FOB/ex-cellars winery selling (or transfer to winery tasting room or DtC sales) price per case:

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1 S1 Project Info Oregon Wine Cost of Goods & Gross Margin Calculator Sponsored by the Oregon Wine Board, developed by Tim Hanni MW and ecode.me LLC CLICK HERE TO VIEW TUTORIAL VIDEO 1 Date: 2 3 Case Production of this wine: 3,000 FOB/ex-cellars winery selling (or transfer to winery tasting room or DtC sales) price per case: FOB winery sales price per case (S4 line 18): $ Auto-calculated estimated retail selling price from FOB above (provided as a $29.51 guidline, see S7 line 10-13): 5 Total Revenue: $480,000 Tonnage of grapes required (S2 line 5): 50 6 Cost of goods (COG) per case: $99.45 Total cost grapes: $121,100 7 Gross Margin per case: $60.55 Total Gross Margin: $181,660 The Oregon WineBizSimT program is provided for financial simulation purposes only and author assumes no responsibility, liability or financial obligation for its use. Read Terms of Service at This work may be not be reproduced in part or in its entirety without written permission. For more information contact: Tim Hanni, tim@timhanni.com Copyright 2018 ecode.me LLC. All rights reserved.

2 S2 Grape Costs Grape Costs COST OF GOODS/CASE $99.45 GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, INSTRUCTIONS: Select Varietal in first column from pulldown list. Benchmark costs by AVA are provided as a reference. Enter your cost per ton in the next column using up to six varieties for blended wines. If making a blend enter percentage of total for each variety (0r 100% if wine is single variety) in third column. Use final two rows for varieties not listed (for complete production or additions to blend) Select Varietal from Pulldown Enter Cost Per Ton Variety % of Total 100% XXXXXXX OR Avg Reference: Benchmark Costs (USD per ton) by Region. OR Low OR High N. Will. V. S. Will. V. Umpqua Valley Rogue Valley Columbia River 1 Pinot Noir 2, % $2,422 $2,422 $962 $5,376 $2,582 $2,471 $2,061 $2,202 $1,955 2 Select (Pulldown) 0% $0 3 Select (Pulldown) 0% $0 4 Select (Pulldown) 0% $0 5 Select (Pulldown) 0% $0 6 Select (Pulldown) 0% $0 7 0% $0 8 0% $0 Total cost per ton: $2,422 The Oregon WineBizSimT calculators are meant for simultion purposes only and author assumes no responsibility, liability or financial obligation for its use. Please read full Terms of service. This work may not be reproduced in part or in its entirety without express written permission. For more information contact Tim Hanni MW, tim@timhanni.com Copyright 2018 ecode.me LLC. all rights reserved.

3 S3 Production Winemaking & Production Worksheet COST OF GOODS/CASE $99.45 GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, Enter Values Totals 1 $2, Grape cost per ton (from page previous page) 2 100% Percentage of full production wine (100% = NO bulk wine used) 3 0 Percentage bulk/finished wine if used (100% = bulk wine production only, enter cost per gallon line 19) Calculation of grape needs and costs based on average cost/ton, % of production and press conversion: 5 60 Enter wine press conversion factor (1 ton of fruit = xx cases of wine?) Grape Tons needed (case production divided by press yield) 7 $121,100 Total Cost of Grapes 8 $40.37 Reference Cost of Grapes per case (2.38 gallons) of finished wine 9 Processing and production costs (per ton basis) not including labor or overhead $0.00 Additional prefermentation handling, treatments of the grapes and/or must per ton 11 $0.00 Additional one-time fixed prefermentation costs: supplies or equipment $40, Winemaking: fermentation and production per ton (excluding aging and cellaring) 13 $0.00 Exceptional production costs not included above: equipment, supplies, treatments $15.00 Lab work and analysis (pre-, during & post-ferm) total production OR use /ton basis next line $0.00 OPTIONAL: Lab work and analysis (pre-, during & post-ferm) per ton estimate 16 $ Total production cost per ton 17 $40,750 Total cost of full production wine (as % of full production vs. bulk) 18 $13.58 Total per-case cost production Bulk/finished wine cost per gallon (enter $/gallon cost of material) 20 0 Bulk/finished wine required - gallons in blend (2.38 gallons per case) 21 $0 Bulk/finished wine total cost 22 $0.00 Total per-case cost of bulk/finished wine $7, State and Federal Excise Taxes per gallon, times 2.38 gallons/case CLICK FOR TTB TAX DETAILS 24 $169, Total cost including grapes, production, bulk/finished wine and taxes 25 $56.50 Total cost of wine per case of finished 12/750 ml bottles

