Business review 2013 final

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BUSINESS REVIEW 2013 JANUARY 9th 2014

EUROPEAN CELLARS

TOP LINE REVIEW

European Cellars

TOTAL REVENUE: 2013

2006 2007 2008 2009 2010 2011 2012 2013

3% over 2007

298,715

362,117

294,728

262,400

227,229

282,356

351,106 363,421

2006 2007 2008 2009 2010 2011 2012 2013

European Cellars

TOTAL CASES Jan-Dec 2013

298,715

362,117

294,728

262,400

227,229

282,356

351,106 363,421

2006 2007 2008 2009 2010 2011 2012 2013

European Cellars

TOTAL CASES Jan-Dec 2013

3% growth in revenue versus 2007

.03% growth in cases

DI Shipments 2013 Cases % Change

Robbie 2013 41,131 20.09% Cases

2012 34,251 32.12% Revenue

Lambertus 2013 25,596 23.06% Cases

2012 20,799 29.82% Revenue

John 2013 79,045 10.5% Cases

2012 71,533 14.47% Revenue

Mark 2013 67,768 7.82% Cases

2012 62,852 14% Revenue

Kristin 2013 46,440 -0.41% Cases

2012 46,631 8.67% Revenue

NY/NJ 2013 52,073 -1.23% Cases

2012 52,721 -2.34% Revenue

Alex 2013 52,080 -15.57% Cases

2012 61,683 -23.9% Revenue

European Cellars

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Commission Ranking

European Cellars

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Rank Producer Rank Producer

1 Evodia 11 Janasse

2 Lafage 12 Estezargue

3 Hazaña 13 Mas d’En Compte

4 Castaño 14 Chateau Pesquié

5 Burgans 15 Puech Haut

6 Herencia Altes 16 Gramona

7 Michel Gassier 17 Jean-François Merieau

8 Capçanes 18 Claude Riffault

9 Espelt 19 Droin

10 Artevino 20 Marcoux

2012 2013 % Growth Case Variance

Lafage 13,372 27,260 104% 13,888

Capcanes 10,477 15,472 48% 4,995

Novellum-‐Lafage 17,052 20,668 21% 3,616

St Roch -‐ Lafage 620 3,521 468% 2,901

Espelt 8,648 11,277 30% 2,629

Famille Brechet 530 2,192 314% 1,662

Artevino 7,788 9,247 19% 1,459

Roure 150 1,098 632% 948

Tikves 4,882 5,624 15% 742

Giraud 793 1,506 90% 713

Top Performance

European Cellars

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2012 2013 % Growth Case Variance

Casenove 286 968 238% 682

Conreria d'Scala Dei 540 1,193 121% 653

Equipo Navazos 720 1,238 72% 518

Terroir al Limit 124 377 204% 253

Calendal 132 381 189% 249

Mas Doix 1,016 1,248 23% 232

Marcoux 1,132 1,304 15% 172

Sardonia 107 233 118% 126

Gramona 4,617 4,724 2% 107

Binigrau 400 481 20% 81

Top Performance

European Cellars

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Sales Trendline – Cases

European Cellars

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0

20,000

40,000

60,000

80,000

100,000

120,000

Q1 Q2 Q3 Q4

2012 2013

Monthly Sales Trendline – Cases

12

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

January February March April May June July August September October November December

