Agreement WebEx Meeting December 20, 2011 Buy Back Agreement - PowerPoint PPT Presentation

Supplier Inventory Buy Back Agreement WebEx Meeting December 20, 2011

Buy Back Agreement Milestones Dec. 20, 2011 – Final feedback due Dec. 21, 2011 – Final Agreement distributed to suppliers via All Supplier Bulletin Dec. 28, 2011 – All signed Agreements due Dec. 29, 2011 – WSLCB begins taking action on all products not covered under a signed Buy Back Agreement 2

Reverse Logistics Cost per Case Activity Expense Box $1.63 Labels $0.15 Tape $0.09 Transportation (Store to DC) $3.10 Materials & Transportation Cost $4.97 3

Retail Program Changes • New Listings – No new listings or size extensions will be considered. • Pricing – Pricing will be fixed beginning January 1, 2012. • Displays – Utilize unique display opportunities through April 2012. • Special Orders – Continue to have products special ordered until April 2012 to be sold by the bottle. • Sampling – Participate in the Spirit Sampling Pilot through April 2012, including special order products.

Consequences of Not Signing a Supplier Inventory Buy Back Agreement • The Board will begin the process of delisting these products immediately. • Suppliers will not receive any additional orders. • Bailment inventory must be retrieved from the DC. • Additional actions will be taken to reduce the remaining inventory in stores, including the discounting of retail prices. 5

Additional Q & A Thank You!