Colorado Wine Board Quantitative Wine User Research. Final Report ~ May 24, 2017

Transcription

1 Colorado Wine Board Quantitative Wine User Research Final Report ~ May 24, 2017

2 2 Table of Contents Background & Objectives p 3 Executive Summary Presentation p 5 Recommendations p 25 Detailed Findings - Total monthly wine drinkers p 27 - Metro Denver wine drinkers p 48 - Colorado wine drinkers p 63 - Weekly+ wine drinkers p 76 - Age, Gender, Hard Cider drinkers p 88

3 3 Background and Objectives Background: The Colorado Wine Industry Development Board (CWIDB) has tracked Colorado wine drinkers attitudes and usage of Colorado wines for multiple years. In spring, 2017, as in spring, 2016, the research study was fielded. Survey Sampling provided panel respondents. In 2015, the Wine Development Board used its Survey Monkey account to provide panel respondents, thus while 2015 data is included, not always is it directly comparable to 2016 and In 2016 and 2017 a respondent quota for age breaks and wine consumption was implemented, in order to keep the sample somewhat consistent from year to year. Research Objectives: Compare 2017 vs vs awareness, usage and attitudes toward Colorado wines among the total sample of Co. wine drinkers. Compare a subgroup of Denver wine drinkers (2017 vs. 2016). Cut data and compare measures by gender, age, frequent/weekly (1+) wine drinkers, hard cider drinkers and those who consume Colorado wine. Track changes over time.

4 4 Respondents Respondents 500 males (40% quota) & females Ages 21-70; quotas set at (30%), (30%), (40%) Co. residents Past mo. wine consumption Sub cell of weekly+ wine drinkers (separate read of data). Denver metro sub set with minimum n=100 (separate read of data). Methodology: Online quantitative test using SSI panel. Quotas were set for wine consumption frequency, so that 2017 data are comparable to Daily 8% More than once a week 36% Once a week 19% 2-3 times / month 26% 1 time a month 8% Special occasions 3%

5 5 Executive Summary Presentation ready Overview of Key Insights

6 Are Colo. wines improving in Awareness?: 6 A little - Awareness of Colorado wine awareness remains high (76%): Up from 73% in 2016 among total. California wine awareness highest (93%). In Metro Denver where ad $ are spent: Awareness is slightly higher, 78% index at 102. And lower among Sub groups: More Older and Hard Cider drinkers are aware of Colo. wines vs. the total sample, indexing higher see chart below green boxes. Insight: Wine drinkers are aware of Colo. Wine generating awareness has occurred for most demos of wine drinkers. Though, there is room for improvement as Cali wine awareness is 93%. Sub Group awareness of Colo. wines 2017 Index to total Metro Denver Heard of Colo wines - awareness 78% 102 Weekly + Heard of Colo wines - awareness 78% 103 Age % 86 Age % 95 Age % 116 Male 78% 103 Female 74% 97 Hard Cider Drinkers 81% 107 California Italy France Spain Colorado Australia Argentina Oregon Washington State New York State Idaho Slovenia Where heard of wine produced (aided) (total sample) 9% 9% 10% 9% 6% 7% 2017 (n=500) 33% 33% 39% 2016 (n=500) 49% 53% 62% 50% 50% 61% 62% 58% 60% 65% 76% 73% 74% 80% 80% 86% 89% 93% 95% 86% 93% 96% 98% 92% 96% 96%

7 7 Has Colo. Wine Consumption increased?: Flat - 63% of Colorado past mo. wine drinkers have consumed wine from Colorado. Also 63% in Wine consumption in California, Italy and France is down slightly, though still significantly higher than Colorado wine. Among those aware of Colorado wine, 83% have consumed it. This is second to California 95% of those aware of Cali wine have consumed it. More older and Hard Cider drinkers have consumed Colo. Wine. Fewer Younger wine drinkers have consumed Colo. Wine. Insight: Increase awareness, as consumption follows Conversion to consumption among those aware California (n=464 aware) 95% Colorado (n=378 aware) 83% Australia (n=305 aware) 80% Italy (n=460 aware) 79% France (n=447 aware) 75% Argentina (n=291 aware) 69% Spain (n=400 aware) 68% Washington St. (n=251 aware) 65% Oregon (n=246 aware) 62% NY St. (n=167 aware) 49% Slovenia (n=43 aware) 40% Idaho (n=47 aware) 36% Sub Group consumption of Colo. wines Index 2017 to total Metro Denver - Consumed Colo wines 62% 98 Weekly + Consumed Colo wines 66% 106 Age % 90 Age % 92 Age % 113 Male 67% 106 Female 60% 95 Hard Cider Drinkers 71% 113 California Italy France Colorado Spain Australia Argentina Washington State Oregon New York State Idaho Slovenia Wine consumed by region 3% 2% 4% 3% 2% 3% 2017 (n=500) (total sample) 2016 (n=500) 40% 42% 33% 35% 45% 30% 33% 42% 16% 16% 21% 2015 (n=513) 88% 93% 97% 72% 76% 85% 67% 72% 83% 63% 63% 75% 54% 54% 67% 49% 50% 58%

8 8 Is Future Purchase Interest healthy? Future Purchase Interest (PI) for Colorado wine is trending up slightly: 3 rd - 68% Top 2 box PI in Australian / New Zealand wines are hot - significantly trending up, 65%. California wine PI highest 86%. 78% for European wines. 23% are fence sitters for Colo wine: may or may not buy Colo. wine. Recall, 24% are not aware of Colo. Wines; slide 6. Very low purchase rejection for all Future Purchase Interest by Geography Definitely will not buy (n=500) Probably will not buy Might or might not buy Probably will buy 1% California wine 2% 11% 2% European wine 3% 17% 3% Colorado wine 6% 3% Austrialia or New Zealand 7% 3% So. American wine 7% 2% Washington or Oregon wine 6% Wine from US states other than CA, OR, WA and CO 3% 10% 23% 24% 30% 38% 35% 38% 38% 34% 38% 34% 31% 29% 51% 40% 34% 27% 26% 23% 19% % Top 2 box purchase intent (5 pt. scale) California wine 86% 89% 87% European wine 78% 78% 71% Colorado wine 68% 66% 52% Austrialia or New Zealand 65% 59% 58% So. American wine 60% 57% 61% Washington or Oregon wine 54% 61% 48% Wine from US states other than CA, OR, WA and CO 49% 48% 30% 77% of Colo wine drinkers state future PI: Colo. Wine drinkers plan to repeat purchase. Insight: Intent to buy again / future PI - is higher among current Colo. Wine drinkers, indicating product acceptance. Sub Group PI of Colo. Wines (%T2 Box) 2017 Index to total Metro Denver Future PI- Colo wines 65% 96 Weekly + Future PI - Colo wines 69% 102 Colo. Wine drinkers 77% 113 Age % 107 Age % 112 Age % 84 Male 67% 99 Female 68% 100 Hard Cider Drinkers 77% 113

9 Purchase among drinkers of Colo. Wine: More Colorado wine drinkers are allocating more share to Colo. Wines: Colorado-produced wine is 25%+ share of all wine among 26% vs. 18% in Colorado-produced wine is 10%+ share of all wine among 39% vs. 27% in 2016 Percent of total Wine purchases among CO. wine drinkers (n=313) (n=314) More than 50% of my wine purchases are Colorado wine 9% 6% 25% to 49% of my wine purchases are Colorado wine 15% 12% 20% to 24% of my wine purchases are Colorado wine 16% 9% 10% to 19% of my wine purchases are Colorado wine 17% 16% 1% to 9% of my wine purchases are Colorado wine 27% 31% Less than 1% of my wine purchases are Colorado wine 13% 21% I do not purchase Colorado wine 4% 5% Sub Groups 20%+ Share of purchase allocation to Colo. Wines (%T2 Box) 2017 Index to total Metro Denver Future PI- Colo wines 37% 95 Weekly + Future PI - Colo wines 38% 97 Colo. Wine drinkers 39% 100 Age % 136 Age % 110 Age % 69 Male 41% 105 Female 38% 97 Hard Cider Drinkers 51% 131 share %+ 26% 18% 20%+ 39%* 27% Among Sub Groups, Younger & Hard Cider drinkers allocate 20%+ share of purchase to Colo. wines: 51% of Hard Cider drinkers and 53% of year old wine drinkers allocate a significantly larger share of wine purchases to Colorado wines at present. Insight: A younger, experimental drinker is a good target for future Colo. Wine purchase. NOTE: significantly higher differences noted in Bold red font at the 95% confidence level. *Rounding variance not additive at whole decimals.

10 10 Where is there distribution opportunity? Wine purchase locations do not match up to where they d expect to buy CO wine. Wine specialty shops, wine tasting rooms/wineries and Farmer s Markets have a relatively low share of wine purchases. However, a larger percent of drinkers expect to find and buy Colorado wine at these locations. Neighborhood liquor stores are locations where consumers expect to find Colo. Wines & where Colo. Wine purchasers bought Colo. Wine (31%). Insight: Meet customer expectations through expanded distribution at Bars, Neighborhood liquor stores and Wine specialty shops. Among total sample Share of wine purchase locations 2017 (n=500) Share of CO Wine purchase locations 2017 (n=313 Colo wine drinkers) Where you d expect to buy Co. wine (check all that apply) 2017 (n=500) Neighborhood liquor store 34% 31% 70% Large, volume discount liquor store 21% 17% 46% Restaurants 12% 11% 48% Wine specialty shop 7% 8% 58% Grocery store that sells wine 7% 5% 33% Bars 6% 4% 31% Winery or wine tasting room 5% 17% 59% Internet 5% 2% 19% Farmer's markets 1% 3% 38% At a sport or concert venue 1% 1% 10% Other 1% 2% 1% TOTAL 100% 100% NA

11 11 Where is occasion opportunity? Most popular wine consumption occasions do not fit Colo. Wines, for many drinkers. 74% drink wine at a restaurant, but only 55% would consider drinking a Colorado wine at a restaurant gap of 19 percentage points. Occasions with fewer participating are a fit for Colo wines outdoors and a gift for coworker/friend. Insight: Defining Colorado wine occasions for drinkers may help close the consumption gap for higher volume occasions. Total Sample 2017 vs Occasions consumed wine- q Occasions consider consuming CO wine q Gap For a holiday meal or special occasion 78% 55% -23% At a restaurant before or with a meal 74% 55% -19% At home alone, while relaxing, reading or some activity w/o food 74% 60% -14% At home entertaining guests 64% 55% -9% While on vacation 65% 40% -25% Taking to a friend s house for a meal or party 61% 54% -7% At home while cooking 56% 48% -8% Outdoors picnic or BBQ 34% 39% 5% As a gift for a co-worker or casual friend 32% 42% 10%

12 12 Pricing Sweet Spot: $9-$19.99 is what most people pay for wine in general : This holds true for all wine and for Colorado wine. More Colorado wine drinkers expect to pay more for Colorado wine vs. wine in general. 60% of Colorado wine drinkers expect to pay $12-$19.99 per bottle of Colorado wine, significantly more than all wine drinkers typically pay in the same price range (50%). Expect to Pay for Colorado wine Colorado wine total sample (n=500) 2017 Colorado wine among Colo. wine drinkers (n=313) Typically Pay for all wine price pay all wine total sample (n=500) Less than $9 per bottle Less than $9 per bottle $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle 9% 24% 34% 22% 7% 3% 0% 6% 21% 35% 25% 10% 4% 1% $9 - $11.99 per bottle $12 - $14.99 per bottle 60% $12 - $20 $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle 11% 25% 31% 19% 8% 4% 2% Colo. Wines perception = fairly priced Most sub groups (70%+) believe Colo. Wines are priced fairly. Males are the lowest, indexing 92 vs. total. Insight: Price perceptions are not a barrier if at retail, Colo. Wine s price sweet spot is $9 - $ If it is priced higher than $20 per bottle, fewer people will buy it. Value Colo. Wine Priced Fairly (%) 2017 Index to total TOTAL Colo. Wine priced fairly 74% 100 Metro Denver Future PI- Colo 77% wines 104 Weekly + Future PI - Colo wines 71% 96 Colo. Wine drinkers 73% 99 Age % 97 Age % 105 Age % 97 Male 68% 92 Female 77% 104 Hard Cider Drinkers 72% 97 50% $12 - $20

