1. Logan Ballew David Hill

2.   Total alcohol sales in the U.S. is $59.24 billion  Bourbon is responsible for $3.8 billion in sales  Jack Daniels is the market leader accounting for $1.32 billion in sales (www.insiderlouisville.com)www.insiderlouisville.com Industry Overview

3.   128 SKUs  Around 60 SKUs per retailer.  Smallest Store 48 SKUs (Adams)  Largest Store 72 SKUs (Popatop)  In the stores audited there were 0 private label SKUs  Less SKUs than 2011, more depth.  Assumption = Smaller Stores Audit Overview

4. Prevalent Brands Jack Daniels Jim Beam Evan Williams Maker’s Mark Wild Turkey

5.  Demographics

7.  Main Market  Higher income  Older, generally 55+ (changing)  Not a significant difference in demographics between brands

8.  Category Role  We believe a destination role is appropriate  Goal = Build traffic and be the primary category provider  Purchase cycle average = 30ish days

9.   Total sales, brand loyalty, and brand familiarity drives the high stocking rate for these brands  These 5 dominant brands can be found nearly everywhere . Strength of Leading Competitors BrandStocking Rate Percentage Jack Daniels42% Jim Beam49% Evan Williams40% Makers Mark42% Wild Turkey38%

10.   High gross margins of over 45% on all leading brands  Consistent with a destination role because of higher gross margin and turnover  Higher gross margin = more depth. Gross Margins

11.   There is no PL presence in the stores we audited in the Bourbon category  Our assumption is that PL will continue to lack presence in the Bourbon market because retailers are attracted to the current high gross margins in national brands  Total bourbon sales are hardly affected by the state of the economy  We assume that if private label were introduced, it could target the lower income demographic  We would not suggest retailers start carrying private label because of already high gross margins of national brands. Private Label

12.  Questions?