Steven Billey-NomacorcDan Schuette-HEB

Ashley Hughes-HEB

9:00 am 7-06-16

HEB Retail

Assurance Program

What and why?

Three stages• Label testing- Real Picture Research

• Sensory testing- Nomacorc sensory panel under the

protocol of Sheri Morano –Master of Wine

• Shelf Consistency Study- Conducted by independent lab

What should you gain?• Knowledge that the package is appealing to consumers and the price points match the

consumer appeal

• The wine either underperforms, is consistent, or over-delivers a price point

What is todays objective?

• Demonstrate the capabilities of this type of study.

• Conduct followup meeting to fine tune study to retailers need.

• Gain approval to move forward with additional studies.

Real Picture

John Lawlor

Sensory

Evaluation

About Sheri Morano

31

Purpose

• To determine the probability for repurchasing based off initial tests.

“ Does the wine meet the competitive set?”

• Determine if there are opportunities to improve quality or move pricing.

• Will results reinforce buying decisions.

32

Introducing Sheri Sutter-Morano

• Sheri has worked with Nomacorc for the past eight years.

• Holds Master of Wine Certificate and works with the US MW educational program

• She is known throughout the wine industry as an educator and expert in the field of wine.

• We have asked Sheri to assist to develop a protocol that would evaluate wine based off price points with the assumption that wines will taste different as you graduate in price.

• She will assemble panelist from the Nomacorc sensory team.

33

Panel Testing- Twin Arches

• Eight Panelist from the Nomacorc

Sensory Team.

• Trained by Antoinette Morano and

Sheri Morano MW

• Trained to identify wine characteristics

I had the panel taste the following wines:

Wine 1 Robert Mondavi Private Selection Chardonnay California 2014 13.50%

Wine 2 Twin Arches Chardonnay California 2012 13.80%

Wine 3 Clos du Bois California 2014 13.50%

Wine 4 Chateau Ste Michelle Columbia Valley, Washington 2014 14%

Wine 5 Cupcake Cabernet Sauvignon Central Coast, California 2013 13.50%

Wine 6 Twin Arches Cabernet Sauvignon California 2013 13.80%

Wine 7 Kendall-Jackson Vintner's Reserve Cabernet Sauvignon Sonoma Co, California 2013 14.50%

Wine 8 Robert Mondavi Private Selection Cabernet Sauvignon California 2014 13.50%

34

Overall Quality testing summary

Wine 5 Cupcake Cabernet Sauvignon 1 1 5 1 1 $8.88

Wine 6 Twin Arches Cabernet Sauvignon 2 5 1 1 $8.49

Wine 7 Kendall-Jackson Vintner's Reserve Cabernet Sauvignon 2 1 3 3 $12.51

Wine 8 Robert Mondavi Private Selection Cabernet Sauvignon 5 4 $10.43

Quality level PoorPoor/

AcceptableAcceptable

Acceptable/

GoodGood Very Good No Answer

Average

Price

Wine 1 Robert Mondavi Private Selection Chardonnay 1 3 3 1 1 $8.32

Wine 2 Twin Arches Chardonnay 4 1 1 3 $7.49

Wine 3 Clos du Bois 1 2 5 1 $9.24

Wine 4 Chateau Ste Michelle 1 3 5 $8.95

35

Likelihood of

purchasing

this wine:

Extremely likely

to buy this wine

Very/

Somewhat

Likely

Very likely to

buy this wine

Somewhat

likely to buy

this wine

Not very likely

to buy this wine

Not at all likely

to buy this wine

No

Answer

Wine 1 Robert Mondavi Private Selection Chardonnay 1 1 3 4

Wine 2 Twin Arches Chardonnay 1 3 2 3

Wine 3 Clos du Bois 2 6 1

Wine 4 Chateau Ste Michelle 3 2 3 1

Wine 5 Cupcake Cabernet Sauvignon 1 4 2 2

Wine 6 Twin Arches Cabernet Sauvignon 5 2 1 1

Wine 7 Kendall-Jackson Vintner's Reserve Cabernet Sauvignon 1 2 5 1

Wine 8 Robert Mondavi Private Selection Cabernet Sauvignon 2 5 2

Sensory panel purchase intent

36

Twin Arches Chard Overall

WINE 2 Twin Arches Chardonnay Taster 1 Taster 2 Taster 3 Taster 4 Taster 5 Taster 6 Taster 7 Taster 8 Taster 9

APPEARANCE

Clarity clear - hazy Clear Clear Clear Clear Clear Clear Clear Clear Clear

Intensity pale - medium - deep Pale/Med Medium Medium Medium Medium Medium Medium Medium Deep

Color lemon-green – lemon – gold – amber - brown Lemon Lemon Gold Lemon Lemon Lemon Gold Lemon Lemon

NOSE

Condition clean – unclean (faulty?) Clean Clean Clean Unclean Clean Clean Clean Clean Unclean/Faulty

Intensity light – medium(-) – medium – medium(+) – pronounced Med - Medium Medium Med - Med - Medium Light Med - Med -

Aromas e.g . fruits, flowers, spices, vegetables, oak aromas, other

Cooked apple,

a bit

plasticy/gluey?

