Wine Writers Symposium. Meadowood, February 19, 2014

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1 Wine Writers Symposium Meadowood, February 19, 2014

2 All U.S. Adults in 2013 (Percent by segment) High Frequency Occasional Abstainer 15% 35% 21% Source: Wine Market Council Non-Adopter 29%

3 Wine drinker population (All wine drinkers by segment) Daily Sev x Wk Occasional 8% High frequency (34% of all wine drinkers) Occasional (66% of all wine drinkers) 66% 26%

4 Wine drinker population (All wine drinkers by segment) High Frequency Occasional 34% 66%

5 High Frequency Wine Drinkers by Price and Package Preferences % 23% 30% High end wine buyers Frequent box buyers Budget bottle buyers

6 Focus on High End Wine Buyers ü Responsible for over 90% of all 750ml wine purchases over $20 ü Responsible for 40% of all 750ml wine purchases $10 to $20 ü Most influential to other HF segments 47% 23% 30%

7 Wine Opinions Market Research

8 About Wine Opinions Wine Opinions is the number one provider of quantitative and qualitative consumer and trade research on the U.S. wine market and, through its Drinks Opinions panel, offers research services for spirits and beer marketers. ü Online trade or consumer quantitative surveys are custom designed to suit client needs ü Proprietary Vintrospectives online trade or consumer discussion groups as well as major market in-person focus groups ü Trade one-on-one interviews ü Mobile ipad survey capabilities tasting room or wine/liquor shop consumer intercept surveys and one-on-one interviews ü Custom market research and reporting 2014 Wine Opinions. All Rights Reserved. 8

9 Wine Opinions Clients Southwest France Wines 2014 Wine Opinions. All Rights Reserved. 9

10 More Wine Opinions Clients MISSOURI WINE BOARD 2014 Wine Opinions. All Rights Reserved. 10

11 High Frequency Wine Consumer Survey

12 Objectives and Methodology ü Online survey of Wine Opinions consumer panel, September, 2013 ü Screened for High Frequency wine drinkers 1,151 respondents including 555 High End wine purchasers ü Focus on wine factors influential to wine purchase decisions ü Detail beer and spirits (compared to wine) usage, occasions, and trends 2014 Wine Opinions. All Rights Reserved. 12

13 High Frequency Consumer Respondents by Gender Male 46% 54% Female 2014 Wine Opinions. All Rights Reserved. 13

14 High Frequency Consumer Respondents by Income Under $35K 3% $35K - $50K 7% $50K - $70K 11% $70K - $100K $100K - $130K 15% 16% $130K - $150K 10% $150K - $200K 12% $200K- $250K 5% $250K+ 7% Prefer not to say 15% 2014 Wine Opinions. All Rights Reserved. 14

15 High Frequency Consumer Respondents by Generation 6% 17% Millennial Gen X 52% 25% Boomer Wine Opinions. All Rights Reserved. 15

16 Total Annual Wine Spending by Generation Millennials Gen X Boomers Under $1,000 25% 38% 45% $1,000 to $5,000 43% 49% 54% $5,000 to $10,000 10% 10% 16% $10,000 to $25,000 2% 3% 5% 2014 Wine Opinions. All Rights Reserved. 16

17 Total Annual Wine Spending by Segment High End Others Under $1,000 13% 42% $1,000 to $5,000 58% 49% $5,000 to $10,000 7% 21% $10,000 to $25,000 7% 1% 2014 Wine Opinions. All Rights Reserved. 17

18 Frequency of Retail Wine Purchase by Price Point (750ml) All HF Respondents PRICE SEGMENT WEEKLY MONTHLY SEVERAL TIMES/YEAR LESS OFTEN NEVER Under $10 36% 19% 13% 20% 12% $10 - $20 42% 36% 14% 7% 2% $20 - $30 12% 38% 29% 15% 7% $30 - $50 3% 19% 32% 30% 17% Over $50 1% 8% 22% 36% 33% 2014 Wine Opinions. All Rights Reserved. 18

19 Wine Club Memberships (All high frequency respondents) 55% 15% 11% 19% 1 winery club membership 2-3 winery club memberships 4 + winery club memberships No winery club membership 2014 Wine Opinions. All Rights Reserved. 19

20 Winery club memberships HE vs. HF not HE CLUBS HE HF NOT HE 1 club membership 15% 15% 2-3 club memberships 22% 14% 4 + club memberships 15% 6% No winery club memberships 48% 64% 2014 Wine Opinions. All Rights Reserved. 20

21 Tasting Situations Leading to Wine Purchase TASTING SITUATION TASTED PURCHASED In a wine shop 80% 64% Tasted wine at a winery 76% 64% At the home of a friend 85% 45% Attended an organized wine tasting (not in a winery) 62% 40% Tasted a wine at a wine bar 77% 37% Tasted a wine on an airplane 39% 9% 2014 Wine Opinions. All Rights Reserved. 21

22 Consumption Frequency of Beer and Spirits (All high frequency respondents) TYPE DAILY OR SEVERAL TIMES/WEEK WEEKLY MONTHLY OCCASIONALLY NEVER Beer 25% 18% 30% 16% 11% Spirits 17% 16% 33% 27% 7% 2014 Wine Opinions. All Rights Reserved. 22

