Rosé Wine Consumer Survey. August 9, PO Box 2955 Yountville, CA winemarketcouncil.com

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1 Rosé Wine Consumer Survey August 9, 2017 PO Box 2955 Yountville, CA winemarketcouncil.com

2 Table of Contents Methodology & Participant Background... 1 Highlights... 2 Rosé Wine Drinker Respondent Profile... 5 Rosé Wine Drinker Respondent Wine Consumption... 7 Rosé Wine Purchase Behavior... 8 When and Where Rosé is Consumed Rosé Style Preference Dry vs. Sweet Rosé Drinkers Insights from the Wine Business Institute at Sonoma State University... 24

3 According to Nielsen, rosé volume sales grew by +57% over the last 52 weeks (even faster than the +39% growth rate in the prior year), significantly outperforming the 3% growth rate for the table wine category, and every other major variety of wine. 1 Wine Market Council took a closer look at this growing category using an expanded snapshot survey to examine the rosé preferences and consumption habits of rosé drinkers who consume wine on an at-least-once-a-week basis. Methodology & Participant Background This Snapshot Survey was conducted using a respondent sample sourced from Survey Sampling International 2 that targeted U.S. wine drinkers who drink wine at least once a week, and was fielded through Survey Monkey. Age/gender quotas for rosé wine drinkers who consume wine at least once a week were set based on the 2016 Wine Market Council segmentation study. A total of 838 rosé drinkers completed the survey. This respondent pool does not purport to be representative of the U.S. rosé wine drinking population or the U.S. adult population at large. Therefore, the results of this study should only be considered a "snapshot" of wine drinkers' self-stated opinions on the topics covered in the survey. Study results were segmented by age range and gender, as well as by: o Wine consumption: high frequency wine drinkers (consume wine at least a few times a week) vs. once-a-week wine drinkers. o Rosé consumption: respondents who drink rosé consistently throughout the year vs. those who only drink rosé certain times of the year or infrequently (every few months or several times a year). o Rosé purchases: buy $20+ rosé at least several times a year vs. those who buy $20+ rosé once a year, less often, or not at all. o Rosé style preference: survey respondents who reported a preference for what they perceive to be drier rosé vs. those who reported a preference for what they perceive as sweeter rosé; and those who reported a preference for what they think of as a robust rosé vs. those who prefer a rosé with a lighter flavor profile vs. respondents who like both styles. Significant differences of note were included in this report and represent data that is statistically significant at a confidence level of 95%. 3 In some cases, numbers that should total to 100% may not due to rounding. 1 Nielsen measured off premise channels (52 weeks ending June 17, 2017; dollars). 2 This respondent pool was sourced through Survey Sampling International from a targeted, non-probability panel. 3 Wine Market Council performs statistical significance tests on differences in respondent stated behavior or opinion, assuming a normal distribution around the response means. These tests are intended to highlight differences among the segments of the respondent sample and approximate a range of likely results among wine consumers. 1

4 Highlights ü Approximately, two-thirds of respondents prefer sweeter rosé (66%) and one-third prefer drier rosé (32%) (see page 16). o The top brands respondents reported they drink support this: the top brands respondents reported they last consumed tended to be rosés made in a sweeter style (Barefoot, Cupcake, Sutter Home, Beringer, Gallo, Yellowtail, Franzia) (see page 10). o Sweeter rosé drinkers were slightly more apt to have purchase interest the darkest pink wine (52% vs. 42% of drier rosé drinkers) (see page 22). o Drier rosé drinkers tend to skew male, be slightly older, and drink wine more frequently than sweeter wine drinkers. They also tend to spend more on rosé. They had a greater incidence of last consuming French rosé and drinking it during the warmer months (see page 20 and 21). o Sweeter rosé drinkers are more likely to skew female and younger, and drink rosé consistently throughout the year (see page 20 and 21). ü In terms of flavor profile, a lighter rosé style is preferred by one-third of respondents (34%) and a more robust, fullbodied rosé by 22%. However, 40% of survey participants like both styles (see page 16). ü Just over half of the respondents perceive the dark pink wine, from among those shown on the following page, as the sweetest (54%), followed by the dark salmon wine (19%) (see page 18). ü More than three-fourths of respondents would be most likely to purchase a rosé wine with a medium (30%) to dark pink color (48%), when asked to choose from among the spectrum shown at right (for details, see page 17). o The sweeter rosé wine drinkers were more likely to believe that the pink wines were sweeter (72% vs. 58% of drier wine drinkers) (see page 23). 2

