1. New York City January 23, 2007 The U.S. Wine Market 2008 – Consumer Trends and Analysis

2. Total Table Wine Consumption (Millions of cases) Source: Beverage Information Group 195 205 208 220 233 243 249 258 267 *Estimate 271*

3. 1970 1975 1980 1985 1990 1995 2000 2005 2008 Adult Per Capita Table Wine Consumption vs. Population Growth Adult Population Gallons per Adult 134 147 154 164 173 184 194 1.05 1.78 2.58 2.29 1.96 2.13 2.46 2.81 211 Source: U.S. Census Bureau, Beverage Information Group *Estimate 218* 3.00*

4. Beer/Spirits 25.6% Core Wine Drinkers 15.7% Marginal Wine Drinkers 15.2% Non-Drinkers 43.5% (Ages 21+ HHI $35K+) Consumer Segments U.S. Adults 2008 Core Wine Drinker: Drinks wine once a week or more often. Marginal Wine Drinker: Drinks wine less than once a week but more than once every 2 or 3 months. Source: Wine Market Council

5. Beer/Spirits 25.6% (24.9%) Core 15.7% (15.2%) Marginal 15.2% (15.8%) Non-Drinkers 43.5% (44.1%) (Ages 21+ HHI $35K+) Consumer Segments U.S. Adults 2008 vs 2006 Core Wine Drinker: Drinks wine once a week or more often. Marginal Wine Drinker: Drinks wine less than once a week but more than once every 2 or 3 months. Source: Wine Market Council

6. Consumer Segments, 2008 Core Wine Drinkers15.791 Marginal Wine Drinkers15.29 Beer/Spirits Drinkers25.60 Non-Drinkers43.50 TOTAL100 % Sample % Volume (Ages 21+ HHI $35K+) Source: Wine Market Council

7. Table Wine Drinking Frequency, 2008 10 25 17 22 12 Daily Weekly + Once Wk. 2-3 X Mo Once Mo. 1 x 2-3 Mo. CoreMarginal (Percentages by segment) 14

8. Table Wine Drinking Frequency, 2008 vs 2006 11 25 17 22 12 Daily Weekly + Once Wk. 2-3 X Mo Once Mo. 1 x 2-3 Mo. Core Marginal (Percentages by segment) 15 10 24 20 13 14

9. Consumer Segments by Gender, 2008 Core Marginal Male 52% Female 48% Male 45% Female 55% Source: Wine Market Council

10. Purchase by Channel and Gender, 2008 Source: Wine Market Council (Percentage past 3 month purchase)

11. Net Gain in Wine Consumption, 2008 (Net gain “Drinking more wine” vs. year or two ago, by gender) +14 +19 Source: Wine Market Council

12. Swing (64 - 76) 30 Million Relative Size of Generations Source: American Generations WW II (77 and over) 32 Million Boomer (45 - 63) 77 Million Generation X (33 - 44) 44 Million Millennial (15 - 32) 70 Million 12% 11% 29% 26% 16% (Age ranges in 2009)

13. Younger Generations Drive New Growth, 2008 (Net percent gain/loss in wine consumption by generation) 46% 23% 7% -1% Source: Wine Market Council Millennial 21 – 32 Yrs Old Gen X 33 – 44Yrs Old Boomer 45 - 63 Yrs Old Swing & WWII 64+ Yrs Old

14. Male vs. Female Ratio of Wine Drinkers by Generation, 2008 46 54 49 51 45 55 (Percentage by segment and generation) 50 Source: Wine Market Council Millennial 21 – 32 Yrs Old Gen X 33 – 44Yrs Old Boomer 45 - 63 Yrs Old Swing & WWII 64+ Yrs Old

15. Glasses per Occasion by Generation, 2008 Source: Wine Market Council Millennial 21 – 32 Yrs Old Gen X 33 – 44Yrs Old Boomer 45 - 63 Yrs Old Swing & WWII 64+ Yrs Old 2.83 glasses 1.79 glasses 2.13 glasses 2.41 glasses

16. “I Associate Wine with Fun Times” 2008 (Percent completely/somewhat agree) 80 6966 58 Source: Wine Market Council Millennial 21 – 32 Yrs Old 2.83 glasses/occ. Gen X 33 – 44Yrs Old 2.41 glasses/occ Boomer 45 - 63 Yrs Old Swing & WWII 64+ Yrs Old

17.  The Wine Industry has experienced 15 years of consecutive growth. With per capita consumption at 3 gallons per person in 2008.  This growth is expected to continue in 2009.  Around 31% of the adult population drinks wine, with 15.7% drinking wine weekly or more often. These core wine drinkers account for around 91% of all wine volume.  Men vs Women: –Men are slightly more likely to be core wine drinkers while women are more likely to be marginal wine drinkers. –Men are more likely to buy wine in a liquor or wine store while women are more likely to buy wine in a grocery store or warehouse/club store. Summary

18.  Industry growth trends are expected to continue in 2009 because… –Men say they’re drinking wine more vs a few years ago. –The Millennial consumers (21 – 32 yrs old) say they’re drinking more wine vs a few years ago. –Millennial consumers drink more per occasion vs older consumers. –Millennial consumers associate wine with fun time. Summary

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