Please be advised that some freight and exchange rates will be changing effective July 2, 2018.

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TO: All Domestic Suppliers, Industry Representatives and Specialty Wine Stores FROM: Manitoba Liquor and Lotteries Purchasing Administration Department DATE: April 26, 2018 RE: Changes to Freight and Exchange Rates effective: July 2, 2018 NOTE: New price change submission mailbox, pricechange@mbll.ca Dear Sir or Madam: Please be advised that some freight and exchange rates will be changing effective July 2, 2018. Manitoba Liquor & Lotteries is giving all suppliers and marketing representatives the opportunity to re-quote invoice costs in order to maintain desired retail prices. Please see the attached schedules for new rates. Please note we have a new price change submission mailbox. Price change requests must be completed on the attached new MBLL Price Change Request Form, and submitted by Friday, May 11, 2018 to pricechange@mbll.ca. Updated pricing calculator and price change submission forms are attached; please refrain from using any old versions as they will not be accepted. In order to increase accuracy, please ensure your submission is completed in a single Excel worksheet (on a single tab). Effective July 2, 2018, the retail price overrides will be removed from all Fringe (C) items, and you will now be required to submit pricing information along with General (A) and Specialty (B) items. Listed Fringe (C) items will no longer be eligible for case cost adjustments on open purchase orders outside of the established price change schedule and process. If you have any questions, please contact Product Pricing. Regards, Laurie Kennedy, Manager, Supply Chain Administration

FOREIGN CURRENCIES EXCHANGE RATES As of July 2, 2018 RATE IN CANADIAN $ FOR COUNTRY CURRENCY PRICING PURPOSES Australia Dollar $1.00 European Community Euro $1.58* New Zealand Dollar $0.95 South Africa Rand $0.10 United Kingdom Pound $1.80* United States Dollar $1.27* Note: All other exchange rates are actual Bank of Canada rates at time of receipt of goods.

STANDARD DOMESTIC FREIGHT RATES (Subject to change without notice) ZONES F.O.B. POINT RATE PER LITRE Quebec Zone 1 MONTREAL / POINTE CLAIRE $0.20 Quebec Zone 2 MONTREAL / WINE TOTES $0.30 Quebec Zone 3 MONTREAL SAQ & MISC. $0.45 Quebec Zone 4 VALLEYFIELD $0.24 Ontario Zone 1 BRAMPTON BACARDI $0.19* Ontario Zone 2 HAMILTON / NIAGARA $0.30 Ontario Zone 3 TORONTO / MISSISAUGA - Constellation $0.19* Ontario Zone 4 WINDSOR / WALKERVILLE, CORBY $0.35* Ontario Zone 5 WINONA / GRIMSBY $0.29 Ontario Zone 6 ONTARIO MISC $0.62 Alberta Zone 1 EDMONTON / ST. ALBERT $0.10* Alberta Zone 2 CALGARY $0.11* Alberta Zone 3 LETHBRIDGE $0.30 B.C. Zone 1 B.C. MISC. - SUMAC, OKANAGAN CONSOLIDATION $1.22 B.C. Zone 2 OLIVER - Constellation $0.28 B.C. Zone 3 VANCOUVER - BCLDB, MISCELLANEOUS $0.27* B.C. Zone 4 VANCOUVER - MARK ANTHONY $0.27* B.C. Zone 5 VANCOUVER HILLEBRAND WESTLINK $0.30* Atlantic Zone 1 ATLANTIC PROVINCES $1.34 Manitoba Zone 1 WETT SALES WAREHOUSE $0.00 - Ontario Bloomfield Exworks - Ontario Concord FCA - Saskatchewan - Saskatoon - Regina

IMPORT FREIGHT RATES PER LITRE UNITED STATES LOCATION RATE PER LITRE FOR PRICING PURPOSES ARKANSAS - Fort Smith $0.40* CALIFORNIA - Modesto - Gallo $0.51* CALIFORNIA American Canyon $0.56* ILLINOIS $0.20* INDIANA $0.45 KENTUCKY $0.49* MAINE $0.86 MARYLAND $0.76 MICHIGAN $0.24 MINNESOTA $0.18* MISSOURI $1.40 NEW JERSEY $0.82 NEW YORK $0.48* OHIO $0.63 PENNSYLVANIA $0.35 TENNESSEE $0.47 WASHINGTON $1.75 WISCONSIN $0.45 - Florida - Miami - South Dakota - NOTE: Rates are subject to change without notice

IMPORT FREIGHT RATES PER LITRE COUNTRY RATE PER LITRE FOR PRICING PURPOSES COUNTRY RATE PER LITRE FOR PRICING PURPOSES Argentina FCA & FOB $0.96 Netherlands $0.60 Australia FCA & FOB $0.75* New Zealand FCA $0.83* Australia Exworks $1.17* Poland $0.66* Austria $1.63* Portugal FCA & FOB $0.93 Belgium $0.78* Portugal Exworks & Islands $1.20 Chile FCA & FOB $0.66 South Africa FCA & FOB $0.80 Czech Republic $2.00 Spain - Barcelona - FCA & FOB $0.80* Denmark $1.93* Spain Exworks $1.01* France $1.00* Sweden FOB $0.60* Germany FCA & FOB $0.54 Sweden Exworks $1.70 Germany Exworks $0.83 United Kingdom FCA & FOB $0.58 Greece Exworks, FCA & FOB $1.50* United Kingdom Exworks $0.73 Hungary $2.29* Uruguay (thru Chile) $1.72 Ireland Exworks, FCA & FOB $0.69 Italy $0.85* Jamaica FOB $0.79 Jamaica Exworks $0.83 - Switzerland Note: Rates subject to change without notice.