5 ü The dark salmon wine, followed closely by the dark pink wine were perceived as being most robust in flavor (45% and 37% respectively) (see page 19). o Sweeter rosé drinkers were more apt to believe the dark salmon wine was most robust (49% vs. 39%) (see page 23). - $29.99 rosé at all (34%), and 44% not purchasing $30+ rosé at all (see page 8). ü Approximately half of the respondents recalled that the last time they consumed rosé (in any situation), the rosé they consumed was from California (51%). One in ten reported the last rosé they drank was from France (10%). Some 16% did not remember the origin of the last rosé they consumed (see page 8). It should be noted that these sell-reported consumption results do not directly correspond with sales data from Nielsen, and also suggests that these respondents may not be clear where the brands they drink are produced. o High frequency wine drinkers and those who buy $20+ rosé at least several times a year were more apt to have consumed French rosé on their last rosé-drinking occasion than less frequent wine drinkers (12% vs. 6%, and 14% vs. 7% respectively) (see page 9). ü Among the top substitutes for rosé were both dry wines and wines typically made in a sweeter style: Moscato (38%), Chardonnay (36%), Pinot Grigio/Gris (32%), Red blends (31%), Riesling or white blends (29%), Pinot Noir and sparkling wine (28%) (see page 10). ü Respondents purchase rosé priced under $15 most frequently (47% buy under $10 and 52% buy $10 - $14.99 rose at least monthly), but $10 - $14.99 is the price category within which the greatest number of respondents purchase rosé, as only about one in ten "never" buy rosé in this price range (9% compared to 18% - 44% who "never" buy in the other price categories). Over $20 rosé is purchased less often than under $20 rosé, with one-third not purchasing $20 o Drier rosé drinkers would be more likely to choose Pinot Grigio/Gris or Sauvignon Blanc as a substitute for rosé (39% vs. 29% and 28% vs. 17% respectively), while those who prefer sweeter rosé would be more apt to choose Moscato (47% vs. 21%), Riesling (32% vs. 25%), or red blends (34% vs. 25%). (see page 21). 3

6 ü Rosé is a very versatile wine category, appropriate for a diverse set of situations. However, respondents who prefer drier rosé are more likely to regard it as more appropriate with lighter foods and for lunch/brunch occasions, and those who prefer a sweeter style rosé are more likely to regard it as more appropriate than other wines for holidays and celebrations (see page 21). ü Rosé is consumed by a majority of survey participants throughout the year (60%). Rose is not just considered a summer drink, as only 23% reported they drink rosé more frequently in warmer months than cooler months (see page 11). ü Respondents tend to drink rosé more often with food than without: 30% mostly drink it with food, and over half (52%) sometimes drink it with food (see page 13). 4

7 Rosé Wine Drinker Respondent Profile ü Quotas based on the 2016 Wine Market Council segmentation study were used to ensure that the 838 consumers who participated in this survey were representative of the gender and age breakdown of U.S. rosé drinkers. o Overall, respondents were 57% female and 43% male, only a directionally greater proportion of females as compared to at-least-once-a-week wine drinkers in general (55% female/45% male). Rosé Wine Drinker Survey Participants by Age Range * % 18% 21% 15% 19% 12% 18% 14% 21% 24% 28% 21% Total Male Female o The average age was 45. This is significantly younger than at-least-once-a-week wine drinkers in general, due to a larger under 40 cohort (44% vs. 31%) and a smaller 60+ cohort (23% vs. 36%) % 21% 26% *Based on generational quotas o The male rosé wine drinker cohort was made up of a larger proportion of respondents in their 30s and 40s than the female rosé consumer cohort (47% vs. 33%), while the female cohort included a larger proportion of respondents 50 and older (47% vs. 35%). This differed from at-least-once-a-week wine drinkers in general, for whom male and female segments are gender neutral. 5

