1. Source: Christian Miller www.fullglassresearch.com 2008 ZAP’s MegaZin Study: 2 Years Later Christian Miller Full Glass Research June 2008

2. Source: Christian Miller www.fullglassresearch.com 2008 The Big Picture  Wine Sales UP, trade-ups continue  Economic storm clouds, but historically not a big factor for wine  Consumer base broadening  Among bev-alc consumers, majority drink wine  More core wine consumers than marginals  Gender parity  Millenials  Aged 14-31, 70 million (Boomers aged 44-62, 77 million)  Millenials and GenX drinking more wine  More imports, more reds, less Merlot/Chard/Wzin

3. Source: Christian Miller www.fullglassresearch.com 2008 The Big Picture, volume 2  The Sierra Gap  Environment – not a factor yet, but Core Involved wine consumers overlap nicely with “Green” consumers  Classic brands, classic appellations eroding  Wine – it’s all good  Safe to experiment  What else can you tell me?  Regionality

4. Source: Christian Miller www.fullglassresearch.com 2008 Major Issues for Zin Producers

5. Source: Christian Miller www.fullglassresearch.com 2008 Key Points from Consumer Study  Alcohol levels and Ultra-ripeness – not a problem yet  We need – and they want – more Zin in restaurants  There is a Zinfandel confidence gap – “I get Zin, but do they?”  Terroir, Old Vines, Spice, Jam, Berries – yes please!

6. Source: Christian Miller www.fullglassresearch.com 2008 Consumer Study Methodology  Online survey in 2005  invitations emailed to Wine Opinions Panel and various ZAP mailing lists  Link in email takes client to web-based survey  Results tabulated and analyzed separately  Wine Opinions=Core involved Wine Consumer  Sample Size (completed survey):  WO Panel – 415  ZAP – 670  Ex-Zappers – 102

7. Source: Christian Miller www.fullglassresearch.com 2008 Who are Zin Fans?

8. Source: Christian Miller www.fullglassresearch.com 2008 Wine Consumption WO panelHFZ*ZAP Drink wine daily or almost daily 37%53%64% Drink Zin > once a week 7%36%49% Don’t drink Zin17%0% Est. Zin share of consumption <10%40%50% Own over 120 bttls18%25%68%

9. Source: Christian Miller www.fullglassresearch.com 2008 Hangtime and Alcohol – “Zin is…”

10. Source: Christian Miller www.fullglassresearch.com 2008 Hangtime & Alcohol  Consumers have not yet made the link between wine style and alcohol  Taste is more diverse than the Parkerators of the world would have you believe  This is an evolving issue  Trade perception vs. Consumer perception

11. Source: Christian Miller www.fullglassresearch.com 2008 Zin in Restaurants WO panelHFZ*ZAP “…would like to see more and better Zinfandels available by-the-glass…” 63% Agree77% Agree 89% Agree “restaurants rarely have a good Zinfandel selection” 52% Agree58% Agree 66% Agree *High Frequency Zin drinkers – 1+ times a week small sample size, C.I. 90% = 5-11%

12. Source: Christian Miller www.fullglassresearch.com 2008 Zinfandel – the Confidence Gap (Core Involved Wine Consumers)

13. Source: Christian Miller www.fullglassresearch.com 2008 Zinfandel – the Confidence Gap (ZAP members)

14. Source: Christian Miller www.fullglassresearch.com 2008 Zin On-Premise – What to do?  Publicize findings about consumers desiring better Zin selection, especially to the trade  Compare Zin’s share of wine lists - quantify  Court on-premise more  Events  Play the terroir card  Define your style  By-the-Glass programming – less “risk” for buyer, faster feedback  Target casual, bistro, neighborhood. Not luxury or business-oriented restaurants.

15. Source: Christian Miller www.fullglassresearch.com 2008 “I’m often unsure about what flavors or style I will get when I buy Zinfandel”

16. Source: Christian Miller www.fullglassresearch.com 2008 The Flavors of Zin

17. Source: Christian Miller www.fullglassresearch.com 2008 Signs of Good Zin

18. Source: Christian Miller www.fullglassresearch.com 2008 Where do we go from here?  Alcohol levels and Ultra-ripeness – still not a big issue for consumers, still growing for trade/media  Zin in restaurants – what’s your take?  The Zin confidence gap  A Zin generation gap?