MARKET PROFILE

1. MARKET PROFILE Revised January, 2009

2. C. Stein Inc. C. Stein Inc. was founded May 14, 1990 when Craig Stein purchased Cascade Distributing located in Vancouver, WA. The company had 11 employees. Stein is the owner of C. Stein Distributing, Inc. in Vancouver, WA, Idaho Distributing in Boise, ID and Nouveaux Distributing Company in Ketchum, ID. C. Stein Inc. has grown from 11 employees to over 350 today. This successful growth is attributed to the following key factors: • Hiring & developing a strong management team. • Providing a healthy working environment with good benefits to employees. • Developing long term profitable relationships & trust with our retailers and supplier partners. • Taking an aggressive approach to acquisitions. • Increasing market share through strong brand growth. • C. Stein, Inc. Acquisition History • 1990 Cascade Distributing Vancouver, WA • 1991 Fort Wine Vancouver/Longview, WA • 1993 Cowlitz Distributing Longview, WA • 1996 Longview Ice/Storage Longview, WA • 1996 R & R Distributing Longview, WA • 1996 Crown Distributing Vancouver, WA • 1996 Golden Dist (portion) Vancouver, WA • 1998 Spirit Distributing Boise, ID • 2000 Standard Dist (portion) Longview, WA • 2000 Clark Cty Dist (portion) Vancouver, WA • 2000 Hayden Beverage (portion) Boise, ID

3. C. Stein Inc. Acquisition history continued • 2002 Hayden Beverage (portion) Boise, ID • 2003 Evergreen Distributing Vancouver, WA • 2005 Trio Wine Company Boise, ID • 2007 Nouveaux Beverage Ketchum, ID • 2007 Hayden Beverage (portion) Boise, ID • 2008 Coors Distributing Company Meridian, ID 17 Acquisitions as of March 31, 2008 • Idaho Distributing Company Profile Idaho Distributing is located at 4719 Market St., in Boise, ID. The sales system is hybrid, using pre-sell, route-sell and tell-sell applications to service each account. Sales representatives are paid a base salary with a bonus of an additional 20% available through the accomplishments of preplanned objectives and goals. Specialized sales staff members call on off premise chain and volume on premise accounts. To maximize our service and sales opportunities, Idaho Distributing provides all major volume accounts a wine/natural beverage sales representative and a beer sales representative. Our sales associates use hand held computers (PDA’s) for maximum efficiency in communicating information and placing orders within our operation system.

4. Idaho Distributing operates in an 170,000 square foot facility, of which 80,000 square feet is temperature controlled warehouse with 13,000 square feet of office space. This facility opened in March, 2008 and has future expansion capabilities. The facility has 21 loading docks, and a walk in cooler with the capacity of 9,000 ½ BBL’s. 25 delivery routes operate 5 days per week. We provide service 7 days per week to our retail customers. In 2005 and 2006 IT systems were upgraded. The main route accounting software is HighJump. UPS Logistics is used for routing optimization. Voice picking with Intermec 700c\Intermec SF751 Bluetooth scanner with wireless capabilities is used by our warehouse teammates. Loads are received utilizing a wireless Intermec 700c system with built-in scanners. DDE software was installed to track inventory by location & code date. A Mobile Broker server along with Intermec 751 notebook handhelds provide us the opportunity to progress into the DEX & ASN arenas. HighJump Power Tools has enhanced our reporting systems and added flexibility to the reporting applications. • Coverage: • 17 1/2 counties, including Canyon, Ada, Elmore, Payette, Gem, Boise, Washington, Adams, Valley, Idaho , Owyhee , Camas, Blaine, Lincoln, Gooding, Jerome, and Twin Falls,( portion to Whitebird) • 650,722 population base and the fastest growing market area in Idaho. • Staff: • Over 175 employees including a sales team of 40 representatives. • Selling Systems: • Pre-sell, route sell and tell sell applications to service specific needs of each account. • Account Base: • On Premise – 444 accounts (of which 36 are Impact accounts) represent 19% of our wine business and 16% of our beer business. Off Premise – 636 accounts (of which 44 are Impact accounts) represent 84% of our wine business and 81% of our beer business. Account Base consists of 100% licensed account coverage for both on & off premise.