4 S4 Barrel Costs 1 Barrel Costs COST OF GOODS/CASE $99.45 $56.50 Total Cost of Finished Wine per case of finished 12/750 ml bottles. Percentage of wine each in barrel program: GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, NOTE: line 1, "Percentage of wine in each barrel program" cell below must be populated for the susequent calculations in each column to be activated. French NEW French oak USED American NEW American oak USED TOTALS 0% 100% 0% 0% 100% 3 Gallons 0 7, , Equivalent number of cases Laid in cost of barrel (incl. shipping and preparation) 0 3, ,000 1, Used barrel resale (or transfer) price Barrel capacity (gallons) Duration of barrel aging (months) Number of years used Number barrels required Annual evaporative loss rate (3-5 % per year typically) Topping wine (bulk/finished wine) cost per gallon Cost of evaporation loss Topping wine cost/bottle $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $ Depreciated barrel cost/bottle $0.00 $0.39 $0.00 $0.00 $ Cost per 750ml bottle $0.00 $0.39 $0.00 $0.00 $ Total cost per case of 12 bottles $0.00 $4.68 $0.00 $0.00 $ Cost of wine including barrel aging per case Total cost of Finished Wine and Barrel Aging $61.18 $183,529.80

5 S5 Cellar & Storage Cellar Aging and Storage COST OF GOODS/CASE $99.45 GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, Includes costs of barrels, topping wine, evaporation loss and depreciation adjustments. Does not include costs of labor, facilities, or overhead. Cost per case $61.18 Cost of finished wine including barrel aging Number of MONTHS total/case $0.90 Storage/aging per month, large uprights, eggs, stainless, etc. 2 $0.00 $0.00 Oak alternative costs (chips, blocks, additives, etc.) $0.00 $0.00 Add any additional aging-related costs $0.90 Total Oak Aging Options Additional cellar treatments (if not already included in total winemaking costs) 5 $0.00 $0.00 Stabilization and clarification $0.00 $0.00 Specialized filtration, additions or treatments $0.00 $0.00 Additional cost of cellar treatments or supplies: $0.00 Total Additional Cellaring, Storage and Aging Options Monthly storage of bulk and/or finished wines $1.50 Case goods storage BEFORE release (in bond) $ $3.90 TOTAL 12 $4.80 Aging and cellar costs per case 13 $14, Total cost of aging and cellaring Case goods storage AFTER release, taxes paid (average # months until depleted) 14 $65.98 Total cost of Wine per case, Including cellaring and aging 15 $197, Total Production Cost Of Finished Wine

6 S6 Packaging & Bottling Packaging and Bottling Costs Enter EITHER cost per case of packaging OR individual costs 1 $65.98 Finished wine cost per case from previous page COST OF GOODS/CASE $99.45 GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, Total per case packaging cost (bottles, case, closure, labels) OR enter individual packaging costs: Bottles or other containers Corks, screwcaps or other closures Capsules, per bottle Labels Boxes and/or box graphics (boxes may be included with cost of bottles) Additional packaging costs (wooden boxes, tissue wrap, etc.) $32.40 Packaging cost per case 9 $0.12 COLA, design and additional packaging expenses Bottling/filling cost per case including additions or treatments 11 $ $0.00 Additional bottling line setup or changeover fee Additional packaging and/or bottling costs $ $3.00 Total case cost of packaging materials, bottling and treatments Total bottle cost of packaging materials, bottling and treatments 15 $108, Total cost of materials and bottling 16 $305, $ Total cost including wine, packaging and bottling Finished Cost of Goods (COG) per case

7 S7 FOB & Cost Breakdown FOB & Cost Breakdown COST OF GOODS/CASE $99.45 GROSS MARGIN/CASE $60.55 TOTAL GROSS MARGIN $181, $99.45 Unallocated Cost of Finished Goods (use this number to enter into Sales & Distribution Calculator) 1 Cost of Finished Goods Breakdown % of total $ per Case Total Costs/Margin 2 Grapes 41% $40.37 $121,100 3 Production 14% $13.58 $40,750 4 Bulk wine 0% $0.00 $0 5 Barrel aging 5% $4.68 $14,040 6 Cellar and storage 5% $4.80 $14,400 7 Packaging 36% $36.02 $108, Cost of finished goods GROSS MARGIN (FOB selling price less cost of goods) 100% $99.45 $298,340 $60.55 $181, $ Preliminary retail pricing calculation pricing forecaster* Winery FOB/ex-cellars price (WINERY SELLING PRICE; cost to distributor, transfer cost to tasting room/wine club) 11 $480, Total winery revenue for this wine (FOB times case production) 12 $24.65 Distributor selling price (freight, landed cost X 1.5 markup to licenced resellers: on-premise and off-premise) 13 $29.51 Estimated retail shelf selling price after 33% retail markup (25% margin) * Distributor and retail selling prices are provided for reference based on benchmark costs and markups to prvide Gross Margin figures. Full distributor & retail calculations can be completed using the Distribution, Retail and Restaurant Calculator.