Vines of Mendoza San Francisco September 2013 Nora Z. Favelukes

Wine Consumption Adults per Capita / Population Source: Census Bureau – Wine Information Group For the 19 th year in a row wine sales have continued to grow in the US market, at a rate of 2.9% in 2012

2012: 228 Million Adults (millions by segment) Source: Wine Market Council 2012

Consumers: Core vs. Marginal (Percentage by segment) Source: Wine Market Council 2012

Core Wine Drinkers by Generation, 2012 (Percent by generation) Source: Wine Market Council 2012 Older Millennials 19% Younger Millennials 9%

Consumers by Gender ( Percentage ) Source: Wine Market Council 2012

Wine Shipments by Volume 9 L Cases January / July – 2012/2013 Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Imported Wine Shipments by Value January/July /2013 Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Bulk Wine Exports to the U.S.

Nielsen Report FDL (Food, Drug & Liquorstores) Argentine Wine Sales: 4 Weeks period ending on August 17, 2013: Volume +7.5% Dollars % % 52 weeks ending on August 17, 2013 Volume 6.3% Dollars 12.6% Retail wine numbers are strong at $13.3 billion in 2012 (Nielsen) Source: Nielsen Report FDL (Food, Drug & Liquorstores) August 2013

Malbec Wine Sales: 4 Weeks period ending on August 17, 2013: Volume +12.1% Dollars % 52 weeks ending on August 17, 2013 Volume 13% Dollars 12.7% Nielsen Report FDL (Food, Drug & Liquorstores) Source: Nielsen Report FDL (Food, Drug & Liquorstores) August 2013

Country Value in DollarsShipment in Cases Change % Change % Italy $ 43, $ 57, % % Argentina $ 38, $ 44, % % France $ 31, $ 42, % % Spain $ 25, $ 31, % % Australia $ 32, $ 29, % % Portugal $ 20, $ 23, % % Chile $ 9, $ 10, % % U.S. Imports: Bottled Dessert and Table Wines Over 14% Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Source: Top Varietals Exported to US – Vinos de Argentina Top 15 Varietals Exported to the U.S August Varietal US$ FOB9 Liter Cases US$ FOB Per Case Malbec $ 188,629,7314,817,697 $ Cabernet Sauvignon $ 24,046,544588,113 $ Generic Reds $ 20,659,091397,255 $ Chardonnay $ 7,473,152212,382 $ Torrontes $ 6,761,368186,919 $ Generic Whites $ 3,184,167129,753 $ Pinot Noir $ 2,710,94055,250 $ Pinot Gris $ 1,809,59155,969 $ Syrah $ 1,776,80080,370 $ Merlot $ 1,585,00342,145 $ Sauvignon Blanc $ 1,387,08045,648 $ Bonarda $ 1,344,67038,713 $ Cabernet Sauvignon - Malbec $ 1,163,02121,797 $ Rose Malbec $ 1,064,97529,293 $ Tempranillo $ 1,026,34039,633 $ 25.90

Imported Table Wine Shipments % Change by Color YTD to June, 2013 Source: U.S. Department of Commerce, Gomberg, Fredrikson & Associates

Malbec  Millennial generation wine of choice  It gave Argentina a unique identity in the world  Critical success factors for sommeliers: competitive pricing and delivering taste/quality  Sold at all price levels:  Retail mostly in the $ 8 - $30 a bottle range  Restaurant mostly in the $30 -$100 a bottle range. Source: Bordeaux Management School – BEM – France

YEARUS$ FOBCHANGE SHARE OVER TOTAL 9 LITERS CASES CHANGE SHARE OVER TOTAL ,714,189///35.1%477,569///25.5% ,038, %36.7%626, %27.8% ,144, %43.8%901, %34.9% ,800, %48.9%1,314, %40.3% ,999, %54.6%2,114, %47.8% ,489, %59.3%3,159, %54.3% ,173, %65.1%4,164, %59.9% ,204, %67.3%4,581, %64.7% ,919,8088.5%68.7%4,713, %67.3% Argentine Malbec Exports to the US: Source: Argentina Exports Statistics from Wines of Argentina

Argentine Malbec Exports to the US:

Bottled Wine Exports to U.S. Price Segments Source: CAUCASIA Wine Thinking Price Segment US$ FOB VOLUME (9 LITER CASES) Change % Change % SEG 1 - Px ≤ US$ 1814,860,1499,174, %986,285601, % SEG 2 - US$ 18 < Px ≤ US$ 2980,072,70877,999, %3,387,4413,270, % SEG 3 - US$ 29 < Px ≤ US$ 4090,590,884102,196, %2,632,3972,964, % SEG 4 - US$ 40 < Px ≤ US$ 90132,239,689139,464, %2,394,6922,557, % SEG 5 - Px > US$ 9030,910,98731,012, %215,273227, % TOTAL BOTTLED WINE348,674,417359,848, %9,616,0879,622, %

More wine is being sold in drug stores and other chains such as Walgreens and Dollar General The sweet spot for wine pricing is $10 – $14.99 Online wine sales are finally coming into their own, with 74% of consumers purchasing wine from winery websites and 68% from Wine.com Source: Trends in the US Wine Industry in 2013 – Liz Thach MW

The hottest varietals are still Moscato, Malbec and sweet red blends. Americans still enjoy buying wine from Argentina, New Zealand and Spain, but wine purchases have declined from Australia and Germany. The US still imports almost 30% of all wine sold in the country. Source: Trends in the US Wine Industry in 2013 – Liz Thach MW

Winery$FOB9 L CASES $ FOB / 9 L CASE Esmeralda $43,241, ,060,035 $ Peñaflor $24,426, ,411 $ Trivento $11,935, ,902 $ Escorihuela $10,617, ,260 $ Norton $ 9,106, ,648 $ Puerto Ancona $ 8,249, ,553 $ Chandon $ 8,029, ,397 $ Zuccardi $ 7,535, ,626 $ Dominio Del Plata $ 7,304, ,055 $ Doña Paula $ 6,081, ,048 $ Top 25 Argentine Exporters to the U.S. Source: Top Argentine Exporters of Argentina – Vinos de Argentina

Top 25 Argentine Exporters to the U.S. – Cont’d Winery$FOB9 L CASES $ FOB / 9 L CASE Diageo Argentina $ 4,939, , $ Finca La Celia $ 4,498, , $ Valentin Bianchi $ 4,436, , $ Lavaque $ 4,102, , $ Pascual Toso $ 3,975, , $ Leoncio Arizu $ 3,740, , $ Salentein $ 3,541, , $ Flichman $ 3,419, , $ Fincas Patagonicas $ 3,030, , $ La Rural $ 2,981, , $ Florida Del Tupungato $ 2,890, , $ Bodegas Fabre $ 2,819, , $ Pernod Ricard $ 2,757, , $ Alta Vista $ 2,612, , $ Viña Cobos $ 2,587, , $ Source: Top Argentine Exporters of Argentina – Vinos de Argentina