2012 2013

European Cellars

DISTRIBUTOR PERFORMANCE

DISTRIBUTORS 2012 2013 % GROWTH CASE VARIANCE

TEXAS (RNDC TX vs Virtuoso & Pioneer) 5,094 11,739 130% 6,645

Freedom (A) 14,462 19,871 37% 5,409

Maverick (A) 21,658 26,443 22% 4,785

Youngs (C) 0 3,451 3,451

ARIZONA (Youngs vs Quench) 2,302 5,451 137% 3,149

Classic (B) 14,895 16,819 13% 1,924

LOUISIANA (Vino vs Purveyor) 2,411 4,137 72% 1,726

George's (D) 1,482 3,000 102% 1,518

River City (C) 0 1,489 1,489

FLORIDA (Stacole vs Country Vintner) 38,065 39,525 4% 1,460

M. S. Walker (A) 39,792 41,227 4% 1,435

L'ed Bank (B) 4,643 6,014 30% 1,371

Grassroots 0 1,268 1,268

Standard (D) 1,095 2,281 108% 1,186

IPO Wines (A) 22,291 23,399 5% 1,108

Top Distributor Performance – DI Shipments

BRAND OVERVIEWS

JDHS 2013 Review + 2014 planning

JDHS DISTRIBUTION CHANGES IN 2013 !  Switched from Regal Wine Company to Young’s Market/Estates Group in California !  Opened new Colorado distribution with Classic Wines !  Switched Virginia/DC distribution to The Country Vintner. TCV now covers

Virginia, Washington DC, West Virginia, Maryland, Delaware, and Florida. !  Switched North Carolina distribution to Freedom Beverage !  Opened new Louisiana distribution with Vino Wholesale !  Opened new New Mexico distribution with Southern Wines & Spirits !  Opened new Nevada distribution with Southern Wines & Spirits !  Opened new Arizona distribution with Young’s Market !  Opened new Hawaii distribution with Flavors of Italy !  Opened new Missouri distribution with Major Brands !  Opened new Kentucky distribution with River City !  Renewed relationship with

!  Bourget Wines in Minnesota !  L’eft Bank Wines in Wisconsin

New distribution priorities for 2014

Oregon Washington

Ohio

Distribution changes for 2014?

Connecticut?

Pennsylvania?

Michigan?

FOCUS MARKETS FOR 2014

Georgia Virginia/DC New York

Illinois Texas

California

JDHS goal vs budget 2013

2013 Case Goal 2013 Actual Cases Difference

23,000 21,415 -‐1,585

! Price per case was the higher in 2013 than it has ever been ! These figures only include the properties that were brought to EC from JDHS in January 2013 and do not include Giacchino or Champault.

2012 vs 2013

2012 Actual Cases 2013 Actual Cases Difference

18,237 21,415 3,094

2012 vs 2013 By territory/market

Western Region

Territory Market 2012 Cases 2013 Cases Difference

Alex Hawaii (Flavors) 0 36 36 Alex California (Direct) 504 390 -‐114 Alex California (Regal) 1866 330 -‐1536 Alex California (Young's) 0 3398 3398 Alex New Mexico (SWS) 0 49 49 Alex Nevada (SWS) 0 153 153 Alex Arizona (Young's) 0 197 197

2370 4553 2183


Central/Eric Lambertus


Eric Vino Wholesale (LA) 0 495 495 Eric Classic (CO) 0 342 342

0 837 837


House


House IPO/NY & NJ 3388 2228 -‐1160


Southeast


John/JW Tennessee (BB) 149 311 162 John/AO SC & AL (Grassroots) 1700 1249 -‐451 John/AO NC (Juice) 429 0 -‐429 John/AO NC (Freedom) 0 1428 1428 John/AO Georgia (Quality) 2621 1409 -‐1212 John/AO East Coast (TCV) 573 1153 580

5472 5550 78


New England


Kristen New England (MSW) 4086 5183 1097 Kristen CT (Mid-‐State) 56 196 140

4142 5379 1237


Mid-West


Mark Michigan (Arbor) 21 0 -‐21 Mark Minnesota (Bourget) 168 69 -‐99 Mark Illinois (Cream) 695 779 84 Mark Missouri (Major) 0 43 43 Mark Wisconsin (LB) 0 346 346 Mark Kentucky (River) 0 77 77

884 1314 430


Robbie


Robbie WA & OR (C&G) 901 0 -‐901 Robbie Texas (RNDC) 1080 1470 390

1981 1470 -‐511

2012 vs 2013 By producer

Michel Delhommeau, Muscadet

2012 Cases 2013 Cases Difference

1,868 1,751 -‐117

! 2013 Saint Vincent and Harmonie release the first week of March ! This producer has PLENTY of wine.


