U-BrewClean, easy, stress free brewing experience

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The Opportunity

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U-Brew is a store for wine and beer kits- Retail store operation with wine and beer kit supplies- Facilities to manage the wine making experience in-house

- Keeps the stress and mess from your house- All of the enjoyment, none of the mess!

3 Easy Steps1) Customer selects kit

- Knowledgeable staff2) Customer creates their kit following instructions

- Legally required- U-Brew staff assistance as required- All storage, monitoring, testing, racking completed in-store

3) Customer completes their kit with the bottling process.- We provide facilities, corks, caps, labels- Advanced equipment, great advice

The Market- Saskatoon and surrounding area (243,000)- Men and women aged 30 – 55 (90,000 – 37%)- Need to sell to 1 out of every 43

Why?- Old enough to understand value vs simple cost- Mature enough to be able to plan in advance (weddings, special

occasions, etc)- Capable/interested in pre-purchase of 30 bottles of wine – not just run to

the store prior to a social event- Likely have family / activities which restricts time available to monitor and

maintain kits

- Enjoy social drinking- Enjoy the experience of making wine as well as saving a few dollars

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The Revenue Model

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Average Purchase• Average per-kit selling price: $75.00• Expected per-brew selling price: $75.00Average purchase for analysis: $150.00

Base Case Assumption for analysis: 6 Customer / day

Average 6 Week Window: 216 kits on premise (capacity for 300)

Expected Annual Sales: 2160 total

One Year Profit: $45KFive Year Profit: $416KNet Payback: $844K (30% ROI, $75K initial investment)IRR: 125.6% (non leveraged)ERR: 44.2% (no dividends in model)

The Entrepeneur

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ManagementOwner/operator: Cary Peppard- 20 years business experience- 15+ years management role- Currently Director-level role in multi-provincial 80M IT company- Created and managed operational and capital budgets

Passion- Been making wine kits for 10+ years and love it!- Feels good to save money- Fun experience you can share with a spouse, friends- This business relieves the customer of the stressful part (kids/pets, lack of

space, fluctuating temperatures) and makes the process enjoyable

The Competition

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Retail Store Operation- Over a dozen established stores- West and East side

The Competition

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In-Store Brewing Operation- Two primary competitors- One high traffic commercial, one neighborhood specific

Location Brand Promise Attraction PriceWine 4 You Multi-Tenant Strip Mall2600 8th Street E

“Your Wine, Our Time” “Open, Honest, Friendly and Knowledgeable People are There to Help You”

Very bright and clean store, with glass wall showcasing brewing in progress.Central location on busy street with high traffic

Moderate-High -somewhat flexible pricing sensitive to customer budget

Let’s Make Wine Limited Tenant Strip Mall406 Ludlow Street

“Make your win in-store! You start it and bottle it, and the staff does all the hard stuff in between.”

Simpler store design, based on model from Yorkton store (owner owns both)University Heights area services key markets including Silverspring, Forest Grove, Erindale, Willowgrove, Arbor Creek

Moderate – Low -$50 brewing fee-showcasing of lower priced wine kits

Competitive Advantage

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LocationStrip Mall 8th Street: Little frontage, traffic is frustrating, parking poorUniversity Heights: Difficult to find, neighborhood specific- Central location, well known and easy to find- Excellent traffic frontage- Downtown professionals- Easier for West/North neighborhood access

Loyalty - Encourage repeat sales

New Marketing - Embrace electronic advertising and social media

Beer Kits- Highlight this capability, not focus of competitors

Questions?

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