Marketing Activities

and future generations –These are Kendall-Jackson Family Values. The Jackson family has been a leader in California winemaking since 1982. Our family takes pride not just for what we put into the bottle, but for everything we do to get it there. Commitment to quality is paramount every step of the way, from the grapes we grow to the barrels we use. We work every day to ensure the health of the land, our community, and future generations –These are Kendall-Jackson Family Values.

91 91 #1 Vintner’s Reserve Chardonnay IRI – 25 Years Running! March 2017 91 July 2017 #1 K-J Vintner’s Reserve (VR) Chardonnay is a force. We continue to grow our other varietals and tiers while keeping K-J VR CH as the main overall priority. IRI – 25 Years Running!

(21-34)= 28% (35-44)= 26% (45-54)= 23% (55-69)= 23% KEY CONSUMER TARGETS Bring in the Mature Millennial (21-35 new wine drinker) Engage Core K-J Consumer Target (45-69 core wine consumer) (21-34)= 28% (35-44)= 26% (45-54)= 23% (55-69)= 23% “This is the wine I buy most often” + “I buy this wine regularly” 31% In FY14 Takeaway: K-J’s consumers are diverse in age. Marketing to leverage K-J’s diverse portfolio and adjust tone and messaging within each tier where appropriate.

Relevance & Recommendation Consumer Research Continues to lead the category on Meaningful Salience is a secondary driver, differentiation does not influence brand power Key is Relevance/Recommendation driven by Heritage & Quality Heritage is strongest path driven by handcrafted, family owned and attractive label Quality: Wines that taste better than other brands; particularly white WATCH OUTS: Softening of ‘Good Choice at Restaurants’ and ‘Red Wine Taste’ Meaningful SALIENT Heritage: Respected wine region Own vineyards Relevance & Recommendation QUALITY White Wine Corporate responsibility Handcrafted Family owned Attractive label Over the past 4 years we have participated in a study with Millward Brown to track our Brand Power. K-J continues to lead the category as most Meaningful winery vs. competitive set Two roads to Variety/Quality –Strongest is through Heritage, which is influenced by a combination of Handcrafted, Family-Owned, and Attractive Label (perceptions of which the “Values” campaign is touching on). The other road is product-driven; having wines that taste better than other brands. Source: Millward Brown, 2017

“Kendall-Jackson Family Values” Core Brand Message POSITIONING Kendall-Jackson is the benchmark of excellence and integrity in family-owned California winemaking. We are trusted by multiple generations of wine enthusiasts and novices alike for crafting consistent, high-quality wines from the best, marine influenced and high elevation vineyard sites, which produce grapes with rich flavors and unique character. Before winemakers, we consider ourselves Farmers First, and work tirelessly to protect the health of our land for future generations. TARGET CONSUMER Engage core K-J established consumer, while attracting new consumers to the brand. CORE MESSAGE The Jackson family became a leader in American winemaking, not just for what they put in the bottle, but for everything they do to get it there. Family Values campaign comes in the form of point-of-sale marketing (in retail) and print ads. Full campaign statement: The Jackson family has been a leader in California winemaking since 1982. Our family takes pride not just for what we put into the bottle, but for everything we do to get it there. Commitment to quality is paramount every step of the way, from the grapes we grow to the barrels we use. We work every day to ensure the health of the land, our community, and future generations –These are Kendall-Jackson Family Values. FY18 PLATFORM “Kendall-Jackson Family Values” Family First Integrity Stewardship Quality Heritage

Received highest feedback from consumer survey in all Family-Value ads. Heritage

Stewardship

Holiday Family First

Back label copy Back label copy reflects the Family Values as well.

FY18: Diverse Partnerships Bring in the Mature Millennial (21-35 new wine drinker) Engage Core K-J Consumer Target (45-69 core wine consumer) Quality Family Product PRINT & DIGITAL Quality Family Heritage VIDEO To tell the KJ Family-Values story, we are focusing on talking to two groups. Engaging our core consumer, the baby boomer and reaching new consumers and millennials. We know consumers need to engage with our messaging a minimum of three times before it resonates – and we want to reach them READ, WATCH, and LISTEN We’ve developed diverse partnerships that have unique outlets that will engage with both consumer groups and will act as tangible tools for our sales team to drive conversation with buyers. Read: Print & Digital – FWx and Food & Wine magazines driving our quality and product story Watch: We have incredible video assets, allowing us to invest more in working media dollars vs. creation, and will drive quality, family, and heritage via In-Flight media on Virigin America and American Airlines And lastly, we know how powerful radio; In the past, we’ve seen double digit growth in markets where we’ve run radio spots. And we know how powerful our Family and Sustainability messaging are, thus we’re proposing partnerships with NPR radio and podcasts Stewardship Family RADIO & PODCAST

Vintner’s Reserve New Packaging FY18: New packaging rollout on VR collection, leveraging light-weight glass to enhance hand-crafted, family-owned, and stewardship cues Vintner’s Reserve New Packaging Light-Weight glass CCSW Bordeaux Reds: Sonoma / Mendocino Trade tools: Two bottle box to key buyers In-store POS PR & Social activations

FY17: AVANT Powered by Wind Campaign Sales Tools Drive in store and in restaurant purchase of K-J AVANT. Elements: Glorifier, Neckers, bottle toppers, Table Tents, coasters

Also produced “case wraps” that highlight our water savings – these wrap around a stack of cases in the store to create a more unified display.

October Conference Challenge Collaboration with Net Impact Business School Community K-J sustainability business challenge: Big picture K-J: What’s working, what’s not Marketing plan Prize: Internship Opportunity PR around partnership, finalist teams & implementation Net Impact: Organization dedicated to preparing grad students and professionals for “impact” careers that drive social and environmental change 70% students, 30% professionals Keynote remarks Breakout session Expo booth Wine sponsorship

Wine Collections Jackson Estate Grand Reserve Vintner’s Reserve K-J AVANT A tribute to our family’s estate vineyards, showcasing California’s most prestigious appellations A unique expression of regional blends, this refined selection, of wines is chosen by our winemaking team to showcase some of our best growing regions Our seminal collection of wines, highlighting the complex fruit flavors from the best of California’s marine influenced vineyards A fresh take on California winemaking, a style of wines crafted to be expressive, and vibrant for a youthful consumer