WINE INTELLIGENCE CANADA WINE LANDSCAPES 2020 FEBRUARY 2020
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2 CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
3 INTRODUCTION
According to Wine Intelligence’s Market Attractiveness Model, Canada is the second most attractive wine market worldwide after the US, and it is classified as a growing market. With the number of monthly drinkers settling down, wine volumes stabilizing, expanding knowledge and growing appreciation of higher priced artisanal products, Canada seems to be evolving into a more established and balanced wine market. Despite the overall adult population rising since 2017, the number of regular wine drinkers in Canada has decreased by 3 million people, likely driven by the overall decrease in the yearly wine drinking population over the years, which lost approximately 3 million people since 2017. Considering global moderation trends, coupled with consumers’ growing health-conscious attitudes, it can be speculated that those 3 million people simply decided to cut alcoholic beverages out of their lives. This would not be surprising, in fact, Canadians’ attitudes towards low- and no-alcohol wine are changing, with the proportion of those who consider the alcohol content to be an important or very important factor when buying wine significantly increasing since 2014. This shift has also been noticed by trade experts, who have seen an increasing demand for no-alcohol wine. The decreased wine drinking population could also be attributed to yet another global trend: a growing interest in other alcoholic categories. The significant increase in beer, whisky, craft beer, pre-mixed alcoholic beverages and gin consumption highlights said change. Canadians seem to be highly fond of beer, making it the third most consumed alcoholic beverage after red and white wine. Craft beer is being highly appreciated by Canadians as well, with a 10% increase in the proportion of them consuming it since 2014. Not only does this show an increasing interest towards other categories, but also it highlights a growing appreciation of artisanal and local products. The appreciation of local production is also highlighted when it comes to wine. Canada is the first country in terms of consumption among Canadian regular wine drinkers, with almost two thirds of the overall wine drinking population having drunk domestic wine in the past 6 months. While this is especially true for English-speaking Canadians, who are historically more likely to consume local wine, the past few years showed a shift in country of origin consumption with a significantly higher proportion of English-speaking Canadian regular wine drinkers aware of European wine-producing countries compared with 2014. Likewise, the proportion of Québécois regular wine drinkers aware of Canada as a wine-producing country significantly increased since 2016. The vibrant and expanding domestic production will surely have a positive impact on the Canadian wine market and possibly already has. Canadian regular wine drinkers are already showing significantly higher levels of wine knowledge compared with 2014. In sum, the Canadian wine market is growing into a more stabilized market. Following global trends of moderation and category switching, Canadian regular wine drinkers are highly attracted to local and artisanal products. In the next 12 months, Canadian local production will keep expanding and becoming more and more interesting and vibrant, positively impacting its consumers.
4 CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
5 MANAGEMENT SUMMARY
1. CANADIAN WINE DRINKING POPULATION HAS DROPPED, WHILE WINE CONSUMPTION FREQUENCY REMAINS STABLE
2. TOTAL WINE VOLUMES CONTINUE TO SLOW, WHILE VALUE INCREASES
3. CONSUMPTION OF BEER AND CRAFT BEER CONTINUES TO RISE AMONG CANADIAN REGULAR WINE DRINKERS
4. ENGLISH-SPEAKING CANADIANS PREFER LOCAL WINES, WHEREAS QUÉBÉCOIS CONSUMERS PREFER EUROPEAN WINES
5. WINE KNOWLEDGE AS A WHOLE HAS SIGNIFICANTLY INCREASED SINCE 2014
6. ALCOHOL CONTENT IS BECOMING INCREASINGLY IMPORTANT AMONG CANADIAN REGULAR WINE DRINKERS
6 MANAGEMENT SUMMARY
#1. CANADIAN WINE DRINKING POPULATION HAS DROPPED, WHILE WINE CONSUMPTION FREQUENCY REMAINS STABLE
▪ Despite the overall adult population rising since 2017, the number of regular wine drinkers in Canada has decreased by 3 million people, shifting from 19.8 to 16.8 monthly wine drinkers ▪ This decrease in the regular wine drinking population is likely driven by the overall decrease in the yearly wine drinking population over the years, decreasing 1.4 million people since 2014 and 3.1 million people since 2017 ▪ However, wine consumption frequency in Canada has remained stable among those who have remained in the category
Wine consumption frequency: Tracking 2017 2019 % who usually drink wine at the following frequency Adult population Base = All Canadian regular wine drinkers (n>=1,000) 1 29.4 million 1 (19+ age) 28.9 million 2014 2017 2019 Tracking 85% 73% n= 1,002 1,000 1,000 vs. '14 vs. '17 69% 57% Most days / every day 10% 9% 11% Wine drinkers 2-5 times a week 37% 32% 36% 49% 45% (red, white or 24.6 million 2 21.5 million 2 About once a week 28% 31% 31% rosé wine) 1-3 times a month 25% 28% 22% 80% 78% Regular (i.e. at least once per month) wine 19.8 million 2 16.8 million 2 drinkers 72% 78%
Weekly wine 14.3 million2 13.1 million2 drinkers Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, 2014, 2017, 2019 / : statistically significantly higher / lower than previous waves at a 95% confidence level 7 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers MANAGEMENT SUMMARY
#2. TOTAL WINE VOLUMES CONTINUE TO SLOW, WHILE VALUE INCREASES
▪ Canada is classified as a growing market, and as the second most attractive market in the world after the US, according to Wine Intelligence’s Market Attractiveness Model ▪ Total wine volumes continue to grow in Canada, albeit at a slower rate than they used to ▪ The compound annual growth rate since 2014 is only 2%, both in the domestic and imported wine market Off-trade spend by occasion averages ▪ Value continues to marginally grow: ▪ Since 2014, average spend on a bottle €14of wine has significantly increased across all off-premise occasions in English-speaking Canada €12 11.19 ▪ Québécois regular wine drinkers are spending more across some off-premise occasions as well 8.90 9.11 ▪ Additionally, the Canadian regular wine€10 drinking population has become more affluent, with a significantly higher proportion of consumers now earning $120,000+ compared€8 to 2014
€6 2014 2014 2012 English-speaking Canadians off-premise spend€4 by 2019 2019 Québécois off-premise spend by occasion averages 2019 occasion averages €2 $21 $20 $18.41 $19.17 €0 $19 $18 $16.44 $16.82 $16.54 $15.26 A relaxing $17 With an With a more At a party / As a gift for$18.32 $16 $17.03 $13.31 $13.36 drink at the informal formal celebration somebody $14 $15.84 $15 $13.93 $13.88 $16.30 $16.14 $14.72 end of the meal at dinner party at home $12 $13 $12.67 $12.54 day at home home$13.14 at $13.15home $10 $11 $8 $9 A relaxing drink With an With a more At a party / As a gift for A relaxing drink With an With a more At a party / As a gift for at the end of informal meal formal dinner celebration at somebody at the end of informal meal formal dinner celebration at somebody the day at at home party at home home the day at at home party at home home home home / : statistically significantly higher / lower than previous waves at a 95% confidence level 8 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=1,000 Canadian regular wine drinkers MANAGEMENT SUMMARY
#3. CONSUMPTION OF BEER AND CRAFT BEER CONTINUES TO RISE AMONG CANADIAN REGULAR WINE DRINKERS
▪ The beer category, especially craft beer, has experienced significant rises in the proportion of Canadian regular wine drinkers that consume the beverage since 2014 ▪ Beer is the third most consumed alcoholic drink in Canada, with almost three quarters of the regular wine drinking population having drunk it in the past year ▪ The significant increase in beer consumption is driven by Canadian males who are significantly more likely to have drunk it in the past 12 months (83% vs 64%) ▪ Both English- and French-speaking Canadian regular wine drinkers contribute to this rise in beer and craft beer consumption
Alcoholic beverage repertoire: Top 10 – tracking % who have drunk the following alcoholic beverages in the past 12 months Base = All Canadian regular wine drinkers (n=1,000)
Rank 2014 2017 2019 Tracking 2019 n= 1,002 1,000 1,000 vs. '14 vs. '17 1 Red wine 83% 86% 85% 2 White wine 83% 81% 81% 3 Beer 67% 77% 74% 4 Vodka 51% 49% 49% 5 Rum 48% 44% 43% 6 Whisky / Whiskey 41% 36% 41% 7 Craft beer 29% 35% 40% 8 Rosé wine 40% 36% 39% 9 Liqueurs 41% 29% 30% 10 Pre-mixed alcoholic beverages 25% 24% 29% 11 Cocktails 33% 28% 28% 12 Gin 24% 21% 26% 13/ : statisticallyCider significantly higher / lower than previous 26%waves at a 95%27% confidence26% level 9 Wine14 IntelligenceChampagne Vinitrac® (French Canada, Oct’14,Champagne) Oct’17 and Oct‘19,23% n>=1,000 Canadian25% regular25% wine drinkers 15 Prosecco 12% 13% 19% 16 Other sparkling wine 25% 16% 19% 17 Brandy / Cognac 22% 14% 14% 18 Sweet / dessert wine 20% 11% 13% 19 Port 22% 12% 11% 20 Sherry 14% 6% 4% 21 Cava 5% 4% 4% MANAGEMENT SUMMARY
#4. ENGLISH-SPEAKING CANADIANS PREFER LOCAL WINES, WHEREAS QUÉBÉCOIS CONSUMERS PREFER EUROPEAN WINES
▪ Due to historical and cultural links with France, Québécois consume more European wines than the rest of the country ▪ A significantly higher proportion of Québécois regular wine drinkers prefer to consume wine from European wine-producing countries such as France, Italy, Spain and Portugal ▪ Accordingly, English-speaking Canadians are more likely to have consumed local wine in the past 6 months (71% vs 32%)
▪ A significantly higher proportion of Country of origin consumption: English-speaking English-speaking Canadian regular wine Canadian vs Québécois drinkers are aware of European wine- producing countries France and % who have drunk wine from the following places in past 6 months Portugal compared with 2014, Base = All Canadian regular wine drinkers (n=1,000) highlighting a possible shift in country of origin consumption All Canadian regular English-speaking Country of origin consumption Québécois 2019 wine drinkers Canadian ▪ This shift is also suggested by a n= 1,000 750 250 significant decrease in the proportion 1 Canada 62% 71% 32% of English-speaking consumers who 2 California – USA 44% 47% 34% have purchased wine from the 3 France 42% 37% 57% domestic wine-producing region 4 Italy 42% 38% 54% Niagara Peninsula since 2014 5 Australia 31% 33% 26% 6 Spain 22% 19% 30% ▪ Furthermore, a variety of European 7 Chile 21% 22% 18% regions have experienced a significant 8 Argentina 16% 17% 13% decrease in the proportion of 9 Portugal 14% 11% 22% Québécois regular wine drinkers aware 10 New Zealand 14% 16% 7% of them since 2014 11 South Africa 13% 15% 9% 12 Germany 11% 11% 11% %13/ % : StatisticallyOther USA significantly (outside ofhigher California) / lower than all Canadian8% regular wine drinkers at a9% 95% confidence level 8% 10 Wine14 IntelligenceGreece Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19,3% n>=1,000 Canadian regular2% wine drinkers 5% 15 Switzerland 2% 2% 2% MANAGEMENT SUMMARY
#5. WINE KNOWLEDGE AS A WHOLE HAS SIGNIFICANTLY INCREASED SINCE 2014
▪ Recalled wine knowledge index of all Canadians regular wine drinkers significantly increased in the past few years, increasing from 28.4 in 2014, to 35.0 in 2019 ▪ Said increase in recalled wine knowledge has been driven by both English-speaking and Québécois regular wine drinkers, whose knowledge indexes experienced significant increases since 2014. Although, Québécois consumers have significantly lower recalled wine knowledge compared to English-speaking consumers ▪ Aligning with increased wine knowledge, brand awareness incidence has also significantly increased for a variety of domestic and imported wine brands for both English-speaking and Québécois regular wine drinkers ▪ Most countries of origin have experienced a significant increase in the proportion of Québécois consumers aware of them since 2016
Wine knowledge index of English-speaking Wine knowledge index of Québécois: Canadians: Tracking Tracking Wine knowledge index (0-100) is calculated based on consumer-reported Wine knowledge index (0-100) is calculated based on consumer-reported awareness of wine-producing countries, wine-growing regions and wine brands awareness of wine-producing countries, wine-growing regions and wine brands Base = All English-speaking Canadian regular wine drinkers (n>=744) Base = All Québécois regular wine drinkers (n>=250)
2014 Index Change 2019 2014 Index Change 2019
28.8 +7.3 36.1 27.3 +4.5 31.8
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 11 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=1,000 Canadian regular wine drinkers MANAGEMENT SUMMARY
#6. ALCOHOL CONTENT IS BECOMING INCREASINGLY IMPORTANT AMONG CANADIAN REGULAR WINE DRINKERS Wine-buying choice cues: Tracking Top 10 ▪ Aligning with global moderation trends, the proportion % who indicate each of the following factors is 'important' or 'very important' of Canadian regular wine drinkers who consider the when buying wine alcohol content to be an important or very important factor when buying wine has significantly increased since 2014 All English-speaking Canadian regular wine drinkers (n>=744)
▪ The proportion of Québécois regular wine drinkers who Rank 2014 2017 2019 Tracking consider alcohol content as important or very important 2019 n= 744 746 750 vs. '14 vs. '17 when purchasing wine has risen by 20% in the past 5 1 Grape variety 68% 76% 73% years 2 A brand I am aware of 69% 69% 66% 3 Recommendation by friend or family 68% 68% 66% ▪ To a lesser, but still significant, extent, the proportion of 4 Promotional offer 51% 58% 66% English-speaking regular wine drinkers considering 5 Taste or wine style descriptions n/a 60% 65% n/a alcohol content to be important or very important when 6 The country of origin 65% 62% 64% buying wine has risen since 2014 7 Wine that matches or compliments food n/a 65% 64% n/a 8 The region of origin 58% 58% 59% 9 Recommendations from shop staff 45% 48% 45% 10 Alcohol content 36% 41% 44% We also see an increase demand for de- 11 Bottle / label appeal 31% 40% 40% alcoholized wines, but from a low base All12 QuébécoisRecommendation regular by wine critic wine drinkers34% (n>=250)34% 29% Wine buyer, Canada 13 Recommendation by wine guide books 28% 32% 28% Rank14 If the wine has won a medal or award 201423% 201728% 201924% Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Grape variety 67% 68% 77% We see demand for no-alcohol wine in young people 2 A brand I am aware of 73% 75% 76% and older people as well. I think people want the 3 The country of origin 66% 63% 76% pleasure of drinking wine, without alcohol in their 4 The region of origin 57% 58% 72% glasses. It’s still small, but it answers specific demands 5 Taste or wine style descriptions n/a 63% 69% n/a that we wouldn’t be able to otherwise 6 Wine that matches food n/a 64% 68% n/a Wine buyer, Canada 7 Promotional offer 53% 61% 66% 8 Recommendation by friend or family 72% 66% 65% 9 Recommendations from shop staff 57% 51% 58% 10 Alcohol content 34% 40% 54% Wine Intelligence trade interview program 11 Recommendation by wine critic 44% 46% 49% / : statistically significantly higher / lower than previous waves at a 95% confidence level 12 Recommendation by wine guide books 44% 37% 42% 12 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers 13 If the wine has won a medal or award 30% 26% 38% 14 Bottle / label appeal 31% 35% 35% MANAGEMENT SUMMARY
Consumption trends in the Canadian wine market
Top alcoholic beverages Top countries of origin % who have drunk the following alcoholic beverages in the past 12 months % who have drunk wine from the following places in past 6 months 2014 2019 2014 2019 Red wine 83% 85% Canada n/a 62% White wine 83% 81% California – USA 45% 44% Beer 67% 74% France 44% 42% Vodka 51% 49% Italy 41% 42% Rum 48% 43% Australia 37% 31%
Top red varietals Top white varietals % who have drunk the following varietals or wine types in the past 6 months % who have drunk the following varietals or wine types in the past 6 months
2014 2019 2014 2019 Merlot 57% 55% Sauvignon Blanc 52% 52% Cabernet Sauvignon 51% 51% Pinot Grigio / Pinot Gris 49% 51% Pinot Noir 47% 47% Chardonnay 53% 51% Shiraz / Syrah 40% 37% Riesling 36% 32% Red blend 23% 23% White blend 21% 21%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 13 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=1,000 Canadian regular wine drinkers MANAGEMENT SUMMARY
Purchase trends in the Canadian wine market
Top wine-buying channels Off-premise: average spend on wine by % who have bought wine from the following channels in the past 6 months occasion % who typically spend the following amount on a bottle of wine on each occasion 2014 2019 2014 2019 In a government-controlled liquor store 74% 69% A relaxing drink at the end of the day at home $ 12.79 $ 13.46 In a grocery store n/a 23% With an informal meal at home $ 12.69 $ 13.49 In a wine store attached to a grocery store 22% 21% With a more formal dinner party at home $ 15.96 $ 16.54 In a privatized liquor store 15% 21% At a party / celebration at home $ 15.09 $ 15.59 In a beer and wine (convenience) store 19% 14% As a gift for somebody $ 17.36 $ 18.60
Top brands Top wine-buying choice cues % who have bought the following brands in the past 3 months % who indicate each of the following factors is 'important' or 'very important' when buying wine
2014 2019 2014 2019 Yellow Tail 27% 25% Grape variety 68% 74% Jackson-Triggs 18% 23% A brand I am aware of 70% 69% Barefoot 10% 16% The country of origin 65% 67% Jacob's Creek 9% 15% Taste or wine style descriptions n/a 66% Apothic 4% 10% Recommendation by friend or family 69% 66%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 14 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=1,000 Canadian regular wine drinkers MANAGEMENT SUMMARY