8 ü Survey participants represented 48 states and the District of Columbia. o Over half of the respondents live in suburban areas (54%), and just under one-third in urban areas (30%). Rosé Wine Drinker Survey Participants by Location Rural 16% Urban 30% Suburban 54% 6

9 Rosé Wine Drinker Respondent Wine Consumption ü Consistent with wine consumers who drink wine at least once a week, the majority of survey participants reported consuming wine a few times a week (58%), one-quarter drink wine less often, that is once a week on average (25%), and the remaining 17% every day. ü In addition to rosé, more than three-quarters drink white and red wine at least occasionally (80% and 76% respectively), and over half drink sparkling wine at this rate of frequency (56%). Rosé Wine Drinker Survey Participants by Consumption Frequency Once a week 25% Every day 17% 58% More o6en than once a week, but not every day Additional Alcohol Consumption Among Rosé Wine Drinker Survey Participants 80% 76% 56% Also drink white wine Also drink red wine Also drink sparkling wine 7

10 Rosé Wine Purchase Behavior ü Under $15 rosé is purchased with the greatest frequency by survey participants (47% buy under $10 and 52% buy $10 - $14.99 rose at least monthly), but $10 - $14.99 is the price category within which most respondents purchase rosé, as only about one in ten "never" buy rose in this price range (9%). o Respondents buy under $10 rosé most often, with onequarter buying it in this price category on a weekly basis (23%). Less than one-fifth buy rosé weekly in any other price category weekly. o The majority buy rosé that costs between $15 and $19.99 either monthly or several times a year (55%) ü As is typical of wine consumers in general, male and younger respondents buy rosé in all prices more often than female and older respondents. ü Half of the survey respondents indicated that the last rosé they consumed was from California (51%). France was the top import (10%), closely followed by Italy (7%). 4 o It is important to note that 16% didn't know or couldn't remember the origin of the last rosé they consumed. Rosé Wine Last Consumed by Country/ State of Origin ü $20+ rosé is purchased less often than under $20 rosé. In fact, 34% do not purchase $20 - $29.99 rosé, and 44% do not purchase $30+ rosé at all. California Other U.S. States France Italy 11% 10% 7% 51% Spain 1% Rosé Wine Purchase Frequency by Price (750 ml retail price) Portungal South Africa Don't know/remember <1% <1% 16% Weekly Monthly Several times a year Once a year or less Never Under $ % 24% 23% 10% 19% $10 - $ % 34% 29% 10% 9% $15 - $ % 25% 30% 13% 18% $20 - $ % 17% 25% 16% 34% $30 or more 5% 11% 19% 21% 44% 4 It should be noted that these sell-reported consumption results do not directly correspond with sales data from Nielsen, and also suggests that these respondents may not be clear where the brands they drink are produced. 8

11 ü Those who buy $20+ rosé at least several times a year are more apt than others to have last purchased French (14% vs. 7%) or Italian rosé (11% vs. 3%). ü High frequency wine drinkers were twice as likely than oncea-week wine drinkers to have last consumed French rosé (12% vs. 6%). ü Older respondents were more likely to have last consumed California rosé (56% of those aged 40+ vs. 46% of those under 40), and younger respondents were more likely to report they last drank rosé from France or Italy (14% under 40 vs. 7% of those older, and 10% under 40 vs. 4% of those older, respectively). 9

