BottleBox HELPING YOU FIND YOUR
NEXT FAVORITE DRINK, DELIVERED TO YOUR DOOR Avneet Singh, Carly Weil, Ethan Than, Ian Mak, Kaushik Tiwari, Phil Duong LEAN LAUNCHPAD | JANUARY 15, 2016 Interviews since yesterday: 5 Interviews to date: 73

Partners • Craft Wine/Liquor/beer distilleries
• Liquor bottling and packaging units • Door delivery services such as FedEx, UPS • Warehouse space providers • Packaging material designers / manufacturers • Local bars with a customer base for customer generation and promotional activities • Airline operators - our monthly updated collection for in flight consumption • Flavor and special ingredient suppliers • Flavor / taste / ingredient experts and consultants who understand mixing of flavors • Bar tools suppliers such as bottle openers, glasses etc. Activities • Packaging & shipping • Content creation • Supply chain sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.) • Logistics operations (storage, orders) • Quality control • Customer service • Marketing • Supplier relationship Value Proposition Box-Side • Monthly discovery of new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets • “Try before you buy” – ability to sample new products and then purchase full-size Supply-Side • Broadened customer base and brand awareness for our producer partners Customer Relationships Get: • Social media • Testimonials / Advertising • Partnering with suppliers • Promotional samples • Special events (launch party) Keep: • Responsive customer service • Feedback mechanisms • Discounts / loyalty programs • Loyalty rewards (wine tastings, trip to winery / distillery (e.g., Napa Valley, etc.) Grow: • Expand customer base with corporate partnerships • Geographic expansion (supplier and customer reach) Customer Segments Box-Side • Millennials age 20-25 starting to discover and develop tastes in alcohol, primarily single women • Adults 26-40 refining their tastes and interested in broadening their palates, primarily couples • Corporate clients giving seasonal gifts Supply-Side • Smaller (by region, product line, and/or brand awareness) producers seeking new customers Resources • Supplier / Breweries • Flavor Specialists / Professional Tasters to suit flavors to the theme of every season/month • Bottling and packaging designers • Order and payment collection system Channels • Website / app / social media • Seasonal / theme events • Email marketing / newsletter • Industry publication and sponsorship • Direct sales to suppliers Costs • Shipping (requiring 21+ signature) • Licensing fees (by state and alcohol class type) • Alcohol product and accompaniments Revenue Streams • Monthly / Annual subscription • One-time box purchases • One-time full-size purchases (% of sale) Business Canvas – Day One

BOTTLEBOX – PETAL DIAGRAM

TYPE OF BUSINESS Physical Product
/ Service Resegmented Market Two-Sided Market

MARKET SIZE TAM – 44.9M
SAM – 1.4M Target Market – 394k • 319M Americans • 25% over 21 • 56.4% drank alcohol in the past month • 8.4M New Yorkers • 1/3 of customers contacted so far would buy service in some form Average Spend Churn Rate x Orders per Year x = Revenue Potential $40 (1 - 75%)x 6x = $23.6M

Partners • Bartenders • Craft
Wine/Liquor/beer distilleries • Liquor bottling and packaging units • Door delivery services such as FedEx, UPS • Warehouse space providers • Packaging material designers / manufacturers • Local bars with a customer base for customer generation and promotional activities • Airline operators - our monthly updated collection for in flight consumption • Flavor and special ingredient suppliers • Flavor / taste / ingredient experts and consultants who understand mixing of flavors • Bar tools suppliers such as bottle openers, glasses etc. Activities • Licensing • Packaging & shipping • Content creation • Supply chain sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.) • Logistics operations (storage, orders) • Quality control • Customer service • Marketing • Supplier relationship Value Proposition Box-Side • Discovery platform for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets • “Try before you buy” – ability to sample new products and then purchase full-size • Curated packages based on your preferences Supply-Side • Broadened customer base and brand awareness for our producer partners Customer Relationships Get: • Social media • Testimonials / Advertising • Partnering with suppliers • Promotional samples • Special events (launch party) Keep: • Responsive customer service • Rating and recommendations • Discounts / loyalty programs • Loyalty rewards (wine tastings, trip to winery / distillery (e.g., Napa Valley, etc.) Grow: • Expand customer base with corporate partnerships • Geographic expansion (supplier and customer reach) Customer Segments Box-Side • Women 25-35, single, box fanatics, medium incomes, wine lovers but interested in learning more • Married or co- habituating adults 30-40, higher incomes, like exploring and giving gifts • Corporate clients giving seasonal gifts Supply-Side • Smaller (by region, product line, and/or brand awareness) producers seeking new customers Resources • Regulatory Agencies • Supplier / Breweries • Flavor Specialists / Professional Tasters to suit flavors to the theme of every season/month • Bottling and packaging designers • Order and payment collection system Channels • Bartenders • Website / app / social media • Seasonal / theme events • Email marketing / newsletter • Industry publication and sponsorship • Direct sales to suppliers Costs • Shipping (requiring 21+ signature) • Licensing fees (by state and alcohol class type) Revenue Streams • One-time sample box purchases • One-time full-size purchases (% of sale) BUSINESS MODEL CANVAS – DAY TWO

