Winery Exchange Partners with Otis McAllister to Offer Beverage Alcohol Products to Asia Winery Exchange( http://www.wineryexchange.com ), the premier private brand beverage alcohol company is expanding its business in Asia through a joint venture with Otis McAllister, a leading importer and food company in Hong Kong and China. The beverage alcohol market in Asia has grown substantially in recent years providing an ideal opportunity for Winery Exchange to expand its business. Otis McAllister will now serve as the sales and distribution arm of Winery Exchange throughout Asia.

"The Asian wine market is growing very fast and there is a lot of opportunity," said Dan Irving, International Managing Director, Winery Exchange. "This partnership is very exciting as it combines our strong global capabilities developing, producing, and delivering beverage alcohol products to customers with Otis McAllister's strong business relationships throughout Asia." (Cont’d on Page 2)

this issue Otis Partners With Winery Exchange

Product Samples A Big Hit Otis Attends Sysco Food Show

Abastos Teleno Visits Otis La Sirena and EMD Team UP

Much More Than Business Proud To Be A Business Partner

Otis Internship Program Sun Maid Visits Otis

Johnnie Walker Takes A Cruise KEHE Holiday Show

ACG Teaches Airport Staff To Sell Jelly Belly Explodes In South America

Otis Attends IPCPR Otis Meets With US Undersecretary of

Commerce for International Trade

Otis McAllister Corporate Newsletter

September 30th, 2012

Otis McAllister staff visits Winery Exchange for a day of wine education and training.

From left to right, top row: Dan Irving, Managing Director, International, Stephanie Cervantes, Associate Director, Beer Strategy &

Execution, Peter Byck, CEO, Oliver Colvin, COO, Kurt Lorenzi, Head Winemaker, Andy Ma, Pauline Cheung, Business Development Manager

Bottom row: Lita Lin, Director, Chloe Nicolaisen, Business Development Specialist

According to the Rabobank report "Wine in China – Mind the Gap," Wine imports to China grew by 65 percent to 241 million litres in 2011. "We are thrilled about the partnership with Otis McAllister for the high growth Asian market," said Peter Byck, President and CEO, Winery Exchange. "They have a very successful long-term track record of doing business in Asia and their core values are perfectly in line with Winery Exchange."

Otis McAllister has been operating in the food and beverage industry in Asia for over 100 years. "It is very clear to us that the beverage alcohol industry will continue to be a tremendously strong area for growth in China and throughout Asia," said Royce Nicolaisen, Chairman and CEO, Otis McAllister. "We are very committed to this market and confident that Winery Exchange is the ideal partner to expand our business in this sector."

Winery Exchange is the only full-service, private brand, beverage alcohol company that sources beer, wine, and spirits. The company was founded with the intent of blending extensive industry expertise with cutting-edge business practices. The result is a dynamic, fast-growing company poised to take advantage of new trends in the beverage alcohol industry.

Our wonderful staff from the Otis McAllister Hong Kong office joined Otis San Francisco’s Chloe Nicolaisen for a great series of meetings with Winery Exchange. The Otis team visited one of Winery Exchange’s partner wineries in Sonoma County for a tour of the vineyard (now in the middle of harvest!) and the winery and met with key members of the Winery Exchange staff to develop our joint business strategy in Asia. Thank you to Winery Exchange for such a wonderful visit!

Winery Exchange Partners with Otis McAllister to Offer Beverage Alcohol Products to Asia (Cont’d from Page 1)

Otis Hong Kong staff and Winery Exchange’s head winemaker, Kurt Lorenzi tour one of Winery Exchange’s vineyard partners in Sonoma County. From left to right: Andy Ma, Lita Lin, Kurt Lorenzi and Pauline Cheung.

Product Samples a Big Hit at Sysco Chicago Market Place

On June 22nd, Otis McAllister's food service team - Nancy and John Bieraugel participated in the Sysco Chicago Market Place Event. This event was held to educate the sales people on various products, and offered a lot of one on one for the vendors and Sysco Marketing Associates. John cooked Jade Mountain Rice and served with a Thai chicken topping. The Asian sales team was especially interested - and very excited to get additional information about Jade Mountain Thai Hom Mali Rice as well as samples to give to their customers. At the event 170 sample bags were distributed to Sysco MA's.