Domaine de la Fruitière, Muscadet


1,302 2,384 1,082

! Remember that “Petit M” will now be “Clos du Bel Abord” with new package and new wine style. ! This new Muscadet will release the first week of March. ! Chardonnay and Vignes Blanches 2013 are RELEASED NOW! ! This producer has plenty of wine!


Damien Laureau, Savennières


73 212 139

! We will be on 2011’s for the next couple of months ! New wine: Savennières “Les Petits Gorgées” 2012 which is much less expensive than “Les Genets” is now released.


Louis de Grenelle, Saumur


1075 1479 404

! This brand is gaining momentum and the property has a lot of wine to sell. ! Slight package change for all wines.


Domaine des Roches Neuves, Saumur


104 70 -‐34

! Very high priority for the first quarter of 2014. ! All wines are released.


Frédéric Mabileau, St. Nicolas de Bourgeuil


112 152 40


Domaine de la Noblaie, Chinon


540 1023 483

! Please push the rosé as a top JDHS rosé priority


Domaine Saint Nicolas, Fièfs Vendéens


350 257 483

! The property made more “Les Clous” this year. It will release in mid February


Domaine du Viking, Vouvray


302 724 422

! Virtually all of the 2012 Viking is sold. ! We’ll be kicking off a new Vouvray property to supplement Viking very shortly.


La Craie Vouvray


1063 938 -‐125

! Currently on 2012 vintage.


Jean-Francois Merieau, Touraine


3669 3460 -‐209

! Tough situation with Hexagonales running out halfway through the year. ! We’ll be moving to a new Sauvignon to replace Hex very shortly. ! “L’Arpent des Vaudon” 2013 will release in early March.


Domaine des Huards, Cour-Cheverny


341 440 99

! We’re doing a slightly better job moving “Romo” which the property is happy with. ! We’ll have a small allocation of Cheverny Blanc 2013 this year.


Claude Riffault, Sancerre


2034 2068 34

! Small amount of 2012 vintage still at Bilbao ! 2013 Boucauds and Chasseignes will release in March ! Chailloux and Denisottes will release in May ! Rosé 2013 is gorgeous and will release in February


Domaine Vacheron, Sancerre


1082 1184 102

! 2013 Sancerre Blanc will release at the end of this month ! 2012 Les Romains, Guignes Chevres, Chambrates, and Paradis will release in March


Champagne Francoise Bedel


271 263 -‐8

! One of the hottest grower Champagnes on the market. ! New package for all wines in spring 2013. ! Let’s get this going!!!


Champagne Dosnon & Lepage


619 536 -‐83

! Seems to be doing ok as a brand but we’re not growing it. ! All wines are available.


Chateau Vincens, Cahors


112 334 222

! Tremendous potential here. The property has a lot of wine and is very responsive. ! Strong press from Wine Enthusiast.

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European Cellars

Chateauneuf-du-Pape

2012 Sales 2013 Sales 2013 vs 2012

2013 Goals % of 2013 Goal

Clos St Jean 1564 794 -770 1326 60%

Famille Brechet 530 2192 1662 2774 79%

Giraud 793 1506 713 1748 86%

Janasse 7034 6372 -662 7462 85%

Marcoux 1132 1304 172 1338 97%

Roger Sabon 1532 1021 -511 1838 56%

TOTAL 12585 13189 604 16486 80%

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European Cellars

Chateauneuf-du-Pape

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European Cellars

REVIEW

"  2012 Vintage Update •  High quality •  Slightly more concentrated than 2011 •  Yield 20% less than 2011 – our allocations have remained steady •  The wines have been reviewed by Jeb Dunnuck •  Price increases on all but some Sabon and Famille Brechet

