Infinity

Executive Summary

 

 Executive Summary

Infinity Cellars, an ultra premium Napa winery, will begin to produce wines in a facility most likely located in North Vancouver. Annual production will begin at approximately 2,500 cases in year one and is expected to increase to 5,000 cases by year four. The winery will produce a number of vinifera varietals including Cabernet.


 


Sauvignon, Merlot, Pinot Noir, Chardonnay and its flagship Meritage. To create initial brand awareness, the wine will be sold out of the tasting room at the winery, through the wine club, to higher end estaurants and private liquor stores. To maximize profits, export to the Chinese market will become an integral part of the marketing strategy.


The key to the winery’s success will be its high quality vinifera wine. Infinity Cellars has sourced its fruit from two of the very best vineyards in Napa Valley, the Stagecoach and Beckstoffer vineyards. Research shows that consumers are drinking more expensive and higher quality wines, and the winery will capitalize on these onsumption trends. No other winery in Canada focuses exclusively on premium Napa Valley vinifera varietals, and doing so will differentiate us from all Canadian competitors.

Our mission is to produce the highest quality California “Cult” style wines from premium vineyards located in the Napa Valley. These wines will be equivalent to the finest wines anywhere in the world. It’s our intention to produce Canada’s Screaming Eagle (a Napa Valley cabernet that sells out every year on the first day of release at US$750).

The real opportunity for Infinity Cellars is the Asian export market. The winery will initially sell its wine

through the tasting room at the winery, directly to the public to create brand awareness. Once branded, it is our intention to replace domestic sales with exports to China and continue selling only a small amount of the annual production in British Columbia. This strategy would generate significantly larger profits for the winery as there would be no Canadian duty or taxes incurred on the sale out of the country. Research indicates that growth in the Chinese premium and ultra-premium wine space is expected to continue to increase at a staggering pace for many years to come, a market that is already considerably larger than that of British Columbia. It is anticipated that a successful entry into the Chinese export market will require a significant increase in the amount of wine produced. After discussions with wine distributors in Beijing, this amount may be in excess of 10,000 cases.

Frank Gigliotti, our consulting winemaker is entering this wine project as a 26 year veteran of premium winemaking. He has successfully created Canada’s first and only private winery, California Cult Classics (CCC), which has been in operation for the last nine years. Frank currently produces 3,000 cases of ultra premium Napa Valley wine annually. Many wine critics have declared his wines comparable or better than many of the best wines currently produced in Napa.

Unlike starting a new winery from scratch with unknown results, Infinity Cellars will be a replication of the CCC operation. All aspects of the winemaking operation, including many of the wines, the costs and the fruit used, have been proven over the last 9 years of operation. A location has been identified in North Vancouver that will be suitable to accommodate the operations and tasting room, while also able to accommodate significant future expansion.

Investment in Infinity Cellars has been structured as a Limited Partnership (LP). The LP was selected for its liability protection, flexibility, and favoured tax treatment. In order to establish a sustainable, ongoing operation, an investment of $3.35 mil is required. Funds will be used to acquire the grapes, build out the facility, make the wine and cover the annual operating expenses during the first three years of operation.

Sales will begin late in the second year, once the wines have aged. Financial projections for the project are summarized in the Proformas on page 4 and 5.

The Exit Strategy − This project will reach optimal operation in Year five or Year six, utilizing a base case annual production beginning at 2,500 and increasing to 5,000 cases. As noted in the proforma, investors should receive their entire investment plus a bonus of 30% returned to them from operations in Years three to six. Until this repayment is complete, the LP’s will hold security over all assets of the winery. Once the investors have received their original investment back, the exit strategy is to sell the winery. Based on current winery valuation metrics, investors could receive a further 400% to 500% on their original investment upon a sale. Another option for liquidity would be going public, but at this time, sale of the winery is the preferred exit strategy.

In the event that the partners decide that a sale is not in the best interest of the partnership, cash distributions to the partners from ongoing operations, based on an original investment of $3.35 mil, would be approximately 48% per annum.

It is expected that once operational in the Chinese export market, a significant increase in the annual production will be required to facilitate distribution to this market. If this is the case, revenue projections will also increase significantly, thereby creating earlier and larger returns to the partners.

 

For Further Information

 

on

 

Infinity Cellars

 

or to join us for an upcoming

 

information meeting and wine tasting

 

Contact – Joyce Soo

 

(604) 307-2283

 

soojo@telus.net

 

 

This Business Plan is provided to you as an Accredited Investor or as a close friend or business associate of Curt Huber or one of the directors, or management team of the Partnership. This is not an invitation to the public to subscribe for securities and the foregoing has not been reviewed nor approved by any Securities Commission or Stock Exchange. This Business Plan may not be forwarded to other parties.
FORWARD-LOOKING STATEMENTS – This Business Plan contains certain forward-looking statements and forwardlooking information which are based on the Partnership’s current internal expectations, estimates, projections, assumptions and beliefs, including, among other things, assumptions with respect to future capital expenditures and cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “plan”, “should”, “believe” and similar expressions are intended to identify forward-looking statements and forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements or information. The Partnership believes that the expectations reflected in those forward-looking statements and information are reasonable but no assurance can be given that these expectations, or the assumptions underlying these expectations, will prove to be correct and such forward-looking statements and information included in this summary should not be unduly relied upon. Such forward-looking statements and information speak only as of the date of this summary and the Partnership does not undertake any obligation to publicly update or revise any forward-looking statements or information, except as required by applicable laws. These factors should not be construed as exhaustive. Except as required under applicable securities laws, the Partnership undertakes no obligation to update or revise any forward-looking statements.

JOYCE SOO

Sutton Group Seafair Realty
#550, 9100 Blundell Road,
Richmond, British Columbia
V6Y 1K3
Telephone : (604) 273-3155

Freena Wang (Beijing)

Tel: +(86) 13801087331
Email: sales@globalrealestates.net
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