8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

September 25, 2014

TRUETT-HURST, INC.

______________

(Exact name of registrant as specified in its charter)

Delaware	333-187164	46-1561499
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

125 Foss Creek Circle, Healdsburg, CA 95448

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (707) 431.4436

(Former name or former address, if changed since last report): Not applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On September 25, 2014, Truett-Hurst Inc. (NASDAQ: THST), announced its financial results for the 2014 fiscal year ended June 30, 2014. A copy of Truett-Hurst Inc.’s press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this report, including the press release and presentation furnished as Exhibits 99.1 and 99.2 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. In addition, the exhibits furnished herewith contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibits.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

The exhibits listed below are furnished pursuant to Item 2.02 hereof and shall not be deemed “filed” under the Securities Exchange Act of 1934.

99.1 Press release issued by Truett-Hurst, Inc. on September 25, 2014.

99.2 Truett-Hurst, Inc. Fiscal 2014 Teleconference Presentation, dated September 25, 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Truett-Hurst Inc.

By:	/s/ Paul Forgue
Paul Forgue
Chief Financial Officer & Chief Operations Officer

Date: September 25, 2014

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press release issued by Truett-Hurst, Inc. on September 25, 2014.
99.2	Truett-Hurst, Inc. Fiscal 2014 Teleconference Presentation, dated September 25, 2014.

EX-99.1

EXHIBIT 99.1

 

September 25, 2014

NASDAQ: THST

Truett-Hurst, Inc. Reports Fiscal 2014 Results

Net sales increased 29% to $22.1 million,

Gross margins expanded to 34% from 33%

Healdsburg, California (September 25, 2014) – Truett-Hurst Inc. (NASDAQ: THST) today reported results for its fourth quarter and fiscal year 2014, which ended June 30. Truett-Hurst, Inc. operates an innovative and fast growing super-premium and ultra-premium wine sales, marketing and production company based in the acclaimed Dry Creek and Russian River Valleys of Sonoma County, California.

Fiscal 2014 Vs. Prior-year Period

· Overall revenues were up 29% to $22.1 million.

· Overall gross margins expanded to 34% up from 33%

"Truett-Hurst, Inc. is a young, emerging growth wine company and once again this year our team delivered solid revenue growth while increasing overall gross margins and expanding our customer base. Operating expenses came in as planned for the year even after being negatively impacted by non-recurring costs associated with the insolvency of a supplier. Consistent with our strategy to drive sales through organic growth of our existing brands and customers, new customer acquisition and new product development we’re expanding our sales team." said President and CEO Phillip L. Hurst. "New marketing strategies and innovative brand development have enabled us to win new customers, expand offerings with current customers, and grow our revenue for the sixth consecutive year." Mr. Hurst added, "As we head into fiscal 2015 I’m excited that our strategic plan is in sync with the top wine retailers around the world who are looking to grow through expanded innovative retailer exclusive brands like the California Square square bottle, the upcoming California Winecraft premium flavored wine-in-a-can and lower environmental impact green packaging like our Paperboy paper bottle.”

· Wholesale net sales of $15.8 million, up 27% compared to the prior-year period

· Direct to consumer net sales of $4.0 million, up 26% compared to the prior-year period

· Internet net sales of $2.2 million, up 43% compared to the prior-year period

Truett-Hurst, Inc. • 125 Foss Creek Circle • Healdsburg, CA 95448 • tel: 707.431.4436 • fax: 707.431.4402 • email: ir@truetthurstinc.com

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

Wholesale net sales increased compared to the prior-year period due to increased case sales of existing brands and new brand introductions: California Square and PaperBoy. Direct to consumer net sales increased compared to the prior-year period due to increased wine club memberships and increased tasting room traffic. Internet net sales increased compared to the prior-year period and the increase was attributable to increased website traffic, internet marketing and sales mix with higher priced, limited production wines. In addition, internet net sales had twelve-months of operations compared to only ten months in FY13 (acquired August 2012). International sales were 8% of our net wholesale sales compared to 2% of our net wholesale sales in the prior-year period.