"  2013 Vintage Update

•  Very difficult •  Old vine Grenache suffered the most with a reduction in yields •  Declassification across the board to keep quality high •  More time to sell the 2012 vintage

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European Cellars

REVIEW

"  Clos Saint Jean •  We need more points of distribution, reorder and further sales:

•  120 cases of VV and 50 cases of Blanc •  Sell 14 VV with 7 Blanc •  Target: Glazer’s, L’eft Bank, NWS, River City, Standard,

RNDC Texas, YMCO AZ

"  Roger Sabon •  We need to deal on Renaissance utilizing 2010 Secret – 3 : 1 •  We need more distribution on remaining balances

•  Target: A&B, Classic, L’eft Bank, Maverick, NWS, Quality, RNDC Indiana, Vino, YMCO AZ

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European Cellars

REVIEW

"  Chateau Vaudieu & Famille Brechet •  2012 quality is beyond exceptional •  US market represents 12% of their production •  Large 70ha estate •  1st French property to import 80hl Bio-D tronconic eggs from Italy •  As we grow volume, price will stay constant •  Essential brand – Q1 incentive – Prepaid producer •  We can get more 2012 Lirac Blanc upon request •  Need to drive Rosé commitments in January – lighter color, package

change •  Need more distribution

•  Target: Freedom, L’eft Bank, NWS, Paustis, Quality, RNDC Indiana, Vino, Winebow, YMCO AZ

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European Cellars

REVIEW

"  Marcoux •  Lots of wines still to sell

•  173cases of Rouge and 39 cases of Blanc •  Need more distribution on remaining balances

•  Target: A&B, Glazer’s, L’eft Bank, NWS, Quality, River City, RNDC Indiana, Winebow, YMCO AZ

•  2011 V.V. – we have 30 wooden cases and 1 magnum (132€) •  Cherry pick older vintages in DB

"  Giraud

•  We need increased distribution on Premices •  2011 Tradition – 54 cases remaining

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European Cellars

Rhone

Rhone 2012 Sales 2013 Sales 2013 vs 2012


Calendal 132 381 249 601 63%

Clos Chanteduc 700 407 -293 700 58%

Collière 1139 808 -331 1608 50%

Estezargues 8713 7427 -1286 13245 56%

Garrigue 3410 3057 -353 4618 66%

Michel Gassier 17878 13600 -4278 25,060 54%

Juvenal 2 70 68 1000 7%

Mas des Volques 317 128 -189 411 31%

Pesquie – Paradou 0 4059 4059 5000 81%

Pesquie 11948 8992 -2956 12,184 74%

Roche 1733 557 --1176 1325 42%

St Jean du Barroux 202 593 391 695 85%

Vindemio 1115 21 -1094 1954 1%

TOTAL 47289 40100 -7189 68401 59%

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European Cellars

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European Cellars

Southern France

2012 Sales 2013 Sales 2013 vs 2012


Casenove 286 968 682 5214 19%

Lafage 13372 27260 13888 19702 138%

L’Hortus 2364 1293 -1071 2267 57%

Novellum 17052 20668 3616 16000 129%

Peira 345 249 -96 504 49%

Puech Haut 7481 5973 -1508 9364 64%

St Roch 620 3521 2901 1680 210%

Troullier 31 0 -31 349 0%

TOTAL 41551 59932 18381 55080 109%

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European Cellars

Southern France

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European Cellars

La Peira

"  La Peira Market Plan "  Existing distribution:

"  NY/NJ, MA, NC, FL, VA, MD, CA, WA, CO

"  Targeted new distribution: "  GA, IL & LA

"  These 12 markets will receive an allocation for La Peira in 2014:

"  Allocation will include each of the 4 wines we represent – La Peira, Las Flors, Deusyls & Les Obrieres

"  Eric Solomon will be visiting each of these markets to present these wines to the trade, conduct seminars and high profile consumer events