13 13 How can we move the needle? Awareness (22%) and trial / tastings are barriers to purchase on an open-ended basis. Availability is also an issue 18%. 18% indicate they prefer other brands a rejection of Colo. Wines. Pricing is an issue among 13%. When aided, unable to find Co wine - comes up as a barrier. 47% say they cannot find Colo. Wines 22% indicate Colo. Wines don t have prestige or imagery as other wines. 18% say Colo. Wines are too expensive. 12% indicate they don t taste good. Why don t you consume or purchase more Colorado wines? Top Open-end 2017 (n=467) % Not familiar/haven t tried it/don t know enough about Colorado wines/ need to try it to determine 22% Availability/not as available as other wines 18% Prefer other brand/other wines from other places are better 18% Expensive/high price 13% Insight: Drinkers are aware, but cannot find Colo. Wines. If in distribution, visibility at retail is paramount to trial. Prestige (or quality) of Colorado wines is in question developing a brand image for Colo. Wines is important not just building awareness TOTAL Why you don t consume or purchase more of SAMPLE Colorado wines (aided list) (n=500) I cannot find Colorado wines where I purchase or consume wine 47% Colorado wines don't have the prestige or same imagery as other types of wine I usually like to 22% buy Colorado wines are too expensive 18% I hear, or believe that Colorado wines don't taste good 12% I hear, or believe that Colorado does not grow good grapes for wine production 10% I hear, or believe that Colorado wines taste too 8% fruity NOTE: Directionally higher at the 95% I hear, or believe that Colorado Confidence wines are level too noted in red. 6% sweet The labels are not attractive on Colorado wines. 5%

14 14 Consumer messaging quality defined Quality perception of Colorado wine is lower than other wines. Quality is lower for Colo wines, though improved over Quality of wine (mean score 5 pt scale) European wines California wines Colorado wines Insight: Quality cues in consumer communication may help improve trial and experimentation. NOTE: Directionally higher at the 95% Confidence level noted in red. More (62%) current Colorado wine drinkers perceive better quality vs. other subgroups. However, quality ratings are much lower than other attributes rated (46% - 57% for other subgroups vs. 70%-80% for other attributes). Sub Groups Quality of Colo. Wines (%T2 Box) 2017 Index to total TOTAL Quality of Colo. Wine top 2 Box % 50% 100 Metro Denver Future PI- Colo wines 49% 98 Weekly + Future PI - Colo wines 53% 106 Colo. Wine drinkers 62% 124 Age % 102 Age % 112 Age % 92 Male 53% 106 Female 49% 98 Hard Cider Drinkers 57% 114

15 Denver Metro is spending working?: 15 Denver Metro gap between trial and regular purchase Definitely have built awareness through ad spending. Loyalty is not yet built among Denver Metro drinkers, with 62% having consumed Colo. Wine, yet only 20% purchasing it on a regular basis (monthly or weekly+). Insight: Repeat purchase and building loyalty would help fill this gap. Usage Funnel Denver Metro For Colorado wine 78% Awareness 62% ever consumed 20% purchase regularly (weekly, monthly) Gap 42 % age points Denver Metro wine drinkers mirror the total sample. There are some minor differences: 78% have heard of Colorado wines, index 102 vs. total (76%) so, slightly better 77% believe Colo. Wine is priced fairly, yet quality ratings are slightly lower than the total sample indexing in the high 90 s. 11% have never purchased a Colorado wine significantly lower than the total 20%, index 48. % Index to Denver Metro wine drinkers (n=346) total sample Slightly younger: Age % 103 Heard of Colo wines - awareness 78% 102 Consumed Colo wines 62% 98 Purchase Colo wines monthly, weekly 20% %+ share of wine purchases allocated to Colo. wines 37% 95 Future PI in Colo wine 65% T2 Box 96 Believe Colo wine is quality 49% T2 Box 96 Believe Colo wine improving in quality 58% T2 Box 98 Believe Colo wine priced fairly 77% 104 Never purchased Colo. Wine 11% 48 I like to buy and support local growers 76% T2 Box 101 Restaurants that feature locally grown food should also 75% T2 Box feature local 99 I like to experiment and taste different styles of wines 78% T2 Box from different regions 100 I think the Colo wine industry has potential for future 76% T2 Box growth 97 I am interested in visiting Co. wineries 75%T2 Box 99 I believe there are quality wines made in Colorado 66% T2 Box 94 I can easily find Colorado wines at my local wine shop or 27% T2 Box liquor store 82 I hear more and more about Colo wines than I used to 48% T2 Box 102

16 Opinions of Colorado wines: Among total wine drinkers (aided list) 5 point scale agree MEAN scores 2017 (n=500) 2016 (n=500) I believe there are quality wines made in Colorado I can easily find Colorado wine at my local wine shop or liquor store I like to buy Colorado and support local growers I like to buy wine with the Colorado Proud logo on the label 3.45 na I think Colorado wines are too sweet 2.69 na I think of wines made in Colorado in the same way I do locally grown produce Craftsmanship is apparent in Colorado wines I am interested in visiting Colorado wineries I am interested in Colorado wine tasting events I see and hear more and more about Colorado wines than I used I think the Colorado wine industry has potential for future growth Restaurants that feature locally grown food should also feature local wines Grapes in Colorado are exposed to cooler nights and hotter days which leads to better wines I like to experiment and taste different styles of wine and wines from different regions Wine drinkers are positive on a number of attributes those above 4.00 mean are quite strong noted in green boxes. Vs. 2016, can easily find Colo. Wine has decreased significantly. Insight: Improve visibility and find-ability of Colo. Wines at retail. Among subgroups, strong scores are noted (80%+) for multiple statements among Colo. Wine drinkers, and Hard Cider drinkers, noted by green boxes below. Notably, a low percent of drinkers say they can easily find Colo. Wines & this holds true across all sub groups, with Denver Metro quite low 27%. Denver Colo Wine Hard Metro Weekly Male Female Drinkers Cider 2017 top scoring statements I like to buy and support local growers T2 Box % q 20 76% 82% 81% 81% 75% 70% 70% 78% 90% Restaurants that feature locally grown food should also feature local wines T2 Box %) q 20 75% 80% 77% 77% 79% 72% 71% 78% 88% I like to experiment and taste different styles of wines from different regions 78% 84% 78% 78% 82% 74% 80% 77% 88% I think the Colo wine industry has potential for future growth 76% 87% 78% 78% 83% 75% 78% 78% 88% I am interested in visiting Co. wineries 75% 82% 82% 82% 76% 70% 72% 78% 87% I believe there are quality wines made in Colorado 66% 82% 73% 73% 73% 65% 72% 69% 83% I can easily find Colorado wines at my local wine shop or liquor store 27% 41% 35% 35% 37% 29% 44% 27% 41% I hear more and more about Colo wines than I used to 48% 55% 53% 53% 51% 38% 50% 45% 65%

17 17 Colorado-produced wine drinkers differ: Vs. the total sample of wine drinkers, Colorado wine drinkers are: Older (index 114), slightly more college graduates. They consume and buy wine more frequently. Index 130. They are more interested in Colorado wine purchase in future; index 113. More believe Colorado wines are good quality (index 122) and improving in quality (index 116), though still less vs. other measures. They are on par with the total sample in terms of Colorado wines priced fairly. More agree (80%+ Top 2 Box) with many of the Colo. Wine statements. Colorado-produced wine drinkers (n=313) % Index to total sample Older: Age % 114 More college grad & post grad 68% 103 More male vs. total 38% 109 Consume more wine weekly + 74% 110 Buy wine more frequent monthly + 26% 130 Future PI in Colo wine higher 77% T2 Box %+ share of wine purchases allocated to Colo. Wines among Colo wine drinkers 39% na Believe Colo wine is quality 62% T2 Box 122 Believe Colo wine improving in quality 67% T2 Box 116 Believe Colo wine priced fairly 73% 99 Never purchased Colo. Wine 5% 22 I like to buy and support local growers 82% T2 Box 109 Restaurants that feature locally grown food should also feature local 80% T2 Box 106 I like to experiment and taste different styles of wines from different 84% T2 Box regions 107 I think the Colo wine industry has potential for future growth 87% T2 Box 111 I am interested in visiting Co. wineries 82%T2 Box 108 I believe there are quality wines made in Colorado 82% T2 Box 117 I can easily find Colorado wines at my local wine shop or liquor store 41% T2 Box 124 I hear more and more about Colo wines than I used to 55% T2 Box 116

18 18 Frequent (weekly+) wine drinkers differ: Vs. the total sample of wine drinkers, More Frequent (weekly+) wine drinkers are: Slightly younger, college educated (index 109). Weekly + drinkers rate Colorado wines relatively higher on quality scores vs. the total sample. 82% are interested in visiting wineries (index 107). Like other subgroups, a smaller percent (35%) indicate they can easily find Colo wines at their local wine shop. 20% have never purchased a Colo. Wine lower than the total sample, index % of frequent wine drinkers (weekly+) allocate 20% or more to Colorado wine purchases; (index 97) slightly less than all Colorado wine purchasers (39%). % Index to Frequent (Weekly +) wine drinkers (n=346) total sample Slightly younger: Age % 104 More college grad & post grad 71% 109 More male vs. total 38% 109 Heard of Colo wines - awareness 78% 103 Consumed Colo wines 66% 106 Purchase Colo wines monthly, weekly 25% %+ share of wine purchases allocated to Colo. wines 38% 97 Future PI in Colo wine higher 69% T2 Box 102 Believe Colo wine is quality 53% T2 Box 104 Believe Colo wine improving in quality 62% T2 Box 106 Believe Colo wine priced fairly 71% 96 Never purchased Colo. Wine 20% 85 I like to buy and support local growers 81% T2 Box 108 Restaurants that feature locally grown food should also feature 77% T2 Box local 101 I like to experiment and taste different styles of wines from 78% T2 Box different regions 100 I think the Colo wine industry has potential for future growth 78% T2 Box 100 I am interested in visiting Co. wineries 82%T2 Box 107 I believe there are quality wines made in Colorado 73% T2 Box 105 I can easily find Colorado wines at my local wine shop or liquor 35% T2 Box store 105 I hear more and more about Colo wines than I used to 53% T2 Box 112

19 Differences By Age: More older consumers have heard of (88%), and have consumed Colorado wines (71%), but when it comes to allocating share of purchase, significantly more (53%) allocate 20%+ share to Colo. Wines. Vs. 2016, more younger wine drinker consume wine weekly (72% vs. 59%) and significantly more purchase Colo. Wines weekly and monthly (27%) vs. older drinkers (21%). 19 Age (n=179) (n=150) (n=136) (n=150) (n=185) (n=200) Heard of CO wine - q 2 (% total) 65% 62% 72% 67% 88% 87% Consumed CO wine - q3 (% total) 57% 57% 58% 58% 71% 71% S6 - how often drink any wine (weekly+) 20%+ share of purchase is CO wine - among Colo wine drinkers by age(n=102, 85, 79, 87,132, 142) Have never purchased CO wine Purchase CO wine monthly, weekly Future PI CO wine (Top 2 box 5 pt.. scale) 72% 59% 71% 71% 65% 70% 53% 39% 43% 36% 27% 16% 27% 22% 18% 22% 23% 20% 27% 25% 21% 19% 12% 7% 73% 79% 76% 66% 57% 58% Typically pay $ /bottle 28% 23% 21% 17% 24% 24% Typically pay $ /bottle 28% 29% 37% 37% 29% 36% Typically pay $ /bottle 15% 26% 21% 24% 22% 17% Expect to pay CO wine q 13 $ % 20% 21% 19% 26% 26% Expect to pay CO wine q 13 $ % 31% 43% 34% 33% 38% Expect to pay CO wine q 13 $ % 29% 20% 27% 21% 22% S9 Grad 4 yr college, Post Grad (%) 61% 59% 65% 62% 68% 63% Male 29% 26% 38% 51% 39% 43% Female 71% 74% 62% 49% 61% 58% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

20 20 Colo. wine impressions By Age: Significantly more younger wine consumers indicate interest in supporting local growers (81% vs. 70%) and visiting Colo. Wineries (82% vs, 70%) vs. older, wine drinkers. Price of Colorado wines is viewed to be fair among 70%+ of all ages. All age demos are quite positive toward Colo. Wine statements. However, consistently, the ability to easily find Colo. Wines, is a problem for all ages and significantly more so in 2017 vs among and demos. Insight: Younger drinkers are a prime target consumer. Age - impressions of Colo. Wines (n=179) (n=150) (n=136) (n=150) (n=185) (n=200) Quality of CO wine (top 2 box 5 pt.. scale) q 10 51% 47% 56% 42% 46% 49% Quality improving - CO wine (T2 Box) Q 11 62% 58% 60% 58% 55% 56% Price/quality of CO Wine %priced fairly Q 12 72% 72% 78% 77% 72% 70% I like to buy and support local growers T 2 box % 81% 82% 75% 79% 70% 73% Restaurants that feature locally grown food should also feature local winest2 Box % I like to experiment and taste different styles of wines from different regions T2 B % 77% 85% 79% 84% 72% 78% 78% 83% 82% 84% 74% 78% I think the Colo wine industry has potential for future growth Top 2 Box % 78% 85% 83% 80% 75% 85% I am interested in visiting Co. wineries Top 2 Box % 82% 85% 76% 76% 70% 67% I believe there are quality wines made in Colorado% T 2 Box 73% 76% 73% 70% 65% 72% I can easily find Colorado wines at my local wine shop or liquor store% T 2 Box 35% 51% 37% 47% 29% 47% I hear more and more about Colo wines than I used to % T 2 Box 53% 47% 51% 43% 38% 43% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