5. Key Market Profile: A chain driven market is supported by the following major chains: 44 Off Premise Impact Accounts / 36 On Premise Impact Accounts • Off Premise: • 20 beer sales representatives and 8 wine sales representatives call on these accounts with specific brand portfolios using monthly objectives and monthly incentive bonuses. • Off Premise represents 81% of company beer sales, and 84% of company wine sales. • On Premise: • 5 beer sales and 4 wine sales representatives provide service to these accounts. • Separate brand portfolios with sales, distribution and execution goals are linked to a monthly incentive plan. • On Premise represents 19% of company beer sales and 16% of company wine sales. • Our market is influenced by a significant LDS population (approx. 25%). • Tell Sell: • Lower volume accounts, which represent less than 2% of the companies business, is sold by a tell sell rep. These accounts are visited quarterly to ensure product freshness, POS distribution and new program rollouts.

6. Market Summary - Retail • Market: past, present, & future • Historically the Boise, Idaho market has been dominated by one chain (Albertsons) and several independent outlets. The 1990’s experienced a significant change in the market and the entry of several new chains – Wal Mart – Fred Meyer/Kroger – WINCO. • Success in the market place relies on us as distributors to execute on many levels as the major and independent convenience chains accommodate the growth in our market. In order for mainline and new introductory product market penetration, as a distributor we must exploit all available channels. Points of distribution create additional merchandising opportunities for strong franchise and sales growth. • The general economic outlook through 2010 is for a rebounding and strengthening economy. Consolidation at the retail level would indicate that chain dominance will increase in the retail segment.

7. Market Summary – On Premise • Historically the Boise, Idaho Market has had a strong beer and wine on premise market. A growing population and an advantageous demographic profile has helped fuel this growth. The local economic base has moved from an agricultural resource base to a high tech, retail, and health care base. • Current beer trends show micro business growth (approx. 8 - 10%) continuing in all channels. Keg business on micros also continues to grow. Premium brands remain flat to slightly down. Imports are being hit the hardest due to the local economy trending down 25-30% Lower end products due to current economic trends are showing growth at plus 8-10%. • Current wine trends (approx. 6.5% growth) remain healthy. Luxury brands continue to see healthy growth along with mid priced wines. Sparkling wine sales have slightly increased, less expensive table wines continue to decline. • The general economic outlook through 2010 is a slight increase overall for wine and beer sales. On Premise business may decline due to many restaurants and taverns going out of business. We anticipate a strong rebound and strengthening in 3 to 5 years.

8. Boise Market Demographics Population Growth Boise MSA Annual Growth Rates 1990-1991 - 3.74% 1991-1992 - 3.33% 1992-1993 - 3.87% 1993-1994 - 3.92% 1994-1995 - 4.22% 1995-1996 - 4.17% 1996-1997 - 2.52% 1997-1998 - 1.94% 1998-1999 - 3.10% 1999-2000 - 1.5% (Idaho Economics 2000) Income (Boise MSA) 2002 Per Capita Income Ada County - $34,072 Canyon County - $19,432 Boise MSA - $22,309 National - $30,906 (US Department of Commerce - Bureau of Economic Analysis; Market Statistics 2002) 2007 Estimated Household by Income Boise City -Nampa MSA Total Number of Households – 218,578 Median Household Income - $55,223 Per Capita Income - $26,776 Average Household Income - $71,058 Median Value Owner Occupied Housing - $202,532 Average Value Owner Occupied Housing - $242,277 (Boise Valley Economic Partnership)