Operating Loss and Net Loss:

· Operating loss of $1.2 million compared to $0.4 million operating loss in the prior-year period.

· Net loss of $0.5 million compared to $0.0 million in the prior-year period

Our loss was driven primarily by the impact of one-time charges of $0.5 million associated with the insolvency of a supplier, previously announced in our filings. Operating expenses for fiscal 2014 (excluding the impact of the non-recurring items and provision related to the insolvent supplier) were 37% of net sales as compared to 34% of net sales in the prior-year period. As planned, the increase in operating costs is a function of building the necessary infrastructure and team to support our next phase of growth. Sales and marketing expense increased $1.4 million to $5.0 from $3.6 million for the prior-year period. The increase was primarily due to our continued expansion of brand related programming and promotions, increased sales personnel and related expenses, and marketing expenses associated with increased sales. General and administrative expense increased $1.1 million to $3.2 million from $2.1 million for the prior-year period due primarily to the expansion of our infrastructure including increased headcount and expenses related to implementing a new ERP system, costs of personnel changes and costs of being a publicly held company.

Paul Forgue, CFO and COO, states “Our fiscal 2014 results reflect both strong revenue growth and expanding gross margin contribution. Our growth speaks to the strength of our brands, the excitement around our innovation, and the quality of our wines. It is exciting to see how well our strategy and products are resonating with retailers and their customers. We remain committed to executing our long term growth plan.”

Recent Corporate Developments and Recognition

· In August 2013, we launched California Square, an ultra-premium wine program. It was featured at the 65th Annual Emmy Awards® Ceremony and presented to celebrities and VIPs. The California Square wine portfolio includes: a Russian River Valley Chardonnay, a Paso Robles Cabernet Sauvignon, and a Paso Robles three red blend. California Square has been introduced into the national and international broad markets during the fourth quarter of FY14, at the request of several top key retailers.

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

· In October 2013 we introduced Colby Red, a co-ownership trademark program with wine industry veteran Daryl Groom and is cause marketing brand based on Colby Groom’s struggles with congenitive heart defects and two open heart surgeries. Colby and his winemaker dad, Daryl launched Colby red in 2012 to target the fast growing $10 price category and give a portion of the profits to heart health charities which achieved $500,000 in donations in 2014. The brand is very well received by both retailer buyers and their customers.

· In November 2013, we launched PaperBoy, the first paper wine bottle in the world. PaperBoy’s bottle is made from 100% recycled cardboard and has a plastic insert with proven “bag in a box” technology. The package is 85% lighter than a glass bottle and is easily recyclable. Its carbon footprint is significantly smaller than glass and provides an easy alternative to enjoying wine outdoors when glass is prohibited. PaperBoy has been introduced to several top key retailers in the national and international markets.

· We continue to receive positive feedback from our retailers, national publications and newspapers for our wine quality and packaging innovation. In December 2013, Robert Parker, one of the industry’s most highly regarded wine critics, evaluated and rated selected VML wines (Wine Advocate #210). Mr. Parker not only provided 90 point plus scores but also favorably commented on our innovative design and packaging. We believe these scores and the resulting consumer awareness of our brands can be leveraged by our distributors with industry gate keepers to expand points of distribution in the marketplace.

· In August 2014, Safeway expanded its partnership with Truett-Hurst and added three new listings: Bewitched Reserve Pinot Noir, Bewitched Reserve Chardonnay and Stonegate Cabernet Sauvignon.

· In September 2014, we announced that Total Wines & More, “America’s Wine Superstore” will be adding several new Truett Hurst, Inc. products to their wine listings. The latest brands added to their shelves include; Mad Duck Sauvignon Blanc, Inconspicuous Old Vine Lodi Zinfandel, Eden's Eve by Eden Ridge and The One Armed Man, a reserve level of Truett-Hurst's The Fugitive.

· Also in September 2014, we announced that Kroger, with over 2,600 stores under nearly 2 dozen banners, will be launching Truett Hurst’s California Winecraft project which are delicious, single serving ready-to-drink wine based beverages in craft cans pattered on classic mixed wine combinations that are world-wide favorites.

