Rosé Category Insights & Overview

“Rosé fits the taste and lifestyle of wine drinkers today…well-made, fun and not too expensive compared to other wines…” - Ronn Wiegand, MW THAT WAS THEN… (CIRCA 1980) THIS IS NOW… Treasury leads the premium rosé category

Rosé is … The original red Before the advent of modern winemaking techniques and ways to extract color from the skins of grapes, much of the wines consumed in ancient civilization were very pale/rose in color Sunshine in a glass Can be made in varying shades of pink, depending on the varietal/s used – stunning hues reminiscent of sun rising or setting Universally loved for its versatility Rosé goes hand-in-hand with the Mediterranean climate of Provence, where many days are too warm for red wine consumption. The refreshment of a white with a bit of weight and tannin of a red, is the perfect match not only for Mediterranean cuisine but most other global cuisine

Consumer Insights The late 70’s through early 90’s off-dry blush wine and White Zinfandel dominated the US market, and in 1997 was 22% of all wine sold….It has taken a while to convince consumers that not all “pink” wine is sweet. Today’s rosé is stylish & sophisticated and widely consumed in the U.S. The FASTEST Growing Varietal in Wine +24%, currently $159M in sales $10-$15 holds 29.1% $ share and is growing in dollars (+34.3%) and cases (+31.6%) in the latest 26 weeks Rosé is attracting younger consumers; the third highest preferred varietal amongst year olds with total dollars increasing by +44% vs. 2 years ago!

Rosé is the FASTEST Growing Varietal $159M in sales - with a lot of potential for growth $ % Vol vs YA Source: Nielsen xAOC Liquor 52wks ending 1/30/2016 $4+ Table Wine $ Vol Share of Wine

French and US Masstige Rosé accounts for 80% of growth $ Vol Share of rosé by COO/Price Tier Total RoséCommercialMasstigeLuxury COUNTRY$ % Chg YA9L EQ % Chg YA$ % Chg YA9L EQ % Chg YA$ % Chg YA9L EQ % Chg YA$ % Chg YA9L EQ % Chg YA UNITED STATES FRANCE ITALY All Other Source: Nielsen xAOC Liquor $4+ Rose Table Wine 52wks ending 1/30/16

Rosé has a lot of opportunity for distribution increase +0.2% +7.8% +0.7% +8.1% $ Dollars Sold on Display (M) % ACV Distribution Retailers are capitalizing on the growth with featured displays Source: Nielsen xAOC Liquor $4+ Rose Table Wine 52wk ending 1/30/16

Rosé is also gaining traction On Premise Source: Technomic Menu Monitor Q Nearly half (46%) of on premise operators have at least one BTG rosé offering The average by-the-glass price for rosé is $10.35 (Fine Dining average is $11.44) Quickly increasing share of the BTG Menu (only red blends grew faster)

Rosé has dominated the headlines recently – with all signs pointing to continued growth and rising popularity