CUSTOMER SEGMENTS Female, single, 25-35,
“box fanatic”, primarily wine drinker, driven by learning new things and doing things with friends Betty Box Couples or co-habitants, 30-40, wine and spirits drinkers, driven by discovering new things, likes giving fun gifts The Jones’ Male, single or married, 20-40, single alcohol fan, likes getting a deeper knowledge of what he likes and giving fun gifts Whiskey Will

Partners • Bartenders • Craft
Wine/Liquor/beer distilleries • Liquor bottling and packaging units • Door delivery services such as FedEx, UPS • Packaging material designers / manufacturers • Local bars with a customer base for customer generation and promotional activities • Flavor and special ingredient suppliers • Flavor / taste / ingredient experts and consultants who understand mixing of flavors • Liquor stores Activities • Licensing • Packaging & shipping • Content creation • Supply chain sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.) • Logistics operations (storage, orders) • Quality control • Customer service • Marketing • Supplier relationship Value Proposition Box-Side • Discovery platform for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets • Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more • Whenever you want: Sample box of alcohols around a theme (e.g. whiskey) Supply-Side • Broadened customer base and brand awareness for our producer partners Customer Relationships Get: • Social media • Testimonials / Advertising • Partnering with suppliers • Promotional samples • Special events (launch party) Keep: • Responsive customer service • Rating and recommendations • Discounts / loyalty programs • Loyalty rewards Grow: • Expand customer base with corporate partnerships • Geographic expansion • Suggested recipes Customer Segments Box-Side • Women 25-35, single, box fanatics, medium incomes, wine lovers but interested in learning more • Married or co- habituating adults 30-40, higher incomes, like exploring and giving gifts • Males 20-40, single liquor fans, like trying more of what they like and giving gifts Supply-Side • Smaller (by region, product line, and/or brand awareness) producers seeking new customers Resources • Regulatory Agencies • Supplier / Breweries • Flavor Specialists / Professional Tasters to suit flavors to the theme of every season/month • Bottling and packaging designers • Order and payment collection system Channels • Bartenders • Website / app / social media • Seasonal / theme events • Email marketing / newsletter • Industry publication and sponsorship • Direct sales to suppliers Costs • Shipping (requiring 21+ signature) • Licensing fees (by state and alcohol class type) • Alcohol product and accompaniments • Packaging (materials, additions, and labor) • Shopify / Cratejoy memberships Revenue Streams • Ongoing monthly highlight box • One-time sample box purchases • One-time full-size purchases (% of sale) • Payments from producers (monetary or in-kind) BUSINESS MODEL CANVAS – DAY THREE

TOP BOXES

VALUE PROPOSITION BettyBox • “Try
before I buy” • Curated collections of things I like • Easy, delivered right to me • Recipe cards and everything I need to make it • Like opening a present every month TheJones’ • Discover new and interesting things • Enjoy feeling cultured • Get something I can’t find anywhere else • Great gift WhiskeyWill • Get things I like based on my preferences • Broaden my knowledge • Learn about new, cool products • Great gift

