You can find detailed worksheets supporting our revenue projections in the attached file labeled "W&W_Revenue Projection Assumptions. A description of the methodology used to build them follows here:

2016-W&W Direct Sales

In this worksheet I started with where we are at now in volume. That is our average monthly sales per month per unit of product. Then I projected a very modest growth rate of .008% per month— a rate that we should be able to obtain through word-of-mouth alone, let alone conducting any sales or marketing. Very conservative projection. On the volume for Cafe Patachou I used only their historic sales volume as basis. (This is very conservative as it does not take into account their deal with Simon malls to open locations throughout the US. That will all be bonus volume when it happens.)

2016-W&W SWS Indiana

With this worksheet I began with SWS Indiana’s current performance with each of our products (not including RTD). I then calculated a growth rate of 6%. I believe this is conservative because although we have been with SWS for a few years, only now do we have the full awareness of sales and upper management of the value of our product line. Reorders alone will support the majority of the projections, with growth coming in the form of very modest penetration into new locations. (For perspective, with today’s numbers (month one), we are in less than 10% of the on-premise locations in the SWS Indiana footprint. There is lots of room to grow.)

The biggest unknown is the sales demand of the RTD. What we do know is that the interest prelaunch was incredible. With that SWS Indiana pre-ordered 2 palettes or 130 cases. A week later they changed that to 3 or 195 cases. Less than three weeks after those 3 pallets were delivered they ordered a fourth. The liquor stores are taking the product immediately, with Marsh slowing coming on line. We just discovered that Kroger is working on freeing up shelf space to support our product. They are planning a large Super Bowl display in their flagship stores that include Absolute Vodka, our Bloody Mary Mix, and the RTD. We also just learned that Meijer is picking up the RTD for 26 of their stores beginning in spring store reset in March. I feel that our new RTD product projections are in line with the initial activity we are seeing from current and targeted accounts.

2016-W&W SWS Illinois

When we met with the VP of sales of SWS Illinois, he told us that because of their size that they should easily be able to do twice whatever SWS Indiana was doing. However, I chose to take a more conservative approach to our SWS Illinois projections. I did use Indiana as a basis, but I started them at one-half of the current volume of Indiana. I then projected them at the same growth rate (6%) as Indiana. I feel that this conservative as the cocktail market in Chicago is substantially larger than that in Indy.

2016-W&W SWS Nevada

I also started them at half of the current volume of Indiana. However, because they are many times the size of Chicago (One Casino can pour over 25,0000 cocktails in a 24hr period) I projected them to grow at twice the rate of Chicago or at 12%. 2017-W&W Direct Sales Again, the same conservative approach. Beginning with where 2016 left off and the showing a growth rate of .008% per month— again, a rate we should be able to obtain through word -of-mouth alone, let alone conducting any sales or marketing. (And still NOT accounting for the projected growth with the Patachou chain although it is likely we'll see growth through this segment.)

2017-W&W SWS Indiana

Once again taking a very conservative approach, I began with where 2016 left of and then slowed the growth rate to a mere 1.5%. I slowed the growth of the Bloody Mary RTD to the same rate as well. However, I added the two new RTDs that we plan to bring to market. I projected them to only do the same volume combined as the Bloody Mary RTD.

2017-W&W SWS Illinois

Using Indiana as the template, I did the same with Illinois. I began with where they finished in 2016 and then slowed their growth rate to the same 1.5%. Again, with the size of the Chicago market alone, this is a very safe and conservative approach. Following Indiana as well, I used the same 1/2 expectancy approach to bringing on the two additional RTD products. 2017-W&W SWS Nevada Although I projected a slowing growth rate for Nevada in 2017, because of its incredible market size I brought it to the initial growth rate of the Chicago market, or 6%. I took the same approach with the additional RTD products (growth rate and half the volume of original RTD.)

2017-W&W SWS New Market

Again, using Indiana as the template, I treated a new market projection as I did Illinois its first year. I started with half the volume of Indiana combined with the same growth rate of Indiana, 6%. I added the RTDs as before. 2018 By now I hope you see the pattern: Use Indiana as the base template, show initial growth based on Indiana history (a known) combined with market size, then slow that growth rate by over half the second year.

Based on our experience to date we believe these projections are very conservative and very obtainable. We've worked to build them based on a sense of what we know, NOT what we hope. What we cannot predict is the latency in our distributors bringing new products online with their customers. That will come in waves and my intent was that the slow, but steady growth rates would level that out over time.

Additionally, our annual proformas do not account for some other positives we see, such as reduced manufacturing costs as volume increases or the growth of the Patachou chain. I also didn’t try to predict any of the potential homeruns, such as the talks we are currently having with large potential accounts such as MGM Grand, United Airlines, or the Cruise Ships.