1. Acquisitions and Vineyard Pricing Joe Ciatti, Partner, Zepponi & Company Tony Correia, President, The Correia Company
May 8, 2019 – Copia, Napa

2. Table of Contents I. Zepponi & Company
II. Vineyard Trends Impacting M&A
III Winery & Vineyard Acquisitions
IV Forecast and Beyond

3. Zepponi & Company – Advisory Team
Mario Zepponi – Principal
Former corporate, real estate and beverage alcohol attorney with expertise in merger and acquisition, and trademark licensing transactions
Extensive experience in brand and production facility sales transactions, leasing and development, sourcing and processing agreements, and sales and distribution agreements
Expertise in negotiating and structuring complex transactions
Matt Franklin – Principal
Significant corporate finance advisory experience, including mergers and acquisitions, equity and debt financings, valuation and technical accounting
Expertise in beverage alcohol specific transactions; previously a managing director at a boutique investment bank in San Francisco
Certified Public Accountant (CPA) and Chartered Financial Analyst (CFA) charter-holder, Series 7 (General Securities Representative), Series 79 (Investment Banking Representative), and Series 63 (California Securities Representative)
Joe Ciatti – Principal
Built own company, Joseph W. Ciatti Co., into world’s largest brokerage of grapes and bulk wines
Former Chairman and CEO of Vintage Wine Trust, a real estate investment trust devoted to vineyard and winery properties
More than 40 years of experience, with deep network of industry influencers, and impressive track record of high profile transactions, including vineyards and wineries in California, Oregon and Washington

4. Zepponi & Company – Advisory Team
George Coope – Senior Director of Strategy and Analysis
Investment banker with 25+ years experience in wine and branded consumer sectors
Investment Banker – Hambrecht & Quist; Ackrell Capital, LLC
Director – Patz & Hall Wine Company; The Coppola Companies
Cody Jennings – Senior Vice President
10+ years in the beverage alcohol industry with sell-side, buy-side and business valuation advisory experience
Corporate finance and operations background
Financial Analyst – Jackson Family Enterprises
David Von Stroh – Senior Vice President
18+ years sell-side, buy-side, merger, acquisition and capital raising experience
Consumer products industry expertise with focus on wine, beer and spirits industries
Investment Banker – Chase Manhattan; JP Morgan; Wood Warren & Co.; MC Advisors
Kevin O’Brien – Senior Vice President
Certified Public Accountant (CPA) with 15+ years experience in beverage alcohol industry
Accountant – PwC, Irvine & Company
Financial Analyst – GESD Private Equity
Andrew Milanez – Vice President
Former buy-side credit analyst
10+ years experience analyzing public and private companies across a range of industries
Financial Analyst – Lehman Brothers; Davidson Kempner Capital Management

5. Zepponi & Company – Advisory Team
Cindy Larson – Operations Manager
20+ years experience in office management and operations
Expertise in real estate finance and wine industry accounting and operations
Angela Sjoblom – Associate & Director of Marketing
10+ years experience in mergers and acquisitions
Licensed real estate agent
Jessica Bird – Senior Associate
10+ years experience in mergers and acquisitions and background in law
Licensed real estate agent
Lisa Manning – Associate
30+ years experience in wine, business and real estate litigation
Former Senior Paralegal with Dickenson Peatman & Fogarty
Laurie Morilla – Associate
20+ years experience in wine industry office management and operations
Formerly with Chateau St. Jean Winery

6. Transaction and Advisory Services Transaction Objectives
Zepponi & Company
Zepponi & Company has been the most active advisor in the North American wine sector.
Industry Expertise
Global beverage alcohol merger and acquisition advisory firm
Pre-transaction valuation and strategic advisory services
Transaction and Advisory Services
Industry specialists in transactions involving:
Wine, spirits and beer brands
Distribution companies
Agricultural and production assets
Strategic business and succession planning advisory services
Transaction Objectives
Understand client’s motivations, goals and expectations
Evaluate and define strategic options to maximize value of assets
Creativity in negotiating and structuring transactions

7. Table of Contents I. Zepponi & Company
II. Vineyard Trends Impacting M&A
III Winery & Vineyard Acquisitions
IV Forecast and Beyond