Earnings Call

Truett-Hurst Inc.’s management will host a conference call today, September 26, 2014, at 10:00 a.m. PST (1:00 p.m. EST) to discuss the Company's financial results. To listen to the conference call, dial in approximately ten minutes before the scheduled call to 1.877.870.4263 or international at 1.412.317.0790 and request Truett-Hurst 2014 Results Call or visit our webcast link: http://www.videonewswire.com/event.asp?id=100418. A replay of the call will be available, to listen to the replay, dial US Toll Free: 1.877.344.7529 or International Toll: 1.412.317.0088 and enter conference number: 10052113. The call will be available one hour after the end of the conference call through October 10, 2014 at 9:00 am ET.

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

Note Regarding Consolidated Financial Statements

The fiscal 2014 results referred to in this report represent results on a consolidated basis that includes both the results of the Truett-Hurst, Inc. with those of H.D.D. LLC (“LLC”) and provide a full-year presentation for comparability purposes. For the fiscal 2013 period the LLC’s period is from July 1, 2012 to June 25, 2013 and Truett-Hurst, Inc.’s period is from June 26, 2013 to June 30, 2013. 

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

TRUETT-HURST INC. AND SUBSIDIARIES

(Prior to June 26, 2013, H.D.D. LLC and Subsidiary)

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)

	Years Ended June 30,
	2014			2013
Sales	$	22,564		$	17,587
Less excise tax		(507	)		(425	)
Net sales		22,057			17,162
Cost of sales		14,628			11,496
Gross profit		7,429			5,666
Operating expenses:
Sales and marketing		5,012			3,592
General and administrative		3,169			2,115
Non-recurring		-			284
Provision for loss of deposit		490			-
Bulk wine sales, net (gain) loss		(2	)		30
Sale of assets, net (gain) loss		(1	)		18
Total operating expenses		8,668			6,039
Loss from operations		(1,239	)		(373	)
Other income (expense):
Interest expense, net		(170	)		(356	)
Other		(56	)		110
Total other income (expense)		(226	)		(246	)
Loss before income taxes		(1,465	)		(619	)
Income tax (benefit) expense		(181	)		2
Net loss before non-controlling interests		(1,284	)		(621	)
Less: Net loss attributable to non-controlling interest: The Wine Spies, LLC		(118	)		(25	)
Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC		(1,166	)		(596	)
Less: Net loss attributable to non-controlling interest: H.D.D. LLC		(638	)		(596	)
Net loss attributable to Truett-Hurst, Inc.	$	(528	)	$	-
Net earnings per share:
Basic and diluted	$	(0.15	)	$	-
Weighted average shares used in computing net loss per share:
Basic and diluted		3,621,455			2,700,000

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

TRUETT-HURST INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	June 30,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	5,567		$	11,367
Accounts receivable		3,300			2,816
Inventories		17,179			13,222
Bulk wine deposit		1,424			-
Other current assets		161			245
Total current assets		27,631			27,650
Property and equipment, net		5,553			5,383
Goodwill		134			134
Intangible assets, net		629			706
Other assets, net		381			259
Total assets	$	34,328		$	34,132
LIABILITIES and STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit	$	8,685		$	6,887
Accounts payable and accrued expenses		3,194			3,833
Due to related parties		56			71
Current portion of deferred tax liability		-			96
Current maturities of related party notes		67			70
Current maturities of long-term debt		333			250
Total current liabilities		12,335			11,207
Deferred rent liability		48			53
Deferred tax liability, net of current portion		-			127
Related party notes, net of current maturities		-			67
Long-term debt, net of current maturities		3,527			3,454
Total liabilities		15,910			14,908
Commitments and contingencies
Stockholders' equity
Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized and zero issued and outstanding		-			-
Class A common stock, par value of $0.001 per share, 7,000,000 authorized and 3,750,472 issued and outstanding at June 30, 2014 and 2,700,000 at June 30, 2013		4			3
Class B common stock, par value of $0.001 per share,1,000 authorized and 9 issued and outstanding at June 30, 2014 and 10 at June 30, 2013		-			-
Additional paid-in capital		14,057			10,977
Accumulated deficit		(3,995	)		(3,467	)
Total Truett-Hurst, Inc. equity		10,066			7,513
Non-controlling interests		8,352			11,711
Total equity		18,418			19,224
Total liabilities and stockholders' equity	$	34,328		$	34,132

