Portfolio Manager Conference Call January 2014 Bonne Anne

Portfolio Manager Conference Call January 2014

Bonne Année from Christophe Navarre, CEO 2013 was a Successful Year! Growth over 2012 in all categories On budget!

MH has out performed the competition Diversification in Market share

Key Factors to Success Never Settle Brands Prioritize Innovation and Creativty

YOU! Passion Determination Commitment

2014 Portfolio Manager Org Chart Update Congratulations Tina Chebret! Houston PM promoted to Regional Sales Director, Glazers, TX. Congratulations Ginger Ryals! Tampa PM promoted to Area Manager Coastal W&S – Tampa OPEN POSITIONS: Houston, Florida (exact area TBD), Beverly Hills, New York City, Boston, New Orleans, Baltimore

MHMC Update We will do it again in 2015

Brand Updates Selling Stories

Champagne Wins December 28 th: Sam Barnes hits a home run on Fox & Friends!

Champagne Wins Seth explains it all in the WSJ and on Live TV!

Champagne Wins January 2014: Dom Perignon Wine Maker awarded “ARTIST OF THE YEAR” IN THE HUFFINGTON POST! I know you are all asking yourselves, "Who the hell is artist Richard Geoffroy? " Please, allow me to explain. . . As a person that spends perhaps 250 days of the year visiting artist studios, galleries and openings, it would suffice to say, I've met a hell of a lot of artists this year. I've interviewed uber famous artists, as well as visited young creators making art in communal spaces or abandoned warehouses. But over the past 365 days, I've met only one person that has truly changed the way I appreciate art as well as an artist's process. And more importantly, Mr. Richard Geoffroy, the Chef-de-Cave of the venerable Dom Perignon, has single handedly changed the way I now define the word artist. A few months ago, I went to visit Mr. Geoffroy's artist studio, posing as a monastery and vineyard, in Champagne, France. Initially, I made the trip to learn more about his recent super cool collaboration with the popular artist Jeff Koons, and what on earth could be inside of a glorified and rarified $20, 000 wine holder. Much to my surprise, what I discovered was no simple wine maker or mere mortal. Instead, I discovered a maestro, a philosopher, a spiritual guru, and yes -- a true artist. Richard Geoffroy,

Champagne Wins VEUVE CLICQUOT While Veuve Clicquot will not be declaring a vintage in 2011, they very easily could have. Dominique Demarville spent many hours contemplating what to do with the 2011 s, and he eventually chose to put all of the wines into the NV blends. His desire to contribute to high quality stock for the NV Yellow Label (Rose and blanc) and the outstanding nature of 2012’s harvest were ultimately the deciding factors. This is still a bold decision, as the house could have easily made large amounts of vintage wine and sold it at a higher price per bottle, but the team remains dedicated to continuous improvement of the NV range and believes that the decision is the best one for long term success. DOM PERIGNON So what is in the bottle? Grapes from some of the best land in Champagne turned into wine by some of the most talented and dedicated folks in the industry. It really is that simple. No gimmicks, no magic, and no drama. Richard Geoffroy will be the first to tell you that he is very fortunate to have these raw materials to work with. I’m sorry to disappoint anyone, but there really isn’t anything else to see here – just great vineyards, passion, and a lot of fat, juicy, tart grapes. In fact, I can’t wait to start having a new Jeopardy dream where the answer is, “The legendary, landmark Champagne that manages to match high quality and high volume”. The question, of course, is “What is Dom Pérignon? ”

WINE SEARCHER: Tom Stevenson Veuve Clicquot Under the new chef de cave, Dominique Demarville, the Yellow Label, which is actually orange, has become the fastest improving non-vintage Champagne of all the major houses. When you consider that Veuve Clicquot is the second-largest house with a production of up to 18 million bottles, most of which is non-vintage, this is some achievement. The secret is four-fold. Firstly: a reduction in the number of vintages declared to a maximum of three every 10 years, diverting the cream of more crops to the non-vintage. Secondly, the purchase of 30 oak foudres, which act like condiments and their careful application can make all the difference to a blend. Thirdly, an increase in the amount of reserve wines: from 25 percent five years ago to the current 35– 55 percent. And fourthly, a full 12 months post-disgorgement aging before release. which softens the mousse and reveals finesse. The first really big jump in quality came with the current Yellow Label (which is 2009 -based); the next cuvée will be the 2010 -based and is due to be released in December 2014. Moët & Chandon This single cuvée represents more than seven per cent of the total production of the Champagne region and yet, contrary to popular opinion, it has always been one of the most consistent non-vintage Champagnes on the market. Now it is beginning to get exciting, as Gouez pushes the boundaries in terms of both production and blend. But don’t let the label dictate your view: you have to taste it blind to believe just how good it is.

