1. © 2015 Ipsos. 1 1 1 1 1 PASSION, PALATES & PURCHASING THE LIFESTYLES, MINDSETS AND EVOLVING TASTES OF AFFLUENT WINE CONSUMERS

2. 2 Recent Trends: Affluents Rising Up the Hierarchy of Needs Self-actualizing Esteem Social Security Physiological Maslow’s hierarchy of needs (1943)  Meaning  Bucket lists  Hobbies & interests  Leisure/spare time  Entertainment  Experiences  Luxury  Food & beverages  Future-focus  Self-discovery

3. THE DEFINITIVE STUDY OF AFFLUENT WINE DRINKERS Drink 2+ glasses of wine per week At least $150K annual household income (HHI) 3.2 glasses$250K HHI Minimum threshold Median Jackson Family Wines partnered with Ipsos to conduct the definitive study of the lifestyles and evolving tastes of Affluent wine drinkers. This study was conducted online during August 2015 with N = 1,999 adults aged 25-69. The study represents the ~5% of the U.S. population with $150K+ HHI and drink 2+ glasses of wine per week. Methodology Data Collection 3

4. DEMOGRAPHIC SKEWS WITH BROAD APPEAL: BOOMER, SUBURBAN, EMPLOYED, MARRIED, PARENTS 46%54% Millennials (25-34) 10% Xers (35-49) 36% Boomers (50-69) 54% UrbanSuburbanRural 61%30%9% Parents 75% Median: $1.75M Net Worth $ Annual Household Income 4

5. The Passion: Thirst for Wine Profound & Growing 5

6. % D RANK WINE IN PAST 7 DAYS MOST DRINK RED AND WHITE Red Net: 79% White Net: 71% Sparkling Net: 34% Cabernet Sauvignon MerlotPinot NoirRed Blends MalbecZinfandelSyrah/ Shiraz Other RedChardonnayPinot Grigio/Gris Sauvignon Blanc RieslingOther White Domestic Sparkling Imported Sparkling Rose 60% DRANK RED & WHITE 6

7. ONE-THIRD ARE PARTICULARLY PASSIONATE ABOUT WINE 19% IDENTIFY AS CONNOISSEURS AND COLLECTORS 7

8. OVER HALF HAVE A WINE CELLAR OR REFRIGERATOR W INE STORAGE IN HOME 31% BELONG TO A WINE CLUB 8 67% H AVE 10+ BOTTLES OF WINE AT HOME

9. ENGAGEMENT WITH WINE RISING ACROSS METRICS Top 5 shown; % saying “decreased” 6% or less. Also showing growth: interest in culinary travel, interest in 90+ wines, reading about wine. Increased over the past year 9

10. Palates: The Selection of Wine & Varietals 10

11. DISCOVERY AND FAVORITES 59% AGREE WITH BOTH STATEMENTS 11

12. WHEN FORCED TO CHOOSE: FAVORITES OVER DISCOVERY 12 Which do you prefer?

13. NAPA VALLEY WINES RANK #1 ACROSS METRICS Familiar with wines from region (Base Total) Purchased in past year (Base Total) More interested vs. year ago (Base Familiar) Prestigious (Base Familiar) 1. Napa Valley (95%)1. Napa Valley (71%)1t. Napa Valley (22%)1t. Napa Valley (55%) 2. Sonoma Valley (92%)2. Sonoma Valley (62%)1t. Sonoma Valley (22%)1t. Bordeaux (55%) 3. Tuscany (89%)3. Australia (44%)1t. Oregon (22%)3. Tuscany (39%) 4. Bordeaux (88%)4. Tuscany (39%)4. Tuscany (19%)4. Burgundy (34%) 5. Australia (85%)5. Bordeaux (36%)5. Russian River Valley (18%)5. Sonoma Valley (29%) 13

14. CABERNET TOPS REDS; CHARDONNAY LEADS WHITES 14

15. Purchasing: How and Where Affluents Purchase Wine 15

16. THE “BIG FIVE”: KEY CONSIDERATIONS ACROSS CHANNELS 16

17. WINE PURCHASING WIDESPREAD ACROSS CHANNELS 17 Supermarket / liquor store RestaurantWine shop Purchase wine monthly or more often71%54%78% Typical amount spent (average)$22$66$32 Most spent in past 12 months$35$87$62 Prefer a wine “I know and like” over a wine “that is new and different” 80%63%69% “Secondary” influences (after the “big five”) Particularly value-driven Packaging Family/friend recommendation Sommelier Less value driven/more willing to splurge Expert recommendation Packaging

18. ACTIVITIES: THE BREADTH OF WINE-RELATED EXPERIENCES A CTIVITIES WITHIN THE PAST 12 MONTHS (A MONG PURCHASED VIA COMPUTER / SMARTPHONE / TABLET ) 18

19. Summing Up 19

20. STRONG EMOTIONAL ENGAGEMENT WITH WINE 20 Enthusiastic consumers Averaging more than 4 glasses of red and 3 glasses of white weekly Long-term passion 60% interested in wine 10+ years; three-fourths interested 5+ years Willing to pay In past year, 65% spent $30+; nearly half (43%) spent $50+ Attractive consumers Upscale, refined, with a willingness to spend across categories

21. REGIONS & VARIETALS: LEVERAGE THE NAPA NAME Regions: Napa Valley top region across metrics Napa tops for familiarity, purchase, interest growth Sonoma Valley often a close second Napa ties Bordeaux for #1 in prestige Varietals Red: Cabernet Sauvignon most popular, followed by Merlot and Pinot Noir White: Chardonnay tops, followed by Pinot Grigio/Gris and Sauvignon Blanc 21

22. UNDERSTANDING THE CONSUMER CHOICE PROCESS Discovery and favorites – leaning toward favorites The big 5: Five key factors consistently shape wine choice: Varietal Value Recommendations Region Brand Influences: Recommendations are particularly important, across sources: friends, family, staff in wine shops, restaurant staff Media influences: endemic sources are more frequently cited than non- endemic ones 22

23. KEY TRENDS: ENTHUSIASM RISING ACROSS SPECTRUM Enthusiasm for wine is strong and growing  Frequency of drinking wine  Knowledge & confidence in wine choices  Interest in discovery & exploration  Interest in wineries, vineyards, culinary travel Thriving at both tails… Most combine “everyday” consumption with high-end purchasing Roughly one-third are collectors or connoisseurs Most purchase through both high-end and mainstream channels 23

24. THANK YOU! PASSION, PALATES & PURCHASING THE LIFESTYLES, MINDSETS AND EVOLVING TASTES OF AFFLUENT WINE CONSUMERS