12 Respondents were also asked to name the brand of rosé they last consumed. ü The top brand named, Barefoot, was only called out by 6% of respondents (mentioned 45 times). In fact, 27% of respondents named a brand that wasn't named by any other respondent, and 41% did not recall the brand of the last rosé wine they consumed. ü Along with Barefoot, Cupcake, Sutter Home, Beringer, Gallo, Yellowtail, and Franzia were the only brands mentioned by more than 1% of respondents (table at right shows total number of mentions). Nearly all of these brands have a sweeter profile, and all are either California or Australian brands. Very few named a wine that wasn't either made in the U.S. or has a U.S. producer connection. Last Brand of Rosé Consumed # of Mentions Barefoot 45 Cupcake, Sutter Home 26 Beringer 22 Gallo, Yellowtail, Franzia 13 Stella Rosa 9 Mondavi 7 Arbor Mist, Carlo Rossi 6 Coppola 5 Ménage à Trois, Miraval, Woodbridge 4 Apothic, Arnot-Roberts, Charles Shaw, Reginato, San Sebastian, Turning Leaf, Winking Owl, Gerard Bertrand, Justin, Muga Rioja Cooper's Hawk, Josh, Oak Leaf, Paul Masson, Aix, La Vielle Ferme, Livingston, Marques de Caceres, Mulderbosch 3 2 Survey participants were asked to consider which wines from a list of potential substitutes for rosé they would choose if they were in the mood for rosé but it wasn't available. ü The top substitutes were Moscato (38%) and Chardonnay (36%). ü A second tier of wine substitutes were tightly grouped, consisting of Pinot Grigio (32%) and red blends (31%), Riesling and white blends (29% each), Pinot Noir and sparkling wine (28% each). Rosé Wine Substitutes Moscato/Muscat Chardonnay Pinot Grigio/Gris Red Blends Riesling White blends Pinot Noir Champagne/sparkling wine Sauvignon/Fumé Blanc Gewurztraminer 10% 38% 36% 32% 31% 29% 29% 28% 28% 21% 10

13 When and Where Rosé is Consumed ü More than half of the respondents drink rosé consistently throughout the year (60%). o Respondents in their 50s were the cohort with the highest rate of consistent rosé drinkers (70% vs. 57% - 62% of other age groups). Rosé Consumption by Time of Year I drink rosé consistently throughout the year 60% I drink rosé much more during the warmer months than during the cooler months 23% o Respondents who drink rosé consistently throughout the year tended to report having last consumed rosé from California (54% vs. 48% of those who don't). o Respondents who DON'T drink rosé consistently throughout the year had a higher rate of French rosé consumption (14% vs. 8%). o Those who buy $20+ rosé at least several times a year tend to drink rosé consistently through the year (68% vs. 53% of others), as do those who prefer a more robust style of rosé (64% vs. 50% who prefer a lighter style). ü Fewer respondents indicated that they drink more rosé during warmer months (23%), or periodically during the year but not necessarily during the warmer months (5%). ü Only 12% drink rosé infrequently throughout the year (every few months or several times a year) I drink rosé, but only certain times of the year, but not necessarily during the warmer months I drink rosé infrequently, just every few months or several times a year 5% 12% 11

14 ü Most of the respondents had been consuming rosé for at least the past 2 years (89%), with the largest contingent drinking rosé for 10 years or more (44%). o Not surprisingly, younger respondents have not been drinking rosé wine for as long as older respondents. o Men reported drinking rosé for 10+ years at higher rates than women (49% vs. 41% of women.) Length of Time Have Been Drinking Rosé For less than a year For about a year For 2-5 years For more than 5, but less than 10 years 3% 8% 18% 27% For 10 or more years 44% 12