21 21 Differences By Gender: Colorado wine share (20%+) increased among significantly more people in both genders in Consumption of Colo. Wine dropped among females in 2017 to 60% from 71% in Awareness also dropped. Males remained steady. Future PI is at parity male to female 67% & 68% respectively in Significantly more men (27%) buy Colo. Wine weekly+ vs. females (16%) in Males 2017 Males 2016 Females 2017 Females 2016 Males vs. Females (n=176) (n=200) (n=324) (n=300) Heard of CO wine - q 2 (% total) 78% 79% 74% 88% Consumed CO wine - q3 (% total) 67% 66% 60% 71% S6 - how often drink any wine (weekly+) 74% 70% 67% 65% 20%+ share of purchase is CO wine - among Colo wine drinkers by gender (n=118, 131, 195, 183) 41% 26% 38% 27% Have never purchased CO wine 17% 17% 26% 23% Purchase CO wine monthly, weekly 27% 19% 16% 12% Future PI CO wine (Top 2 box 5 pt.. scale) 67% 62% 68% 70% Typically pay $ /bottle - 20% 19% 27% 24% Typically pay $ /bottle 31% 33% 31% 35% Typically pay $ /bottle 20% 26% 18% 19% Expect to pay CO wine q 13 $ % 24% 25% 21% Expect to pay CO wine q 13 $ % 35% 37% 35% Expect to pay CO wine q 13 $ % 24% 21% 27% Age (%) 30% 20% 39% 37% Age (%) 30% 38% 26% 25% Age (%) 41% 43% 35% 38% S9 Grad 4 yr college, Post Grad (%) 68% 68% 63% 57% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

22 22 Colo. wine impressions by Gender : Both males and females are interested in experimenting and tasting different styles of wine. Females are significantly higher vs. males for fair price impressions of Colorado wine (77% vs. 68%). Both genders are quite positive toward Colo. Wine statements. However, consistently, the ability to easily find Colo. Wines, is a problem, significantly more so in 2017 (27%) vs (46%) among women. Insight: Both males and females are consumer targets for Colorado wine consumption. Males vs. Females impressions of Colo. wine Quality of CO wine (top 2 box 5 pt.. scale) q 10 Quality improving - CO wine (T2 Box) Q 11 Price/quality of CO Wine %priced fairly Q 12 Males 2017 Males 2016 Females 2017 Females 2016 (n=176) (n=200) (n=324) (n=300) 53% 45% 49% 47% 64% 62% 56% 54% 68% 71% 77% 74% I like to buy and support local growers T2 Box % 70% 72% 78% 81% Restaurants that feature locally grown food should also feature local winest2 Box % 71% 78% 78% 84% I like to experiment and taste different styles of wines from different regions T 2 Box % 80% 78% 77% 83% I think the Colo wine industry has potential for future growth T 2 Box % 78% 80% 78% 86% I am interested in visiting Co. wineries T2B% 72% 68% 78% 80% I believe there are quality wines made in Colorado T2B% I can easily find Colorado wines at my local wine shop or liquor store% T 2 72% 73% 69% 72% 44% 52% 27% 46% I hear more and more about Colo wines than I used to % T 2Box 50% 49% 45% 41% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

23 23 Differences among Hard Cider drinkers: In 2017, significantly more Hard Cider drinkers have heard of Colo. Wines (83%) vs (72%). 51% in 2017 allocate 20%+ share to Colo. Wines higher than other sub groups & higher vs (39%). 65% in 2017 hear more about Colo. Wines, significantly higher vs (45%). Hard Cider drinkers, who drink wine tend to skew younger and male vs. the total sample Hard Cider drinkers (n=115) (n=120) Heard of CO wine - q 2 (% total) 83% 72% Consumed CO wine - q3 (% total) 71% 68% S6 - how often drink any wine (weekly+) 82% 69% 20%+ share of purchase is CO wine - among Colo wine drinkers by among cider drinkers (n=82, 82) 51% 39% Have never purchased CO wine 21% 17% Purchase CO wine monthly, weekly 35% 28% Future PI CO wine (Top 2 box 5 pt.. scale) 77% 77% Typically pay $ /bottle - 26% 24% Typically pay $ /bottle 23% 33% Typically pay $ /bottle - 21% 22% Expect to pay CO wine q 13 $ % 18% Expect to pay CO wine q 13 $ % 37% Expect to pay CO wine q 13 $ % 29% I hear more and more about Colo wines than I used to % T 2 Box 65% 45% Age (%) 56% 43% Age (%) 30% 39% Age (%) 15% 18% S9 Grad 4 yr college, Post Grad (%) 65% 65% Male 38% 35% Female 62% 65% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

24 24 Colo. Wine impressions among Hard Cider drinkers: Significantly more Hard cider drinkers (75%) believe Colo. Wine quality is improving in 2017 vs Cider drinker impressions of Colo. Wine is positive for 80%+ on many statements - which is more than other sub groups. Notably, 88% of them indicate they like to experiment & say the Colo. Wine industry has potential for future growth. 90% of them like to buy and support local growers Hard Cider drinkers s5 (n=115) (n=120) Quality of CO wine (top 2 box 5 pt.. scale) q 10 57% 54% Quality improving - CO wine (T2 Box) Q 11 75% 63% Price/quality of CO Wine %priced fairly Q 12 72% 73% I like to buy and support local growers (mean 5 pt. scale) 90% 82% Restaurants that feature locally grown food should also feature local wines (mean 5 pt.. scale) Q 20 I like to experiment and taste different styles of wines from different regions I think the Colo wine industry has potential for future growth 88% 88% 88% 86% 88% 90% I am interested in visiting Co. wineries 87% 83% I believe there are quality wines made in Colorado% T 2 Box Q. 20) 83% 81% I can easily find Colorado wines at my local wine shop or liquor store% T 2 Box Q. 20) 41% 50% I hear more and more about Colo wines than I used to % T 2 Box Q. 20) 65% 45% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

25 25 Recommendations Build awareness among younger, drinkers. Use alternative media / social media and trial events / tastings in bars or at events to reach these drinkers. Interest in trial is high and younger drinkers are more experimental and they also drink Hard Cider not a mainstream alcohol beverage. Increase distribution outlets for CO wine to locations where consumers shop for wine. Restaurants, neighborhood liquor stores and discount volume liquor stores are where consumers shop for wine. Colorado wines must have a visible presence in these outlets. Leverage Retail to increase awareness. Consumers say they cannot find Colo. Wines this could be a distribution issue and / or an issue in store, where Colo. Wines are sold. Optimize displays, promotions, point of sale at retail. In some liquor stores, there are signs for California wines, Italy, France, etc. develop signs for Colo. Wines. Develop retention, loyalty and re-purchase programs. Once aware of Colo. wine, consumers try it consumption among aware is 83%. However, there s a large gap to close from trial to regular consumption. Consider tasting events, rebates, frequent purchaser VIP rewards, winery tour promotion winners receive free trip and other programs to gain visibility. Social media, wine panels and other online media are good tools to reach a younger demo.

26 26 Recommendations Improve quality by defining what makes Colorado wine higher quality. Impressions of CO wine quality continue to be lower vs. California & Europe. To convert consumption from California, Colorado wines must be perceived to have high quality and CO wines must give consumers a reason why to convert from California wines. Wine awards, honors, taste reviews in magazines may help. Social media buzz may help, as well. Create prestige, appeal and consumer acceptance for Colorado brands of wine. 22% indicate Colorado wines don't have the prestige or same imagery as other types of wine I usually like to buy While related to quality, prestige and brand imagery can be quickly communicate through borrowed equity a spokes-person of sorts that evokes an image that is positive. Consider occasion-based advertising to help communicate that CO wine is a fit for multiple occasions. Restaurant, vacation and holiday / in-home occasions are wine consumption occasions that currently do not fit for CO wine. As with other category advertising, occasion based messages help show where CO wine is consumed. Target message tonality to younger, more experimental wine drinkers. More of them drink wine. More of them allocate 20%+ share to Colorado wines. They like to experiment, discover the new (and Snapchat their experiences) & be in the know. Are interested in supporting local growers and in visiting local wineries. Consider promotion that leverage experiences and experimentation popular themes among Millennials. A wine version of a Pub Crawl where consumers can taste various wines from Colorado. Perhaps a bicycle tour of wineries the Sonoma version in Colorado consumers enter to win.

27 27 Detailed Findings Total Sample Past month wine drinkers, living in Colorado

28 Who are wine drinkers?: 28 Wine drinkers drink all kinds of alcohol: Beer is slightly down among wine drinkers 66% in 2017 vs. 74% in This is significantly lower at the 95% CL. Hard cider penetration among wine drinkers remained flat over time 23% in Past month wine drinkers 2017 % also consume other alcohol (n=500) 2016 % also consume other alcohol (n=500) 2015 % also consume other alcohol (n=513) Wine 100% 100% 100% Beer 66% 74% 79% Spirits, mixed drinks or straight whiskey, vodka, gin, 62% 67% 71% rum, etc. Hard Cider 23% 24% 23% Income 2017 on par with 2016: 47% of 2017 wine drinkers have household incomes of $75k+. Income 2017 (n=500) 2016 (n=500) 2015 (n=513) Less than $75K 50% 46% 36% More than $75k 47% 49% 58% Q.S5 Which of the following alcoholic beverages have you consumed in the past month? Please check all that apply. Q. S8 What range does your annual household income fall into? Bold red font = significantly different vs. previous year at the 95% confidence level.

29 Demographics of wine drinkers: 29 Age, Education & Gender In 2017, age, gender and income are on par with Age and gender targets were set so that the respondent mix is similar to Education fell naturally and 75% of wine drinkers in Colorado are college graduates, on par with 72% in AGE AGE (n=500) AGE (n=500) AGE (n=513) % 30% 24% % 30% 28% % 40% 48% GENDER 2017 (n=500) 2016 (n=500) 2015 (n=513) Male 35% 40% 46% Female 65% 60% 54% Education % total sample 2017 (n=500) 2016 (n=500) Graduated high school 7% 6% Some college 18% 22% Graduated 2 year college 10% 10% Graduated 4 year college 42% 37% Post Graduate degree- masters or doctorate 23% 25% Q. S1 What is your gender? Q. S4 In which range does your age fall? Q. S9. What is your highest level of education? (check one). Note not asked in 2015.

30 Frequency of wine consumption: 30 In 2017, targets were set to ensure the incidence of respondents falling in different wine consumption frequencies was similar to Recall, with the Survey Monkey panel, 2015 data were dramatically different so much so that data were not comparable on measures affected by frequency of wine consumption. In 2017, 69% of the sample consumes wine weekly or more often, similar to 2016, 66%. Wine consumption frequency 2017 (n=500) 2016 (n=500) 2015 (n=513) Weekly or more often 69% 66% 80% Less than weekly 31% 34% 20% Q.S6 On average, how often do you drink wine? Note: Total sample = consumed wine in past month

31 Awareness Wine Production Geography 31 76% of Colorado wine drinkers know wine is produced in Colorado; up slightly from %. Aided Awareness of wine from most geographies remained flat vs Note that 2015 numbers are higher, likely due to the Survey Monkey sample difference, mentioned previously. California has strong awareness, with First mentions on an unaided awareness among 56% of the sample. Colorado was first mention among 6% - up from 2% in California Italy France Spain Colorado Australia Where heard of wine produced (aided) (total sample) 2017 (n=500) 2016 (n=500) 2015 (n=513) 61% 62% 76% 73% 80% 80% 86% 89% 93% 95% 86% 93% 96% 98% 92% 96% 96% First Mention Open end, Unaided Awareness Cali, Napa, Sonoma 56% France 13% Italy 10% Colo, West Slope, Grand Jct., Palisade 6% Argentina Oregon Washington State New York State Idaho 9% 9% 10% 33% 33% 39% 58% 60% 49% 53% 62% 50% 50% 65% 74% 9% Slovenia 6% 7% Q. 1 What geographic areas come to mind when thinking about where wine is produced? Write in. Q. 2 From which of the following geographic areas have you ever heard of wine being produced? (check all that apply)

32 Consumption by Geography: 32 63% of Colorado wine drinkers have consumed wine from Colorado, at parity to California wine consumption is 88% of the total sample and consumption remains significantly higher than all other wine production geographies. Wine consumption in Italy and France is down slightly, but not significantly so. Among those aware of Colorado wine, 83% have consumed it; a good conversion rate. This is second to California 95% of those aware of Cali wine have consumed it Conversion to consumption among those aware of Colo wine California (n=464 aware) 95% Colorado (n=378 aware) 83% Australia (n=305 aware) 80% Italy (n=460 aware) 79% France (n=447 aware) 75% Argentina (n=291 aware) 69% Spain (n=400 aware) 68% Washington St. (n=251 aware) 65% Oregon (n=246 aware) 62% NY St. (n=167 aware) 49% Slovenia (n=43 aware) 40% Idaho (n=47 aware) 36% Q. 3 From which of the following geographic areas have you consumed wine? Check all that apply. California Italy France Colorado Spain Australia Argentina Washington State Oregon New York State Idaho Slovenia 3% 2% 4% 3% 2% 3% Wine consumed by region (total sample) 2017 (n=500) 16% 16% 21% 33% 35% 30% 33% 2016 (n=500) 40% 42% 42% 49% 50% 45% 2015 (n=513) 54% 54% 58% 67% 72% 63% 63% 67% 72% 76% 75% 85% 83% 88% 93% 97%

