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WINE INDUSTRY F INANCIAL SYMPOSIUM

B I L L N E WL A N DS , C O O

S E P T EM B ER 2 6 , 2 0 1 7

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TODAY’S

WINE BUSINESS

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ORSON WELLES FOR PAUL MASSON WINE (APRIL 2, 1979)

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CARLO ROSSI VINEYARDS ADVERTISEMENT (1986)

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BARTLES & JAYMES COMMERCIAL (1980s)

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THE OLD DAYS

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PRIVATE LABEL

VARIETALS

PREMIUMIZATION

CONSOLIDATION

APPELLATION

DTC

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FROM TO TO

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IN AND

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BEER WINE SPIRITS

70%

15% 13%

40%

23%

30%

1993 2013 1993 2013 1993 2013

ALCOHOL

CONSUMPTION TRENDS

AMONG AGES

21–29

THE CONSUMER

PREFERENCES

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• MORE THAN HALF OF TBA DOLLAR SALES COME FROM CONSUMERS WHO DRINK ACROSS ALL THREE CATEGORIES

(BEER, WINE, AND SPIRITS)

• U.S. CONSUMERS WHO DRINK ACROSS CATEGORIES SPEND MORE ON THEIR AVERAGE BEVERAGE ALCOHOL PURCHASES

(1) IRI, Total U.S. All Outlets, 52 weeks ending May 14, 2017(2) IRI, Total U.S. All Outlets, 52 weeks ending May 14, 2017, average household TBA spend per year

$70

$196

$454

1 CATEGORY 2 CATEGORIES 3 CATEGORIES

TBA CONSUMERS DOLLARS PER BUYER

(2)

TBA CONSUMERSSHARE OF DOLLARS

(1)

SPIRITS

ONLY

2%

WINE

ONLY

4%

BEER ONLY

7%

55%DRINK ALL 3

CONSUMER PROFILES

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THE EFFECT

Proud

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SO HAVE THINGS CHANGED?

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CONVENIENCE

DISCOVERY

FLAVOR

EASE

CONSUMER

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AS A VARIABLE, I.E. FLAVOR

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IS IMPORTANT

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CONVENIENCE =

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EASE OF

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EASE OF

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HOW MANY OF YOU ORDER YOUR ____ ONLINE?

WHERE DO YOU GET MOST OF YOUR INFO?

HOW DO YOU GET DIRECTIONS?

HOW DO YOU GET THE WEATHER?

HOW DO YOU CHECK THE PLANE SCHEDULE?

WHEN ARE MY KIDS’ GAMES?

HOW’S THE STOCK MARKET TODAY?

BLAH, BLAH, BLAH

EASE OF

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MOST NOW HAVE

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BLENDS TO VARIETALS TO BLENDS

ZIN TO WHITE ZIN TO ZIN TO NO ZIN

ROSÉ TO BLUSH TO “OH NO, IT’S PINK” TO ROSÉ

MERLOT TO PINOT (DAMNED MOVIE) TO ?

SHIRAZ TO SYRAH OR EVEN MALBEC

CHARD TO CHARD TO CHARD

FRANCE TO NAPA

AUSTRALIA TO SONOMA

CHILE TO ARGENTINA

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THE ONLY THING THAT’S

CONSISTENT IS

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THANK you