15 ü When asked to describe in their own words a situation for which they consider rosé a more appropriate wine than any other type of wine, warm weather and summertime gatherings were mentioned most often (16%). However, "anytime" or in "any situation" was the response of 11% of those who answered. ü Some 7% - 8% see rosé as a more appropriate wine for outdoor and informal gatherings. ü All other situations were quite diverse and mentioned by no more than 5% of respondents. Considering, based on the results of this question, that rosé is regarded as appropriate for a range of food pairings and occasions and that 60% drink rose throughout the year, rosé is shown to be a versatile wine category. ü More respondents drink rose with food than without. Although over half drink it with food sometimes and sometimes without (52%), of the remaining respondents, 30% drink rosé mostly with food compared to 18% who drink it mostly without. o Those who prefer a more robust rosé are more likely to drink rosé mostly with food (38% vs. 30% of those who prefer lighter rosé and 26% of those who prefer both robust and lighter rosé). Situations for Which Considered Rosé More Appropriate than Other Wines Summer gathering/warm evening/summertime 16% Anytime/any situation 11% Picnic/outdoor gathering/dining/bbq/patio/deck 8% Informal occasion/casual/just relaxing/unwinding 8% Get together/gathering with friends/party 7% Celebration/holiday/festive occasion 5% With appropriate foods/best food pairing (unspecified) 5% After a meal/after dinner/with/as dessert 5% With a lighter meal/less heavy food/appetizers 5% Dinner 5% In the mood for something lighter/light 2% Seafood dinner 2% Sweet/in the mood for something sweet 2% With beef/steak 2% Pasta/Italian 2% Romantic occasions 2% Brunch/lunch 2% With chicken 2% With girls/girlfriends/feminine activities 2% Rosé Consumption With and Without Food Mostly with food 30% Mostly without food 18% 52% Some8mes with and some8mes without 13

16 From a list of wine-drinking occasions and situations, respondents were asked on which they had chosen to drink rosé when at home or at the home of family or friends. ü At home or at someone else's home, the majority of respondents have chosen to drink rosé in casual situations, such as hanging out, relaxing, winding down, or with a weekday meal (61% - 73%). ü More than half have consumed rosé at a social dinner at a friend s, or at a holiday meal (52% - 57%). ü A substantial minority has chosen rosé for an outdoor event (46%), at a cocktail party (40%), or at lunch or brunch (38%). Occasions on Which Have Chosen Rosé at Home or Someone Else's Home Hanging out or relaxing or winding down 73% A casual, weekday meal at home 61% A social dinner at the home of a friend 57% During a holiday meal 52% A daytime barbecue, picnic, or other outdoor event 46% At a cocktail party 40% At a brunch or lunch 38% Pre-partying or getting ready to go out on the town 26% o Cocktail parties and lunch/brunch came up more often among women than among men (43% vs. 37% and 42% vs. 34% respectively), and more often among respondents under 50 than among those aged 50+ (47% vs. 31% and 45% vs. 30% respectively). ü Rosé has been a choice for pre-partying by approximately one-quarter of respondents (26%). o This was most popular among respondents under 40 (34% vs. 20% of those 40+). 14

17 Survey participants were also asked on what on-premise occasions they had chosen to drink rosé. ü The majority have chosen rosé for both casual dinners (65%) and celebrations (51% - 55%). o These types of occasions were more popular among women than among men (69% vs. 60% for casual dinners, 62% vs. 46% for restaurant celebrations, and 56% vs. 44% for more special occasions). o Rosé is consumed during casual dinners at restaurants at higher rates among those who are 50 and older (73% vs. 60% of those under 50). Occasions on Which Have Chosen Rosé On-Premise Out at a restaurant for a casual dinner 65% Out at a restaurant for a celebration 55% At a celebration or other special occasion such as a wedding party or anniversary party 51% Out at a restaurant for brunch or lunch 41% Out at a lounge, club or bar 34% During a business dinner or event 25% At a sporting event or concert 10% ü As when at home or someone else's home, a significant minority have chosen to drink rosé at an on-premise lunch or brunch (41%). ü Only about a third have considered rosé when out at a club or bar (34%), and only one-fourth when at a business event (25%). ü Rosé has been chosen by only one in ten respondents at sporting events or concerts (10%). 15

