UNDERGROUND Wine Marketing March 2008

BOS 2 Underground Wine Concierge services 1)Insider Access to highly-sought-after ‘Big Name’ wines

BOS 3 Underground Wine Concierge services 2 ) Insider scoop on the finest undiscovered (a.k.a. Underground) wines before the critics and collectors drive prices up and allocations down!

BOS 4 Underground Wine Concierge services

BOS 5 Underground Featured Wines Kistler $100 Textbook $50 Ladera $39 Colgin $429

BOS 6 Underground Thir$ty Collector Clients include… Personal finance manager of #1 richest man in world Co-founder of the #1 website Heir to the original car manufacturer Proprietor of #1 rated Napa ‘Cult’ Cabernet Editor of Wine Spectator magazine MANY renowned doctors and financial investors Plus a random list of personalities including Robert Redford, Peirce Brossnan, Ben Kingsley, Renee Russo, Danica Patrick, Sean Hannity, and Alice Waters

BOS 7 Underground Agenda 1. Porthos Story: ‘On a Mission’ 2. Marketing Insights: ‘Reaching the Rich’ 3. An ‘Underground’ Perspective: Secret marketing tips Personal favorite TOP 5 Wines TOP 5 Restaurant Wine Tips + Wine Trivia Contest. Prize = Tasting!

BOS 8 Underground TOPLINE – Success? 1.Our Mission: Personal Relationships! 2.Personalized to each client (vs. me pontificating!) 3. “Kevin Bacons” (Underground offline)

BOS 9 Underground Porthos Story Thinking in Flavors Noble roots!?! Y2K Goal: Drink the finest wine and make $$$!

BOS 10 Underground Porthos Story WINE INSIDER Newsletters ‘ Boot Strap’ Business Launch: Friends and Family (in Tx.) Dear Friend of Porthos, Silver Oak will release the historical millennium vintage of their premier Napa Estate Cabernet on January 29. We have negotiated an exclusive opportunity for you to purchase up to one case of this highly sought after wine on a pre-release basis NOW! Order today and we will ship your wine next week BEFORE it is released at Silver Oak's Napa winery. Silver Oak Napa is the #1 Collector wine in America and, the 2000 Napa Valley Cabernet Sauvignon is Silver Oak’s first “Bordeaux-style” blend of 79% Cabernet Sauvignon, 11% Merlot, 8% Cabernet Franc, and 2% Petit Verdot (Tasting Notes below). DON'T MISS this rare opportunity to add 12 bottles of this prized wine to your collection and take advantage of FREE SHIPPING on all full case orders of Silver Oak while our limited allocation lasts. We WILL sell out so please place your order immediately to guarantee availability. Silver Oak 2000 Cabernet Sauvignon, Napa Valley - ($99) Winemaker Daniel Baron: “An exceptionally long growing season helped make our 2000 vintage one of the most complex and memorable wines we have produced. Extra time on the vine proved extremely beneficial for the wine, which was aged in 100% new American oak barrels for approximately 25 months. Classic Cabernet Sauvignon with a dark, ruby-red color and an exquisite nose of cassis, violets, roasting coffee, chocolate, vanilla and cloves. It has a rich, balanced mouth feel dripping with ripe berries and chocolate. Medium tannins are well integrated into the long finish. It will continue to improve to 2020 given proper cellaring.”

BOS 11 Underground Porthos History MISSION: Long Term Relationships! “….Wine that gladdens the heart of Man.” - Psalm 104 Team Philosophy / Culture Team hiring criteria – Napa Experts Client implication$ = “No Sour Grapes” Be Careful what you ‘promise’!

BOS 12 Underground Porthos History Long Term Relationships vs. Short Term Profit$ BENEFITS: Team loyalty Client Friendships = letters, photos, villas, birthdays Word of Mouth ‘Secret Shopper’ = New Partnership$! Winery Partnerships = loyalty + allocations

BOS 13 Underground 2. Marketing Insights ‘Reaching the Rich!’ – Niche Marketing CLIENT ACQUISITION: 1)Word of Mouth + rewards & gifts 2) Partnerships 3) Keyword Advertising 4) Leveraging P.R.

BOS 14 Underground Marketing Insights – P.R. An intoxicating investment By Sandra Block, USA TODAY July, 22, 2004 ….” Not long ago, Hal Oates, co-founder of online wine retailer Porthos.com, recommended that some regular clients try Paloma Merlot, a little-known wine made by a husband-and-wife team in California's Napa Valley. It was selling for $45. Two months later, Wine Spectator gave the Merlot its "Wine of the Year" award. These days, the wine is selling for $145 and up, Oates says.”

BOS 15 Underground Marketing Insights “Lifestyles of the Rich & Famous” Unfamiliar World = intimidating (think ‘rich’!) Irrational $pending! ‘Hot Wheels’ for Adults!

BOS 16 Underground Marketing Insights “KISSING FROGS” Wasting time but not too much $$$ “Really good exposure for you”….vs. actual SALES Busy vs. Profitable!?! Celebrity Wine Tasting scorecards = Fun but no Sales

BOS 17 Underground Marketing Insights Celebrity Wine Tasting = Fun but no Sales

BOS 18 Underground Marketing Insights “All Things to All People?” …or brand ‘ubiquity’ vs. reality! International vs. Napa Under $30 bottles vs. Over $100 - All that to say…………………

BOS 19 Underground Marketing Insights Must OWN One Area of Expertise!!! – what’s yours? Core Target group / niche Aspirational marketing – positioning: appeals to all! 21 year old Models……. “Napa’s Best $39 Cabernet!”

BOS 20 Underground Marketing Insights THE WINE INSIDERS = a positioning that is… 1)Important to our target 2)We can deliver on this promise!

BOS 21 Underground Marketing Insights “I’ve Got what YOU Want!” Leverage resources that Target Values most! Our “resources:” -Experienced/skilled team -Taste 5,000 wines -Honest Opinions -Time and ‘Insider’ connections -Hard work (10 a.m., 200 in 3 hours)

BOS 22 Underground Marketing Insights PATIENCE PAYS OFF “Rich” in experiences/ wine THE WINE INSIDERS – Podcasting No You Tube miracle (yet!) Credibility Vendor relations – allocations & egos! $ales? …..’not so much’ (yet)!

BOS 23 Underground Marketing Insights MY LESSONS LEARNED as an Entrepreneur 1)Do what you LOVE in case no $$$ 2)BEWARE if changing industry! - 2 x time & money investment needed

BOS 24 Underground Collector Wines : An ‘Underground’ Perspective 2. Insider scoop! Personal Top 5 Undiscovered Napa Wines Alban Viognier Palmaz Cabernet Ladera Cabernet The Prisoner Zinfandel Hestan Cabernet

BOS 25 Underground Collector Wines : An ‘Underground’ Perspective 2. My Wine Insider scoop! TOP 5 Restaurant Wines (wine list) * Rombauer Chardonnay Swanson Merlot Duckhorn Merlot Caymus Cabernet Far Niente Chardonnay or Cabernet ‘undervalued’ = Zinfandel, Syrah, Aussie Shiraz

BOS 26 Underground Collector Wines : An ‘Underground’ Perspective 2. My Wine Insider scoop! TOP 5 Restaurant Wines to AVOID [no names] 2000 Vintage Napa Cabernet 2005 Vintage Pinot Noir from California ‘overpriced’ = Chardonnay and Cabernet ‘Beware’ = cheap Pinot Noir (wimpy)