33 Q. 4 What percent of all the wine you bought, during the last year or so, was from the following retail locations? If you don t buy wine at a location, please enter 0. Q. 16 Where would you expect to buy Colorado wines? (check all that apply) Q. 6 Other than price, what factors influence where you most like to purchase wine? (check all that apply) Wine purchase location among total sample: The largest share of purchase locations for wine remains at Neighborhood liquor stores (34% of wine is purchased here). Wine drinkers expect to buy Colorado wine in this location (70%). The second largest wine purchase location is Large, Volume discount liquor stores 21% share of all wine purchases, on par with 2016 at 22%. Only 46% of wine drinkers expect to find Colorado wine in this location. 58% of respondents expect to buy Colorado wines at wine specialty shops, however, only 7% of wine is purchased at these retailers. 12% of all wine is purchased in restaurants and 48% of respondents expect to buy Colorado wine in restaurants. 59% of respondents expect to buy Colorado wine at a winery or wine tasting room, however, only 5% of all wine is sold there. 33 Among total sample Q4. Share of wine purchase locations Q 16. Where you d expect to buy Colo. wine (check all that apply) 2017 (n=500) 2016 (n=500) 2015 (n=513) 2017 (n=500) 2016 (n=500) Neighborhood liquor store 34% 38% 31% 70% 72% Wine specialty shop 7% 7% 5% 58% 64% Large, volume discount liquor store 21% 22% 28% 46% 51% Grocery store that sells wine 7% 6% 6% 33% 31% Restaurants 12% 12% 12% 48% 49% Bars 6% 5% 6% 31% 33% Farmer's markets 1% 1% 0% 38% 39% Winery or wine tasting room 5% 4% 5% 59% 64% At a sport or concert venue 1% 1% 1% 10% 13% Internet 5% 3% 4% 19% 22% Other 1% 2% 1% 1% 1% TOTAL 100% 100% 100% NA NA Wine decision factors q 6 Selection Convenience Knowledgeable staff or other reliable source of information about the wines Supporting local businesses Quality of service 2017 (n=500) 2016 (n=500) 69% 70% 58% 55% 36% 39% 34% 38% 30% 28%

34 Wine purchase location among Colo. Wine drinkers: Among drinkers of Colorado wine, their share of wine purchase locations and their share of Colorado wine purchase locations are very similar, with the largest share coming from Neighborhood liquor stores 31% of Colorado wine is purchased here. The exception is Winery or wine tasting room 6% of all wine purchases among Colorado wine drinkers come from Winery or wine tasting rooms, yet of Colorado wine purchased, 17% came from Winery or wine tasting rooms. 67% of Colorado wine drinkers expect to purchase Colorado wine from this location. Wine specialty shops have a large gap between where Colorado wine drinkers expect to purchase Colorado wine (63%) & where they actually purchased Colorado wine (8%). Only 8% of all wine is purchased from this location among Colorado wine drinkers. 34 Among those who have consumed Colo. Wine (2017 n=313) Share of Wine purchase locations q 4 Share of CO Wine purchase locations q 14 Where expect to buy CO Wine q16 Neighborhood liquor store 33% 31% 73% Wine specialty shop 8% 8% 63% Large, volume discount liquor store 22% 17% 49% Grocery store that sells wine 5% 5% 32% Restaurants 12% 11% 52% Bars 6% 4% 36% Farmer's markets 1% 3% 42% Winery or wine tasting room 6% 17% 67% At a sport or concert venue 1% 1% 13% Internet 5% 2% 20% Other 1% 2% 1% TOTAL 100% 100% NA Q. 4 What percent of all the wine you bought, during the last year or so, was from the following retail locations? If you don t buy wine at a location, please enter 0. Q 14 What percent of all the Colorado wine you consumed or bought, during the last year or so, was from the following locations? If you don t buy wine at a location, please enter 0. Q. 16 Where would you expect to buy Colorado wines? (check all that apply)

35 Most continue to spend less than $15/ bottle: 67% in 2017 spend less than $15/bottle (66% in 2016). 31% spend $12 - $14.99 per bottle in 2017 (34% in 2016). 36% typically spend less than $12 per bottle in 2017 (32% in 2016) % People Spending $ on bottle of wine (n=500) Spend per bottle wine 2017 (n=500) 2016 (n=500) 2015 (n=513) 4% 2% Less than $9 per bottle 11% 10% 12% 8% 11% Less than $9 per bottle $9 - $11.99 per bottle 25% 22% 23% $12 - $14.99 per bottle 31% 34% 29% 19% 25% $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $15 - $19.99 per bottle 19% 22% 23% $20 - $24.99 per bottle $20 - $24.99 per bottle 8% 9% 9% $25 - $39.99 per bottle $25 - $39.99 per bottle 4% 3% 4% $40 or more per bottle $40 or more per bottle 2% 1% 1% 31% Q. 5 How much do you typically spend on a standard (750 ml) bottle of wine at a liquor store, a grocery store, or a specialty wine shop?

36 Occasions for wine: Participation in Wine Occasions respondents participate in a wide variety of wine occasions. While likely not the most frequent occasion, 78% indicate they consume wine for a Holiday meal or Special occasion, followed by 74% at a restaurant and home alone. 65% of wine drinkers indicate they drink wine while on vacation a new occasion measured in the 2016 study. Home entertaining is 64% consumption in 2017, significantly less than 2017 (74%). While many of the scores are significantly less vs. 2015, this is likely due to a difference in panel providers (recall, 2015 used Survey Monkey s panel) vs. a true lessening of occasion participation. FOR A HOLIDAY MEAL OR SPECIAL OCCASION AT A RESTAURANT BEFORE OR WITH A MEAL AT HOME ALONE, WHILE RELAXING, READING OR SOME ACTIVITY WITHOUT FOOD AT HOME ENTERTAINING GUESTS WHILE ON VACATION TAKING TO A FRIEND S HOUSE FOR A MEAL OR PARTY AT HOME WHILE COOKING 0% 78% 84% 88% 74% 78% 89% 74% 75% 83% [VALUE] 74% 79% 65% 71% 61% 68% 84% 56% 64% 72% OUTDOORS PICNIC OR BBQ 34% 39% 54% Q. 7 At which of the following occasions have you consumed wine over the last year or so? (check all that apply). NOTE: significantly higher differences noted in Bold red font at the 95% confidence level (8%+ points) among total sample. AS A GIFT FOR A CO-WORKER OR CASUAL FRIEND 2017 (n=500) 32% 32% 42% 0% 20% 40% 60% 80% 100% 2016 (n=500) 2015 (n=513)

37 37 Occasions for wine vs. for CO wine: In 2017, we changed question 15 from best fit for Colo. Wines to where consider consuming in next year so, the occasion data and gaps are not comparable from 2017 to Even so, 2017 consumption gaps still exist for holiday, restaurant, vacation for Colorado wines, at home - noted in red below. Notably, Outdoors and Gift for a co-worker are a good fit for Colorado wine consumption. Total Sample 2017 vs Occasions consumed wine- q Occasions consider consuming Colo. wine q Gap 2016 Occasions consumed wine 2016 Occasions best fit Colo. wine 2016 Gap For a holiday meal or special occasion 78% 55% -23% 84% 39% -45% At a restaurant before or with a meal 74% 55% -19% 78% 37% -41% At home alone, while relaxing, reading or some activity w/o food 74% 60% -14% 75% 53% -22% At home entertaining guests 64% 55% -9% 74% 48% -26% While on vacation 65% 40% -25% 71% 23% -48% Taking to a friend s house for a meal or party 61% 54% -7% 68% 47% -21% At home while cooking 56% 48% -8% 64% 35% -28% Outdoors picnic or BBQ 34% 39% 5% 39% 35% -4% As a gift for a co-worker or casual friend 32% 42% 10% 32% 41% 8% Q. 7 At which of the following occasions have you consumed wine over the last year or so? (check all that apply) Q For which of the following occasions does Colorado produced wine fit best in your opinion? (check all that apply) Q At which of the following occasions would you consider consuming Colorado produced wine over the next year or so? (check all that apply)

38 Frequency of wine purchased by region: 38 More wine drinkers consume wines from various geographies a few times a year - European wine is consumed a few times a year by 42% of wine drinkers. Colorado wine is consumed a few times a year by 27% of wine drinkers. Penetration of Colorado wine consumption improved slightly in the weekly, monthly and few times a year timeframes 2017 vs % say they have never purchased CO wine in 2017 on par with 2016; 21%. Have never Less than once a A few times a Around once a year % wine drinkers purchased year year Monthly Weekly European wine (e.g. France, Italy, Germany, etc.) 11% 8% 14% 16% 12% 15% 42% 42% 17% 16% 4% 2% California wine 4% 2% 8% 4% 7% 8% 39% 45% 32% 35% 9% 7% Colorado wine 23% 21% 16% 22% 14% 14% 27% 26% 14% 13% 6% 3% Washington and Oregon wine 32% 29% 21% 20% 16% 17% 19% 23% 11% 10% 2% 1% Wine from US States other than CA, OR, WA and CO 25% 27% 25% 26% 14% 13% 23% 25% 10% 8% 3% 1% Australia and New Zealand wine 25% 27% 17% 18% 15% 15% 26% 29% 14% 9% 3% 2% South American wine (e.g. Argentina, Chile, etc.) 30% 28% 15% 19% 16% 14% 24% 27% 13% 11% 3% 2% Q. 8 How often do you typically purchase wine from each of the following geographic areas? (check one timeframe that describes you best)

39 Future Purchase Interest: 34% state they are Definitely interested in purchasing Colorado wine in the future, up from 32% in Overall, future PI for Colorado wine is trending up over time. California (86% T2 Box PI) and European wines (78% T2 Box PI) interest the most wine drinkers in future purchase. Colorado is third, among 68% stating definitely and probably will buy Colo. Wine in the future. Australia / New Zealand purchase interest increased directionally to 65% vs & is dramatically trending up vs Future Purchase Interest by Geography (n=500) 39 Definitely will not buy Might or might not buy Definitely will buy Probably will not buy Probably will buy 1% California wine 2% 11% 35% 2% European wine 3% 17% 38% 3% Colorado wine 6% 23% 34% 3% Austrialia or New Zealand 7% 24% 38% 3% So. American wine 7% 30% 34% 51% 40% 34% 27% 26% % Top 2 box purchase intent (5 pt. scale) California wine 86% 89% 87% European wine 78% 78% 71% Colorado wine 68% 66% 52% Austrialia or New Zealand 65% 59% 58% So. American wine 60% 57% 61% Washington or Oregon wine 54% 61% 48% Wine from US states other than CA, OR, WA and CO 48% 48% 30% 2% Washington or Oregon wine 6% 38% 31% 23% Wine from US states other than CA, OR, WA and CO 3% 10% 38% 29% 19% Q.9 In the future, how interested are you in purchasing wine from each of the following geographic areas? (check one) 5 point scale. NOTE: Directionally higher at the 90% Confidence level noted in red.

40 Impressions of quality by region: Quality impressions among 2017 wine drinkers continues to be very strong for European and California above 4.00 mean. Similar to Colorado quality impression is lower than European and California wines at 3.57 but is significantly higher vs at the 95% confidence level. 40 Quality of wine (mean score 5 pt. scale) 2017 T2 Box % European wines 85% NOTE: Directionally higher at the 95% Confidence level noted in red. California wines 79% Colorado wines 50% Changes in quality impressions remains flat from 2016 to 2017 for Colorado, California and European wines. Colorado wines are seen to be improving in quality (58%) among significantly more people than European (33%) and California wines (49%). Changes in quality - Among total wine drinkers (n=500) Quality significantly declining Quality somewhat declining Quality staying about the same Quality somewhat improving Quality significantly improving % Top 2 box European wine % 3% 63% 21% 12% 33% European wine % 3% 67% 20% 9% 29% California wine % 5% 45% 36% 14% 49% California wine % 3% 48% 38% 11% 49% Colorado wine % 2% 39% 41% 17% 58% Colorado wine % 3% 40% 43% 14% 57% Colorado wine % 1% 41% 46% 12% 58% Q. 10 Select the statement that best describes your opinion and impression regarding the quality of wines from each of the following geographic areas. Check one in each row. 5 pt. scale Q. 11 Select the statement that best describes your opinion and impression of the change in quality of wines over time from each of the following geographic areas. (check one in each row) 5 pt. scale

41 Value by region: 41 Both Colorado and California wines are believed to be fairly priced by significantly more people vs. European wines and 2016 perceptions are at parity. European wines are thought to be somewhat and extremely overpriced by 55% of wine drinkers. Though 46% believe them to be somewhat overpriced significantly down from 54% in Colorado wines are perceived to be fairly priced by 74% of wine drinkers; significantly more than European wine perceptions of fairly priced (43%). Very few believe wines from any geography to be underpriced. Total wine drinkers (n=500) Value Extremely underpriced Somewhat Somewhat Fairly priced underpriced overpriced Extremely overpriced European wine European wine California wine California wine Colorado wine Colorado wine Colorado wine % 2% 43% 46% 9% 0% 1% 37% 54% 8% 0% 2% 68% 27% 2% 0% 2% 70% 25% 3% 1% 4% 74% 19% 3% 0% 3% 73% 21% 3% 0% 2% 64% 29% 4% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level (8%+ points) among total sample. Q. 12 Select the statement that best describes your opinion and impression regarding the pricing for the quality of wines from each of the following geographic areas. Check one in each row.