18 Rosé Style Preference ü Two-thirds of survey participants indicated that they consider the rose they drink most often either "sweet" (20%) or "semi sweet or medium sweet" (46%), while approximately onethird prefer their rosé "dry" (9%) or "semi dry or medium dry" (23%). o The majority of both high frequency wine drinkers and once-a-week wine drinkers reported that they prefer sweeter style rosé, although the rate that they prefer either "sweet" or "semi/medium" sweet rosé was higher among once-a-week wine drinkers (73% vs. 65% of high frequency wine drinkers). ü Just over one-third of respondents prefer rosé that is lighter in body and flavor (34%), compared to nearly one-quarter who prefer a full bodied and robust rosé (22%). However, 40% like rosé made in both of these styles. Only 4% reported they have no stylistic preference. o Lighter rosé preference was higher among once-a-week wine drinkers (40% vs. 32% of high frequency wine drinkers), and robust rosé preference was higher among high frequency wine drinkers (24% vs.15%). Rosé Style Preference: Sweet vs. Dry 20% Sweet 46% Semi sweet or medium sweet 23% Semi dry or medium dry 9% Dry 2% Don't know Rosé Style Preference: Flavor Intensity 22% Full-bodied and robust 34% Lighter in body and flavor 40% Like both 4% No preference o Those who prefer a more robust rosé were more likely to have last consumed California and Italian rosés, compared to those who prefer lighter rosé or drink both light and robust rosé (59% vs. 50% for Californian, and 12% vs. 6% for Italian rosé). 16

19 Survey respondents were shown visual aids to assess what rosé hue they prefer, as well as which they associate with sweeter rosé and rosé that is more robust in flavor and weight. They were shown glasses of rosé that tended toward both pink and salmon in color and varied from light to dark. It is important to note that this exercise is useful in understanding preference and association trends, but results should be considered with caution due to a great variation in rosé hues that are difficult to capture on film and which may have varied in appearance on computer and device screens used to take the survey. Rosé Most Likely to Purchase 6% 30% 48% 4% 4% 3% ü When asked which of six glasses of rosé they would be most likely to purchase, nearly half chose the darkest pink rosé (48%), followed by the medium pink rosé (30%). Less than 10% chose the lightest pink wine or any of the salmon wines. o An additional 5% had no preference. 17

20 Using four glasses of rosé, light pink and salmon and dark pink and salmon, respondents were asked which they perceive as sweetest. Rosé Perceived as Sweetest 13% 54% ü The dark pink wine was chosen by over half as the sweetest (54%). The dark salmon wine was the next most often wine chosen as sweetest (19%), followed by the light pink (13%) and light salmon (10%). o Additionally, 4% were undecided or couldn t tell. 10% 19% 18

21 The same four glasses were used to gauge which color of rosé was associated with being the most robust in flavor and full bodied. ü In this case, the darker salmon wine was chosen most often (45%), beating out the dark pink wine (37%). Rosé Perceived as Most Robust in Flavor 3% 37% 8% 45% ü At much lower levels, the lighter salmon rosé (8%) was considered most robust over the light pink wine (3%). o In this case 6% reported they couldn't tell which was most robust or were undecided 19

22 Dry vs. Sweet Rosé Drinkers Respondents who prefer drier rosé ("dry" or "semi/medium dry") stand out from those who prefer sweeter ("sweet" or "semi/medium sweet") rosé on many measures. Dry vs. Sweet Rosé Drinkers: Consumption Demographics and Wine ü Drier rosé drinker respondents were slightly, but significantly, older on average (47 vs. 44), as there was a greater proportion of drier rosé drinkers in their 60s or older (27% vs. 21% of sweeter rosé drinkers), and a larger proportion of sweeter rosé drinkers in their 20s (23% vs. 16%). ü Drier rosé wine drinkers skewed male (54% male/46% female), while sweeter rosé drinkers skewed female (61% female/39% male). 5 ü A larger proportion of drier rosé wine consumers live in urban areas (35% vs. 28%), while significantly more sweeter rosé drinkers live in rural areas (18% vs. 11%). ü Drier rosé consumers drink wine more often (81% are high frequency wine drinkers vs. 73% of those who prefer sweeter rosé), and are more likely to drink red wine (81% vs. 73% at least occasionally) and sparkling wine (63% vs. 54%). Rosé Wine Drinkers by Style Preference GENDER Prefer DRIER ("dry" or "semi/ medium dry" Prefer SWEETER ("sweet" or "semi/ medium sweet") Male 54% 39% Female 46% 61% AGE 100% 100% 20s 16% 23% 30s 22% 24% 40s 18% 14% 50s 17% 18% % 21% 100% 100% Mean age GEOGRAPHY Urban 35% 28% Suburban 54% 54% Rural 11% 18% WINE CONSUMPTION 100% 100% High frequency 81% 73% Once a week 19% 27% 100% 100% 5 In fact, half the men aged 60+ indicated they prefer either dry or semi/medium dry rosé (50%) compared to just 21% of the women in their 20s. Also drink red wine 81% 73% Also drink white wine 81% 79% Also drink sparkling 63% 54% 20