2012 Sales 2013 Sales 2013 vs 2012


Bovard 0 59 59 126 47%

Droin 3528 3095 -433 3319 93%

Tikves 4882 5624 742 6804 83%

Tirecul 253 253 0 272 93%

TOTAL 8663 9098 435 10545 86%

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European Cellars

Chablis, Switzerland, Macedonia, Monbazillac

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European Cellars

Green Spain

2012 Sales 2013 Sales 2013 vs 2012


Burgans 31242 27552 -3690 31,240 88%

Pazo de Senorans 2724 1142 -1582 3472 33%

Pena das Donas 244 245 1 665 37%

Rafael Palacios 2795 2723 -72 4,800 57%

Sameiras 80 49 -31 112 44%

Sanclodio 164 203 39 560 36%

TOTAL 37249 31914 -5335 40,849 78%

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European Cellars

Green Spain

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European Cellars

REVIEW

"  Pazo de Senorans •  2013 Pazo in Bilbao and ready to ship

"  Pena das Donas, Sameiras & Sanclodio

•  Sitting on inventory that needs to ship

"  Rafael Palacios •  205 cases of 2012 Sabrego remain, 2013 released in February •  2013 Louro available at the end of March •  2011 Sorte O Soro available now, ready to ship

"  Suertes del Marques (for lack of another place to put it…)

•  7 Fuentes, El Esquilón & La Solana available in Bilbao •  Available in March: El Ciruelo, Los Pasitos & Vidonia

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European Cellars

Catalunya

2012 Sales 2013 Sales 2013 vs 2012


Binigrau 369 361 -8 448 78%

Cal Raspallet 25 8 -17 56 14%

Can Rafols 0 139 139 - -

Capçanes 10477 15472 4995 15796 98%

Castell d’Encus 0 122 122 280 44%

Espelt 8648 11277 2629 11032 102%

Gramona 4617 4724 107 3908 121%

Herencia Altes 21339 16465 4874 20,040 82%

TOTAL 45475 48568 3093 51431 94.4%

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European Cellars

Catalunya

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European Cellars

REVIEW

"  Binigrau •  2013 Nounat released in March

"  Can Rafols

•  We are behind and must focus on this producer •  Mas Oller Mar and Terraprima white must be gone this month

"  Capçanes

•  Mas Donis Rosé will be in Bilbao early February •  2012 Mas Donis Red is on hold per Eric Solomon

"  Cara Nord

•  Wines ready in Bilbao •  New released will be available in March/April

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European Cellars

REVIEW

"  Celler d’Encus •  We are way behind and new released are imminent

"  Gramona

•  2013 Gessami available at Bilbao, ready to ship •  Enoteca released in February

"  Espelt

•  2013 Vailet and Corali in Bilbao, ready to ship

"  Herencia Altes •  2013 Garnatxa Blanca released in February •  2013 Garnatxa Negre released in March

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European Cellars

Priorat

2012 Sales 2013 Sales 2013 vs 2012


Celler Cecilio 0 1704 1704 1,000 170%

Clos Erasmus 728 505 -223 906 56%

Closa Batllet 1120 603 -517 722 84%

Conreria d’Scala Dei 540 1193 653 1960 61%

Mas Alta 2503 2352 -151 3154 75%

Mas d’En Compte 4233 3613 -620 5,804 62%

Mas Doix 1016 1248 232 1844 68%

Nit de Nin 440 131 -309 520 25%

Terroir al Limit 124 377 253 220 171%

TOTAL 10704 11726 1022 16130 73%

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European Cellars

Priorat

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European Cellars

REVIEW

"  Conreria d’Scala Dei •  2012 Brugueres in Bilbao, ready to ship •  2010 Black Slate Escaladei in Bilbao, ready to ship •  2012 Black Slate Morera Blanc released at the end of February

"  Mas Alta

•  2012 Black Slate Vilella Alta released in February

"  Mas Doix •  168 cases of Les Crestes unsold •  2009 VV remains without sales, there are 440 cases to sell!