John Bieraugel of Otis McAllister met with Chef Patrick (displayed in picture above) and more than 250 current Sysco customers where product samples were in such a demand that our team ran out of samples at the show. More than 50 potential new customers were introduced to the high quality Jade Mountain Jasmine rice product. For more information about this event and Jade Mountain Jasmine rice, contact John Bieraugel at jbieraugel@otismcallister.com.

Otis Attends Sysco St. George Utah Food Show

Perry Zhao, Marketing Associate, Tom Jessop, Regional Sales Manager, Annie Chan, Marketing Associate, and Patrick Chan, New

Business Development Manager.

La Sirena and EMD Team Up

EMD Sales, is a Mid-Atlantic distributor of La Sirena and the only distributor in the United States who handles all of the La Sirena products. Their commitment and strong relationship with La Sirena has lead to success after success for five consecutive years. Blanca Senor, Vice President, and Alberto Bueso, Brand Manager of La Sirena, had the pleasure of visiting EMD Sales on Friday, June 29, 2012, and awarded them for their 5th year partnership anniversary of working together with La Sirena. They also closed the Winter Lent Incentive Sales 2012 contest with a 38% volume increase.

They have managed to keep a consistent annual progress in sales and they are not stopping there! They plan on incorporating new items in 2013.

Way to go EMD and La Sirena!

From left to right: Everett C. Golden, III, Graciela Beck, and Agustin Matanzo

Abastos Teleno, S.A. de C.V. Visits Otis

During the month of July we had the pleasure of receiving the visit of Mr. Agustin Matanzo, our long time customer and distributor of peaches in Mexico. Mr. Matanzo visits us every year during the beginning of the crop season. He started the peach business back in 1995, when the US signed the NAFTA agreement with Mexico. Since then, he has seen his canned peach business grow every year under his brand Don Agustin. We are proud to continue our business relationship with such a loyal customer and look forward to our mutual visits to his lovely city of Puebla where he resides with his family.

Much More Than Business…

At Otis McAllister, we truly enjoy long-standing business relationships forged over many years and often decades of working with key partners to develop accounts and brands globally. These relationships and meaningful friendships often surpass a single generation. As was the case when our dear friends, Shabbir and Sakina Abidali, at Helios Ingredients in the U.K. invited Everett Golden, company President and COO to their son Mufaddal’s wedding at The Langham Portland Place in London to his lovely fiance’ Zahabia on Sunday, July 1, 2012.

Everett enjoyed attending this special wedding, sharing the love and joy that filled the day. From all of us at Otis McAllister to Mufaddal and Zahabia Abidali, we wish you all the best for eternity!

Proud to Be a Business Partner…

When the term “Business Partner” is freely spoken, it is usually spoken with feelings of trust, forged from years of hard work, dependable, high-quality service, and most importantly, measurable results. For our logistics business partners who strive so hard to (earn our trust and) support our business, we include a “spotlight” in our quarterly newsletter to focus on the logistics partner that truly shines and gives complete validation to the title “business partner.”

EBJ Wholesale located in Oakland, California, is one of those business partners who just shines, day-in and day-out. They maintain one of the cleanest, most well-ran warehouses in the industry. Their team of dedicated professionals always go the “extra mile” to ensure that their records are accurate and well-maintained, their staff are well-trained, food quality and safety audits fully complied with. They truly insure our product held in their storage is safe and handled with the utmost care and professionalism. Their can-do spirit is refreshing. Their openness to new ideas and ability to solve any logistics Challenge quickly has earned them the title of a true Business Partner. We are proud of our relationships with the Chan family and all of their staff for the many years of dedicated, and sustained superior service.

The next edition of our newsletter will spotlight Javier Carrion and his crew at LINC Logistics Company.

Otis McAllister Internship Program

Our corporate internship program has been an instrumental part of our corporate culture for many years - a culture that is dedicated to giving back to the community. Specifically, our corporate internship program deals with the multi-faceted aspect of assisting college business students with applying what they have learned in the classroom environment to the real-world business environment. No better opportunity is available for today’s interns than a global food business that promotes exposure to global customers, suppliers, and logistic operations that spans six continents and over 120 countries. This past summer, we had the opportunity to host He “Ivy” Jiang, a senior student majoring in Economics at the University of Arizona. Ivy wrote, “The internship experience at Otis McAllister gave me a lot of direction and inspiration that helped me to determine my future career goals. I learned a lot, and I enjoyed working with a very big, warm family at Otis.” Ivy further wrote, “At Otis I met a lot of colleagues who have different cultural backgrounds and experiences. I had a lot of fun working with them. I have a Chinese background which was fully appreciated during my internship. The internship at Otis gave me much more than I had imagined.