Consumption trends in the English-speaking Canadian wine market
Top alcoholic beverages Top countries of origin % who have drunk the following alcoholic beverages in the past 12 months % who have drunk wine from the following places in past 6 months 2014 2019 2014 2019 Red wine 81% 83% Canada n/a 71% White wine 84% 81% California – USA 45% 47% Beer 67% 73% Italy 37% 38% Vodka 53% 51% France 37% 37% Whisky / Whiskey 45% 43% Australia 37% 33%
Top red varietals Top white varietals % who have drunk the following varietals or wine types in the past 6 months % who have drunk the following varietals or wine types in the past 6 months
2014 2019 2014 2019 Merlot 55% 54% Pinot Grigio / Pinot Gris 51% 53% Cabernet Sauvignon 48% 50% Sauvignon Blanc 50% 49% Pinot Noir 44% 45% Chardonnay 54% 48% Shiraz / Syrah 39% 36% Riesling 39% 35% Malbec 26% 24% Moscato 13% 23%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 15 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers MANAGEMENT SUMMARY
Purchase trends in the English-speaking Canadian wine market
Top wine-buying channels Off-premise: average spend on wine by % who have bought wine from the following channels in the past 6 months occasion % who typically spend the following amount on a bottle of wine on each occasion 2014 2019 2014 2019 In a government-controlled liquor store 74% 68% A relaxing drink at the end of the day at home $ 12.67 $ 13.31 In a privatized liquor store 16% 26% With an informal meal at home $ 12.54 $ 13.36 In a grocery store n/a 20% With a more formal dinner party at home $ 15.84 $ 16.44 In a wine store attached to a grocery store 20% 20% At a party / celebration at home $ 14.72 $ 15.26 In a super store 11% 16% As a gift for somebody $ 17.03 $ 18.41
Top brands Top wine-buying choice cues % who have bought the following brands in the past 3 months % who indicate each of the following factors is 'important' or 'very important' when buying wine
2014 2019 2014 2019 Jackson-Triggs 23% 28% Grape variety 68% 73% Yellow Tail 30% 27% A brand I am aware of 69% 66% Barefoot 10% 17% Recommendation by friend or family 68% 66% Jacob's Creek 6% 14% Promotional offer 51% 66% Naked Grape 15% 13% Taste or wine style descriptions n/a 65%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 16 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers MANAGEMENT SUMMARY
Consumption trends in the Québec wine market
Top alcoholic beverages Top countries of origin % who have drunk the following alcoholic beverages in the past 12 months % who have drunk wine from the following places in past 6 months 2014 2019 2014 2019 Red wine 90% 90% France 65% 57% White wine 79% 83% Italy 53% 54% Beer 69% 76% California – USA 45% 34% Rosé wine 54% 46% Canada n/a 32% Rum 47% 44% Spain 38% 30%
Top red varietals Top white varietals % who have drunk the following varietals or wine types in the past 6 months % who have drunk the following varietals or wine types in the past 6 months
2014 2019 2014 2019 Cabernet Sauvignon 59% 56% Chardonnay 53% 59% Merlot 64% 56% Sauvignon Blanc 55% 59% Pinot Noir 55% 52% Pinot Grigio / Pinot Gris 43% 45% Shiraz / Syrah 41% 40% Riesling 28% 23% Red blend 20% 20% White blend 17% 17%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 17 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’16, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers MANAGEMENT SUMMARY
Purchase trends in the Québec wine market
Top wine-buying channels Off-premise: average spend on wine by % who have bought wine from the following channels in the past 6 months occasion % who typically spend the following amount on a bottle of wine on each occasion 2014 2019 2014 2019 In a government-controlled liquor store 74% 74% A relaxing drink at the end of the day at home $ 13.14 $ 13.93 In a grocery store n/a 34% With an informal meal at home $ 13.15 $ 13.88 In a wine store attached to a grocery store 29% 25% With a more formal dinner party at home $ 16.30 $ 16.82 In a beer and wine (convenience) store 17% 15% At a party / celebration at home $ 16.14 $ 16.54 In a club store 14% 15% As a gift for somebody $ 18.32 $ 19.17
Top brands Top wine-buying choice cues % who have bought the following brands in the past 3 months % who indicate each of the following factors is 'important' or 'very important' when buying wine
2014 2019 2014 2019 Yellow Tail 18% 20% Grape variety 67% 77% Jacob's Creek 17% 19% A brand I am aware of 73% 76% Gallo Family Vineyards 17% 18% The country of origin 66% 76% Mouton Cadet 17% 16% The region of origin 57% 72% Ménage à Trois 18% 16% Taste or wine style descriptions n/a 69%
/ : statistically significantly higher / lower than 2014 at a 95% confidence level 18 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’16, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
19 THE CANADIAN WINE MARKET
Wine Intelligence Compass 2019 Report
Overview of the Canadian wine market
29.4
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20 Wine Intelligence Compass 2019 Report MARKET CLASSIFICATION
Canada is classified as a growing market, and as the second most attractive market in the world after the US, according to Wine Intelligence’s Market Attractiveness Model
MATURE ESTABLISHED GROWTH EMERGING NEW EMERGING
Markets where wine Markets where wine Markets where wine is Markets where wine is still Markets with strong appears to have reached is a mainstream product experiencing growth and a relatively new and historical growth its potential with stable or and / or experiencing shows potential from a unknown beverage, but which is tailing off declining volumes growth relatively low base showing potential
France (3) Germany (4) Hong Kong (12) Netherlands (5) United Kingdom (7) Ireland (13) United States (1) China (6) India (38) Denmark (8) Italy (17) Canada (2) Switzerland (9) Portugal (23) South Korea (10) Taiwan (21) Indonesia (40) Australia (11) New Zealand (24) Poland (14) Russia (33) Philippines (44) Belgium & Luxembourg (15) Czech Republic (27) Romania (16) Turkey (39) Thailand (45) Sweden (18) Japan (20) Finland (30) Singapore (19) Colombia (42) Malaysia (46) Spain (22) Hungary (31) Mexico (26) Peru (48) Vietnam (47) Austria (25) Greece (35) Brazil (28) Angola (50) Nigeria (49) Norway (29) Slovenia (37) United Arab Emirates (36) Chile (32) South Africa (43) Slovakia (34) Argentina (41)
() Rank by attractiveness () Top 10 most attractive wine markets in the world 21 Wine Intelligence global wine market attractiveness model IMPORTED VS. DOMESTIC STILL WINE MARKET
Total wine volumes continue to grow in Canada, albeit at a slower rate than previously. All major source countries are showing long-term growth, with the exception of Argentina and South Africa
Canadian still wine volumes and price per bottle (total and by country of origin)
Retail price per 0.75L Thousands of 9 CAGR CAGR Market 2014 2015 2016 2017 2018 CAGR CAGR litre cases 14-18 17-18 share 2018 (US$) 14-18 17-18 Total 44,594 45,653 46,551 47,081 47,521 2% 1% 100% 9.19 1% 1% Domestic 12,380 12,786 13,058 13,197 13,316 2% 1% 28% 8.02 1% 1% Imported 32,214 32,867 33,494 33,884 34,205 2% 1% 72% 9.65 1% 1% Italian 6,322 6,409 6,620 6,759 6,855 2% 1% 14% 9.33 1% 1% US 5,593 5,953 6,106 6,020 5,886 1% -2% 12% 10.91 1% 3% French 5,485 5,406 5,309 5,347 5,567 0% 4% 12% 9.97 0% 0% Australian 4,800 4,905 5,108 5,085 5,221 2% 3% 11% 9.43 0% 1% Chilean 2,816 2,944 3,030 3,087 3,014 2% -2% 6% 7.75 0% 1% Spanish 1,992 2,020 2,079 2,169 2,229 3% 3% 5% 8.99 1% 1% Argentinian 2,036 2,005 1,940 1,871 1,755 -4% -6% 4% 8.20 -1% -2% New Zealand 906 981 1,130 1,357 1,445 12% 7% 3% 14.28 0% 1% South African 886 874 867 855 832 -2% -3% 2% 8.58 1% 1% Portuguese 651 652 627 681 765 4% 12% 2% 7.89 0% 0% German 509 502 460 436 416 -5% -5% 1% 8.48 0% 1% Greek 65 61 55 51 53 -5% 4% 0% 7.70 0% 1% Hungarian 54 56 42 43 49 -3% 13% 0% 6.85 1% -4% International 45 35 45 46 46 0% 0% 0% 10.41 0% 0% Moldovan - 10 20 27 28 - 4% 0% 12.19 - 0% Romanian 28 28 27 26 26 -2% -1% 0% 7.86 0% -3% Lebanese 8 9 10 10 10 6% 1% 0% 9.81 0% 0% Bulgarian 17 16 19 14 10 -12% -26% 0% 6.35 0% 0% Israeli 2 2 2 2 2 0% 0% 0% 11.57 0% 0%
IWSR 2018 22 ©Copyright 2019 – The IWSR IMPORTED VS. DOMESTIC SPARKLING AND FORTIFIED WINE MARKET SHARE Sparkling wine volumes have increased in the last four years, driven by the substantial increase in Italian sparkling wines Sparkling wine is doing particularly well, and that includes Champagne, Cava, and Prosecco, all working quite well in Canada Wine Buyer, Canada
Canadian sparkling wine volumes and price per bottle (total and by country of origin)
Retail price per 0.75L Thousands of 9 CAGR CAGR Market 2014 2015 2016 2017 2018 CAGR CAGR litre cases 14-18 17-18 share 2018 (US$) 14-18 17-18 Total 1,499 1,512 1,641 1,756 1,927 6% 10% 100% 14.81 2% 3% Domestic 365 340 322 314 333 -2% 6% 17% 7.76 2% 4% Imported 1,133 1,172 1,319 1,442 1,594 9% 11% 83% 16.28 1% 2% Italian 351 368 485 558 644 16% 15% 33% 12.13 2% 4% French 244 254 268 281 311 6% 11% 16% 34.00 1% -1% Spanish 172 186 194 214 229 7% 7% 12% 11.27 2% 4% German 128 130 125 123 131 1% 7% 7% 11.61 4% 7% Australian 80 78 77 93 101 6% 9% 5% 10.79 0% 1% US 79 80 79 82 83 1% 1% 4% 17.56 5% 18% CanadianHungarian fortified 40 wine volumes39 53 and 51 price 56 per bottle9% (total10% 3%and by 9.25 country of0% origin)0% International 17 16 16 16 17 -1% 3% 1% 9.68 0% 0% Retail price per 0.75L ThousandsChilean of 9 12 11 9 9 9 CAGR-7% CAGR6% Market0% 10.73 0% 3% 2014 2015 2016 2017 2018 CAGR CAGR litreNew cases Zealand - 2 5 8 7 14-18- 17-18-13% share0% 11.61 2018 (US$) - 0% Argentinian 2 2 3 3 3 21% 18% 0% 10.75 14-180% 17-180% South AfricanTotal 607 8 576 8 550 6 525 5 498 3 -22%-5% -40%-5% 100%0% 9.63 9.25 1%0% 1%0% Domestic 316 292 275 257 246 -6% -4% 49% 6.34 0% 0% Imported 291 284 275 268 252 -4% -6% 51% 12.84 1% 2% Portuguese 181 179 176 168 163 -3% -3% 33% 13.83 1% 3% Spanish 40 37 35 41 36 -2% -12% 7% 11.62 1% 1% French 25 25 24 20 17 -9% -15% 3% 14.45 0% 0% Australian 19 19 15 15 14 -7% -2% 3% 7.43 1% 0% Italian 15 15 14 14 14 -1% -4% 3% 10.20 0% 1% Wine IntelligenceSouth trade interviewAfrican program 8 8 8 7 5 -11% -25% 1% 7.59 -1% -1% IWSR 2018 23 ©Copyright 2019 – The IWSRGreek 3 3 3 3 2 -5% -20% 0% 11.57 0% 0% Cypriot 1 1 1 1 1 0% 50% 0% 10.03 0% 0% PER CAPITA CONSUMPTION OF STILL LIGHT WINE
Although per capita consumption in Canada is marginally increasing, it is still relatively small when compared to other major markets
Per capita consumption of still light wine (red, white and rosé wine) in liters per annum
CAGR CAGR Market 2014 2015 2016 2017 2018 14-18 17-18
1 Portugal 43.7 45.5 46.2 47.5 46.7 1.7% -1.7% 2 Italy 41.9 43.2 45.0 45.1 44.7 1.7% -0.8% 3 Montenegro 46.2 45.6 44.9 44.7 44.4 -1.0% -0.8% 4 Slovenia 42.6 42.9 43.0 43.6 43.7 0.6% 0.4% 5 France 44.8 43.4 42.5 41.8 40.3 -2.6% -3.6% 6 Switzerland 40.7 40.1 39.5 38.7 38.2 -1.6% -1.4% 7 Malta 33.8 34.7 34.8 35.2 35.5 1.2% 0.7% 8 Greece 31.5 31.5 32.0 32.4 32.9 1.1% 1.4% 9 Austria 34.1 33.7 33.4 32.8 32.6 -1.1% -0.8% 10 Denmark 34.7 34.0 33.8 33.0 32.2 -1.8% -2.3% 11 Hungary 31.0 31.3 31.6 31.7 31.9 0.7% 0.7% 12 Germany 29.9 30.0 29.8 29.7 28.8 -1.0% -3.0% 13 Argentina 31.2 30.5 29.7 28.7 27.4 -3.2% -4.6% 14 Romania 23.2 23.9 25.0 25.5 25.8 2.7% 1.1% 15 Australia 26.5 26.1 26.4 26.2 25.4 -1.1% -3.0% 16 Uruguay 28.0 27.3 26.2 25.6 25.4 -2.4% -0.8% 17 Netherlands 25.3 25.4 24.6 24.4 23.9 -1.4% -2.3% 18 Slovakia 23.7 23.8 23.9 23.5 23.6 -0.1% 0.7% 19 Sweden 24.0 23.7 23.4 23.0 23.1 -1.0% 0.3% 20 New Zealand 23.5 23.3 23.5 23.5 23.0 -0.6% -2.2%
31 Namibia 10.3 12.1 13.8 16.0 16.1 11.8% 0.7% 32 Czech Republic 15.6 15.6 15.7 15.7 15.6 0.1% -0.6% 33 Canada 14.7 14.9 15.0 15.0 15.1 0.7% 0.2% 34 Norway 17.5 16.9 15.2 14.9 15.0 -3.8% 0.6% IWSR 2018 24 ©Copyright 2019– The IWSR CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
25 OVERVIEW OF WINE DRINKERS IN THE CANADIAN MARKET 2020
Over half of Canadian adults drink wine at least once a month, with three-quarters of the regular wine drinking population consuming wine weekly
Adult population 1 (19+ age) 29.4 million
73%
Wine drinkers (red, white or 2 21.5 million 57% 45% rosé wine)
78% Regular (i.e. at least once per month) wine 16.8 million 2 Sample for drinkers this report
78%
Weekly wine 3 drinkers 13.1 million
Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, Sep’19, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 26 3 Wine Intelligence, Vinitrac® Canada, Oct’19, n=1,000 Canadian regular wine drinkers OVERVIEW OF WINE DRINKERS IN THE CANADIAN MARKET
Despite the overall adult population rising since 2017, the number of regular wine drinkers in Canada has decreased since 2017, likely driven by an overall decrease in yearly wine drinkers 2014 2017 2019
Adult population 1 1 1 (19+ age) 28.2 million 28.9 million 29.4 million
81% 85% 73% 59% 69% 57% Wine drinkers 44% 49% 45% (red, white or 22.9 million 2 24.6 million 2 21.5 million 2 rosé wine)
72% 80% 78% Regular (i.e. at least once per month) wine 16.6 million2 19.8 million2 16.8 million2 drinkers 75% 72% 78%
Weekly wine 2 2 2 drinkers 12.5 million 14.3 million 13.1 million
Sources: 1 Statistics Canada 2018 estimates 27 2 Wine Intelligence online calibration study, 2014, 2017, 2019 DEMOGRAPHICS OF CANADIAN WINE REGULAR WINE DRINKERS
Canadian regular wine drinkers are slightly more affluent than in 2014, and more likely to be classified as Mainstream Matures
Gender Age Portraits 2017 2019 19% 20% Engaged Explorers 8% 9% 65 and over Enthusiastic Treaters 9% 8% 18% 17% 55-64 Mainstream Matures 18% 21% Social Newbies 24% 24% 19% 17% 45-54 Contented Occasionals 17% 14% 16% 18% Kitchen Casuals 24% 24% 2019 51% 49% 35-44 2014 25-34 50% 50% 19% 22% 19-24 2014 tracking for Canada Portraits unavailable. 9% 7% For more information on Portraits 2014 2019 segmentation, please refer to page 132
Regions Total household income (before tax) 2014 2019 2014 2019 Ontario 40% 38% Under $20,000 5% 4% Québec 26% 25% $20,000 - $39,999 15% 11% British Columbia 14% 13% $40,000 - $59,999 24% 20% Alberta 8% 10% $60,000 - $79,999 15% 18% Manitoba 4% 6% $80,000 - $99,999 13% 15% Nova Scotia 2% 3% Saskatchewan 2% 3% $100,000 - $119,999 9% 11% New Brunswick 2% 1% $120,000+ 11% 18% Newfoundland and Labrador 1% 1% Prefer not to answer 9% 4% Prince Edward Island 1% 1%
%: Data from 2014 / : statistically significantly higher / lower than previous waves at a 95% confidence level 28 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers WINE CONSUMPTION FREQUENCY
Wine consumption frequency has remained relatively stable over the years, with a significantly lower proportion of those who drink on a monthly basis compared to 2017
Wine consumption frequency: Tracking % who usually drink wine at the following frequency Base = All Canadian regular wine drinkers (n>=1,000)
2014 2017 2019 Tracking n= 1,002 1,000 1,000 vs. '14 vs. '17 Most days / every day 10% 9% 11% 2-5 times a week 37% 32% 36% About once a week 28% 31% 31% 1-3 times a month 25% 28% 22%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 29 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
Red and white wine are the most preferred alcoholic beverages among Canadian regular wine drinkers, followed by beer
Alcoholic beverage repertoire: Top 20 % who have drunk the following alcoholic beverages in the past 12 months Base = All Canadian regular wine drinkers (n=1,000)
Red wine 85% White wine 81% Beer 74% Vodka 49% Rum 43% Whisky / Whiskey 41% Craft beer 40% Rosé wine 39% Liqueurs 30% Pre-mixed alcoholic beverages 29% Cocktails 28% Gin 26% Cider 26% Champagne (French Champagne) 25% Prosecco 19% Other sparkling wine 19% Brandy / Cognac 14% Sweet / dessert wine 13% Port 11% Sherry 4% Cava 4% 30 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
The beer category, especially craft beer, has experienced significant rises in the proportion of Canadian consumers who have drunk it in the past 12 months since 2014; Prosecco and pre-mixed alcoholic beverages continue to experience growth as well
Alcoholic beverage repertoire: Top 20 tracking The significant % who have drunk the following alcoholic beverages in the past 12 months increase in beer Base = All Canadian regular wine drinkers (n=1,000) consumption is Rank 2014 2017 2019 Tracking driven by males who 2019 n= 1,002 1,000 1,000 vs. '14 vs. '17 are significantly 1 Red wine 83% 86% 85% more likely to have 2 White wine 83% 81% 81% drunk it in the past 3 Beer 67% 77% 74% 12 months (83% vs 4 Vodka 51% 49% 49% 74%) Similarly, the 5 Rum 48% 44% 43% significant 6 Whisky / Whiskey 41% 36% 41% increase in craft 7 Craft beer 29% 35% 40% beer 8 Rosé wine 40% 36% 39% consumption is 9 Liqueurs 41% 29% 30% driven by males 10 Pre-mixed alcoholic beverages 25% 24% 29% as well (50% vs 11 Cocktails 33% 28% 28% 40%) 12 Gin 24% 21% 26% 13 Cider 26% 27% 26% Pre-mixed alcoholic 14 Champagne (French Champagne) 23% 25% 25% beverages are more 15 Prosecco 12% 13% 19% popular among 16 Other sparkling wine 25% 16% 19% women, who are 17 Brandy / Cognac 22% 14% 14% more likely to have 18 Sweet / dessert wine 20% 11% 13% drunk it in the past 19 Port 22% 12% 11% 12 months (34% vs 20 Sherry 14% 6% 4% 29%) 21 Cava 5% 4% 4%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 31 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
32 WINE INTELLIGENCE GLOBAL WINE BRAND INDEX
2019 Report
The Wine Intelligence Global Wine Brand Power Index shows the top 15 most powerful wine brands by market. Rather than being based on volume of sales, the index is calculated based on a combination of consumer reported brand health measures.
The Index uses six input measures from consumer feedback obtained from Wine Intelligence Vinitrac® omnibus surveys: awareness, recalled purchase in the past three months, conversion rate of awareness into purchase, future purchase consideration, affinity and recommendation.
