MHBC Crowdcasting

AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU QDL QZT RGA RIO SGD SOY SUX TAB TIP UVL VAN VIJ WRU WGA XSC YNY ZOS AIL ATZ BAL BER BKK CCJ CIW DME DUB DXB EMD EZE FKS FUK GCM GDJ HAN HKN IST IXQ JKG JNS KAT KLO LAZ LBG LHR MAK MGQ NIM NTY ORK OTP PCL PKU

The Mile High Beverage Company

new heights in the global partying experience

AIL ATZ BAL BER BKK CCJ CIW DUB DXB EMD EZE FKS FUKGCMHKN JKG KATLAZ MAK NIMPKURIOSUXTIP WRU ZOS


The Present

Product development process in the alcohol industry is staid and slow

Large incumbents cannot exploit emergent trends at the ground level

Top-down product development (push strategy) Players lack the web architecture to truly exploit

online platforms beyond basic advertising


The Future: Industries are Consumer Driven

Companies across many industries use active two-way dialogue with customers to drive product and service innovation



Our Vision: We’re Crashing the Party!

To be the number one user-driven alcohol company in the world through a relentless

focus on user-driven innovation!


Dm1

Limited Retail

TargetLicensed

Est.

Test MarketingIdeation


Dem

and

Distribution Volume

High

Low High

Identify TrendsCreate Concepts

Test ProductBuild Buzz

Events

Dm2

Apply to LCBO

MHBC Identifies Trends Online, Establishes Demand and Sales Offline, then Sells at Mass Retail

Mass Retail

LCBO



We Prove Demand Through a Consumer Engagement Platform Prior to Mass Retail

New Product Development and Marketing

Data Mining Tools

Product Microsites

Offline Events & Promotions

MHBC Corporate Website

Social Networking

Communities

Consumer



Our Process will Lead to Quick Product Innovations

MHBC Product Development

12 Months

BKK Bucket

LAX Electrolytes

HKG Tea

TBD

SMM supports BKK Bucket Launch

SMM supports HKG Tea Launch

SMM supports LAX Electrolytes Launch

SMM supports TBD

SMM supports brand revitalization process



Our Competition Cannot Do This

Incumbents are traditionally reluctant to exploit new categories Competition does not embrace the user-generated model Locking in our community


The Ready to Drink Market


AIL BKK CCJ DUB EMD EZE FKS FUK GCM HKN JKG KAT LAZ MAK NIM PKU RIO SUX TIP WRU ZOS


2008 2009 2010 2011 2012 2013$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Source: Euromonitor International

Canadian RTD Market

2008 2009 2010 2011 2012 2013

RTD $MM

1,195 1,284

1,348

1,401

1,458

1,512 % Change 7.0% 4.7% 3.8% 3.9% 3.5%

We See a Major Opportunity in a $1.2B Ready-to-Drink Market



Small Nimble Competitors Are Gaining Market Share

Source: Euromonitor InternationalSource: Euromonitor International

Smirnoff Ice

22%

Bacardi Breezer

5%

Vex5%

Mike's Hard5%Rev

4%

Other60%

2007 Market Share

Smirnoff Ice

Bacardi Breezer

Vex

Mike`s Hard

Rev

2007 Sales Growth/Shrink


Target Customer



Our Target Customer Personas


Name: JennyAge: 28Marital Status:Single

Occupation: Graphic DesignSalary: $70K

Hangouts:Social, Drake

Travel:India, Thailand,Eastern Europe

Trendsetter

Name: MylesAge: 26Marital Status:Girlfriend

Occupation: I-BankerSalary: $125K

Hangouts:Amber, Brant

Travel:Ibiza, Greece Southern France

Perception

Name: TonyAge: 23Marital Status:Single

Occupation: TELUS Sales Salary: $45K

Hangouts:Cheval, Tryst

Travel:Cancun

Low Cost Copier

IMAGE-SEEKER WANNABEACTIVE URBANITE


Our Target Customer Personas


Image Seeker(Premium)

Urbanite(Value)

Partier(Budget)

Price

Brand Name

Packaging

Ingredient base (vodka,rum,malt)

Exciting Flavours

Importance

High Medium Low

Dec

isio

n Cr

iteria

Customer Segmentation

Source: The Spirits Business, May 2008, Issue 03


Customer Engagement




The Marketing Conundrum

21 3



The Solution: Consumer Engagement Platform

Green Arrows = MHBC Generated InformationPurple Arrow = User Generated Information


