Portfolio Manager Conference Call January 2014

Bonne Année from Christophe Navarre, CEO  2013 was a Successful Year!  Growth over 2012 in all categories  On budget!

MH has out performed the competition  Diversification in Market share

Key Factors to Success  Never Settle  Brands  Prioritize Innovation and Creativty

YOU!  Passion  Determination  Commitment

2014 Portfolio Manager Org Chart Update  Congratulations Tina Chebret! Houston PM promoted to Regional Sales Director, Glazers, TX.  Congratulations Ginger Ryals! Tampa PM promoted to Area Manager Coastal W&S – Tampa OPEN POSITIONS: Houston, Florida (exact area TBD), Beverly Hills, New York City, Boston, New Orleans, Baltimore

MHMC Update  We will do it again in 2015

Brand Updates Selling Stories

Champagne Wins  December 28 th : Sam Barnes hits a home run on Fox & Friends!

Champagne Wins  Seth explains it all in the WSJ and on Live TV!

Champagne Wins January 2014: Dom Perignon Wine Maker awarded “ARTIST OF THE YEAR” IN THE HUFFINGTON POST! I know you are all asking yourselves, "Who the hell is artist Richard Geoffroy?" Please, allow me to explain... As a person that spends perhaps 250 days of the year visiting artist studios, galleries and openings, it would suffice to say, I've met a hell of a lot of artists this year. I've interviewed uber famous artists, as well as visited young creators making art in communal spaces or abandoned warehouses. But over the past 365 days, I've met only one person that has truly changed the way I appreciate art as well as an artist's process. And more importantly, Mr. Richard Geoffroy, the Chef-de-Cave of the venerable Dom Perignon, has single handedly changed the way I now define the word artist. A few months ago, I went to visit Mr. Geoffroy's artist studio, posing as a monastery and vineyard, in Champagne, France. Initially, I made the trip to learn more about his recent super cool collaboration with the popular artist Jeff Koons, and what on earth could be inside of a glorified and rarified $20,000 wine holder. Much to my surprise, what I discovered was no simple wine maker or mere mortal. Instead, I discovered a maestro, a philosopher, a spiritual guru, and yes -- a true artist. Richard Geoffroy,

Champagne Wins VEUVE CLICQUOT  While Veuve Clicquot will not be declaring a vintage in 2011, they very easily could have. Dominique Demarville spent many hours contemplating what to do with the 2011s, and he eventually chose to put all of the wines into the NV blends. His desire to contribute to high quality stock for the NV Yellow Label (Rose and blanc) and the outstanding nature of 2012’s harvest were ultimately the deciding factors. This is still a bold decision, as the house could have easily made large amounts of vintage wine and sold it at a higher price per bottle, but the team remains dedicated to continuous improvement of the NV range and believes that the decision is the best one for long term success. DOM PERIGNON  So what is in the bottle? Grapes from some of the best land in Champagne turned into wine by some of the most talented and dedicated folks in the industry. It really is that simple. No gimmicks, no magic, and no drama. Richard Geoffroy will be the first to tell you that he is very fortunate to have these raw materials to work with. I’m sorry to disappoint anyone, but there really isn’t anything else to see here – just great vineyards, passion, and a lot of fat, juicy, tart grapes. In fact, I can’t wait to start having a new Jeopardy dream where the answer is, “The legendary, landmark Champagne that manages to match high quality and high volume”. The question, of course, is “What is Dom Pérignon?”

