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1 CONSUMER INTELLIGENCE AND INSIGHTS ON THE SA WINE INDUSTRY 31 MAY

2 COMPANY OVERVIEW We are MARKET RESEARCH AND CONSUMER INTELLIGENCE EXPERTS who ensure you make smarter, more-profitable decisions by optimising your marketing ROI imperative when economic conditions are challenging OUR MARKET RESEARCH SOLUTIONS HELP TO: CREATE CONSUMER-FOCUSED STRATEGY UNDERSTAND MARKET & CONSUMER NEEDS DEVELOP TARGETED PRODUCTS DELIVER EFFECTIVE MARKETING SUPPORT DECISION-MAKING REDUCE INVESTMENT RISK IMPROVE ACCOUNTABILITY 2

3 OUR EXPERIENCE We are a Proudly South African company that has provided market research solutions and consumer intelligence reports to global brands. 3

4 ANALYTIX OVERVIEW Our expertise is focused on the planning phases of the marketing cycle which helps you make smarter, more-profitable decisions with reduced risk. We specialize in Quantitative Surveys/Analysis (WHO, WHAT) and Ethnographic Research (HOW, WHY?) We have access to extensive databases in South Africa and Nigeria and are specialists at creating consumer intelligence reports that are sold globally. Bloomberg have recently concluded a partnership with us to market and distribute all our Intelligence Reports to their 300,000 global subscribers. We are a Proudly South African-accredited company which ensures quality assurance through tried-and-tested processes Companies benefit from our level 3 B-BBEE certification which allows for procurement recognition of 110% 4

5 OUR APPROACH IS CONSUMER-CENTRICCENTRIC UNDERSTAND BUSINESS OBJECTIVE DESIGN & CONDUCT RESEARCH OUR UNIQUE APPROACH: INTEGRATED AND HOLISTIC INTELLIGENCE BUSINESS AND MARKETING PLANNING FOCUS TRANSLATE INTELLIGENCE INTO STRATEGY AND ACTIONS VOLUMES AMPS INTERNAL DATA CUSTOMER MEDIA BRAND INTEGRATE AND ANALYSE ALL PUBLIC AND INTERNAL DATA AVAILABLE CENSUS MACRO-ECONOMIC INDUSTRY MONITORS EXTERNAL DATA DATABASE RAMS, TAMS, LSM PRESENT HOLISTIC BUSINESS SOLUTION 5

6 EXAMPLES OF QUESTIONS WE ANSWER Which consumer and product segments are growing? What are their needs and unmet needs? Where should you invest your money over the next 5 years? What is the feasibility of launching a new brand, product or service and what should your ideal value proposition be? What does the market think of your brand and competitors? Who are your target market? What media are your target market consuming? How do you reach them most effectively and efficiently? Did you achieve your strategic and tactical objectives? What was the ROI on your marketing spend? 6

7 360 CONSUMER ARCHETYPE PROFILING We conduct ethnographic market research (in-home discussions, shadowing, collage and diary exercises.) that provides you with a 360 profile of your consumer to develop new product/value propositions and successful marketing and communication strategy. This approach helps to unearth in-depth consumer wants that is often beneath the more rational consumer behaviour feedback provided by almost all research methodologies.

8 DIPSTICK CONSUMER RESEARCH: AWARENESS, PERCEPTIONS AND USAGE Dipstick consumer research can be used on an ad-hoc basis to get feedback on ANY business questions e.g. awareness, advertising feedback, usage, pricing, competitor perceptions, media consumption. We conduct surveys among a small but robust sample to provide an affordable solution that allows for rapid turnaround. SPONTANEOUS AWARENESS On-line surveys AIDED AWARENESS Telephonic Surveys PERCEPTIONS Face to Face/ Vox Pop USAGE

9 INTELLIGENCE REPORTS We have more than 40 pre-packaged consumer intelligence reports that are created by expert analysts - saving your valuable time and resources. We also provide customised analysis and intelligence reports based on your specific information needs regarding markets or consumer segments.

