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A Data-Driven Winery
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AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AT: https://www.sec.gov/Archives/edgar/data/1782627/000110465920046167/ tm12015813d1_253g2.htm YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
Winc - A Data-Driven Winery
We’re building a portfolio of
brands for the next generation
of wine drinkers.
3
Founders
Geoff McFarlane, CEO, Board Member Brian Smith, COO, President
Hospitality Hospitality
Pizza Republica Aureole Las Vegas
West Bound and Down Brewing Clo Wine Bar NY
Payments Processing Wine
Banctech Loca Linda & Jolie Folle
Advanced Sommelier
Finance & Digital Marketing Wine & Brand
Wine Enthusiast “40 Under 40 “ 2019
Named as one of the 50 Most Innovative Companies
by Fast Company 2019
4
A Leading Digital Winery
Winc’s model consists of significant direct to consumer business, a portfolio
of high growth brands and an expanding wholesale channel.
2019 Cumulative Milestones
Lifetime
National Wholesale
$200 Million in Revenue Brands with large digital 2019
195% CAGR since 2011 $6.8 Million in Revenue
audiences have higher velocity
13.8 Million Bottles Sold in wholesale
Now serving 48 states & over 5000 accounts
Digital
Direct to Consumer
Owning 3.5x ROI
on
3.5 Million Wine Ratings
Digital Advertising spend Since launch in 2015 this channel has grown at
From over
542K Customers 194% CAGR
Winc became a top 75 winery in the US in 4 years producing over 250,000 cases a year
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DtC Customer Metrics are Steadily Improving
At-home consumption is increasing industry-wide.
Avg. Order Value (“AOV”) Customer Lifetime Revenue (LTR)
500
56
375
wth
Gro 52
27%
250
46
44 125
0
2015 2016 2017 2018
.5
1.
2.
3.
4.
5.
5
5
5
5
5
yr
yr
yr
yr
yr
yr
s
s
s
s
s
s
$173 LTV 73% Gross Margin
2019 2019
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Alcohol Is An Historically Recession-Resistant Market
Winc added over 42,200 new members in March.
Avg. Order Value (AOV), Avg. Order Size (AOS), Unique Orders - March 2020 New Activations - Last 12 Months
111% Orders 80% DtC Sales 10.8x Daily Sign Ups 784% New Members
March ’20 v Feb 20 March ’20 v Feb ’20 Increase in Average Daily Sign Increase in Sign Ups March ’19 -
Highest Unique Order Month Ups in March (2402) vs. March ’20
Inception (221)
Wholesale Provides Significant Reach
for Our Flagship Brands
$6.8M
Wholesale Revenue
2019 (10% YoY
Flagship Brands In Wholesale Growth)
194%
Revenue CAGR
2015 - 2019
Found at Premium Retailers Across the Country
4,400
Active Retail &
Restaurant
Accounts
Four flagship brands distributed by PLCB, the largest purchaser of wine in the US
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Strategic Executive Additions To Our Board
Pat DeLong - Former CEO Crimson Wine Laura Joukovksi - CMO Tech Style
Pat’s 30+ years of experience in the fine Laura is the Chief Media Officer at TechStyle
beverage sector make him a notable advisor Fashion Group, a portfolio of digital fashion
for Winc. brands based in Los Angeles.
Crimson Wine Group, Constellation Brands, JustFab, ShoeDazzle, Fabletics, Fabkids and
Robert Mondavi Corporation and Francis Ford Savage X Fenty
Coppola Companies.
Wine/Mergers and Acquisitions Brand/Digital Marketing
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For the past 6 years we have
been building the most
innovative wine company
since prohibition.
10Wine is Ripe for Disruption
Every major consumer category has a digital disruptor at scale.
The US wine market is larger than all of these categories combined with no clear leader until now.
$3Bn Razors $1.4Bn Valuation
$14Bn Mattresses $1.1Bn Valuation
The U.S. wine
market was
$18Bn Skincare $1.2Bn Valuation
valued at over
$70Bn in 2018.
$27Bn Luggage $1.4Bn Valuation
11The Largest Wine Companies Don’t Understand DTC
Traditional portfolios have been very successful in optimizing around shelf space instead of the actual customer.
Increasing online orders
Declines in store foot traffic and market stagnation Winc is becoming a clear partner.
2/3rds of all retail sales driven by top 4 wine producers.
