Central Calif. Winegrowers and Calif. Assoc. of Winegrape Growers 2007 Winegrape Symposium Today, Tomorrow and Beyond” “Today, Tomorrow and Beyond” November 28 th and 29 th, 2007 Pardini’s, Fresno, California

SJV Grapegrowers and the Global Market Place John Ciatti Managing Partner, Ciatti Company San Rafael, CA 415/

24 Brokers Worldwide Argentina, Australia, Canada, Chile, France, Germany, South Africa, USA 10 within California North Coast, Central Coast, Lodi, Central Valley & Foothills Grapes, Juice, Bulk Wine, Case goods, Juice Concentrates, High Proof, Spirits, Storage & Processing Brokers Committed to your Success

Points to Discuss Sales / Shipment News 2007 Global Harvest Review Export / Import Discussion Future Outlook Questions

Source: Gomberg Fredrickson Report Wine Shipments YTD (Aug ‘07 ) Wine shipments +1.4% (bottled) 2.1% Overall YTD GFA Premium Wine Index +5% Premium growth offset by losses in economy wines Bulk Exports +11% YTD; Bottled +5% YTD Positive change, Exchange rate effects? California

Table Wine - Varietal YTD ’07Annual ’06 %CHG Chard Pinot Grigio Cab Sauv Merlot Pinot Noir Zinfandel Grocery Store Scan Data Source: The Nieslen Company Sales $ % CHG YTD ’07 vs YAG

Table Wine – Price Tier YTD ’07Annual ’06 %CHG < $ $ $ $ $ >$ Grocery Store Scan Data Sales $ % CHG YTD ’07 vs YAG Source: The Nieslen Company

Source: Gomberg Fredrickson Report Wine Shipments YTD (Aug ‘07) Imports still growing faster than domestic Total imports to US + 12% (bottled +9%, Bulk +44%) (CA > US +1%) Australia bulk down Aug ’07 Spain +12%, Italy +11% and Argentina +90% Imports 30% of all wine consumed in U.S. International Total Market Total US Wine Shipments (Imp & Dom) Up 4% US highly competitive mkt – Highest Margin

Source: Calif. Dept. of Food & Ag Final Grape Crush Reports Statewide Grape Crush, 1997 – 2007 Est

Domestic Picture Inventories – moving towards balance Older Reds still in system, whites better Grape Pricing slow to improve Grape Concentrate options not as competitive as raisins Smaller 2007 Vintage should increase optimism for 2008

USA vs. World USA 8% of Production USA 5% of Vine Acres 7.66B Gals (45M tons) Source: OIV

Global Winegrape Production 2006 vs 2007

California Exports 76.46M Gals 94.13M Gals 91.27M Gals 91.85M Gals 440,000 Tons 540,000 Tons 520,000 Tons 525,000 Tons Source: Gomberg Fredrikson Report; State Board of Equalization 565,000 Tons 99.3M Gals

SJV Export Strengths White Zinfandel Zinfandel Ruby Cabernet Colombard/Whites Competitive Varietals

Dry White Wine 2006

Dry White Wine ’06 vs. ‘07

Dry Red Wine 2006

Dry Red Wine ’06 vs ‘07

Cabernet Sauvignon Wine 2006

Cabernet Sauvignon Wine ’06 vs ‘07

Chardonnay Wine 2006

Chardonnay Wine ’06 vs ‘07

Major Export Mkts for SJV Wines Canada Germany Scandinavia UK Asia

Imports Key Varieties Pinot Grigio, Pinot Noir, Riesling, Traditional Varieties Worldwide inventories move toward balance due to 2007 crop US Mkt is the most attractive & best Mkt in World Today consumer is exploring and finding options for purchase Currency & Freight

Currency Exchange Rates 2001$ $ $ $ $ $ $ $ $ $ $ $ $ $1.48 AUD 1.00 = USEURO 1.00 = US

Cost of Ocean Freight Approx. US$0.80 per gal

What the future holds U.S. & World has thirst for Calif Wines Market continues to grow, support it Activity on grapes should accelerate on demand varieties Consolidation will continue – Global Market We must continue to be competitive to survive Quality is the best option – deliver depth & flavor not sugar Brand Proliferation & Growth

Thank You for your time and Attention John Ciatti Managing Partner, Ciatti Company T.415/