Treasury Rosé Portfolio Chateau St Jean Bijou Rosé** Sterling Vintners Collection Rosé** A by Acacia Rosé** Matua Rosé** Truvee’ Rosé M de Minuty Rosé Rosé et OR Minuty Chateau Minuty 281 Sourcing Bijou means “jewel” in French. This delicious California rosé joins Bijou chardonnay in this line-up of approachable, fruit forward wines Great Central Coast rosé from one of CA’s benchmark producers Progeny of Carneros pioneer Exciting new release from New Zealand’s most recognized Sauvignon Blanc producer New release from the McBride Sisters and their rhone-inspired Truvee winery Historic 19th century Chateau in the region of Provence- Benchmark producer focused mainly on growing grapes for rosé production Luxury rosé from the “Gold” tier of Minuty wines The ultimate expression of the 75- acres surrounding the estate Varietal Blended from Barbera, Pinot Noir and Grenache Edna Valley sourced, a fun blend of red and white grapes 100% Grenache from premier Central Coast sites 100% Pinot Noir sourced from Central Otago 100% Grenache sourced from Monterey County 50% Grenache, 40% Cinsault and 10% Syrah; Traditional “spice- rack” blend for Provence rosé Produced from all Estate grown fruit; the 95% Grenache and 5% Syrah blend gives this wine power and depth Grenache, Cinsault, and Syrah grapes are hand harvested from the best parcels of Minuty Winemaking Minimal skin contact gives Medium-pink color 88% Pinot Noir portion is produced by bleeding juice off/ also tiny portions of Zin and PS-10% is white Malvasia pressed off skins 8 hours of maceration gives this rosé, a deep-ruby color- reminiscent of a pale red wine 12 hours of skin contact & stainless steel fermentation gives pale-salmon pink color & lots of Pinot flavors- tart Very brief maceration of skins gives pale, sunset pink hues and subtle tannins Minimal skin contact, stainless ferment gives this wine the classic “onion-skin” pink Stainless steel fermentation followed by 6 hours of maceration for a pale, salmon-pink hue The juice is carefully extracted using a drip method - cold fermentation and careful extraction Flavor Soft tannins and flavors of berry, cherry fruits Bright, bramble berry and juicy watermelon fruits with soft finish Spice, citrus and apricot notes, dry in style med-full bodied Cherry fruit & crisp acidity Hints of spice and citrus, lower in acidity giving a soft, fruity palate Dry, spicy and med. Bodied, but the lightest in the Minuty range Bold citrus fruit, savory spices ; a rosé of good depth and complexity The mouth is of great depth with a mineral frame Style Fresh, Fruit-Driven Dry, Subtle FruitFresh, Fruit-Driven Dry, Subtle Fruit SRP $11.99 SRP$12.99 SRP$14.99 SRP $15.99 SRP * Limited markets v15 $15.99 SRP$20.00 SRP$40.00 SRP$60.00 SRP Channel Strategy Grocery 1 & 2 Costco & Club Other Drug Mass Package ABC Military Convenience Online Grocery 1 & 2 Costco & Club Other Drug Mass Package ABC Military Convenience Online Grocery 1 & 2 Costco & Club Other Drug Mass Package ABC Military Convenience Online Grocery 1 & 2 Costco & Club Other Drug Mass Package ABC Military Convenience Online Grocery 1 Mass Fine Wine Package ABC Online Grocery 1 & 2 Costco & Club Other Fine Wine Package A Specialty Online Fine Wine Package A Online Fine Wine Package A Online ** Priority Brand

Appendix

Share by price tier and COO $ Vol Share of Wine by Price Tier $ Vol Share of Wine by COO Source: Nielsen xAOC Liquor $4+ Rose Table Wine 52wks ending 1/30/16

Rosé Style Color: Thicker-skinned varietals like CS will impart more purplish-ruby colors, while thinner- skinned varietals like Pinot Noir or Grenache ( low in anthocyanins) result in salmon-pink colored wine. Due to the fragile color, optimal freshness is generally 1-3 years. Grape: Any black grapes can be used… Grenache and Rhone varietals impart spice, tart cherry, watermelon notes. Pinot noir rosé tend towards a berry-cherry character with floral notes. White wine varietals are also occasionally blended in. Winemaking Options BEFORE pre-fermentation, macerated grapes will spend time in contact with juice for anywhere from 4-12 hours; the grapes are well-chilled to delay fermentation- the skins will impart color from anthocyanins, and tannins from polyphenols. DURING initial fermentation of red wine, some juice can be bled off the must, a method called “saignee” ; that juice is pinkish in color and placed in tanks to ferment. Bleeding the juice off the will concentrate the color of the red wine. AFTER blending of white and red wine, following fermentation. VESSEL most rosé is fermented in stainless steel or concrete to prevent oxidation….there are barrique-aged rosé wines but it is not common.