Sauv Blanc 90 2009 Ma Vie Carol Chardonnay 92 Steve Tanzer Stephen Tanzer 12
- 13. 2012 2011 2010 Introduced our Fleuron value brand, to follow 2009 Established marquee through the channel distribution Began placements partners across Established 2008 with elite restaurants and major markets direct-to-consumer sales team Positioned Captûre hotels Released our first as a unique artisan portfolio of Red brand with press, Released additional Wines Acquired Tin trade and White Wine cuvees Cross Vineyards influencers and formed Captûre Wines Released our first portfolio of White Created the story, Wines defined the brand, developed the plan 13
- 14. Revenue and EBITDA 2009-2012 Fiscal Year ending June 30 $1.5 $1.0 MILLIONS $0.5 $0.0 ($0.5) ($1.0) ($1.5) 2009 2010 2011 2012 Revenue $0.024 $0.215 $0.816 $1.22 EBITDA ($1.00) ($0.594) ($0.210) $0.177 14
- 15. Revenue and EBITDA 2013-2018 Fiscal Year ending June 30 $10.0 $9.0 $8.0 $7.0 MILLIONS $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 2013 2014 2015 2016 2017 2018 Revenue $1.33 $2.35 $3.18 $4.09 $5.58 $6.42 EBITDA ($0.2) $0.1 $0.4 $0.9 $1.9 $2.1 15
- 16. Debt: Equity: $1,000,000 authorized $1,000,000 authorized $475,000 funded $450,000 funded 12% coupon Accredited investors only Conversion option, YE 2015 Secured by 2nd TD on Tin Cross Minimum $100,000 investment 16
- 17. Owners-only wine, events and Tin Cross lodging One case of each Capture and Fleuron cuvee per year Owner access to allocation-only wines and preferred pricing on all wines Annual 5 days lodging at Tin Cross Vineyards Participate in Captûre harvest, crush, winemaking and release events 17
- 18. Owner entree to unique wine country experiences “Behind the scenes” access to invitation-only tastings and luxury events (In 2012: Super Bowl VIP Arrival, L.A. Confidential Magazine at the W, Rolls Royce garden party in the Hamptons, Pebble Beach and Aspen Food and Wine , many more) Introductions to celebrity restaurateurs, chefs, sommeliers and winemakers Proprietor’s discounts at most wineries in Napa and Sonoma 18
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- 20. Proprietor Michael Foster CEO Ben Sharp Marketing and Vineyard Winemaker Finance Operations Sales Bacchus VM Malbec & Malbec Tim Cowart TBD Andre Boada 20
- 21. Michael Foster, Proprietor Bacchus VM Denis and May Britt Malbec, Winemakers The Foster Family purchased Tin Cross Bacchus Vineyard Management, led by CEO Denis was literally born into wine, and served as Vineyards and founded Captûre Wines Glenn Alexander, is one of the most winemaker, after his father and grandfather, at the in 2008. Mike is a successful successful precision farming organizations in famed Château Latour in Bordeaux. In entrepreneur, having grown and wine country. Bacchus brings their extensive 2009, Denis and May Britt, a former award- harvested multiple companies in the experience in sustainable, organic agriculture winning sommelier, achieved back to back 100- technology-leveraged information to the design, planting and care of Tin Cross' point Robert Parker-rated wines in the United sector, and founded several non-profit steep mountain vineyards. States. organizations. Timothy Cowart, CFO Andre Boada, VP Sales/Marketing Benjamin Sharp, CEO Tim Cowart is a principal at Burkland Andre has been building brands and creating Ben has 20 years of professional Associates, and serves Captûre as interim strategic relationships in the wine industry for experience, focused on the CFO. Tim has over 20 years experience over 20 years. He has been responsible for brands strategy, launch, and development of providing financial and strategic advice as diverse as Cuvaison, Markham and luxury consumer products. He began his to organizations in the alternative Greystone, and led the Artisan Estate portfolio career in the wine industry in 2004 energy, medical of La Crema, Stonestreet, Freemark Abbey, La working for industry icon Jess device, wireless, manufacturing, aerospace, onlin Jota, Cardinale and Lokoya for Jackson Family Jackson, of Kendall-Jackson Wines. Ben e services, venture capital, Wines. has an MBA from UCLA’s Anderson and other industries. Tim has an MBA from School and a Bachelor’s degree from University of Southern California and graduated with honors with a BS in Finance Duke University. & Accounting from Menlo College. 21
- 22. Projected Case Production 2013-2018 25.0 20.0 THOUSANDS 15.0 10.0 5.0 0.0 2013 2014 2015 2016 2017 2018 Fleuron 4.1 4.7 5.4 6.3 8.0 10.5 Captûre 6.4 8.0 10.0 11.1 12.1 13.0 22
- 23. Projected Case Sales 2013-2018 20.0 15.0 THOUSANDS 10.0 5.0 0.0 2013 2014 2015 2016 2017 2018 Fleuron 2.2 3.2 3.7 4.3 5.9 6.9 Captûre 2.6 4.3 5.1 5.7 7.7 8.8 23
- 24. Projected Sales Revenue 2013-2018 $10.0 $8.0 $6.0 MILLIONS $4.0 $2.0 $0.0 2013 2014 2015 2016 2017 2018 Private Client $0.5 $1.0 $1.8 $2.6 $3.8 $4.3 3 Tier $0.9 $1.3 $1.4 $1.5 $1.8 $2.1 24
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