Rías Baixas Trade Study

December 28, 2011

PO Box 536 • St. Helena, CA 94574 • (707) 967-9299 [email protected] • WineOpinions.com

Table of Contents

Introduction 1

Objectives and Methodology 2

Trade Respondent Profile 4

Rías Baixas and its Competitors 9

Trade Perceptions of Rías Baixas Albariño 17

Rías Baixas Wine Strengths and Weaknesses 25

Promotions Exposure 28

Conclusions 33

Survey Questionnaire 35

Introduction

Wine Opinions is an Internet-based research company focusing on the attitudes, behaviors, and taste preferences of the segment of U.S. wine drinkers who are the most frequent purchasers and consumers of wine. To this end, Wine Opinions maintains one of the largest online panels of highly involved wine consumers ever assembled. In addition, Wine Opinions maintains a U.S. wine trade panel that includes wine producers, growers, importers, distributors, those who work on-premise and off- premise, members of the wine media, and others.

Cornerstone Communications represents the Rías Baixas wine region of Spain in the U.S. and is engaged in a promotional campaign on behalf of the region. This campaign is aimed at U.S. wine consumers and members of the U.S. wine trade with a goal of increasing the awareness of the Rías Baixas wine region, and its Albariño wine in particular, through an advertising and promotion program. Wine Opinions was retained to conduct a study among the U.S. wine trade to gauge the current perceptions of Rías Baixas. This report summarizes the findings from this study.

Objectives and Methodology

The primary goal of this research was to measure awareness and attitudes toward Rías Baixas wines and Rías Baixas Albariño among the wine trade and determine how the trade perceives these wines in comparison to key competitors. Specifically, the goals of this survey were to:

Identify trade attitudes toward Rías Baixas Albariño.

Measure trade opinion of the quality and value of Rías Baixas Albariño compared to wines from other wine regions.

Determine sales of Rías Baixas wines and Rías Baixas Albariño compared to the competition.

Compare Rías Baixas promotions with those of other leading trade groups.

Obtain commentary from all trade respondents on market strengths and weaknesses of Rías Baixas wine, and flavor profile of and best food pairings for Rías Baixas Albariño.

Gauge perceptions of appropriate Rías Baixas Albariño pricing and target markets for Rías Baixas wine.

All Wine Opinions trade panelists were sent an email invitation to the survey, with a link to the online survey embedded in the invitation (a copy of the survey questionnaire may be found at end of this report). Completion of the survey entered the panelist into a lottery for various cash rewards. In addition, some participants were obtained from a trade mailing by Cornerstone, linked to the same survey.

A total of 310 members of the trade participated in the study (290 Wine Opinions trade panel members, 20 Cornerstone respondents). After eliminating the grape grower, wine producer, and wine association segments, total completions numbered 257.

In some instances, questions were analyzed by:

Industry tier – a comparison of wholesalers/importers, respondents who work on-premise, retailers, and a segment that includes media/education/consultants and marketing and public relations specialists.

East Coast vs. Other States – those who live in Maine, Massachusetts, New Hampshire, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, North and South Carolina, Georgia, and Florida vs. those who live in all other U.S. states.

Where statistically significant results are reported, these have been calculated at a confidence level of at least 90%. For the entire sample, the confidence intervals range approximately from ±2% to ±5%.

Trade Respondent Profile

There are no nationally established norms for the demographics of members of the U.S. wine trade. Therefore, the profile of the respondent population that participated in this study may not be demographically representative of the national wine trade as a whole.

Respondents in total were 67% male and 33% female – a male skew, but in line with previous trade research conducted by Wine Opinions.

The generational segmentation of the respondent group was in conformance with previous trade respondent demographics. Some 13% of respondents were Millennials, 27% were of Generation X, 55% were Baby Boomers, and 5% were aged 66 or older.

Winery/producer, grape grower, and trade association respondents were eliminated from the respondent pool to better focus this research on segments of the trade of most interest to Cornerstone Communications. After eliminating these industry segments, the respondents were distributed across the remaining industry tiers with 12% representing importers, 25% describing themselves as employed by the distributor tier; 16% in the restaurant/hospitality tier; 20% in the retail tier; 20% in a tier comprised of wine media, educators, and academics; and 7% in wine industry-related marketing and public relations jobs, wine consultants, and others who provide services or supplies to the wine trade.

