Francis Coppola Winery
Coppola Diamond Collection
Beginning it was Brand Launched Diamond Series 1996 No vineyard land or winery to process fruit Supply was Bulk Wine Contracts Capital focus was directed to sales and marketing 80% On-premise 20% Off-premise sales Wine Industry much different 20 years ago 1800 Total U.S Wineries 3000 Wholesalers
What Difference 20 Years Makes 1995 2015 1800 U.S Wineries 8200 U.S Wineries 3000 Distributors 675 Distributors
Industry Landscape Evolving U.S. Supreme Court: Granholm v. Heald (2005) States cannot permit in-state wineries directly to ship alcohol to in-state consumers but restrict the ability of out-of-state wineries to do so. Significant increase in wineries after Supreme Court decision Wholesaler consolidation Global competition Private Label
Changing with the Market 2006 purchased Chateau Souverain- Geyserville 2010 open new hospitality concept Swimming pool, 2 restaurants 200,000 guests annually Take advantage Direct to Consumer business 2009 purchase first netting machine for Claret Yes they are expensive 2013 purchase of Geyser Peak Winery with Vineyards Opened 3 rd restaurant 2016 2017 purchase 100 acres on Pine Mountain
Who s buying our wines? Millennials, defined as the 79 million Americans ages 21 to 38, drank 159.6 million cases of wine in 2015 (42% of all wine in U.S) an average of two cases per person. 17% shelled out over $20 for a bottle of wine over last month. Among all age groups that was only 10% Baby Boomers- 38% Generation X- 20% Soon to be Generation Z Digital Marketing
Current trends to impact Land/Brand DTC grew 17.1% in 2016 and over 5M cases shipped 2.33B + 18.5% Convenience of online shopping Less impulse buys at grocery because traffic is down Home alcohol delivery (Drizly, Saucey, Minibar) Traditional On Premise under pressure Take Out on the rise More Off Premise In Store eating/drinking Private Label Less displays for winery brands Spirits and Craft Beers on the rise Alternative Packaging Cannabis
Land or Brand? DTC on the rise Makes the case for Land, Winery experiences Regulations and permit process has made it difficult to plant or build Vineyard land prices continue to rise More wineries looking to Oregon/Washington Wholesale market becoming more challenging to launch brands Short term wine/grape contracts might be good option Retailers build their brands thus creates more uncertainty Look to Millennials and Generation Z for change in buying habits Digital marketing Alternative packaging Socially responsible brands
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Family-owned and operated in the heart of Napa Valley since 1948, Trinchero Family Estates is a worldwide leader in the wine & spirits industry.
An American Success Story T R I N C H E R O H I S T O R Y The Trinchero family arrives in St. Helena, has first harvest at Sutter Home. Trincheros start purchasing vineyards in Napa and Sacramento. Trincheros own over 5,000 acres in California. Joel Gott partnership created. Purchase of Trinchero Central Coast facility in Santa Barbara, 46 acres. 70 th anniversary of the first harvest for the Trinchero family in Napa Valley. 1948 1971 1975 1981 1987 1998 2004 2009 2015 2016 2016 2017 2018 Sutter Home releases their 1968 Zinfandel, from Amador fruit. Bob Sr. experiences a stuck fermentation, invents the Original White Zinfandel. Sutter Home Zinfandel becomes #1 selling premium wine in United States. TFE purchases Folie à Deux winery, includes 22 acres that is now Trinchero Napa Valley estate and winery. Westside Lodi facility complete, 500 acres. Purchase of Ziata and Mason/Pomelo brands, joint venture established with Neyers. Trincheros own over 9,000 acres in California.
World-Class Infrastructure: Winery Facilities WESTSIDE FACILITY IN LODI: 500 acre facility 644,000 square foot bottling plant 100,000 tons of grapes crushed 55 mil gallons stainless steel storage 3 bottling lines w/ 25 million-case capacity TRINCHERO CENTRAL COAST: 90,000 square foot facility increases roduction capability for desirable Central Coast AVAs MAIN STREET WINEMAKERS STUDIO: Remodel to create luxury-focused winemaking facility in the heart of Napa Valley
Continued Investment in Vineyard Assets Lake Sonoma Napa San Joaquin Santa Barbara 270 + Acres 180 + Acres 280 + Acres 430 + Acres 580 + Acres Colusa Yolo Sacramento Amador Total: 1,600 + Acres 1,700 + Acres 3,900 + Acres 480 + Acres 9,420 + Acres
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