Shelf Focus Consumer Focus
Est. 1945 Est. 1933 Est. 2011 Est. 1981 Est. 2012
Merger from Accolade and
Fosters (Est 1800’s)
Analog Digital
12Direct to Consumer is a Massive Market Opportunity
DtC is $6Bn market opportunity Winc is positioned to capture significant
in 2018 and growing quickly. market share in the fastest growing
With no clear leader… segment in wine. (12%)
$3,500,000,000 $3,003,318,112
11.6%
300,400,000,000%
$2,800,000,000 15.5%
270,000,000,000% $6Bn DtC Wine
18.5%
240,000,000,000%
$2,100,000,000 8.1%
15.5%
190,000,000,000%
200,000,000,000%
7.5%
170,000,000,000%
$1,400,000,000 12.5%
130,000,000,000%
9.9%
150,000,000,000%
$3.1Bn Shipments
$700,000,000
$2.9Bn Tasting Room Pick Up
$0
2011 2012 2013 2014 2015 2016 2017 2018
DtC Wine Shipments
13A Unique Opportunity to Acquire and Scale Brands
Winc’s digital expertise, operational platform and omni-channel sales model creates
opportunities to acquire brands to rapidly accelerate growth and enterprise value creation.
Digital Expertise to Scale Improve Scale
Direct to Consumer Operations Wholesale
“Successful wineries 10 years from now will be those that adapted to a
different consumer with different values — a customer who uses the internet
in increasingly complex and interactive ways.”
– Silicon Valley Bank
14Acquisition Landscape
Significant pipeline with 1,600 small wineries (5,000-49,999 case) currently
shipping DtC.
Market dynamics create opportunities for favorable valuations and structure on
future acquisitions
Market Opportunity Acquisition Criteria
- No succession plans for current ownership - High growth brands $10-20mm in Revenue
- Limited resources for DtC and wholesale - Cash flow positive
growth
- Winc platform synergies of 1mm+
- Deals are too small for larger strategics with
wholesale only capabilities - Ability to scale existing DtC/E-commerce
- No clear path towards liquidity or exit - Complimentary wholesale distribution and
account base
- Winc portfolio fitStrategic Roadmap
$175
$145
$114 Projected Winc Revenue
$84
Assumes strategic acquisition similarly positioned wineries.
$54
Goal to be profitable in 2021
$23
$0
-$7
2019 2020 2021 2022 2023
Revenue EBITDA
Acquisition Acquisition Acquisition Acquisition
Series D IPO
#1 #2 #3 #4
2019 2020 2021 2022 2023
$35.5M $49.9M $74.8M $101M $143M
Revenue Revenue Revenue Revenue Revenue
These statements reflect management’s current views based on information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-
looking statements as they are meant for illustrative purposes and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made. Moreover, no person nor any other person or entity assumes responsibility
for the accuracy and completeness of forward-looking statements, and is under no duty to update any such statements to conform them to actual results.Alcohol Brands Achieve High Revenue Multiples
Target Brand Acquirer Sale Price Revenue Multiple
Meiomi Constellation $315M 4.8x
Premium Wine
The Prisoner Constellation $285M 6.0x
Lagunitas Heineken $1B 5.0x
Craft Beer
Ballast Point Constellation $1B 8.7x
Patron Tequila Bacardi $5.1B 7.5x
Spirits
Casamigos Tequila Diageo $1B 20x
This slide reflects management’s current views with respect to future events based on information currently available and is subject to risks and uncertainties.
This slide is meant for illustrative purposes and does not represent guarantees of future results, levels of activity, performance, or achievements.The future of Wine
We are a digitally-driven, omni-channel winery with scale
Goals by 2023
Top 25 Winery Market leader $6B $145M in annual
4 Acquisitions
in the $70Bn Market DtC Market revenue
These statements reflect management’s current views based on information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking
statements as they are meant for illustrative purposes and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made. Moreover, no person nor any other person or entity assumes responsibility for the accuracy and
completeness of forward-looking statements, and is under no duty to update any such statements to conform them to actual results.
18Join Us on Our Journey
VC Backed & Later Stage
Proven Concept & Market Demand
We’re Growing: New Brands & Acquisitions $999 Minimum Investment
Diversifying Your Investment & Potential $1.41 Share Price
Returns
$110 Pre-money Valuation
Recession-resistant
For more information
or to invest
WincShares.com
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