COMPANYOVERVIEW

2013

“THE MILLENNIAL GENERATION offers the wine industry the kind of growth potential not seen in more than 30 years.”

- The Wine Market Council

But their habits are so unique that very few wine brands have managed to earn their loyalty.

PUBLIC HOUSE is changing the Millennial wine game one box at a time.

INNOVATIVE PACKAGING that’s cheaper to ship, eco-friendly and keeps the wine fresh for longer. Ten cups packed into every box make it easy to share anytime, anywhere, with anyone.

MULTI-CHANNEL DISTRIBUTION that ensures a wide breadth of availability for consumers, and varied revenue streams.

QUALITY WINE crafted with the millennial palette in mind: sophisticated but affordable, just as delicious with fine French cuisine as it is with take-out Chinese.

RELEVANT CONTENT that draws consumers to our online platform and keeps them coming back.

*Prototype Packaging/Design. Subject to change as Product evolves.

Currently at only 3% of the $34B 2011 US market10, there is massive growth potential for boxed wine, as demonstrated by the market penetration in Europe and Australia.

Over the next 5 years, premium boxed wine will continue to grow at 27% year over year11, resulting in a $5B market.

SHOCKINGLY, 3L boxed wine is the fastest growing segment of the US wine industry.

$ B

$ B

$ B

$ B

$ B

3%

18%

50%

50%

Premium 3L Bag in Box as Percent of 2011 Wine Sales

15141312

BUT FIRST, what is a Millennial?Millennials are the 70 million consumers1 who are drinking wine earlier and at higher volumes than any other generation. Their drinking habits are distinct and unique:

FOR BRANDS

THEY LOVE

TRADING UP

IN SHORT, THEY’RE THE ULTIMATE SOCIAL DRINKERS

ECO-CONCIOUS

& ON-THE-MOVE50% 18%

DRINK WINE EVERY WEEK 2

DRINK WINE DAILY 3

TYPICALLY WITH GROUPSOF FRIENDS

SPEND MORE THAN 10% OF THEIR INCOME ON EATING OUT, ALCOHOL, AND ENTERTAINMENT 4

ALWAYS ENOUGH TO GO AROUND:

A standard 3L bag holds the same capacity as four traditional 750ml bottles.

*Prototype Packaging/Design. Subject to change as Product evolves.

SHARE WITH CLASS:

A sleeve of 10 reusable, dishwasher safe stemless wine glasses makes sharing easier and classier than ever.

LASTING FRESHNESS:

Wine stays fresh for up to six weeks - almost fifteen times longer than bottled wine.

A FRIEND TO THE PLANET:

The Public House box has a reduced carbon footprint, and is entirely recyclable. Bladders are made of non-BPA plastic.

OUR BOX is built for Millennials, by Millennials.While bottles are great for intimate dinners, they’re ecologically wasteful, expensive to ship, and only last a few days after opening. They’re too old school for these new drinkers. Here’s our solution:

AND WHERE do Millennials drink?Millennials are inherently social and on the move. Through carefully selected distribution and retail partners, we’ll strive to make our product available in places that their buying habits are otherwise unserved.

TRADITIONAL RETAIL ENVIRONMENTS including wine and liquor stores will be a primary location for consumers to find Public House products.

SPORTING EVENTS are an excellent application of our product, which contains no glass, is packaged with cups enough for a group, and is recyclable.

MUSIC FESTIVALS are often attended by Millennials in groups, and buying drinks one at a time potentially means hours waiting on line.

RESTAURANTS that align with our brand messaging are a perfect partner for Millennial consumers drinking more wine with meals than ever.

With two flagship varietals and a rotating seasonal option, we’ve got something for everyone - and choosing the right wine is never a confusing process.WHAT’S

BOXINSIDE OUR

IS JUST AS EXCITING

DELICIOUS WINES from the Chilean region of San Clemente.

VERSATILE AND CONSISTENTLY COMPATIBLE, this is the wine we turn to no matter the reason or season. Hand picked from the Andes Mountains in Chile, our zesty Sauvignon Blanc is guaranteed to liven up any rooftop or dinner party. Vibrant citrus and green apple may give you an insatiable craving for fresh fish tacos or an afternoon cheese plate on the patio. Best served chilled, with light fare and great company.

THIS IS RED WINE to help you unwind. With rich plums and intense blackberries, our Cabernet will warm you up by the fireplace or chill you out dockside. The foolproof pick for a house party or dinner with friends, our red can hang with a hamburger or sophisticate any steak. With a wine this smooth, you may be tempted to keep it all for yourself, so let us remind you: our wine is for sharing.