National Account Wins New NACs

National Account Wins Starwood program W: Veuve Clicquot and Dom Perignon NEW (only Champagnes) St. Regis: Veuve, Dom and Moet NEW (only Champagnes) NEW Highly Recommended Wine Program includes Krug, Ruinart Bd. B and Rose, Newton UF Cab, Terrazas Torrentes Reserve and Alto Malbec. Chandon BTG in Westin and Sheraton but no longer in St. Regis or W Contact Meigan Kelly directly for Chandon activation ideas in top St. Regis and W Hotels Include Starwood wins in Commercial Succeess Submissions.

National Account Wins Kimpton Hotels Hennessy VS placement 10 Cane Cocktail Feature MH has 10 of 100 Wines on the CORE list. 25% of a wine list must come from CORE In Room half bottle list of 20 items must come from CORE Include Kimpton wins in Commercial Succeess Submissions.

National Account Wins Ruth’s Chris includes Belvedere Mandate and Ruby Red cocktail with Belvedere Pink Grapefruit!

National Account Wins OMNI HOTELS ALL NEW on Omni Menus, Belvedere is featured in the "Ultimate Martini", Chandon Rose is in the "Champagne Cobbler", Hennessy VS is in the "Strawberry Basil Smash" and Grand Marnier Raspberry Peach is featured in the "Knickerbocker". Grand Marnier will also be featured in the "Anejo on the Rocks" as well as the "Smokey Margarita". Chandon Brut and Rose 187 mls continue to be listed BTG, Chandon Brut 750 ml BTB, Terrazas Malbec will now be BTB along with Moet Imperial and NEW to the BTB, Veuve YL!

National Account Wins Capital Grille Wine Locker Event with Icon Wines!

The Portfolio Manager Partner Account (PMPA) New Program

MH-PM-PA John Howie: Seattle. In addition to Wine Distributions Cloudy Bay Late Harvest Riesling BTG, Krug BTG, Dom Perignon BTG, Dom Ruinart 98 Dom Ruinart 2002, Newton Unfiltered Cabernet, Terrazas Las Compuertas Malbec, Krug Rose Every ambassador or high profile MHUSA visitor to the Seattle market conducted a training for the staff or visited the account Trainings include: Christine England Belvedere, Wayne Chang Hennessy, Megan Gordon Ruinart Private High Marque wine tasting for clients Access to Limited POS NOTIFICATION IN CONCUR to insure ILVMH ndustry Spend? Recognition when visiting Maisons MH PM PA Newsletter for all LVMH? QUALIFIERS OTHER? More than 30 Marques Champagne Icons Wine Icons Spirit Icons Champagne BTG More than X cases annually

Coravin: THE NEW ½ BOTTLE RECAP OF IDEAS FROM CONF CALL Flights of Your Life Sell by Date : July 2013: put a level 30 -40 Magnums BTG Separate section for Coravin lists Customers actually use the Coravin / interactive Take home ½ Table side carafe’s Sweet spot BTG price has tripled From $60 to $180 Highest price = $475 Ornelia at del Posto

January PM Focus Program “triple the tipple” Jan-Feb. The Perfect Scotch and Water. Velocity Program in 100 accounts. Triple the On Premise sales in 2014

Program Elements Elegant water decanters (2 per PM) Each PM will code 1 bottle of Uigeadail at approximately $50 from distributor inventory and $200 to activate in 2 accounts (crack the cap). The RMMs will have incremental $ budget for the program as follows: Central: 16 PMs = $4, 000 Control 1 PM = $250 West: 13 PMs = $3, 250 Northeast: 9 PMs = $2, 250 Southeast: 11 PMs = $2, 750 (not including 1 DC night PM) TARGET ACCOUNTS?

ICON WINE VELOCITY PROGRAM Focus Program Feb – March….

