JOHN ECCLES SARAH NOLAND JEFF WATSON GIN!

Overview The supplier is in control Found no private label Gin Products varied by size 130 total SKU’s

StoresFall ‘10 SKU’s Fall ‘11 SKU’s Macadoodle’s36 (MO)57 (AR) Sam’s Club914 Crossover Liquor 5969 Dickson Street Liquor 2938 Friendly Liquor 1432 Weddington Liquor 2942 Comparison of audited stores Fall ‘10 and Fall ‘11 Macadoodle’s Sam’s Club in Fayetteville, AR Crossover Liquor in Fayetteville, AR Dickson Street Liquor in Fayetteville, AR Friendly Liquor in Fayetteville, AR Weddington Liquor in Fayetteville, AR

Importance of Depth: Consistent SKU’s BrandVarietySize (mL) BeefeaterDry Gin750, 1750 BombayLondon Dry750 BombaySapphire750, 1000, 1750 GilbeysStraight Gin200, 375, Gordon'sLondon Dry750, 1750 New AmsterdamStraight Gin750, 1750 Seagram'sExtra Dry200, 375, 750, 1750 Seagram'sLime Twisted750 TanquerayLondon Dry200, 375, 750, 1000, 1750 TanquerayRangpur750

Importance of Depth: Demographics BEEFEATER BOMBAY SAPPHIRE SEAGRAM'S EXTRA DRYTANQUERAY 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 SIZE - 2 MEM SIZE MEM SIZE - 5+ MEM COSMOPOLITAN CENTERS 54.2NA94.7NA93.6NA276.0NA INDEPENDENT SINGLES 35.1NA85.2NA160.5NA169.8NA SENIOR SINGLES 252.6NA26.4NA94.3NA171.0NA ESTABLISHED COUPLES 13.6NA350.0NA109.7NA154.3NA EMPTY NEST COUPLES 178.9NA80.7NA210.4NA117.7NA SENIOR COUPLES 563.9NA57.7NA79.7NA61.2NA RACE - AFRICAN AMER RACE - ASIAN ETH - HISPANIC

Importance of Depth: Role Brand ITEM $ (000)DOLLAR SHARE ITEM PENETRATION BEEFEATER - GINTOTAL U.S. 53, % BOMBAY SAPPHIRE - GINTOTAL U.S. 39, % SEAGRAM'S EXTRA DRY - GINTOTAL U.S. 45, % TANQUERAY - GINTOTAL U.S. 52, % Role: Maintain/Grow Sales $: $291,739, Shows high gross margins and moderate(growing) sales revenue $s Increasing in category depth and receiving more display space

Importance of Depth: Facing by Supplier MFR SAMS LIQUOR Fayetteville Facings WEDDINGTO N LIQUOR Fayetteville Facings M Store Springdale Facings Majestic Liqour Fort Worth Texas Facings TONY'S IN SHREVEPOR T LOUISIANA Facings Beefeater Distilleries % of Total Sum12.1%4.8%5.6%6.3%8.2% % of Total N14.3%4.8%8.8%8.1%9.8% N22535 Bombay Spirits Company % of Total Sum12.1%7.1%12.5%14.3%12.3% % of Total N14.3%7.1%8.8%13.5%15.7% N23558 Seagram Company Ltd. % of Total Sum9.1%19.0%18.8%14.3%20.5% % of Total N7.1%19.0%19.3%16.2%11.8% N Tanqueray Gordon & Co. % of Total Sum21.2%16.7%15.0%17.5%9.6% % of Total N21.4%16.7%14.0%16.2%11.8% N37866 William Grant & Sons Ltd. % of Total Sum3.0%2.4%3.8%6.3%1.4% % of Total N7.1%2.4%3.5%5.4%2.0% N11221

Importance of Depth: Gross Margin by Supplier MFR Sams Liquor Fayetteville %GM Weddington Liquor Fayetteville %GM Macadoodle's Springdale %GM Majestic Liqour Fort Worth Texas %GM Tony's Shreveport, LA %GM Beefeater Distilleries % of Total Sum 10.6%3.7%7.5%7.1%7.5% % of Total N14.3%4.8%8.8%8.1%9.8% N22535 Bombay Spirits Company % of Total Sum 12.2%6.7%8.0%12.0%14.3% % of Total N14.3%7.1%8.8%13.5%15.7% N23558 Seagram Company Ltd. % of Total Sum 8.0%20.2%21.1%17.0%13.0% % of Total N7.1%19.0%19.3%16.2%11.8% N Tanqueray Gordon & Co. % of Total Sum 23.1%18.4%14.9%17.9%12.6% % of Total N21.4%16.7%14.0%16.2%11.8% N37866 William Grant & Sons Ltd. % of Total Sum 8.5%2.2%4.0%5.9%2.2% % of Total N7.1%2.4%3.5%5.4%2.0% N11221

Importance of Depth: Stocking Rate 4 Brands were found at all 15 stores: Beefeater, Bombay, Seagram’s, and Tanqueray Seagram’s had a low stocking rate due to its wide assortment of unique SKU’s BrandStocking Rate Beefeater73% Bombay59% Seagram's35% Tanqueray50%

Dominant Brands Estimated GM% Beefeater:35-55% Bombay:41-60% Seagram's:55-68% Tanqueray:51-75%

Importance of Depth: Private Label We found no Private Label Gin products. WHY NOT? 1. Demographics 2. Economy 3. Structure of Supply 4. Perceived Quality

Importance of Depth: Recommendations HI-WAY Liquor 408 W. Thompson St., Springdale AR Recommendation  Located in high traffic area  Carries many lower margin products  Increasing the stocking and facings of higher margin products such as Tanqueray SKU’s

Questions?