The Investment Opportunity
• $2 Million Initial Investment + Operating Line Of Credit• Long-term License Agreements with Iconic American Brands• Our People• Unique Brand Platform• Digital eCommerce Distribution• Branded Online Media Properties
FENDER Lifestyle 2
FENDER Lifestyle 3
Major Houses of Brands
FENDER Lifestyle 4
House of Luxury Lifestyle Brands
FENDER Lifestyle 5
The Business Model
• DUNN will be a Lifestyle House of Brands and Curators of that specific lifestyle for our brand loyalists
• Deep Market Insights• Brand ‘Intellectual Property’ Assets (Licenses)• Unique Design-Driven Product Development• Complete Integrated Marketing and Promotion• Branded Distribution Channels Established• Replicate Brand Model Across Business Units• Create Online Lifestyle Communities (eCommerce)
Fender
FENDER Lifestyle 7
• Fender is an iconic American brand• Fender Musical Instrument Corp is currently the No. 1 seller of
electric, acoustic and bass guitars in the world• Fender is the leading global music lifestyle and instruments
company globally• Fender = Rock & Roll Music Lifestyle + more• Fender Artists are some of the world’s most recognized rock,
country western, jazz and blues guitar heroes and legends.
The Fender Lifestyle
FENDER Lifestyle 9
Fender Wine | Marketing & Sales
• “Lifestyle Brand” Defined• The Wine Industry• Target Markets• Ancillary Branded Products• Distribution Plan• Brand eCommerce Website• Online Digital Media Properties
FENDER Lifestyle 10
FENDER Lifestyle 11
Fender Wine | First Brand Launch
‘Rockstar’ Signature Series
-Very low volume (covetable)
-Extraordinarily high-quality (collectible)
-Ultra-premium wines (costly = profitable)
• Digital Marketing and Technology• Design, Creative, Advertising and PR• Wine Industry Professionals
FENDER Lifestyle 12
Fender Wine | Our Partners
• Letter Of Intent from Fender• Letter Of Intent from EMI | Blue Note Records
– in process• Letters Of Intent from Wineries & Winemakers
– in process
Milestones Achieved 13
Milestones Achieved
Michael DunnFounder, Interim CEO, CMO, CCO and Dealmaker
Tom AdamskiBoard of Directors, ConsultantAnd CEO of LEVEL Studios
Andy ArmaninoBoard of Directors, Consultant and CEO OF Armanino McKenna CPA
Jim ClendenenWine Industry Consultant, Winemaker and Advisory Board Member
John StipicevichWine Industry Consultant, Regional Sales Manager
Jeff TolleFinancial Consultant,Interim CIO
DUNN Team 14
D U N N Team
Projections (Fender Wine)
Projections 15
INCOME STATEMENTYear 1$ Total
Year 2$ Total
Year 3$ Total
Year 4$ Total
Year 5$ Total
Product Sales 3,401,068 6,608,409 9,958,736 12,785,835 15,739,626
Cost of Goods Sold 550,128 1,052,120 1,560,988 1,973,584 2,393,057
Gross Margin 2,850,940 5,556,289 8,397,747 10,812,250 13,346,570
84% 84% 84% 85% 85%
Total Operating Expenses 2,282,631 3,080,003 3,749,471 4,337,342 4,951,817
67% 47% 38% 34% 31%
Operating Margin/EBITDA 568,310 2,476,287 4,648,276 6,474,909 8,394,752
17% 37% 47% 51% 53%
Other (Income) Expenses 290,993 691,108 1,172,232 1,627,014 2,106,970
9% 10% 12% 13% 13%
Net Income (Loss) 277,317 1,785,179 3,476,044 4,847,895 6,287,782
8% 27% 35% 38% 40%
EMI | BLUE NOTE Lifestyle 16
The Blue Note Lifestyle
• EMI is one of the world’s leading music companies• Artists include Frank Sinatra, The Beatles, Beach Boys, Pink Floyd,
Coldplay, Lady Antebellum, Norah Jones• Owns recording studios Abbey Road in London and Capitol Studios
in Los Angeles• Owner of 14 record labels, including Blue Note
• Blue Note Records is an iconic jazz label• President - Don Was, famed producer for 20+ years• Blue Note is also known for their striking and unusual album cover
designs
EMI | Blue Note
EMI | BLUE NOTE Lifestyle 17
EMI | BLUE NOTE Lifestyle 18
Investment Summary 19
Investment Summary
•DUNN Brand Company is seeking investment to launch Fender Wine in
2012
•Full Round $2,000,000 Convertible Loan @ 10% interest
or
•40% equity stake at end of 5 year term
•Estimated TV in Y5 (Fender Wine Only) $60M
•ROI 12X
Use of Funds 20
Use of Funds
Use of Funds $
Advertising/Marketing 684,698
Payroll 318,051
Rent 27,450
Professional Services 38,000
Travel & Entertainment 39,000
Miscellaneous 48,600
G&A Startup 117,000
Fixed Asset Purchases 37,400
Inventory Purchases (Month 6) 550,128
Cash Reserve 139,673
TOTAL $ 2,000,000
Michael DunnD U N N Brand CompanyP 888.224.0304 C [email protected]
Contact 21
Contact
Jeff TolleD U N N Brand CompanyP 775.434.8080 C [email protected]
Thank You