, lacks

freshness,

vanilla, butter

Lemon, vanilla,

citrus

Fruits,

Vegetables

Flowers,

spices, oak

aromas

?

More

vegetable,

lychee fruit

Green appleOak, apple,

apricot, butter

Matchstick,

vegetal, citrus,

some oak

PALATE

Sweetness dry – off-dry – medium-dry – medium-sweet – sweet – luscious Dry/Off-dry Dry Medium Sweet Off-dry Off-dry Medium Sweet Off-dry Dry Dry

Acidity low – medium(-) – medium – medium(+) - high Med - Medium Med - Med - Low Low Med - Med + Med +

Alcohol low – medium(-) – medium – medium(+) - high Medium Medium Med - Med - Low Low Medium Medium Medium

Body light – medium(-) – medium – medium(+) - full Medium Med + Light Med - Med - Medium Medium Medium Medium

Flavor intensity light – medium(-) – medium – medium(+) - pronounced Med - Med + Medium Med - Med - Medium Medium Medium Med -

Flavor characteristics e.g . fruits, flowers, spices, vegetables, oak flavours, otherButter, yellow

apple, vanillaLemon, Vanilla

Fruits,

Vegetables

Flowers,

spices, oak

aromas

? VegetableGreen apple,

oxidized?As nose

As nose, but

bitter

Length of Finish short – medium(-) – medium – medium(+) - long Med - Med - Med - Short Short Med - Short Med - Medium

Overall Impression on

the Finishunpleasant - somewhat pleasant - pleasant - very pleasant Unpleasant Pleasant

Somewhat

pleasantUnpleasant Pleasant

Somewhat

pleasantUnpleasant Pleasant Unpleasant

Quality level Faulty - Poor - Acceptable - Good - Very Good - Excellent Poor Good GoodPoor/Acceptabl

eGood Poor Poor Acceptable Poor

$5.99 Just Right Too Little Too Little Just Right Just Right Too Little Just Right Too Little Just Right

$7.99 Too Much Just Right Too LittleJust Right/Too

MuchToo Much Just Right Too Much Too Little Too Much

$9.99 Too Much Just Right Just Right Too Much Too Much Too Much Too Much Just Right Too Much

$11.99 Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much

$15.99 Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much

$19.99 Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much

Likelihood of

purchasing this wine:

Extremely Likely - Very Likely - Somewhat Likely - Not Very

Likely - Not At All Likely

Not At All

LikelyVery Likely

Somewhat

Likely

Not At All

Likely

Somewhat

LikelyNot Very Likely Not Very Likely

Somewhat

Likely

Not At All

Likely

Write in any other

comments you have

about this wine:

Wine had a

slight chemical

note to it - also

seemed tired.

Too vegetal for

me

Bitter after-

taste

Bitter finish

lingers - not

appealing

If this wine is priced

at the following

price, is that Too

Little, Just Right or

Too Much

37

Twin Arches Cabernet Sauvignon Taster 1 Taster 2 Taster 3 Taster 4 Taster 5 Taster 6 Taster 7 Taster 8

clear - hazy Clear Clear Clear Clear Clear Clear Clear Clear

pale - medium - deep Pale Pale Pale Pale Pale Medium Medium Pale

purple – ruby – garnet – tawny – brown Ruby Ruby Ruby Ruby Ruby Ruby Garnet Ruby

clean – unclean (faulty?) Somewhat clean Clean Unclean Clean Faulty ? Clean Clean Clean

light – medium(-) – medium – medium(+) – pronounced Light Med + Med - Medium Light Light Med - Med -

e.g. fruits, flowers, spices, vegetables, oak aromas, otherHint of vinegar, red fruits, wood

Blackberry, black pepper

Fruits, flowers, alcohol

Fruit, oak aromasMetallic, low cherry

Spice, flowersBlack cherry, pepper

Cherry, blackberry, oak

dry – off-dry – medium-dry – medium-sweet – sweet – luscious Dry Medium-dry Medium-dry Dry Off-dry Medium-dry Dry Dry

low – medium(-) – medium – medium(+) - high Medium Med - Med - Med + Med - Low Medium Med -

low – medium(-) – medium – medium(+) - high Low Med - Low Med - Med - Low Med + Medium

low – medium(-) – medium – medium(+) - high Medium Med - Medium Med - Med - Medium Med + Medium

light – medium(-) – medium – medium(+) - full Light Med - Med - Medium Medium Medium Medium Med -

light – medium(-) – medium – medium(+) - pronounced Light Medium Light Med - Medium Light Medium Med -

e.g. fruits, flowers, spices, vegetables, oak flavours, otherRed fruits, wood, fairly simple, cranberry

