OFF-PREMISE MERCHANDISING GUIDELINESFollowing are set guidelines for effectively merchandising Hennessy Cognac, including display rules and precise dos and don’ts to maximize brand

OFF-PREMISE

MERCHANDISING GUIDELINES

2013/2014

I. PURPOSE & GUIDING PRINCIPLES

II. EXECUTION GUIDELINES

III. MERCHANDISING SOLUTIONS

FLOORDISPLAYS

MERCHANDISINGSUB-BRANDS

MULTICULTURALPOS

LOCKBOX&COUNTERMERCHANDISING

COUNTERWRAP&WALLSCAPEGUIDELINES

HIGHIMPACTWINDOWS

DIGITAL/E-COMMERCEGUIDELINES

IV. MERCHANDISING BY STORE FORMAT

PERFECTSTORE

LARGESTORE

SMALLSTORE

LIMITEDACCESS

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TABLE OF CONTENTS

1

HENNESSY MERCHANDISING GUIDELINES

Following are set guidelines for effectively merchandising Hennessy Cognac, including display rules and precise dos and don’ts to maximize brand visibility, awareness and sales.

KEY POINTS FORALLHENNESSYPOSFORMATS.

1. LESS IS MORE

• Hennessy merchandising should have a modern art gallery feel – simple and clean, with a focus on Hennessy brand.

• Impact is created through clear communication vs. quantity of communication.

• Hennessy POS and displays must be built to standard, kept current and meticulous.

2. EACH SUB-BRAND IS ITS OWN BRAND

• Do not group Hennessy together with other brands or with different Hennessy qualities.

• Make clean merchandising breaks between all brands and sub-brands.

• Each Hennessy sub-brand is treated individually and has its own display rules - do not mix POS materials.

3. ONLY USE HENNESSY POS

• Do not use third-party materials in combination with Hennessy materials.

• No Corobuff, garland, decorative lights, generic price signage, unauthorized banners or posters.

• Only use current Hennessy materials.

PURPOSE & GUIDING PRINCIPLES

2

COGNACSTANDARD5-SHELFSET

HENNESSYV.S

HENNESSY EXECUTION GUIDELINES

DISTRIBUTION • Priorities: HennessyV.S,BlackandPrivilègemarquesandsizedistributionareequaltoorgreaterthanthecompetition.

SHELF • Position:Placeateyelevelincognacsectionandbehindregister.Whenauthorized,installHennessyshelfPOS.

• Flow:Lefttoright,priceandsizetrade-up(leasttomostexpensiveandsmalltolarge)HennessyV.S,BlackandPrivilège.

• Facings:HennessyPortfolioset(V.S,BlackandPrivilège)has1.5XthecombinedfacingsoftheRemyandCourvoisierV.SandV.S.O.Plineup.

FLOOR • PlaceHennessydisplaysinthe#1positioninfrontofthestore,viewablefromthecounter.Utilizedisplay,priceburstsandPOSwhenauthorized.

• Inlimitedaccessaccounts,theHennessysetshouldbethe#1merchandisedcognacbrand.Executevisibilitytools

(windowclings,counterwraps,changemats,banners,streamers,posters,etc.).

WATCH-OUTS • Avoidleft-orright-shelfadjacencytoanysub-premiumcognacorbrandy.

DISTRIBUTION • Priorities:Secure750ml,100ml,200mland375mlsizesor100%ofauthorizations.

• Large Sizes:SecureHennessyV.S1.75Lwhereother$45+1.75Lspiritsareindistribution.SecureHennessyV.S1Lwhereapplicable.

SHELF • Position:Placeateyelevelinthecognacsectioninthenumberonecognacshelfposition.

• Position:Productshouldbeaccessibleorlocatedbehindtheregisterinclearviewbyconsumer.

• Position:Ifadjacent,placeHennessytotherightofRémy.

• Flow:Lefttoright,V.S,BlackandPrivilège.

• Facings:Equaltoorgreaterthanthenumberoffacingsofanycognacorbrandy.

• Category Adjacencies:ScotchandcordialstotheleftandrightofHennessy,respectively.

COLDBOX • SecureHennessyV.Sdistributioninaccountsthatsellchilledspirits.

• SecureHennessycountercoolerfor100ml,200mland375ml(whereauthorizedandlegal)intargetedHennessy

accounts.

FLOOR • Inmerchandisableaccounts,HennessyV.Sdisplaysandcasesshouldbeequaltoorgreaterthancategorycompetitors.