Data Mining Tools

Product Microsites



Social Networking

Communities

Consumer



Social Networking Component



MHBC Corporate Site and Microsites


Data Mining Tools


LAX Electrolytes Microsite

BKK Buckets Microsite

HKG Tea Microsite



Data Mining Tool


Video/Audio

Social Network

Online Marketing & Demographics


http://www.viraltracker.com/


Offline Events & Guerilla Marketing

IN-BAR PROMOTIONS

EXPERIENCE EVENTS

•Upscale bars•Airline Theme•Product testing & real-time feedback

•Art galleries and museums•Emphasis on international culture

•Unconventional marketing intended to get maximum results for minimal resources

GUERILLA MARKETING


Capabilities and Contingencies




We have a Low-Fixed Cost Production Model

OutsourcedMHBC

Marketing

Web Architecture

…

Manufacturing

Prototypes

Mass

Transportation

Product Development



Our Combined Skills Uniquely Position Us for Success

Samira Amini Anthony Duong Ben Gordon Allen Spektor Dan TolhurstPartner Partner Partner Partner Partner

I-Banking Interactive Marketing

Consulting

Interactive Marketing

Web Architecture

Public Relations

Operations Management

Sales & Trading

I-BankingLaw

Events & Promotions

BKK CCJ DUB EMD EZE FKS FUK GCM HKN JKG KAT LAZ MAK NIM PKU RIO SUX TIP WRU ZOS



Financial Projections


The Mile High Beverage CompanySource: http://www12.statcan.gc.ca/census-recensement/2006/as-sa/97-551/vignettes/cda06pymd.swf

1 2 3 4 5 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Addressable Population

MHBC’s Addressable Market Increases With Each Geographic Expansion

Years

Drin

king

Age

Pop

ulati

on

GTA

Ontario

Quebec

National



Annual Sales Projections Ranges from $9MM to $14MM by Year 5

1 2 3 4 5 $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Annual Sales

Total Sales LowTotal Sales MedTotal Sales High

Year

Sale

s



Annual Free Cash Flow Ranges from $700K to Approximately $3.5MM by Year 5

Sale

s

Year

1 2 3 4 5

-$1,000,000

-$500,000

$- $500,000

$1,000,000 $1,500,000

$2,000,000

$2,500,000 $3,000,000

$3,500,000 $4,000,000

Annual Free Cash Flow

Free Cash Flow Low



Strategy for Exit

Three potential exit avenues: Partial/complete acquisition by larger competitor or

financial sponsor Management buy-out Public offering


Capital Raising Schedule

Capital Raised

Ris

k

Seed Funding: $250K Valuation

Angel/Venture Funding: $2MM Valuation

Final Venture Funding: $10MM Valuation


PE/Strategic Partnership: $50MM Valuation



We Require an Additional $250K in Funding

Currently at the Seed Funding Stage Each Partner will contribute $10K for initial funding Contributions from other sources: $50K

Additional $250K will provide funding for: Extension of online tools Hire general manager and marketing coordinator Ramping up offline marketing and events Supplier/Manufacturer contracts



Perceived Risks

Primary RisksCompetitive Large competitors to emulate model through guerrilla teams

Execution Poor management of network and/or improper execution of interactive platform

Social Decrease in social acceptability of alcohol consumption High alcohol content and caffeine combination may make MHBC a target

Secondary RisksFinancialLegalMarket


The BKK Bucket




Product Launch No.1: BKK Bucket



Data Mining Tools

Product Microsites



Social Networking

Communities

Consumer









Data Mining Tools

Product Microsites



Social Networking

Communities

Consumer




Ingredients: vodka or rum, energy drink, cola High alcohol content (18%) Large volume format (750L)

Glass Bottle Metal screw cap Bundle of 4, large plastic straw

$24.95 wholesale per 750L




Functional Benefits Sugar ingredients speeds the rate of

intoxication The cola and energy drink provide an energy

jolt Group drink






Data Mining Tools

Product Microsites



Social Networking

Communities

Consumer




From the Mouths of Our Consumers

“I like drinking exotic, international drinks cause it makes me feel sophisticated. A Jetsetter” – Shannon, 20

“The bucket holder becomes the center of attention. It’s pretty sick.” – Dave, 28

“I really want to go to Thailand now” – Ivy, 23

“The bucket idea is awesome. I’d definitely have a party cause my friends would talk about it forever” – Ginger, 20



We’ve Talked to the Scene and the Scene Has Spoken: “We’re Interested!”

“I will give you guys a chance. I’m curious to see where this goes!”

- Lobby, Toronto

“If you can bring the crowds, then I don’t see why we can’t do this”

– Social, Toronto

“I’m interested to see if this would actually work. Lets give it a shot!”

–Gallery 9, Toronto



Secure additional funding Launch corporate site Launch first product micro-site Begin production for limited retail distribution Secure private label suppliers/manufacturers for

mass production Guerrilla Sand Castle Campaign, May 2009

Consumer Engagement Platform: Next Steps


Question & Answer




UGC: TurboTax YouTube Tax Rap


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MHBC Crowdcasting

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