The Global Wine Brand Power Index 2019 report includes: – The key findings from the Global Wine Brand Power Index 2019 along with the top 15 most powerful brands globally from a consumer perspective – 2019 versus 2018 ranking Wine Brand Power differences on a global and individual market scale Global Wine – Wine Brand Power 2019 by market, 20 markets in total, which Brand Power Index 2020 includes the top 15 most powerful brands in that market as well as report key findings from that market published in March 2020 – The key principles of delivering brand power and an explanation of the Global Wine Brand Power Index calculation 33 WINE INTELLIGENCE GLOBAL WINE BRAND INDEX
Brand health measures included in the Global Wine Brand Power Index
% of all wine drinkers who have heard of each wine Awareness brand (when shown a list of brand names with logos) Awareness index Base = All regular wine drinkers
% of all wine drinkers who have bought each wine Purchase brand in the past 3 months Base = All regular wine drinkers
% of those aware of each wine brand who have bought Conversion that brand in the past 3 months Purchase index Base = All those aware of each individual brand Brand Power % of those aware of each wine brand who would index Consideration consider buying the brand Base = All those aware of each individual brand
% of those aware of each brand who think the brand is Affinity right for a person like them Base = All those aware of each individual brand Connection index % of those aware of each brand who would Recommendation recommend that brand to a friend Base = All those aware of each individual brand
34 CANADIAN MARKET
The top 15 most powerful wine brands in the Canadian wine market
Awareness Purchase Connection Brand Final Index Index Index Index 1st Yellow Tail 100 97 91 96.2 2nd Jackson-Triggs 83 96 100 92.5 3rd Jacob's Creek 86 75 84 81.6 4th Barefoot 80 75 82 78.8 5th Naked Grape 70 62 75 68.8 6th Peller Estates 63 64 80 68.2 7th Apothic 49 68 88 67.3 8th Sawmill Creek 67 60 75 67.1 9th Woodbridge 65 60 74 66.1 10th Oyster Bay 63 57 74 64.2 11th Kim Crawford 56 59 75 62.6 12th Wolf Blass 56 55 79 62.5 13th Pelee Island 45 60 85 62.3 14th Gallo Family Vineyards 65 56 64 61.6 15th Bodacious 44 63 79 61.1
35 CANADIAN MARKET
The top 3 most powerful wine brands in the Canadian wine market
1st Australia really made a mark in Canada as far as the popularity of their wines, and they have a lot to overcome. I feel like they targeted nd Canada, especially, but I feel like they led the 2 marketing for producers Export Manager, Canada
3rd
▪ The top three most powerful brands in Canada originate from Australia and Canada
▪ Top brands Yellow Tail, Jackson-Triggs and Jacob’s Creek are among the top 5 brands for both awareness and purchase incidences
▪ Though Yellow Tail performs highest of all tested brands in awareness and purchase, Canadian brand Jackson-Triggs surpasses the leader in terms of connection to consumers
Wine Intelligence trade interview program 36 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers BRAND HEALTH: AWARENESS VS. PURCHASE
Australian brands Yellow Tail and Jacob’s Creek are the top brands by awareness in the Canadian wine market, followed by domestic brand Jackson-Triggs
Top 15 brands by awareness and respective purchase level Base = All Canadian regular wine drinkers (n=1,000)
Yellow Tail 25% 76%
Jacob's Creek 15% 66%
Jackson-Triggs 23% 63%
Barefoot 16% 61%
Naked Grape 10% 54%
Sawmill Creek 9% 51%
Woodbridge 9% 50% % who have heard of the following brands Gallo Family Vineyards 9% 49%
Oyster Bay 8% 48% % who have bought the following brands in the past 3 months Peller Estates 9% 48%
Kim Crawford 8% 43%
Wolf Blass 6% 43%
Wayne Gretzky Estates 4% 42%
Inniskillin 6% 41%
Lindeman's 6% 38% 37 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers BRAND HEALTH: AWARENESS
The proportion of Canadian regular wine drinkers aware of mainstream brands has increased significantly since 2014 and 2017 Results for all 55 brands Awareness: Tracking available in the data % who have heard of the following brands table Base = All Canadian regular wine drinkers (n>=1,000)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 1002 1000 1000 vs. '14 vs. '17 2019 n= 1002 1000 1000 vs. '14 vs. '17 1 Yellow Tail 68% 70% 76% 26 Two Oceans 30% 28% 31% 2 Jacob's Creek 52% 58% 66% 27 Rosemount Estate 32% 24% 30% 3 Jackson-Triggs 61% 62% 63% 28 Copper Moon n/a 27% 29% n/a 4 Barefoot 40% 49% 61% 29 Cupcake 17% 26% 27% 5 Naked Grape 53% 50% 54% 30 Wallaroo Trail 17% 23% 27% 6 Sawmill Creek 52% 49% 51% 31 Fuzion Zuccardi 32% 29% 25% 7 Woodbridge 45% 50% 50% 32 Masi 25% 25% 25% 8 Gallo Family Vineyards 55% 52% 49% 33 Gato Negro 22% 24% 24% 9 Oyster Bay 31% 40% 48% 34 George Wyndham n/a 15% 22% n/a 10 Peller Estates 45% 46% 48% 35 Torres 26% 18% 21% 11 Kim Crawford 21% 37% 43% 36 Domaine D’or 28% 21% 21% 12 Wolf Blass 37% 38% 43% 37 J.P. Chenet 20% 19% 20% 13 Wayne Gretzky Estates n/a 35% 42% n/a 38 Santa Carolina 18% 14% 19% 14 Inniskillin 44% 41% 41% 39 XOXO n/a n/a 18% n/a n/a 15 Lindeman's 38% 38% 38% 40 Trapiche 16% 19% 18% 16 Robert Mondavi 31% 35% 38% 41 Monkey Bay 12% 15% 18% 17 Apothic 14% 29% 38% 42 Peter Lehmann n/a 13% 16% n/a 18 Ménage à Trois 25% 36% 37% 43 Campo Viejo 11% 14% 16% 19 Mouton Cadet 40% 37% 36% 44 Hardys 18% 15% 16% 20 Mission Hill 37% 29% 36% 45 Frontera 12% 11% 15% 21 Casillero del Diablo 32% 31% 36% 46 Ravenswood 14% 15% 14% 22 Ruffino n/a 31% 36% n/a 47 Nicolas Laloux n/a n/a 14% n/a n/a 23 Pelee Island 34% 32% 35% 48 Fetzer 17% 15% 13% 24 Bodacious 11% 24% 33% 49 Les Dauphins n/a 8% 11% n/a 25 Beringer n/a 32% 33% n/a 50 Revolution n/a n/a 10% n/a n/a
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 38 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers BRAND HEALTH: PURCHASE
Many dominant brands have experienced significant increases in purchase incidence in the past 5 years Results for all 55 brands Purchase: Tracking available in the data % who have bought the following brands in the past 3 months table Base = All Canadian regular wine drinkers (n>=1,000)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 1002 1000 1000 vs. '14 vs. '17 2019 n= 1002 1000 1000 vs. '14 vs. '17 1 Yellow Tail 27% 21% 25% 26 Mouton Cadet 6% 5% 6% 2 Jackson-Triggs 18% 16% 23% 27 Trapiche 3% 5% 5% 3 Barefoot 10% 11% 16% 28 Fuzion Zuccardi 9% 5% 5% 4 Jacob's Creek 9% 14% 15% 29 Wayne Gretzky Estates n/a 2% 4% n/a 5 Apothic 4% 9% 10% 30 XOXO n/a n/a 4% n/a n/a 6 Naked Grape 12% 10% 10% 31 J.P. Chenet 5% 5% 4% 7 Peller Estates 9% 6% 9% 32 Robert Mondavi 5% 4% 4% 8 Sawmill Creek 9% 7% 9% 33 Mission Hill 5% 4% 4% 9 Woodbridge 9% 7% 9% 34 Santa Carolina 4% 2% 4% 10 Gallo Family Vineyards 9% 9% 9% 35 Rosemount Estate 5% 2% 4% 11 Bodacious 3% 4% 9% 36 Nicolas Laloux n/a n/a 3% n/a n/a 12 Oyster Bay 4% 5% 8% 37 Torres 5% 3% 3% 13 Kim Crawford 6% 8% 8% 38 Gato Negro 3% 3% 3% 14 Casillero del Diablo 6% 5% 7% 39 Cupcake 4% 4% 3% 15 Ménage à Trois 6% 7% 7% 40 Revolution n/a n/a 3% n/a n/a 16 Pelee Island 7% 5% 7% 41 Frontera 2% 2% 3% 17 Copper Moon n/a 6% 7% n/a 42 Campo Viejo 1% 2% 2% 18 Inniskillin 7% 5% 6% 43 Ravenswood 2% 3% 2% 19 Ruffino n/a 5% 6% n/a 44 Hardys 2% 2% 2% 20 Masi 7% 7% 6% 45 Peter Lehmann n/a 1% 2% n/a 21 Wallaroo Trail 4% 4% 6% 46 Les Dauphins n/a 1% 2% n/a 22 Wolf Blass 7% 7% 6% 47 Domaine D’or 2% 2% 1% 23 Two Oceans 6% 4% 6% 48 Monkey Bay 1% 2% 1% 24 Beringer n/a 6% 6% n/a 49 Fetzer 2% 3% 1% 25 Lindeman's 7% 5% 6% 50 McWilliam's 2% 1% 1%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 39 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers BRAND HEALTH: CONVERSION
Conversion rates remained broadly stable, with the exception of domestic brand Jackson-Triggs experiencing both long- and short-term increases in converting those who are aware into users Results for all 55 brands Conversion: Tracking available in the data % who have bought the following brands in the past 3 months table Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 30% 27% 36% 26 Gallo Family Vineyards 16% 18% 18% 2 Yellow Tail 39% 31% 33% 27 Woodbridge 20% 14% 18% 3 Revolution n/a n/a 29% n/a n/a 28 Sawmill Creek 17% 14% 17% 4 Apothic 29% 30% 26% 29 Beringer n/a 20% 17% n/a 5 Barefoot 24% 22% 26% 30 Oyster Bay 14% 12% 17% 6 Trapiche 21% 25% 26% 31 Torres 19% 14% 16% 7 Bodacious 25% 17% 25% 32 Inniskillin 17% 13% 16% 8 Masi 29% 28% 25% 33 Les Dauphins n/a 16% 15% n/a 9 Nicolas Laloux n/a n/a 24% n/a n/a 34 Mouton Cadet 16% 15% 15% 10 XOXO n/a n/a 24% n/a n/a 35 Campo Viejo 14% 16% 15% 11 Jacob's Creek 16% 25% 23% 36 Lindeman's 19% 14% 15% 12 Copper Moon n/a 21% 23% n/a 37 Ravenswood 15% 19% 14% 13 Wallaroo Trail 23% 18% 22% 38 Wolf Blass 19% 17% 14% 14 J.P. Chenet 24% 24% 21% 39 Farnese n/a n/a 14% n/a n/a 15 Casillero del Diablo 18% 17% 20% 40 McWilliam's 16% 13% 13% 16 Santa Carolina 20% 16% 20% 41 Gato Negro 14% 12% 13% 17 Pelee Island 20% 15% 19% 42 Rosemount Estate 16% 9% 12% 18 Two Oceans 19% 13% 19% 43 Mission Hill 14% 13% 12% 19 Peller Estates 19% 12% 19% 44 Robert Mondavi 17% 12% 11% 20 Kim Crawford 29% 22% 19% 45 Hardys 13% 12% 11% 21 Frontera 18% 21% 18% 46 Cupcake 22% 15% 11% 22 Naked Grape 22% 20% 18% 47 Wakefield 15% 11% 11% 23 Ménage à Trois 26% 19% 18% 48 Peter Lehmann n/a 9% 11% n/a 24 Fuzion Zuccardi 27% 17% 18% 49 Wayne Gretzky Estates n/a 7% 11% n/a 25 Ruffino n/a 16% 18% n/a 50 Aveleda n/a n/a 11% n/a
= s, = small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 40 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers BRAND HEALTH: CONSIDERATION
Italian brand Masi and domestic brand Jackson-Triggs are the top brands for consideration, showing connection with two thirds of Canadian consumers. Since 2017, most top brands have experienced significant increases in the proportion of consumers who would consider buying them Results for Consideration: Tracking all 55 brands % who would consider buying the following brands available Base = Those who have heard of each brand in the data Rank Tracking Rank Tracking table Brand 2017 2019 Brand 2017 2019 2019 vs. '17 2019 vs. '17 Due to 1 Masi 63% 66% 26 Beringer 56% 57% methodology 2 Jackson-Triggs 64% 66% 27 Lindeman's 55% 56% changes, 3 Pelee Island 55% 64% 28 Trapiche 52% 55% brand 4 Yellow Tail 64% 64% 29 Ruffino 49% 55% consideration 5 Peller Estates 56% 64% 30 Rosemount Estate 52% 55% tracking for 6 Apothic 61% 63% 31 Inniskillin 54% 54% 7 Jacob's Creek 57% 62% 32 Hardys 49% 54% 2014 is not 8 Wolf Blass 61% 62% 33 Gallo Family Vineyards 46% 53% available 9 Copper Moon 52% 61% 34 Frontera 47% 53% 10 Peter Lehmann 53% 61% 35 Mission Hill 55% 52% 11 Two Oceans 52% 61% 36 Wallaroo Trail 50% 52% 12 Bodacious 53% 60% 37 J.P. Chenet 53% 52% 13 McWilliam's 46% 60% 38 Les Dauphins 40% 52% 14 Sawmill Creek 53% 59% 39 Casillero del Diablo 51% 51% 15 Santa Carolina 51% 59% 40 Fuzion Zuccardi 52% 50% 16 Barefoot 53% 59% 41 Wayne Gretzky Estates 46% 50% 17 Woodbridge 55% 59% 42 Cupcake 50% 50% 18 Naked Grape 53% 59% 43 Revolution n/a 49% n/a 19 Kim Crawford 52% 59% 44 Campo Viejo 54% 49% 20 Robert Mondavi 52% 58% 45 George Wyndham 50% 49% 21 Oyster Bay 50% 57% 46 Monkey Bay 47% 47% 22 Mouton Cadet 53% 57% 47 Farnese n/a 46% n/a 23 Ravenswood 57% 57% 48 Nicolas Laloux n/a 46% n/a 24 XOXO n/a 57% n/a 49 Torres 50% 46% 25 Ménage à Trois 54% 57% 50 Gato Negro 46% 46%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 41 Wine Intelligence Vinitrac® Canada, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers BRAND HEALTH: AFFINITY
Regular wine drinkers in Canada show the most affinity towards domestic brand Jackson- Triggs, followed by Masi and Yellow Tail, with many brands experiencing a significant increase in the proportion of those who feel the brands are right for people like them Results for all 55 brands Affinity: Tracking available in the data % who think the following brands are right for people like them table Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 48% 47% 56% 26 McWilliam's 40% 33% 39% 2 Masi 48% 47% 51% 27 Two Oceans 34% 32% 38% 3 Yellow Tail 52% 50% 50% 28 Lindeman's 31% 38% 38% 4 Apothic 39% 45% 49% 29 Mission Hill 35% 41% 38% 5 Copper Moon n/a 40% 49% n/a 30 Casillero del Diablo 27% 37% 37% 6 Pelee Island 41% 43% 48% 31 Gallo Family Vineyards 30% 29% 37% 7 Jacob's Creek 34% 44% 47% 32 Hardys 31% 34% 37% 8 Barefoot 35% 39% 46% 33 Ravenswood 28% 40% 37% 9 Bodacious 27% 40% 45% 34 Peter Lehmann n/a 33% 36% n/a 10 Peller Estates 39% 36% 45% 35 Frontera 29% 32% 36% 11 Sawmill Creek 33% 38% 44% 36 Revolution n/a n/a 36% n/a n/a 12 Naked Grape 41% 42% 43% 37 Gato Negro 29% 28% 36% 13 Wolf Blass 42% 44% 43% 38 Cupcake 25% 35% 36% 14 Farnese n/a n/a 42% n/a n/a 39 Les Dauphins n/a 30% 35% n/a 15 Trapiche 31% 35% 41% 40 Rosemount Estate 29% 30% 34% 16 Inniskillin 36% 36% 41% 41 J.P. Chenet 29% 28% 34% 17 Woodbridge 32% 37% 41% 42 Fuzion Zuccardi 33% 33% 33% 18 Mouton Cadet 35% 41% 41% 43 Wayne Gretzky Estates n/a 28% 33% n/a 19 Oyster Bay 32% 34% 40% 44 XOXO n/a n/a 33% n/a n/a 20 Robert Mondavi 34% 33% 40% 45 Campo Viejo 26% 35% 33% 21 Beringer n/a 41% 39% n/a 46 Wallaroo Trail 29% 31% 32% 22 Santa Carolina 36% 37% 39% 47 Wakefield 14% 36% 32% 23 Ruffino n/a 35% 39% n/a 48 Torres 30% 32% 31% 24 Kim Crawford 38% 38% 39% 49 Aveleda n/a n/a 31% n/a n/a 25 Ménage à Trois 32% 35% 39% 50 Fetzer 24% 28% 30%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 42 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers BRAND HEALTH: RECOMMENDATION
Brand recommendation tracking has remained broadly stable, with the exception of Oyster Bay experiencing both long- and short-term significant increases in the proportion of those who would recommend the brand to a friend Results for all 55 brands Recommendation: Tracking available in the data % who would recommend the following brands to a friend table Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 45% 45% 46% 26 J.P. Chenet 30% 29% 32% 2 Yellow Tail 48% 43% 43% 27 Mission Hill 29% 31% 31% 3 Apothic 38% 41% 41% 28 Santa Carolina 32% 27% 31% 4 Masi 52% 46% 40% 29 Les Dauphins n/a 22% 31% n/a 5 Mouton Cadet 37% 38% 40% 30 Beringer n/a 36% 31% n/a 6 Jacob's Creek 36% 38% 39% 31 XOXO n/a n/a 30% n/a n/a 7 Barefoot 33% 33% 38% 32 Casillero del Diablo 28% 34% 29% 8 Pelee Island 39% 36% 38% 33 Ravenswood 28% 30% 29% 9 Wolf Blass 42% 42% 38% 34 Gallo Family Vineyards 29% 24% 29% 10 Kim Crawford 41% 35% 38% 35 Wallaroo Trail 32% 28% 28% 11 Peller Estates 36% 31% 37% 36 Wayne Gretzky Estates n/a 23% 27% n/a 12 Trapiche 32% 33% 36% 37 Torres 27% 30% 27% 13 Ménage à Trois 33% 33% 35% 38 Hardys 25% 27% 26% 14 Oyster Bay 26% 28% 35% 39 Cupcake 27% 27% 26% 15 Robert Mondavi 35% 32% 35% 40 Farnese n/a n/a 26% n/a n/a 16 Bodacious 21% 28% 35% 41 Frontera 23% 24% 25% 17 Woodbridge 36% 30% 35% 42 Gato Negro 22% 24% 25% 18 Ruffino n/a 27% 35% n/a 43 Peter Lehmann n/a 22% 25% n/a 19 Copper Moon n/a 29% 35% n/a 44 Rosemount Estate 29% 24% 25% 20 Two Oceans 32% 27% 34% 45 Fuzion Zuccardi 31% 27% 24% 21 Lindeman's 33% 33% 34% 46 McWilliam's 39% 30% 24% 22 Revolution n/a n/a 34% n/a n/a 47 Campo Viejo 24% 28% 24% 23 Naked Grape 34% 29% 33% 48 Nicolas Laloux n/a n/a 24% n/a n/a 24 Sawmill Creek 29% 27% 33% 49 Fetzer 24% 22% 23% 25 Inniskillin 32% 32% 32% 50 George Wyndham n/a 24% 22% n/a
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 43 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=1,000 Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
44 ENGLISH-SPEAKING CANADA VS QUÉBEC
The historical division between French-founded Québec and the English-speaking Provinces has impacted key areas of society, such as cultural heritage, politics, economics and law
Differences have also resulted in distinct wine markets and consumer profiles. Therefore, wine consumption and purchase habits, as well as attitudes towards wine, are presented comparing English-speaking Canada and Québec in this report
75% of Canadian regular wine drinkers, English-speaking Canada approximately 12.6 million adults, are based in English-speaking Canada Québec
25% of Canadian regular wine drinkers, approximately 4.2 million adults, are based in Québec
45 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers DEMOGRAPHICS OF CANADIAN REGULAR WINE DRINKERS
English-speaking RWDs drink wine the most frequently. Both English-speaking and Québécois are demographically similar to all Canadian regular wine drinkers, with a higher proportion of Québécois aged 65 and over
Average consumption wine frequency (per month)
Base = All Canadian regular wine drinkers (n=1,000) H G I H
8.5 9.5 9.9 LOW
0 times / 25 times month Québécois All English- / month RWDs Canadian speaking RWDs RWDs
Age Gender
17% 19% 20%19% 19% 26% 65 and over 65 and over 65 and over 18% 17%18% 18%18% 55-64 55-6413% 55-64 17% 17%19% 19% 19% 45-54 45-5418% 45-54 16% 18%16% 35-4418%16% 35-4416% 35-44 51% 49% 50% 50% 54% 46% All50% Canadian regular50% 50%English-speaking50% 50%Québécois50% 19% 19% 25-3422%19% 25-34 25-34 22% 22% wine drinkers Canadians n=250 19-24 19-24 19-24 n=750 9% 7% 9% 7% 9% 5% n=1,000 2014 All Canadian20192014 regular English2019-speaking2014 Québécois2019 wine drinkers Canadians n=1,000 n=750 n=250
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level RWDs = regular wine drinkers (those who drink wine at least once per month) 46 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers ATTITUDES TOWARDS WINE
Québécois drinkers are more likely to claim that they are experimental in terms of their wine choices whereas English-speaking regular wine drinkers’ attitudes are similar to those of all Canadian regular wine drinkers
Attitude towards wine: English-speaking Canadian vs Québécois Base = All Canadian regular wine drinkers (n=1,000)
All Canadian regular English-speaking Québécois Attitude towards wine wine drinkers Canadian n= 1,000 750 250 I enjoy trying new and different styles of wine on a regular basis 51% 48% 59% I don't mind what I buy so long as the price is right 26% 27% 21% I know what I like and I tend to stick to what I know 24% 25% 20%
Wine involvement: English-speaking Canadian vs Québécois Wine involvement is calculated Base = All Canadian regular wine drinkers (n=1,000) by collating data from those who agree or strongly agree All Canadian regular English-speaking with the following statements: Québécois Wine involvement wine drinkers Canadian 1. I have strong interest in n= 1,000 750 250 wine 2. I like to take my time when High involvement 37% 35% 40% I purchase a bottle of wine Medium involvement 45% 46% 41% 3. Wine is important to my Low involvement 18% 18% 19% lifestyle 4. Drinking wine gives me pleasure
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 47 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers INVOLVEMENT AND PERCEIVED EXPERTISE IN WINE
Québécois regular wine drinkers are less likely than all Canadian regular wine drinkers to consider wine to be a reasonably priced beverage
Involvement and perceived expertise in wine: English-speaking Canadian vs Québécois % who 'agree' or 'strongly agree' with the following statements Base = All Canadian regular wine drinkers (n=1,000)