• LocateHennessyV.Sdisplaysinthe#1positioninfrontofthestore,viewablefromthecounter.Utilizepricersandpaper

andpermanentPOSwhenauthorized.

• Inlimitedaccessaccounts,HennessyV.Sshouldbethe#1merchandisedcognacbrand.ExecuteHennessyvisibilitytools.

• Secure50mlHennessyV.Scounterdisplaysinaccountsthatfeature50mlbottles.

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HENNESSY EXECUTION GUIDELINES CONTINUED...

HENNESSYBLACK

HENNESSYPRIVILÈGE

DISTRIBUTION • Priorities:750mlHennessyBlack,plus1additionalsize.

SHELF • Position:PlaceHennessyBlacktotherightofHennessyV.SandtotheleftofPrivilège.

• Facings:Minimumoftwoshelffacings.

FLOOR • LocateHennessyBlackdisplaysinthe#1positioninfrontofthestore,viewablefromthecounter.UtilizepriceburstsandPOSwhenauthorized.

Hennessy Black is the highly versatile new Cognac from the world’s leading Cognac house. Distinctively smooth with a fresh, light flavor, it provides additional ways to enjoy Hennessy, including mixed drinks, over ice or even neat. The presentation of Hennessy Black is a fresh, satisfying smoothness. On the nose, jasmine floral notes make a bold, immediate statement. Hints of citrus and honey follow, contributing a softer, warmer note. In the mouth, Hennessy Black retains these unexpected flavors, while releasing the cleansing characteristics of white flowers and fresh grapes. Patiently matured in old oak barrels, the Hennessy Black eaux-de-vie plays across the palate, revealing a surprising blend of marvelous flavors.

DISTRIBUTION • Priorities:Whereauthorized,secureinallaccountswhereHennessyV.Sisstocked.

SHELF • Position:Placeateyelevelandbehindregister.

• Facings:Lefttoright,V.S,BlackandPrivilège.

FLOOR • Withinsuper-premiumaccounts,displayPrivilègeinpremiumracksanddisplaycasesviewablefromthecounter.

Hennessy Privilège was inspired by the request of George IV, the future King of England in 1817.

Since then, Hennessey Privilège has maintained its stellar reputation for nearly two centuries.

Today, it’s recognized as the world’s favorite V.S.O.P cognac, revered for its harmonious and

well-structured blend. The pleasing aromas, balance and long-lasting finish exemplify its master

craftsmanship. The presentation of Hennessy Privilège begins with a crescendo of aromas on

the nose, such as the soft spices of vanilla, clove and cinnamon. These fragrances are followed

by delicate toast notes that arise from the maturation in oak barrels. On the palate, the natural

balance of strength and smoothness creates a harmonious blend, combining maturity with

vigor. The structure is softened by the suggestion of a fresh grape character. The highlight of

tasting Hennessy Privilège is its long-lasting finish, where the natural balance of the blend

deliciously unfolds. The smooth, subtle lingering of this remarkable finish is a testament to

superior cognac.

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HENNESSY EXECUTION GUIDELINES CONTINUED...

DISTRIBUTION • SecuredistributionforHennessyX.OinaccountsthatstockJohnnieWalkerBlue.

• SecuredistributionforParadis,ParadisImpérialandRichardHennessyinatleastoneSKUtomatch

RémyMartinLouisXIII.

SHELF • Position:Placewithinthepremiumcognacsets.

• Facings:Lefttoright,X.OParadis,ParadisImpérialandRichardHennessy.PlaceadjacenttoRémyMartinLouisXIII.

FLOOR • Withinpremiumaccounts,merchandiseHennessyhighermarquesinpreferredlocationwithinretailersuper-premiumsection.

Hennessy X.O The original X.O Cognac, exclusively created for the Hennessy family in 1870, a blend of 100 eaux-de-vie aged up to 30 years, creating a rich, refined yet powerful experience.

Hennessy Paradis Impérial Inspired by an 1818 as an Imperial gift for Tsar Alexander I of Russia, Hennessy’s Master Blender created Paradis Imperial: an exquisitely refined and elegant blend of more than 100 of Hennessy’s 19th and 20th century finest eaux-de-vie, aged between 25 and 130 years.

Hennessy Paradis Paradis named after Hennessy’s rarest eaux-de-vie cellar, an elegant blend of over 100 eaux-de-vie aged between 25-130 years, creating a spicy, floral spirit with a persistent finish.

Richard Hennessy Named in honor of the founder who created the House of Hennessy in 1765, Richard Hennessy is a rare cognac of over 150 eaux-de-vie aged up to 200 years, creating a masterpiece of complexity and subtlety.