SAUVIGNON BLANC CABERNET SAUVIGNONBOLD FRUITY SPICYCRISP ZESTY BRIGHT

In the typical wine market, Q4 is the largest sales period. However, our boxed wine is a product guaranteed to sell from season to season. Whenever there is social drinking, there is Public House:

Q1: Whether at home or in the office, no New Years party is complete without a crisp box of Sauvignon Blanc. Valentines Day offers opportunities for singles to commiserate with boxes of wine, while couples can enjoy a romantic evening at home without breaking the bank.

Q2: With spring begins the months of picnics and outdoor cookouts, social occasions primed for our boxes.

Q3: It’s as if the summer season was designed for Public House. Between beaches, barbecues and boating, our rosé will be a best seller through Labor Day.

Q4: Fall festivities are ideal for our boxed wine. Halloween parties, Thanksgiving dinners and Christmas gifts are the perfect opportunity for gathering, celebrating, and drinking.

WITH

PUBLIC HOUSEIT’S ALWAYS

BOXEDWINE

SEASON

MILLENNIALS have several problems, but

nobody is solving them all...

WHEN

WINEIT COMES TO

...UNTIL NOW

“BOTTLES AREN’T ALWAYS THE MOST

PRACTICAL.”

Our box is built for the way you and your friends drink.

“BUYING WINE IS COMPLICATED.”

Browse our wines online or check us out in your

favorite store.

“LEARNING ABOUT WINE IS INTIMIDATING.”

Daily content and events that teach you about wine in a way that is relevant to your lifestyle.

WE’RE NOT JUST selling a product, we’re building a platform. Editorial and video content hosted at publichousewine.com and around the web will keep visitors engaged and ultimately drive to sales, both online and in-store.

The US wine industry is choked by a series of prohibition era laws, collectively known as the three tier model, forcing product from winery to distributor to retailer to consumer, with all parties taking margins along the way. Public House has worked tirelessly to find work-arounds to bring down costs for the end buyer, and will continue to do so as our model evolves.

One of the loopholes in the three tier system is recently enacted legislation that allows wineries to sell product directly to consumers. With our current model, we’ve struck a partnership with Brotherhood Winery to do just that.

By utilizing their licenses, we are able to sell product direct to consumer via our online portal at publichousewine.com, direct to retailers, or to distributors. The use of another facility’s licenses however comes at a cost.

CU

RR

EN

T M

OD

EL

FU

TU

RE

MO

DE

L

Moving forward, as a means to reduce product costs as we scale, we will acquire our own wholesale license in order to sell to distributors and retailers.

The online model will evolve by finding trusted online retail partners who will be able to fulfill the direct to consumer aspect of our business.

ONLINE RETAIL DISTRIBUTOR

MULTI-CHANNEL DISTRIBUTION allows for swift and comprehensive market penetration.

WHOLESALE LICENSE

CONTENT Video and editorial content, focused on food, wine, dating, nightlife. Deployed across Public House blog and social media channels

STRATEGIC SAMPLING Social media influencers, industry celebrities. Grass-roots PR outreach based on brand tenets and the merit of the product.

CORPORATE SPONSORSHIPS Happy Hours at General Assembly, Start-Up Incubators, Gawker, Stylecaster, and other strategic partners will provide excellent exposure to hip, affluent early adopters and influencers.

TASTING EVENTS Drive brand awareness, provide tangible value to attendees, unpretentious, fun, easy. Also potential to generate on-site sales.

WE’RE LAUNCHING IN NYC,

MILLENNIALCAPITAL

THE

OF THE

USA

BY FOCUSING OUR MARKETING

KEY AREAS

ON

WE’LL REACH

38%OF MILLENNIALS IN 5 YEARS5

YEAR 1: Establish our brand among NYC influencers, capture 180 retail locations at 8 boxes/month/location.

YEAR 2: Expand to high millennial population cities in Texas (Austin and Dallas), 743 retail locations in TX; 1000 in NYC.

YEAR 3: Expand to North and South California, Florida and Chicago.

YEAR 4:Expand to Philidelphia, Atlanta, Denver. Prior expansions have reached sustained growth levels.

