2. CONTENTS
1. Summary
2. What Makes Us Different
3. The Team
4. Market Overview
5. Competition
6. Customer Profile
7. Business Model
8. Current State
9. New Store Concept
10. Marketing Campaign
11. Financials
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3. Summary
• WineZetta was built to answer the question: how would wine retail look if invented in the 21st century?
• WineZetta is an omni-channel, technology-driven retailer with nationwide sales ready to scale its operations to
become one of the top 5 wine retailers in the US.
• The US wine market is the largest in the world by volume and has been growing for 22 consecutive years. The US
online wine market has an untapped market potential of approximately $3.7 billion.
• WineZetta is poised to tap into this potential, and we expect to build to our steady state revenues in 5 years. The
expected payback period for the investment is approximately 3 years.
• WineZetta is currently a 100% women and minority owned business.
• In the seed stage (2012-2014), we raised $477K and established our prototype retail.
• We seek $1.0-2.0 million to expand our retail operations to 10,000+ sq ft and grow our internet presence.
– The funds will be used to develop a 21st century hi-tech retail space in Westchester, NY complete with interactive kiosks and
Enomatics, and to build our warehousing capacity to service our internet sales.
– We will grow our margins and increase our market share through leveraging economies of scale and having the broadest
portfolio with the highest quality to price ratios.
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4. What Makes Us Different
• WineZetta is more than a business – it is a scalable set of synchronous and efficient technologies.
• We started in 2012 with the acquisition of a small wine discounter store that we turned around, through sheer
sweat equity, into an omni-channel company with the best-in-industry technologies and practices.
• Where traditional wine stores rely on processes developed decades ago, everything at WineZetta is high tech:
our purchasing is scientific, based on extensive data mining and analytics. Our POS is cloud based and 100%
integrated with our e-commerce with real time inventory synchronization. We offer 100% accuracy to our
customers with 100% order fulfillment, zero errors and zero stock outs.
• Our e-commerce is supported by savvy SEO methods with direct product listings on Google Search/Shopping,
Bing/Yahoo Search networks and Wine-searcher.com (the #1 premium wine search engine in the world).
• WineZetta is the only wine store in NY located in a super-regional shopping center with co-tenants that include
Apple, Banana Republic, Brooks Brothers, Dick's Sporting, Express, Guitar Center, L.L. Bean, Lord & Taylor,
Victoria's Secret, Whole Foods and several more national retailers.
– The team had the determination and negotiating skills to persuade the mall operator Forest City Ratner to give us a space amongst
the corporate giants. We are the only wine & liquor store in New York located in a shopping center of this scale.
– Further, we negotiated exclusivity for off-premise alcohol sales which is a valuable asset that we intend to monetize.
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5. The Team
• Natalia Postrigan, founder and manager
– Natalia is an expert in operational efficiency and management of technologies. Her previous engagements include
program management and operational planning for the Sochi-2014 Winter Olympic Games and design of operational
processes for the opening of a leading fashion retail chain in Russia. Prior to WineZetta, she was employed in various
project management and management consulting roles in PricewaterhouseCoopers, BDO and Swiss Re. Natalia obtained
her MBA from the Darden Graduate School of Business in 2009 and has been managing WineZetta’s daily operations full-
time since inception. She is a wine connoisseur with a know-how in data-driven wine purchasing.
• Rahul Prabhu, founder and manager
– Rahul is a finance professional with extensive experience in financial modeling, financial planning, structured finance,
accounting and valuation. Prior to WineZetta, he served as Director of Structured Finance at Standard & Poor’s. Besides
his CFA and FRM certifications, Rahul obtained his MBA from the Darden Graduate School of Business in 2008. Rahul’s
previous entrepreneurial experience includes co-founding a successful educational venture in Texas. In addition to
finance and accounting at WineZetta, Rahul is responsible for technology assessment and implementation.
• Toms Zachariah, investor and advisor
– Toms is a management professional with 10+ years of experience in finance and operations. He obtained his MBA from
Cornell Business School and holds the CFA certification. He is an early investor who serves in an advisory capacity.
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6. Market Overview
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US: The largest wine market with the fastest growth
•The US wine market is the fastest growing in the world,
both in terms of production and consumption.
•In the last 2 decades, the market has nearly doubled in
volume and tripled in dollar value to $37.6 billion in 2014.
Engaging broad demographics
•Baby Boomers and Generation X’ers are the majority of
wine consumers.
•The Millennial generation is the fastest growing segment.
•54% of wine drinkers are women.
7. Market Overview
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The US has witnessed tremendous growth
•2014 was the 22nd consecutive year of growth of wine
sales by volume in the US.
•The US surpassed France to become the biggest wine
market by volume in 2010.
Yet there is significant room to grow
•US per capita wine consumption has steadily grown to 3.14
gallons per year.
•However, US per capita consumption significantly lags the
French and Italians showing significant room for growth.
