1. Current and Future Trends in the International Wine and Spirit Markets – with an Outlook to 2010 ( Updated in December 2006 )

2. Methodology For the 5 th time, and since 2002, the International Wine and Spirit Record (IWSR) has been commissioned by Vinexpo to produce a detailed report on global consumption, production and international trade for wines and spirits, with forecasts to 2010. Since 1971, the IWSR database has been providing the most detailed, accurate and largest running source of data on the global beverage alcohol market. The current study covers 28 wine producing countries and 114 markets for wine and spirits consumption.

3. Conversion Formula 1 Hectoliter = 100 Litres = 26.42 US Gallons 1 Million Hectoliter = 26,417,210 US Gallons

4. Wine Production Source: Vinexpo / The IWSR 2007 Volume - Millions of Hectoliters Wine +5.74% 20012005 2010 Wine Distilled for Brandy 270.15 271.41 278.3 287 -8.6%+24.48% 14.81 16.85 13.54 +3.18%+2.03% 264.76256.60 +2.53%+3.12% 1

5. RankCountry200120052001/200520102005/2010 1France 55.3450.50-8.74%51.501.98% 2Italy 52.2950.50-3.43%49.25-2.48% 3Spain 31.6135.3011.67%39.3011.33% 4USA 27.3133.8921.14%30.60-7.52% 5Australia 10.7715.5944.86%17.159.98% 6Argentina 15.8415.22-3.88%15.501.84% 7Germany 8.8910.5018.10%9.50-9.52% 8Chile 6.487.8821.53%9.5120.63% 9South Africa 6.397.5818.59%9.2522.13% 10Portugal 7.797.25-6.92%6.65-8.28% Top 10 Total 222.67233.414.82%238.212.06% Global Total (excludes wine for brandy distillation) 256.60264.763.18%270.152.03% Top 10 Wine Producing Countries Volume - Millions of Hectoliters Including Wines Distilled for Brandy 49% Source: Vinexpo / The IWSR 2007 2

6. Wine Consumption Source: Vinexpo / The IWSR 2007 Volume –Millions of Hectoliters Still Wine * Sparkling Wine +9.15% 16.004 20012005 2010 221.21 218.8 227.88 238.83 +8.41% +10.07% 14.76 17.62 +3.84%+4.40% 211.88204.04 16.01 +4.15%+4.80% 3 * Below 15% Alcohol

7. Top Ten Still Wine* Consuming Countries Volume - Millions of Hectoliters 43.03% * Below 15% Alcohol Source: Vinexpo / The IWSR 2007 4 9.87%100.178.54%91.17384.01 Total Top 10 6.11%224.823.71%211.87204.29 Total World 35.91%5.5822.45%4.13.35 China10 29.97%6.3737.28%4.93.57 Russian Federation9 3.39%5.154.12%4.984.79 Romania8 -7.11%9.01-8.32%9.710.58 Spain7 -2.94%10.35-12.84%10.6712.24 Argentina6 8.29%12.8724.57%11.899.54 UK5 7.31%23.545.94%21.9320.70 Germany4 18.69%27.3019.59%2319.23 USA3 1.09%27.202.89%26.9126.15 Italy2 -9.31%24.89-11.84%27.4431.13 France1 2005/201020102001/200520052001CountryRank

8. Country200120052001/200520102005/2010 1Germany 3.663.55-3.03%3.807.05% 2France 2.792.71-2.83%2.68-1.18% 4 Russian Federation 11.4545.09%1.7721.96% 3USA 1.111.2310.52%1.3711.47% 5Italy 0.891.0618.39%1.125.87% 6Spain 0.770.803.51%0.845.65% 7UK 0.470.6845.32%0.8726.65% 8Australia 0.330.4537.31%0.5828.95% 9Poland 0.400.39-4.70%0.37-4.42% 10Argentina 0.160.2025.15%0.2523.04% Total Top 10 11.5812.517.99%13.638.98% Total World 14.8815.876.66%17.4710.13% Top Ten Sparkling Wine Consuming Countries Volume – Millions of Hectoliters 78.16% Source: Vinexpo / The IWSR 2007 5

9. Consumption / Capita / Year (in Liters) Source: Vinexpo / The IWSR 2007 10 20 30 40 200120052010 Netherlands 29.8 Australia 31.9 U.K 28.5 Sweden 24.6 Norway 20.3 Canada 13.6 USA 12.7 6

10. Wine Consumption (By Color) Volume – Millions of Hectoliters / Still Source: Vinexpo / The IWSR 2007 7 RedWhiteRose 19.49 86.02 106.36 113.92 86.49 20.8 98.96 86.31 18.77 +0.55% +6.68% +7.11% -0.33% +3.84% +7.48% +3.8%+4.40% 200120052010 (50.19%)

11. Wine Consumption Value –Billions of Dollars, Data from 2005* Source: Vinexpo / The IWSR 2007 * Retail sales including all taxes. 8 StillSparkling +20.11% 15.37 +10.23% 13.94 100.4391.6283.5 16.61 +8.08% +9.72%+9.62% 97.44 106.99 117.04 + 9.80%+9.4% 200120052010

12. RankCountry200120052001/200520102005/2010 1USA 15.6519.1722.49%22.7518.70% 2France 9.938.86-10.81%8.70-1.71% 3UK 6.808.5125.21%9.4811.32% 4Germany 7.367.745.11%8.378.13% 5Italy 6.486.703.49%6.852.16% 6Australia 2.422.8116.43%3.5526.16% 8Japan 2.852.61-8.22%2.682.49% 7Spain 2.592.40-6.92%2.28-5.32% 9Canada 1.62.0427.65%2.4419.60% 10Netherlands 1.651.9518.64%2.086.60% Total Top 10 57.3062.89.59%69.1710.15% Total World 83.591.629.72%100.439.62% 68.5% * Retail sales including all taxes. Source: Vinexpo / The IWSR 2007 Top 10 Countries for Retail Sales Value – Billions ofDollars, Data from 2005* 9