All Canadian regular English-speaking Québécois 2019 Wine involvement statements wine drinkers Canadian n= 1,000 750 250 1 Drinking wine gives me pleasure 85% 85% 85% 2 I always look for the best quality wines I can get for my budget 76% 76% 75% 3 Deciding which wine to buy is an important decision 62% 62% 61% 4 I like to take my time when I purchase a bottle of wine 62% 61% 64% 5 Generally speaking, wine is reasonably priced 55% 59% 44% 6 I have a strong interest in wine 50% 49% 54% 7 Wine is important to me in my lifestyle 49% 48% 53% 8 I feel competent about my knowledge of wine 38% 39% 34% 9 Compared to others, I know less about the subject of wine 37% 38% 35% 10 Generally speaking, wine is an expensive drink 36% 34% 43% 11 I don’t understand much about wine 25% 27% 19%
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 48 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers CONFIDENCE AND KNOWLEDGE INDEX
Though they index significantly lower in wine knowledge, Québécois regular wine drinkers have the same level of confidence as all Canadian regular wine drinkers
Wine knowledge index: English-speaking Canadian vs Québécois Wine knowledge index (0-100) is calculated based on consumer-reported awareness of wine-producing countries, wine-growing regions and wine brands Base = All Canadian regular wine drinkers (n=1,000)
All Canadian Regular wine Regular wine regular wine drinkers in English- drinkers in drinkers speaking Canada Québec
35.0 36.1 31.8
Wine confidence index : English-speaking Canadian vs Québécois Wine confidence index (0-100) is calculated based on the extent to which consumers feel competent about their wine knowledge Base = All Canadian regular wine drinkers (n=1,000) Wine confidence index uses consumers’ answers to three All Canadian Regular wine Regular wine attitudinal statements: regular wine drinkers in English- drinkers in 1. I feel competent about my knowledge of wine drinkers speaking Canada Québec 2. Compared to others, I know less about the subject of wine 52.2 52.2 52.1 3. I don’t understand much about wine
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 49 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE The proportion of Québécois regular wine drinkers enjoying red wine, rosé, other types of sparkling wine and Port is significantly higher than that of all Canadian regular wine drinkers
Alcoholic beverage repertoire: Top 20 % who have drunk the following alcoholic beverages in the past 12 months Base = All Canadian regular wine drinkers (n=1,000)
All Canadian regular English-speaking Beverage Québécois 2019 wine drinkers Canadian n= 1,000 750 250 1 Red wine 85% 83% 90% 2 White wine 81% 81% 83% 3 Beer 74% 73% 76% 4 Vodka 49% 51% 43% 5 Rum 43% 42% 44% 6 Whisky / Whiskey 41% 43% 38% 7 Craft beer 40% 41% 38% 8 Rosé wine 39% 36% 46% 9 Liqueurs 30% 29% 31% 10 Pre-mixed / ready to drink alcoholic beverages 29% 31% 23% 11 Cocktails 28% 29% 24% 12 Gin 26% 25% 29% 13 Cider 26% 27% 20% 14 Champagne (French Champagne) 25% 26% 22% 15 Prosecco 19% 20% 15% 16 Other sparkling wine 19% 16% 28% 17 Brandy / Cognac 14% 13% 18% 18 Sweet / dessert wine 13% 13% 13% 19 Port 11% 8% 19% 20 Sherry 4% 4% 6% 21 Cava 4% 4% 4%
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 50 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers COUNTRY OF ORIGIN CONSUMPTION
English-speaking Canadian regular wine drinkers are more likely to purchase locally- produced wine, while Québécois drinkers are more likely to consume wine from European sources
Country of origin consumption: English-speaking Canadian vs Québécois % who have drunk wine from the following places in past 6 months Base = All Canadian regular wine drinkers (n=1,000)
All Canadian regular English-speaking Country of origin consumption Québécois 2019 wine drinkers Canadian n= 1,000 750 250 1 Canada 62% 71% 32% 2 California – USA 44% 47% 34% 3 France 42% 37% 57% 4 Italy 42% 38% 54% 5 Australia 31% 33% 26% 6 Spain 22% 19% 30% 7 Chile 21% 22% 18% 8 Argentina 16% 17% 13% 9 Portugal 14% 11% 22% 10 New Zealand 14% 16% 7% 11 South Africa 13% 15% 9% 12 Germany 11% 11% 11% 13 Other USA (outside of California) 8% 9% 8% 14 Greece 3% 2% 5% 15 Switzerland 2% 2% 2%
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 51 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers REGION OF ORIGIN CONSUMPTION
Similarly to country of origin consumption, Québécois are more likely to consume wine from French wine-producing regions than all Canadian regular wine drinkers
Region of origin consumption: English-speaking Canadian vs Québécois % who have bought wine from the following wine-producing regions in past 3 months Base = All Canadian regular wine drinkers (n=1,000) All Canadian regular English-speaking Region of origin consumption Québécois 2019 wine drinkers Canadian n= 1,000 750 250 1 Napa Valley 23% 26% 12% 2 Bordeaux 22% 16% 38% 3 Niagara Peninsula 20% 24% 9% 4 Okanagan 20% 24% 5% 5 Chianti 13% 9% 23% 6 Tuscany 12% 12% 14% 7 Côtes du Rhône 10% 6% 22% 8 Champagne 9% 10% 7% 9 Beaujolais 9% 5% 18% 10 Prince Edward County 8% 10% 2% 11 Burgundy 7% 8% 5% 12 Sicily 7% 6% 8% 13 Bourgogne 6% 3% 17% 14 Sonoma 6% 7% 4% 15 Rioja 5% 5% 7%
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 52 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers WINE-BUYING CHOICE CUES
The proportion of Québécois regular wine drinkers that consider a variety of factors such as brand, country of origin and region of origin important when purchasing wine is significantly higher than that of Canadian regular wine drinkers
Wine-buying choice cues: English-speaking Canadian vs Québécois % who indicate each of the following factors is 'important' or 'very important' when buying wine Base = All Canadian regular wine drinkers (n=1,000) All Canadian regular English-speaking Rank in Québécois Choice cues wine drinkers Canadian 2018 n= 1,000 750 250 1 Grape variety 74% 73% 77% 2 A brand I am aware of 69% 66% 76% 3 The country of origin 67% 64% 76% 4 Taste or wine style descriptions 66% 65% 69% 5 Recommendation by friend or family 66% 66% 65% 6 Promotional offer 66% 66% 66% 7 Wine that matches or compliments food 65% 64% 68% 8 The region of origin 62% 59% 72% 9 Recommendations from shop staff 48% 45% 58% 10 Alcohol content 47% 44% 54% 11 Appeal of the bottle and / or label design 39% 40% 35% 12 Recommendation by wine critic or writer 34% 29% 49% 13 Recommendation by wine guide books 32% 28% 42% 14 Whether or not the wine has won a medal or award 28% 24% 38%
% / % : Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 53 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
54 HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
Québécois regular wine drinkers are more likely to consume rosé wine compared to all Canadian regular wine drinkers due to consumer preference for European wines
Rosé consumption Gender of Québécois rosé drinkers % who have drunk rosé wine in the past 12 months Base = All Canadian regular wine drinkers (n=1,000) Base = All Canadian regular wine drinkers (n=1,000) We always had a lot of rosé in Québec, we’ve always had a All regular wine drinkers in 39% good base. Our goal today is to Canada normalize it and to have it not only in summer and to make it English-speaking regular wine 36% work all year round drinkers in Canada 48% 52% Wine Buyer, Canada French-speaking regular wine 46% 54% 46% drinkers in Canada Age of Québécois rosé drinkers Attitudes towards wine: Québécois rosé drinkers Base = All Canadian regular wine drinkers (n=1,000) Base = All Canadian regular wine drinkers (n=1,000) 65 and over 17% 12%20% 15% 26% 17% 15% 55-6465 and over 20% 18% 12% II enjoyenjoy trying trying new new and and different different 13% 14% styles of wine on a regular basis 45-5455-64 styles of wine on a regular basis 17% 19% 18% 19% 35-4445-54 II don'tdon't mind mind what what I Ibuy buy so so long long as as 18%16% 23% 21% 35-44 thethe price price is is rightright 28% 25-34 21% 22% 22% 26% 57% 25-34 7% 13% 19-24 64% II knowknow whatwhat I I like like and and I Itend tend to to stick stick 5% 5% 59% toto what what II knowknow All regular wine Rosé drinkers in 19-24 drinkers in English-speakingQuébec Wine Intelligence trade interview program % = all Québécois regular wine drinkers English-speakingQuébec Canada Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level Canada 55 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
Unsurprisingly, Québécois rosé drinkers are more likely to have drunk rosé from France compared with all Canadian rosé drinkers
Country of origin consumption for rosé wine % who have drunk rosé wine from the following places in the past 6 months Base = All Canadian regular wine drinkers who have consumed rosé wine in the past 12 months
All Canadian regular English-speaking 2019 Country of origin consumption Québécois wine drinkers Canadian 1 Canada 17% 19% 12% 2 France 10% 7% 19% 3 California – USA 10% 10% 10% 4 Italy 6% 5% 9% 5 Spain 4% 3% 6% 6 Australia 3% 4% 2% 7 Portugal 2% 2% 1% 8 New Zealand 2% 2% 2% 9 Other USA (outside of California) 2% 1% 4% 10 Chile 2% 2% 1% 11 Argentina 1% 1% 2% 12 South Africa 1% 2% 1% 13 Germany 1% 1% 2% 14 Greece 1% 1% 3% 15 Switzerland 1% 1% 0%
Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 56 Wine Intelligence Vinitrac® Canada, Oct’19, n=1,000 Canadian regular wine drinkers HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
Québécois rosé consumers are less likely to consume locally-produced rosé and more likely to consume French rosé
Country of origin conversion for rosé wine % who have drunk rosé wine from the following places in the past 6 months Base = Canadian regular wine drinkers who have consumed rosé wine in the past 12 months and who have heard of each wine-producing place
All Canadian regular English-speaking 2019 Country of origin conversion Québécois wine drinkers Canadian 1 Canada 56% 60% 43% 2 California – USA 34% 33% 36% 3 France 33% 25% 54% 4 Italy 20% 17% 28% 5 Spain 14% 11% 24% 6 Australia 13% 15% 9% 7 Other USA (outside of California) 13% 9% 29% 8 Portugal 10% 11% 6% 9 New Zealand 10% 10% 10% 10 Switzerland 8% 10% 0% 11 Greece 7% 4% 20% 12 Chile 7% 7% 6% 13 South Africa 6% 7% 3% 14 Argentina 6% 5% 12% 15 Germany 6% 4% 14%
= small sample size Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 57 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
Québécois rosé drinkers are less likely to consume rosé wine from the domestic region of Okanagan and from the Italian region of Tuscany compared with all Canadian rosé drinkers
Region of origin consumption for rosé wine: Top 15 % who have bought rosé wine from the following wine-growing regions in past 6 months Base = All Canadian regular wine drinkers who have consumed rosé wine in the past 12 months
All Canadian regular English-speaking 2019 Region of origin consumption Québécois wine drinkers Canadian 1 Napa Valley 6% 7% 5% 2 Niagara Peninsula 6% 6% 4% 3 Okanagan 6% 7% 2% 4 Bordeaux 3% 3% 5% 5 Provence 3% 2% 5% 6 Prince Edward County 3% 3% 2% 7 Tuscany 2% 3% 0% 8 Champagne 2% 2% 2% 9 Sicily 2% 2% 1% 10 Burgundy 1% 2% 0% 11 Sonoma 1% 1% 2% 12 Châteauneuf du Pape 1% 2% 0% 13 Bourgogne 1% 1% 1% 14 Vin de Pays d'Oc 1% 1% 2% 15 Chablis 1% 1% 1%
= small sample size Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 58 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
No significant differences between English- and French-speaking Canadian regular wine drinkers, with domestic region Niagara Peninsula being the most popular overall for rosé purchase
Region of origin conversion for rosé wine: Top 15 % who have bought rosé wine from the following wine-growing regions in past 6 months Base = Canadian regular wine drinkers who have consumed rosé wine in the past 12 months and who have heard of each wine-producing region
All Canadian regular English-speaking 2019 Region of origin conversion Québécois wine drinkers Canadian 1 Niagara Peninsula 27% 29% 21% 2 Okanagan 24% 28% 12% 3 Napa Valley 23% 24% 19% 4 Prince Edward County 18% 18% 18% 5 Maipo 14% 19% 0% 6 Provence 14% 12% 19% 7 Vin de Pays d'Oc 14% 19% 9% 8 Roussillon 12% 13% 12% 9 Bordeaux 12% 11% 13% 10 Hawke’s Bay 12% 15% 0% 11 Corbières 11% 17% 4% 12 Marlborough 10% 10% 11% 13 Mendoza 10% 11% 8% 14 Languedoc 10% 5% 13% 15 Châteauneuf du Pape 9% 14% 2%
= small sample size 59 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers HOT TOPIC: WHO ARE QUÉBÉCOIS ROSÉ DRINKERS?
Québécois rosé consumers are driven by the same choice cues as all Canadian regular rosé wine drinkers, primarily driven by taste descriptors, varietals, and promotional offers
Rosé wine-buying choice cues % who indicate each of the following factors is 'important' or 'very important' when buying rosé wine Base = All Canadian regular wine drinkers who have consumed rosé wine in the past 12 months
Rank in All Canadian regular English-speaking Choice Cues Québécois 2019 wine drinkers Canadian 1 Taste or wine style descriptions displayed in store 67% 68% 66% 2 Promotional offer 67% 68% 65% 3 Grape variety 66% 65% 68% 4 Taste or wine style descriptions on wine labels 66% 66% 64% 5 Recommendation by friend or family 65% 67% 61% 6 Wine that matches or compliments food 63% 62% 64% 7 The country of origin 61% 58% 68% 8 A brand I am aware of 59% 56% 67% 9 Taste or wine style descriptions on restaurant menus 56% 56% 56% 10 A large range of rosé wines available to choose from 54% 53% 56% 11 The region of origin 52% 49% 60% 12 Recommendations from shop staff or shop leaflets 49% 48% 52% 13 Alcohol content 47% 47% 48% 14 Appeal of the bottle and / or label design 43% 45% 38% 15 Recommendation by wine critic or writer 36% 33% 44% 16 Recommendation by wine guide books 34% 29% 45% 17 Whether or not the wine has won a medal or award 29% 28% 33%
Red / Blue Statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 60 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
61 ENGLISH-SPEAKING CANADA
The historical division between French-founded Québec and the English-speaking Provinces has impacted key areas of society, such as cultural heritage, politics, economics and law
Differences have also resulted in distinct wine markets and consumer profiles. Therefore, wine consumption and purchase habits, as well as attitudes towards wine, are presented comparing English-speaking Canada and Québec in this report
75% of Canadian regular wine drinkers, English-speaking Canada approximately 12.6 million adults, are based in English-speaking Canada Québec
25% of Canadian regular wine drinkers, approximately 4.2 million adults, are based in Québec
62 Wine Intelligence Vinitrac® Canada, Oct’19, n=1,000 Canadian regular wine drinkers DEMOGRAPHICS OF ENGLISH-SPEAKING CANADIAN REGULAR WINE DRINKERS Although the majority of English-speaking Canadian regular wine drinkers are from Ontario, the proportion of regular wined drinkers in Alberta has significantly grown since 2014 along with that of higher earners
Gender Age Portraits
17% 19% 2017 2019 65 and over Engaged Explorers 9% 8% 18% 18% Enthusiastic Treaters 9% 9% 55-64 Mainstream Matures 18% 23% 17% 19% 45-54 Social Newbies 23% 21% 18% Contented Occasionals 17% 15% 2019 50% 50% 16% 35-44 Kitchen Casuals 24% 24% 2014 50% 50% 19% 22% 25-34
9% 7% 19-24 2014 tracking for Canada Portraits unavailable. For more information on Portraits 2014 2019 segmentation, please refer to page 132
Regions Total household income (before tax) 2014 2019 Ontario 54% 51% 2014 2019 British Columbia 19% 17% Under $20,000 5% 3% Alberta 10% 14% $20,000 - $39,999 13% 11% Manitoba 6% 8% $40,000 - $59,999 23% 19% Nova Scotia 3% 4% $60,000 - $79,999 15% 17% Saskatchewan 3% 4% $80,000 - $99,999 15% 15% New Brunswick 2% 1% $100,000 - $119,999 9% 10% Newfoundland and Labrador 1% 1% $120,000+ 12% 19% Prince Edward Island 1% 1% Prefer not to answer 9% 5% Yukon 0% 0% %: Data from 2014 / : statistically significantly higher / lower than previous waves at a 95% confidence level 63 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers WINE CONSUMPTION FREQUENCY
Wine consumption frequency is increasing in English-speaking Canada, with significantly higher proportions of English-speaking regular wine drinkers consuming wine twice a week or more
Wine consumption frequency of English-speaking Canadians: Tracking % who usually drink wine at the following frequency Base = All English-speaking Canadian regular wine drinkers (n>=744)
2014 2017 2019 Tracking n= 744 746 750 vs. '14 vs. '17 Most days / every day 10% 10% 12% 2-5 times a week 37% 32% 37% About once a week 28% 31% 29% 1-3 times a month 25% 27% 22%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 64 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers ATTITUDES TOWARDS WINE
Just under half of English-speaking Canadian regular wine drinkers display an adventurous attitude towards wine, being willing to try new styles on a regular basis. The proportion of those with low wine involvement has dropped in the long- and short-term
Attitude towards wine of English-speaking Canadians: Tracking Base = All English-speaking Canadian regular wine drinkers (n>=744)
2014 2017 2019 Tracking n= 744 746 750 vs. '14 vs. '17 I enjoy trying new and different styles of wine on a regular basis 49% 49% 48% I don't mind what I buy so long as the price is right 25% 27% 27% I know what I like and I tend to stick to what I know 26% 24% 25%
Wine involvement of English-speaking Canadians: Tracking Base = All English-speaking Canadian regular wine drinkers (n>=744) Wine involvement is calculated by collating data from those who agree or strongly agree 2014 2017 2019 Tracking with the following statements: n= 744 746 750 vs. '14 vs. '17 1. I have strong interest in High involvement 34% 32% 35% wine Medium involvement 42% 43% 46% 2. I like to take my time when I purchase a bottle of wine Low involvement 25% 24% 18% 3. Wine is important to my lifestyle 4. Drinking wine gives me pleasure
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 65 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers INVOLVEMENT AND PERCEIVED EXPERTISE IN WINE
More than 8 out of 10 English-speaking Canadian regular wine drinkers agree that drinking wine gives them pleasure, significantly rising in the long- and short-term
Involvement and perceived expertise in wine of English-speaking Canadians: Tracking % who 'agree' or 'strongly agree' with the following statements Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 2019 n= 744 746 750 vs. '14 vs. '17 1 Drinking wine gives me pleasure 81% 79% 85% 2 I always look for the best quality wines I can get for my budget 72% 75% 76% 3 Deciding which wine to buy is an important decision 63% 62% 62% 4 I like to take my time when I purchase a bottle of wine 63% 58% 61% 5 Generally speaking, wine is reasonably priced 57% 55% 59% 6 I have a strong interest in wine 47% 45% 49% 7 Wine is important to me in my lifestyle 45% 47% 48% 8 I feel competent about my knowledge of wine 35% 43% 39% 9 Compared to others, I know less about the subject of wine 37% 41% 38% 10 Generally speaking, wine is an expensive drink 31% 36% 34% 11 I don’t understand much about wine 26% 29% 27%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 66 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers CONFIDENCE AND KNOWLEDGE INDEX
Recalled wine knowledge has significantly increased among English-speaking Canadian regular wine drinkers since 2014, though confidence levels have remained stable
Wine knowledge index of English-speaking Canadians: Tracking Wine knowledge index (0-100) is calculated based on consumer-reported awareness of wine-producing countries, wine-growing regions and wine brands Base = All English-speaking Canadian regular wine drinkers (n>=744)
2014 Index 2019 difference
28.8 +7.3 36.1