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

TRUETT-HURST INC. AND SUBSIDIARIES

(Prior to June 26, 2013, H.D.D. LLC and Subsidiary)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years ended June, 30
	2014			2013
Cash flows from operating activities:
Net loss	$	(1,284	)	$	(621	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		540			479
Gain (loss) on sale of assets		1			-
Deferred rent		(5	)		(5	)
Deferred taxes		(184	)		-
Non-controlling interest Wine Spies		-			25
Loss (gain) on fair value of warrant and interest rate swap		44			(120	)
Stock-based compensation		436			174
Contributed rent		-			36
Changes in operating assets and liabilities, net
Accounts receivable		(484	)		(1,558	)
Inventories		(3,957	)		(6,369	)
Bulk wine deposit		(1,424	)		333
Prepaids and other current assets		40			(124	)
Accounts payable and accrued expenses		(639	)		2,017
Net cash used in operating activities		(6,916	)		(5,733	)
Cash flows from investing activities:
Acquisition of property and equipment		(547	)		(637	)
Acquisition of intangible and other assets		(209	)		(252	)
Acquisition of The Wine Spies, LLC		-			(349	)
Disposal of assets		-			37
Proceeds from sale of assets		2			-
Net cash used in investing activities		(754	)		(1,201	)
Cash flows from financing activities:
Net proceeds from (payments on) line of credit		1,798			5,123
Advances from related parties		-			(6	)
Net proceeds (payments to) related parties		(15	)		-
Proceeds from related party notes		-			350
Payments on related party notes		(70	)		(817	)
Proceeds from long-term debt		156			3,882
Payments on long-term debt		-			(3,607	)
Payments on amount due factor		-			(869	)
Proceeds from exercise of warrant		-			499
Proceeds from sale of Class A common stock (IPO)		-			15,143
Payment of issuance costs associated with IPO		-			(1,567	)
Issuance of Class A common stock (IPO)		1			3
Net cash provided by financing activities		1,870			18,134
Net increase (decrease) in cash		(5,800	)		11,200
Cash at beginning of period		11,367			167
Cash at end of period	$	5,567		$	11,367
Supplemental disclosure of cash flow information:
Cash paid for interest	$	151		$	343
Cash paid for income taxes	$	21		$	2
Supplemental disclosure of non-cash transactions
Contributed rent for membership interest	$	-		$	36
Fair value of warrant upon exercise	$	-		$	196
Recharacterization of contributed capital	$	-		$	5,886

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

About Truett-Hurst Inc.

Truett-Hurst, Inc. (NASDAQ: THST, www.truetthurstinc.com) is a holding company and its sole asset is the controlling equity interest in H.D.D. LLC., an innovative and fast-growing super-premium, ultra-premium and luxury wine sales, marketing and production company based in the acclaimed Dry Creek and Russian River Valleys of Sonoma County, California. Truett-Hurst, Inc. is headquartered in Healdsburg, California.

Forward-Looking Statements

This press release and our earnings conference call for the fiscal year ended June 30, 2014 contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, that are made as of the date of this press release based upon our current expectations. All statements, other than statements of historical fact, regarding our strategy, future operations, financial position, estimated revenue, projected costs, prospects, plans, opportunities, and objectives constitute “forward-looking statements.” The words “may,” “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “potential” or “continue” and similar types of expressions identify such statements, although not all forward-looking statements contain these identifying words. Such forward-looking statements include expectations regarding revenue, income, expenses, and other guidance for the fiscal year ending June 30, 2015 and any future periods. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to, a reduction in the supply of grapes and bulk wine available to us; significant competition; any change in our relationships with retailers which could harm our business; we may not achieve or maintain profitability in the future; the loss of key employees; a reduction in our access to, or an increase in the cost of, the third-party services we use to produce our wine; credit facility restrictions on our current and future operations; failure to protect, or infringement of, trademarks and proprietary rights; these factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

We are expected to file our annual report on Form 10-K filed on September 29, 2014. For additional information, see our prior year annual report on Form 10-K filed on September 27, 2013, or our other reports currently on file with the Securities and Exchange Commission, which contain a more detailed discussion of risks and uncertainties that may affect future results. We do not undertake to update any forward-looking statements unless otherwise required by law.