Blackberry, black pepper

Fruits, vegetables Spices Low bitter Spice, flowersBlack cherry, pepper, buttery

Cherry, blackberry, oak

short – medium(-) – medium – medium(+) - long Short Med + Med - Medium Medium Short Medium Medium

unpleasant - somewhat pleasant - pleasant - very pleasantSomewhat pleasant

PleasantSomewhat pleasant

Somewhat pleasant

Somewhat pleasant

Somewhat pleasant

Somewhat pleasant

Pleasant

Faulty - Poor - Acceptable - Good - Very Good - Excellent Acceptable Good Poor Acceptable/Good Acceptable Poor Acceptable Acceptable

$5.99 Just Right Too Little Just Right Too Little Too Little Too Little Too Little No Answer

$7.99 Just Right Too Little Too Much Too Little Just Right Just Right Just Right No Answer

$9.99 Too Much Just Right Too Much Just Right Just Right Too Much Too Much No Answer

$11.99 Too Much Just Right Too Much Just Right Too Much Too Much Too Much Too Much

$15.99 Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much

$19.99 Too Much Too Much Too Much Too Much Too Much Too Much Too Much Too Much

Extremely Likely - Very Likely - Somewhat Likely - Not Very Likely - Not At All Likely

Not Very Likely Somewhat Likely Not At All Likely Somewhat Likely Not Very Likely No Answer Somewhat Likely Somewhat Likely

Simple, very light, short finish

Not a strong aroma or flavor

Twin Arches cabernet results

38

Overall Average

Average Price Calculations: $6.99 $10.99 $5.99 $10.99 $8.99 $7.99 $7.99 $7.99 $8.49

$5.99 $9.99 $5.99 $9.99 $7.99 $7.99 $7.99 $7.99

Twin Arches- Average price analysis

Cabernet

Overall Average

Average Price Calculations: $5.99 $8.99 $9.99 $6.49 $5.99 $7.99 $5.99 $9.99 $5.99 $7.49

$5.99 $7.99 $9.99 $5.99 $5.99 $7.99 $5.99 $9.99 $5.99

Chardonnay

39

Results and Opinions

• The Twin Arches profile tested low. 50% of the panel thought the

price value relationship was too on the chardonnay and just right at 5.99.

• The cabernet numbers were slightly better on purchase intent.

• The cabernet had a higher approval at 7.99 than did the chardonnay

• There were chemical notes on the nose and bitterness which could be

closure related.

• 6 of the 9 panelist probably wouldn’t buy this wine in chardonnay

• 3 of the 9 panelist probably wouldn’t buy this wine in cabernet.

Opinion: the wine needs to improve on quality to drive repeat purchases.

Retail

Consistency

Evaluation

Steve Billey

Retail Consistency

Postponed due to

Inventory and Sensory

Background

Objective to assess wine quality of considering those factors

influenced by closure selection

All wines were selected off the shelf at well-established wine

retailers based in California

All tests were performed at independent laboratories

Testing consisted of TCA, carbon dioxide (CO2) and free & total

sulfur dioxide (SO2)

Retail Wine Quality Assessment

Test Influence on Wine Quality

TCA cork taint & favorable aroma/flavor

suppression

CO2 freshness & crispness

SO2 oxidation prevention

200

300

400

500

600

700

800

0 4 8 12 16 20 24 28 32 36

CO

2p

pm

Bottles

Wine Consistency Assessment – CO2

Findings based on 36 bottles of each wine

wines exhibited significant variation in CO2 levels

― Typical target greater than 500ppm to ensure a perception of freshness

― Variations greater than 200ppm lead to perceptable differences in

sensory perception

Roughly 40% of wines tested had CO2 values of less than 500pm and overall

range in values exceeded 400ppm

Carbon Dioxide (CO2) Consistency Testing

400 ppm

0.0

0.5

1.0

1.5

2.0

2.5

0 4 8 12 16 20 24 28 32 36

TC

A n

g/L

TCA Contamination

Findings based on 36 bottles of each wine

Of the wines under colmated natural corks, 19% contained detectable levels of

TCA

TCA levels greater than 0.5ppm can mute fruity aromas and overall flavor

TCA Fruit Aroma & Flavor

Suppression

Bottle Number

Wine Quality Analysis - TCA

Wine Consistency Assessment – SO2

0

0.2

0.4

0.6

0.8

1

0 5 10 15 20

FS

O2

(mg

/L)

TS02 (mg/L)

Sulfur Dioxide (SO2) Analysis

Findings based on 36 bottles of each wine

No detectable levels of FSO2 found in any of the bottles tested

Clear cause for major concerns relating to wine oxidation

Final conclusion

• The Twin Arches wines did not perform up to the level of

the competitive set in either Packaging or Sensory.

• In the majority of testing lowering the price was a short term

solution.

• Longterm updating the labels and quality of the varietals

could drive price increases and incremental sales.

What is the proposal?

• Test one existing brand that has not performed to Retailer

expectation

• Allow 30 days for the return data.

• If you like the results, Nomacorc will pay for 4 more

Winery Partner tests this year. Either before or after

selection. Must have one new item if there are new items

in the que.