I learned a great deal carrying out market research, communication, and international trading. The highlights of my work involved market condition research on chocolate and wine in China, and I have received valuable feedback from my supervisors and colleagues on this important research. After the internship at Otis, I now have a better understanding on what I am learning at school. The dry academic terms and theories become lively and relevant in my mind, and I know how to use more appropriate ways to communicate with people from different backgrounds. These things I learned are priceless and valuable in my life. Everyone at Otis was so nice and patient while helping me with every single problem I had encountered. My internship was not only about work, my sweet colleagues also introduced me to some really good restaurants and clubs. My life in San Francisco was full of enjoyment. This is my first real-life working experience in the U.S. and it is also one of my best memories. I’ll always remember everyone there and what I learned from this big family. To have my internship at Otis McAllister was one of the best choices I have ever made in my life.” Ivy, the feeling is mutual. We are glad that you learned a lot, were able to apply some of your academic training and understanding to real-world business challenges, were able to sharpen your research skills, improve on your communication skills, meet some really nice people, and explore the beautiful city of San Francisco. That’s what being an intern is all about! If you would like to experience a thought-provoking, hands-on, challenging internship, send your resume to careers@otismcallister.com with a cover letter stating your availability, providing information about your academic training to date, and what you would like to achieve if an internship at Otis McAllister, Inc. is granted to you.

From left to right - Everett C. Golden, III, President and COO, He "Ivy" Jiang, Otis McAllister Summer Intern, Sammie Xiao, Senior

Director, Asia-Pacific, and Royce Nicolaisen, Chairman and CEO at Ivy Jiang's Going Away Party.

Sun-Maid Visits Otis McAllister

Carsten Tietjen, Director of International Sales, managing Sun Maid branded sales made by exclusive distributor, Otis McAllister, in Latin American, Caribbean, and Tahiti markets, visit at Otis headquarters in downtown S.F. July 24, 2012 for crop, sales, marketing and product review with President, Everett C. Golden, Director of So. American and Caribbean Sales, Jenny Del Valle, and Export Sales Manager, Jessica Brownlow. New products were sampled and reviewed as well as strategic promotion planning.

Starboard Cruise Services, Inc. is the world's largest and leading onboard retailer, offering cruise ship guests world-class brands and exclusive merchandise with tax and duty-free savings. Otis’ travel retail division, ACG, recently closed a very large deal with Starboard for Turin’s exclusive Johnnie Walker filled dark chocolates. Starboard showed their commitment to Turin’s NEW Johnnie Walker assortment by placing an opening order of $58k to bring the line onboard 20 cruise ships out of the 92 they operate. Justin Nee, Director of Confectionary, is confident that Turin’s presence will spread across more ships throughout the travel retail sector in the coming months opening doors for more brands such as Jelly Belly and Frey Chocolates.

Turin’s Johnnie Walker Chocolates Take a Cruise

KEHE Holiday Show, McCormick Place, Chicago, IL

Otis’ travel retail division, ACG, places huge emphasis on educating the salesperson within the retail environment. These

staff trainings empower the salesperson with the knowledge they need to feel confident with the brands and to recognize

the needs of their customers. ACG has conducted dozens of trainings to date, making it a vital tool for not only improving

sales but also for developing a lasting relationship between the brands and the store employees. This unique market

strategy certainly provides a lasting and powerful advantage over Otis’ competition.

This past August ACG traveled to the Dominican Republic to train staff employees from Dufry, the largest airport store

operator in the country. From the General Cigar company, Yuri Guillen and Master Roller Christian Aybar joined the team to

conduct an in depth training session on the process and culture of producing cigars. The session consisted of the elaborate

history of how General Cigar’s cigars are grown, how each component of the cigar comes together, and what each staff

member should know in order to inform and entice the consumer. A live demonstration of rolling a cigar followed the

discussion. The staff was able to see, smell, and touch each technical step of this artisan process.

