Accelerating Steps to Strengthen Returns

• Increase top line growth

• Realign organization/sharpen management focus

• Reduce cost structure

• Improve financial returns

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• In 2003, then, we took important steps that, while hurting our near-term results, were necessary to improve our competitiveness and ability to once again generate superior returns.

• These steps are aimed at achieving four key goals:

• Increasing topline growth. Our objective in the short-term is to achieve demand growth that at least tracks the market growth rate, which we believe is 4%-5% in depletion volume but somewhat less on revenue. In fiscal 2003 our wholesale depletions grew 1.5% and net revenues were up 3%. We intend to improve both.
• Second, we are realigned management responsibilities to streamline decision-making, improve accountability and reduce costs.
• We are also reducing cost structures throughout the company, both our product costs, and our SG&A expenses – the exception here is in A&P spending, which needs to increase.
• And we are steadily improving our Balance Sheet -- mainly through surplus asset sales – to increase overall returns.