Partners • Bartenders • Craft
Wine/Liquor/beer distilleries • Liquor bottling and packaging units • Door delivery services such as FedEx, UPS • Packaging material designers / manufacturers • Local bars with a customer base for customer generation and promotional activities • Flavor and special ingredient suppliers • Flavor / taste / ingredient experts and consultants who understand mixing of flavors • Distributors / Wholesalers Activities • Licensing • Packaging & shipping • Content creation • Supply chain sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.) • Logistics operations (storage, orders) • Quality control • Customer service • Marketing • Supplier relationship Value Proposition Box-Side • Discovery platform for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets • Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more • Whenever you want: Sample box of alcohols around a theme (e.g. whiskey) • Gift options Supply-Side • Broadened customer base and brand awareness for our producer partners • Revenue stream for distributor Customer Relationships Get: • Social media • Testimonials / Advertising • Promotional samples • Special events (launch party) Keep: • Responsive customer service • Rating and recommendations • Discounts / loyalty programs • Loyalty rewards Grow: • Expand customer base with corporate partnerships • Geographic expansion Customer Segments Box-Side • Women 25-35, single, box fanatics, medium incomes, wine lovers but interested in learning more • Married or co- habituating adults 30-40, higher incomes, like exploring and giving gifts • Males 20-40, single liquor fans, like trying more of what they like and giving gifts Supply-Side • Smaller (by region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship Resources • Regulatory Agencies • Supplier / Breweries • Flavor Specialists / Professional Tasters to suit flavors to the theme of every season/month • Bottling and packaging designers • Order and payment collection system Channels • Bartenders • Website / app / social media • Seasonal / theme events • Email marketing / newsletter • Direct sales to suppliers Costs • Shipping (requiring 21+ signature) • Licensing fees (by state and alcohol class type) • Alcohol product and accompaniments • Packaging (materials, additions, and labor) • Shopify / Cratejoy memberships Revenue Streams • Ongoing monthly highlight box • One-time sample box purchases, with gifting options • One-time full-size purchases (% of sale) • Payments from producers (monetary or in-kind) BUSINESS MODEL CANVAS – DAY FOUR

Producers • Wineries • Breweries
• Distilleries Wholesalers • Distributors • Importers • Control Boards Retailers • On-premise • Off-premise Consumers THREE TIER SYSTEM BottleBox

Partners • Bartenders • Craft
Wine/Liquor/beer distilleries • Liquor bottling and packaging units • Door delivery services such as FedEx, UPS • Packaging material designers / manufacturers • Local bars with a customer base for customer generation and promotional activities • Flavor and special ingredient suppliers • Flavor / taste / ingredient experts and consultants who understand mixing of flavors • Distributors / Wholesalers • Third party fulfillment companies? Activities • Packaging & shipping • Content creation • Supply chain sourcing of alcohol product and complementary offerings (garnishes, mixers, food, etc.) • Logistics operations • Quality control • Customer service • Marketing • Supplier relationship Value Proposition Box-Side • Discovery platform for new and exciting alcohols (beer, wines, spirits, etc.) from small-batch producers unavailable in most major markets • Monthly: Box that highlights one alcohol that comes with everything you need to make a cocktail with it, plus recipes to make more • Whenever you want: Sample box of alcohols around a theme (e.g. whiskey) • Gift options Supply-Side • Broadened customer base and brand awareness for our producer partners • Revenue stream for distributor Customer Relationships Get: • Social media • Testimonials / Advertising • Promotional samples • Special events (launch party) Keep: • Responsive customer service • Rating and recommendations • Discounts / loyalty programs • Loyalty rewards Grow: • Expand customer base with corporate partnerships • Geographic expansion Customer Segments Box-Side • Women 25-35, single, box fanatics, medium incomes, wine lovers but interested in learning more • Married or co- habituating adults 30-40, higher incomes, like exploring and giving gifts • Males 20-40, single liquor fans, like trying more of what they like and giving gifts Supply-Side • Smaller (by region, product line, and/or brand awareness) producers seeking new customers; who have the ability / appetite to bottle / ship • Distributors / Wholesalers with wide brand portfolio Resources • Supplier / Breweries • Flavor Specialists / Professional Tasters to suit flavors to the theme of every season/month • Bottling and packaging designers • Order and payment collection system Channels • Bartenders • Website / app / social media • Seasonal / theme events • Email marketing / newsletter • Direct sales to suppliers Costs • Shipping (requiring 21+ signature) • Alcohol product and accompaniments • Packaging (materials, additions, and labor) • Shopify / Cratejoy memberships • Revenue share with distributors Revenue Streams • Ongoing monthly highlight box • One-time sample box purchases, with gifting options • One-time full-size purchases (% of sale) • Payments from producers (monetary or in-kind), less cut for distributors BUSINESS MODEL CANVAS – DAY FIVE

WWW.BOTTLEBOX.CRATEJOY.COM Visit us on the
web! Taking pre-orders now!