23 Consumption Frequency by Spirit Type SPIRIT TYPE FREQUENTLY OCCASIONALLY SELDOM NEVER Vodka 18% 36% 27% 19% American Whiskey 12% 26% 25% 37% Gin 9% 21% 27% 44% Scotch 9% 20% 24% 48% Tequila 7% 36% 32% 24% Rum 7% 30% 36% 26% Irish Whiskey 3% 16% 33% 48% Canadian Whisky 2% 9% 29% 61% Cognac 2% 13% 33% 52% Brandy 1% 14% 34% 51% 2014 Wine Opinions. All Rights Reserved. 23

24 Consumption Frequency by Type of Beer, Ale, or Cider BEER TYPE FREQUENTLY OCCASIONALLY SELDOM NEVER Craft beer 41% 36% 14% 9% Imported lagers, pilsners & light beers Imported ales, stouts & other specialty beers 15% 43% 29% 13% 12% 36% 29% 22% Domestic premium 12% 20% 26% 42% Domestic super premium 5% 15% 28% 52% Cider 5% 17% 20% 58% Domestic priced below premium 3% 11% 25% 60% 2014 Wine Opinions. All Rights Reserved. 24

25 Craft Beer and Imported Ales Consumption Frequency (High end vs. not high end respondents) CRAFT BEER IMPORTED ALES IMPORTED LAGERS CONSUMPTION FREQUENCY HE HF NOT HE HE HF NOT HE HE HF NOT HE Frequently 46% 36% 18% 7% 18% 11% Occasionally 34% 38% 36% 34% 42% 44% 2014 Wine Opinions. All Rights Reserved. 25

26 Frequent Craft Beer Drinkers - Age and Gender (Base: All high frequency wine drinker respondents) DRINK CRAFT BEER FREQUENTLY OCCASIONALLY SELDOM NEVER Male 65% 61% 50% 36% Female 35% 39% 50% 64% Millennials 26% 11% 10% 16% Gen Xers 30% 24% 18% 22% Baby Boomers 43% 60% 59% 55% 68+ 2% 6% 14% 7% 2014 Wine Opinions. All Rights Reserved. 26

27 Frequent Craft Beer Drinkers - Monthly+ Wine Purchase by Price (Base: All high frequency wine drinker respondents) DRINK CRAFT BEER FREQUENTLY OCCASIONALLY SELDOM NEVER Under $10 54% 54% 53% 48% $10 - $20 81% 73% 72% 63% $20 - $30 53% 43% 40% 31% $30 - $50 20% 21% 20% 15% Over $50 8% 8% 8% 10% 2014 Wine Opinions. All Rights Reserved. 27

28 Mean Level of Influence by Source SOURCE Recommendation from wine knowledgeable friend MEAN RATING 6 Recommendation of wine shop staff 5.3 Recommendation of a sommelier in a restaurant 5.2 High rating from the Wine Spectator (print or online) 4.7 High rating from The Wine Enthusiast (print or online) 4.4 High rating in Robert Parker s Wine Advocate Wine Opinions. All Rights Reserved. 28

29 Mean Level of Influence by Source SOURCE Recommendations in an or newsletter (print or online) from a wine retailer Tasting note/recommendation from the wine columnist in your local newspaper MEAN RATING A review or rating you see on CellarTracker 3.2 Recommendation you see on Wine-Searcher Wine Opinions. All Rights Reserved. 29

30 Social Media Usage Relating to Beverage Alcohol Type MEDIA TYPE WINE BEER SPIRITS Facebook 59% 25% 18% Twitter 26% 11% 8% Pinterest 13% 4% 5% Instagram 10% 4% 2% YouTube 8% 3% 2% Yelp 8% 3% 2% 2014 Wine Opinions. All Rights Reserved. 30

31 Wine Column or Article Types of Information Most Important TYPE OF INFORMATION Tasting note description of the wine or wines flavor VERY IMPORTANT SOMEWHAT IMPORTANT TOP TWO BOX 40% 49% 89% Suggested retail price of the wine or wines 29% 55% 84% Suggestions on how long wine might age or when it will reach a peak Information on where to buy the wine or wines 22% 49% 71% 19% 47% 66% Background information on the winery 16% 57% 73% A numerical score or other form of rating the wine or wines 16% 51% 67% 2014 Wine Opinions. All Rights Reserved. 31

32 Wine Column or Article Types of Information Less Important TYPE OF INFORMATION VERY IMPORTANT SOMEWHAT IMPORTANT TOP TWO BOX Suggested appropriate food pairings 16% 45% 61% Links to wine producer websites (online articles or columns only) 14% 43% 57% A profile or background on the winemaker 12% 46% 58% Photos of the wine bottles or labels 12% 41% 53% The alcohol content of the wines 10% 29% 39% Photos or images of the winery or vineyards 8% 29% 37% 2014 Wine Opinions. All Rights Reserved. 32

33 Wine Writers Symposium Meadowood, February 19, 2014

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