Among the trade tiers that were not filtered out, 21% worked in California, 13% in New York, 4% to 6% each in Florida, Illinois, Maryland, Massachusetts and New Jersey. Only Alabama, Alaska, Iowa, Nebraska, Oklahoma, the Dakotas, South Carolina and West Virginia had no respondents.

An assessment of media usage examined the respondents’ usage of online media and social networks.

In the website and blog arena, Wine Spectator online is the most “frequently” visited (38%). There was a large gap between the “frequent” visitation rate for Wine Spectator online and all other online media. The second most popular website/blog was eRobertParker (27% visit “frequently”), followed by Eric Asimov’s blog (21%) and Wine Enthusiast online (19%). Wine Spectator online was the only website that more respondents visit “frequently” than “occasionally” (35%). The largest proportion of respondents visit most websites “occasionally” (one-quarter to one-third of respondents). Significant minorities have never heard of Nat Decants (45%), Vinography (31%), Terroirist (42%), Jon Bonne’s Blog (41%), and 1WineDude (44%). The majority of respondents were unaware of Bigger Than Your Head (61%).

In examining blog and website usage by trade tier, it was observed that respondents in the media/other segment (this includes suppliers, consultants, PR, and marketing) tend to read blogs far more often than other trade tiers. Compared to respondents in other tiers of the trade, these respondents were more aware of and have visited nearly all of the blogs included in this survey. In contrast, wholesalers/importers generally look at the more popular websites that focus on reviews more often than other respondents.

The most utilized social media service for posting, discussing, or getting information about wine is Facebook. One-third use it at least once a day (32%), and one-quarter weekly (26%) for wine-related purposes. Used by fewer respondents was Twitter, used at least daily by 24% and weekly by 13%. At-least-daily usage rates for LinkedIn and Google+ were higher than YouTube (13% and 14% vs. 6%). However, nearly half of respondents don’t use Twitter (47%), Google+ (48%), or YouTube (45%) for wine- related purposes at all, compared to 39% who don’t use LinkedIn and 25% who don’t use Facebook for wine-related purposes.

Rías Baixas and its Competitors

Trade respondents were asked to rate the typical quality and value of Rías Baixas Albariño and white wines from a variety of other wine regions that cost under $20. They used a four-point scale: “excellent,” “good,” “fair,” and “poor” and could also indicate if they had “no opinion.” The wines rated included:

• Albariño from Rías Baixas • Albariño from California • Sauvignon Blanc from New Zealand • Sauvignon Blanc from California • Sauvignon Blanc from Chile • Pinot Grigio from Italy • Torrontes from Argentina • Gruner Veltliner from Austria • Riesling from Washington State

Rías Baixas Albariño and New Zealand Sauvignon Blanc were statistically tied for the lead in quality. Half of the trade respondents rated Rías Baixas Albariño (50%) and nearly half rated New Zealand Sauvignon Blanc (47%) “excellent” on quality. There was a fairly large gap between these two top rated wines and the next tier. Over one- third rated Gruner Veltliner (39%), and close to one-third rated Washington Riesling (32%) “excellent.” California Albariño does not seem to be a competitor at this time, as it suffers from a significant amount of “no opinion” responses (37%), indicating a lack of familiarity by survey participants. In addition, this wine was rated “fair” by the largest proportion of respondents (28%). California Sauvignon Blanc and Torrontes from Argentina were seen favorably. They received “good” quality ratings by the most respondents (57% and 60% respectively), but significantly fewer “excellent” ratings than Rías Baixas Albariño (21% and 20% respectively). Chilean Sauvignon Blanc and Italian Pinot Grigio were rated lowest on quality, with the majority rating them either “good” (46% and 40% respectively) or “fair” (28% and 35%).