APPENDIX

PROPOSED EXPERIMENTS – ROUND 1
 Experiment: Physical box showing  Question: Would people buy our MVP box? How much would they pay?  Pass/Fail Signal: Contact information for pre-order; price range  Experiment: Speak to bar owners  Question: Would bars serve as partners / sales channel? What would they need to get back?  Pass/Fail Signal: Contact information  Experiment: Go to locations outside bars (e.g. Grand Central, barbershops)  Question: Are there people who would still prefer a subscription model?  Pass/Fail Signal: Contact information for pre-order  Experiment: Speak to more producers  Question: Would producers give us free product? What would they need to get back?  Pass/Fail Signal: Receiving free product

RESULTS OF EXPERIMENTS – ROUND
1 •Hypothesis: What constitutes an MVP? What price? •Experiments: Showed seven mock boxes in Uris •Results: People loved the boxes, two in particular, ~$20 •Iterate: Show more people Physical Box Showing (MVP) •Hypothesis: Liquor stores and bars will want to partner •Experiments: Spoke to owners about partnership structures •Results: Not a huge value prop for them, mostly a headache •Iterate: Find other channel partners Speak to Shop Owners •Hypothesis: There’s a different segment that doesn’t go out •Experiments: Set up in Grand Central and on campus •Results: Found more of our target customer in these places •Iterate: More table setups to talk to more targets Go to Locations Besides Bars

PROPOSED EXPERIMENTS – ROUND 2
 Experiment: More box showings with our most popular boxes  Question: More validation of which target segments prefer which box, and how much will they pay?  Pass/Fail Signal: Ask for orders, make them choose one box  Experiment: Talk to liquor stores and bars  Question: Do liquor stores or bars want to partner with us as a sales channel?  Pass/Fail Signal: Ask to talk to customers in the store, ask for term sheet  Experiment: Talk to producers  Question: What sort of producers are attracted to our model? What logistic capabilities do they already have vs. what do we need to supply?  Pass/Fail Signal: Contact information for future sales

RESULTS OF EXPERIMENTS – ROUND
2 • Hypothesis: What constitutes an MVP? What price? • Experiments: Showed seven mock boxes in Uris • Results: People loved the boxes, two in particular, ~$20 • Iterate: Show more people Physical Box Showing (MVP) • Hypothesis: Distributors and producers will want to partner • Experiments: Spoke to owners about partnership structures • Results: Very interested, but very concerned about logistics • Iterate: Develop succinct value proposition & target producer type Speak to Distributors / Producers

PROPOSED EXPERIMENTS – ROUND 3
 Experiment: Talk to VC firms  Question: What advice can we learn from experienced professionals?  Pass/Fail Signal: Business cards / offers of investment  Experiment: Talk to competitors / online retailers  Question: How do they handle the logistics of shipping?  Pass/Fail Signal: Specific states they ship to

RESULTS OF EXPERIMENTS – ROUND
3 • Hypothesis: Experienced VCs will know common pitfalls • Experiments: Speak with VC firms with similar investments • Results: VC people are very busy • Iterate: Keep trying to call Talk to VC Firms • Hypothesis: Online retailers use FedEx to ship • Experiments: Spoke to online retailers and competitors • Results: • Iterate: Talk to Online Retailers

OTHER BOXES

BottleBox TEAM MEMBERS Avneet Singh
Carly Weil Ethan Than Ian Mak Kaushik Tiwari Phil Duong Degree Program MS in Management Science & Engineering Executive MBA Executive MBA Executive MBA BS Engineering Management Systems MBA LinkedIn /avneetsinghl inkedin /carlyweil /ethan-than- 81a0336 N/A /kaushikktiwa ri /philongduo ng SME? Yes Yes No No No Yes Team Role Designer / Hustler Hustler / Product Picker Hustler Hustler Hacker / Product Picker Product Picker Anything interesting we should know? Currently works part time to derive customer insights from Currently works part time with a wine event company Project management / quality background Finance background, tech interest on the side Took a year off to start a digital health startup Founder of non-profit OUR TEAM