200
250
300
350
400
201420122010200820062004200220001998
US Wine Retail Sales (Millions of Cases)
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2012201120102009
Per Capita Wine Consumption (Gallons)
France
Italy
USA
8. Market Overview
Key facts and trends
• 40% of the US adults drink wine (33% several times a week, 67% occasionally).
• More than 80% of wine in the US is sold off-premise, with double digit growth in every price segment over $12.
• Consistent trends:
– Modernization of access and convenience.
– Strong increase in grocery interest in spirits sales, but only 27 states permit grocery sales of spirits (NY does not).
– Technological advances drive sales through improved consumer convenience & experience (examples: Drizly, Minibar).
– Premiumization of spirits.
WineZetta has started on the right foot with the aim to create a modern and convenient shopping experience.
We intend to direct a portion of investment funds to install interactive WineZetta kiosks in large grocery chains in NY to offer
convenient wine & spirits purchasing while grocery shopping – we will be the first wine retailer to tap into this channel.
We have partnered up with Eat24 (recently acquired by Yelp) to offer local customers wine & liquor takeout at WineZetta, and we
plan to rollout a delivery service in New York and Connecticut in 2016.
We are in the talks with a major mobile wine app to become the Northeastern fulfillment partner.
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9. Market Overview
Online wine retail
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$3.7 billion of untapped market potential
• In other developed countries, online wine sales represent 5-15% of the total market.
• Furthermore, in retail as a whole in the US, online sales are 12% of total sales.
• Online wine sales in the US have increased at double digit rates for the past five years, but are still only 2% of total wine sales.
• We estimate that online US wine sales have potential to grow up to 12% of total wine sales, amounting to a current
untapped market of 10% of the total market or $3.7 billion.
Online wine market in the US is extremely fragmented
• The barriers to entry to setup e-commerce are low, but very few players have been able to execute.
• The key reason is the complicated inter-state shipping regulations for alcohol. Other challenges include portfolio selection
and management, building a client base, SEO, shipping logistics and special handling requirements.
• There are only 359 serious online wine retailers in the US (as defined by SKU number and sales volume).
• The biggest retailer, Wine.com, generates approximately $80 million in annual sales with 14,500 SKUs.
• There is a gigantic unclaimed market to be acquired by a new savvy large player.
10. Market Overview
Westchester County, NY
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Westchester County New York County
Population 973,000 1,636,000
Female 51.7% 52.8%
Bachelor’s Degree or Higher (25+) 87.6% 58.9%
Homeownership Rate 61.9% 22.8%
Households 344,000 736,000
Median Value of Owner Occupied Housing Unit $518,000 $828,000
Per Capita Income $73,000 $111,000
Affluent community with high disposable income
• Westchester is the 2nd richest county in NY after NY County (Manhattan). NY County is the richest county in the US.
• It is amongst the Top 10 richest counties in the US ranked by per capita income. There are 3,143 counties in the US.
• The Westchester population is highly educated, with a high homeownership rate, significant disposable income and high
spending power.
• Over 1/3 of the US households are within overnight shipping reach.
11. Competition in NY and Westchester
• There are 2,485 Off Premise Retail Licenses in NY State across 100+ cities.
• Off Premise Retail Licenses in NY Zone 1 (includes Westchester): 1,763.
• 300 wine retailers in NY have price lists on Wine-Searcher (indicates some scale).
• 95 wine retailers in NY are premium sponsors on Wine-Searcher (indicates large scale).
The remaining 2,390 retailers are small mom & pop stores.
• Only 15 of these 95 stores are based in Westchester.
• Only 6 Westchester wine retailers have >3,000 SKUs and revenues >$1 million.
• The biggest and oldest player Zachys has a small boutique store in front of the Scarsdale
Metro North station and does most of its business online and via the auction market.
• The retailer with the biggest store is Westchester Wine Warehouse. It has consistently
poor customer service reviews and lacks a strong online presence.
• There is no major wine destination store in Westchester that has it all, with modern
technologies, great customer service and a strong online presence.
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Retail Store City SKUs Revenues
Zachys Scarsdale 6266 $10-20 Million
Westchester Wine Warehouse White Plains 5511 $5-10 Million
Bedford Wine Merchants Bedford 4081 $1-2.5 Million
Varmax Liquor Pantry Port Chester 3664 $1-2.5 Million
Grapes The Wine Company North White Plains 3425 ~$1 Million
Suburban Wines Yorktown Heights 3211 $2.5-5 Million
12. Customer Profile
Who buys wine online?
• Typical profile is male, over the age of 40, married with children and high household income.
• Collectors who choose to buy online because of the convenience. Optimal collectible value is assigned to
complete wine cases and collectors like to take advantage of online retailers delivering to the door.
Why do people buy online?
• The convenience of delivery becomes the decisive factor with age, as full cases of wine weigh over 35 pounds.
• Another factor is access and instant gratification of “scoring” a low availability highly sought-after item online.
What do people buy online?
• Preference for higher quality wines from recognized appellations, family-owned and/or small wineries.
• “Hot” items with high collectible value e.g. small stock wines that have just received high critical acclaim.