ACG often conducts staff trainings in the stores of the travel retail environments, such as airports and border stores. Justin

Nee, Directory of Confectionary, has conducted numerous trainings & tastings over this past summer to educate the sales

staff on the confectionary brands and their unique quality. “These trainings and tasting events are so important because

when the staff actually know the products on their shelves, it not only increases sales but it pushes brand recognition,” says

Justin Nee. “This communication is vital for getting the staff and their customers to identify our brands and to share their

knowledge with our people”. In addition, the one on one sessions in the marketplace also give ACG the valuable feedback

they need on product performance and customer demands.

Celebrating 60 years, KeHE is the largest retail grocery, natural and specialty food distributors in the U.S. This year at their annual holiday show, Mary Lobaugh and Joe Gozzi showed an array of products from both the Village Harvest dry rice and grain line as well as our frozen whole grain line. The KeHE Holiday Show is a great venue for targeting holiday sales to KeHE customers. The Village Harvest brand has been distributed by KeHE for the past 6 years and we look forward to many more years of business.

ACG Teaches Airport Staff to Sell

Jelly Belly Explodes in Travel Retail Throughout Latin America

Latin America presents a promising future . It is one of

the regions in the world where growth and

development have been strengthened in recent years

by being able to face difficult times with great success.

Duty Free Americas (DFA) has been a dynamic part of

this process and a valued partner for Travel Retail

sales throughout the region. Otis McAllister will be

shipping a full 40 foot container worth of Jelly Belly

product to DFA’s thriving Travel Retail stores,

operating in Belize, El Salvador, Dominican Republic,

Panama, Colombia, Venezuela, and Uruguay. ACG, the

travel retail division at Otis McAllister, hopes this huge

sale for Jelly Belly product will be the first of many

more to come in these growing economies.

Otis’ travel retail division, ACG, attended the IPCPR held in Orlando, FL this past August. The event showcased

sellers, buyers, agents, and operators within the industry .

General Cigar is one of the leading premium handmade cigar manufacturers in the world, with 39% market

share within the US market. At the event, the company showcased over 40 booths with their entire range of

hand rolled and specialty cigars, including the much anticipated blend The Foundry. Hundreds of people walked

their exhibit to experience the unique, superior quality the company is well known for around the globe. Within

the last year, ACG was appointed the exclusive distribution of General Cigar brands within travel retail for all of

the Americas. With the cigar market’s current growth rate of 3% year to date, ACG’s Marc Panara (Director of

Tobacco Sales) was pleased to announce a growth rate of 145% since taking on their brands within the same

time frame.

ACG Attends IPCPR Show in Orlando, FL

On July 23, 2012, Everett C. Golden, III, President and COO of Otis McAllister met with key members of the

Bay Area Council and Bay Area Council Economic Institute at the GAP Inc. headquarters in San Francisco,

California to hear Undersecretary Francisco Sanchez and Deputy United States Trade Representative

Demetrios Marantis discuss the latest developments in U.S. trade policy, including negotiations on the Trans-

Pacific Partnership (TPP), and US trade and investment relations with China and India. Undersecretary

Sanchez also discussed federal initiatives relating to manufacturing, including the relocation of overseas

production back to the United States, an initiative that is known as "reshoring."

Everett C. Golden, III, President and COO of Otis McAllister, with George

Broder from the Bay Area Council

Otis Attends Meeting with U.S. Undersecretary of

Commerce for International Trade

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Editor-in-Chief: Royce Nicolaisen

ISSUE XVI September 2012

Otis McAllister, Inc. is a proud recipient

of the U.S. President’s “E” Award

for Export Excellence

Global Trade Experts Since 1892

OTIS MCALLISTER, INC

160 PINE STREET, SUITE 350

SAN FRANCISCO, CA 94111

415.421.6010 ph

415.421.6016 fax

www.OTISMCALLISTER.com

Carla Tamma

Editor:

Contributors:

Come Join Us

SIAL Paris 2012 in Paris, France at the Parc des Expositions de Paris Nord Villepinte, October 21-25.

TFWA World Exhibition 2012 in Cannes, France at the Palais des Festivals et des Congrès de Cannes, October 22-26.

Fancy Food Show 2013 – Moscone Center, Jan 20-22

Natural Products Expo West 2013 – Anaheim Convention Center, Mar 8-10

James Everett Kochheiser

Assistant Editor, Graphic Layout & Design:

Everett C. Golden, III

Alberto Bueso Chloe Nicolaisen Graciela Beck He “Ivy” Jiang Jessica Padilla John Bieraugel Justin Nee Marc Panara Mary Lobaugh Nancy Bieraugel

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