1. Quality, Integrity, Stability

2. And Report on the General Affairs
Industry Commentary
And Report on the General Affairs
of the Association

3. Equilibrium Fungibility Stability Themes By Year Premiumization 2015
2016
Equilibrium
Premiumization
2017
2018
Fungibility
Stability
Themes
By Year

4. Wine Industry Stability
Stability can come in times of growth, times of regression, or amidst no change at all.
Market stability is a measure of supply/demand equilibrium, regardless of specific market volume.

5. Moderated Vineyard Planting
Planting at Attrition Rate
Est.

6. Potential Threats To Stability
Large Crops (short-term)
Economic Regression (mid-term)
Consumer Age Demographics (long-term)

7. Are Premium Wine Growth Rates Slowing?
Wine Shipments
Are Premium Wine Growth Rates Slowing?

8. Wine Shipments Slowing
Percentage changes reported from the Gomberg Fredrikson Report

9. with slowing wine shipments?
What characteristics
are associated
with slowing wine shipments?
Incredible competition and product offerings
“No-growth” segments of the market get ignored
Growth brands are essentially cannibals
Wine producers practice “just-in-time” supply management
Speculative or opportunistic grape buying is limited
Enhanced efforts surface to maintain margin
Wine producers focus on value
More attention on the intersection of price/quality

10. Merger & Acquisition Activity
Keeping up with the M&A
world of wine
AGG is a grower’s answer
to consolidation

11. Consolidation is at Every Level
Graphic source – Wines & Vines, September 2017 Issue

12. AGG’s Role in, and Response to, an Ever-Changing Industry
Jeff Bitter
(President)
Irene Ybarra
(Acct/Admin Manager)
Alesia Zion
(Accounting and HR)
Marcia Silva
(Administration)
Karl Lehman
(Regional Manager)
Ed Nikssarian
(Grower Relations)
Emilio Miranda
Jeff Osterman
Joe Osteman
Chad Clark
Kevin Rogers
Matt Kerr
A practical look at AGG – changing our people resource structure

13. AGG’s Role in, and Response to, an Ever-Changing Industry
What will be different?
“Boots on the ground” marketing
Increased social media presence
Prioritizing grape marketing at every level of the organization
Board and policy evolution
What will remain the same?
Our motto & mode of operation:
Quality, Integrity, Stability
Our commitment to growers
AGG growers first, but ultimately all growers
Our industry commitment
Providing information & services for all

14. Quality, Integrity, Stability