This document outlines the 5-step plan that Dented Brick Distillery followed to make itself an attractive acquisition target. Step 1 was to build a scalable distillery. Step 2 was to develop award-winning spirits brands. Step 3 was attracting multi-state distribution. Step 4 was gaining market penetration through retail and restaurant accounts. Step 5 is ongoing work to grow case sales through targeted marketing. The distillery has completed the first 4 steps and is now focused on the final step to further increase its value before being acquired.

1. Built in 2016 to be Acquisition Ready
Dented Brick Distillery

2. 8 Year Average Time to Acquisition
1. Build a Scalable Distilled Spirits Plant
2. Build an Award Winning Product Line
3. Attract Multi-State Distribution
4. Gain Market Penetration
5. Grow Case Sales
Steps to be Acquisition Ready

3. Step 1 : Build a Scalable Distilled Spirits Plant
Not a repurposed building
All new infrastructure
Minimum maintenance costs
Built to Scale to 78K cases

4. Step 2 : Build an Award Winning Product Line
2018 Gold Medal Winners
2018 Double
Gold Winner

5. Build a Competitive Product Line
All 2018 Silver Medal Winners
1L Well Gin $11.99
Gilbey’s 1L Square $12.12
1L Well Rum $11.99
Bacardi 1L Square $18.99
1L Well Vodka $11.99
Smirnoff 1L $19.99

6. Build Private Label Brands
2018 Gold Medal

7. Jan Stephenson LPGA LEGEND
LPGA Tour major championships (3)
Other LPGA Tour (13)

8. Step 3 : Attract Multi-State Distribution
Revel
Nevada
RNDC
K&L
Benchmark
Superior Wine
and Spirits
H2Vino
VinocopiaYoungs
Market
Company
Phenix Wine
and Spirits
Johnson Brothers
LibDib
Prime Wine and Spirits
Prime Wine and Spirits

9. Step 4 : Gain Market Penetration
Off Premise Chain or State Liquor Store
On Premise Account

10. Steps 1 to 4 of 5 Step Plan Complete

11. 1
1
FOCUS ENERGIES ON SMALL GROUP OF CORE
PRODUCTS
TARGET MAJOR METROPOLITAN AREAS
FOCUS OUR ENERGIES ON WHAT WE CALL OUR CORE WELL LINE, 3 BASIC
SKUS: RUM, VODKA, GIN
EMPHASIS IN UTAH, COLORADO, CALIFORNIA (LA AND SF), NY/NJ
(GREATER NYC AREA), ILLINOIS (CHICAGO), AND FLORIDA (EMPHASIS ON
MIAMI).
MULTIPLY THE SIZE OF OUR SALES TEAM UTILIZING DISTRIBUTION
DISTRIBUTION PHYSICALLY LOCATED IN THE KEY METROPOLITAN AREAS
Step 5 : Grow Case Sales

12. Sales Team Incentives
DBD’s incentive program offers sales teams bonuses
for menu placements, case sales, and new account
activations.

13. On-Premise Account Strategy
DBD’s on-premise strategy allow sales teams the
opportunity to incentivize their accounts by offering
utilitarian branded items free of charge. Not only are
sales stimulated, but brand activation at the account
stimulates consumer purchases off-premise.

14. Items Ordered via DBD’s Web Portal

15. Off-Premise Account Strategy
DBD’s off-premise incentive programs offer discount
coupons, shelf talkers, tastings, branded display cases,
and coop advertising to encourage stores to buy our
brands.

16. Consumer Branding Strategy
DBD’s on-premise brand activation programming is
enhanced with consumer tours and tastings, special
event sponsorships, social media outreach, radio,
print, and web interaction .

17. Consumer Branding Strategy
DBD’s barrel program is designed to generate revenue,
build our whiskey program, and create brand
ambassadors.

18. The Competition
Mega Brands versus Craft Brands

19. CRAFT BRANDS
Producing Less than 100,000 Proof Gallons
MEGA BRANDS
Producing More than 100,000 Proof Gallons

20. CRAFT DISTILLERIES ARE COMMANDING SIGNIFICANT
ACQUISITION DOLLARS FROM MEGA BRANDS
Mega Brands Cannot by
Definition Be Craft Brands, but
they can BUY Craft Brands.

22. 2017 Craft Modernization and Tax Reform Act
• The 2017 Tax Act reduced the Federal Excise Tax (“FET”) from
$13.50 to $2.70 per gallon for the first 100,000 proof gallons
per year.
• The FET payable by Dented Brick Distillery in the event that
Dented Brick’s Production reaches 100,000 proof gallons per
annum needed to fully utilize the tax benefits of the Tax Act,
annual savings will exceed $1 million.
• Another enticement for Mega Brands to acquire Craft
ventures.

