Market Update: More than a Year in Wines and Vines WG Intro and introduction of WG and AC

Who We Are Established in 1973 4 Grape Brokers and 5 Bulk Wine Brokers Domestic, Import and Export Publishers of The Turrentine Outlook and The Collateral Value Report WG start AC finish with the Outlook and CVR services

What is the bulk wine market? AC to start this and have WG finish it

Market Factors +$10 per bottle Evolution of Quality Competition DTC Growth Labor Cost of production Laws and Regulations WG through Competition AC DTC through Laws and Regs

Wine Sales Trends Volume ~3% Value ~5% 9L Vol $ Sales $/750 ml Real Price Under $7 -0.12% 1.21% 1.34% -0.03% $7 to $12 9.84% 9.76% -0.08% -0.11% $12 to $20 10.81% 11.95% 1.03% -0.14% Over $20 14.02% 15.81% 1.58% -0.04% WG Based on the the Nieslen data combined for the years 2009-2015, wine volume grew 3% and value was up 5%. The example below is an extract of the data capturing some these specific price segments during this same period. As stated at the outset of my presentation, the resistance of the wine marketers of favorite brands to raise prices. This is due in part to increased competition and the Millennial consumer who are not brand loyal. Source: Nielsen, BW166

Tons Crushed by Region Tons Crushed 2016 Tons Crushed 2015 Net Gain/Loss Equivalent Gallons Percent Change Percent Change vs. 5-Year Avg. North Coast 511,970 420,399 91,572 15,109,000 22% 1% Central Coast 509,728 370,987 138,741 22,892,000 37% 4% Northern Interior 1,031,577 857,779 173,798 28,677,000 20% 16% Southern Interior 1,922,764 2,033,858 (111,094) (18,330,000) (5%) 0% WG to build AC into tons crushed

Statewide Tons Crushed AC

Bulk by Region WG AC to ask for transition of far right increase in bulk supply, is this mostly 2016 wines coming on the market?

Bulk by Vintage

Central Coast Tons Crushed 2015 vs. 2016 WG to transition regarding vintage vs varietal breakdown from the last two harvests AC

Cabernet Sauvignon Bulk Gallons Actively for Sale

District 8 Cabernet Sauvignon Preliminary Tons Crushed

Chardonnay Bulk Gallons Actively for Sale

Chardonnay 2016 Tons Crushed

Pinot Noir Bulk Gallons Actively for Sale

Pinot Noir Tons Crushed 2015 v 2016 Make Pie Chart, - Slices split between 7 & 8? also add bar chart

Merlot Bulk Gallons Actively for Sale

Central Coast Merlot Preliminary Tons Crushed

2016 Central Coast Red Blenders PS, PV, MA, SY, CF

2016 Central Coast White Varieties D 6,7,8 2016 tons crushed SB, PG, WR, GZ

Central Coast All Varieties Volume vs. Value AC Wrap up Vol=tons crushed Val=weighted district average price between districts 6, 7 and 8

Audra Cooper & William Goebel Thank you! Audra Cooper & William Goebel Add business cards here for both and remove “Audra Cooper & William”, keep “Thank You!”