Speech / Presennation by Marian Kopp at Napa Financial Symposium September 2006

1. The set up and global launch
of an international wine brand
Golden Kaan - a wine from South Africa
- Marian Kopp -
Executive Board Member Racke Group, CEO Golden Kaan Ltd.
Napa, September 27, 2006

2. The Racke Company

5. Background:
A German based family owned company,
established in 1855
A leading marketer of wine brands in Europe, and beyond.
Blanchet as No.1 brand in the German retail (turnover, 01-06/06).
Development of outstanding global wine innovations,
such as Vitae and Golden Kaan.
European distribution rights for numerous successful global
brands, such as Yellow Tail, Codorniu, GIV, Castel.

6. The Racke Group
- Data -
fiscal year
2005/2006
1. turnover 133 mio. /
$ 173 Mio.
2. sales
4 mio cases

7. SUBSIDIARIES IN EUROPE
In Europe we are distributing our brands and
partner brands with strong sales forces.
CZECH REPUBLIC
POLAND
THE NEDERLANDS

8. Racke Brand Portfolio / basic tier

9. Key Portfolio: International & National Distribution Brands

10. Industry Role Model: Joint-Venture Brands

11. Successful global launch of a
wine brand:
Golden Kaan

12. Positioning Strategies grid (Rabobank research, 2006)
Focus: content
Niche distinction
Focus: consumer
Superior image + quality Brand (consistent
Perceived Distribution on-trade,
specialists
quality)
Innovation
Value Distribution (Service)
retailers
Niche
High strategy
High Perceived quot;Outpacingquot;
Brand strategy
Value Competitor Competitor
Cost Focus: process
Low quot;Confusedquot; leader-
Low Delivered
Competitor ship
Cost Competitor
Cost control
Scale
Distribution (discount)
retailers
High Low
Delivered Costs

13. Understanding the wine consumer
The key issue to marketing our products and developing new
wine brands is our knowledge of the consumer.
Knowing not only their demography but also their habits,
attitudes and demands is crucial to develop brands exactly
matching the consumers needs.
Therefore consumer analyses are conducted on a regular
basis to identify consumer clusters and their characteristics.
Existing international consumer segmentations for wine, e.g.:
Racke 2004; updated annually
Constellation, USA 2004
Waverly, UK 2004
Wine Intelligence, UK / USA 2005

14. Example: German target consumers for
GOLDEN KAAN
(Racke Clusters 2004)
The brand-oriented
Wine consumption is of high importance and has to offer
emotional benefits
Country affinity: New World Wines
Very high brand and off-trade orientation
Even male-female split, mainly 20-39 years
Typical off-trade spend: 2-4
The ambitious junior
Wine is part of one s life(style)
Country affinity: Italy, New World Wines
Rather male
Typical off-trade spend: 43% 4+
Wine connoisseurship under development
The connoisseur
Wine lover and connoisseur with above average wine
knowledge and usage
Preference of high-class wines of all origins
Rather male
Typical off-trade spend: 89% 3+

15. Example: UK target consumers for
GOLDEN KAAN
(Wine Intelligence 2005 & Waverly 2004)
The mainstream at-homers
Chiefly drink wine at home (on their own or with
friends)
Wine frequency: 3+ times per week
Country affinity: France, Australia, Chile, South Africa
High wine involvement
Even male-female split, mainly 35-64 years
Typical off-trade spend: £4-5
The weekly treaters
Drink wine once or twice a week (usually at home)
Country affinity: Australia, Italy, Germany
Moderate wine involvement
58% female, more likely to be young (18-34) and
single
Typical off-trade spend: £5+
The entertainers
Occasions for wine drinking: socialising, eating with friends
Adventurous with all countries
Highly brand conscious
62% female, aged 25-49
Wine spend: £3-6
Regularly buys on promotion, trades up on special occasions

16. Our development process for new wine brands
6 Project Steps
from Project Start
till International Market
Presence
Time frame 1.5 2 years
Step 1 Basic principles market research
Step 2 Development of concept ideas and first market research
Revision of winner concepts
Step 3 Final concept testing to check commercial viability
Step 4 Decision on launch and launch preparations
International launch
Step 5 Appointment of the right partners in each key market
Step 6 Adapting the brand to optimise its chances and success in its key
markets

17. consumer´s mindset of South Africa

20. development of the brand Golden Kaan

22. Intro_gk_neu.exe

23. - Golden Kaan Classic Range -

28. DISTRIBUTION NETWORK
GOLDEN KAAN
GOLDEN KAAN
LTD. / /LLC.
LTD. LLC.
AMERICA EUROPE AFRICA ASIA
AMERICA EUROPE AFRICA ASIA
USA KWV Japan: Kokobu
USA KWV Japan: Kokobu
UK GER NL NOR/SWE INTERNATIONAL
UK GER NL NOR/SWE INTERNATIONAL
South Carolina Arizona
Pennsylvania Florida
New Mexico
California Nevada
Colorado Hawaii
RUSSIA
Kentucky Illinois RUSSIA
NEW JERSEY: NEW YORK: TEXAS:
ALIANTA
ALIANTA
GROUP
GROUP
FINLAND: Maxxium
CANADA DENMARK: Strandgaarden
CANADA AUSTRIA: Kattus
CORBY SWITZERLAND: Denner
Distilleries: ISLAND: K. Karlson DUTY FREE
PERNOD
DUTY FREE
IRELAND: BWG Ltd:
RICARD
GROUP POLAND / R: Racke
GEBR.
GEBR.
HEINEMANN
HEINEMANN

29. Since the launch more than
10 mio bottles /
830,000 cs.
have been sold
world wide.
Represented in 28 countries.
BreakEven in year 3.

30. Thank you!
Marian Kopp
m.kopp@racke.de
www.golden-kaan.com
www.espiritu-de-chile.com