Wine confidence index of English-speaking Canadians: Tracking Wine confidence index (0-100) is calculated based on the extent to which consumers feel competent about their wine knowledge Base = All English-speaking Canadian regular wine drinkers (n>=744) Wine confidence index uses consumers’ answers to three attitudinal statements: Index 1. I feel competent about 2014 2019 my knowledge of wine difference 2. Compared to others, I know less about the 52.1 +0.1 52.2 subject of wine 3. I don’t understand much about wine
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 67 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers VIEWS ON WINE CLOSURES
The proportion of consumers who don’t like buying wine with a screw-cap has significantly decreased since 2014; accordingly, the proportion of those who don’t like buying wine with a natural cork has increased
Views on wine closures of English-speaking Canadians: Tracking Base = All English-speaking Canadian regular wine drinkers (n>=744)
Closures 2014 2017 2019 Tracking Closures n= 744 746 750 vs. '14 vs. '17 I don't like buying wine with this closure 14% 9% 10% Screw-cap Neutral 48% 52% 48% I like buying wine with this closure 38% 39% 42% I don't like buying wine with this closure 14% 13% 11% Synthetic cork Neutral 65% 67% 68% I like buying wine with this closure 21% 20% 21% I don't like buying wine with this closure 6% 7% 8% Natural cork Neutral 44% 50% 45% I like buying wine with this closure 51% 43% 47%
Screw-cap in Ontario is very welcomed. For an easy drinking white wine, screw-cap is welcomed. We have great wines at $40-$50 in a screw cap and the consumer doesn’t notice. There’s no difference between a screw-cap and a cork to them Director of Wine and Spirits Agency, Canada
Wine Intelligence trade interview program / : statistically significantly higher / lower than previous waves at a 95% confidence level 68 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
Similar to the population of Canada as a whole, English-speaking Canadian regular wine drinkers prefer red wine, closely followed by white wine and beer
Alcoholic beverage repertoire of English-speaking Canadians: Top 20 % who have drunk the following alcoholic beverages in the past 12 months Base = All English-speaking Canadian regular wine drinkers (n=750)
Red wine 83% White wine 81% Beer 73% Vodka 51% Whisky / Whiskey 43% Rum 42% Craft beer 41% Rosé wine 36% Pre-mixed alcoholic beverages 31% Cocktails 29% Liqueurs 29% Cider 27% Champagne (French Champagne) 26% Gin 25% Prosecco 20% Other sparkling wine 16% Brandy / Cognac 13% Sweet / dessert wine 13% Port 8% Sherry 4%
69 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
Beer, craft beer, French Champagne and Prosecco have enjoyed a long period of growth within the repertoires of English-speaking Canadian regular wine drinkers, while many other beverages have experienced a long-term decline
Alcoholic beverage repertoire of English-speaking Canadians: Top 20 tracking % who have drunk the following alcoholic beverages in the past 12 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 Red wine 81% 85% 83% 2 White wine 84% 83% 81% 3 Beer 67% 76% 73% 4 Vodka 53% 50% 51% 5 Whisky / Whiskey 45% 38% 43% 6 Rum 48% 43% 42% 7 Craft beer 30% 38% 41% 8 Rosé wine 36% 30% 36% 9 Pre-mixed alcoholic beverages 27% 25% 31% 10 Cocktails 33% 28% 29% 11 Liqueurs 42% 29% 29% 12 Cider 26% 30% 27% 13 Champagne (French Champagne) 21% 25% 26% 14 Gin 25% 22% 25% 15 Prosecco 13% 14% 20% 16 Other sparkling wine 23% 12% 16% 17 Brandy / Cognac 22% 13% 13% 18 Sweet / dessert wine 20% 11% 13% 19 Port 17% 9% 8% 20 Sherry 16% 7% 4%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 70 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers VARIETAL CONSUMPTION
International favourites Sauvignon Blanc, Pinot Grigio, Merlot and Cabernet Sauvignon remain the most widely consumed varietals among English-speaking Canadian regular wine drinkers
White varietal consumption Red varietal consumption % who have drunk the following varietals or wine types in the past 6 months % who have drunk the following varietals or wine types in the past 6 months Base = All English-speaking Canadian regular wine drinkers (n=750) Base = All English-speaking Canadian regular wine drinkers (n=750)
Pinot Grigio / Pinot Gris 53% Merlot 54%
Sauvignon Blanc 49% Cabernet Sauvignon 50%
Pinot Noir Chardonnay 48% 45% Shiraz / Syrah 36% Riesling 35% Malbec 24% Moscato 23% Red blend 24% White blend 22% Zinfandel 20% Gewürztraminer 13% Cabernet Franc 15% Chenin Blanc 7% Baco Noir 10% Sémillon 6% Sangiovese 10% Viognier 4% Grenache 7% Verdejo 4% Tempranillo 7%
Grüner Veltliner 4% Pinotage 6%
Torrontés 3% Carménère 5%
71 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers WHITE VARIETAL CONSUMPTION
Moscato is showing long-term growth in the proportion of consumers drinking it, being the fifth most consumed white varietal, while other varietals are experiencing the opposite effect
White varietal consumption of English-speaking Canadians: Tracking % who have drunk the following varietals or wine types in the past 6 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 Pinot Grigio / Pinot Gris 51% 49% 53% 2 Sauvignon Blanc 50% 49% 49% 3 Chardonnay 54% 50% 48% 4 Riesling 39% 37% 35% 5 Moscato 13% 21% 23% 6 White blend 23% 18% 22% 7 Gewürztraminer 17% 17% 13% 8 Chenin Blanc 11% 8% 7% 9 Sémillon 5% 5% 6% 10 Viognier 8% 7% 4% 11 Verdejo 4% 5% 4% 12 Grüner Veltliner 4% 3% 4% 13 Torrontés 4% 3% 3% 14 Colombard 5% 4% 3% 15 Albariño 2% 4% 3%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 72 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers RED VARIETAL CONSUMPTION
Red varietals Baco Noir and Tempranillo have experienced significant growth in recalled usage, from a small base
Red varietal consumption of English-speaking Canadians: Tracking % who have drunk the following varietals or wine types in the past 6 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking ▪ Baco Noir is a hybrid grape created 2019 n= 744 746 750 vs. '14 vs. '17 by a French botanist in 1902. It is a 1 Merlot 55% 56% 54% cross between Folle Blanche, a vitis 2 Cabernet Sauvignon 48% 51% 50% vinifera species from France, and an 3 Pinot Noir 44% 44% 45% indigenous species from North 4 Shiraz / Syrah 39% 37% 36% America 5 Malbec 26% 28% 24% ▪ Baco Noir is highly resistant to cool 6 Red blend 24% 23% 24% climates and it’s mostly found in 7 Zinfandel 23% 20% 20% Ontario and New York State 8 Cabernet Franc n/a 12% 15% n/a 9 Baco Noir 7% 7% 10% ▪ It’s history and origin explain why 10 Sangiovese 7% 7% 10% Baco Noir is more popular among 11 Grenache 7% 8% 7% English-speaking Canadian regular 12 Tempranillo 6% 4% 7% wine drinkers than among French- 13 Pinotage 9% 6% 6% speaking ones 14 Carménère 6% 7% 5% 15 Gamay 6% 6% 5% 16 Garnacha 4% 5% 4%
Wine Spectator / : statistically significantly higher / lower than previous waves at a 95% confidence level 73 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers COUNTRY OF ORIGIN AWARENESS AND CONSUMPTION
English-speaking Canadian drinkers have a particularly strong connection with locally- produced wines, followed by Californian-produced wines
Country of origin awareness and respective consumption level of English-speaking Canadians Base = All English-speaking Canadian regular wine drinkers (n=750) Canada 71% 86%
Italy 38% 82%
California – USA 47% 81%
France 37% 81%
Spain 19% 72%
Australia 33% 71%
Chile 22% 68%
Argentina 17% 64% % who know the following New Zealand 16% 61% places produce wine South Africa 15% 59% % who have drunk wine from Portugal 11% 58% the following places in past 6 Germany 11% 54% months
Other USA (outside of California) 9% 42%
Greece 2% 41%
Switzerland 2% 24% 74 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers COUNTRY OF ORIGIN AWARENESS
Since 2016, the proportions of consumers aware of France, Australia and Germany as wine-producing places have significantly decreased, with lesser-known wine-producing countries experiencing short-term increases
Due to Country of origin awareness of English-speaking Canadians: Tracking methodology % who know the following places produce wine changes, Base = All English-speaking Canadian regular wine drinkers (n>=720) tracking for country of origin Rank 2016 2017 2019 Tracking awareness is 2019 n= 720 746 750 vs. '16 vs. '17 not available for 1 Canada 90% 85% 86% 2014 2 Italy 84% 80% 82% 3 California – USA 84% 79% 81% 4 France 85% 81% 81% 5 Spain 74% 68% 72% 6 Australia 76% 74% 71% 7 Chile 70% 68% 68% 8 Argentina 65% 62% 64% 9 New Zealand 58% 56% 61% 10 South Africa 63% 58% 59% 11 Portugal 61% 59% 58% 12 Germany 61% 57% 54% 13 Other USA (outside of California) 47% 35% 42% 14 Switzerland 22% 18% 24%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 75 Wine Intelligence Vinitrac® Canada, Oct’16, Oct’17 and Oct‘19, n>=720 English-speaking Canadian regular wine drinkers COUNTRY OF ORIGIN CONSUMPTION
Country of origin consumption has remained relatively stable, with the proportions of consumers who have drunk wine from France, New Zealand or Portugal in the past 6 months significantly increasing since 2016
Country of origin consumption of English-speaking Canadians: Tracking % who have drunk wine from the following places in past 6 months Base = All English-speaking Canadian regular wine drinkers (n>=720)
Rank 2016 2017 2019 Tracking 2019 n= 720 746 750 vs. '16 vs. '17 1 Canada 72% 71% 71% 2 California – USA 42% 44% 47% 3 Italy 33% 34% 38% 4 France 32% 33% 37% 5 Australia 35% 31% 33% 6 Chile 24% 24% 22% 7 Spain 16% 15% 19% 8 Argentina 16% 17% 17% 9 New Zealand 12% 16% 16% 10 South Africa 15% 13% 15% 11 Portugal 8% 10% 11% 12 Germany 13% 15% 11% 13 Other USA (outside of California) 9% 7% 9% 14 Switzerland 2% 3% 2%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 76 Wine Intelligence Vinitrac® Canada, Oct’16, Oct’17 and Oct‘19, n>=720 English-speaking Canadian regular wine drinkers REGION OF ORIGIN AWARENESS AND PURCHASE
Although the top regions for awareness are from the US, Italy and France, domestic regions perform better in converting awares into purchasers
Region of origin awareness and respective purchase levels of English-speaking Canadians: Top 15 Base = All English-speaking Canadian regular wine drinkers (n=750) Napa Valley 26% 79%
Tuscany 12% 70%
Bordeaux 16% 70%
Okanagan 24% 66%
Champagne 10% 65%
Burgundy 8% 61%
Niagara Peninsula 24% 57%
Sicily 6% 51% % who have heard of the following Chianti 9% 51% wine-producing regions Provence 4% 48%
Chablis 4% 44% % who have bought wine from the following wine-producing regions in Sonoma 7% 42% past 3 months Beaujolais 5% 40%
Prince Edward County 10% 40%
Bourgogne 3% 30% 77 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers REGION OF ORIGIN AWARENESS
Region of origin awareness has remained broadly stable across the years, with the exception of Sicily and Napa Valley experiencing long- and short-term increases respectively
Region of origin awareness of English-speaking Canadians: Tracking top 15 % who have heard of the following wine-producing regions Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 Napa Valley 77% 75% 79% 2 Tuscany 68% 69% 70% 3 Bordeaux 67% 69% 70% 4 Okanagan 67% 63% 66% 5 Champagne 61% 65% 65% 6 Burgundy 57% 61% 61% 7 Niagara Peninsula 59% 55% 57% 8 Sicily 44% 47% 51% 9 Chianti 46% 49% 51% 10 Provence 47% 46% 48% 11 Chablis 45% 43% 44% 12 Sonoma 43% 43% 42% 13 Beaujolais 43% 41% 40% 14 Prince Edward County n/a 36% 40% n/a 15 Bourgogne 29% 28% 30% 16 Loire Valley 28% 27% 28% 17 Piedmont 27% 26% 28% 18 Côtes du Rhône 30% 30% 27% 19 Châteauneuf du Pape 30% 29% 26% 20 Alsace 28% 27% 24%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 78 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers REGION OF ORIGIN PURCHASE
Region of origin purchase incidence has also remained stable, with domestic wine- producing region Niagara Peninsula experiencing a significant long-term decline in the proportion of consumers who have bought wine from the origin in the past 3 months
Region of origin purchase of English-speaking Canadians: Tracking top 15 % who have bought wine from the following wine-producing regions in past 3 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 Napa Valley 30% 28% 26% 2 Okanagan 26% 25% 24% 3 Niagara Peninsula 29% 25% 24% 4 Bordeaux 15% 15% 16% 5 Tuscany 11% 14% 12% 6 Prince Edward County n/a 9% 10% n/a 7 Champagne 8% 8% 10% 8 Chianti 7% 9% 9% 9 Burgundy 8% 8% 8% 10 Sonoma 10% 9% 7% 11 Sicily 7% 7% 6% 12 Côtes du Rhône 6% 6% 6% 13 Beaujolais 7% 7% 5% 14 Rioja 4% 4% 5% 15 Provence 5% 4% 4% 16 Mendoza 4% 5% 4% 17 Chablis 5% 4% 4% 18 Marlborough 5% 5% 4% 19 Bourgogne 2% 3% 3% 20 Hawke’s Bay 2% 4% 3%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 79 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers WINE-BUYING CHANNEL USAGE
Government-controlled liquor stores are the dominant retail channel in English-speaking Canada, with over two thirds having bought wine from them in the past 6 months
Wine-buying channel usage of English-speaking Canadians % who have bought wine from the following channels in the past 6 months Base = All English-speaking Canadian regular wine drinkers (n=750)
In a government-controlled liquor store 68% In a privatized liquor store 26% In a grocery store 20% In a wine store attached to a grocery store 20% In a super store 16% In a private wine store 15% In a beer and wine store 14% In a club store 10% From the winery direct 9% From a make your own wine store 9% From Duty Free 8% On the internet 4% Through mail order 1% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 80 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English0-speaking0% Canadian regular wine drinkers WINE-BUYING CHANNEL USAGE
For the first time, government-controlled liquor stores experienced a significant decrease in the proportion of consumers purchasing wine from the channel, following changes in Provincial retail legislation in recent years
Wine-buying channel usage of English-speaking Canadians: Tracking % who have bought wine from the following channels in the past 6 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 In a government-controlled liquor store 74% 71% 68% 2 In a privatized liquor store 16% 23% 26% 3 In a grocery store n/a 18% 20% n/a 4 In a wine store attached to a grocery store 20% 19% 20% 5 In a super store 11% 13% 16% 6 In a private wine store 18% 15% 15% 7 In a beer and wine store 19% 15% 14% 8 In a club store 7% 9% 10% 9 From the winery direct 11% 10% 9% 10 From a make your own wine store 9% 10% 9% 11 From Duty Free 9% 9% 8% 12 On the internet 3% 3% 4% 13 Through mail order 2% 2% 1%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 81 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers WINE-BUYING CHOICE CUES
English-speaking Canadian regular wine consumers are most likely to be influenced by grape variety when purchasing wine, followed by brand familiarity, recommendations by friends and family and promotional offers, all equally considered
Wine-buying choice cues of English-speaking Canadians % who indicate each of the following factors is 'important' or 'very important' when buying wine Base = All English-speaking Canadian regular wine drinkers (n=750)
Grape variety 73% A brand I am aware of 66% Recommendation by friend or family 66% Promotional offer 66% Taste or wine style descriptions 65% The country of origin 64% Wine that matches or compliments food 64% The region of origin 59% Recommendations from shop staff 45% Alcohol content 44% Bottle / label appeal 40% Recommendation by wine critic 29% Recommendation by wine guide books 28% If the wine has won a medal or award 24% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% 82 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers WINE-BUYING CHOICE CUES
Following global trends, English-speaking Canadian regular wine drinkers consider alcohol content increasingly important when purchasing wine, as well as promotional offers, grape variety, taste descriptions and label / bottle design
Wine-buying choice cues of English-speaking Canadians: Tracking % who indicate each of the following factors is 'important' or 'very important' when buying wine Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 1 Grape variety 68% 76% 73% 2 A brand I am aware of 69% 69% 66% 3 Recommendation by friend or family 68% 68% 66% 4 Promotional offer 51% 58% 66% 5 Taste or wine style descriptions n/a 60% 65% n/a 6 The country of origin 65% 62% 64% 7 Wine that matches or compliments food n/a 65% 64% n/a 8 The region of origin 58% 58% 59% 9 Recommendations from shop staff 45% 48% 45% 10 Alcohol content 36% 41% 44% 11 Bottle / label appeal 31% 40% 40% 12 Recommendation by wine critic 34% 34% 29% 13 Recommendation by wine guide books 28% 32% 28% 14 If the wine has won a medal or award 23% 28% 24%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 83 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers OFF-PREMISE: WINE CONSUMPTION FREQUENCY BY OCCASION
Wine consumption frequency in the off-premise has remained broadly stable, with the exceptions of fewer saying they do not drink wine as a relaxing drink at the end of the day at home, and an increasing proportion of those who do not drink wine with a more formal dinner party at home Off-premise: Wine consumption frequency by occasion of English-speaking Canadians Base = Those who buy wine to drink at home
0% 1% 1% 0% 3% 3% 2% 3% 8% 9% 7% 6% 10% 9% 10% 8% Every day / most days 17% 22% 20% 24% 2-5 times per week 29% 27% 31% 35% 22% 22% 21% About once per week 23%
1-3 times per month 23% 29% 27% 50% 23% 52% 51% 48% Less than once per month
15% 18% 19% 12% I don't drink wine on this 11% 10% type of occasion 8% 7% 6% 6% 4% 6% 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink at the end With an informal meal at With a more formal dinner At a party / celebration at of the day at home home party at home home
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 84 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers OFF-PREMISE: SPEND ON WINE BY OCCASION
Over the past five years, average spend on wine in the off-premise has significantly increased across all consumption occasions
Off-premise: Spend on wine by occasion of English-speaking Canadians % who typically spend the following amount on a bottle of wine on each occasion Base = Those who drink wine on each occasion $12.67 $13.31 $12.54 $13.36 $15.84 $16.44 $14.72 $15.26 $17.03 $18.41 Average Spend ($) 1% 1% 1% 2% 5% 3% 6% 8% 4% 4% 6% 5% 11% 13% $25 or more 10% 11% 13% 14% 13% 14% 13% 13% 16% Between $20 and $24.99 21% 24% 26% 24% 22% 25% 30% 28% 29% Between $16 and $19.99 25% 25% 25% Between $13 and $15.99 30% 29% 29% 26% 28% 31% 27% 23% Between $10 and $12.99
26% 21% 20% 16% 18% 19% Between $8 and $9.99 15% 17% 14% 14% 9% 6% 8% 12% 12% 11% 5% 4% Less than $8 8% 6% 5% 2% 4% 3% 4% 3% 1% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink at the With an informal meal With a more formal At a party / celebration As a gift for somebody end of the day at home at home dinner party at home at home / : statistically significantly higher / lower than previous waves at a 95% confidence level 85 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers WINE PURCHASE IN THE ON-PREMISE
The proportion of English-speaking regular wine drinkers buying wine in bars has significantly decreased in the past six years, while this trend is not seen in restaurants
Wine purchase in on-premise locations of English-speaking Canadians: Tracking % who buy wine in a bar, pub or restaurant Base = All English-speaking Canadian regular wine drinkers (n>=744)