42 Price expectation by region: 42 80% of wine drinkers expect to pay $9 - $19.99 for Colorado wine. This is similar to California wine 76% expect to pay this range. Recall from chart 35 that 67% in 2017 spend less than $15/bottle (63% in 2015). As in 2016, European wines are expected to cost more; $12-$25 per bottle, by 70% of wine drinkers in Total wine drinkers Expect to Pay Less than $9 per bottle $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle European wine % 9% 21% 27% 22% 11% 6% European wine % 9% 20% 29% 21% 13% 6% California wine % 18% 35% 23% 10% 6% 1% California wine % 19% 31% 25% 12% 5% 1% Colorado wine % 24% 34% 22% 7% 3% 0% Colorado wine % 22% 35% 26% 8% 2% 1% Colorado wine % 20% 31% 30% 13% 2% 0% Q. 13 What do you expect to spend at a wine shop or liquor store for a typical bottle (750 ml) of wine from each of the following geographic areas? Check one in each row.

43 Colorado Wines: Colorado wine as a percent of total wine bought, significantly increased among Colo. Wine drinkers in % indicate Colorado wine is 20% or more of total share of wine purchase; significantly more than 2017 (27%). Among the total sample, 53% have not visited a Colorado winery, on par with Percent of total Wine purchases among CO. wine drinkers More than 50% of my wine purchases are Colorado wine 25% to 49% of my wine purchases are Colorado wine 20% to 24% of my wine purchases are Colorado wine 20% to 19% of my wine purchases are Colorado wine 1% to 9% of my wine purchases are Colorado wine 2017 (n=313) 2016 (n=314) 9% 6% 15% 12% 16% 9% 17% 16% 27% 31% Less than 1% of my wine purchases are Colorado wine 13% 21% I do not purchase Colorado wine 4% 5% %+ 23%* 18% 20%+ 39%* 27% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level Visited Co. Winery - among total sample (n=500) (n=500) (n=513) Yes, many times, all across the state 12% 7% 11% Yes, but only on the Western Slope (Palisade, Grand Junction, Paonia, Cortez, etc.) Yes, but only on the Front Range (Denver, Boulder, Loveland, Colorado Springs, etc.) Yes, but only in the mountains (Woodland Park, Glenwood Springs, Salida, Cañon City, etc.) No. I have never visited a Colorado Winery or tasting room. 13% 13% 25% 14% 17% 22% 8% 8% 12% 53% 55% 36% Q 17 What percentage of your overall wine purchases would you estimate is Colorado wine? Think about the percentage of your purchases in terms of volume. (Among those indicating they ve consumed Colorado wine Q. 3); question not asked in 2015 survey. *Rounds to 23.3% ( ). Not additive at whole decimals. Q 21 Have you ever visited a Colorado winery or tasting room? Among total sample.

44 Reasons for not consuming/purchasing Colo. wines: 44 Among the total sample, on an open ended basis, 22% state unfamiliarity as a reason why they don t drink or buy more Colorado wines. 18% state rejection of Colo. Wines, writing that they prefer other brands, wines from other places more. Why don t you consume or purchase more Colorado wines? Open-end 2017 (n=467) % Not familiar/haven t tried it/don t know enough about Colorado wines/ need to try it to determine 22% Availability/not as available as other wines 18% Prefer other brand/other wines from other places are better 18% Expensive/high price 13% Like to try different varieties besides Colorado wines 7% Lack of variety/selection 6% Other 6% General negative mentions (i.e. not good, don t like it, etc.) 5% Poor quality 4% Don t like the taste/flavor 4% Not a wine drinker/don't drink wine that often 3% Not interested/don't think about it 3% Tried it before/had bad experience with it 1% Just recently started drinking it/just recently become aware 1% Just my habit 1% I'll be buying one soon 1% Depending on my mood 1% I support/buy local wines 1% Q 18. Why don t you consume or purchase more Colorado wine? (open end mandatory) New question in 2017

45 45 Cannot find Colo. wines: On an aided basis, 47% indicate they cannot fine Colo. Wine. In addition, 22% say Colo wines do not have the same imagery as other types. 32% disagree (bottom 2 box) with the statement, I can easily find Colorado wine at my local wine shop or liquor store. This is significantly higher in 2017 vs Why you don t consume or purchase more of Colorado wines (aided list) 2017 TOTAL SAMPLE (n=500) I cannot find Colorado wines where I purchase or consume wine 47% Colorado wines don't have the prestige or same imagery as other types of wine I usually like to buy 22% Colorado wines are too expensive 18% I hear, or believe that Colorado wines don't taste good 12% I hear, or believe that Colorado does not grow good grapes for wine production 10% I hear, or believe that Colorado wines taste too fruity 8% I hear, or believe that Colorado wines are too sweet 6% The labels are not attractive on Colorado wines. 5% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level. I can easily find Colorado wine at my local wine shop or liquor store Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly Bottom 2 Box agree Top 2 Box % % 2017 TOTAL SAMPLE (n=500) 6% 26% 35% 20% 13% 33% 32% 2016 TOTAL SAMPLE (n=500) 5% 16% 31% 30% 19% 48% 21% Q 19. In addition to what you wrote, are any of the reasons below why you don t consume or purchase more of Colorado wines? New question in Na for 2016 Q. 20 What are your opinions and impressions of Colorado wines? Check below how much you agree or disagree with each statement.

46 Opinions of Colorado wines: 46 Wine drinkers are positive on a number of attributes those above 4.00 mean are quite strong & include: Restaurants should feature Co. wines Industry has potential for growth Support local growers Experimental and taste different styles Interest in visiting wineries is significantly higher vs on I can easily find Colo. Wine at my local wine shop or liquor store. Among total wine drinkers (aided list) point scale agree MEAN scores (n=500) (n=500) (n=513) I believe there are quality wines made in Colorado na I can easily find Colorado wine at my local wine shop or liquor store na I like to buy Colorado and support local growers I like to buy wine with the Colorado Proud logo on the label 3.45 na na I think Colorado wines are too sweet 2.69 na na I think of wines made in Colorado in the same way I do locally grown produce na Craftsmanship is apparent in Colorado wines I am interested in visiting Colorado wineries I am interested in Colorado wine tasting events I see and hear more and more about Colorado wines than I used na I think the Colorado wine industry has potential for future growth na Restaurants that feature locally grown food should also feature local wines Grapes in Colorado are exposed to cooler nights and hotter days which leads to better wines I like to experiment and taste different styles of wine and wines from different regions na Q. 20 What are your opinions and impressions of Colorado wines? Check below how much you agree or disagree with each statement. (check one per row); na=not asked. NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

47 Advice open end: 47 As in 2016, a large percent of wine drinkers indicate advertising and tasting events would help people buy and drink more Colorado wine. Distribution at more retailers was mentioned second most often by 28%. What advice do you have for Colorado wine producers to get people like you to buy and drink more Colorado wine? Open end n=426 % Be more visible/advertise more through local TV stations/radio 41% Increase distribution/readily available/offer it to more local restaurants/liquor stores 28% More winery tours/tasting events/free sample tasting 21% Keep the prices down/competitive pricing 12% Assure good quality/value on the product 6% Other 5% More promotional deals/coupons 5% Make it easier to find information about them 4% More variety/options to choose 4% Don't make the wine too sweet/fruity 3% Improve the taste 2% Make it apparent on the label that it is locally made product/produced in Colorado 2% Sponsor local events 2% Have someone give reviews on your wine 1% Q. 22 What advice do you have for Colorado wine producers to get people like you to buy and drink more Colorado wine?

48 48 A closer look at Metro Denver wine drinkers

49 SCORESHEET Overview of Denver Metro drinkers: 49 Denver Metro wine drinkers mirror the total sample. There are some minor differences: 78% have heard of Colorado wines, index 102 vs. total (76%) so, slightly better 77% believe Colo. Wine is priced fairly, yet quality ratings are slightly lower than the total sample indexing in the high 90 s. 11% have never purchased a Colorado wine significantly lower than the total 20%, index 48. Denver Metro wine drinkers (n=346) % Index to total sample Slightly younger: Age % 103 Heard of Colo wines - awareness 78% 102 Consumed Colo wines 62% 98 Purchase Colo wines monthly, weekly 20% %+ share of wine purchases allocated to Colo. wines 37% 95 Future PI in Colo wine higher 65% T2 Box 96 Believe Colo wine is quality 49% T2 Box 96 Believe Colo wine improving in quality 58% T2 Box 98 Believe Colo wine priced fairly 77% 104 Never purchased Colo. Wine 11% 48 I like to buy and support local growers 76% T2 Box 101 Restaurants that feature locally grown food should also feature local 75% T2 Box 99 I like to experiment and taste different styles of wines from different regions 78% T2 Box 100 I think the Colo wine industry has potential for future growth 76% T2 Box 97 I am interested in visiting Co. wineries 75%T2 Box 99 I believe there are quality wines made in Colorado 66% T2 Box 94 I can easily find Colorado wines at my local wine shop or liquor store 27% T2 Box 82 I hear more and more about Colo wines than I used to 48% T2 Box 102

50 Demographics of Metro Denver wine drinkers: Age, Education & Gender Age and Gender of Metro Denver vs. Non-Metro Denver respondents is very similar. There are more Denver Metro wine drinkers that responded to this survey with college degrees vs. non-metro Denver. 50 Age Denver Metro (n=264) 37% 27% 36% 2017 Non Denver Metro (n=236) 34% 28% 38% Gender Male Female 2017 Denver Metro (n=264) 35% 65% 2017 Non Denver Metro (n=236) 35% 65% Graduated high Graduated 2 year Graduated 4 Post graduate Education school Some College college year college degree 2017 Denver Metro (n=264) 8% 17% 8% 43% 23% 2016 Non Denver Metro (n=220) 6% 26% 11% 35% 21% Q. S1 What is your gender? Q. S4 In which range does your age fall? Q. S9. What is your highest level of education? (check one). Note not asked in 2015.

51 51 Metro Denver Colo wine awareness: Among Metro Denver wine drinkers, 78% have heard of Colorado wines up from 76% in Versus the total, Metro Denver awareness of Colorado wines indexes at 103. Heard of wine being produced (aided) 2017 Denver Metro (n=264) 2017 index to total 2016 Denver Metro (n=280) 2017 Non Denver Metro (n=236) 2016 Non Denver Metro (n=220) California 92% Italy 92% France 89% Spain 84% Colorado 78% Australia 67% Argentina 64% Washington State 54% Oregon 52% New York State 32% Idaho 11% % 94% 98% 96% 92% 96% 93% 89% 93% 84% 75% 75% 76% 73% 70% 67% 55% 55% 66% 51% 53% 54% 46% 46% 46% 46% 50% 32% 35% 35% 11% 8% 8% Slovenia 8% 5% 9% 7% 92 Q. 2 From which of the following geographic areas have you ever heard of wine being produced? (check all that apply

52 Metro Denver - Colo wine consumption: 52 Overall, there are fewer Metro Denver frequent (weekly+) wine drinkers (66%) vs. Non Metro Denver (72%), index to total (69%) is % of Metro Denver wine drinkers have consumed Colorado wine; indexing at 99 vs. the total. This has declined since 2016, slightly. Metro Denver consumption increased for Italy, Spain, Australia, Argentina in How often do you drink wine? Weekly + NET Daily More than once a week but not every day Once a week 2-3 times a month Once a month Special Occasions or holidays only 2017 Denver Metro (n=264) 66% 9% 34% 23% 23% 8% 3% 2017 Non Denver Metro (n=236) 72% 11% 39% 22% 14% 9% 4% 2017 Non 2016 Non Areas where you have ever 2017 Denver Metro 2016 Denver Metro Denver Metro Denver Metro consumed wine (n=264) 2017 Index to total (n=280) (n=236) (n=220) California 87% 99 92% 89% 94% Italy 75% % 69% 75% France 67% % 67% 70% Colorado 62% 99 65% 64% 60% Spain 58% % 50% 50% Australia 52% % 45% 49% Argentina 43% % 37% 40% Washington State 37% % 28% 30% Oregon 33% % 27% 31% New York State 15% 90 19% 18% 11% Slovenia 4% 123 2% 3% 3% Idaho 3% 100 3% 3% 2% Q.S6 On average, how often do you drink wine? Q. 3 From which of the following geographic areas have you consumed wine? Check all that apply.