A LOTAND THERE’S

OF ROOM

TO GROW Expand varietals (Rioja, Riesling, Barbera etc.), Launch PH Sangria, Add 250 mL Tetrapak and 1.5 liter boxes

Launch Organic line, PH Champagne, PH Cider, and Fruit Wines

Launch PH Craft Brew, Kegs and higher alcohol beers

Launch PH Spirits (single serve artisinal cocktails), PH Bitters

The opportunity is much larger than boxed wine. As we establish ourselves as a trusted expert on Millennial drinking habits, we will grow our wine portfolio and expand beyond our flagship product.

*Note: Packaging featured above are prospective mockups, and are subject to change.

PUBLIC HOUSE thus far.

Established partnership

Pre-Sold 182

BoxesESTABLISHED STRATEGIC SPONSORSHIPS WITH:

Buzz: Articles featured in &

Brotherhood Winery

WITHRAISED

$170,000

Millennial engagement is a top priority among large alcohol and wine companies who are having significant difficulty penetrating this finicky market. As a result, there are numerous potential exits for PUBLIC HOUSE.

Beverage Companies who are trying to reach Millennials:

- THE WINE GROUP bought Almaden for $134 M6 - CONSTELLATION acquired Mark West for $160 M7 - BEAM GLOBAL acquired Pinnacle Vodka for $600 M8

- PERNOD RICARD reportedly looking for acquisitions in US markets9

POTENTIAL

EXITS

MEET

TEAMTHE

DAN BERK (CO-FOUNDER): CEO and Executive Producer at Last Pictures, a boutique production company based in New York City. BFA in Film Production with a concentration in Computer Applications from Tisch School of the Arts. Forbidden to obtain certifications in order to prevent the team from becoming wine snobs. A good Malbec is the way to his heart.

STEFFAN BANKIER (CO-FOUNDER & CEO): Strategic Planner on Johnnie Walker at Young & Rubicam and Miller Coors at Saatchi and Saatchi. B.A in Visual Studies and Consumer Psychology from the University of Pennsylvania. Spending his evenings earning his intermediate WSET Wine Certification, and maintains that there is no better pairing than Riesling and Korean street food.

LEORA KALIKOW (DIRECTOR OF COMMUNICATIONS): Director of Admissions for a private high school: managing communications, marketing, PR and event planning by day, courses at the American Sommerlier Association by night. BA in Journalism and Mass Communication from the George Washington University. She thinks nothing smacks of summer like a Pinot Noir Rose.

JORDAN GUTMAN (CO-FOUNDER & PRESIDENT): Before co-founding Public House, Jordan was helping to interconnect the private capital markets at AXIAL, a financial services startup where he was an early member of the team that drove the company through 5x growth. Prior to that he was a successful sales grunt at Yelp. Jordan graduated from the University of Colorado in Boulder with a degree in Economics. A Malbec with a steak is all he needs.

COMPANYOVERVIEW

2013

CONNECT

1 http://miami.cbslocal.com/2013/07/04/wine-makers-marketing-to-a-younger-generation/2 http://www.capitalgazette.com/lifestyle/columnists/wine_etc/wine-etc-are-millennials-open-to-

non-traditional-wine-containers/article_89f84952-f832-547e-b66c-4a687734f0ba.html3 http://www.capitalgazette.com/lifestyle/columnists/wine_etc/wine-etc-are-millennials-open-to-

non-traditional-wine-containers/article_89f84952-f832-547e-b66c-4a687734f0ba.html4 http://www.bls.gov/cex/2011/Standard/age.pdf5 2012 US Census6 http://www.bizjournals.com/sanfrancisco/stories/2008/02/25/daily50.html7 http://www.pressdemocrat.com/article/20120716/business/1207196808 http://online.wsj.com/article/SB10001424052702303459004577360621004036222.html9 http://online.wsj.com/article/BT-CO-20130903-707452.html10 http://www.winebusiness.com/wbm/?go=getArticle&dataId=7451611 http://www.shankennewsdaily.com/index.php/2012/05/15/3062/black-box-looks-to-maintain-double-digit-growth-while-bota-box-other-challengers-rise/12 http://www.winepreferences.com/resources/page58/files/page58_1.pdf13 http://www.winemag.com/November-2011/French-Revolution/ 14 http://www.winepreferences.com/resources/page58/files/page58_1.pdf15 http://books.google.com/books?id=tEqx2zwuq-gC&pg=PA216&dq=percent+boxed+wine+sweden&hl=en&sa=X&ei=xe4wUsnOE62y4AP364DgAw&ved=0CC8Q6AEwAA#v=onepage&q=percent%20boxed%20wine%20sweden&f=false

SOURCES