2014 2017 2019 Tracking On-trade location n= 744 746 750 vs. '14 vs. '17 Yes 53% 41% 44% Bar or PubBar No 47% 59% 56% Yes 81% 79% 80% Restaurant No 19% 21% 20%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 86 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers ON-PREMISE: WINE CONSUMPTION FREQUENCY BY OCCASION
Wine consumption frequency in the on-premise has remained broadly stable over the years
On-premise: Wine consumption frequency by occasion of English-speaking Canadians Base = Those who buy wine in a bar, pub or restaurant
0% 0% 0% 0% 0% 0% 3% 4% 2% 3% 2% 3% 3% 4% 8% 11% 11% 10% 10% 9% 6% 9% Every day / most days
16% 17% 25% 24% 2-5 times per week 32% 29% 36% 31% 20% About once per week 22%
1-3 times per month 35% 58% 57% 49% 57% 34% 42% 55% Less than once per month
I don't drink wine on this 18% 13% type of occasion 9% 6% 7% 7% 1% 2% 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink out at the With an informal meal in a With a more formal dinner At a party / celebration / end of the day pub / bar / restaurant in a restaurant big night out
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 87 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct’19, n>=744 English-speaking Canadian regular wine drinkers ON-PREMISE: SPEND ON WINE BY OCCASION
The proportion of English-speaking Canadian regular wine drinkers spending less than $20 on wine has significantly increased across all on-premise occasions in the last 5 years
On-premise: Spend on wine by occasion of English-speaking Canadians % who typically spend the following amount on a bottle of wine on each occasion Base = Those who drink wine on each occasion $21.69 $21.01 $22.84 $22.32 $26.53 $26.30 $24.93 $23.98 Average Spend ($) 0% 0% 0% 1% 0% 2% 2% 2% 2% 2%1% 2% 2% 3% 4% 2% 2% 5%2% 2% 2% 2% 3% 4% 4% 4% 5% 5%5% 7% 6% 5% 4% 4% $50 or more 7% 6% 5% 5%5% $50 or more 9% 12% 10%10% 13%13% 9% 12% 16% 17% 16%16% 16% 18% 17% 14% BetweenBetween $40 $40 and and $49.99 $49.99 14% 17%17% 19%19% 25% 25% 19% 19% 19% 18%18% 19% Between $30 and $39.99 29% Between $30 and $39.99 29% 20%20%
27%27% 20%20% BetweenBetween $25 $25 and and $29.99 $29.99 27% 69%69% 56%56% 56% BetweenBetween $20 $20 and and $24.99 $24.99 45%45% 47%47% 36%36% 35%35% 27% LessLess than than $20 $20
20142014 20192019 20142014 2019 2014 20192019 20142014 20192019 AA relaxing relaxing drink drink out out atat the the WithWith anan informalinformal meal in a With a more formalformal dinnerdinner AtAt a a party party / / celebration celebration / / endend of of the the day day barbar/restaurant / restaurant inin aa restaurantrestaurant bigbig night night out out / : statistically significantly higher / lower than previous waves at a 95% confidence level 88 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers BRAND HEALTH: AWARENESS VS. PURCHASE
Similarly to all Canadian regular wine drinkers, Australian brand Yellow Tail and domestic brand Jackson-Triggs are leaders in terms of brand awareness and purchase incidence
Top 15 brands by awareness and respective purchase level of English-speaking Canadians Base = All English-speaking Canadian regular wine drinkers (n=750) Yellow Tail 27% 80%
Jackson-Triggs 28% 72%
Naked Grape 13% 68%
Jacob's Creek 14% 67%
Barefoot 17% 66%
Sawmill Creek 11% 64%
Peller Estates 12% 59% % who have heard of the following brands Oyster Bay 8% 51%
Woodbridge 8% 50% % who have bought the following brands in the past 3 months Wayne Gretzky Estates 6% 49%
Inniskillin 7% 49%
Wolf Blass 7% 48%
Gallo Family Vineyards 6% 47%
Kim Crawford 7% 43%
Pelee Island 9% 42% 89 Wine Intelligence Vinitrac® Canada, Oct‘19, n=750 English-speaking Canadian regular wine drinkers BRAND HEALTH: AWARENESS
The proportion of English-speaking Canadian regular wine drinkers aware of a variety of brands has increased, with some domestic and non-domestic brands, such as Kim Crawford, Bodacious and Apothic doubling in awareness incidence in the past 5 years
Awareness: Tracking % who have heard of the following brands Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 2019 n= 744 746 750 vs. '14 vs. '17 1 Yellow Tail 73% 73% 80% 26 Two Oceans 30% 29% 32% 2 Jackson-Triggs 69% 72% 72% 27 Cupcake 18% 29% 30% 3 Naked Grape 68% 64% 68% 28 Ménage à Trois 15% 27% 28% 4 Jacob's Creek 52% 59% 67% 29 Mouton Cadet 32% 29% 27% 5 Barefoot 42% 52% 66% 30 Domaine D’or 35% 27% 26% 6 Sawmill Creek 66% 62% 64% 31 Gato Negro 21% 24% 25% 7 Peller Estates 56% 58% 59% 32 George Wyndham n/a 18% 24% n/a 8 Oyster Bay 34% 43% 51% 33 XOXO n/a n/a 22% n/a n/a 9 Woodbridge 46% 50% 50% 34 Fuzion Zuccardi 29% 26% 22% 10 Wayne Gretzky Estates n/a 44% 49% n/a 35 Masi 21% 21% 22% 11 Inniskillin 50% 50% 49% 36 Santa Carolina 21% 15% 21% 12 Wolf Blass 43% 45% 48% 37 Torres 21% 14% 19% 13 Gallo Family Vineyards 53% 50% 47% 38 Hardys 21% 18% 19% 14 Kim Crawford 21% 38% 43% 39 Wallaroo Trail 10% 14% 18% 15 Pelee Island 43% 41% 42% 40 Peter Lehmann n/a 14% 18% n/a 16 Lindeman's 41% 41% 42% 41 Monkey Bay 13% 16% 17% 17 Bodacious 13% 31% 42% 42 Campo Viejo 10% 14% 16% 18 Apothic 14% 31% 41% 43 Frontera 12% 10% 16% 19 Mission Hill 43% 34% 41% 44 Ravenswood 14% 16% 15% 20 Robert Mondavi 33% 37% 39% 45 J.P. Chenet 12% 11% 14% 21 Copper Moon n/a 36% 37% n/a 46 Trapiche 11% 13% 12% 22 Beringer n/a 31% 35% n/a 47 Fetzer 16% 14% 12% 23 Casillero del Diablo 30% 32% 34% 48 Wakefield 6% 8% 10% 24 Ruffino n/a 29% 34% n/a 49 Les Dauphins n/a 6% 9% n/a 25 Rosemount Estate 37% 28% 33% 50 McWilliam's 12% 8% 8%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 90 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers BRAND HEALTH: PURCHASE
Most of the brands experiencing a long-term increase in purchase incidence are domestic and US brands
Purchase: Tracking % who have bought the following brands in the past 3 months Base = All English-speaking Canadian regular wine drinkers (n>=744)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 744 746 750 vs. '14 vs. '17 2019 n= 744 746 750 vs. '14 vs. '17 1 Jackson-Triggs 23% 20% 28% 26 Robert Mondavi 5% 4% 5% 2 Yellow Tail 30% 24% 27% 27 Santa Carolina 4% 2% 5% 3 Barefoot 10% 12% 17% 28 Fuzion Zuccardi 7% 4% 4% 4 Jacob's Creek 6% 14% 14% 29 Masi 5% 4% 4% 5 Naked Grape 15% 13% 13% 30 Ménage à Trois 2% 3% 4% 6 Peller Estates 11% 6% 12% 31 Rosemount Estate 6% 2% 3% 7 Sawmill Creek 12% 9% 11% 32 Trapiche 1% 3% 3% 8 Apothic 4% 9% 11% 33 Cupcake 3% 4% 3% 9 Bodacious 3% 5% 11% 34 Gato Negro 2% 3% 3% 10 Copper Moon n/a 7% 9% n/a 35 Frontera 2% 2% 3% 11 Pelee Island 9% 6% 9% 36 Wallaroo Trail 2% 2% 3% 12 Oyster Bay 5% 5% 8% 37 Hardys 3% 2% 2% 13 Woodbridge 8% 6% 8% 38 Torres 4% 2% 2% 14 Inniskillin 9% 6% 7% 39 Domaine D’or 3% 2% 2% 15 Wolf Blass 8% 8% 7% 40 Peter Lehmann n/a 1% 2% n/a 16 Casillero del Diablo 5% 6% 7% 41 Mouton Cadet 3% 3% 2% 17 Kim Crawford 6% 7% 7% 42 J.P. Chenet 2% 3% 2% 18 Two Oceans 6% 4% 6% 43 Campo Viejo 1% 2% 2% 19 Beringer n/a 5% 6% n/a 44 Ravenswood 2% 3% 2% 20 Lindeman's 7% 6% 6% 45 McWilliam's 2% 1% 1% 21 Gallo Family Vineyards 6% 7% 6% 46 Les Dauphins n/a 1% 1% n/a 22 Wayne Gretzky Estates n/a 3% 6% n/a 47 Revolution n/a n/a 1% n/a n/a 23 XOXO n/a n/a 5% n/a n/a 48 Wakefield 1% 1% 1% 24 Mission Hill 6% 5% 5% 49 Monkey Bay 1% 1% 1% 25 Ruffino n/a 3% 5% n/a 50 Fetzer 2% 3% 1%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 91 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers BRAND HEALTH: CONVERSION
Conversion rates remained broadly stable, with the exception of a few brands experiencing long and short-term increases in the proportion of awares purchasing them, with leader Yellow Tail seeing a long-term decline
Conversion: Tracking % who have bought the following brands in the past 3 months Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2018 2019 Brand 2014 2018 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 33% 28% 39% 26 Wolf Blass 19% 18% 15% 2 Yellow Tail 41% 33% 34% 27 Woodbridge 18% 12% 15% 3 Trapiche 14% 24% 28% 28 Inniskillin 18% 12% 15% 4 Apothic 29% 30% 26% 29 Ruffino n/a 9% 14% n/a 5 Barefoot 23% 22% 26% 30 Lindeman's 18% 15% 14% 6 Bodacious 24% 17% 26% 31 J.P. Chenet 13% 24% 14% 7 XOXO n/a n/a 25% n/a n/a 32 Ménage à Trois 15% 12% 13% 8 Copper Moon n/a 21% 24% n/a 33 Les Dauphins n/a 17% 13% n/a 9 Revolution n/a n/a 22% n/a n/a 34 Gato Negro 11% 13% 13% 10 Santa Carolina 21% 16% 22% 35 Mission Hill 15% 13% 13% 11 Jacob's Creek 11% 24% 21% 36 Gallo Family Vineyards 12% 13% 12% 12 Casillero del Diablo 16% 18% 21% 37 Robert Mondavi 16% 10% 12% 13 Two Oceans 20% 14% 20% 38 Ravenswood 16% 16% 12% 14 Pelee Island 21% 15% 20% 39 Hardys 14% 11% 12% 15 Peller Estates 20% 11% 20% 40 Campo Viejo 13% 15% 12% 16 Frontera 16% 22% 20% 41 Wayne Gretzky Estates n/a 7% 12% n/a 17 Naked Grape 22% 20% 19% 42 Torres 20% 14% 11% 18 Fuzion Zuccardi 26% 16% 18% 43 Cupcake 19% 12% 11% 19 Sawmill Creek 18% 14% 18% 44 Peter Lehmann n/a 8% 11% n/a 20 Masi 22% 21% 18% 45 Rosemount Estate 16% 9% 11% 21 Beringer n/a 18% 17% n/a 46 Farnese n/a n/a 11% n/a n/a 22 Oyster Bay 14% 12% 16% 47 Wakefield 18% 13% 10% 23 Wallaroo Trail 17% 15% 16% 48 Domaine D’or 8% 6% 8% 24 Kim Crawford 29% 19% 15% 49 Mouton Cadet 8% 10% 7% 25 McWilliam's 16% 13% 15% 50 Nicolas Laloux n/a n/a 7% n/a n/a
= s, = small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 92 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers BRAND HEALTH: CONSIDERATION
Yellow Tail, McWilliam’s and Jackson-Triggs are the top brands English-speaking Canadians would consider buying, showing a good connection with consumers, with McWilliam’s seeing a short-term increase in this measure
Consideration: Tracking Due to methodology % who would consider buying the following brands changes, Base = Those who have heard of each brand consideration Rank Tracking Rank Tracking tracking for Brand 2017 2019 Brand 2017 2019 2019 vs. '17 2019 vs. '17 2014 is not 1 Yellow Tail 70% 70% 26 Kim Crawford 50% 59% available 2 McWilliam's 49% 69% 27 Mouton Cadet 52% 58% 3 Jackson-Triggs 67% 68% 28 Oyster Bay 51% 58% 4 Two Oceans 56% 67% 29 Trapiche 55% 58% 5 Masi 60% 66% 30 XOXO n/a 57% n/a 6 Apothic 63% 66% 31 Frontera 55% 57% 7 Wolf Blass 64% 64% 32 Carlo Botter n/a 56% 8 Peller Estates 56% 64% 33 Fuzion Zuccardi 56% 55% 9 Pelee Island 56% 64% 34 Mission Hill 56% 55% 10 Peter Lehmann 58% 63% 35 Ruffino 45% 55% 11 Jacob's Creek 59% 63% 36 Inniskillin 56% 55% 12 Barefoot 54% 62% 37 Gallo Family Vineyards 47% 55% 13 Ravenswood 57% 62% 38 Farnese n/a 54% n/a 14 Woodbridge 58% 62% 39 Cupcake 50% 54% 15 Copper Moon 53% 62% 40 Casillero del Diablo 54% 54% 16 Santa Carolina 52% 62% 41 Hardys 47% 53% 17 Wallaroo Trail 57% 62% 42 Les Dauphins 48% 52% 18 Robert Mondavi 53% 61% 43 Wayne Gretzky Estates 46% 52% 19 Bodacious 54% 61% 44 J.P. Chenet 49% 51% 20 Sawmill Creek 53% 61% 45 George Wyndham 49% 51% 21 Ménage à Trois 56% 60% 46 Wakefield 38% 50% 22 Rosemount Estate 55% 60% 47 Monkey Bay 45% 49% 23 Beringer 59% 59% 48 Nicolas Laloux n/a 49% n/a 24 Naked Grape 53% 59% 49 Campo Viejo 54% 49% 25 Lindeman's 59% 59% 50 Gato Negro 51% 47%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 93 Wine Intelligence Vinitrac® Canada, Oct’17 and Oct‘19, n>=746 English-speaking Canadian regular wine drinkers BRAND HEALTH: AFFINITY
Regular wine drinkers in Canada show the most affinity towards domestic brand Jackson-Triggs, followed by Yellow Tail and Apothic, with many brands experiencing a significant increase in the proportion of those who feel affinity towards them
Affinity: Tracking % who think the following brands are right for people like them Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 52% 50% 58% 26 Santa Carolina 38% 39% 41% 2 Yellow Tail 58% 56% 55% 27 Mission Hill 38% 43% 41% 3 Apothic 40% 48% 52% 28 Lindeman's 34% 41% 40% 4 Farnese n/a n/a 51% n/a n/a 29 Gato Negro 32% 32% 40% 5 Jacob's Creek 35% 45% 49% 30 Cupcake 25% 36% 40% 6 Copper Moon n/a 39% 49% n/a 31 Hardys 34% 34% 39% 7 Pelee Island 42% 43% 48% 32 Kim Crawford 41% 38% 39% 8 Masi 54% 43% 48% 33 Mouton Cadet 37% 40% 39% 9 Barefoot 37% 42% 48% 34 Casillero del Diablo 30% 41% 39% 10 Trapiche 33% 42% 47% 35 Ruffino n/a 33% 38% n/a 11 McWilliam's 50% 37% 46% 36 Rosemount Estate 31% 30% 38% 12 Bodacious 29% 42% 45% 37 Gallo Family Vineyards 30% 29% 38% 13 Sawmill Creek 35% 39% 45% 38 Peter Lehmann n/a 35% 37% n/a 14 Peller Estates 41% 36% 45% 39 Wallaroo Trail 34% 40% 37% 15 Wolf Blass 44% 47% 43% 40 Revolution n/a n/a 37% n/a n/a 16 Two Oceans 40% 36% 43% 41 Carlo Botter n/a n/a 37% n/a 17 Oyster Bay 33% 37% 43% 42 Wakefield 17% 31% 36% 18 Naked Grape 43% 43% 43% 43 Fuzion Zuccardi 40% 40% 35% 19 Frontera 28% 40% 43% 44 Les Dauphins n/a 38% 35% n/a 20 Ravenswood 35% 45% 42% 45 Torres 34% 34% 35% 21 Ménage à Trois 26% 38% 42% 46 Wayne Gretzky Estates n/a 29% 35% n/a 22 Woodbridge 34% 40% 42% 47 XOXO n/a n/a 34% n/a n/a 23 Robert Mondavi 36% 34% 42% 48 Nicolas Laloux n/a n/a 33% n/a n/a 24 Beringer n/a 46% 42% n/a 49 J.P. Chenet 30% 32% 33% 25 Inniskillin 38% 37% 42% 50 Campo Viejo 31% 37% 32%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 94 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers BRAND HEALTH: RECOMMENDATION
Jackson-Triggs, Yellow Tail and Apothic are the top 3 brands to be recommended to a friend, with next-highest brand Barefoot experiencing short- and long-term significant increases in the proportion of those who would recommend it to a friend
Recommendation: Tracking % who would recommend the following brands to a friend Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Jackson-Triggs 48% 47% 48% 26 Ravenswood 31% 32% 32% 2 Yellow Tail 52% 48% 47% 27 Inniskillin 32% 33% 32% 3 Apothic 36% 41% 42% 28 Santa Carolina 34% 27% 32% 4 Barefoot 31% 34% 40% 29 Beringer n/a 35% 31% n/a 5 Wolf Blass 43% 43% 40% 30 Les Dauphins n/a 22% 30% n/a 6 Two Oceans 35% 28% 39% 31 Frontera 21% 30% 30% 7 Pelee Island 41% 36% 39% 32 XOXO n/a n/a 29% n/a n/a 8 Jacob's Creek 36% 37% 37% 33 Wallaroo Trail 33% 29% 29% 9 Peller Estates 37% 30% 37% 34 Hardys 27% 25% 28% 10 Lindeman's 35% 36% 36% 35 Revolution n/a n/a 28% n/a n/a 11 Robert Mondavi 35% 30% 36% 36 Fuzion Zuccardi 37% 28% 28% 12 Bodacious 23% 29% 36% 37 Wayne Gretzky Estates n/a 23% 28% n/a 13 Oyster Bay 27% 29% 35% 38 Gato Negro 20% 27% 27% 14 Copper Moon n/a 29% 35% n/a 39 Cupcake 25% 27% 27% 15 Mouton Cadet 29% 30% 35% 40 Rosemount Estate 31% 23% 27% 16 Trapiche 26% 36% 35% 41 Gallo Family Vineyards 25% 22% 26% 17 Masi 51% 40% 35% 42 McWilliam's 44% 32% 26% 18 Kim Crawford 41% 32% 34% 43 Torres 27% 26% 26% 19 Sawmill Creek 30% 28% 34% 44 Farnese n/a n/a 25% n/a n/a 20 Woodbridge 36% 29% 34% 45 J.P. Chenet 22% 20% 25% 21 Naked Grape 35% 30% 33% 46 Nicolas Laloux n/a n/a 23% n/a n/a 22 Ruffino n/a 20% 33% n/a 47 George Wyndham n/a 26% 23% n/a 23 Mission Hill 31% 31% 33% 48 Peter Lehmann n/a 21% 23% n/a 24 Ménage à Trois 20% 31% 32% 49 Monkey Bay 24% 23% 22% 25 Casillero del Diablo 30% 35% 32% 50 Campo Viejo 22% 29% 22%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 95 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=744 English-speaking Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
96 QUÉBEC
The historical division between French-founded Québec and the English-speaking Provinces has impacted key areas of society, such as cultural heritage, politics, economics and law
Differences have also resulted in distinct wine markets and consumer profiles. Therefore, wine consumption and purchase habits, as well as attitudes towards wine, are presented comparing English-speaking Canada and Québec in this report
75% of Canadian regular wine drinkers, English-speaking Canada approximately 12.6 million adults, are based in English-speaking Canada Québec
25% of Canadian regular wine drinkers, approximately 4.2 million adults, are based in Québec
97 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers DEMOGRAPHICS OF QUÉBÉCOIS REGULAR WINE DRINKERS
The demographics of Québécois regular wine drinkers have remained stable, with the exception of a higher proportion earning higher incomes since 2014
Age Gender 19% 26% 65 and over 18% 13% 55-64
19% 18% 45-54
16% 16% 35-44
2019 54% 46% 25-34 19% 22% 2014 50% 50% 19-24 9% 5% 2014 2019
Total household income (before tax) Portraits
2014 2019 2017 2019 Under $20,000 5% 8% Engaged Explorers 7% 11% $20,000 - $39,999 19% 11% Enthusiastic Treaters 11% 6% $40,000 - $59,999 25% 22% Mainstream Matures 18% 18% $60,000 - $79,999 17% 19% Social Newbies 24% 32% $80,000 - $99,999 9% 12% Contented Occasionals 16% 10% $100,000 - $119,999 7% 12% Kitchen Casuals 25% 22% $120,000+ 8% 14% Prefer not to answer 9% 3% 2014 tracking for Canada Portraits unavailable. For more information on Portraits segmentation, please refer to page 132 (%): Data from previous wave / : statistically significantly higher / lower than previous waves at a 95% confidence level 98 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers WINE CONSUMPTION FREQUENCY
Around three quarters of the regular wine drinkers residing in Québec are weekly consumers of wine, with the proportion of those drinking wine at least once a week significantly rising since 2014
Wine consumption frequency of Québécois: Tracking % who drink wine at the following frequency Base = All Québécois regular wine drinkers (n>=250)
2014 2017 2019 Tracking n= 258 254 250 vs. '14 vs. '17 Most days / every day 11% 7% 8% 2-5 times a week 37% 33% 33% About once a week 28% 31% 38% 1-3 times a month 24% 29% 21%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 99 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’16, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers ATTITUDES TOWARDS WINE
Attitudes towards wine have remained broadly stable, with more than half of Québécois consumers having a more adventurous attitude when it comes to wine
Attitude towards wine of Québécois: Tracking Base = All Québécois regular wine drinkers (n>=250)
2014 2017 2019 Tracking n= 258 254 250 vs. '14 vs. '17 I enjoy trying new and different styles of wine on a regular basis 58% 60% 59% I don't mind what I buy so long as the price is right 21% 17% 21% I know what I like and I tend to stick to what I know 22% 23% 20%
Wine involvement of Québécois: Tracking Base = All Québécois regular wine drinkers (n>=250) Wine involvement is calculated by collating data from those who agree or strongly agree 2014 2017 2019 Tracking with the following statements: n= 258 254 250 vs. '14 vs. '17 1. I have strong interest in High involvement 35% 41% 40% wine Medium involvement 43% 35% 41% 2. I like to take my time when Low involvement 22% 23% 19% I purchase a bottle of wine 3. Wine is important to my lifestyle 4. Drinking wine gives me pleasure
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 100 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers INVOLVEMENT AND PERCEIVED EXPERTISE IN WINE
Québécois regular wine drinkers derive pleasure from drinking wine and are budget- driven. Since 2014, higher proportions feel that wine is reasonably priced, along with feeling more competent of their wine knowledge