8. Vineyard Trends Impacting M&A
Significant Vineyard transaction experience up and down the West Coast
Pacific Northwest (Washington / Oregon)
Willakia (Eola-Amity Hills)
Gran Moraine (Yamhill-Carlton)
Goodrich (Yamhill-Carlton)
Duck Pond Cellars (Dundee, Willamette, Umpqua Valley)
Vista Hills (Dundee Hills)
Yamhela (Yamhill-Carlton)
North Coast (California)
Stagecoach (Atlas Peak)
Feeney (Russian River Valley)
Soda Rock (Alexander Valley)
Bellflower (Russian River Valley)
Bartolucci-Stice (St. Helena)
Juliana Vineyard (Napa Valley)
Goldrock Ridge (Sonoma Coast)
Altria Vineyard (Yountville)
Cerise (Anderson Valley)
Sugarloaf West (Napa Valley)
Circle S Ranch (Atlas Peak)
Anderson Creek (Anderson Valley)
Sugarloaf East (Napa Valley)
Sun Chase (Sonoma Coast)
Gap’s Crown (Sonoma Coast )
River East (Russian River Valley)
Central Coast And Central Valley (California)
Rancho Real (Santa Maria Valley)
Cross Canyon (Paso Robles)
Sweetwater (Monterey)
Salsipuedes (Sta. Rita Hills)
Rita’s Crown (Sta. Rita Hills)

9. Vineyard Trends Impacting M&A
Source: Ciatti Company

10. Vineyard Trends Impacting M&A

11. Vineyard Trends Impacting M&A
Source: California Grape Acreage Report | 2018 Crop

13. Vineyard Trends Impacting M&A
Vineyard Pricing by Major Growing Areas
North Coast
Flat to Down
Lodi
Flat to Down
Napa
Flat to Up
Central Valley
Down
Sonoma
Flat to Up
Central Coast
Flat to Down

23. Vineyard Trends Impacting M&A
Vineyard Pricing in Oregon
Oregon
Flat to Up

24. Vineyard Trends Impacting M&A
Vineyard Pricing in Washington
Washington
Down

25. Table of Contents I. Zepponi & Company
II. Vineyard Trends Impacting M&A
III Winery & Vineyard Acquisitions
IV Forecast and Beyond

26. 2019 Winery & Vineyard Acquisitions
Acquired by
Jim Bean
&
Christine O’Sullivan
BRAND Winery & Estate| January 2019
Ultra-premium Pritchard Hill winery
~1,000 cases produced annually, consistently earning outstanding scores
110-acre estate planted to ~15 vineyard acres of Cabernet Sauvignon, Cabernet Franc and Petit Verdot

27. 2019 Winery & Vineyard Acquisitions
Acquired by
Merry Edwards Winery Transaction | February 2019
Well regarded and established Sebastopol winery and tasting room plus 79 vineyard acres
Family owned synergistic transaction
Enabling proprietor to retire after 1 year consulting agreement

28. 2019 Winery & Vineyard Acquisitions
Acquired by
Laetitia Vineyard & Winery Transaction | March 2019
Notable foundation winery of Arroyo Grande AVA, ~680+ estate vineyard acres (287 planted), Laetitia & Nadia wine brands, 35,000 case winery, tasting room and hospitality assets

29. 2019 Winery & Vineyard Acquisitions
Gallo recently has acquired ~8,500 acres of vineyards; 16 vineyards in Sonoma,
8 in Napa and 10 across the Central Coast.
Acquires
E & J Gallo acquires Constellation Brands portfolio| April 2019
~$1.7 Billion
34 wine and spirits labels
6 winemaking facilities

30. Table of Contents I. Zepponi & Company
II. Vineyard Trends Impacting M&A
III Winery & Vineyard Acquisitions
IV Forecast and Beyond

31. 2019 Forecast and Beyond Potential for another large crop
Lots of inventory from 18’ on the market
Consolidation with Gallo acquisition compacting lower grape prices, in most geographic areas
Case goods sales flat, except for the premium and DTC sectors which are still continuing to grow

33. Thank you!!
And Remember; Drink More California Wine!