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European Cellars

Central Spain

2012 Sales 2013 Sales 2013 vs 2012


Evodia 75709 66226 -9483 65,000 102%

Calandria 400 463 63 839 55%

Comando G 60 69 9 154 45%

Equipo Navazos 720 1238 518 1270 97%

Jimenez-Landi 734 286 -448 1064 27%

Menade 3714 1012 -2702 5112 20%

Vila Viniteca 1136 966 -170 2184 44%

TOTAL 82473 70260 -12213 75,623 93%

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European Cellars

Central Spain

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European Cellars

REVIEW

"  Comando G / Daniel Jimenez •  Wines are prepaid and sitting in Bilbao – we must start selling them

"  Equipo Navazos

•  #42, #44, #45 & #46 are in Bilbao, ready to ship •  #47 & #48 will be released in March

"  Menade

•  2013 Verdejo Organic & Creta Verdejo Organic released in February

"  Vila Viniteca •  We are sitting on the following back vintages:

•  150 cases 2011 Niepoort-Navazos •  6 cases 2010 La Mujer Cañon •  162 cases 2011 El Hombre Bala •  308 cases El Perro Verde

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European Cellars

Murcia & Valencia

2012 Sales 2013 Sales 2013 vs 2012


Casa Castillo 3808 3006 -802 8064 37%

Castano 28620 16956 -11664 23452 72%

Roure 150 1098 948 1512 73%

Sierra Salinas 4202 3175 -1027 4112 77%

Valsangiacomo 0 1120 1120 - -

TOTAL 36780 25355 -11425 37140 68.3%

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European Cellars

Murcia & Valencia

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European Cellars

REVIEW

"  Casa Castillo •  Must sell remaining 2011 Monastrell by the end of January (390 cases)

"  Castaño

•  2013 Macabeo/Chardonnay and Rosado available end of January

"  Celler del Roure •  2012 Cullerot and 2011 Parotet released in February

"  Valsangiacomo

•  2012 Bobal de Sanjuan in Bilbao, ready to ship

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European Cellars

Rioja &

Ribera del Duero

2012 Sales 2013 Sales 2013 vs 2012


Aalto 2190 1643 -547 3224 51%

Artevino 14817 17515 2698 20104 87%

Benjamin Romeo 1396 1097 -299 3,369 33%

Creta 4578 2270 -2308 5000 45%

Hazana Rioja 0 14912 14912 - -

Monasterio 995 1042 47 1,064 98%

Sardonia 107 233 126 168 139%

TOTAL 24083 38712 14629 32929 118%

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European Cellars

Rioja & Ribera del Duero

2012 Sales 2013 Sales 2013 vs 2012


Villacreces 4053 4493 440 5488 82%

Izadi 2741 3625 884 3416 106%

Vetus 757 783 26 1456 54%

Orben 236 248 12 420 59%

ARTEVINO 14817 17515 2698 20104 87%

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European Cellars

Artevino

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European Cellars

REVIEW

"  Aalto •  We start our commitment for sales of 280 cases per month in 2014

"  Benjamin Romeo

•  Must sell current inventory of whites •  Focus on Predicador

"  Hazaña

•  2400 cases of 2011 remain, we will ship 2012 when it is gone.

"  Hacienda Monasterio •  2010 in Bilbao, ready to ship

"  Quinta Sardonia

•  Must sell current inventory, we are behind

NATIONAL PORTFOLIO TASTING

European Cellars

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2014 National Portfolio Tasting

Location – Charlotte, NC •  1 day France ( JDHS & ESS) •  1 day Spain

•  Guided tasting, seminars •  March 17th – 18th •  Duke Mansion

•  Portfolio managers and trade will be invited

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2014 National Portfolio Tasting

Invitation process •  The invitation list has been finalized •  Eric Lambertus will be handling the details

•  Each distributor will be contacted by phone •  Details •  Cost sharing

•  Invitations to the trade •  This will begin on Friday, January 10th

GORDONS VS VINLUX

Business review 2013 final

Documents

Transcript of Business review 2013 final