Involvement and perceived expertise in wine of Québécois: Tracking % who 'agree' or 'strongly agree' with the following statements Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Drinking wine gives me pleasure 83% 80% 85% 2 I always look for the best quality wines I can get for my budget 75% 71% 75% 3 I like to take my time when I purchase a bottle of wine 65% 61% 64% 4 Deciding which wine to buy is an important decision 59% 58% 61% 5 I have a strong interest in wine 48% 52% 54% 6 Wine is important to me in my lifestyle 50% 49% 53% 7 Generally speaking, wine is reasonably priced 33% 34% 44% 8 Generally speaking, wine is an expensive drink 38% 34% 43% 9 Compared to others, I know less about the subject of wine 34% 38% 35% 10 I feel competent about my knowledge of wine 26% 29% 34% 11 I don’t understand much about wine 27% 19% 19%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 101 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers CONFIDENCE AND KNOWLEDGE INDEX
Despite under-indexing on recalled wine knowledge compared to English-speaking Canada, wine knowledge among Québécois regular wine drinkers experienced a significant increase since 2014
Wine knowledge index of Québécois: Tracking Wine knowledge index (0-100) is calculated based on consumer-reported awareness of wine-producing countries, wine-growing regions and wine brands Base = All Québécois regular wine drinkers (n>=250)
2014 Index 2019 difference
27.3 +4.5 31.8
Wine confidence index of Québécois: Tracking Wine confidence index (0-100) is calculated based on the extent to which consumers feel competent about their wine knowledge Base = All Québécois regular wine drinkers (n>=250) Wine confidence index uses consumers’ answers to three attitudinal statements: Index 1. I feel competent about 2014 2019 my knowledge of wine difference 2. Compared to others, I know less about the 48.6 +3.5 52.1 subject of wine 3. I don’t understand much about wine
/ : statistically significantly higher / lower than previous wave at a 95% confidence level 102 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=250 Québécois regular wine drinkers VIEWS ON WINE CLOSURES
A significantly higher proportion of Québécois consumers like to buy wine with synthetic and natural corks compared with 2017
Views on wine closures of Québécois: Tracking Base = All Québécois regular wine drinkers (n>=250)
Closures 2014 2017 2019 Tracking n= 258 254 250 vs. '14 vs. '17 I don't like buying wine with this closure 18% 11% 12% Screw-cap Neutral 48% 56% 53% I like buying wine with this closure 34% 34% 35% I don't like buying wine with this closure 14% 15% 11% Synthetic cork Neutral 64% 71% 66% I like buying wine with this closure 21% 14% 23% I don't like buying wine with this closure 7% 8% 7% Natural cork Neutral 39% 47% 39% I like buying wine with this closure 54% 45% 54%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 103 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
Similar to the whole population, Québécois regular wine drinkers prefer red wine, closely followed by white wine and beer
Alcoholic beverage repertoire of Québécois: Top 20 % who have drunk the following alcoholic beverages in the past 12 months Base = All Québécois regular wine drinkers (n=250)
Red wine 90% White wine 83% Beer 76% Rosé wine 46% Rum 44% Vodka 43% Craft beer 38% Whisky / Whiskey 38% Liqueurs 31% Gin 29% Other sparkling wine 28% Cocktails 24% Pre-mixed alcoholic beverages 23% Champagne (French Champagne) 22% Cider 20% Port 19% Brandy / Cognac 18% Prosecco 15% Sweet / dessert wine 13% Sherry 6% 104 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers ALCOHOLIC BEVERAGE REPERTOIRE
Craft beer and whisky both experienced a long-term increase in the proportion of consumers enjoying them since 2014, though cocktails and Port have experienced the opposite trend over the years
Alcoholic beverage repertoire of Québécois: Top 20 tracking % who have drunk the following alcoholic beverages in the past 12 months Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Red wine 90% 90% 90% 2 White wine 79% 77% 83% 3 Beer 69% 81% 76% 4 Rosé wine 54% 52% 46% 5 Rum 47% 48% 44% 6 Vodka 43% 47% 43% 7 Craft beer 25% 29% 38% 8 Whisky / Whiskey 29% 30% 38% 9 Liqueurs 38% 28% 31% 10 Gin 23% 16% 29% 11 Other sparkling wine 29% 27% 28% 12 Cocktails 34% 28% 24% 13 Pre-mixed alcoholic beverages 19% 23% 23% 14 Champagne (French Champagne) 29% 24% 22% 15 Cider 25% 18% 20% 16 Port 36% 20% 19% 17 Brandy / Cognac 24% 18% 18% 18 Prosecco 10% 9% 15% 19 Sweet / dessert wine 20% 11% 13% 20 Sherry 8% 2% 6%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 105 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers VARIETAL CONSUMPTION
International favourites Chardonnay, Sauvignon Blanc, Cabernet Sauvignon and Merlot remain the most widely consumed varietals among Québécois regular wine drinkers
White varietal consumption Red varietal consumption % who have drunk the following varietals or wine types in the past 6 months % who have drunk the following varietals or wine types in the past 6 months Base = All Québécois regular wine drinkers (n=250) Base = All Québécois regular wine drinkers (n=250)
Chardonnay 59% Cabernet Sauvignon 56%
Sauvignon Blanc 59% Merlot 56%
Pinot Grigio / Pinot Gris 45% Pinot Noir 52%
Riesling 23% Shiraz / Syrah 40%
White blend 17% Red blend 20%
Chenin Blanc 14% Malbec 18%
Moscato 14% Sangiovese 17%
Verdejo 7% Cabernet Franc 15%
Sémillon 6% Zinfandel 14%
Gewürztraminer 6% Tempranillo 13%
Viognier 5% Grenache 11%
Albariño 3% Pinotage 8%
Colombard 3% Baco Noir 6%
Grüner Veltliner 2% Carménère 6%
Torrontés 2% Gamay 6% 106 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers WHITE VARIETAL CONSUMPTION
Verdejo is experiencing a steep growth in consumption, the proportion of Québécois regular wine drinkers enjoying the varietal has doubled in the last 5 years
White varietal consumption of Québécois: Tracking % who have drunk the following varietals or wine types in the past 6 months Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 An important trend this year is white wine, for sure. Anything that it is a 1 Chardonnay 53% 55% 59% refreshing, crisp white wine works well 2 Sauvignon Blanc 55% 51% 59% Wine Buyer, Canada 3 Pinot Grigio / Pinot Gris 43% 43% 45% 4 Riesling 28% 25% 23% 5 White blend 17% 13% 17% 6 Chenin Blanc 12% 10% 14% 7 Moscato 14% 14% 14% 8 Verdejo 3% 2% 7% 9 Sémillon 6% 5% 6% 10 Gewürztraminer 13% 7% 6% 11 Viognier 6% 5% 5% 12 Albariño 4% 3% 3% 13 Colombard 4% 2% 3% 14 Grüner Veltliner 2% 3% 2% 15 Torrontés 4% 2% 2%
Wine Intelligence trade interview program / : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 107 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers RED VARIETAL CONSUMPTION
Red varietal consumption has remained broadly stable in the past few years, with Malbec and Gamay experiencing a significant fall in the proportion of consumers that drink each varietal since 2014
Red varietal consumption of Québécois: Tracking % who have drunk the following varietals or wine types in the past 6 months Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Cabernet Sauvignon 59% 54% 56% 2 Merlot 64% 55% 56% 3 Pinot Noir 55% 53% 52% 4 Shiraz / Syrah 41% 35% 40% 5 Red blend 20% 15% 20% 6 Malbec 25% 18% 18% 7 Sangiovese 19% 14% 17% 8 Cabernet Franc n/a 11% 15% n/a 9 Zinfandel 19% 18% 14% 10 Tempranillo 12% 9% 13% 11 Grenache 10% 9% 11% 12 Pinotage 7% 8% 8% 13 Baco Noir 6% 4% 6% 14 Carménère 3% 4% 6% 15 Gamay 12% 7% 6% 16 Garnacha 5% 5% 5%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 108 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers COUNTRY OF ORIGIN AWARENESS AND CONSUMPTION
As opposed to English-speaking regular wine drinkers, a higher proportion of Québécois regular wine drinkers prefer to consume wine from European wine producers, reflecting close historic and cultural links with France
Country of origin awareness and respective consumption level of Québécois Base = All Québécois regular wine drinkers (n=250)
France 57% 72% For still wine, we are still mainly French, just because of who we are Italy 54% 68% and our background, we are very big California – USA 34% 59% French drinkers Wine Buyer, Canada Australia 26% 58%
Spain 30% 58%
Canada 32% 57%
Portugal 22% 47%
Chile 18% 47% % who know the following places produce wine Argentina 13% 44%
South Africa 9% 37% % who have drunk wine from the following places in past 6 Germany 11% 36% months New Zealand 7% 36%
Greece 5% 28%
Other USA (outside of California) 8% 27%
Switzerland 2% 14% Wine Intelligence trade interview program 109 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers COUNTRY OF ORIGIN AWARENESS
Most countries of origin have experienced a significant increase in the proportion of consumers aware of them since 2016
Due to Country of origin awareness of Québécois: Tracking methodology % who know the following places produce wine changes, Base = All Québécois regular wine drinkers (n>=250) tracking for country of origin Rank 2016 2017 2019 Tracking awareness is 2019 n= 280 254 250 vs. '16 vs. '17 not available for 1 France 69% 75% 72% 2014 2 Italy 62% 66% 68% 3 California – USA 53% 55% 59% 4 Australia 47% 53% 58% 5 Spain 48% 53% 58% 6 Canada 46% 51% 57% 7 Portugal 37% 44% 47% 8 Chile 45% 51% 47% 9 Argentina 35% 41% 44% 10 South Africa 32% 33% 37% 11 Germany 28% 31% 36% 12 New Zealand 25% 29% 36% 13 Other USA (outside of California) 16% 22% 27% 14 Switzerland 8% 11% 14%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 110 Wine Intelligence Vinitrac® Canada, Oct’16, Oct’17 and Oct’19, n>=250 Québécois regular wine drinkers COUNTRY OF ORIGIN CONSUMPTION
Country of origin consumption has remained broadly stable over the years, with the exception of a higher proportion of Québécois regular wine drinkers consuming wine from Italy, Portugal and US (outside of California) since 2016
Due to Country of origin consumption of Québécois: Tracking methodology % who have drunk wine from the following places in past 6 months changes, Base = All Québécois regular wine drinkers (n>=250) tracking for country of origin Rank 2016 2017 2019 Tracking awareness is 2019 n= 280 254 250 vs. '16 vs. '17 not available for 1 France 54% 57% 57% 2014 2 Italy 43% 49% 54% 3 California – USA 31% 34% 34% 4 Canada 25% 30% 32% 5 Spain 27% 31% 30% 6 Australia 28% 32% 26% 7 Portugal 15% 18% 22% 8 Chile 21% 23% 18% 9 Argentina 16% 21% 13% 10 Germany 9% 7% 11% 11 South Africa 12% 12% 9% 12 Other USA (outside of California) 4% 6% 8% 13 New Zealand 8% 11% 7% 14 Switzerland 1% 3% 2%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 111 Wine Intelligence Vinitrac® Canada, Oct’16, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers REGION OF ORIGIN AWARENESS AND PURCHASE
French wine-producing regions dominate the charts in term of consumption, with Bordeaux being at the top for both awareness and purchase levels
Region of origin awareness and respective purchase level of Québécois: Top 15 Base = All Québécois regular wine drinkers (n=250)
Bordeaux 38% 76%
Champagne 7% 64%
Bourgogne 17% 62%
Beaujolais 18% 61%
Côtes du Rhône 22% 57%
Chianti 23% 56%
Tuscany 14% 54% % who know the following Napa Valley 12% 50% places produce wine Alsace 7% 47%
Chablis 8% 46% % who have drunk wine from the following places in past 6 Châteauneuf du Pape 5% 45% months Languedoc 10% 43%
Provence 6% 42%
Loire Valley 4% 39%
Sicily 8% 38% 112 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers REGION OF ORIGIN AWARENESS
A variety of wine-producing regions have experienced a significant decrease in the proportion of those aware since 2014
Region of origin awareness of Québécois: Tracking Top 15 % who have heard of the following wine-producing regions Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Bordeaux 82% 72% 76% 2 Champagne 65% 53% 64% 3 Bourgogne 67% 54% 62% 4 Beaujolais 66% 57% 61% 5 Côtes du Rhône 68% 55% 57% 6 Chianti 56% 48% 56% 7 Tuscany 66% 51% 54% 8 Napa Valley 59% 41% 50% 9 Alsace 51% 41% 47% 10 Chablis 51% 37% 46% 11 Châteauneuf du Pape 58% 47% 45% 12 Languedoc 47% 36% 43% 13 Provence 54% 37% 42% 14 Loire Valley 45% 28% 39% 15 Sicily 38% 31% 38% 16 St Emilion n/a 32% 37% n/a 17 Niagara Peninsula 43% 26% 35% 18 Médoc / Haut-Médoc n/a 30% 34% n/a 19 Okanagan 43% 29% 34% 20 Vin de Pays d'Oc 44% 32% 33%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 113 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers REGION OF ORIGIN PURCHASE
Region of origin purchase has remained stable over the years, with the exception of a significantly smaller proportion of consumers buying wine from Napa Valley and Alsace since 2014
Region of origin purchase of Québécois: Tracking top 15 % who have bought wine from the following wine-producing regions in past 3 months Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Bordeaux 43% 33% 38% 2 Chianti 18% 20% 23% 3 Côtes du Rhône 24% 21% 22% 4 Beaujolais 19% 20% 18% 5 Bourgogne 22% 14% 17% 6 Tuscany 18% 14% 14% 7 Napa Valley 23% 10% 12% 8 Languedoc 11% 5% 10% 9 Niagara Peninsula 8% 7% 9% 10 Sicily 7% 7% 8% 11 Vin de Pays d'Oc 11% 8% 8% 12 Chablis 8% 11% 8% 13 Champagne 7% 8% 7% 14 Alsace 14% 9% 7% 15 Rioja 9% 7% 7% 16 St Emilion n/a 8% 7% n/a 17 Médoc / Haut-Médoc n/a 5% 6% n/a 18 Provence 9% 10% 6% 19 Dão n/a n/a 5% n/a 20 Châteauneuf du Pape 7% 7% 5%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 114 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers WINE-BUYING CHANNEL USAGE
The vast majority of the Québécois regular wine drinkers are buying wine from government-controlled liquor stores
Wine-buying channel usage of Québécois % who have bought wine from the following channels in the past 6 months Base = All Québécois regular wine drinkers (n>=250) Although wine in In a government-controlled liquor store 74% Québec is available to In a grocery store 34% buy at government- In a wine store attached to a grocery store 25% controlled liquor stores (eg SAQ), In a beer and wine store 15% grocery stores and In a club store 15% corner stores, the government-controlled In a private wine store 11% liquor stores have the From Duty Free 9% biggest selection of In a super store 7% wines In a privatized liquor store 6% From the winery direct 6% On the internet 4% From a make your own wine store 2% Through mail order 1% Other 2% 0 0% 0 0% 0 0% 0 0% 0 0% www.Québec-cite.com 115 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois0 regular0% wine drinkers WINE-BUYING CHANNEL USAGE
Government-controlled stores maintain their dominance, with over twice as many Québécois people purchasing wine from them compared with all other wine-buying channels
Wine-buying channel usage of Québécois: Tracking % who have bought wine from the following channels in the past 6 months Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 In a government-controlled liquor store 74% 71% 74% 2 In a grocery store n/a 38% 34% n/a 3 In a wine store attached to a grocery store 29% 30% 25% 4 In a beer and wine store 17% 22% 15% 5 In a club store 14% 16% 15% 6 In a private wine store 15% 15% 11% 7 From Duty Free 6% 5% 9% 8 In a super store 6% 5% 7% 9 In a privatized liquor store 11% 5% 6% 10 From the winery direct 5% 7% 6% 11 On the internet 2% 2% 4% 12 From a make your own wine store 4% 4% 2% 13 Through mail order 0% 1% 1%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 116 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers WINE-BUYING CHOICE CUES
Québécois regular wine consumers are most likely to be influenced by grape variety when purchasing wine, closely followed by brand familiarity and country of origin in equal measures
Wine-buying choice cues of Québécois % who indicate each of the following factors is 'important' or 'very important' when buying wine Base = All Québécois regular wine drinkers (n=250) Grape variety 77% A brand I am aware of 76% The country of origin 76% The region of origin 72% Taste or wine style descriptions 69% Wine that matches food 68% Promotional offer 66% Recommendation by friend or family 65% Recommendations from shop staff 58% Alcohol content 54% Recommendation by wine critic 49% Recommendation by wine guide books 42% If the wine has won a medal or award 38% Botthe / label appeal 35% 0 0%
117 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers WINE-BUYING CHOICE CUES
Grape variety, country and region of origin and alcohol content are becoming increasingly important for Québécois regular wine drinkers when buying wine
Wine-buying choice cues of Québécois: Tracking % who indicate each of the following factors is 'important' or 'very important' when buying wine Base = All Québécois regular wine drinkers (n>=250)
Rank 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 1 Grape variety 67% 68% 77% 2 A brand I am aware of 73% 75% 76% 3 The country of origin 66% 63% 76% 4 The region of origin 57% 58% 72% 5 Taste or wine style descriptions n/a 63% 69% n/a 6 Wine that matches food n/a 64% 68% n/a 7 Promotional offer 53% 61% 66% 8 Recommendation by friend or family 72% 66% 65% 9 Recommendations from shop staff 57% 51% 58% 10 Alcohol content 34% 40% 54% 11 Recommendation by wine critic 44% 46% 49% 12 Recommendation by wine guide books 44% 37% 42% 13 If the wine has won a medal or award 30% 26% 38% 14 Bottle / label appeal 31% 35% 35%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 118 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers OFF-PREMISE: WINE CONSUMPTION FREQUENCY BY OCCASION
Similar to English-speaking regular wine drinkers, wine consumption frequency across all off-premise occasions has remained broadly stable
Off-premise: Wine consumption frequency by occasion of Québécois Base = Those who buy wine in the off-premise
1% 0% 1% 0% 4% 2% 2% 9% 6% 10% 6% 5% 11% 10% Every day / most days 15% 17% 20% 15% 17% 21% 2-5 times per week 36% 19% 28% 42% 21% 28% About once per week 40% 39% 20% 1-3 times per month 22% 23% 17%
Less than once per month 21% 48% 41% 17% 18% 34% 33% 22% I don't drink wine on this 17% 12% 11% type of occasion 6% 3% 3% 3% 4% 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink at the end With an informal meal at With a more formal dinner At a party / celebration at of the day at home home party at home home
/ : statistically significantly higher / lower than previous wave at a 95% confidence level 119 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=250 Québécois regular wine drinkers OFF-PREMISE: SPEND ON WINE BY OCCASION
The average price Québécois wine drinkers spend on a bottle of wine in less formal occasions at home has significantly increased since 2014
Off-premise: Spend on wine by occasion of Québécois % who typically spend the following amount on a bottle of wine on each occasion Base = Those who drink wine on each occasion $13.14 $13.93 $13.15 $13.88 $16.30 $16.82 $16.14 $16.54 $18.32 $19.17 Average Spend ($) 2% 1% 2% 2% 5% 5% 8% 5% 6% 7% 7% 7% 16% 16% $25 or more 11% 12% 15% 14% 15% 14% 16% 16% Between $20 and $24.99 19% 25% 26% 24% 22% 21% 24% Between $16 and $19.99 34% 29% 29% 25% Between $13 and $15.99 29% 32% 37% 34% 35% 33% 28% Between $10 and $12.99 30% 34% 28% 21% Between $8 and $9.99 19% 15% 15% 17% 16% 16% 9% 10% 9% 2% 4% 9% Less than $8 5% 7% 3% 4% 2% 0% 4% 3% 1% 2% 3% 0% 1% 1% 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink at the With an informal meal With a more formal At a party / celebration As a gift for somebody end of the day at home at home dinner party at home at home / : statistically significantly higher / lower than previous wave at a 95% confidence level 120 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=250 Québécois regular wine drinkers WINE PURCHASE IN THE ON-PREMISE
Wine purchase in on-premise locations has remained stable since 2014, with the vast majority of Québécois regular wine drinkers purchasing wine from restaurants while only a third buy wine in bars or pubs