Veuve Clicquot  Under the new chef de cave, Dominique Demarville, the Yellow Label, which is actually orange, has become the fastest improving non-vintage Champagne of all the major houses. When you consider that Veuve Clicquot is the second-largest house with a production of up to 18 million bottles, most of which is non-vintage, this is some achievement.  The secret is four-fold. Firstly: a reduction in the number of vintages declared to a maximum of three every 10 years, diverting the cream of more crops to the non-vintage.  Secondly, the purchase of 30 oak foudres, which act like condiments and their careful application can make all the difference to a blend.  Thirdly, an increase in the amount of reserve wines: from 25 percent five years ago to the current 35–55 percent.  And fourthly, a full 12 months post-disgorgement aging before release. which softens the mousse and reveals finesse.  The first really big jump in quality came with the current Yellow Label (which is 2009-based); the next cuvée will be the 2010-based and is due to be released in December Moët & Chandon  This single cuvée represents more than seven per cent of the total production of the Champagne region and yet, contrary to popular opinion, it has always been one of the most consistent non-vintage Champagnes on the market. Now it is beginning to get exciting, as Gouez pushes the boundaries in terms of both production and blend. But don’t let the label dictate your view: you have to taste it blind to believe just how good it is. WINE SEARCHER: Tom Stevenson

National Account Wins New NACs

 Veuve Clicquot  Under the new chef de cave, Dominique Demarville, the Yellow Label, which is actually orange, has become the fastest improving non-vintage Champagne of all the major houses. When you consider that Veuve Clicquot is the second-largest house with a production of up to 18 million bottles, most of which is non-vintage, this is some achievement.  The secret is four-fold. Firstly: a reduction in the number of vintages declared to a maximum of three every 10 years, diverting the cream of more crops to the non-vintage.  Secondly, the purchase of 30 oak foudres, which act like condiments and their careful application can make all the difference to a blend.  Thirdly, an increase in the amount of reserve wines: from 25 percent five years ago to the current 35–55 percent.  And fourthly, a full 12 months post-disgorgement aging before release. which softens the mousse and reveals finesse.  The first really big jump in quality came with the current Yellow Label (which is 2009-based); the next cuvée will be the based and is due to be released in December  When it comes to magnums, the 2007-based cuvée is currently available, but if you wait until early next spring, the superior 2008-based magnums will be released. The 2009-based magnums will be even better (2008 and 2009 are the two greatest vintages of the first decade of the new millennium), because, under Clicquot’s new vintage policy, 2008 was declared, but 2009 was not, thus all of 2009’s very best wines ended up in the 2009-based Yellow Label or stored as reserves for future use.  Moët & Chandon  Regrettably, success breeds as much cynicism as prestige, so when Moët & Chandon sells 30 million bottles, there are plenty of consumers who think the Champagne it produces is more about numbers than quality. Well, it could be, but it is not and never has been. The vintage here has always been known as a great buy, particularly in the U.K. where the trade would sell the non-vintage and squirrel away the vintage for their own enjoyment. Perfectly cellared bottles and (especially) magnums of Moët vintage age as long and as gracefully as most other vintage Champagnes: the 1921 is one of the greatest Champagnes ever produced, and the 1911 was still on miraculous form at the age of 100, when it was mesmerizingly fresh and even had a hint of effervescence.  The direction of Moët vintage began to change in Georges Blanck, who was chef de cave from 2000 until 2005, began the process. He started to focus on reflecting the year more than the house style, and increased the time between disgorgement and shipping. However, tasting past, present and future Moët vintages from 2000 to 2010 in their freshly disgorged state, it is easy to see that another, even greater sea change occurred in 2005, when Benoît Gouez, the current chef de cave, took over. His 2008 and 2009 will be amongst the very best in the entire region, but it is Moët’s non-vintage that he has set his sights on.  This single cuvée represents more than seven per cent of the total production of the Champagne region and yet, contrary to popular opinion, it has always been one of the most consistent non-vintage Champagnes on the market. Now it is beginning to get exciting, as Gouez pushes the boundaries in terms of both production and blend. But don’t let the label dictate your view: you have to taste it blind to believe just how good it is.

National Account Wins  Starwood program  W: Veuve Clicquot and Dom Perignon NEW (only Champagnes)  St. Regis: Veuve, Dom and Moet NEW (only Champagnes)  NEW Highly Recommended Wine Program includes Krug, Ruinart BdB and Rose, Newton UF Cab, Terrazas Torrentes Reserve and Alto Malbec.  Chandon BTG in Westin and Sheraton but no longer in St. Regis or W  Contact Meigan Kelly directly for Chandon activation ideas in top St. Regis and W Hotels  Include Starwood wins in Commercial Succeess Submissions.

