UNDERGROUND Wine MarketingMarch 2008

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Wine Concierge services

1)Insider Access to

highly-sought-after

‘Big Name’ wines

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Wine Concierge services

2) Insider scoop on the finest undiscovered (a.k.a. Underground) wines before the critics and collectors drive prices up and allocations down!

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Wine Concierge services

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Featured Wines

Kistler$100

Textbook$50

Ladera$39

Colgin$429

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Thir$ty Collector Clients include…

• Personal finance manager of #1 richest man in world

• Co-founder of the #1 website

• Heir to the original car manufacturer

• Proprietor of #1 rated Napa ‘Cult’ Cabernet

• Editor of Wine Spectator magazine

• MANY renowned doctors and financial investors

• Plus a random list of personalities including Robert Redford, Peirce Brossnan, Ben Kingsley, Renee Russo, Danica Patrick, Sean Hannity, and Alice Waters

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Agenda

1. Porthos Story: ‘On a Mission’

2. Marketing Insights:

‘Reaching the Rich’

3. An ‘Underground’ Perspective:

• Secret marketing tips

• Personal favorite TOP 5 Wines

• TOP 5 Restaurant Wine Tips

+ Wine Trivia Contest. Prize = Tasting!

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TOPLINE – Success?

1. Our Mission: Personal Relationships!

2. Personalized to each client (vs. me pontificating!)

3. “Kevin Bacons” (Underground offline)

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Porthos Story

•Thinking in Flavors

•Noble roots!?!

•Y2K Goal: Drink the finest wine and make $$$!

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Porthos Story

WINE INSIDER Newsletters

‘Boot Strap’ Business Launch: Friends and Family (in Tx.) -----------------------------------------------------------------Dear Friend of Porthos,

Silver Oak will release the historical millennium vintage of their premier Napa Estate Cabernet on January 29. We have negotiated an exclusive opportunity for you to purchase up to one case of this highly sought after wine on a pre-release basis NOW! Order today and we will ship your wine next week BEFORE it is released at Silver Oak's Napa winery.

Silver Oak Napa is the #1 Collector wine in America and, the 2000 Napa Valley Cabernet Sauvignon is Silver Oak’s first “Bordeaux-style” blend of 79% Cabernet Sauvignon, 11% Merlot, 8% Cabernet Franc, and 2% Petit Verdot (Tasting Notes below). DON'T MISS this rare opportunity to add 12 bottles of this prized wine to your collection and take advantage of FREE SHIPPING on all full case orders of Silver Oak while our limited allocation lasts. We WILL sell out so please place your order immediately to guarantee availability.

• Silver Oak 2000 Cabernet Sauvignon, Napa Valley - ($99) • Winemaker Daniel Baron: “An exceptionally long growing season helped make our 2000

vintage one of the most complex and memorable wines we have produced. Extra time on the vine proved extremely beneficial for the wine, which was aged in 100% new American oak barrels for approximately 25 months. Classic Cabernet Sauvignon with a dark, ruby-red color and an exquisite nose of cassis, violets, roasting coffee, chocolate, vanilla and cloves. It has a rich, balanced mouth feel dripping with ripe berries and chocolate. Medium tannins are well integrated into the long finish. It will continue to improve to 2020 given proper cellaring.”

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Porthos History

MISSION: Long Term Relationships! “….Wine that gladdens the heart of Man.” - Psalm 104

• Team Philosophy / Culture

• Team hiring criteria – Napa Experts

• Client implication$ = “No Sour Grapes”

• Be Careful what you ‘promise’!

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Porthos History

Long Term Relationships vs. Short Term Profit$

BENEFITS:

• Team loyalty

• Client Friendships = letters, photos, villas, birthdays

• Word of Mouth

• ‘Secret Shopper’ = New Partnership$!

• Winery Partnerships = loyalty + allocations

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2. Marketing Insights

‘Reaching the Rich!’ – Niche Marketing

CLIENT ACQUISITION:

1) Word of Mouth + rewards & gifts

2) Partnerships

3) Keyword Advertising

4) Leveraging P.R.

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Marketing Insights – P.R.

An intoxicating investment By Sandra Block, USA TODAY July, 22, 2004

  ….”Not long ago, Hal Oates, co-founder of online wine retailer Porthos.com, recommended that some regular clients try Paloma Merlot, a little-known wine made by a husband-and-wife team in California's Napa Valley. It was selling for $45. Two months later, Wine Spectator gave the Merlot its "Wine of the Year" award. These days, the wine is selling for $145 and up, Oates says.”

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Marketing Insights

“Lifestyles of the

Rich & Famous”• Unfamiliar World =

intimidating (think ‘rich’!)

• Irrational $pending!

• ‘Hot Wheels’ for Adults!

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Marketing Insights

“KISSING FROGS”Wasting time but not too much $

$$

• “Really good exposure for you”….vs. actual SALES

• Busy vs. Profitable!?!

• Celebrity Wine Tasting scorecards = Fun but no Sales

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Marketing Insights

Celebrity Wine Tasting = Fun but no Sales

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Marketing Insights

“All Things to All People?”

…or brand ‘ubiquity’ vs. reality!

• International vs. Napa

• Under $30 bottles vs. Over $100

- All that to say…………………

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Marketing Insights

Must OWN One Area of Expertise!!! – what’s yours?

• Core Target group / niche

• Aspirational marketing – positioning: appeals to all!

• 21 year old Models…….

“Napa’s Best $39 Cabernet!”

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Marketing Insights

THE WINE INSIDERS

= a positioning that is…

1)Important to our target

2)We can deliver on this promise!

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Marketing Insights

“I’ve Got what YOU Want!”

• Leverage resources that

Target Values most!

• Our “resources:”

- Experienced/skilled team

- Taste 5,000 wines

- Honest Opinions

- Time and ‘Insider’ connections

- Hard work (10 a.m., 200 in 3 hours)

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Marketing Insights

PATIENCE PAYS OFF

“Rich” in experiences/ wine

THE WINE INSIDERS – Podcasting

• No You Tube miracle (yet!)

• Credibility

• Vendor relations – allocations & egos!

• $ales? …..’not so much’ (yet)!

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Marketing Insights

MY LESSONS LEARNED as an Entrepreneur

1) Do what you LOVE in case no $$$

2) BEWARE if changing industry!

- 2 x time & money investment needed

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Collector Wines : An ‘Underground’ Perspective

2. Insider scoop! Personal Top 5

Undiscovered Napa Wines

• Alban Viognier

• Palmaz Cabernet

• Ladera Cabernet

• The Prisoner Zinfandel

• Hestan Cabernet

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Collector Wines : An ‘Underground’ Perspective

2. My Wine Insider scoop!

TOP 5 Restaurant Wines (wine list)

* Rombauer Chardonnay

• Swanson Merlot

• Duckhorn Merlot

• Caymus Cabernet

• Far Niente Chardonnay or Cabernet

‘undervalued’ = Zinfandel, Syrah, Aussie Shiraz

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Collector Wines : An ‘Underground’ Perspective

2. My Wine Insider scoop!

TOP 5 Restaurant Wines to AVOID

[no names]

• 2000 Vintage Napa Cabernet

• 2005 Vintage Pinot Noir from California

• ‘overpriced’ = Chardonnay and Cabernet

• ‘Beware’ = cheap Pinot Noir (wimpy)