9. Positioning and Philosophy • Mission Statement • To be the preferred DSD vendor in the market area through: • Professionalism • Knowledge • Customer Service • Profit Partner • To be the preferred Distributor by suppliers. • Exceed information reporting requirements. • Exceed standards for operational requirements. • Be an employee oriented company. • Benchmark against other distributors and exceed productivity and profitability standards. • Be a good corporate / community citizen with involvement in each local market area. • Business Philosophy • Idaho Distributing approaches business as a goal oriented team. Standards of performance exceed the norm for alcohol beverage distributors. We routinely track and measure performance against these standards. We provide leadership to the market through innovation and the management of technology. • Idaho Distributing views and treats each business relationship with importance and a sense of urgency. We are a proactive company that desires strong partnerships with our suppliers and customers. • Idaho Distributing has ongoing training for all personnel and expects our team to be the most knowledgeable and professional people in the market place. Our training and professional development budget is funded and allocated annually. • Idaho Distributing has a plan of continuous improvement for all information systems and will have in place a best practices program to provide timely and concise information to both suppliers and customers. April of 2002 saw a new hardware/ software package go on line and all terminals were converted to PC multi function systems. • Idaho Distributing is committed to category management as a holistic approach to conduct business. We develop promotional strategies, merchandising plans, pricing strategies and analyses of all pertinent business information.

10. Core Values • Trust: Every relationship must be based on trust. In our environment, this means that we expect and return a level of trust with our employees, suppliers and customers. • Employee Equity – Our employees are our greatest asset and are valued accordingly. Employees are treated with respect and courtesy. They are confident that we will conduct our business ethically. In return, the company demands courtesy, respect and ethical behavior. • Customers – They can trust us to deliver a high quality product, to exceed their expectations for customer service and to respond to all concerns with a sense of urgency. Our customers expect us to conduct business in an ethical manner. • Suppliers – They can trust us to keep our commitments, to accomplish our agreed upon objectives, and to respond with concern and urgency to any issues or questions that arise. • Exceptional Customer Service: • Simply stated, we strive to exceed the expectations of our customers for service within the financial, operational and ethical capabilities of the company. • Professionalism: • Provide industry leadership. • Increase profits for our customers, suppliers and company • Grow the business for all stakeholders. • Present a professional image in our appearance, behavior and facility. • Be a consultant and partner for our customers. • Listen to our business partners and employees. • Always put our customers first, both internal and external.

11. Core Values Continued • Attitude: How we interact with our business partners and our team members is a reflection of our attitude. We strive to develop an attitude that conveys the following: • Enthusiasm - A positive mental attitude. We are proud of our business and of our team. We are excited about the future. This excitement and assurance is vital to our success. • Proactive - Being proactive is more than taking initiative. It is recognizing that we are responsible for our own choices. We celebrate those in our organization that accept responsibility and make things happen. • Confidence & Commitment – We are committed to succeeding. We will succeed if we make a commitment, set goals and execute a plan to accomplish those goals. This knowledge and action creates a confident atmosphere within individuals, teams and the organization. • Pride – We are proud of our accomplishments of our team. Our teammates understand that intelligent effort and hard work equals success. The journey as well as the destination is a source of pride for all teammates. • Synergy – Win-Win. Whether a personal or professional relationship, we seek ways to find win-win solutions that benefit all involved. It is not my way or your way, but a third way that is better, our way. Our way is about solving problems, seizing opportunities and working out differences through creative cooperation. • Strong Work Ethic: Our team has a strong work ethic and knows that without effort there are a few successes.

12. Organizational Chart Craig Stein CEO/Owner CSIBG Rob Schneider CFO/House Council Frank Roberti VP BDM/EBG Darin Hager IT/Purchasing Janet Jacobsen Controller 2 Quality Assurance Managers David Morrison SR VP GM Nouveaux Distributing Sun Valley / Twin Falls Rob Sims Chief Operations Manager Jim Kurtz Director of Sales On Premise Fine Wine John Shumate Director of Retail Wine Sales Randy Piper Director of Beer Sales Wendy Colwell Office Manager Admin Dean Hess Beer Brand Manager Norm Waite Execution Manager/DM Chuck Nicholson Chain Acct Manager Delivery/Merchandiser Supervisors Warehouse Supervisors Scott McMichaels On Premise Mgr. Mike Weavers Beer District Manager Paul Bedegi On Premise Mgr. Rural Lance Withers Beer District Manager Barrel Division 2 On Premise Reps Josh Krattiger Wine District Manager Kevin Flock Draft & Event Mgr 5 Reps 5 Reps 2 Category Analysts Drivers Warehouse 4 Key Acct Reps 5 Reps Merchandisers Tell Sell Sales Relief Sales Merch Idaho Dist. Total Employees Approximately 175 1 Off Premise Key Accts

