“ Working with your distributor for better business with wine” Jerry Baxter Vice President, National Accounts May 20, 2008

CHARMER SUNBELT GROUP: WHO WE ARE The Charmer Sunbelt Group is a leading distributor of fine wines, spirits & beer Annual Revenue = $4.1B Selling more than 60 million cases per year Operating in 16 markets which total more than 40% of the US Spirits & Wine market Employing more than 7,000 associates nationwide WINE SPIRITS BEER/COOLERS OTHER/NON-ALCOHOLIC

The Charmer Sunbelt Group is a leading distributor of fine wines, spirits & beer

Annual Revenue = $4.1B

Selling more than 60 million cases per year

Operating in 16 markets which total more than 40% of the US Spirits & Wine market

Employing more than 7,000 associates nationwide

CSG VISION To be the Distributor of Choice…

CHARMER SUNBELT NATIONAL FOOTPRINT AL: Alabama Sales Co AZ: Alliance Beverage CO: Beverage Distributors CT: Connecticut Distributors DC: Washington Wholesale DE: United Distributors of DE FL: Premier Beverage MA: Commonwealth W & S MD: Reliable Churchill MD/DC/DE: Bacchus Importers MS: Mississippi Sales Co NC: Prestige Wines Distributors NJ: R&R Marketing NYC: Empire Merchants NY: Empire Merchants North PA: Capital Wine & Spirits SC: Ben Arnold-Sunbelt Beverage VA: Associated Distributors We do business in some of the largest and most dynamic markets in the country… MT WY ID WA OR NV UT CA AZ ND SD NE CO NM TX OK KS AR LA MO IA MN WI IL IN KY TN MS AL GA FL SC NC VA WV OH MI NY PA MD DE NJ CT RI MA ME VT NH AK HI DC

Wine Distributors…past, present, future…

WORKING WITH YOUR DISTRIBUTOR FOR BETTER WINE BUSINESS… Delivering superior service to our customers Understanding and adjusting to evolving customer needs: Developing innovative concepts to build customer businesses and delight their patrons. Providing consumer insights for common understanding of our shared patrons.

Delivering superior service to our customers

Understanding and adjusting to evolving customer needs:

Developing innovative concepts to build customer businesses and delight their patrons.

Providing consumer insights for common understanding of our shared patrons.

VALUE ADDED INITIATIVES FOR DRIVING WINE SALES Trade Training Focus Server Sales Skills Product Knowledge Catering Sales Development Category Management Efficient Assortment Promotional Lift Merchandising Assessment Concept Sells Library “ beyond price to increase incidence…” 1- Increase Profitability 2- Increase number of customers purchasing alcohol. 3- Train servers to increase sales. Three of the top five responses from the Technomics Operator Survey October, 2007 Unlocking Opportunities for chain operators…

Trade Training Focus

Server Sales Skills

Product Knowledge

Catering Sales Development

Category Management

Efficient Assortment

Promotional Lift

Merchandising Assessment

Concept Sells Library

“ beyond price to increase incidence…”

PROFESSIONAL WAITSTAFF SALES & SERVICE Professional Wait Staff Sales & Service Server Sales Skills emphasis Teaching selling fundamentals Harnessing & enhancing employee “selling power” Casual Dining Product Knowledge Introduction to wine and spirits Basic knowledge for building staff confidence Breaking down intimidation and creating a “comfort zone” Both products can be customized depending on operator staff needs and development Lead Time and Planning Required!

Professional Wait Staff Sales & Service

Server Sales Skills emphasis

Teaching selling fundamentals

Harnessing & enhancing employee “selling power”

Casual Dining Product Knowledge

Introduction to wine and spirits

Basic knowledge for building staff confidence

Breaking down intimidation and creating a “comfort zone”

Both products can be customized depending on operator staff needs and development

Lead Time and Planning Required!

Content What is Salesmanship? How can you sell effectively? Why sell wine & spirits? Principles of successful wine & spirit sales Everyday tools to take with you PROFESSIONAL WAITSTAFF SALES & SERVICE

Content

What is Salesmanship?

How can you sell effectively?

Why sell wine & spirits?

Principles of successful wine & spirit sales

Everyday tools to take with you

Curriculum Viticulture Wine Making Wine Labels Wine Tasting Distillation Types & Styles INTRODUCTION TO WINE, SPIRITS & BEER

Curriculum

Viticulture

Wine Making

Wine Labels

Wine Tasting

Distillation

Types & Styles

PROFESSIONAL CATERING WINE SEMINAR Part I: Selling Wine With Confidence The Power of Wine $ales The Four Principles of Selling Wine Part II: Tasting & Talking About Wine Sensory Evaluation Palate Calibration Exercise Part III: Aroma Identification Aroma Wheel Team Exercise Part IV: Adding Wine to Catering Events Creative Marketing Part V: Food & Wine Pairing The “Popcork” Experience

Part I: Selling Wine With Confidence

The Power of Wine $ales

The Four Principles of Selling Wine

Part II: Tasting & Talking About Wine

Sensory Evaluation

Palate Calibration Exercise

Part III: Aroma Identification

Aroma Wheel Team Exercise

Part IV: Adding Wine to Catering Events

Creative Marketing

Part V: Food & Wine Pairing

The “Popcork” Experience

ON PREMISE CATEGORY MANAGEMENT… Rationale Analyze business performance Grow wine sales and profits Better serve customer needs by recognizing category contributions Wine Program Efficiency Fact based recommendations Application Review category goals and objectives. Review external sales data, consumer pull (A.C. Nielsen) and demographics (Spectra) Assess internal Point of Purchase data Develop action plan for distribution assortment BTG & BTB “ Marry” with concept selling for promotional initiatives

Rationale

Analyze business performance

Grow wine sales and profits

Better serve customer needs by recognizing category contributions

Wine Program Efficiency

Fact based recommendations

Application

Review category goals and objectives.

Review external sales data, consumer pull (A.C. Nielsen) and demographics (Spectra)

Assess internal Point of Purchase data

Develop action plan for distribution assortment BTG & BTB

“ Marry” with concept selling for promotional initiatives

CONCEPT SELLS LIBRARY… Wine Flights Half glass of wine at lunch Menu Marriages Picture Perfect Profits Talking Table Tent Wines BTG poured tableside A Greener Vision (CO) = The grapes used to make this wine are from vineyards that are Certified Organic. (SF) = The grapes used to make this wine are from vineyards using Sustainable Farming practices. (BF ) = The grapes used to make this wine are from vineyards using Biodynamic Farming practices.

Wine Flights

Half glass of wine at lunch

Menu Marriages

Picture Perfect Profits

Talking Table Tent

Wines BTG poured tableside

A Greener Vision

CLOSING… Thanks for your time! Make your distributor relationship work for you and your wine business……