HENNESSYPRESTIGERANGE

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FLOOR DISPLAYS

MERCHANDISING STANDARDS:

• Equip with authorized Hennessy price spots, programs or flow POS.

• Use only premium POSM materials, authorized or produced by Centiv.

• Keep display clean, stocked and refreshed.

• Cases cut and displays built neatly.

• Single product feature or Hennessy brand group.

CORRECT SIZE AND NUMBER OF CASES:

• Hennessy V.S 65% of display

• Hennessy Black 20% of display

• Hennessy Privilège 15% of display

• Product flow is left to right: Hennessy V.S, Black and Privilège

• Hennessy V.S in No. 1 location (most accessible)

DISPLAY LOCATION IN VISIBLE HIGH TRAFFIC LOCATION:

• “A” location: high traffic and visibility –not too early in traffic flow.

• “B” location: secondary to “A” standards, but satisfies some requirements.

• “C” location: does not meet any of above criteria.

HENNESSY DISPLAY DON’TS:

• Do not use third-party materials on displays.

• No holiday themed materials (e.g. garland, flags, etc.).

• Do not attach any print materials to cases.

• Do not co-merchandise with non-premium products or mixers. (No value brands or non-Coca-Cola or Pepsi products).

SMALL: UP TO 4 CASES

• Single stack of product or bin with case card

• Cut top case according to guidelines

• Use current case card

• Use branded price burst for Hennessy V.S

MEDIUM: 5-10 CASES

• Double stack of cases side by side

• Cut top cases according to guidelines

• Double identical case cards (if needed)

• Treat quarterly program materials as separate brands

• Use branded price burst(s) for Hennessy V.S

• Cut around label on front of case

LARGE (11-25 CASES) & EXTRA LARGE (MORE THAN 25)

• Stack cases together on end cap or island display

• Use current case cards and window kit

• Use branded price burst(s) for Hennessy V.S

• Only use current Hennessy program or case materials

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MERCHANDISING SUB-BRANDS

MERCHANDISING HENNESSY SUB-BRANDS (2 OR 3 BRANDS)

• Only use materials designed for the specific sub-brand - do not mix materials.

• Group product entirely by brand – do not stripe sub-brands in display.

• Place highest priced product in center.

• Hennessy V.S should have No. 1 display location (most accessible) and make up at least 2/3 of display.

QUARTERLY PROGRAMS

• Display pieces must be used with case cards and stacks (plus neckers if applicable).

• Use as center of display.

• Only use specified materials and only during approved program time.

• Ensure displays are in high-value area of store:

• High shopper traffic.

• Away from non-alcohol or general merchandise.

• Not adjacent to competition.

QUARTERLY DISPLAYS & SECONDARY SUB-BRAND DISPLAYS

• Treat quarterly programs, activations and limited edition products as sub-brands.

• Treat Hennessy V.S Limited Edition as separate brand – Never merchandise with Regular Label Hennessy V.S.

FPO

• Do not use display pieces in isolation.

• Do not mix sub-brands in same activation.

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MULTICULTURAL POS

Hennessy Cognac offers professional sales tools designed to drive awareness, visibility and sales in multicultural accounts. Most of the POSM materials were developed for a wide range of African-American, Hispanic and Asian markets, and are rendered universally effective via consumer brand recognition. Hennessy Merchandising Guidelines adhere across all tools and account types, and equally impact multicultural account sales when met to standard.

FOR EXAMPLE:

• Price-featured shelf spirits show 40% increase.

• Displays at regular price drive sales up on average 100-125%.

• POSM display with price feature drives sales up on average +600%.

• Display with feature ad, reduced price and POSM lifts sales upwards of 800%.

• 80% of shelf purchases are made between eye and waist level, making these shelves the No.1 priority for Hennessy.

MULTICULTURAL ACCOUNT KEY POSM MUST INCLUDE:

1. WINDOW & DOOR

• Window kit (Spanish or African-American Version)

• Door POSM (store hours) & posters

2. SHELF

• Hennessy (only) shelf talkers

3. DISPLAYS

• Displays placed in traffic flow and viewable from counter

• Case bins with case card

• Permanent merchandising racks

4. CHECKOUT COUNTER & AREA

• Change mat

• Counter cooler

• Counter wraps

• Lock box display

• Small-size rack

5. OTHER

• Hennessy digital tool kit

CASESTACKER

COUNTERCARD COUNTERCARD

CASECARD

PLEASE DRINK RESPONSIBLY. Imported Cognac Hennessy®, 40% Alc./Vol. (80˚). ©2013 Imported by Moët Hennessy USA, Inc., New York, NY. HENNESSY is a registered trademark.

