Wine Market Council Presentation December 9, 2004

Wine Market Council Internet Consumer Survey Conducted in June/July 2004 by Merrill Research 1328 respondents (558 core, 770 marginal) Screener criteria same as previous surveys Data weighted by gender and income

Key Consumer Attitudes and Behaviors – 2004 Core Marginal Likes Taste 93% 85% Wine makes occasion formal 46% 54% Drinks wine only on special occasions 8% 41% (Percentages by segment) Source: Merrill Research & Associates

Positive Attitudes – 2004 Source: Merrill Research & Associates Makes a good gift9592 Can buy good wine without spending a lot 9688 Moderate use is good for you 9490 Core Marginal (Percentages by segment)

Consumption Barriers – 2004 Source: Merrill Research & Associates Like having a bottle on hand 9268 Open bottle stays fresh for 2 – 3 days 6855 Don’t like to open a whole bottle for myself 3461 Core Marginal (Percentages by segment)

(Percentages) Table Wine Drinking Frequency – 2004 Source: Merrill Research & Associates Daily Wkly+ Once Wk 2-3X Mo Monthly 2-3 Mo 5% 22% 15% 24% 17%

Drinking More v. Less Wine (Net gain by segment – 2004) 39% 3% 36% 1% 41% 4% Source: Merrill Research & Associates

Prefer wine to other alcohol beverages? (Percentages by segment – 2004) Source: Merrill Research & Associates

Purchases by Price Category (750ml, Top 2 box by segment) Source: Merrill Research & Associates

Import & Domestic Wine Consumption Core Marginal Source: Merrill Research & Associates Domestic 70% Import 30% Domestic 77% Import 23%

Source: Merrill Research & Associates Core v. Marginal Ratio by Generation – (Percentages by generation)

Source: Merrill Research & Associates Did your parents drink wine? (Percentages by generation)

Source: Merrill Research & Associates Currently on a low carbohydrate diet? (Percentages by segment)

Source: Merrill Research & Associates Purchased screwcap wine in past 3 months? (Percentages by generation) 25 20

Source: Merrill Research & Associates How often buy brand never seen or heard of? (Top two box by segment) 69% 53%

Most Recent Purchases (Percentages by region, Core and Marginal) Source: Merrill Research & Associates

Recent Purchases – California (Percentages by region, Core and Marginal) Source: Merrill Research & Associates

Purchase Motivator Statements The wine I purchased is unique to the region where it was produced I prefer the flavor of the wine I purchased compared to similar wines from other regions The wine I purchased is better quality than similar wines from other regions The wine I purchased is a better value than similar wines from other regions

Source: Merrill Research & Associates Purchase Factors/Beliefs (Percentages by world region)

Source: Merrill Research & Associates Purchase Factors/Beliefs (Percentages by U.S. region)

Source: Merrill Research & Associates Purchase Factors/Beliefs – California Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Ratings as “Unique” – California Wine Purchasers (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – French Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – Italian Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – Australian Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – New York Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – Oregon Wines (Percentages, Core and Marginal)

Source: Merrill Research & Associates Purchase Factors/Beliefs – Washington Wines (Percentages, Core and Marginal)

A Campaign for the Wine Industry

Wine. Since 6000 B.C. Focus on the authenticity of wine A statement only the wine industry can make Juxtaposes ancient and modern images to capture the imagination Humorous copy lines deliver the message: “wine is a casual, everyday enjoyment”

“Kickin’ Back”

“Husband”

“Mutton”

Columbus Test Market

Columbus Test Market Campaign October 20 to November 28 Print placements in Columbus Dispatch, USA Weekend, Columbus Monthly PR and merchandising initiatives Pre and post consumer survey, focus groups, IRI scan data matched market analysis

Wine Market Council Presentation December 9, 2004