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Executive Summary

Service Innovations, Inc. represents over 80 wineries & breweries, mostly from California, with some Oregon & Washington State brands, for export sales primarily to the Caribbean and Latin America. It has developed over the past twenty years a distribution network of over 80 importer/distributors in more than 25 countries, serving hundreds of the top restaurant & resort accounts and wine stores in these countries. Service Innovations travels extensively throughout this region hand selling the wine brands represented, providing education to consumers and training to wait staff, and supporting its distributors to care for its brands.

Patrick Burke handles marketing & sales in the region, traveling to most markets twice a year, and hosting in California hundreds of distributor and account principals and staff. Mr. Burke has more than 30 years experience in production & service management and sales. For nearly 25 years Mr. Burke has traveled abroad working in international sales & operations. He earned bachelor degrees in both Political Science and Broadcast Communications & Marketing from San Francisco State University. Scott Irby handles all corporate matters and supplier & logistical issues stateside, with some travel to the markets served. Mr. Irby has 40 years of business management experience. He earned his MBA from the University of California, Berkeley and his BA in Business Management from Humboldt State University. Additionally, Service Innovations has contract sales, accounting, and legal assistance.

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SERVICE INNOVATIONS, Inc.

Service Innovations began its wine export business in 1995. Initial sales were into Costa Rica where it founded a distribution company when the distributors available at the time where unwilling to invest in California wines. Placement of its initial brands was swift and soon the long- established distributors in the country were interested in taking over sales of the wines.

Following research into and interviews with the interested distributors, Service Innovations selected a distributor to take over the brands it had placed in Costa Rica. The following year, sales were established throughout Central America, and the following year distribution began in Mexico and the Caribbean. Subsequently, sales have been established in the South American countries where it makes economic sence.

As a "Contract Sales Representative", Service Innovations maintains a very unique approach to sales in its markets such as:

* Selection of importer/distributors via in-country visits to research, interview, and selec distributors, who are the most capable and will care for and build its brands. Service Innovations believes it is not enough to only attend trade shows to meet with whoever happens to show up as many wineries do, and be limited to those individuals as the only sales solution in a country. Rather it works with the best of the best in each country to import and distribute its brands.

* Focus on direct relationships not only with distributors in its countries, but lots of "face time" with individual accounts in the countries of its territory, and often consumers there, to create a pull for the wines that facilitate importation and sales of the wines in its portfolio. Ist is not a demand on distributors to sell its wines, rather, a parnertship throughout the supply chain that creates robust sales of the brands it represents.

* Service Innovations further balances its portfolio to both provide products for the premium to ultra-premium consummer and to offer a broad range of options to satisfy every palette.

* Service Innovations has the resources to facilitate export sales at every step of the sales continuum, from sampling the wines to get initial interest of distributors in a brand, to registration where needed, actually getting wines placed in specific house accounts, facilitating orders and shipping logistics, and collections on invoices due.

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MARKETING AND SALES ACTIVITIES

Services Innovations can best be described as a "Contract Sales Representative" for its suppliers. The focus is on taking the unique culture and approach of each of its wineries into the sales territory to tell the story that is unique to each winery. Emphasis is placed on facilitating a direct relationship between the winery and the distributors & accounts in the territory to encourage a partnership that results in the distributors seeing themselves as an extension in their country of their winery partners.

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WINERIES OF SERVICE INNOVATIONS, Inc.

Service Innovations initially started with mid-tier wine brands that could show the quality of California wine while keeping the price competitive. That was in 1995 when the knowledge of California wines in Latin America was extremelly limited. This brand and its price-point proved very successful at raising the awareness of the quality of California wines. Soon the market became more accepting of higher priced premium and ultra-premium brands, so the brands added to Service Innovations portfolio were increasingly the higher-tiered wines that are world renown and being demanded by the tourist and business sectors in the territory. In response to the economic downturn in 2008, more price-competitive premium wines were added to meet that demand with a broad array of options.

Service Innovations is fortunate to be involved with a select number of the leading wineries in California, Oregon, & Washington. These wineries have made a long-term commitment to the territory, realizing this region as having the most robust, continued growth potential of the many international markets at the current time, with continuing expansion opportunities over the next 5-10 years. Successful wineries are consistent producers of premium and ultra premium wines, committed to firm product allocations for this market, providing samples for introduction of their brand & ongoing sales growth, supporting sales with POS materials for the market, and hosting distributors & key trade accounts during their visits to California, Oregon and Washington state.

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DISTRIBUTORS OF SERVICE INNOVATIONS, Inc.

Service Innovations works predominately with well-funded and long established importer/distributors who are focused on the wine trade and have a track record of exceptional customer service. Further, distributors must be well run administratively and communicate effectively with their customers and with suppliers alike. Although some distributors have been identified at wine shows and others by referral, most distributors were selected to represent wines in its portfolio based on research in their country as to those who best fit this criteria. Service Innovations’ approach is to first get to know the country, the business culture, & the distribution options there, and then work with the best-in-class distributors.

Over the past 16 years, Service Innovations has built a distribution network of more than 80 distributors in 25 countries. Many distributors have been in business for decades, and even centuries. They share the commitment of long-term relationships to best support and build wine brands in their country. They are well versed in wines in general, and increasingly in California wines specifically. Most have sommeliers on staff to assist in building their wine programs.