1 Air Water Just Got More Exciting

2 Concept / Positioning

3 Flavored Vodka Water - A New Category Citrus: Flavored Water: Pure Water Carbonated: Sparkling Natural Flavor: All Natural 4% alc/vol: Moderate Alcohol 95 cal: Low Calorie

4 Intersection of 2 Major Trends Water ($11bn US market) Overall bottled water market large and growing Premium segment well established Vodka ($8bn US market) Vodka leads all spirits in share (34%) and growth (6% CAGR) (1) Large premium segment Flavored Vodka (20% of Vodka) growth leader (13% CAGR) (1) (1) U.S. market data. CAGR for

5 Positioning: “Live Smart, Drink Smart” Simple: Water, alcohol, flavors (citrus, berry, club) Low calorie, low carbs, 4% alcohol Only natural ingredients Clean taste, clean odor, clean package Refreshing alternative to beer, wine and cocktails Perfectly suited for mixology trend Cans easy to use, broaden venues / locations Bottles launching in 2013

6 Target Consumers Broad target market: post-college, meaningful disposable income Interested in healthy, active lifestyle Brand conscious High female proportion

7 Huge Market Opportunity Refreshing alternative to currently available products Consumers switching from: ―Beer to more trendy drinks ―Mixed spirits ―Wine (esp. non-meal) ―Non-alcoholic drinks, incl. water Wine $30Bn Spirits $22Bn Bottled Water $11Bn Market Sizes Light Beer $23Bn Other $35Bn Beer $58Bn

8 Distribution Broad distribution through all channels: Off-premise: ―Big box retailers ―General supermarkets ―Organic supermarkets ―Convenience stores ―Independents On-premise: ―Bars / lounges ―Clubs / dance venues ―Stadiums ―Airlines

9 Pricing Premium pricing relative to beer consistent with upscale, high quality product Large female demographic less price sensitive

10 Execution

11 Sales Experienced sales force launched multiple products nationally across all channels 3-tier distribution system for alcoholic beverages requires unique skill-set ―Both wholesalers and retailers important ―Personal relationships critical Strong, long-standing, relationships with: ―Distributors ―Retailers –National / regional / local grocery –Big box –Organic grocery –Convenience / independents –Specialty retailers / airlines

Off-premise In-store displays Sampling POS Ongoing support from local sales team Off-premise In-store displays Sampling POS Ongoing support from local sales team On-premise Drink specials POS “Air Raid” promotions On-premise Drink specials POS “Air Raid” promotions Print media Vice Regional publications Print media Vice Regional publications 12 Traditional Grassroots Marketing Predominantly Grassroots, Viral Marketing to Build Long-Lasting Loyalty

13 Special Events Air Jet Pack Sports events (e.g. Baseball, America’s Cup) Summer festivals Special appearances National PR Launch Parties Electronic Dance Music (EDM) events of approx. 2,000 people EDM events in Los Angeles, Portland, Las Vegas, Seattle and San Francisco Mobile VideoTruck Supports on- and off- premise launch events

14 Social Media Facebook 11k+ likes on facebook, ~180 new likes per day Highly engaged community Positive product feedback Supports new package / channel launches Twitter 400+ followers on twitter Updates on current events Instagram 600+ consumer uploads

15 Recent Press / Media Coverage “No longer will you have to guzzle down beverages that leave a lingering taste in your mouth as Air tastes just like water.” “A new alcoholic drink, Air, Alcohol Inspired Refresher, is being touted as vodka-like. It's nearly completely tasteless, odorless and colorless.” “Air sounds much more interesting and enjoyable than a Mike’s” “Are you a vodka/soda guy (or gal) too impatient to mix a simple adult beverage?... What you need to know is that a new beverage is about to come on the market, and it will make your life a helluva lot easier in certain respects.” “Few new products have had the good luck to be launched on such an historic occasion as a Big League perfect game. That may be the indicator of a charmed existence for Air.” Air…“That's the brand name for the cutting edge of the alcoholic beverage market: carbonated water infused with alcohol and refreshing bubbles…” “Every now and again, something comes across our desks that just seems... suspicious. Because of the tremendous material upside to all our lives if these claims pan out, we …investigate…..We… cracked open the can. So far, so bubbly. No alcohol smell. The taste: like Calistoga or Perrier, with a kick.” “Best of all, it’s only 95 calories.”

16 Traction To Date Product launch: 2H May 2012 Initial market: Southern California. Current shelf presence: ―Whole Foods ―Albertsons ―Ralphs ―7-Elevens ―Walmart ―Various leading independents and key on-premise Highly positive feedback from store managers and chain buyers Roll-out in other markets underway: ―Northern California, Nevada, Arizona, Washington, Oregon, Idaho Inbound requests for national launch: 7-Eleven, Walmart, SuperValue 7,000+ cases sold to date ―Fastest product launch in company history Rapid sales growth with virtually no advertising spend ―July-Aug: 100% m-o-m same store growth at Whole Foods and Albertsons

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