Wine purchase in on-premise locations of Québécois: Tracking % who buy wine in a bar, pub or restaurant Base = All Québécois regular wine drinkers (n>=250)
2014 2017 2019 Tracking On-trade location n= 258 254 250 vs. '14 vs. '17 Yes 31% 28% 35% Bar or PubBar No 69% 72% 65% Yes 80% 79% 82% Restaurant No 20% 21% 18%
/ : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 121 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers ON-PREMISE: WINE CONSUMPTION FREQUENCY BY OCCASION
Wine consumption frequency in the on-premise has remained broadly stable over the years
On-premise: Wine consumption frequency by occasion of Québécois Base = Those who buy wine in a bar, pub or restaurant
1% 2% 0% 1% 0% 1% 0% 0% 4% 3% 4% 3% 2% 1% 1% 6% 7% 7% 7% 8% Every day / most days 10% 11% 16% 16% 17% 28% 28% 27% 2-5 times per week 34% 28% 16% 36% About once per week
37% 33% 1-3 times per month 50% 57% 57% 48% 54% Less than once per month 45% 30% 26% I don't drink wine on this 12% type of occasion 8% 6% 7% 3% 0% 2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink out at the With an informal meal in a With a more formal dinner At a party / celebration / end of the day pub / bar / restaurant in a restaurant big night out
/ : statistically significantly higher / lower than previous wave at a 95% confidence level 122 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=250 Québécois regular wine drinkers ON-PREMISE: SPEND ON WINE BY OCCASION
Québécois wine consumers are spending on average more than they used to when buying wine as a relaxing drink out at the end of the day, while a higher proportion are spending less for more formal on-premise occasions
On-premise: Spend on wine by occasion of Québécois % who typically spend the following amount on a bottle of wine on each occasion Base = Those who drink wine on each occasion $21.43 $23.36 $23.25 $24.59 $27.08 $26.45 $25.23 $25.28 Average Spend ($) 0% 2% 1% 2% 2% 1% 3% 4% 3% 6% 6% 5% 2% 9% 8% 5% $50 or more 4% 8% 12% 10% 13% 8% 11% 15% 12% 11% 18% Between $40 and $49.99 14% 24% 24% 15% 15% 13% 22% Between $30 and $39.99 17% 29% 22% 24% 32% Between $25 and $29.99 27%
58% 59% Between $20 and $24.99 50% 42% 42% 37% 25% 27% Less than $20
2014 2019 2014 2019 2014 2019 2014 2019 A relaxing drink out at the With an informal meal in a With a more formal dinner At a party / celebration / end of the day bar / restaurant in a restaurant big night out / : statistically significantly higher / lower than previous wave at a 95% confidence level 123 Wine Intelligence Vinitrac® Canada, Oct’14 and Oct‘19, n>=250 Québécois regular wine drinkers AWARENESS VS. PURCHASE
Similar to the rest of the country, the top brand by awareness is Australian brand Yellow Tail
Top 15 brands by awareness and respective purchase level of Québécois Base = All Québécois regular wine drinkers (n=250)
Yellow Tail 20% 67%
Mouton Cadet 16% 64%
Ménage à Trois 16% 63%
Jacob's Creek 19% 62%
Wallaroo Trail 15% 56%
Gallo Family Vineyards 18% 56%
Woodbridge 13% 48% % who have heard of the Barefoot 11% 47% following brands
Nicolas Laloux 13% 47% % who have bought the following brands in the past 3 months Kim Crawford 12% 43%
J.P. Chenet 12% 41%
Ruffino 11% 40%
Casillero del Diablo 8% 40%
Oyster Bay 7% 39%
Fuzion Zuccardi 6% 36% 124 Wine Intelligence Vinitrac® Canada, Oct‘19, n=250 Québécois regular wine drinkers BRAND HEALTH: AWARENESS
The proportion of Québécois regular wine drinkers aware of a variety of well-known brands has increased significantly since 2014
Awareness: Tracking % who have heard of the following brands Base = All Québécois regular wine drinkers (n>=250)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 2019 n= 258 254 250 vs. '14 vs. '17 1 Yellow Tail 53% 59% 67% 26 Apothic 14% 22% 26% 2 Mouton Cadet 63% 61% 64% 27 Gato Negro 23% 21% 22% 3 Ménage à Trois 51% 64% 63% 28 Wayne Gretzky Estates n/a 9% 22% n/a 4 Jacob's Creek 53% 52% 62% 29 Cupcake 15% 20% 21% 5 Wallaroo Trail 37% 51% 56% 30 Mission Hill 21% 15% 21% 6 Gallo Family Vineyards 61% 58% 56% 31 Rosemount Estate 17% 13% 20% 7 Woodbridge 43% 52% 48% 32 Inniskillin 25% 15% 20% 8 Barefoot 32% 40% 47% 33 Monkey Bay 9% 11% 19% 9 Nicolas Laloux n/a n/a 47% n/a n/a 34 Les Dauphins n/a 13% 17% n/a 10 Kim Crawford 23% 33% 43% 35 Campo Viejo 12% 12% 16% 11 J.P. Chenet 43% 45% 41% 36 Fetzer 21% 18% 15% 12 Ruffino n/a 35% 40% n/a 37 George Wyndham n/a 8% 15% n/a 13 Casillero del Diablo 39% 29% 40% 38 Frontera 13% 13% 14% 14 Oyster Bay 25% 31% 39% 39 Peller Estates 13% 11% 14% 15 Fuzion Zuccardi 43% 36% 36% 40 Ravenswood 13% 15% 14% 16 Jackson-Triggs 37% 31% 36% 41 Sawmill Creek 12% 9% 13% 17 Trapiche 30% 35% 34% 42 Peter Lehmann n/a 12% 12% n/a 18 Robert Mondavi 25% 30% 34% 43 Pelee Island 9% 6% 11% 19 Masi 37% 39% 33% 44 Naked Grape 12% 8% 11% 20 Revolution n/a n/a 28% n/a n/a 45 Santa Carolina 9% 10% 10% 21 Beringer n/a 32% 28% n/a 46 Bodacious 5% 4% 8% 22 Torres 39% 31% 28% 47 Wakefield 3% 9% 7% 23 Wolf Blass 19% 16% 28% 48 Aveleda n/a n/a 7% n/a 24 Lindeman's 29% 29% 27% 49 McWilliam's 11% 7% 7% 25 Two Oceans 30% 23% 27% 50 Hardys 9% 6% 7%
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 125 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers BRAND HEALTH: PURCHASE
Brand purchase has remained broadly stable, with Yellow Tail, Jacob’s Creek and Gallo Family Vineyards ranking in the top 3
Purchase: Tracking % who have bought the following brands in the past 3 months Base = All Québécois regular wine drinkers (n>=250)
Rank Brand 2014 2017 2019 Tracking Rank Brand 2014 2017 2019 Tracking 2019 n= 258 254 250 vs. '14 vs. '17 2019 n= 258 254 250 vs. '14 vs. '17 1 Yellow Tail 18% 13% 20% 26 Campo Viejo 2% 2% 4% 2 Jacob's Creek 17% 16% 19% 27 Rosemount Estate 2% 1% 4% 3 Gallo Family Vineyards 17% 17% 18% 28 Les Dauphins n/a 2% 3% n/a 4 Mouton Cadet 17% 13% 16% 29 Robert Mondavi 5% 5% 3% 5 Ménage à Trois 18% 18% 16% 30 Ravenswood 2% 4% 3% 6 Wallaroo Trail 10% 11% 15% 31 Gato Negro 5% 1% 3% 7 Masi 15% 15% 13% 32 Cupcake 5% 5% 2% 8 Nicolas Laloux n/a n/a 13% n/a n/a 33 Fetzer 3% 4% 2% 9 Woodbridge 11% 11% 13% 34 Wolf Blass 4% 2% 2% 10 Kim Crawford 7% 11% 12% 35 Frontera 3% 3% 2% 11 J.P. Chenet 14% 11% 12% 36 Monkey Bay 1% 2% 2% 12 Barefoot 10% 9% 11% 37 Naked Grape 1% 2% 2% 13 Ruffino n/a 11% 11% n/a 38 Bodacious 2% 0% 2% 14 Revolution n/a n/a 9% n/a n/a 39 Mission Hill 1% 1% 2% 15 Trapiche 9% 9% 8% 40 Aveleda n/a n/a 1% n/a 16 Jackson-Triggs 6% 5% 8% 41 Santa Carolina 1% 2% 1% 17 Casillero del Diablo 9% 5% 8% 42 Peter Lehmann n/a 1% 1% n/a 18 Apothic 4% 7% 7% 43 Pelee Island 1% 1% 1% 19 Oyster Bay 4% 4% 7% 44 Peller Estates 0% 3% 1% 20 Torres 7% 4% 7% 45 Wakefield 0% 1% 1% 21 Fuzion Zuccardi 12% 6% 6% 46 Farnese n/a n/a 1% n/a n/a 22 Beringer n/a 8% 5% n/a 47 Sawmill Creek 0% 1% 1% 23 Lindeman's 6% 4% 5% 48 XOXO n/a n/a 1% n/a n/a 24 Two Oceans 5% 2% 4% 49 Wayne Gretzky Estates n/a 1% 1% n/a 25 Inniskillin 3% 2% 4% 50 Carlo Botter n/a n/a 1% n/a
/ : statistically significantly higher / lower than previous waves at a 95% confidence level 126 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers BRAND HEALTH: CONVERSION
Masi, Revolution and Gallo Family Vineyards perform the best in converting those aware into purchasers
Conversion: Tracking % who have bought the following brands in the past 3 months Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Masi 41% 38% 39% 26 Casillero del Diablo 23% 16% 19% 2 Revolution n/a n/a 33% n/a n/a 27 Rosemount Estate 12% 7% 19% 3 Gallo Family Vineyards 27% 29% 31% 28 Oyster Bay 17% 14% 18% 4 Jacob's Creek 32% 30% 30% 29 Fuzion Zuccardi 28% 18% 18% 5 Yellow Tail 34% 22% 30% 30 Beringer n/a 26% 17% n/a 6 J.P. Chenet 32% 25% 28% 31 Lindeman's 21% 13% 17% 7 Kim Crawford 29% 32% 28% 32 Naked Grape 10% 27% 16% 8 Apothic 29% 31% 28% 33 Two Oceans 16% 9% 16% 9 Nicolas Laloux n/a n/a 28% n/a n/a 34 XOXO n/a n/a 15% n/a n/a 10 Ruffino n/a 33% 27% n/a 35 Wakefield 0% 8% 15% 11 Wallaroo Trail 28% 21% 27% 36 Fetzer 14% 21% 15% 12 Woodbridge 26% 21% 26% 37 Frontera 21% 20% 14% 13 Mouton Cadet 27% 22% 26% 38 Santa Carolina 15% 19% 13% 14 Ménage à Trois 35% 28% 26% 39 Gato Negro 22% 7% 13% 15 Torres 19% 14% 25% 40 Carlo Botter n/a n/a 12% n/a n/a 16 Barefoot 31% 23% 24% 41 Cupcake 34% 25% 11% 17 Farnese n/a n/a 24% n/a n/a 42 Peter Lehmann n/a 9% 11% n/a 18 Campo Viejo 15% 16% 24% 43 Pelee Island 10% 12% 10% 19 Trapiche 29% 25% 24% 44 Monkey Bay 7% 17% 10% 20 Jackson-Triggs 16% 17% 22% 45 Robert Mondavi 20% 16% 9% 21 Aveleda n/a n/a 21% n/a n/a 46 Peller Estates 4% 33% 9% 22 Ravenswood 12% 26% 21% 47 Wolf Blass 24% 11% 8% 23 Bodacious 33% 8% 20% 48 Mission Hill 7% 9% 7% 24 Les Dauphins n/a 15% 20% n/a 49 Sawmill Creek 1% 7% 7% 25 Inniskillin 11% 14% 19% 50 Hardys 7% 17% 6%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 127 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers BRAND HEALTH: CONSIDERATION
Since 2017, consideration has remained broadly stable, with the exception of domestic brand Pelee Island, which experienced a steep rise in the proportion of Québécois wine consumers who are aware of the brand that would consider buying it
Consideration: Tracking Due to methodology % who would consider buying the following brands changes, Base = Those who have heard of each brand consideration Rank Tracking Rank Tracking tracking for Brand 2017 2019 Brand 2017 2019 2019 vs. '17 2019 vs. '17 2014 is not 1 Pelee Island 35% 71% 26 Barefoot 48% 47% available 2 Masi 69% 67% 27 Beringer 50% 46% 3 Kim Crawford 59% 59% 28 Nicolas Laloux n/a 46% n/a 4 Hardys 64% 59% 29 Torres 48% 45% 5 Jacob's Creek 52% 57% 30 Lindeman's 36% 45% 6 Ruffino 59% 56% 31 Yellow Tail 43% 45% 7 Jackson-Triggs 49% 56% 32 Robert Mondavi 50% 44% 8 Oyster Bay 43% 56% 33 Santa Carolina 43% 44% 9 Peller Estates 54% 55% 34 Casillero del Diablo 41% 43% 10 Bodacious 28% 55% 35 Gato Negro 31% 43% 11 Mouton Cadet 54% 55% 36 Wallaroo Trail 45% 43% 12 Naked Grape 54% 55% 37 Sawmill Creek 45% 42% 13 Revolution n/a 54% n/a 38 Fuzion Zuccardi 43% 41% 14 Trapiche 48% 53% 39 Frontera 28% 41% 15 J.P. Chenet 56% 53% 40 Aveleda n/a 40% 16 Ménage à Trois 52% 52% 41 Two Oceans 37% 40% 17 Les Dauphins 29% 51% 42 Fetzer 33% 40% 18 Inniskillin 40% 51% 43 Monkey Bay 53% 39% 19 Campo Viejo 54% 50% 44 Ravenswood 56% 39% 20 Woodbridge 47% 50% 45 Wayne Gretzky Estates 46% 38% 21 Gallo Family Vineyards 44% 50% 46 Copper Moon 39% 38% 22 Peter Lehmann 36% 50% 47 George Wyndham 57% 38% 23 XOXO n/a 49% n/a 48 Mission Hill 44% 37% 24 Apothic 53% 47% 49 Cupcake 47% 34% 25 Wolf Blass 41% 47% 50 Rosemount Estate 32% 31%
= small sample size / : statistically significantly higher / lower than previous wave at a 95% confidence level 128 Wine Intelligence Vinitrac® Canada, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers BRAND HEALTH: AFFINITY
Half of the top 8 brands have experienced a significant increase in the proportion of consumers who believe the brands are right for people like them, with Jackson-Triggs almost doubling in the proportion of those who feel affinity for the brand over the past two years Affinity: Tracking % who think the following brands are right for people like them Base = Those who have heard of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Masi 36% 52% 56% 26 Robert Mondavi 29% 29% 33% 2 Peller Estates 22% 45% 44% 27 Casillero del Diablo 19% 21% 33% 3 Naked Grape 11% 28% 44% 28 Beringer n/a 28% 32% n/a 4 Jackson-Triggs 25% 23% 44% 29 Peter Lehmann n/a 27% 31% n/a 5 Mouton Cadet 33% 42% 43% 30 Yellow Tail 26% 25% 30% 6 Ruffino n/a 39% 42% n/a 31 Oyster Bay 26% 21% 30% 7 Pelee Island 23% 43% 41% 32 Fuzion Zuccardi 20% 17% 28% 8 Fetzer 17% 25% 41% 33 Santa Carolina 23% 26% 28% 9 Copper Moon n/a 58% 41% n/a 34 Wallaroo Trail 25% 25% 27% 10 Jacob's Creek 34% 41% 40% 35 Lindeman's 20% 25% 27% 11 Bodacious 11% 7% 40% 36 Nicolas Laloux n/a n/a 26% n/a n/a 12 Wolf Blass 31% 22% 39% 37 Torres 23% 30% 24% 13 Kim Crawford 32% 38% 39% 38 Monkey Bay 5% 24% 24% 14 Aveleda n/a n/a 38% n/a 39 Sawmill Creek 14% 29% 23% 15 Apothic 38% 33% 37% 40 XOXO n/a n/a 22% n/a n/a 16 Woodbridge 28% 26% 36% 41 Gato Negro 19% 12% 21% 17 Inniskillin 26% 31% 36% 42 Wayne Gretzky Estates n/a 19% 21% n/a 18 Campo Viejo 15% 29% 36% 43 Cupcake 24% 27% 20% 19 Revolution n/a n/a 36% n/a n/a 44 Mission Hill 14% 25% 20% 20 Barefoot 26% 30% 35% 45 Two Oceans 18% 16% 20% 21 Gallo Family Vineyards 32% 28% 35% 46 Carlo Botter n/a n/a 19% n/a 22 Trapiche 29% 27% 35% 47 Ravenswood 5% 22% 17% 23 Les Dauphins n/a 18% 34% n/a 48 Hardys 13% 37% 17% 24 Ménage à Trois 38% 32% 34% 49 George Wyndham n/a 23% 17% n/a 25 J.P. Chenet 28% 26% 34% 50 Frontera 30% 14% 15%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 129 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct’19, n>=250 Québécois regular wine drinkers BRAND HEALTH: RECOMMENDATION
Masi ranks as the top brand for recommendation, followed by Kim Crawford and Mouton Cadet
Recommendation: Tracking % who would recommend each brand to a friend Base = Those aware of each brand
Rank Tracking Rank Tracking Brand 2014 2017 2019 Brand 2014 2017 2019 2019 vs. '14 vs. '17 2019 vs. '14 vs. '17 1 Masi 54% 55% 52% 26 Campo Viejo 29% 26% 31% 2 Kim Crawford 41% 44% 48% 27 Fetzer 29% 19% 30% 3 Mouton Cadet 48% 50% 47% 28 Barefoot 37% 29% 30% 4 Jacob's Creek 36% 43% 43% 29 Beringer n/a 38% 30% n/a 5 Ruffino n/a 44% 40% n/a 30 Yellow Tail 32% 23% 29% 6 Ménage à Trois 45% 36% 40% 31 Farnese n/a n/a 28% n/a n/a 7 Jackson-Triggs 29% 33% 40% 32 Torres 28% 35% 28% 8 Woodbridge 34% 31% 39% 33 Wallaroo Trail 30% 27% 27% 9 J.P. Chenet 37% 36% 39% 34 Wayne Gretzky Estates n/a 18% 25% n/a 10 Peller Estates 26% 39% 37% 35 Lindeman's 25% 20% 25% 11 Trapiche 39% 28% 36% 36 Santa Carolina 20% 26% 24% 12 Revolution n/a n/a 36% n/a n/a 37 Nicolas Laloux n/a n/a 24% n/a n/a 13 Inniskillin 33% 24% 35% 38 Cupcake 36% 29% 23% 14 Apothic 44% 42% 35% 39 Casillero del Diablo 23% 28% 23% 15 Naked Grape 24% 18% 35% 40 Ravenswood 19% 24% 21% 16 Aveleda n/a n/a 35% n/a 41 George Wyndham n/a 14% 19% n/a 17 Peter Lehmann n/a 22% 35% n/a 42 Mission Hill 21% 32% 19% 18 Oyster Bay 22% 25% 35% 43 Gato Negro 26% 15% 18% 19 Gallo Family Vineyards 39% 30% 34% 44 Fuzion Zuccardi 21% 25% 18% 20 Pelee Island 18% 31% 34% 45 McWilliam's 24% 25% 17% 21 Robert Mondavi 35% 36% 33% 46 Two Oceans 24% 22% 17% 22 Bodacious 8% 7% 31% 47 Sawmill Creek 14% 11% 16% 23 XOXO n/a n/a 31% n/a n/a 48 Copper Moon n/a 36% 16% n/a 24 Wolf Blass 36% 31% 31% 49 Rosemount Estate 16% 31% 15% 25 Les Dauphins n/a 21% 31% n/a 50 Monkey Bay 5% 32% 13%
= small sample size / : statistically significantly higher / lower than previous waves at a 95% confidence level 130 Wine Intelligence Vinitrac® Canada, Oct’14, Oct’17 and Oct‘19, n>=250 Québécois regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
131 CANADA PORTRAITS SEGMENTATION
Engaged Explorers: younger and mid-aged, confident wine drinkers who enjoy discovering new wine. Wine is important to their lifestyles so they are willing to Kitchen Casuals: infrequent, mid-aged to invest time and money in the category older wine drinkers who show little interest in the wine category and tend to stick to 9% the narrow range of wines that they know Enthusiastic Treaters: the youngest and most 24% 8% frequent wine drinking group, they have a strong interest in the category, yet lack some confidence in their own wine knowledge
Contented Occasionals: the least frequent wine drinkers and an older 21% Mainstream Matures: the oldest segment, segment, with fairly low wine 14% they are frequent wine drinkers who enjoy knowledge and little interest in learning drinking wine at home in the evening, and who more. They are likely to stick to the through their experience in the category, feel brands and styles of wine they know competent in their wine knowledge and trust 24%
Social Newbies: younger wine drinkers, who drink wine fairly infrequently, but who enjoy wine in social settings out with friends, relying heavily on recommendations
132 Wine Intelligence Vinitrac® Canada, Oct‘19, n=1,000 Canadian regular wine drinkers CONTENTS
▪ Introduction p.4
▪ Management Summary p.6
▪ Overview of Canadian wine market p.20
▪ Overview of Canadian wine consumers p.26
▪ Wine Intelligence Global Brand Power Index: Canada p.33
▪ English-speaking Canada vs. Québec p.45
▪ Hot topic: Québécois rosé drinkers p.55
▪ English-speaking Canada with tracking p.62
▪ Québec with tracking p.97
▪ Canada Portraits segmentation p.132
▪ Research Methodology p.134
133 RESEARCH METHODOLOGY
Vinitrac®
▪ The data for this survey was collected in Canada in Oct-14 Oct-16 Oct-18 Oct-19 October 2014, October 2016, October 2018 and October n= 1,002 1,000 1,000 1,000 2019 Gender Male 50% 52% 50% 51% Female 50% 48% 50% 49% ▪ Data was gathered via Wine Intelligence’s Vinitrac® Total 100% 100% 100% 100% online survey Age 19-24 9% 11% 9% 7% 25-34 19% 17% 20% 22% 35-44 16% 17% 22% 18% ▪ Respondents were screened to ensure that they drink 45-54 19% 18% 13% 17% wine at least once a month; drink red, white or rosé 55-64 18% 18% 18% 17% wine; and buy wine in the off-premise or in the on- 65 and over 19% 18% 18% 20% premise Total 100% 100% 100% 100% Province Quebec 26% 28% 25% 25% ▪ Invalid respondents (those who sped through the survey Ontario 40% 39% 39% 38% or gave inconsistent answers to selected questions) were West 28% 28% 30% 31% removed before analysis Other Provinces 6% 5% 5% 5% Total 100% 100% 100% 100% ▪ The data is representative of Canadian regular wine Source: Wine Intelligence, Vinitrac® Canada, October 2014 (n = 1,002), October drinkers in terms of gender, age and Canada Provinces 2016 (n = 1,000), October 2018 (n = 1,000) and October 2019 (n = 1,000) Canadian regular wine drinkers ▪ The distribution of the sample is:
134 RESEARCH METHODOLOGY
Vinitrac®
How does Vinitrac® work?
1) Defining the right samples: ▪ Wine Intelligence, with the support of global research companies (e.g. TNS, YouGov), regularly runs calibration studies in each market in order to define demographic specifications of the wine consumers and the size of the market (i.e. penetration of wine consumption)
2) Running the online survey: ▪ Invitations to participate in an online survey programmed by Wine Intelligence are then distributed to residents in each market ▪ Respondents are directed to a URL address, which provides access to the online survey ▪ Based on given criteria (e.g. age, beverage, frequency of wine consumption) respondents will either proceed or screen out of the survey ▪ Wine Intelligence monitors completed responses to build samples representative of the target markets’ wine drinking population based on the most recent calibration study
3) Cleaning the data: ▪ When a representative sample is logged, the survey is closed ▪ Wine Intelligence will then clean out all invalid data points (e.g. those who sped through the survey or gave inconsistent answers to selected questions) and weight the data in order to ensure representability
135 RESEARCH METHODOLOGY
Qualitative
Trade interview methodology
▪ Trade Interviews were conducted with three experienced industry professionals in the Canadian wine trade in December 2019 and January 2020
▪ Interviews followed a pre-determined discussion guide, and covered overall market trends, opportunities for different wine styles, retail channels and pricing
▪ The three interviewees were members of the wine trade working in different roles: ▪ 1 x Wine Buyer ▪ 1 x Director of a Wine and Spirits Agency ▪ 1 x Export Manager
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