53 Metro Denver hard to find Colo. wines: Significantly more Metro Denver wine drinkers (51%) indicate they cannot find Colorado wines where they purchase or consume wine vs. Non Metro Denver wine drinkers (42%). Metro Denver wine drinkers that say they cannot easily find Colo wines at their local wine shop or liquor store has significantly increased in 2017 both Top and Bottom box scores are significantly higher vs noted in red boxes in 2 nd chart below. 53 Why you don t consume or purchase more of Colorado wines 2017 TOTAL SAMPLE (n=500) 2017 Denver Metro (n=264) 2017 Non Denver Metro (n=236) I cannot find Colorado wines where I purchase or consume wine 47% 51% 42% Colorado wines don't have the prestige or same imagery as other types of wine I usually like to buy 22% 22% 22% Colorado wines are too expensive 18% 14% 23% I hear, or believe that Colorado wines don't taste good 12% 11% 13% I hear, or believe that Colorado does not grow good grapes for wine production 10% 10% 10% I hear, or believe that Colorado wines taste too fruity 8% 10% 6% I hear, or believe that Colorado wines are too sweet 6% 6% 7% The labels are not attractive on Colorado wines. 5% 6% 5% Bottom 2 Box I can easily find Colorado wine at Strongly Somewhat Somewhat Strongly Top 2 Box % % my local wine shop or liquor store disagree disagree Neutral agree agree 2017 Denver Metro (n=264) 6% 28% 38% 16% 11% 27% 34% 2016 Denver Metro (n=280) 7% 16% 35% 28% 14% 41% 24% Q.19 In addition to what you wrote, are any of the reasons below why you don t consume or purchase more of Colorado wines? New question in Q. 20 What are your opinions and impressions of Colorado wines? Check below how much you agree or disagree with each statement.

54 Metro Denver - More frequent wine purchases: Denver Metro wine drinkers purchase wine from Colorado in similar frequency to the total. A higher percent of Non Denver Metro consumers purchase Colorado wine more frequently 29% a few times a year & 17% monthly. 54 Never have Less than Around A few times Purchase wine from Colorado purchased once a year once a year a year Monthly Weekly 2017 TOTAL SAMPLE (n=500) 23% 16% 14% 27% 14% 6% 2016 TOTAL SAMPLE (n=500) 21% 22% 14% 26% 13% 3% 2017 Denver Metro (n=264) 27% 17% 14% 26% 12% 5% 2016 Denver Metro (n=280) 23% 22% 14% 25% 13% 4% 2017 Non Denver Metro (n=236) 18% 15% 14% 29% 17% 7% 2016 Non Denver Metro (n=220) 20% 23% 15% 28% 13% 2% Q. 8 How often do you typically purchase wine from each of the following geographic areas? Colorado. (check one timeframe that describes you best)

55 Lower interest in future purchase of Colo. wine: 55 Fewer Denver Metro wine drinkers state future PI in Colorado wine (65%) vs. Non-Denver Metro drinkers. Versus the total (68%), in 2017, Denver Metro future PI for Colorado wine is 65%, indexing at 96. Future PI Colorado Wine Definitely will Probably will Might or Probably will Definitely will Metro Denver not buy not buy might not buy buy buy Top 2 Box % 2017 TOTAL SAMPLE (n=500) 3% 6% 23% 34% 34% 68% 2016 TOTAL SAMPLE (n=500) 2% 6% 26% 34% 32% 66% 2017 Denver Metro (n=264) 5% 5% 25% 33% 33% 65% 2016 Denver Metro (n=280) 2% 5% 28% 36% 29% 65% 2017 Non Denver Metro (n=236) 1% 7% 21% 36% 35% 71% 2016 Non Denver Metro (n=220) 1% 8% 23% 31% 37% 68% Q. 9. In the future, how interested are you in purchasing wine from each of the following geographic areas? Colorado

56 Impressions of Quality Denver Metro: 49% of Denver Metro wine drinkers believe Colorado wine to be quality up slightly from 44% in % of Denver Metro wine drinkers believe Colorado wine is improving in quality on par with 2016, 57% 56 Somewhat below average quality Somewhat above average quality Quality Colorado Wine Very poor quality Average quality Very high quality Top 2 Box % 2017 TOTAL SAMPLE (n=500) 1% 7% 41% 34% 17% 50% 2016 TOTAL SAMPLE (n=500) 1% 11% 42% 33% 13% 46% 2017 Denver Metro (n=264) 2% 7% 42% 33% 16% 49% 2016 Denver Metro (n=280) 1% 11% 44% 31% 13% 44% 2017 Non Denver Metro (n=236) 1% 7% 40% 34% 18% 52% 2016 Non Denver Metro (n=220) 1% 10% 40% 35% 15% 49% Quality significantly declining Quality somewhat declining Quality staying the same Quality somewhat improving Quality significantly improving Top 2 Box % Quality Improving Colorado Wine 2017 TOTAL SAMPLE (n=500) 0% 2% 39% 41% 17% 59% 2016 TOTAL SAMPLE (n=500) 0% 3% 40% 43% 14% 57% 2017 Denver Metro (n=264) 0% 2% 41% 42% 16% 58% 2016 Denver Metro (n=280) 0% 3% 40% 42% 15% 57% 2017 Non Denver Metro (n=236) 0% 3% 38% 41% 18% 59% 2016 Non Denver Metro (n=220) 1% 3% 40% 44% 13% 57% Q. 10 Select the statement that best describes your opinion and impression regarding the quality of wines from each of the following geographic areas. Check one in each row. Q. 11 Select the statement that best describes your opinion and impression of the change in quality of wines over time from each of the following geographic areas. (check one in each row)

57 Price paid for wine Denver Metro: The price sweet spot among 57% of Denver Metro for all wine is $9 - $14.99 per bottle. 40% of Denver Metro consumers expect to pay $12 - $14.99 per bottle of Colo. Wine. 57 How much do you typically spend on a standard (750 ml) bottle of wine at a liquor store or wine shop? Less than $9 per bottle $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle 2017 TOTAL SAMPLE (n=500) 11% 25% 31% 19% 8% 4% 2% 2016 TOTAL SAMPLE (n=500) 10% 22% 34% 22% 9% 3% 1% 2017 Denver Metro (n=264) 10% 24% 33% 19% 7% 4% 3% 2016 Denver Metro (n=280) 9% 20% 38% 20% 9% 4% 1% 2017 Non Denver Metro (n=236) 13% 25% 29% 19% 10% 4% 0% 2016 Non Denver Metro (n=220) 11% 24% 30% 24% 9% 3% 1% Less than $9 $9-$11.99 per $12-$14.99 $15-$19.99 $20-$24.99 $25-$39.99 $40 or more Expected Cost Colorado Wine per bottle bottle per bottle per bottle per bottle per bottle per bottle 2017 TOTAL SAMPLE (n=500) 9% 24% 34% 22% 7% 3% 0% 2016 TOTAL SAMPLE (n=500) 6% 22% 35% 26% 8% 2% 1% 2017 Denver Metro (n=264) 10% 23% 34% 22% 7% 3% 1% 2016 Denver Metro (n=280) 7% 21% 40% 20% 9% 2% 1% 2017 Non Denver Metro (n=236) 8% 25% 34% 23% 8% 3% 0% 2016 Non Denver Metro (n=220) 5% 23% 28% 33% 8% 3% 0% Q. 5 How much do you typically spend on a bottle of wine? Q. 13 What do you expect to spend at a wine shop or liquor store for a typical bottle (750 ml) of wine from each of the following geographic areas? Check one in each row. COLORADO

58 Value & Frequency of Colo. Wine - Denver Metro: The majority (70%+) believe Colorado wine is priced fairly. 24% of Non-Denver Metro wine drinkers buy Colorado wine monthly or weekly more than Metro Denver (17%). 58 Extremely Somewhat Somewhat Extremely Value Colorado Wine under priced under priced Priced fairly over priced over priced 2017 TOTAL SAMPLE (n=500) 1% 4% 74% 19% 3% 2016 TOTAL SAMPLE (n=500) 0% 3% 73% 21% 3% 2017 Denver Metro (n=264) 1% 5% 77% 15% 3% 2016 Denver Metro (n=280) 0% 3% 74% 20% 3% 2017 Non Denver Metro (n=236) 0% 3% 70% 23% 3% 2016 Non Denver Metro (n=220) 0% 3% 71% 22% 4% Never have Less than Around A few times Purchase wine from Colorado purchased once a year once a year a year Monthly Weekly 2017 TOTAL SAMPLE (n=500) 23% 16% 14% 27% 14% 6% 2016 TOTAL SAMPLE (n=500) 21% 22% 14% 26% 13% 3% 2017 Denver Metro (n=264) 27% 17% 14% 26% 12% 5% 2016 Denver Metro (n=280) 23% 22% 14% 25% 13% 4% 2017 Non Denver Metro (n=236) 18% 15% 14% 29% 17% 7% 2016 Non Denver Metro (n=220) 20% 23% 15% 28% 13% 2% Q. 12 Select the statement that best describes your opinion and impression regarding the pricing for the quality of wines from each of the following geographic areas. Check one in each row.

59 Where expect to buy Colo. Wines Denver Metro: Denver Metro mirrors the total sample in terms of where customers expect to purchase Colorado wines. Neighborhood liquor stores, wine specialty shops and winery / wine tasting rooms top the retail list. The same retail outlets apply for Non-Denver Metro customers, as well. 59 Where would you expect to buy Colorado wines? 2017 TOTAL SAMPLE (n=500) 2016 TOTAL SAMPLE (n=500) 2017 Denver Metro (n=264) 2016 Denver Metro (n=280) 2017 Non 2016 Non Denver Metro Denver Metro (n=236) (n=220) Neighborhood liquor store 70% 72% 71% 69% 69% 76% Wine specialty shop 58% 64% 58% 62% 59% 66% Winery or wine tasting room 59% 64% 57% 60% 61% 69% Restaurants 48% 49% 50% 51% 47% 48% Large, volume discount liquor store 46% 51% 50% 53% 42% 49% Farmer's markets 38% 39% 39% 38% 37% 40% Grocery store that sells wine 33% 31% 34% 34% 32% 27% Bars 31% 33% 33% 36% 30% 30% At a sport or concert venue 10% 13% 11% 14% 9% 11% Internet 19% 22% 20% 24% 18% 19% Q. 16 Where would you expect to buy Colorado wines? (check all that apply)

60 Colorado Wines: 60 Non Metro Denver wine drinkers allocate more wine share to Colorado wines 29% (25% share+) vs. Metro Denver 19%. 42% of Non Metro Denver allocate 20% + share to Colorado wines in 2017, significantly more than 29% in Percent of total Wine purchases Q 17 More than 50% of my wine purchases are Colorado wine 25% to 49% of my wine purchases are Colorado wine 20% to 24% of my wine purchases are Colorado wine 10% to 19% of my wine purchases are Colorado wine 2017 Denver Metro (n=163) 2016 Denver Metro (n=181) 2017 Non Denver Metro (n=150) 2016 Non Denver Metro (n=133) 6% 5% 12% 8% 13% 12% 17% 13% 19% 10% 13% 8% 17% 17% 16% 15% Metro Denver 2017 Non Metro Denver 2017 Non Metro Denver %+ 19% 29% 21% 20%+ 37%* 42% 29% 1% to 9% of my wine purchases are Colorado wine Less than 1% of my wine purchases are Colorado wine 30% 30% 25% 31% 11% 20% 15% 22% I do not purchase Colorado wine 4% 6% 3% 4% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level. Q 17 What percentage of your overall wine purchases would you estimate is Colorado wine? Think about the percentage of your purchases in terms *37.4 rounded whole numbers not additive.

61 Metro Denver seeing/hearing more: Top 2 box among Metro Denver that say they are seeing and hearing more about Colorado wines than they used to has increased to 48% in 2017, up from 44% in However, the percent of total is very low. Bottom 2 box those indicating they have not seen or heard more about Colo. Wines is quite high 24% in Bottom Box scores above 15% are noteworthy. 61 I see and hear more and more about Colorado wines than I used to Strongly Somewhat Somewhat Strongly disagree disagree Neutral agree agree Top 2 Box % 2017 TOTAL SAMPLE (n=500) 7% 18% 28% 32% 15% 47% 25% Bottom 2 Box % 2016 TOTAL SAMPLE (n=500) 8% 20% 28% 29% 15% 44% 27% 2017 Denver Metro (n=264) 7% 17% 28% 34% 14% 48% 24% 2016 Denver Metro (n=280) 8% 19% 29% 30% 14% 44% 27% 2017 Non Denver Metro (n=236) 8% 19% 28% 29% 16% 44% 27% 2016 Non Denver Metro (n=220) 8% 20% 27% 28% 17% 45% 28% Q. 20 What are your opinions and impressions of Colorado wines? Check below how much you agree or disagree with each statement.