13. Competition Beer SW Idaho And Surrounding Counties • Thecompetitive landscape • There are currently 6 distributors in the SW Idaho Market. Of these, three are primary distributors and three are secondary / tertiary. The key brands represented are listed on the table to the right. • Estimated market penetration (% accounts called on) follows: • Idaho Distributing 100% • Stein Distributing (AB) 100% • Hayden Beverage 86% • Idaho Wine Merchants 8% – 10% • BRJ 8% – 10% • Moon River 1% • Estimated market share 5/08 YTD Trends • Idaho Distributing 47.7% +1.9% • Stein Distributing (AB) 36.7% -2.0% • Hayden Beverage 14.9% -3.7% • Idaho Wine Merchants 0.2% N/A • RAM Brewpub 0.3% N/A

14. Competition Wine SW Idaho And Surrounding Counties ID Wine Merch. Hayden Distributing Idaho Distributing Click Imports Cline Cellars Constellation Wine US Mondavi WoodBridge Pacific Wine Partnmers Delicato Family Vineyards Diageo Chateau & Estates E & J Gallo Freixenet Gloria Ferrer Jacuzzi Family Vineyards Lion Nathan Marrietta Merryvale Pernod Ricard Seghesio Rodney Strong S. F Wine Exchange Sawtooth Shaw Ross Ste. Michelle Wine Estates Terlato Wines Winebow Vineone Bogle J Lohr Rosenblum Robert Haas BRJ Misc Imports Willamette Moon River Misc. • The competitive landscape • There are currently 5 wine distributors in the SW Idaho Market. Of these two are the primary distributors and three are tertiary. The key brands represented are listed on the table to the right. • Estimated market penetration (% accounts called on) follows: • Idaho Distributing 100% • Hayden Beverage 86% • Idaho Wine Merchants 8% – 10% • BRJ 8% – 10% • Moon River 5% • Estimated market share 05/08 YTD Trends: • Idaho Distributing 44.7% +4.2% • Hayden Beverage 46.6% +6.9% • Idaho Wine Merchants 8.6% +5.0% • BRJ N/A N/A • Moon River N/A N/A • ** C Stein Inc. Beverage Group owns Nouveaux Distributing Company, Ketchum, ID which also covers SE Idaho Low Proof Spirits Jose Cuervo Kaluha TGI Friday’s Gaetano

15. Public Relations • Community Events: • Idaho Distributing has a corporate philosophy of being actively involved in community events. As members of the most local Chambers of Commerce, we participate in and sponsor many events. Special events include those held at the larger venues, including the Idaho Center, Qwest Arena, Les Bois Park, Idaho Center Amphitheater, Boise Contemporary Theater, and Boise State University. We participate in most large theater and art productions and fundraisers, professional rodeos/sporting events and county/state fairs. • Association Memberships: • Idaho Distributingactively participates in numerous organizations which contribute to the strength of the industry. With the beer, wine and natural beverage industry in a constant state of change, the following organizations help us keep abreast in our market: National Beer Wholesalers Association, Wine & Spirits Wholesalers of America, National Association of Beverage Retailers, American Vintners Association, WBWWA, IBWWA, Coors Responsibility, Miller Responsibility and Wine Business. • Strategy & execution • By virtue of how we view our corporate citizen responsibilities, Idaho Distributing is involved in virtually all high profile community events in every market that we conduct business in. We also host several events to educate and inform our customers. • Idaho Distributing plays a significant role in the responsible use of our products. We provide support and information to numerous agencies and groups regarding responsibility initiatives. • Idaho Distributing has assumed a leadership role in legislative issues that could impact our industry.

16. Pricing • Pricing • Posting in the State of Idaho is required by Statute. Price reductions must remain in effect for 6 months from the date of change. Price increases can be made monthly provided there has not been a reduction in the prior 6 months. Changes to suggested pricing must be filed with the State 10 working days prior to month end. New products entering the distribution system may be posted at any time. Tax rates are determined by alcoholic content and product classification. • Policies and Practices • Idaho Distributing assists suppliers in developing a pricing strategy to fit the market and ensure that network pricing is acceptable to other wholesalers and retailers. We also provide, upon written request, detailed monthly pricing surveys for either / or Wine and Beer.