National Account Wins  Kimpton Hotels  Hennessy VS placement  10 Cane Cocktail Feature  MH has 10 of 100 Wines on the CORE list.  25% of a wine list must come from CORE  In Room half bottle list of 20 items must come from CORE  Include Kimpton wins in Commercial Succeess Submissions.

National Account Wins  Ruth’s Chris includes Belvedere Mandate and Ruby Red cocktail with Belvedere Pink Grapefruit!

National Account Wins OMNI HOTELS  ALL NEW on Omni Menus, Belvedere is featured in the "Ultimate Martini", Chandon Rose is in the "Champagne Cobbler", Hennessy VS is in the "Strawberry Basil Smash" and Grand Marnier Raspberry Peach is featured in the "Knickerbocker". Grand Marnier will also be featured in the "Anejo on the Rocks" as well as the "Smokey Margarita". Chandon Brut and Rose 187 mls continue to be listed BTG, Chandon Brut 750 ml BTB, Terrazas Malbec will now be BTB along with Moet Imperial and NEW to the BTB, Veuve YL!

National Account Wins Capital Grille  Wine Locker Event with Icon Wines!

The Portfolio Manager Partner Account (PMPA) New Program

MH-PM-PA  John Howie: Seattle. In addition to Wine Distributions Cloudy Bay Late Harvest Riesling BTG, Krug BTG, Dom Perignon BTG, Dom Ruinart 98 Dom Ruinart 2002, Newton Unfiltered Cabernet, Terrazas Las Compuertas Malbec, Krug Rose  Every ambassador or high profile MHUSA visitor to the Seattle market conducted a training for the staff or visited the account  Trainings include: Christine England Belvedere, Wayne Chang Hennessy, Megan Gordon Ruinart  Private High Marque wine tasting for clients  Access to Limited POS  NOTIFICATION IN CONCUR to insure ILVMH ndustry Spend?  Recognition when visiting Maisons  MH PM PA Newsletter for all LVMH?  OTHER?  QUALIFIERS  More than 30 Marques  Champagne Icons  Wine Icons  Spirit Icons  Champagne BTG  More than X cases annually

Coravin: THE NEW ½ BOTTLE RECAP OF IDEAS FROM CONF CALL  Flights of Your Life  Sell by Date : July 2013: put a level  Magnums BTG  Separate section for Coravin lists  Customers actually use the Coravin / interactive  Take home ½  Table side carafe’s  Sweet spot BTG price has tripled  From $60 to $180  Highest price = $475 Ornelia at del Posto

January PM Focus Program “triple the tipple” Jan-Feb. The Perfect Scotch and Water. Velocity Program in 100 accounts. Triple the On Premise sales in 2014

Program Elements  Elegant water decanters (2 per PM)  Each PM will code 1 bottle of Uigeadail at approximately $50 from distributor inventory and $200 to activate in 2 accounts (crack the cap).  The RMMs will have incremental $ budget for the program as follows:  Central: 16 PMs = $4,000  Control 1 PM = $250  West: 13 PMs = $3,250  Northeast: 9 PMs = $2,250  Southeast: 11 PMs = $2,750 (not including 1 DC night PM)  TARGET ACCOUNTS?

ICON WINE VELOCITY PROGRAM Focus Program Feb – March….

E&W ICON WINES DECANTER & CORAVIN PROGRAM: OBJECTIVE: –Drive Icon Wines velocity within PM accounts by executing by the glass programs on the most iconic wines of our portfolio. –Introduce an impactful and premium service ritual with spectacular decanters PROGRAM ELEMENTS: –High impact Riedel Decanters available at Champion to create service theater and by the glass opportunities on Icons Dragon Decanter (24 available) recommended with Termanthia Amadeo Decanter (16 available) recommended with Cheval des Andes Boa Decanter (16 available) Recommended with Numanthia –Wines to be executed with: # 1 Priority: Termanthia ‘10, #2 Priority Cheval des Andes ’09, #3 Priority Numanathia PROGRAM GOALS and MEASUREMENT: –Each PM responsible to have at one account activated with Icon Wine by the glass with high impact decanter to deliver 2 cases of incremental Icon Wine –PM to select decanter and request with PM shipping address to Pascal Eyssette. –RMM to approve samples as needed for sell in and training from Region budget. TIMING –February/ March Sell in Boa Decanter / Numanthia Amadeo Decanter / Cheval des Andes Dragon Decanter / Termanthia