23 Dry vs. Sweet Rosé Drinkers: Rosé Wine Consumption and Purchase Behavior ü Drier rosé drinkers buy under $15 rosé just as frequently as sweeter rosé drinkers, but buy in the $15 - $19.99 range more often (46% vs. 37% buy at least weekly) and spend $30+ more often on rosé (21% vs. 14%). They buy $20 - $29.99 rosé just as often as sweeter rosé drinkers. ü The likelihood that the origin of the last bottle of rosé consumed by drier rosé drinkers was French was higher among drier rosé drinkers (16% vs. 8%). Still, approximately half of both drier and sweeter rosé consumers last drank a rosé from California (49% and 53% respectively). 44% - 45%), as well as when hanging out or relaxing (77% vs. 68%). SUMMARY: Key Consumption and Purchase Differences Between Sweeter and Drier Rosé Wine Drinkers Prefer DRIER Rosé ("dry" or "semi/medium dry" Buy $15 - $19.99 and 30+ rosé more often Prefer SWEETER Rosé ("sweet" or "semi/medium sweet") Do not buy in any price category more often ü Not surprisingly, drier rosé consumers consider Pinot Grigio/Gris and Sauvignon Blanc as substitutes for rosé at greater rates than sweeter rosé consumers (39% vs. 29% and 28% vs. 17% respectively). Conversely, sweeter rosé drinkers would be more apt to substitute Moscato (47% vs. 21%), Riesling (32% vs. 25%), or red blends (34% vs. 25%). o Respondents who prefer a more robust rosé were more apt than lighter rosé drinkers to identify Chardonnay (41% vs. 30%) and Pinot Noir (39% vs. 21%) as substitutes. ü Sweeter rose drinkers are more likely to drink rosé consistently throughout the year (63% vs. 53%), and to choose it for an at-home holiday meal (56% vs. 44%) or for a celebratory meal when out at a restaurant (54% - 60% vs. More likely to have last consumed a bottle of rosé from France. More likely to consider Pinot Grigio/Gris and Sauvignon Blanc substitutes More apt to drink rosé during warmer months More likely to regard rosé more appropriate than other wines for lighter foods and lunch/ brunch More likely to have last consumed a bottle of rosé from California. More likely to consider Moscato, Riesling, and red blends substitutes More apt to drink rosé consistently throughout the year More likely to regard rosé more appropriate than other wines for holidays and celebrations 21

24 Rosé Style Preference ü Drier rosé drinkers were very close to being evenly split between preferring more robust rosé (31%) and lighter rosé (29%). Sweeter rosé drinkers tended toward preferring a lighter style (37%) compared to a robust style (18%). Nonetheless, approximately four in ten like rosé made in both styles (39% of those who prefer drier and 41% of those who prefer sweeter rosé). ü Although, like sweeter rosé drinkers, most drier rosé drinkers would be most likely to buy the darkest pink rosé (C) or the medium pink rosé (B). However, drier rosé drinkers were more than twice as likely to have purchase interest in the lightest pink rosé (A, 10% vs. 4%), and six times as likely to have interest in buying the darkest salmon colored rosé (F, 6% vs. 1%). Sweeter and Drier Rosé Wine Drinkers by Consumption and Purchase 18% 31% Prefer rosé robust in flavor and full-bodied Prefer rosé lighter in body and flavor 37% 29% Like Both No Preference 41% 39% 1% 4% Prefer Drier Rosé Prefer Sweeter Rosé Most Likely to Purchase by Dry/Sweet Rosé Preference A D B E Prefer DRIER Rosé Prefer SWEETER Rosé A 10% 4% B 28% 30% C 42% 52% D 6% 4% E 6% 4% F 6% 1% Can't tell/ undecided 3% 5% C F 22