17. Promotion • Chain Account Management • Idaho Distributing routinely completes chain account calls both in and out of our market. We make monthly calls on local headquarters which include Albertsons Intermountain, Winco Foods, Jacksons Foods, and Stinker Convenience. ID Distributing makes bi-monthly calls to Portland Seattle, and Salt Lake City for visits to Fred Meyer/Kroger, Rite Aide, Cost Plus, Costco, Maverick stores and others. • On Premise Promotion • Our commitment to this key market segment is vital to building premium brands within the marketplace. Our approach is to provide our customers with a knowledgeable staff, participate in their success by training and educating their staff and to provide the very best of service. • Marketing Support • Idaho Distributing works with the wholesaler network in Idaho to coordinate programs and pricing strategies to facilitate chain execution. These would include events like Northwest Wine Month for Albertsons, regional sales and display contests for key chains, core wine list development for chains like Jakers and sub jobbing accommodation for smaller distributors to insure product availability for chain programs. • Marketing programs • Idaho Distributing has the staff and facilities to develop in – house POS to support programs.

18. Distribution • Distribution strategy • Our distribution strategy is to place all new products into distribution by appropriate channel within the first 30 days of availability. Idaho Distributing works with suppliers to identify the best and most appropriate channels and target accounts to provide quality distribution. We will track attainment of target accounts on a regular basis. (Based upon mutually agreed frequency) • Channels of distribution • The typical channels of distribution are: • Chain Retail • Independent Retail • Convenience Store Chain • Convenience Store Independent • On Premise Tavern Chain • On Premise Tavern Independent • On Premise Restaurant (Sub Class White Table Cloth Ethnic Foods etc.) • Military • All above channels have a classification that groups by volume as well. • Distribution by channel • Idaho Distributing recommends that all distribution goals be established by Channel and account volume.

19. Category Management Business Development The concept of category management has become a fundamental part of the consumer goods business. Our approach to this important process reflects the core values of Idaho Distributing. We have established a relationship based on credibility and trust with many of our key retail partners. • Strategy • To build sales and profitability for our customers and supplier partners through effective assortment and space allocations. • To encompass all aspects of the category. • To make all projects fact based • To maintain trust and credibility • Have all personnel certified in Advanced Space Planning and Solution Selling by Miller Coors Training and Development • Successes – Current Partners • Albertsons - Beer and Wine • Fred Meyer - Beer and Wine • Rite Aid – Beer and Wine • Wal Mart – Wine Only • Winco – Validator Beer & Wine • Jacksons Food Stores – Validator Beer and Wine • Big Smokes-Developer Beer (No Wine) • Maverik Beer Validator (No Wine) • Ridleys Co Developer / Validator • Pauls Co Developer / Validator

20. Success Metrics • The following are intended to serve as guidelines for measuring and objectively determining performance and achieving success. We operate our business with an annual plan and we invite our suppliers to participate in setting goals and objectives for this annual plan. • First year goals • Index to other brands or market demographics and volume from similar sized markets and market potential • Additional year goals • Performance Index similar to above • Measures of success/failure • Sales Goals – meet or exceed • Distribution Goals - meet or exceed • Promotional Objectives - meet or exceed • Requirements for success • Investment by supplier and distributor in programs and manpower • Meet and exceed communication expectations with Information Required, Method of communication , Frequency and timeliness • Support – Manpower / Supplier time / Promotional expense by distributor and supplier We are passionate about our business, about our commitment to our customers and about our commitment to our supplier partners.

21. Facilities and IT

22. Power Tools(Report examples below)Power Tools is a feature that allows date to be consolidated from large sales database and to be viewed in both macro and micro perspectives. This tool is available to all sales managers and supervisors and is always current through the close of business from the previous day. Information can be viewed by channel, by chain, by group and class down by customer and SKU.

23. General Information Key Contacts