January 31, 2011Presented To: Mike Edison

Scott BuehlerAlexis Milam

Toby Ryan

Delaware’s Only Premium

Organic Winery!

WineryKennett Pike

Greenville, DE

The Problem

Northern Delaware lacks a premium winery and wine enthusiasts have had to settle for second best! No other nearby winery produces organic wine.

• 2 wineries in Southern Delaware

• Nearby Brandywine Valley Wine Trail featuring 8 wineries

• Southern NJ wine trails

Nassau Valley Vineyards

Brandywine Valley Wine Trail

Cumberland County Wine

Trail

Cape May Wine Trail

Blue Hen Winery

Chesapeake Wine Trail

The Solution

• BHW will be the only local producer of organic wine with a focus on sustainable packaging

• The opening of BHW will also enhance Delaware’s tourism in New Castle County.

The TechnologyOrganic and Sustainable

• All organically grown grapes – no pesticides/toxins Message to consumers that we support agricultural

communities that refuse to pollute soil and water supplies.

Wine enthusiasts believe organic wine varieties are more flavorful because they're made from grapes raised on healthier soil.

 • ECO Series™ bottles used for all of our wines.  

Made with greater than 50% recycled material, which reduces consumption of energy for manufacturing and CO2 emissions by 21% when compared to a “classic” wine bottle.

Progress to date

• Recipes vetted• Initial investment commitment• Brand trademark, website• Management team in place• Supply chain established• Proposed location identified• Building requirements and equipment

identified

Market Growth

Chester (PA); 29.20%

Delaware (PA); 21.62%Salem (NJ); 1.32%Gloucester (NJ);

9.40%

Cumberland (NJ); 2.25%

Cecil (MD); 2.26%

Kent (MD); 0.55%

Harford (MD); 9.37%

New Castle (DE); 20.40%

Kent (DE); 3.62%

Based on education, home ownership, age, and median household incomeSource: US Census

Target Regional Market

CustomersTarget Wine Consumers

Greenville area: educated, married, and established in their career

87% are homeowners Adults aged 35 – 65 (account for 74% of wine

consumers) Women

Local Retailers and Restaurants Promote to “farm to table” restaurants

Sales & Marketing StrategyDirect Sales • Extensive tasting room

Consumers sample wines Sales• No middleman – Charge retail prices for wine

Additional Sales Channels• Distributors: Estimated @ 10% Sales

NKS Distributors, Inc - retail and wine outlets Vintage Imports, Inc - restaurants

Sales & Marketing StrategySales Promotions• On-site events

Consumers sample wines Sales• Local food and wine festivals = PR• Local memberships

Advertising• Limited Print – locally focused

DE Today• Online Ads

DE Today (restaurant issue), Delaware News Journal

Partners

Delaware Tourism Office

CompetitionIndirect Competition• Substitute beverages: beer, spirits, & non-alcoholic beverages• Renowned wines of Sonoma Valley, France, Italy, etc• Small wineries outside local radius

Direct Local Competitors • Chaddsford Winery• Paradox Winery• Kreutz Creek• Penns Woods• Patone

Competition MatrixParadocx Penns

WoodsChadds

FordKreutz Creek Patone Blue

Hen

Price HIGH HIGH MID MID LOW MID

Selection 24 17 15 12 10 9

Quality of Wine 6 7 8 5 5 6

Events 6 4 8 4 2 7

Tasting Room Experience 5 6 8 7 5 7

Organic/Sustainable

●●● ● ●●●● ● ●●●● ● ●

●●●

●●● ● ● ●

Management Team Toby Ryan – Wine Maker Extraordinaire

BE in Agricultural Engineering from UD (1996) , MBA from UD (2011) 12 years experience as Engineer with DuPont 5 years experience with wine making from home Entrepreneurial experience: manages family wine-making business.

Scott Buehler– Business Manager (GM/Cellar Manager) BE in Chemical Engineering UD(1992), MBA from UD (2011) 10 years experience in manufacturing as Chemical Engineer with DuPont 8 years small business management experience Amateur winemaker and regular volunteer at local wineries

Alexis Milam – Sales Marketing & Tasting Room/Special Events Manager Certified Sommelier: Advanced Sommelier Certificate from The Court of

Master Sommeliers (2002) Hospitality Management Degree from UD (2000) & MBA (2011) 5 years as Sales/Special Event Manager at Renault Winery

Revenue Model

Financial Projections Year 0 1 2 3 4 5 6

Initial Investment $586,000

Sales $0.00 $312,169.33 $438,947.09 $670,054.68 $813,887.71 $993,594.70 $1,236,739.94

COGS $146,820.00 $184,060.00 $307,285.30 $345,633.60 $428,964.95 $493,340.06 $539,054.32

Net Income ($186,820.00) $42,528.30 $23,124.37 $119,582.49 $145,735.83 $207,040.21 $319,375.75

ROA 0% 7.90% 3.73% 16.21% 17.21% 22.28% 32.38%

ROCE 0% 7.23% 3.92% 20.09% 23.94% 31.63% 43.02%

ROI 0% 0.51% 1.10% 2.85% 6.94% 24.65% 49.43%

Financial Projections

0 1 2 3 4 5 60.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

55.00%

Return on Investment

0 1 2 3 4 5 6

($600,000)

($500,000)

($400,000)

($300,000)

($200,000)

($100,000)

$0

$100,000

$200,000

$300,000

Break Even Point

MilestonesWhat’s Important Next?

Renovate winery

building

Bring onMike Edison

as partnerBuy

equipment & product inputs

Secure licenses &

permits

Begin wine production

Funding RequirementsCommitted Funding: $150K

• $50k agreed buy in from 3 partners

Requested Funding: $436K• Seeking Mike Edison’s

partnership • 5 acres of land and existing

building

Use of Funds: $586 K Total• Capital Investments: Barn Restoration & Equipment: $400K• COGS (Year 0): $96K

• Including permits and insurance• Salaries (Year 0): $75K• Marketing: $15K

Summary• Management team experienced in wine making, bottling,

and with extensive operations and marketing backgrounds

• Blue Hen Winery will generate profits by year 1

• Strong growing trends towards local and organic products

• Large and growing market – healthy market share predictions

Kennett PikeGreenville, DE

Blue HenWinery

Winery

For more information please contact:info@Bluehenwinery.com