WARWICK - a road mapWARWICK - a road map

where is Warwick now?where is Warwick now?

highly successful family-run wine estateestablished super-premium brand showing strong annual sales growthone of the most-visited wineries in South Africayoung & dynamic management committed to growth

why is Warwick successful?why is Warwick successful?

three pillars support the brand:

1. quality product2. marketing3. sales

take one away and it all falls down

qualityquality

quality is at the heart of our businesswe aim to over-deliver at every levelwe have world-class ambitionswe focus on quality not quantityawards

marketingmarketing

“There is no point in putting wine on the shelf if you do not have the tools

to pull it off the shelf”

marketingmarketing

Key marketing drivers:

the familyquality stories behind the wines strategically focused visionour service

Marketing spendMarketing spend

salessales

salessales

“There is no point doing all the marketing in the first place if your wine is not on the

shelf to sell”

sales growthsales growth

three year sales volume trendthree year sales volume trend

three year revenue trendthree year revenue trend

product positioningproduct positioning

‘Professor Black’ Sauvignon Blanc

Chardonnay

Trilogy

Three Cape Ladies

‘Old Bush Vines’ Pinotage

‘The First Lady’ Cabernet Sauvignon

Specialised retail & on-con

Mainstream retail & on-con

Grocers & on-con chains

sales strategy by brandsales strategy by brand

The First Lady

• Sales are very good & growing• Risk of over-emphasis & cannibalisation of portfolio

The plan

• Focus on quality• Maintain RRP• Reduce marketing spend• Focus on grocers & on-con chains

‘Professor Black’ Sauvignon Blanc

• Sales are very good & growing• Quality is very good & improving

The plan

• No price increase to maintain sub R100 price-point• Focus on style• Increase marketing spend• Focus on on-con

‘Old Bush Vines’ Pinotage

• Sales are flat• Quality is very good & improving

The plan

• No price increase for 2011• Positioning further away from Three Cape Ladies• Focus on style• Increase marketing spend• Focus on retail & on-con

Chardonnay: • Sales are declining• Quality is very good & improving

The plan

• Greater focus from Wineworx/Vinimark• Improved Warwick focus on luxury positioning• Upgraded packaging & marketing• Increase marketing spend• Focus on on-con & specialised retail

chardonnay price-pointschardonnay price-points

Three Cape Ladies:

• Sales are growing steadily• Brand has gained excellent traction• Quality is excellent & improving

The plan

• Increase sales volumes• Positioned further away from First Lady• Focus on creating Cape Blend category on wine-lists• Significant marketing spend• Focus on retail & on-con

Cabernet Franc

• New entry to portfolio• Quality is very good & improving• Only Cabernet Franc in Wineworx/Vinimark portfolio• Warwick had the 1st varietal Cab Franc in South Africa

The plan

• Tele-sales focus• Line-priced with Trilogy• Any restaurant that is serious about wine should carry this• Focus on specialised retail & on-con

Objective: Own the category again

Trilogy:  • Volume growth flat• Revenue growth continues• Considered to be an SA icon - Warwick’s key driver• Quality is excellent & improving

The plan

• Listing in any restaurant that is serious about wine is expected• Significant ongoing marketing spend• Upgraded packaging in 2011• On-con & specialised retail focus with solid back up & staff training

strategy for 2011strategy for 2011

strategy for 2011strategy for 2011

continue to over-deliver on all price-points

strategy for 2011strategy for 2011

continue to over-deliver on all price-points increased visible marketing spend

strategy for 2011strategy for 2011

continue to over-deliver on all price-points increased visible marketing spendcontinued sales growth across all lines

strategy for 2011strategy for 2011

continue to over-deliver on all price-points increased visible marketing spendcontinued sales growth across all lines focus on ‘high-end’ positioning

strategy for 2011strategy for 2011

continue to over-deliver on all price-points increased visible marketing spendcontinued sales growth across all lines focus on ‘high-end’ positioningensure synergy between sales & marketing plans

strategy for 2011strategy for 2011

continue to over-deliver on all price-points increased visible marketing spendcontinued sales growth across all lines focus on ‘high-end’ positioningensure synergy between sales & marketing planscontinued confidence in the Warwick brand

what you can expect from uswhat you can expect from us

A commitment to:

market the brand to facilitate sales growth play an active role with your team in promoting sales make world-class wine that people enjoy drinking work with management to solve any issues quickly always be open to new ideas and fresh thinking

what we expect from youwhat we expect from you

A commitment to:

be involved in the continued building of brand Warwick keep your foot on the accelerator understand our marketing strategy & sales focus respect and underpin the integrity of the brand have some fun!!

thank you for all the hard workthank you for all the hard work