CELEBRATES HISPANIC HERITAGE MONTH

HENNESSY V.S GINGER

1.5 oz Hennessy V.S

.5 oz Lime Juice

Top with Ginger Ale

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LOCK BOX & COUNTER MERCHANDISING

LOCK BOXES (Where legal)

• Highly visible, unobstructed location

• Independents: within register eyesight

• Chains: close proximity to liquor shelf set

• Hennessy products only (no other MH products)

• Same guidelines as shelf sets (progress left-to-right)

HENNESSY V.S COOLERS (Where legal)

• Only sizes: 100ml, 200ml, 375ml

• Locate near register within consumer view

• Must always be plugged in

HENNESSY 200ML DISPLAYS

• Use only proper Hennessy signage and POS

• Location closest to register

• Properly price with authorized Hennessy price spots

• Do Not place shippers in Lock Boxes, Loose bottles only

• Do not attach anything to or place anything on top of the Lock Box (including Hennessy products or materials)

• Do not include other brands (no other MH products)

• Do not attach other materials (magnets, posters, etc.)

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WALLSCAPE

OUTDOORWRAP

COUNTERWRAPS

LARGE(9FT.) MEDIUM(6FT.) SMALL(3FT.)

LAZYSUSANDOORWRAP

COUNTER WRAP & WALL SCAPE GUIDELINES

INSTALLATION GUIDELINES:

• Wrap the entire counter, including the edges.

• Ensure that the wrapped surface is as smooth as possible.

• For countertop, use Hennessy V.S logo with website URL.

• URL should be centered under the Hennessy V.S logo.

• Never crop logo at any point - present it in full, or not at all.

APPROVAL PROCESS:

• Approve all creative materials with local Trade Marketing contact prior to installation.

• When in doubt, contact MH USA local Trade Marketing team.

• Counter wraps should only be executed by Brand Team approved vendor.

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HIGH IMPACT WINDOWS

ALL HIGH IMPACT WINDOWS SHOULD BE APPROVED BY TRADE MARKETING.

GUIDELINES FOR HIGH-IMPACT WINDOW KIT DESIGN:

• Quality pictures required

• Identify limitations: size, power, lighting, security gates, etc.

• Precise measurements

KEY CONSIDERATIONS:

• Does anything obstruct window?

• Are there security gates that cover window?

• What is in adjacent windows?

The brand team is happy to help with multiple window designs.

WINDOW KIT STANDARDS:

• Each window should contain only one Hennessy sub-brand.

• Do not merchandise sub-brands together.

• Different sub-brand permitted in separate windows.

• Each sub-brand should have separate materials.

• Each sub-brand should have its own distinct presentation.

CLEAN, CLEAR COMMUNICATION:

• Keep window area as clean as possible.

• Keep materials current and fresh.

• Keep design simple.

DO NOT USE THIRD-PARTY MATERIALS.

• Only use black backdrops

• No Corobuff

PRESENTATION:

• Always present Hennessy as a luxury brand.

• Keep presentation focus at eye level.

• Program all materials and quarterly displays within scheduled timing.

• No holiday-themed Corobuff, garland or decorative lights.

• Keep window bays completely clear of trash and clutter.

• Only use current Hennessy materials.

• Do not create new materials without brand team approval.

NOREDBRICKCOROBUFF

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DIGITAL / E-COMMERCE GUIDELINES

GUIDELINES:

• Retail websites must adhere to MHUSA Digital Guidelines.

• Correct, high-quality representation is essential.

• Websites must feature up-to-date images and product descriptions.

CONTENT:

• Only use high-resolution images.

• For current images, contact MHUSA Representative or download from MHUSA distributor portal.

• Correct spelling is mandatory. (No phonetics)

• Include current tasting notes, awards and accolades.

• Include all key criteria, including:

• Brand full name • Product

• Country • Type

• Style • Tasting Notes

• Quotes • Marquee

• Ratings & Comments

LANDING PAGES:

• Highlight newest campaigns and remove past campaigns.

• Use banner ads with current images and promotions.

SEARCH RESULTS:

• Proper functioning search engine

• Accurate search results and listings

• Correct spelling

PRODUCT CATALOG:

• Professional images

• Tasting notes and ratings

• Product information

• Brand heritage (articles, videos, images)

• Promotional banners and links

Note: Please provide link of final layout to Trade Marketing for approval prior to posting.