10 EXAMPLE OF ANALYSIS AND REPORT Reports filled with charts, graphs, tables and insights 10

11 SELECTED SA WINE/BRANDY CONSUMER FINDINGS

12 BOTTLED WINE AND BRANDY: CONSUMER TRENDS Total SA adult population (16+ years) 30,655,696 30,903,002 31,109,074 31,305,016 32, 498, ,141,487 Bottled Wine consumers 1,871,161 2,055,546 2,089,911 2,231,898 2,417,961 2,993,857 % of total adult 6.1% 6.7% 6.7% 7.1% 7.4% 9.0% The number of Wine consumers has increased from 1.87 million in 2005 to almost 3 million in 2010, an increase of just over 1 million consumers. The proportion of Bottled Wine consumers has increased significantly between 2009 and Total SA adult population (16+ years) 30,655,696 30,903,002 31,109,074 31,305,016 32, 498, ,141,487 Total Brandy consumers 3,676,161 3,983,019 4,315,259 4,058,813 3,960,362 3,859,396 % of total adult 12.0% 12.9% 13.9% 13.0% 12.2% 11.6% There has been a decline in the number of Brandy consumers from a high of 4.3 million (13.9% of adults) in 2007 to just over 3.8 million in 2010 (11.6% of adults). Stronger branding and marketing of the Brandy category may be necessary to appeal to a wider consumer base and encourage people to start drinking Brandy (again) rather than competitor categories like Whisky. Source: AMPS 2010B Sample Sizes : (Total); 2768 (Bottled Wine consumed in past 7 days) Note: all figures based on weighted numbers 12

13 LSM GROUP PROFILE LSM profile of consumers of brandy and bottled wine 100% 80% 15% 14% 19% 19% 26% 20% LSM % 40% 37% 42% 36% LSM 7-8 LSM 5-6 LSM % 29% 25% 18% 0% Total Consumers of brandy (past 7 days) Consumers of bottled wine (past 7 days) Frequency LSM 1-4 LSM 5-6 LSM 7-8 LSM 9-10 Total 9,890,145 12,527,080 6,450,923 5,151,512 Consumers of Brandy (past 7 days) 954,467 1,620, , ,934 Consumers of Bottled Wine (past 7 days) 530,548 1,080, , ,681 In 2010, 26% of Bottled Wine consumers lived in LSM 9-10 households compared to 14% of Brandy consumers. Only 18% of Bottled Wine consumers lived in LSM 1-4 compared to the 30% among the total SA population. Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 13

14 GENDER PROFILE Gender profile of consumers of brandy and bottled wine 100% 80% 53% 30% 50% 60% Female 40% 47% 70% 50% Male 20% 0% Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7 days) Frequency Male Female Total 16,113,054 17,906,605 Consumers of Brandy (past 7 days) 2,707,455 1,151,941 Consumers of Bottled Wine (past 7 days) 1,494,908 1,498,949 In 2010, the gender split for consumers of Bottled Wine was equal at 50%, similar to the total SA population. Among Brandy consumers, 70% were male. Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 14

15 AGE PROFILE Age profile of consumers of brandy and bottled wine 100% 80% 60% 40% 20% 11% 7% 10% 10% 11% 11% 15% 14% 15% 19% 22% 21% 13% 18% 18% 60+ Years Years Years Years Years 14% 17% 13% Years 15% 12% 12% Years 0% Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7 days) Frequency Total 5,132,944 4,898,527 4,420,522 6,559,332 5,248,618 3,678,657 3,901,899 Consumers of Brandy (P7 days) 469, , , , , , ,693 Consumers of Bottled Wine (P7 days) 348, , , , , , ,989 There was a significantly higher proportion of Brandy and Bottled Wine consumers aged years (18%) compared to the total SA population (13%). Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 15

16 POPULATION GROUP PROFILE Population group profile of consumers of brandy and bottled wine 100% 80% 13% 16% 3% 2% 9% 8% 28% 1% 8% White 60% Indian 40% 75% 74% 63% Coloured Black 20% 0% Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7 days) Frequency Black Coloured Indian White Total 25,613,102 2,941, ,204 4,537,658 Consumers of Brandy (P7 days) 2,864, ,546 59, ,439 Consumers of Bottled Wine (P7 days) 1,891, ,145 35, ,185 74% of Brandy consumers were Black compared to 63% among Bottled Wine consumers. Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 16

