1. January 31, 2011 Presented To: Mike Edison Scott Buehler Alexis Milam Toby Ryan Delaware’s Only Premium Organic Winery! Winery Kennett Pike Greenville, DE

2. The Problem Northern Delaware lacks a premium winery and wine enthusiasts have had to settle for second best! No other nearby winery produces organic wine. 2 wineries in Southern Delaware Nearby Brandywine Valley Wine Trail featuring 8 wineries Southern NJ wine trails

3. Nassau Valley Vineyards Brandywine Valley Wine Trail Cumberland County Wine Trail Cape May Wine Trail Blue Hen Winery Chesapeake Wine Trail

4. The Solution BHW will be the only local producer of organic wine with a focus on sustainable packaging The opening of BHW will also enhance Delaware’s tourism in New Castle County.

5. The Technology Organic and Sustainable All organically grown grapes – no pesticides/toxins  Message to consumers that we support agricultural communities that refuse to pollute soil and water supplies.  Wine enthusiasts believe organic wine varieties are more flavorful because they're made from grapes raised on healthier soil. ECO Series™ bottles used for all of our wines.  Made with greater than 50% recycled material, which reduces consumption of energy for manufacturing and CO2 emissions by 21% when compared to a “classic” wine bottle.

6. Progress to date Recipes vetted Initial investment commitment Brand trademark, website Management team in place Supply chain established Proposed location identified Building requirements and equipment identified

7. Market Growth

8. Based on education, home ownership, age, and median household income Source: US Census Target Regional Market

9. Customers Target Wine Consumers  Greenville area: educated, married, and established in their career  87% are homeowners  Adults aged 35 – 65 (account for 74% of wine consumers)  Women Local Retailers and Restaurants  Promote to “farm to table” restaurants

10. Sales & Marketing Strategy Direct Sales Extensive tasting room  Consumers sample wines Sales No middleman – Charge retail prices for wine Additional Sales Channels Distributors: Estimated @ 10% Sales  NKS Distributors, Inc - retail and wine outlets  Vintage Imports, Inc - restaurants

11. Sales & Marketing Strategy Sales Promotions On-site events  Consumers sample wines Sales Local food and wine festivals = PR Local memberships Advertising Limited Print – locally focused  DE Today Online Ads  DE Today (restaurant issue), Delaware News Journal

12. Partners Delaware Tourism Office

13. Competition Indirect Competition Substitute beverages: beer, spirits, & non-alcoholic beverages Renowned wines of Sonoma Valley, France, Italy, etc Small wineries outside local radius Direct Local Competitors Chaddsford Winery Paradox Winery Kreutz Creek Penns Woods Patone

14. Competition Matrix Paradocx Penns Woods Chadds Ford Kreutz Creek Patone Blue Hen PriceHIGH MID LOW MID Selection2417151210 9 Quality of Wine67855 6 Events64842 7 Tasting Room Experience 56875 7 Organic/ Sustainable ●●●●● ●●●●● ●●●●● ● ● ● ●●●●●●

15. Management Team Toby Ryan – Wine Maker Extraordinaire  BE in Agricultural Engineering from UD (1996), MBA from UD (2011)  12 years experience as Engineer with DuPont  5 years experience with wine making from home  Entrepreneurial experience: manages family wine-making business. Scott Buehler– Business Manager (GM/Cellar Manager)  BE in Chemical Engineering UD(1992), MBA from UD (2011)  10 years experience in manufacturing as Chemical Engineer with DuPont  8 years small business management experience  Amateur winemaker and regular volunteer at local wineries Alexis Milam – Sales Marketing & Tasting Room/Special Events Manager  Certified Sommelier: Advanced Sommelier Certificate from The Court of Master Sommeliers (2002)  Hospitality Management Degree from UD (2000) & MBA (2011)  5 years as Sales/Special Event Manager at Renault Winery

16. Revenue Model

17. Financial Projections Year0123456 Initial Investment $586,000 Sales$0.00$312,169.33$438,947.09$670,054.68$813,887.71$993,594.70$1,236,739.94 COGS$146,820.00$184,060.00$307,285.30$345,633.60$428,964.95$493,340.06$539,054.32 Net Income($186,820.00)$42,528.30$23,124.37$119,582.49$145,735.83$207,040.21$319,375.75 ROA0%7.90%3.73%16.21%17.21%22.28%32.38% ROCE0%7.23%3.92%20.09%23.94%31.63%43.02% ROI0%0.51%1.10%2.85%6.94%24.65%49.43%

18. Financial Projections

19. Milestones What’s Important Next? Renovate winery building Bring on Mike Edison as partner Buy equipment & product inputs Secure licenses & permits Begin wine production

20. Funding Requirements Committed Funding: $150K $50k agreed buy in from 3 partners Requested Funding: $436K Seeking Mike Edison’s partnership 5 acres of land and existing building Use of Funds: $586 K Total Capital Investments: Barn Restoration & Equipment: $400K COGS (Year 0): $96K Including permits and insurance Salaries (Year 0): $75K Marketing: $15K

21. Summary Management team experienced in wine making, bottling, and with extensive operations and marketing backgrounds Blue Hen Winery will generate profits by year 1 Strong growing trends towards local and organic products Large and growing market – healthy market share predictions

22. Kennett Pike Greenville, DE Blue Hen Winery Winery For more information please contact: info@Bluehenwinery.com