Investor Deck - March 2015

1. Investor Deck - March 2015

2. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
The People
Yao Ming, Founder
Tom Hinde, President and Winemaker

3. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
Yao Ming
Family Reserve
Cabernet Sauvignon
$625/btl
Target Production: 250
cases/year
Yao Ming
Napa Valley
Cabernet Sauvignon
$150/btl
Target Production: 2,000
cases/year
Napa Crest
Napa Valley
Red Blend
$50/btl
Target Production:
10,000 cases/year
The Wines

4. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
The Vineyards
Multiple Napa vineyards under long term contracts
YFW personally supervises farming and harvest

5. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
The Mission
Accomplished:
• Created a Napa Valley luxury wine
brand
• Built distribution in China and USA
• Sold $8 Million of wine in 39 months
Next steps:
• Leverage the celebrity of Yao Ming to
develop direct to consumer platforms
in China and USA
• Build a portfolio of luxury wine brands
to sell to those consumers

6. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
Target Markets
Only 2 markets show
long term growth

7. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
The Opportunity
Chinese market for wine (1.3 billion people)
• Middle class: 310 million people in 2010,
• Expected to rise to 625 million by 2025
2013 total wine consumption: 162 million cases
• Imported wine grew from 6 million to 31
million cases from 2008 to 2013
• Consumption of imported wine is a status
symbol for new Chinese middle class

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Imported Wine in China
France: 15 million cases (48% of imported wine)
USA: 1.4 million cases (4.8% of imported wine)
• Gallo represents 900,000 cases (Carlo Rossi)
• No USA winery has meaningful market share,
and no one except Gallo is trying to get any
• Yao Family Wines intends to be the first
California wine with significant presence in
China

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USA Wine Market
• Largest retail wine market in the world by dollar
value and volume
• 2013: 375.2 million cases sold, 215 million from
California, and 160.2 million from imports and other
states
• Net importer of wine; as a result, California wineries
focus on increasing share in USA, and not on exports
• Exports to China in 2013 from California: $77 million

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Family Reserve Scores
95 – Robert Parker
98 – Wine Enthusiast
Magazine
Napa Valley Scores
90 – Robert Parker
95 – Wine Enthusiast
Magazine
Napa Crest Scores
88 – Robert Parker
91 – Wine Enthusiast
Magazine
Mission 1: The Brands

11. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
Distribution China
Pernod Ricard China
• Largest global drinks company in China (44%
market share in imported spirits)
• 700 full time employees, 500 part time, 59
offices
• 7 Tier 1 Chinese wholesalers cover 6 regions
• Middle class consumers live in top 100 cities

12. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
Distribution USA
Crown Wine Group
• Distribution arm of Jackson Family
Wines
• 12 states: California, Florida, Texas, New
York, Illinois, Massachusetts, Arizona,
Maryland-DC, Colorado, Nevada,
Oregon, Washington
• Covers 50% of US population and 60%
of US wine consumption

13. Confidential and Proprietary Business Information. © 2015 Yao Family Wines. All Rights Reserved.
Direct to Consumer Initiatives
Direct to consumer sales generate 2x the revenue of sales to
distributors. Long term success of luxury wine brands are built on
loyal mailing list subscribers. To build such a list, the Company
plans (with the proceeds) to create:
• A tasting room in Napa
• A tasting salon in Shanghai
• A direct to consumer platform in China
• Marketing initiatives to increase awareness and demand in
China and in the United States