17 HOME LANGUAGE PROFILE Language profile of consumers of brandy and bottled wine 100% 80% 60% 40% 20% 0% 3% 3% 2% 1% 4% 2% 1% 3% 2% 1% 10% 11% 10% 8% 9% 10% 9% 7% 8% 8% 15% 14% 18% 22% 20% 17% 12% 8% 15% 18% 22% Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7 days) Ndebele Swazi Venda Tsonga Tswana South Sotho North Sotho Xhosa Zulu English Afrikaans Frequency Afrikaans English N.Sotho Ndebele S.Sotho Swazi Tsonga Tswana Venda Xhosa Zulu Total 4,982,239 4,056,543 7,544,640 5,224,971 2,958,011 2,718,172 3,330,760 1,038, , , ,312 Consumers of Brandy (past 7 days) 707, , , , , , , ,587 78,152 72,675 51,837 Consumers of Bottled Wine (past 7 days) 652, , , , , , ,731 95,471 53,444 33,304 35,408 In 2010, 22% of consumers of Bottled Wine spoke Afrikaans as their home language compared to 15% of the SA population. 17% of consumers of Bottled Wine spoke English as their home language and 18% spoke Zulu. Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 17

18 PROVINCE PROFILE Provincial profile of consumers of brandy and bottled wine 100% 80% 60% 40% 20% 0% 8% 10% 9% 20% 11% 7% 10% 7% 21% 17% 23% 28% 10% 5% 18% 14% 11% 8% 6% 9% 8% 2% 2% 2% 10% 12% 12% Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7 days) North-West Gauteng Limpopo Mpumalanga Kwazulu-Natal Eastern Cape Free State Northern Cape Western Cape Frequency Western Cape Northern Cape Free State Eastern Cape Kwazulu-Natal Mpumalanga Limpopo Gauteng North-West Total 3,523, ,888 2,210,093 4,733,845 7,148,459 2,339,595 3,752,138 6,882,529 2,711,238 Consumers of Brandy (past 7 days) 448,978 87, , , , , , , ,879 Consumers of Bottled Wine (past 7 days) 363,409 65, , , , , , , ,534 The highest proportion of Brandy and Bottled Wine consumers lived in Gauteng (23%). Source: AMPS 2010B Sample Sizes : (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days) Note: all figures based on weighted numbers 18

19 CONSUMER TRENDS : 2010: POPULATION GROUP Bottled Wine Population Group Profile: % 80% 53% 55% 56% 61% 63% 60% Black Coloured 40% 8% 6% 1% 2% 9% 1% 8% 1% 8% 1% Indian White 20% 37% 37% 33% 31% 28% 0% There has been strong growth in the proportion of Black consumers Bottled Wine, from 53% in 2006 to 63% in The proportion of White consumers Bottled Wine declined from 37% in 2006 to 28% in Source: AMPS B RA (Adults 16+ years old) Sample Sizes : AMPS 2006 (24 813); AMPS 2007 (21 068), AMPS 2008 (21 083); AMPS 2009 (25 170); AMPS 2010 (25 170) Note: all figures based on weighted numbers 19

20 QUESTIONS THAT STILL NEED TO BE ANSWERED 20

21 IMPORTANT QUESTIONS WE STILL NEED TO ANSWER How do we responsibly increase the number of wine and brandy consumers in South Africa? Which consumer and product segments are growing? Why do consumers prefer a certain alcoholic beverage category? For which occasions do they prefer certain categories? Why? What are the emotional benefits (image) derived from drinking a certain alcoholic beverage? How do we position the Wine and Brandy categories to appeal to and target new consumer segments? 21

22 CONTACT DETAILS

23 CONTACT DETAILS CAPE TOWN Telephone: +27 (0) Fax: +27 (0) JOHANNESBURG Telephone: +27 (0) Fax: +27 (0) Physical Address: Unit B16 Century Square Heron Crescent Century City 7441 Cape Town Western Cape South Africa Physical Address: Country Club Estate Building 2 Woodlands Drive, Woodmead 2052 Johannesburg Gauteng South Africa Web Address:

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