fender rockstar wine - d u n n investor presentation

The Investment Opportunity

• $2 Million Initial Investment + Operating Line Of Credit• Long-term License Agreements with Iconic American Brands• Our People• Unique Brand Platform• Digital eCommerce Distribution• Branded Online Media Properties

FENDER Lifestyle 2

FENDER Lifestyle 3

Major Houses of Brands

FENDER Lifestyle 4

House of Luxury Lifestyle Brands

FENDER Lifestyle 5

The Business Model

• DUNN will be a Lifestyle House of Brands and Curators of that specific lifestyle for our brand loyalists

• Deep Market Insights• Brand ‘Intellectual Property’ Assets (Licenses)• Unique Design-Driven Product Development• Complete Integrated Marketing and Promotion• Branded Distribution Channels Established• Replicate Brand Model Across Business Units• Create Online Lifestyle Communities (eCommerce)

Fender

FENDER Lifestyle 7

• Fender is an iconic American brand• Fender Musical Instrument Corp is currently the No. 1 seller of

electric, acoustic and bass guitars in the world• Fender is the leading global music lifestyle and instruments

company globally• Fender = Rock & Roll Music Lifestyle + more• Fender Artists are some of the world’s most recognized rock,

country western, jazz and blues guitar heroes and legends.

The Fender Lifestyle

FENDER Lifestyle 9

Fender Wine | Marketing & Sales

• “Lifestyle Brand” Defined• The Wine Industry• Target Markets• Ancillary Branded Products• Distribution Plan• Brand eCommerce Website• Online Digital Media Properties

FENDER Lifestyle 10

FENDER Lifestyle 11

Fender Wine | First Brand Launch

‘Rockstar’ Signature Series

-Very low volume (covetable)

-Extraordinarily high-quality (collectible)

-Ultra-premium wines (costly = profitable)

• Digital Marketing and Technology• Design, Creative, Advertising and PR• Wine Industry Professionals

FENDER Lifestyle 12

Fender Wine | Our Partners

• Letter Of Intent from Fender• Letter Of Intent from EMI | Blue Note Records

– in process• Letters Of Intent from Wineries & Winemakers

– in process

Milestones Achieved 13

Milestones Achieved

Michael DunnFounder, Interim CEO, CMO, CCO and Dealmaker

Tom AdamskiBoard of Directors, ConsultantAnd CEO of LEVEL Studios

Andy ArmaninoBoard of Directors, Consultant and CEO OF Armanino McKenna CPA

Jim ClendenenWine Industry Consultant, Winemaker and Advisory Board Member

John StipicevichWine Industry Consultant, Regional Sales Manager

Jeff TolleFinancial Consultant,Interim CIO

DUNN Team 14

D U N N Team

Projections (Fender Wine)

Projections 15

INCOME STATEMENTYear 1$ Total

Year 2$ Total

Year 3$ Total

Year 4$ Total

Year 5$ Total

Product Sales 3,401,068 6,608,409 9,958,736 12,785,835 15,739,626

Cost of Goods Sold 550,128 1,052,120 1,560,988 1,973,584 2,393,057

Gross Margin 2,850,940 5,556,289 8,397,747 10,812,250 13,346,570

  84% 84% 84% 85% 85%

Total Operating Expenses 2,282,631 3,080,003 3,749,471 4,337,342 4,951,817

  67% 47% 38% 34% 31%

Operating Margin/EBITDA 568,310 2,476,287 4,648,276 6,474,909 8,394,752

  17% 37% 47% 51% 53%

Other (Income) Expenses 290,993 691,108 1,172,232 1,627,014 2,106,970

  9% 10% 12% 13% 13%

Net Income (Loss) 277,317 1,785,179 3,476,044 4,847,895 6,287,782

  8% 27% 35% 38% 40%

EMI | BLUE NOTE Lifestyle 16

The Blue Note Lifestyle

• EMI is one of the world’s leading music companies• Artists include Frank Sinatra, The Beatles, Beach Boys, Pink Floyd,

Coldplay, Lady Antebellum, Norah Jones• Owns recording studios Abbey Road in London and Capitol Studios

in Los Angeles• Owner of 14 record labels, including Blue Note

• Blue Note Records is an iconic jazz label• President - Don Was, famed producer for 20+ years• Blue Note is also known for their striking and unusual album cover

designs

EMI | Blue Note

EMI | BLUE NOTE Lifestyle 17

EMI | BLUE NOTE Lifestyle 18

Investment Summary 19

Investment Summary

•DUNN Brand Company is seeking investment to launch Fender Wine in

2012

•Full Round $2,000,000 Convertible Loan @ 10% interest

or

•40% equity stake at end of 5 year term

•Estimated TV in Y5 (Fender Wine Only) $60M

•ROI 12X

Use of Funds 20

Use of Funds

Use of Funds $

Advertising/Marketing 684,698

Payroll 318,051

Rent 27,450

Professional Services 38,000

Travel & Entertainment 39,000

Miscellaneous 48,600

G&A Startup 117,000

Fixed Asset Purchases 37,400

Inventory Purchases (Month 6) 550,128

Cash Reserve 139,673

TOTAL $ 2,000,000

Michael DunnD U N N Brand CompanyP 888.224.0304 C 415.828.6265michael@dunnbrand.com

Contact 21

Contact

Jeff TolleD U N N Brand CompanyP 775.434.8080 C 805.550.4673jeff@dunnbrand.com

Thank You