62 Metro Denver Scorecard - over time: 62 As a percent of advertising and promotions, more is spent in the Denver metro area. Thus, tracking measures over time in Denver is of interest to the Colorado Wine board. 37% allocate 20%+ share of wine purchases to Colo. Wines up from 27% in 2016 significantly. The same number of Denver metro wine drinkers are interested in purchasing CO wine in the future 65% in 2017 as in % believe CO wine is priced fairly, up from 74% in Denver Metro 2017(n=264) 2016(n=280) Heard of CO wine - q 2 (% total) 78% 76% Consumed CO wine - q3 (% total) 62% 65% 20%+ share of purchase is CO wine - among Colo wine drinkers in Metro Denv. (n=163 in 2017; n=181 in 2016) q 17 37% 27% Have never purchased Colo. wine - Q 8 11% 6% Purchase Colo wine monthly, weekly - Q 8 20% 23% Future PI CO wine (Top 2 box 5 pt.. scale) Q 9 65% 65% Quality of CO wine (top 2 box 5 pt.. scale) q 10 49% 44% Quality improving - CO wine (T2 Box) Q 11 58% 57% Price/quality of CO Wine %priced fairly q 12 77% 74% Typically pay $ /bottle - q 5 24% 20% Typically pay $ /bottle - q 5 33% 38% Typically pay $ /bottle - Q 5 19% 20% Expect to pay CO wine q 13 $ % 21% Expect to pay CO wine q 13 $ % 40% Expect to pay CO wine q 13 $ % 20% I like to buy and support local growers T2 Box % q 20 76% 78% Restaurants that feature locally grown food should also feature local wines T2 Box %) q 20 75% 83% I like to experiment and taste different styles of wines from different regions 78% 80% I think the Colo wine industry has potential for future growth 76% 83% I am interested in visiting Co. wineries 75% 74% I believe there are quality wines made in Colorado 66% 71% I can easily find Colorado wines at my local wine shop or liquor store 27% 41% I hear more and more about Colo wines than I used to 48% 44% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

63 63 A closer look at Wine Drinkers of Colorado-produced wines

64 64 SCORESHEET Overview of Colorado wine drinkers: Vs. the total sample of wine drinkers, Colorado wine drinkers index higher on most key measures: Older, slightly more college graduates They consume and buy wine more frequently They are more interested in Colorado wine purchase in future They believe Colorado wines are good quality and improving in quality. They are on par with the total sample in terms of Colorado wines priced fairly. More agree (Top 2 Box) with Colo. Wine statements, indexing above the total (100+). Colorado-produced wine drinkers (n=313) % Index to total sample Older: Age % 114 More college grad & post grad 68% 103 More male vs. total 38% 109 Consume more wine weekly + 74% 110 Buy wine more frequent monthly + 26% 130 Future PI in Colo wine higher 77% T2 Box 113 Believe Colo wine is quality 62% T2 Box 122 Believe Colo wine improving in quality 67% T2 Box 116 Believe Colo wine priced fairly 73% 99 Never purchased Colo. Wine 5% 22 I like to buy and support local growers 82% T2 Box 109 Restaurants that feature locally grown food should also feature local 80% T2 Box 106 I like to experiment and taste different styles of wines from different regions 84% T2 Box 107 I think the Colo wine industry has potential for future growth 87% T2 Box 111 I am interested in visiting Co. wineries 82%T2 Box 108 I believe there are quality wines made in Colorado 82% T2 Box 117 I can easily find Colorado wines at my local wine shop or liquor store 41% T2 Box 124 I hear more and more about Colo wines than I used to 55% T2 Box 116

65 65 Demographics of Colorado wine drinkers: Age, Education & Gender In 2017, n=313 of the 500 sample drink Colorado produced wine. Thus, many of the data for Colorado wine drinkers reflect the total sample. Colorado wine drinkers skew slightly older and more educated than the total sample of all wine drinkers that reside in Colorado. Versus the total sample, Colorado wine drinkers skew slightly more female. AGE Total CO Wine Drinkers 2016 CO Wine Drinkers (n=500) (n=313) (n=314) % 33% 27% % 25% 28% Gender Total 2017 (n=500) 2017 CO Wine Drinkers (n=313) 2016 CO Wine Drinkers (n=314) Female 35% 38% 42% Male 65% 62% 58% % 42% 45% Education Total 2017 (n=500) 2017 CO Wine Drinkers (n=313) 2016 CO Wine Drinkers (n=314) Graduated high school 7% 7% 4% Some college 18% 16% 19% Graduated 2 year college 10% 9% 8% Graduated 4 year college 42% 43% 42% Post Graduate degree- masters or doctorate 23% 25% 27% Q. S1 What is your gender? Q. S4 In which range does your age fall? Q. S9. What is your highest level of education? (check one). Note not asked in 2015.

66 Colorado wine drinkers - Consumption: 66 Frequencies and Wine consumption geographies Respondents that drink Colorado wine consume wine slightly more frequently than the total sample. More of the Colorado wine drinkers also seem to be experimental, consuming wines from different regions vs. the total sample Total Sample 2017 CO Wine 2016 CO Wine Drinkers How often drink wine (n=500) Drinkers (n=313) (n=314) Daily 10% 12% 10% More than once a week but not every day 36% 40% 42% Once a week 23% 22% 20% 2-3 times/ mo. 19% 18% 21% Once a month 8% 7% 5% Special occasions/holidays 4% 2% 2% Areas where you have ever consumed wine 2017 Total Sample (n=500) 2017 CO Wine Drinkers (n=313) 2016 CO Wine Drinkers (n=314) California 88% 92% 95% Oregon 30% 38% 41% Colorado 63% 100% 100% NY State 16% 20% 20% Washington State 33% 40% 42% Argentina 40% 48% 50% Spain 54% 65% 59% France 67% 73% 79% Italy 72% 78% 81% Slovenia 3% 4% 3% Australia 49% 57% 61% Idaho 3% 4% 3% Q.S6 On average, how often do you drink wine? Q. 3 From which of the following geographic areas have you consumed wine? Check all that apply.

67 More frequent wine purchases: 67 Among drinkers of Colorado wine, purchase of Colorado wine continues to be slightly more frequent. 34% of Colo. Wine drinkers in 2017 purchase Colorado wine a few times a year vs. the total sample (27%). 26% of Colo. Wine drinkers purchase Colorado wine monthly or weekly vs. 20% for the total sample. As in 2016, purchase of California wines by Colorado-produced wine drinkers is quite high 83% % wine drinkers Have never purchased Less than once a year Around once a year A few times a year Monthly Weekly 2017 Colorado wine purchase total sample (n=500) 23% 16% 2017 Colorado wine purchase among Colo. wine drinkers (n=313) 5% 16% 2017 California wine purchase total sample (n=500) 4% 8% 2017 California wine among Colo. Wine drinkers (n=313) 3% 7% 14% 27% 14% 6% 18% 34% 19% 7% 7% 39% 32% 9% 7% 41% 33% 9% % wine drinkers Have never purchased Less than once a year Around once a year A few times a year Monthly Weekly Colorado wine purchase total sample (n=500) 21% 22% 14% 26% 13% 3% Colorado wine purchase among Colo. wine drinkers (n=314) 3% 24% 17% 36% 16% 3% California wine purchase total sample (n=500) 2% 4% 8% 45% 35% 7% California wine among Colo. Wine drinkers (n=314) 2% 4% 8% 45% 34% 7% Q. 8 How often do you typically purchase wine from each of the following geographic areas? (check one timeframe that describes you best)

68 More interest in future purchase of Colo. wine: Among drinkers of Colorado wine, future purchase of Colorado wine is higher (77% Top 2 box) vs. the total sample(68%). Since this is among Co. wine drinkers, this shows strong interest in repeat purchase. In comparison, 2017 California wine future purchase interest is significantly higher 88% T2 Box - among Colorado wine drinkers vs. Colorado wine purchase. The same trends exist in 2016, as well Future Purchase (5 pt. scale) Definitely not buy Probably not buy May or may not buy Probably will buy Definitely will buy Top 2 Box % 2017 Colorado wine total sample (n=500) 3% 6% 2017 Colorado wine among Colo. wine drinkers (n=313) 2% 5% 2017 California wine total sample (n=500) 1% 2% 2017 California wine among Colo. Wine drinkers (n=313) 0% 2% 23% 34% 34% 68% 16% 33% 44% 77% 11% 35% 51% 86% 9% 34% 55% 88% Future Purchase (5 pt. scale) Definitely not buy Probably not buy May or may not buy Probably will buy Definitely will buy Top 2 Box % Colorado wine total sample (n=500) 2% 6% 26% 34% 32% 66% Colorado wine among Colo. wine drinkers (n=314) 1% 5% 19% 35% 40% 75% California wine total sample (n=500) 0% 1% 10% 34% 55% 89% California wine among Colo. Wine drinkers (n=314) 0% 1% 9% 33% 56% 89% Q. 9. In the future, how interested are you in purchasing wine from each of the following geographic areas?

69 Colorado Wine Drinkers Share: Colorado wine as a percent of total wine bought, significantly increased among Colo. Wine drinkers in % indicate Colorado wine is 20% or more of total share of wine purchase vs. 27% in Percent of total Wine purchases among CO. wine drinkers More than 50% of my wine purchases are Colorado wine 25% to 49% of my wine purchases are Colorado wine 20% to 24% of my wine purchases are Colorado wine 10% to 19% of my wine purchases are Colorado wine 1% to 9% of my wine purchases are Colorado wine 2017 (n=313) 2016 (n=314) 9% 6% 15% 12% 16% 9% 17% 16% 27% 31% Less than 1% of my wine purchases are Colorado wine 13% 21% I do not purchase Colorado wine 4% 5% %+ 23% 18% 20%+ 39%* 27% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level. Q 17 What percentage of your overall wine purchases would you estimate is Colorado wine? Think about the percentage of your purchases in terms of volume. (Among those indicating they ve consumed Colorado wine Q. 3); question not asked in 2015 survey. *Rounding variance not additive at whole decimals.

70 Impressions of quality among drinkers of Colo. wine: Impressions of quality for both Colorado and California wines remained steady (2016 vs. 2017), among drinkers of Colorado wine. As in 2016, significantly more Colorado wine drinkers perceive CO wine to be above average in quality (62% top 2 box) vs. the total sample (51% top 2 box). However, among Colo. wine drinkers, California wine is believed to be high quality (82% top 2 box) vs. Colorado wine (62% top 2 box). 70 Quality Very poor quality Somewhat below average quality Average quality Somewhat above average quality Very high quality Top 2 box % 2017 Colorado wine total sample (n=500) 2017 Colorado wine among Colo. wine drinkers (n=313) 2017 California wine among Colo. Wine drinkers (n=313) 1% 7% 41% 34% 17% 51% 1% 4% 33% 39% 23% 62% 1% 1% 16% 37% 45% 82% Quality Colorado wine 2016 total sample (n=500) Colorado wine among Colo. wine drinkers (n=314) California wine among Colo. Wine drinkers (n=314) Very poor quality Somewhat below average quality Average quality Somewhat above average quality Very high quality Top 2 box % 1% 11% 42% 33% 13% 46% 1% 7% 35% 40% 17% 57% 0% 1% 19% 37% 43% 80% Q. 10 Select the statement that best describes your opinion and impression regarding the quality of wines from each of the following geographic areas. Check one in each row.

71 71 Changes in quality among drinkers of Colo. wine: In 2017, significantly more Colorado wine drinkers (67% top 2 box) believe it is improving vs. the total sample (58% top 2 box). The same trend holds true in Changes in quality Colorado wine total sample (n=500) 2017 Colorado wine among Colo. wine drinkers (n=313) Quality significantly declining Quality somewhat declining Quality staying about the same Quality somewhat improving Quality significantly improving Top 2 Box % 0% 2% 39% 41% 17% 58% 0% 2% 31% 44% 23% 67% Changes in quality Colorado wine 2016 total sample (n=500) Colorado wine among Colo. wine drinkers (n=314) Quality significantly declining Quality somewhat declining Quality staying about the same Quality somewhat improving Quality significantly improving Top 2 Box % 0% 3% 40% 43% 14% 57% 0% 2% 34% 46% 18% 64% Q. 11 Select the statement that best describes your opinion and impression of the change in quality of wines over time from each of the following geographic areas. (check one in each row)

72 Impressions of price among drinkers of Colo. Wine: In both 2017 and 2016, the majority of wine drinkers believe Colorado wine is fairly priced. 72 Value Colorado wine total sample (n=500) 2017 Colorado wine among Colo. wine drinkers (n=313) Extremely underpriced Somewhat underpriced Fairly priced Somewhat overpriced Extremely overpriced 1% 4% 74% 19% 3% 0% 3% 73% 21% 3% Value Extremely underpriced Somewhat underpriced Fairly priced Somewhat overpriced Extremely overpriced Colorado wine 2016 total sample (n=500) 0% 3% 73% 21% 3% Colorado wine among Colo. wine drinkers (n=314) 0% 1% 70% 26% 3% Q. 12 Select the statement that best describes your opinion and impression regarding the pricing for the quality of wines from each of the following geographic areas. Check one in each row.