Truett-Hurst Inc. Announces Fiscal 2014 Financial Results

For more information, contact:	For more information, contact:
Truett-Hurst Inc.	Truett-Hurst Inc.’s Investor Relations
Paul Forgue,	Wil Lindgren,
Chief Financial Officer & Chief Operations Officer	Director of Reporting and Finance
Phone: 707.431.4423	Phone: 707.431.4436
Fax: 707.395.0289	Fax: 707.395.0290
Email: paul@truetthurstinc.com	Email: ir@truetthurstinc.com

EX-99.2

EXHIBIT 99.2

Truett - Hurst, Inc. FY14 Earnings Call September 26, 2014 NASDAQ: THST 1

2 Safe Harbor Statement This presentation (including the presentation and any subsequent questions and answers) contains statements that are forward - looking within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 . Such forward - looking statements are only predictions and are not guarantees of future performance . Any such forward - looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of Truett - Hurst, Inc . and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward - looking statements . These risk factors, include, but are not limited to, a reduction in the supply of grapes and bulk wine available to us ; significant competition ; any change in our relationships with retailers could harm our business ; we may not achieve or maintain profitability in the future ; the loss of key employees ; a reduction in our access to, or an increase in the cost of, the third - party services we use to produce our wine could harm our business ; credit facility restrictions on our current and future operations ; failure to protect, or infringement of, trademarks and proprietary rights ; these factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report or detailed in our periodic filings (including Forms 8 - K, 10 - K and 10 - Q) or other documents filed with the Securities and Exchange Commission . For more detailed information on us, please refer to our filings with the Securities and Exchange Commission, which are readily available at http : //www . sec . gov, or through the our Investor Relations website at http : //www . truetthurstinc . com . We are expected to file our annual report on Form 10 - K filed on September 29 , 2014 . For additional information, see our prior year annual report on Form 10 - K filed on September 27 , 2013 , or our other reports currently on file with the Securities and Exchange Commission, which contain a more detailed discussion of risks and uncertainties that may affect future results . We do not undertake to update any forward - looking statements unless otherwise required by law .

Agenda • CFO/COO Introduction • FY2014 Truett Hurst Overview • Global/US Wine Market • FY2014 Financial Highlights • New Retail Exclusives • Q&A

CFO/COO Introduction • Paul Forgue , joins Truett Hurst from global advisory firm Alvarez & Marsal where he spent 10 years providing advisory and management services throughout the world. • Started career with PricewaterhouseCoopers in Houston, TX after completing his MBA at Rice University. • Has been a part of the Sonoma County community for almost 15 years 4

FY 2014 Overview: ― Revenue growth of 29% with net sales of $22 million (an increase of $4.9 million versus prior year) ― Overall gross margin percent increased to 34% from 33% and gross profit dollars grew 31% to $7.4 million (an increase of $1.8 million versus prior year) ― Operating costs of $8.6 million ― $1.4 million incremental investment in sales and marketing ― $1.0 million increase in general and administrative ― $0.5 million in one time costs related to supplier insolvency 5

Global Consumption 6

7 1991 - 2011 CAGR = 4.1% (consumption $)

Innovation is driving growth 8 Source: Gomberg Fredrickson January 30, 2012

THST Market Dynamics ― Customer Base: ― We now sell to 3 of the top 5 food retailers ― Exclusive Brand/Private Label Focus: ― Private label = 23% of sales in top 30 retailers ($150 billion in 2009 and projected to hit $209 billion in 14’)* ― Private label wine = 3 - 5% of total US wine sales ― Top retailers targeting 10 - 20% wine ― Gross Profit Margin: ― We expect GM% to continue to increase by leveraging our increasing purchasing power with suppliers, capitalize on the current supply dynamics of California wine grapes, implement targeted price increases ― Operating Costs: ― We expect to see operating costs as a total % of sales decreasing as we leverage our fixed costs (including public company costs), develop efficiencies via our ERP system, reduce growth in headcount 9 *Source – Private Label Buyer Magazine