ACTIVATION –Termanthia »Full Glass : $70 »Half Glass: $35 –Cheval des Andes »Full Glass: $35 »Half Glass: $20 –Numanthia »Full Glass: $30 »Half Glass: $18 –No special price need to be extended to the account PRICE RECOMMENDATION PRE-DECANTING –Wines need to be pre-decanted before service. –The appeal and key selling point is that we have pre-decanted an amazing wine that really benefits from aeration and is now perfect. –Termanthia and Cheval gain complexity and suppleness by being decanted. STAFF TRAINING –Very important to train staff. Best practice from Chicago include:  Demonstrating vine stress - we took 10 foot tubing and had staff drink a glass a water through the tube to demonstrate how hard the vines have to work to get water within the Toro region  Separation of M&M's - we had the staff separate the Numanthia branded M&M's from a glass of multicolored M&M's to demonstrate hand berry sorting  Bought the staff rib eyes so they could see why this wine works so well with food  Tasted blind against Silver Oak and Opus One in order to demonstrate that this New World styled Spanish wine can hold its own and out perform big name Napa Cabs Keys to Success –Recommended to have special menu feature –Staff MOTIVATION is critical. Make sure they realize profit potential for the restaurant and themselves. –Suggest the account to incentivize the staff on the program –**Each PM has been distributed a Coravin system with Argon gas to extend the life on Icon Wine Samples –To get more additional gas, you must go to coravin.com. Contact for large orders.

CS Magazine Food & Drink, The Guide Numanthia September 2013 Reach:79,860

Termanthia BTG feature at the Iconic Boston Harbor Hotel Termanthia offered BTG, served from the Riedel DRAGON decanter, table side Display of the decanter with Termanthia bottles and wood case in prime location upon entry to MERITAGE restaurant Two pours offered ½ glass at $45 Full glass at $75 Program executed 2 weeks around Christmas & NYE Account purchased 18 bottles and sold 15 in the BTG program Termanthia BTB placement for the remaining 3 bottles on hand

New Vintages: New Sell Sheets

Order form for Decanter to deborah.hutton#mhusa.com;

etoile BTG Focus Program Feb – March …

étoile by the glass focus program  2013 we grew +30.5% in the PM Universe = cases!  Objective  Goal is to drive BTG and distribution in high image account universe (on & off premise). Last years program drove +93% AS growth during the focus months and 46 new BTG placements. This years goal is to double our BTG placements in Q1 and grow another 35% by year end.  Tools  étoile is off allocation in 2014 so please make sure your markets have ample inventory by end of January to support a fast start. Brand team is providing sample code to PMs to support account placements.  New sell sheets for PMs  Brand team and our Ambassadors will be in market to support sell in and staff training  Investment for samples and activation = $15,900  Central: 16 PMs = $4,800 +$300 = $5,100  Control 1 PM = $300  West: 13 PMs = $3,900 + $600 for CA = $4,500  Northeast: 9 PMs = $2,700  Southeast: 11 PMs = $3,300  KPIs  175 By the Glass accounts (3.5 per PM) (make sure discontinued programs are captured as discontinued in the Portal!).

ROSE MATERIALS Valentine’s Day and Beyond

ROSE materials on Centiv Veuve Clicquot  Recipe Cards

YEAR END BIG WINS

FEBRUARY CONFERENCE CALLS Central Wednesday Feb 12th SE Thursday Feb. 13 th PM West Wednesday Feb 12 th 10:00 AM NE Tuesday Feb 18 th 9:00 AM