73 Price expectations for Colo. Wine: 73 The bulk of respondents who drink Colorado-produced wine in both 2017 and 2016 expect to pay $9 - $19.99 per bottle. Over a third (35%) believe $12 - $14.99 is the sweet spot for pricing. This is similar in Expect to Pay for Colorado wine Colorado wine total sample (n=500) 2017 Colorado wine among Colo. wine drinkers (n=313) Less than $9 per bottle $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle 9% 24% 34% 22% 7% 3% 0% 6% 21% 35% 25% 10% 4% 1% Expect to Pay for Colorado wine Colorado wine 2016 total sample (n=500) Colorado wine among Colo. wine drinkers (n=314) Less than $9 per bottle $9 - $11.99 per bottle $12 - $14.99 per bottle $15 - $19.99 per bottle $20 - $24.99 per bottle $25 - $39.99 per bottle $40 or more per bottle 6% 22% 35% 26% 8% 2% 1% 5% 20% 36% 27% 10% 2% 0% Q. 13 What do you expect to spend at a wine shop or liquor store for a typical bottle (750 ml) of wine from each of the following geographic areas? Check one in each row. COLORADO

74 Where expect to buy Colo. wines: When comparing where respondents (who drink Colo. Wine) expect to purchase Colorado-produced wine, the largest share of purchase locations in 2017 continues to be at Neighborhood liquor stores (73% agree). 67% expect to buy Colorado wine at winery/wine tasting rooms and 63% at wine specialty shops. However, Colorado wine drinkers share of purchases of Colorado wine is relatively low for wine specialty shops (8% share) and restaurants (11% share). When purchasing any brand of wine, Colorado wine drinkers buy 1/3 of all wine from Neighborhood liquor stores & 22% of all wine from Large, volume discount stores. Consumers expect to buy Colo. Wine at wineries and wine specialty shops, but not much share of wine is bought from these retail outlets. 74 CO wine consumers Where expect to buy CO Wine (% agree) Where actually buy CO Wine (share %) Where actually buy ANY wine (share %) 2017 (n=314) 2016 (n=313) 2017 (n=314) 2016 (n=313) 2017 (n=314) Neighborhood liquor store 73% 77% 31% 36% 33% Winery or wine tasting room 67% 70% 17% 13% 6% Wine specialty shop 63% 68% 8% 8% 8% Restaurants 52% 53% 11% 10% 12% Large, volume discount liquor store 49% 57% 17% 16% 22% Farmer's markets 42% 40% 3% 3% 1% Bars 36% 37% 4% 4% 6% Grocery store that sells wine 32% 31% 5% 4% 5% Internet 20% 25% 2% 1% 5% At a sport or concert venue 13% 15% 1% 0% 1% Q. 16 Where would you expect to buy Colorado wines? (check all that apply)

75 Colo. Wine drinker Scorecard - over time: Colorado wine drinkers increased to 26%, purchasing Colorado wine either monthly or weekly up from 19% in % believe Colorado wine is priced fairly. As with other subgroups, a low 41% indicate they can easily find Colo. Wines down significantly from 55% in Statements are positive for 80%+ of many Colo. Wine drinkers (n=313) Drinkers of Colorado Wines q 3 (n=314) Heard of CO wine - q 2 (% total) 100% 100% Consumed CO wine - q3 (% total) 100% 100% Have never purchased CO wine - Q 8 5% 3% Purchase CO wine monthly, weekly - Q 8 26% 19% Future PI CO wine (Top 2 box 5 pt.. scale) Q 9 77% 75% Quality of CO wine (top 2 box 5 pt.. scale) q 10 62% 57% Quality improving - CO wine (T2 Box) Q 11 67% 64% Price/quality of CO Wine %priced fairly q 12 73% 70% Typically pay $ /bottle - q 5 25% 23% Typically pay $ /bottle - q 5 33% 35% Typically pay $ /bottle - Q 5 18% 23% Expect to pay CO wine q 13 $ % 20% Expect to pay CO wine q 13 $ % 36% Expect to pay CO wine q 13 $ % 27% I like to buy and support local growers % T 2 Box Q. 20) 82% 83% Restaurants that feature locally grown food should also feature local wines % T 2 Box Q. 20) 80% 85% I like to experiment and taste different styles of wines from different regions% T 2 Box Q. 20) 84% 84% I think the Colo wine industry has potential for future growth% T 2 Box Q. 20) 87% 90% I am interested in visiting Co. wineries% T 2 Box Q. 20) 82% 80% I believe there are quality wines made in Colorado% T 2 Box Q. 20) 82% 81% I can easily find Colorado wines at my local wine shop or liquor store% T 2 Box Q. 20) 41% 55% I hear more and more about Colo wines than I used to % T 2 Box Q. 20) 55% 52% NOTE: significantly higher differences noted in Bold red font at the 95% confidence level. 75

76 76 A closer look at Frequent wine drinkers - Weekly and more often

77 SCORESHEET Overview of Frequent (weekly+) wine drinkers: 77 Vs. the total sample of wine drinkers, More Frequent (weekly+) wine drinkers are: Slightly younger, college educated. Weekly + drinkers rate Colorado wines relatively higher on quality scores vs. the total sample. 82% are interested in visiting wineries (index 107). Like other subgroups, a smaller percent (35%) indicate they can easily find Colo wines at their local wine shop. 20% have never purchased a Colo. Wine lower than the total sample, index % of frequent wine drinkers (weekly+) allocate 20% or more to Colorado wine purchases; slightly less than all Colorado wine purchasers (39%). Frequent (Weekly +) wine drinkers (n=346) % Index to total sample Slightly younger: Age % 104 More college grad & post grad 71% 109 More male vs. total 38% 109 Heard of Colo wines - awareness 78% 103 Consumed Colo wines 66% 106 Purchase Colo wines monthly, weekly 25% %+ share of wine purchases allocated to Colo. wines 38% 97 Future PI in Colo wine higher 69% T2 Box 102 Believe Colo wine is quality 53% T2 Box 104 Believe Colo wine improving in quality 62% T2 Box 106 Believe Colo wine priced fairly 71% 96 Never purchased Colo. Wine 20% 85 I like to buy and support local growers 81% T2 Box 108 Restaurants that feature locally grown food should also feature local 77% T2 Box 101 I like to experiment and taste different styles of wines from different regions 78% T2 Box 100 I think the Colo wine industry has potential for future growth 78% T2 Box 100 I am interested in visiting Co. wineries 82%T2 Box 107 I believe there are quality wines made in Colorado 73% T2 Box 105 I can easily find Colorado wines at my local wine shop or liquor store 35% T2 Box 105 I hear more and more about Colo wines than I used to 53% T2 Box 112

78 Weekly+ wine drinkers - Consumption: 78 They are xperimental & engaged in wine category - More of the Weekly+ wine drinkers consume wines from different regions vs. the total sample. Vs. 2016, Weekly + wine drinkers remained fairly constant during 2017, in terms of the percent penetration of consumption by geography. 78% of weekly + wine drinkers consumed wine from Italy, up significantly from 72% in Areas where you have ever consumed wine q Total Sample (n=500) 2017 Weekly + (n=346) 2016 Weekly + (n=334) California 88% 89% 93% Italy 72% 78% 78% France 67% 72% 75% Colorado 63% 66% 67% Spain 54% 60% 59% Australia 49% 53% 51% Argentina 40% 46% 46% Washington State 33% 35% 39% Oregon 30% 34% 38% NY State 16% 19% 16% Slovenia 3% 4% 2% Idaho 3% 4% 2% Q. 3 From which of the following geographic areas have you consumed wine? Check all that apply. NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

79 Weekly+ wine occasions: 79 The percent of people consuming wine by different occasions remained constant for most; the exception is Home Entertaining, which saw significantly fewer weekly + drinkers consuming wine in 2017 (69% - weekly +) vs (79% - weekly+). As expected, more weekly+ wine drinkers participate in wine occasions vs. less frequent drinkers. Top occasions for wine consumption Frequent wine drinkers Home relaxing Holiday / special occasion Vacation Restaurant Home entertaining 2017 Weekly+ Wine drinkers (n=346) 80% 80% 72% 77% 69% 2016 Weekly+ Wine drinkers (n=334) 80% 87% 77% 80% 79% Top occasions for wine consumption Less frequent wine drinkers Home relaxing Holiday / special occasion Vacation Restaurant Home entertaining 2017 Less than weekly (n=154) 62% 73% 50% 67% 51% Less than weekly (n=166) 65% 78% 58% 75% 65% Q. 7 At which of the following occasions have you consumed wine over the last year or so? NOTE: significantly higher differences noted in Bold red font at the 95% confidence level.

80 Impressions of quality among weekly+ wine drinkers: Slightly more weekly+ wine drinkers perceive Colorado wine to be somewhat or very high quality (53% Top 2 box) vs. the less frequent, less than weekly wine drinkers (45%). Significantly more weekly+ wine drinkers believe Colorado wine is very high quality (20%) vs. less frequent wine drinkers (9%). A very large percent of both groups say Colorado wine quality is average 39% among 2017 weekly + drinkers & 45% among less frequent drinkers. 80 Quality of Colorado Wine (2017 vs. 2016) (among weekly + wine drinkers) T2 Box % 2017 weekly+ wine drinkers (n=346) 1% 7% 39% 33% [VALUE] 53% 2016 weekly+ wine drinkers (n=334) 1% 10% 40% 33% 16% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very poor quality Somewhat below average quality Average quality Somewhat above average quality Very high quality Quality of Colorado Wine (2017 vs. 2016) (among less than weekly wine drinkers) T2 Box % 2017 less than weekly wine drinkers (n=154) 3% 7% 45% 36% 9% 45% 2016 less than weekly wine drinkers (n=166) 2% 13% 45% 31% 9% 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very poor quality Somewhat below average quality Average quality Somewhat above average quality Very high quality Q. 10 Select the statement that best describes your opinion and impression regarding the quality of wines from each of the following geographic areas. Colo.

81 Changes in quality among weekly+ wine drinkers: Slightly more weekly+ wine drinkers in 2017 (vs. 2016) perceive Colorado wine to be somewhat or significantly improving in quality (62% vs. 57% on a T2 Box basis). Versus less than weekly wine drinkers, significantly more frequent/ weekly + drinkers believe Colo. Wine to be improving - 62% T2 box in 2017 vs. 50% in Among less frequent wine drinkers; less than weekly, fewer (50% Top 2 box in 2017) believe Colo. Wine to be improving in quality vs (57%). 81 Changes in Quality of Colo. wine (among weekly+ wine drinkers) T2 Box % 2017 weekly + drinkers.3% 2% 35% 42% 20% 62% 2016 weekly + wine drinkers 0% 2% 41% 41% 16% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% significantly declining somewhat declining staying the same somewhat improving significantly improving Changes in Quality of Colo. wine (among less than weekly wine drinkers) T2 Box % 2017 less than weekly wine drinkers 0% 2% 48% 40% 10% 50% 2016 less than weekly wine drinkers 1% 4% 37% 47% 10% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% significantly declining somewhat declining staying the same somewhat improving significantly improving Q. 11 Select the statement that best describes your opinion and impression of the change in quality of wines over time from each of the following geographic areas. (check one in each row)

82 More weekly wine drinkers purchase Colorado wine: Weekly wine drinkers in 2017 are buying Colorado wines more frequently. 24% of 2017 weekly + wine drinkers purchase wine from Colorado weekly or monthly. This is significantly higher than 19% combined in % have never purchased Colorado wine slightly up from 2016 (18%). Less frequent (less than weekly) wine drinkers purchase Colorado wines with similar frequency to How often buy Colo. Wine (2017 vs. 2016) (among weekly + wine drinkers) How often buy Colo. Wine (2017 vs. 2016) (among less than weekly wine drinkers) Weekly 4% 8% Weekly 1% 1% Monthly 16% 15% Monthly 9% 9% A few times a year 28% 28% A few times a year 25% 24% Around once a year 13% 15% Around once a year 13% 16% Less than once a year 14% 20% Less than once a year 19% 26% 20% Have never purchased 18% 0% 5% 10% 15% 20% 25% 30% 2017 weekly+ wine drinkers (n=346) 2016 weekly+ wine drinkers (n=334) 30% Have never purchased 28% 0% 5% 10% 15% 20% 25% 30% 35% 2017 less than weekly wine drinkers (n=154) 2016 less than weekly wine drinkers (n=166) Q. 8 How often do you typically purchase wine from each of the following geographic areas? (check one timeframe that describes you best)