25 ü Although the largest contingent of both drier and sweeter rosé drinkers agreed that the darkest pink wine would be the sweetest, sweeter rosé drinkers chose both the dark pink (B, 57% vs. 48%) and the light pink rosé (A, 15% vs. 10%), while drier rose drinkers chose the darkest salmon wine at higher rates (D, 28% vs. 15%). ü On the question of which of the wines is most robust in flavor and the most full bodied, drier rosé drinkers were split between the dark pink (B, 40%) and the dark salmon rosés (D, 39%), while nearly half of the sweeter rosé drinkers perceived the dark salmon as most robust (D, 49%) compared to 36% who chose the dark pink (B) as the most robust. Rosé Perceived as Sweetest by Dry/Sweet Rosé Preference A C Prefer DRIER Rosé Prefer SWEETER Rosé A 10% 15% B 48% 57% C 10% 9% D 28% 15% 4% 4% B D Can't tell/ undecided Rosé Perceived as Most Robust by Dry/Sweet Rosé Preference A C Prefer DRIER Rosé Prefer SWEETER Rosé A 6% 2% B 40% 36% C 10% 7% D 39% 49% Can't tell/ undecided 4% 6% B D 23

26 Insights from the Wine Business Institute at Sonoma State University Topline Takeaways ü Evidence suggests that consumers begin trading-up into higher priced rosés as they gain experience in consumption. ü The purchasing behavior by price point suggests rosé consumption frequency declines as the price increases. ü Consumers can barely remember their last bottle of wine, let alone the style of wine. ü As consumers mature, their rosé tastes become lighter and drier. In-Depth Insights ü The recent growth of Sauvignon Blanc, then Pinot Gris/Grigio suggests that many consumers may reach a price ceiling and then search for variety instead of higher quality. ü French rosés are indicative of more highly involved wine consumers, as these wines attract consumers who are more comfortable with higher price points. ü Established research findings confirm that consumers report their preferences being drier than their purchase histories suggest. The terminology capturing this phenomenon is that they report dry, but drink sweet. o Wine consumers are notoriously inaccurate when asked to remember sensorial qualities of the wines they consume. ü Rosé consumption history into wine style is an effective indicator of potential substitute wines. ü The rosé category indicates a clear distinction into subcategory strata. Price, color and consumption occasion are just three categories of which a consumer s motivation to purchase rosé appear distinct. ü Rosé s color and hue should be investigated further for the impact of product color and the messages it conveys to consumers. o Gender and age group are effective for segmenting the rosé market. o Little over 10% of rosé drinkers are comfortable enjoying rosé for any occasion. This suggests that the bulk of rosé consumers highly associate rosé with a specific occasion or specific reason for consumption. 24

27 About Wine Market Council: Wine Market Council is a non-profit association of grape growers, wine producers, importers, wholesalers, and other affiliated businesses and organizations with a mission to grow, strengthen, and stabilize the wine market in the U.S. on behalf of all segments of the industry. To fulfill this mission, Wine Market Council conducts research each year on timely issues and emerging wine consumer segments, providing council members with a wide spectrum of data, helpful to their day-to-day business. All Wine Market Council research results are proprietary to its members, and Wine Market Council makes available to members at an established dues level, the raw data used to generate all reports. warranty of such results whatsoever, whether express, implied, or statutory, including, but not limited to, any warranty of merchantability or fitness for a particular purpose or any warranty that the results will be error-free. In this regard, the results do not constitute advice and Wine Market Council shall have no liability for the member s use thereof. In no respect shall Wine Market Council incur any liability for any damages including, but not limited to, direct, indirect, special, or consequential damages arising out of, resulting from, or any way connected to the use of the results, whether or not based upon warranty, contract, tort, or otherwise; whether or not injury was sustained by persons or property or otherwise; and whether or not loss was sustained from, or arose out of, the results of, the survey. Wine Market Council is furnishing these survey results and other research findings (the results ) "as is" and does not provide any 25