PRIVILÈGEPAIRINGSSPLASHPAGE OSGEMEOSBANNERAD

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PERFECT STORE POSFORMATS

1. Window & Door

• High-impact window kit

• Window kit

• Door POS & posters

2. Shelf

• Shelf merchandising (MHUSA standard)

• Eye-level shelf set (& behind-counter set)


3. Displays

• Displays located in traffic flow and viewable from counter


• End caps with case card

• Merchandising racks

4. Checkout Counter & Area

• Lock box

• Small-size rack

5. Other


• Hennessy door display

• Hennessy wall display

*Large store (over 2,000 sq. ft.) – has considerable

merchandising space, and includes large liquor stores,

grocery stores, drug stores, liquor chains, club stores, mass

merchandise and military PX stores.

*Small store (under 2,000 sq. ft.) –has limited merchandising

space and includes local stores, neighborhood accounts,

small liquor departments (no merchandising outside dept.)

and convenience stores.

*Bank, Bullet Proof, Limited Access, Counter Only sales

(>2000 sq. ft. ) Product is secured and not available unless

assisted by store clerk.

1. Window & Door

• High-impact window kit

• Window kit

• Door POS (store hours) & posters

2. Shelf




3. Displays


• Permanent merchandising racks


• Change mat

• Counter cooler

• Counter wraps

• Lock box display

• Small-size rack

5. Other




1. Window & Door

• Window kit

• Door POS (store hours) & posters

2. Shelf




• Posters – installed on partition in decision zones

3. Displays

• Mock display bin with case card


• Change mat

• Counter cooler

• Counter wraps

• Lazy Susan

5. Other




LARGE* STORE FORMAT KEY DISPLAY & POS MERCHANDISING AREAS MUST INCLUDE:

SMALL* STORE FORMAT KEY DISPLAY & POS MERCHANDISING AREAS MUST INCLUDE:

LIMITED ACCESS* STORE FORMAT KEY DISPLAY & POS MERCHANDISING AREAS MUST INCLUDE:

FPO

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LARGE STORE MERCHANDISING

1. PRE-SHOPPING

Marketing (to MHUSA standards) via retailer ads, features, and secondary merchandising (designated accounts) such as retailer website, flyers, and loyalty programs.

2. STOREFRONT

Hennessy accounts for 30% of all window displays and signage, e.g., Open/Closed signs, posters, mats, permanent signage, banners, window wraps and wallscapes.

3. PRE-SHELF

Hennessy accounts for 25% of displays, e.g., interruptive mass display, racks/bins, sampling, VAP, display POS and permanent brand signage.

4. SHELF-SHOPPING

See MHUSA Shelf Guidelines for each brand. Shelf POS and visibility includes coupons, shelf talkers, bottle neckers, cooler door POS and permanent signage.

5. IMPULSE CORRIDOR

On route towards checkout counter, Hennessy visible in 25% of displays, focusing on racks/bins, cross-merchandising VAP, gift centers, cognac locked racks and limited edition displays.

6. CHECKOUT COUNTER

Hennessy accounts for 25% of all counter displays, e.g., small-size displays, counter wraps, entertainment guides, change mats, penny tray, behind-counter visibility and small display stacks.

COUNTER WRAP

END CAPCASE CARD

POSTER

The future you can have, must have,

cannot stop until you do have.

W H AT ’ S YO U R W I L D R A B B I T ?


SHELF TALKERS

14

LOCK BOX

SMALL STORE MERCHANDISING

1. STOREFRONT

Hennessy accounts for 30% of all window displays and signage, e.g., Open/Closed signs, posters, mats, permanent signage, banners, window wraps and wallscapes.

2. PRE-SHELF

Hennessy accounts for 25% of displays, e.g., interruptive mass display, racks/bins, sampling, VAP, display POS and permanent brand signage.

3. SHELF-SHOPPING


4. CHECKOUT COUNTER


WINDOW KIT

STORE HOURS

COUNTER WRAP

CASE CARD

POSTER





SHELF TALKERS

15

LIMITED ACCESS STORE MERCHANDISING

1. STOREFRONT

Hennessy accounts for 30% of all window displays and signage, e.g., Open/Closed signs, posters, mats, permanent signage, banners, window wraps and wallscapes. 2. SHELF-SHOPPING


3. CHECKOUT COUNTER


COUNTER WRAPLAZY SUSAN

POSTER





SHELF TALKERS



WINDOW KIT

FPO

Documents

OFF-PREMISE MERCHANDISING GUIDELINESFollowing are set guidelines for effectively merchandising Hennessy Cognac, including display rules and precise dos and don’ts to maximize brand