13. Wine Consumption (By Price Point) Source: Vinexpo / The IWSR 2007 Volume – Millions of Hectoliters / Still * * Retail Prices Including All Taxes. Under $5$5-$10Over $10 35.238 200120052010 13.16 40.92 167.13 11.09 31.46 161.5 +1.29% +19.21% +1.02% +17.2% +9.12% +2.44% +3.8%+4.4% 11.23 163.15 37.5 10

14. Global Wine Consumption (By Origin) Source: Vinexpo / The IWSR 2007 Volume –Millions of Hectoliters / Still DomesticImported + 8.41% - 0.8% + 20.9% + 14.65% + 1.82% 42.44 161.61 204.04 2001 51.30 160.57 211.88 2005 58.82 162.39 221.21 2010 + 3.8%+ 4.4% 11

15. RankCountry200120052001/2005 1Italy 14.7913.28-10.21% 2France 14.2712.51-12.39% 3Spain 8.8812.4239.87% 4Australia 4.176.8664.46% 5Chile 3.14.1634.29% 6USA 2.693.3424.07% 7Germany 2.223.0236.12% 8South Africa 1.762.859.09% 9Argentina 0.872.12143.17% 10Portugal 0.811.78119.7% Top Ten Exporters Volume – Millions of Hectolitrers / Still Source: Vinexpo / The IWSR 2007 12

16. RankCountry200120052001/200520102005/2010 % of Consumption 1Germany 10.9012.5715.39%14.0311.61%57.3% 2UK 9.5311.8724.5%12.858.25%99.8% 3USA 4.26.1746.85%7.8627.37%26.83% 4Netherlands 3.153.5914.08%3.826.49%100% 5Bel / Lux 2.332.497.01%2.531.77%95.09% 6Canada 1.572.0228.55%2.4320.48%70.22% 7Switzerland 1.741.69-2.76%1.67-1.07%62.29% 8Denmark 1.57 0.06%1.686.68%100% 9Sweden 1.31.5115.99%1.6911.93%100% 10Japan 1.371.26-7.77%1.389.29%56.59% Top 10 Consumers of Imported Still Wine Volume – Millions of Hectoliters Source: Vinexpo / The IWSR 2007 13

17. Source: Vinexpo / The IWSR 2007 Total World Consumption of Spirits Volume – Billions of 9 Liter Cases +13.92% +7.48% +6% 2.03 2.18 2.31 200120052010 14

18. Spirits200120052001/200520102005/2010 Vodka 427.54504.1117.89%526.064.38% Brandy 106.30117.3110.36%126.017.42% Rum 104.44113.398,57%129.0413.80% Scotch Whisky 75.9378.082.83%82.916.19% Liqueurs 69.9274.095.96%76.943.85% Gin 59.0752.95-10.36%47.23-10.80% Tequila 17.1219.6514.73%25.228.24% Cognac / Armagnac 8.729.7812.18%11.315.54% Other spirits 1,130.621,180.784.44%1,253.826.19% Total World 2,025.742,177.297.48%2,307.866% Source: Vinexpo / The IWSR 2007 Spirit Consumption by Category Volume – Millions of 9 Liter Cases 15

19. Spirit Consumption Value – Billions of Dollars, Data from 2005 +12.11% 161.19 +5.45% +6.32% 169.98 180.71 200120052010 Source: Vinexpo / The IWSR 2007 16 * Retail sales including all taxes.

20. The US Market 17

21. Wine Consumption Volume – Millions of Hectoliters +40.91% 20.35 24.23 28.67 +10.52% +11.47% 1.11 1.37 1.23 20012005 2010 27.3 +19.58% +18.69% 23 19.23 +19.08% +18.32% SparklingStill 18 Source: Vinexpo / The IWSR 2007

22. Beer 109 Wine 12.3 Spirits 7.6 Consumption per Capita (in Liters) Still and Sparkling Wine / Spirits / Beer 19 Source: Vinexpo / The IWSR 2007 Forecast 2010:

23. Wine Consumption Source: Vinexpo / The IWSR 2007 + 45.41% 20012005 2010 15.65 19.17 22.75 +22.49% +18.7% Value – Billions of Dollars, Data from 2005 / Still 20 * Retail sales including all taxes.

24. Wine Consumption ( by Price Point ) Volume – Millions of Hectoliters / Still 9.34 10.8 11.69 11.03 7.45 9.32 2.87 3.24 +15.67%+8.2% +25.17% +18.35% +17.49% +12.87% 19.23 23.01 +41.93 % 2.45 27.3 +19.58%+18.69% 200120052010 Under $5$5-$10Over $10 21 Source: Vinexpo / The IWSR 2007

25. Wine Consumption (by Color) Volume – Millions of Hectoliters / Still 200120052010 Red White Rose 6.92 9.59 12.35 9.41 7.69 10.44 4.01 4.51 4.62 +38.51% +28.79% 22.27% +11.01% -13.3% +12.51% 19.23 23.01 27.3+41.93% +19.58%+18.69% 22 Source: Vinexpo / The IWSR 2007

26. Volume -Millions of Hectoliters – Still and Sparkling Wines Source: Vinexpo / The IWSR 2007 US Wine Consumption ( by Origin ) DomesticImported +40.91% +11.67% +44.56% +26.85% +15.11% 4.58 15.76 20.35 2001 6.63 17.6 24.23 2005 8.41 20.26 28.67 2010 +19.08% +18.32% 23