Growth Plans for 2015 • New Customer Acquisition – Target top 15 US wine retailers – Reduce concentration risk – Build much broader base of business • Product Line Extensions – Existing customers expanding offerings • Innovation – Square – going broad market while maintaining initial distribution – Wraps – expanding to broad market – Paper – experienced some difficulty, strong broad market interest – Cans – helped us close a big new customer • Combination of US market dynamics+ company strategy = continued growth 10

11 Truett Hurst Performance (Prior to June 26, 2013, H.D.D. LLC and Subsidiary) Net Revenue: Gross Profit: 69.8% 70.4% ― Outperformance vs. Industry ― Gaining market share CAGR: 5,402 12,689 17,162 22,057 1,501 3,075 5,666 7,429 - 5,000 10,000 15,000 20,000 25,000 FY 11 FY 12 FY 13 FY 14 Net Sales Gross Profit

FY 2014 FINANCIAL HIGHLIGHTS

FY14 Financial Highlights 13 2014 2013 YOY D Q1 Q2 Q3 Q4 FY FY B / (W) % Net sales 5,386 5,996 5,160 5,515 22,057 17,162 4,895 28.5% Gross profit 1,789 2,121 1,752 1,767 7,429 5,666 1,763 31.1% Gross margin % 33.2% 35.4% 34.0% 32.0% 33.7% 33.0% 0.7% Sales and marketing 1,051 1,280 1,252 1,429 5,012 3,592 (1,420) General and administrative 839 707 738 885 3,169 2,115 (1,054) Other (including provision for loss on deposit) - (1) 400 88 487 332 (155) Total operating expenses (1) 1,890 1,986 2,390 2,402 8,668 6,039 (2,629) 43.5% Net income (loss) before non-controlling interests (139) 111 (625) (631) (1,284) (621) (663) (1) Non-cash stock compenstion expense: Sales and marketing 106 78 40 117 341 156 (185) General and administrative 8 9 11 67 95 18 (77) 114 87 51 184 436 174 (262) Quarter over Quarter Changes: FY 2013 Net Sales 5,151 3,411 3,574 5,026 17,162 14 vs. 13 % increase 4.6% 75.8% 44.4% 9.7% 28.5%

14 FY14 Financial Highlights 2014 2013 YOY D Q1 Q2 Q3 Q4 FY FY B / (W) % Net Sales Wholesale 4,022 4,357 3,511 3,918 15,808 12,427 3,381 27.2% Direct to Consumer 928 1,091 993 1,026 4,038 3,193 845 26.5% Internet 436 548 656 571 2,211 1,542 669 43.4% 5,386 5,996 5,160 5,515 22,057 17,162 4,895 28.5% Gross Profit Wholesale 1,055 1,279 895 911 4,140 3,147 993 31.6% Direct to Consumer 557 658 608 650 2,473 1,837 636 34.6% Internet 177 184 249 206 816 682 134 19.6% 1,789 2,121 1,752 1,767 7,429 5,666 1,763 31.1% Gross Margin Wholesale 26.2% 29.4% 25.5% 23.3% 26.2% 25.3% 0.9% Direct to Consumer 60.0% 60.3% 61.2% 63.4% 61.2% 57.5% 3.7% Internet 40.6% 33.6% 38.0% 36.1% 36.9% 44.2% -7.3% 33.2% 35.4% 34.0% 32.0% 33.7% 33.0% 0.7%