E&W ICON WINES DECANTER & CORAVIN PROGRAM: • OBJECTIVE: – Drive Icon Wines velocity within PM accounts by executing by the glass programs on the most iconic wines of our portfolio. – Introduce an impactful and premium service ritual with spectacular decanters • PROGRAM ELEMENTS: – High impact Riedel Decanters available at Champion to create service theater and by the glass opportunities on Icons • Dragon Decanter (24 available) recommended with Termanthia Dragon Decanter / Termanthia • Amadeo Decanter (16 available) recommended with Cheval des Andes • Boa Decanter (16 available) Recommended with Numanthia – Wines to be executed with: • # 1 Priority: Termanthia ‘ 10, #2 Priority Cheval des Andes ’ 09, #3 Priority Numanathia • PROGRAM GOALS and MEASUREMENT: – Each PM responsible to have at one account activated with Icon Wine by the glass with high impact decanter to deliver 2 cases of incremental Icon Wine – PM to select decanter and request with PM shipping address to Pascal Eyssette. – RMM to approve samples as needed for sell in and training from Region budget. • TIMING – February/ March Sell in Amadeo Decanter / Cheval des Andes Boa Decanter / Numanthia

ACTIVATION PRICE RECOMMENDATION – – Termanthia » Full Glass : $70 » Half Glass: $35 Cheval des Andes » Full Glass: $35 » Half Glass: $20 Numanthia » Full Glass: $30 » Half Glass: $18 PRE-DECANTING – Wines need to be pre-decanted before service. – The appeal and key selling point is that we have pre-decanted an amazing wine that really benefits from aeration and is now perfect. – Termanthia and Cheval gain complexity and suppleness by being decanted. No special price need to be extended to the account STAFF TRAINING – Very important to train staff. Best practice from Chicago include: v v Demonstrating vine stress - we took 10 foot tubing and had staff drink a glass a water through the tube to demonstrate how hard the vines have to work to get water within the Toro region Separation of M&M's - we had the staff separate the Numanthia branded M&M's from a glass of multicolored M&M's to demonstrate hand berry sorting Bought the staff rib eyes so they could see why this wine works so well with food Tasted blind against Silver Oak and Opus One in order to demonstrate that this New World styled Spanish wine can hold its own and out perform big name Napa Cabs Keys to Success – Recommended to have special menu feature – Staff MOTIVATION is critical. Make sure they realize profit potential for the restaurant and themselves. – Suggest the account to incentivize the staff on the program – – **Each PM has been distributed a Coravin system with Argon gas to extend the life on Icon Wine Samples To get more additional gas, you must go to coravin. com. Contact pascal. eyssette@mhusa. com for large orders.

CS Magazine Food & Drink, The Guide Numanthia September 2013 Reach: 79, 860

Termanthia BTG feature at the Iconic Boston Harbor Hotel • Termanthia offered BTG, served from the Riedel DRAGON decanter, table side • Display of the decanter with Termanthia bottles and wood case in prime location upon entry to MERITAGE restaurant • Two pours offered • • ½ glass at $45 Full glass at $75 • Program executed 2 weeks around Christmas & NYE • Account purchased 18 bottles and sold 15 in the BTG program • Termanthia BTB placement for the remaining 3 bottles on hand

New Vintages: New Sell Sheets

Order form for Decanter • Email to pascal. eyssette@musa, com, michael. traynor@mhusa. com; deborah. hutton#mhusa. com; yourmanager@yourcompany. com; MHUSAmanager@mhusa. com

etoile BTG Focus Program Feb – March …

étoile by the glass focus program 2013 we grew +30. 5% in the PM Universe = 1. 931 cases! Objective Goal is to drive BTG and distribution in high image account universe (on & off premise). Last years program drove +93% AS growth during the focus months and 46 new BTG placements. This years goal is to double our BTG placements in Q 1 and grow another 35% by year end. Tools étoile is off allocation in 2014 so please make sure your markets have ample inventory by end of January to support a fast start. Brand team is providing sample code to PMs to support account placements. New sell sheets for PMs Brand team and our Ambassadors will be in market to support sell in and staff training Investment for samples and activation = $15, 900 Central: 16 PMs = $4, 800 +$300 = $5, 100 Control 1 PM = $300 West: 13 PMs = $3, 900 + $600 for CA = $4, 500 Northeast: 9 PMs = $2, 700 Southeast: 11 PMs = $3, 300 KPIs 175 By the Glass accounts (3. 5 per PM) (make sure discontinued programs are captured as discontinued in the Portal!).