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13. Customer Profile
Who buys wine in a retail store?
• Typical profile is female, frequently in groups of 3 and more, often with the entire family.
• Millennial consumers of legal drinking age.
Why do people buy on-site?
• Millennials enjoy the experience of physically choosing the wine and reading the labels.
• On-site customers look for convenience: easy access to free parking, ability to combine alcohol purchasing with
grocery shopping.
• Wine tasting and classes are great customer attractions on-site and provide a social experience.
What do people buy on-site?
• On-site purchase objectives range from impulse buy to stocking for a large event.
• Gift options are important, with demand for alcohol gift sets and accessories such as gift bags, wine glasses,
corkscrews. Gift certificates are very popular as a birthday or seasonal gift.
On-site wine retail experiences very prominent seasonality with 40-60% of annual sales occurring in November-
December. Because of the difference between the customer profiles online and on-site, having both channels gives
WineZetta the broadest customer base and efficiently hedges the effects of high on-site seasonality.
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14. Business Model
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On-site
retail in NY
Nationwide
online
2012 20152013 2014 2016
Store
acquisition
e-Commerce
development
Opened the
model store
Open the
new store
Our history: Omni-channel distribution:
Best in class retail technologies
•Cloud-based POS, Top 3 e-Commerce, SEO, in-store kiosks,
Enomatics.
•POS and E-Commerce technologies work synchronously.
•WineZetta is the only wine retailer to show stock quantity
down to the bottle in real time – consumers love the
accuracy.
Purchasing know-how
•Scientific research-based approach to selecting wine.
•Mine data from the major wine publications.
•Assess Quality-to-Value within a rating category and price
point. Additional criteria include producer, varietal, vintage,
production scale, and appellation.
•Advanced ranking metrics such as wwpQPR.
•Focus on the highest quality to price ratios.
Marketing
•Multi-strategy SEO. Google Analytics to measure performance. 4,500+ subscriber email program via Constant Contact. Social
presence (Facebook, Pinterest, Twitter, Tumblr). Informative product presentation. Retargeting campaigns.
15. Current State
• After 3 years of extensive work and fine-tuning, the business is sustainable, with consistent revenues.
• Our assets at a glance:
– over 700 SKUs of physical inventory, storage and retail furniture, custom-built register island,
– best-in-class multi-platform e-Commerce store with 4,500+ subscribers,
– total off-premise alcohol sales exclusivity agreement in a super-regional shopping center.
• Our further growth is restricted by the limitations of the 1,500 sq ft space. The small storage and crowded retail
area restrict the ability to purchase in bulk to reduce costs. There is no space for events that increase traffic.
• Scaling up will generate the revenues that will be used to boost the customer acquisition online and on-site with
measures such as new online features and more sales channels (interactive kiosks in groceries, local delivery etc).
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16. New Store Concept
• 10,000 sq ft in a strategic high traffic location in Westchester.
• Floor plan by categories: big production wine & spirits, fine wine room, featured craft products from New York.
• Permanent tasting area equipped with Enomatics (hi-tech wine tasting equipment).
• Large event area for Meetups, wine classes and promotional events.
• Sufficient storage space to support bulk purchasing for the online portfolio of over 5,000 SKUs.
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Main floor area Fine wine room Space for meetups Enomatics for wine tasting
(images do not represent final design)
17. Marketing Campaign
Local Advertising:
• Television: CableVision commercial plan
• Print: Westchester Magazine, Riverdale Press, Metro North in-train and station boards
• Radio: PR participation on radio shows, radio advertising
Online Promotion:
• Premium listing on Wine-Searcher (the largest wine search engine in the world)
• SEO: Google Search/Shopping, Microsoft Bing/Yahoo Networks
• Retargeting: AdRoll, Magnetic
• Specialized listing on eRobertParker.com (the largest wine rating agency)
• Advertising on wine blogs: WellesleyWinePress
• Social media campaigns on Twitter, Facebook, Pinterest and Tumblr
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18. Financial Projections
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9.78
11.33
13.16
15.30
17.83
20.81
-
5
10
15
20
25
Year 1 Year 2 Year 3 Year 4 Year 5 Steady State
$Millions
Sales Projections
In-store Sales Internet Sales Total Sales
0.65
0.87
1.09
1.34
1.63
1.97
0.00
0.50
1.00
1.50
2.00
2.50
Year 1 Year 2 Year 3 Year 4 Year 5 Steady State
$Millions
EBITDA Projections
Detailed projections available for accredited investors.
19. Summary
• Hi-tech 21st century wine retailer with best-in-class technologies and an established prototype at a super-
regional shopping center in Westchester, NY.
• Determined and enthusiastic team that is redefining wine retail.
• Raised $477K to date used to implement the technologies and establish the prototype store.
• Seeking an equity investment of $1-2 million to expand our retail operations to 10,000+ sq ft and grow our
Internet presence to become a Top 5 national wine retailer.
• Forecasted payback period of the investment is approximately 3 years with strong and sustainable cash flows in
steady state.
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