1. Confidential & Proprietary Copyright © 2007 The Nielsen Company November, 2007 Spreading the Love via CGM – Nielsen Insights on Wine and the Web

2. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 2 Media Measurement and Information Business Information Marketing Information

3. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 3 Wine Overview A Mid-Year 2007 Review of … “What’s Hot, and Not”

4. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 4 New Wine Brands Since the year 2000, there have been close to 2,500 new brands flooding Grocery store shelves, representing over 60% of the active brands today. Source: Nielsen Total US Food By calendar year – Active Brands = sales during the year Launch year based on zero sales in previous year

5. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 5 Tl U.S. Sales Dollar % Chg - 24 w/e 06/30/07 vs YAG 52 wk $ Share < -10% -5 to -10% 0 to -5% 0 to +5% +5 to +10% +10 to +15% +15 to +25% > +25% Ann 06 % Chg Nielsen Trend Ind. TTL Table 100%+6.4+6.9 Red49.9+9.3+7.4 White42.1+4.9+7.9 Blush7.9-2.1+/-0 Rose Table0.8+2.1+0.5 Rose Table (>$8.00) 0.1+66.4+66.9 Source: Nielsen Food, Drug, Liquor Rank Table Wine – by Color

6. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 6 Red Wines leading the growth Red Wines trailed White’s growth through October 2006, but since then the tide has turned Source: Nielsen Food, Drug, Liquor

7. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 7 Red Wines have benefited from positive media coverage 200620052004200320022001 Most recently (Nov. 2006), studies by the Harvard Medical School and the National Institute of Aging suggesting that daily doses of resveratrol - a substance found in Red Wine - may help people live longer, was widely covered Source: Nielsen Food, Drug, Liquor

8. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 8 Tl U.S. Sales Dollar % Chg - 24 w/e 06/30/07 vs YAG 52 wk $ Share < -10% -5 to -10% 0 to -5% 0 to +5% +5 to +10% +10 to +15% +15 to +25% > +25% Ann 06 % Chg Nielsen Trend Ind. TTL Table100%+6.4+6.9 Chardonnay22.5+2.1+5.2 Cab Sauvignon13.8+12.9+11.1 Merlot12.0+4.0+1.8 Pinot Grigio/ Gris 7.3+13.7+17.9 White Zin5.1 - 2.9-0.7 Pinot Noir4.6 + 26.3+20.3 Syrah/Shiraz4.0+1.4+1.9 Fume/ Sauv Blanc 3.8+8.0+9.5 Zinfandel2.2+10.7+11.6 Riesling2.0+23.5+25.2 Chianti1.8+10.2+8.7 Chablis1.3-9.7-4.4 Blends3.2+2.7+0.5 Source: Nielsen Food, Drug, Liquor Rank Table Wine – by Major Varietal

9. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 9 Tl U.S. Sales Dollar % Chg - 24 w/e 06/30/07 vs YAG Low to High Avg Price/ 750 ml 52 wk $ Share < -10% -5 to -10% 0 to -5% 0 to +5% +5 to +10% +10 to +15% +15 to +25% > +25% Ann 06 % Chg Nielsen Trend Ind. TTL Table$5.64100%+6.4+6.9 0-$2.99$2.0911.9-0.7-0.2 $3-$5.99$4.4922.3+4.8+3.6 $6-$8.99$6.8927.0+3.5+6.0 $9-$11.99$10.3021.2+9.3+11.9 $12-$14.99$13.046.8+15.5+16.3 >$15$19.3010.2+15.7+10.5 Rank Table Wine – by Price Tier Source: Nielsen Food, Drug, Liquor

10. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 10 Zin price growth mirrors category Nielsen Homescan Panel 52 weeks ending May 12, 2007 Zinfandel by Price Tier % Chg vs YA $15++14.1 $10-14.99+18.3 $8-9.99+13.8 $6-7.99+1.7 Under $6+9.2

11. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 11 Zin is among top 3 Millennials most-often wines Base: Millennial wine drinkers (n=346) Q39: In the past year, which varieties or blends of wine have you personally drank? (MA) Percentage of People Zinfandel

12. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 12 Top three Millennials most consumed wine types are also their favorite wine types. Base: Millennial wine drinkers (n=346) Q40: Please choose up to three of your favorite types of wine from the following. (MA) Percentage of People Zinfandel

13. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 13 Key Questions In The “Consumer Era” How many consumers are online? Is my target consumer online? To what extent are they engaged? How do I engage them on my brand/specialty?

14. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 14 The Internet Reaches Critical Mass… The Current Web Universe is 215.3 million people Source: Nielsen//NetRatings NetFacts Q1 2007/ NetView Audience Measurement August 07/ U.S. population data based on World-gazetter.com Internet Penetration August 07’

15. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 15 U.S. Internet Population Shows Modest YOY Growth With Users Consuming More Content And Spending More Time Source: Nielsen//NetRatings NetView, Aug ’06 & Aug ‘07 Aug-06Aug-07YOY Change (%) Sessions/Visits per Person58603% Domains Visited per Person1021075% Web Pages per Person2,2442,4369% Duration of a Web Page viewed0:00:500:00:512% PC Time per Person61:29:4766:37:298% Active Digital Media Universe155,671,206158,415,0022% Current Digital Media Universe Estimate209,775,535215,349,0033% Overall Internet Audience Comparison – August 2006 - 2007

16. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 16 Adult (Age 21+) Internet User Spends Much More Time Online Than Counterparts Source: Nielsen//NetRatings NetView, Aug ‘07 Average Internet User 21+ Internet User YOY Change (%) Sessions/Visits per Person607322% Web Pages per Person2,4362,77714% PC Time per Person66:37:2980:41:4921% Active Digital Media Universe158,415,002119,598,000

17. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 17 Consumers Drink of Choice 28% of the adult online population consumes Wine, totaling over 40.1 million individuals Source: Nielsen//NetRatings @plan, Fall 2007 26% of the adult online population consumes Spirits, totaling over 37.4 million individuals 33% of the adult online population consumes Beer, totaling over 47.5 million individuals 33% 28% 26%

18. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 18 Key Online Questions In The “Consumer Era” How can I “listen” to consumers’ to understand their needs and preferences? Where is the conversation coming from? Who are my brand advocates?

19. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 19 What Is Consumer-Generated Media?  Consumer-Generated Media (CGM): A variety of new sources of online content that is created, initiated, circulated, shared and used by consumers who are intent on educating others about products, brands and services. 44% of U.S. Online adults 53 million people are “content creators ” (Pew Research 2003) How Big is CGM 10,000+ Message boards 40+ million Blogs 45,000 Usenet newsgroups Product review sites Social networks Company feedback portals  Core Drivers: - Basic consumer needs of expression - Media fragmentation + device proliferation - Erosion of trust in traditional information sources - Rise of interactive media and social networks

20. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 20 Why Is CGM So Important?  Because, research companies find that consumers trust CGM and word of mouth far more than any other information source…

21. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 21 This is CGM Where Does It Originate? What if half the store shelf said, “Don’t Touch This?”

22. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 22 Who will be first here? ZAP #4 on “zinfandel” search, but no brands on first page (3 on first 3 pages, non- paid) Where Does It Originate?

23. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 23 Everyone Is Creating Content These Days Speakers Data supplied by: Seekers Fact: About 73% of people who shop online leave comments to share their thoughts and experiences with other consumers

24. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 24 Key Online Questions In The “Consumer Era” How are consumers’ talking about my category? How much buzz is there for my brand? What sentiment is being expressed? What are topics of discussion?

25. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 25 Consumers Are Passionate & Enjoy Sharing Wine Playlist Wine Network Wine Media Wine Tools Placement & Reviews “Apparently all it took was a glass of Château Malescot St-Exupéry (a Bordeaux Third Growth estate), a nibble of camembert cheese, and a group hug to prevent a recent robbery in a private home.” Advertising

26. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 26 What’s The Buzz On The Beverage Category?

27. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 27 What’s The Buzz On Wine? Varietals “Italian wine is the first, best and only. Doubt it, try making it, transporting it to the four corners of the known world, store it for a thousand years, then open it and drink it like it's fermented grape juice.” Forums.winespectator.com, 2007-09-30 “Why anyone would drink anything but Italian wine is beyond me...” Forums.travel.com, 2007-09-29 “I don't care for most French reds as I prefer up front fruit thats more > common with California wines. However, there are California reds that > aren't fruit forward and there are some French reds that are.” Alt.food.wine Posting Date: 2007-06-29 “And for those people who like/hate white zin, red zin is totally different. It's more like a chianti or syrah/pinot/merlot blend.” Forums.corvetterforum.com, 2007-09-28

28. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 28 How Do Consumers’ Feel About My Brand And What’s Driving Sentiment? Sentiment toward XYZ Brand, as a % of sample n = 100 relevant messages about Maker’s Mark XYZ Brand discussion topics, as a % of sample

29. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 29 Key Online Innovation Questions In The “Consumer Era” How are beverages being talked about from the consumers’ vantage point? What are complementary product offering opportunities? Which brands are most closely associated with beverages? What are innovative applications?

30. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 30  Cigarettes, Pizza and Wings highly associated with beer.  Vodka, Bourbon, Rum, Whiskey and Champagne most frequently associated alternatives – not Wine. How Do Consumers Talk & What Do They Associate w/ Beer  Lager, Ale and Stout are the most popular types of beer

31. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 31  Majority of discussion related to food and cooking.  Spirits equally associated with Wine varietals  Cabernet is wine variety most closely associated.  Social events and places highly associated with wine. How Do Consumers Talk & What Do They Associate w/ Wine

32. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 32 Key Online Innovation Questions In The “Consumer Era” Are consumers’ talking about my brand? Do they understand the benefits? Are there product misperceptions?

33. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 33 Screw Caps vs Corks – Confusing Innovation? “Its obvious that people who don't really follow or drink wines, believe the old stigma that screw caps represent cheap wine.” Winespectator.com, 2007-07-23 “You know that the buzz is that screw cap wine is actually better preserved than corked bottle wine.” Fodors.com, 2007-05-23

34. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 34 Key Online Questions In The “Consumer Era” What are health and wellness trends? What are key trend opportunities? How is Wine being associated with health/wellness benefits?

35. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 35 Red Wine Links To Health And Wellness “Since drinking alcohol in excessive amounts can have harmful health effects, doctors generally recommend moderate red wine consumption, which is an average of two drinks a day for men and one drink a day for women” Siliconinvestor.com, 2007-08-31 “Health benefits of red wine include reducing your risk of prostate cancer. Other benefits include lower risk of heart attack, stroke, diabetes, and cardiac death.” Religion on the Rocks, 2007-09-16 “A glass of red wine could improve "good" HDL cholesterol.... Flavonoid polyphenols include catechins, flavonones, flavonols, isoflavones, reservatrol, and anthocyanins....Red wine Catechins and reservatrol (flavonoids). Toast your good health!...” Type-2-Diabetes@yahoogroups.com, 2007-07-17 “Consuming wine conservatively (pace yourselves, people) will help you reap all the heart-healthy benefits” Afterdawn.com, 2007-06-10 Individuals discuss the antioxidant power in red wine to help prevent / fight cancer

36. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 36 Organic Trends Translating To Wines… “Organic wine is something I won't/can't buy. It is really hard to find, and when you do, it's usually really expensive.” Mommysavers.com, 2007-09-12 “I can't say that I think the organic grapes TASTED much different from non-organically grown wine, but organic grapes tend to leave a better taste in your mind at least. ;-)” Food Follies - Daily Specials, 2007-08-31 “And my experience is that organic wine is clearly better, since it isn't bringing with it the traces of chemicals which are used in the commercialization of the wine-making process.” Liamvino's Journal, 2007-08-26

37. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 37  Organic is a key tenet of sustainable living with organic products driving 53% of sustainability discussion..  Plastic packaging and the growing utilization of CSAs (community supported agriculture) elicit steady buzz over the timeframe. Key Trends Driving Sustainability Buzz Buzz share for key trends, as a % of sustainability discussion n = 241,227 messages about sustainability, between 7/01/2006 and 6/30/2007.

38. Confidential & Proprietary Copyright © 2007 The Nielsen Company Page 38 Thank you! Brian Lechner brian.lechner@nielsen.com 510.745.4133 www.nielsen.com