15 FY14 Financial Highlights Y-O-Y 2013 2014 D in Q4 Q1 Q2 Q3 Q4 WC Total assets 34,132 34,453 34,879 35,560 34,328 Total liabilities 14,908 15,254 15,482 16,457 15,910 Total equity 19,224 19,199 19,397 19,103 18,418 34,132 34,453 34,879 35,560 34,328 Cash and cash equivalents 11,367 8,361 7,499 5,117 5,567 Property & equipment, net 5,383 5,544 5,664 5,575 5,553 Major Working Capital Accounts A/R 2,816 1,861 2,557 2,523 3,300 (484) Inventories 13,222 17,117 17,350 17,184 17,179 (3,957) Bulk Wine Deposit - - - 1,125 1,424 (1,424) AP & Accrueds (1) 3,833 4,445 3,461 2,953 3,194 (639) (6,504) (1) FY '13 AP & Accrued included approximately $999 in IPO related fees Interest Bearing Debt Line of Credit 6,887 6,018 7,270 6,582 8,685 Other Interest Bearing Debt 3,841 3,762 3,683 4,028 3,927 10,728 9,780 10,953 10,610 12,612

16 ― We fell short of the lower end of net sales guidance as net sales were significantly impacted by paper bottle supply disruptions ― Gross margin was at the high end of the range allowing us to deliver gross profit dollars of $7.4 million (in line with the lower end of the guidance range). ― Total operating expense was within the range of guidance at $8.6 million ― Operating profit was in line with the lower end of the calculated range based on guidance. FY14 Financial Highlights FY 14 - Guidance Reported Lower - Sales Higher - Sales 2014 YOY D Margin 31% 34% 31% 34% Net sales 22,057 28.5% 24,000 24,000 28,000 28,000 Cost of Sales (14,628) Gross profit 7,429 31.1% 7,440 8,160 8,680 9,520 Gross Margin 33.7% 0.7% 31.0% 34.0% 31.0% 34.0% Total operating expense 8,649 8,700 8,000 8,700 8,000 Operating Profit (1,220) (1,260) 160 (20) 1,520

NEW RETAIL EXCLUSIVES

Total Wine & More • Beginning Fall 2014 and Spring 2015, Total Wine & More will be adding several new Truett - Hurst products – Mad Duck Sauvignon Blanc – Inconspicuous Old Vine Lodi Zinfandel – Eden's Eve by Eden Ridge – The One Armed Man . 18 INCONSPICUOUS

The Kroger Company • Second largest grocery retailer in the US operating over 2,600 stores under nearly 2 dozen banners • Truett Hurst’s exclusive partner in the launch of California Winecraft – delicious single serving ready - to - drink wine based beverages in Craft Cans patterned on classic and worldwide favorite mixed wine combinations • Several traditional exclusive wine brands in addition 19

Q & A

21 APPENDIX 1. Contact Information 2. Conference Call Playback Information 3. Fiscal 2014 Pro forma Basic and Diluted EPS & Market Cap

Appendix I - Contact Information 22 Phillip L. Hurst Chief Executive Officer, President Email: Phil@truetthurst.com T: 707.433.4408 M: 707.318.7480 Paul A. Forgue Chief Financial Officer & Chief Operations Officer Email: paul@truetthurst.com T: 707.431.4423 M: 707.494.3452 www.truetthurstinc.com ir@truetthurstinc.com

Appendix II – Call Playback Information Transcript, when available, at: www.truetthurstinc.com Webcast/PowerPoint / Replay available at: www.truetthurstinc.com/investors Transcript available until October 10, 2014. 23

Appendix III Adjusted Pro Forma EPS & Market Cap June 30, 2014 Net loss attributable to Truett-Hurst, Inc. and H.D.D. LLC (1,166)$ Adjusted Pro Forma Basic & Diluted Loss Per Share Weighted average Class A common stock 3,621,455 LLC units assuming 100% LLC membership conversion 3,164,172 Total weighted average basic pro forma shares outstanding 6,785,627 Adjusted Pro Forma Basic Loss Per Share Calculation (0.17)$ Adjusted Market Capital based on June 30, 2014 Class A common stock closing price of $5.00 33,928,135$ TRUETT-HURST INC. AND SUBSIDIARIES Adjusted Pro Forma Basic Loss Per Share & Market Cap As of June 30, 2014 (assumes 100% conversion of LLC units to THI stock) 24