Auditor s Report on the 2017 Price Schedules for Grapes for Processing

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1 Auditor s Report on the 2017 Price Schedules for Grapes for Processing To the Directors of Grape Growers of Ontario Grant Thornton LLP Suite King Street St. Catharines, ON L2R 7G1 T F We have audited the price schedules for the 2017 crop for the following classes of grapes for processing. J. Riesling Class 9 Chardonnay Class 9b Gewurztraminer Class 9c Pinot Gris Class 9d Pinot Blanc Class 9d Sauvignon Blanc Class 9e Semillon Class 9e Muscat Ottonel Class 9f Viognier Class 9g Gamay Class 10 Zweigeltrebe Class 10 Pinot Noir Class 10a Cabernet Sauvignon Class 10b Cabernet Franc Class 10c Merlot Class 10d Petit Verdot Class 10d Syrah, Shiraz, Sirah Class 10e Distilling Icewine/Late Harvest Grapes Icewine juice, hybrid and vinifera The price schedules are the responsibility of the management of Grape Growers of Ontario. Our responsibility is to express an opinion on these schedules based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial information is free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial information. An audit also includes, where applicable, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial information. In our opinion, these price schedules present fairly, in all material respects, the agreed upon prices of 2017 grapes for processing, in accordance with the provisions of the Agreement for Marketing the 2017 Crop of Classes 5 to 10g Inclusive Grapes for Processing Under the Grape Growers of Ontario Marketing Plan for Processing dated September 6, St. Catharines, Canada September 28, 2017 Chartered Professional Accountants Licensed Public Accountants Audit Tax Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

2 RIESLING (Class 9) PLATEAU PRICE 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $1, NOTE: Company Average Plateau prices may be applied to Riesling grape purchases at Brix levels above 18.4 if the Processor's company average falls on or below the Brix threshold of All processors purchasing grapes at plateau prices must sign with their growers the 2017 Plateau Pricing "Intent to Purchase Consent Form".

3 CHARDONNAY ( CHARDONNAY MUSQUE) (Class 9b) PLATEAU PRICE 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ NOTE: Company Average Plateau prices may be applied to Chardonnay grape purchases at Brix levels above 20.4 if the Processor's company average falls on or below the Brix threshold of All processors purchasing grapes at plateau prices must sign with their growers the 2017 Plateau Pricing "Intent to Purchase Consent Form".

4 GEWURZTRAMINER (Class 9c) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ MORE THAN $

5 PINOT GRIS (Class 9d) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ % $

6 PINOT BLANC (Class 9d) 14.9 AND LESS $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

7 SAUVIGNON BLANC (Class 9e) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ % $

8 SEMILLON (Class 9e) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

9 MUSCAT OTTONEL (Class 9f) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ % $

10 VIOGNIER (Class 9g) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

11 GAMAY (Class 10) 14.9 AND LESS $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

12 ZWEIGELTREBE (Class 10) 14.9 AND LESS $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

13 PINOT NOIR (Class 10a) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ % $

14 CABERNET SAUVIGNON (Class 10b) PLATEAU PRICE 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $ % $ NOTE: Company Average Plateau prices may be applied to Cabernet Sauvignon grape purchases at Brix levels above 20.9 if the Processor's company average falls on or below the Brix threshold of All processors purchasing grapes at plateau prices must sign with their growers the 2017 Plateau Pricing "Intent to Purchase Consent Form".

15 CABERNET FRANC (Class 10C) PLATEAU PRICE 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ MORE THAN $ NOTE: Company Average Plateau prices may be applied to Cabernet Franc grape purchases at Brix levels above 20.9 if the Processor's company average falls on or below the Brix threshold of All processors purchasing grapes at plateau prices must sign with their growers the 2017 Plateau Pricing "Intent to Purchase Consent Form".

16 MERLOT (Class 10d) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

17 PETIT VERDOT (Class 10d) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

18 SYRAH/SHIRAZ/SIRAH (Class 10e) 14.9 AND LESS $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ AND MORE $

19 DISTILLING BRIX % of BRIX $ / TONNE BRIX % of BRIX $ / TONNE % $ % $ % $98.13 BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ MORE THAN $150.00

20 HYBRID ICEWINE JUICE BRIX % of BASE $ / LITRE BRIX % of BASE $ / LITRE BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $20.18

21 VINIFERA ICEWINE JUICE BRIX % of BASE $ / LITRE BRIX % of BASE $ / LITRE BASE % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $ % $32.05

22 2017 HYBRID & VINIFERA LATE HARVEST JUICE BRIX BONUS $ / LITRE BRIX BONUS $ / LITRE 26.0 $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $ $ $0.02 = $5.49

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