23. Craft Brand Competitors are NOT
• Building new facilities with new infrastructure to scale
• Building balanced portfolios including value brands
• Incentivizing distribution
• Incentivizing accounts with branded useful items
• Developing branded point of sale delivery systems for sales
personnel

24. $9.14 Billion in
Revenue for Value
$9.37 Billion in
Premium Revenue
$7.67 Billion in
Revenue for Super
Premium
34.9% Value
29.3%
Super
Premium
$26.2 Billion Market for
Distilled Spirits
35.8%
Premium
A RARE INVESTMENT OPPORTUNITY
THE MARKET OPPORTUNITY

25. The Distilled Spirits Council reported record spirits sales in
2017. Supplier sales were up 4 percent, rising $1 billion to
a total of $26.2 billion, while volumes rose 2.6 percent to
226 million cases, up 5.8 million cases from the prior year.
These results reflect adult consumers’ ongoing taste for
higher-end distilled spirits products across most
categories.
Eighth Consecutive Year of Market Share Gains

26. The Market Size for Craft
• The U.S. craft spirits market volume (cases) reached nearly 7.2m cases in retail
sales in 2017, growing at an annual growth rate of 23.7%. In value terms, the
market reached $3.7 billion in sales, growing at an annual growth rate of 30.1%.
• The market share of U.S. craft spirits reached 3.2% in volume and 4.6% in value
in 2017, up from 1.2% (volume)/1.4% (value) in 2012 and 2.6% (volume)/3.8%
(value) in 2017.
• The U.S. craft distilling market is fairly concentrated with nearly 2% of the larger
producers (between 100,000 and 750,000 proof gallons removed from bond)
being responsible for 57.2% of the cases sold. 92.3% of U.S. craft producers are
classified as small producers (between 0 and 10,000 proof gallons removed from
bond). They are responsible for just 13.1% of the cases sold annually.
• The number of cases of Medium Craft Distillers has grown from 607k 9L
cases in 2012 to over 2.1 million 9L cases in 2017.
• The average number of cases of Medium Craft Distillers in 2017 was
20k .

28. Karina Ixel Soriano
Outreach and Engagement
Steve Stanko
COO
Marc Christensen
CEO
https://www.linkedin.com/in/marcechristensenentrepreneur
TEAM DBD:
Jan Stephenson
Owner
https://en.wikipedia.org/wiki/Jan_Stephenson
https://www.linkedin.com/in/steve-stanko-61bb48b6 https://www.linkedin.com/in/karina-ixel-soriano-1b6b59103

29. Channalyn Tek
VP Business Development/Investor
Relations
Steve Stanko
COO
Bruce Bicknell
Graphic Design
https://www.linkedin.com/in/bruce-bicknell-9a66173/
TEAM DBD:
Michael Patrick McSorley
Head Distiller
https://www.linkedin.com/in/mikemcsorleydistiller
https://www.linkedin.com/in/steve-stanko-61bb48b6 https://www.linkedin.com/in/channalyn-tek-5894135b/

30. Auditor and Independent Accounting
Services
https://tannerco.com/
Kyle Hill
Contract CFO services
https://www.preferredcfo.com/
Outside Advisors

31. ($1,000,000)
$11,000,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Financial forecast
Revenue Liquor EBITDA Net Cash Flow

32. -10,000
60,000
50,000
40,000
30,000
20,000
10,000
0
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Total # of 9L Cases Sold

33. Examples of Recent Acquisition
THE TIMING IS PERFECT FOR DENTED BRICK TO WIN BIG IN TODAY’S
CRAFT SPIRITS MARKET
Company Acquired by Date $Value
High West Constellation 10/5/2016 $166M
Pendleton Proximo 12/17/2017 $205M
Bulldog Gin Groupo Campari 2/2/2017 $58M

34. Dented Brick Acquisition Valuation

35. THE ASK
$1.5 Million
Convertible Debt or
3 -5 Tranches Equity
$50,000 Buys 1%

36. Use of Funds
MARKETING
National Programming
Branded PoS Merchandise
Incentive Programs
Advertising

37. Marc Christensen
Managing Member
801-918-0100
multib1
marc@dentedbrick.com
twitter.com/MashingMarc
https://www.facebook.com/dentedbrick/
https://www.pinterest.com/christensen7259/
https://www.dentedbrick.com
A RARE INVESTMENT OPPORTUNITY