Quality ratings for Rías Baixas Albariño were fairly consistent across tiers of the trade, with “excellent” ratings higher than “good” ratings for all tiers except for the on-premise segment for which “good” ratings beat “excellent” ratings by only three percentage points (38% vs. 35%). Off-premise retailers were especially enthusiastic about the quality of these wines (59% “excellent” ratings), as were importers and distributors (54%).

In terms of value, Chilean Sauvignon Blanc and Torrontes from Argentina rose to the top with 35% rating it “excellent.” Rías Baixas Albariño was among the second tier of wines that received “excellent” value ratings by approximately one-quarter of respondents. Within this tier, Rías Baixas Albariño had a slight edge (29% “excellent” value ratings) over New Zealand Sauvignon Blanc (27%), Gruner Veltliner (25%), and Washington Riesling (24%). The value ratings for California Sauvignon Blanc and Italian Pinot Grigio were relatively low. They received significantly more “fair” value ratings than most other wines (39% and 32% respectively), and significantly fewer “excellent” ratings than most other wines (8% and 9% respectively). California Albariño, again, was least known (37%) and received the lowest value ratings.

As with quality ratings, value ratings were also fairly consistent across tiers of the trade, despite being lower on average than the quality ratings. It is quite common for value ratings to lag quality ratings, as evidenced many times in previous surveys for many domestic and imported wines. Directionally, Rías Baixas “excellent” ratings for value were higher among the on-premise (35%) and off-premise (33%) tiers, and lower among importer/distributor (28%) and media/other (23%) respondents.

The sales trends of Spanish wines from a variety of regions were assessed. Respondents were asked if their sales of wines from the following regions had gone up, down, or remained the same in the past year:

• Castilla la Mancha • Jerez • Navarra • Rías Baixas • Ribera del Duero • Rioja • Rueda

At least half of the respondents don’t sell most of these wines, the exceptions being Rioja (61%) and Ribera del Duero (52%). Readers should bear in mind that the media, education and some of the “other” respondents do not sell any wines, and represent about 23% of the sample. Just half sell wines from Rías Baixas (50%). However, overall, all of these regions showed substantial net sales gains. Approximately two- thirds reported sales growth for Rioja (69%), Rías Baixas (63%), Ribera del Duero

(61%), and Rueda (58%). Rías Baixas stood out in terms of “significant” sales increases (24%), followed by Ribera del Duero (18%), Rueda (17%), and Rioja (15%). For Navarra and Jerez, more respondents indicated sales were flat (49% and 46% respectively) than reported increased sales (42% and 36%). The number of respondents who experienced sales increases for Castilla la Mancha were on par with those who saw no change in sales (48%). Only Jerez showed a decrease in sales among more than 10% of respondents (18%). All other regions showed only a single- digit decline. Clearly, sales of Spanish wines have been strong on a broad front; however, Rías Baixas Albariño has the highest proportion reporting significant sales increases.

Sales of Rías Baixas wines on the East Coast showed more positive growth than in other parts of the country. A full three-quarters of those on the East Coast noted an increase in sales in Rías Baixas wines over the past year (75%), compared to just over one-half of other respondents (53%).

In a subsequent question, respondents were asked to compare the sales of Rías Baixas Albariño vs. several competing types of white wine, produced both inside and outside Spain. The majority of respondents reported that Rías Baixas Albariño was outsold by Sauvignon Blanc and Riesling from any country or region (59% and 55% reported Rías Baixas sales “somewhat” and “much” less), and Italian Pinot Grigio (58%). Moreover, Pinot Grigio more dramatically outsells Rías Baixas Albariño on the East Coast (57% “sell much less”) than in other parts of the country (36%). This is not surprising, given that each of these varieties form substantial categories, with numerous offerings from around the world.

Gruner Veltliner was also perceived as a significant competitor. Over one-quarter indicated their Rías Baixas Albariño sales were lower than their Gruner Veltliner sales (28%), compared to only 15% who said their Rías Baixas Albariño sales were higher than their Gruner Veltliner sales. Rías Baixas Albariño net sales were reported as greater than white wines from Rioja (25% sell more Albariño and 18% sell less) and on par with white wines from Rueda (20% sell more and 19% sell less).

Trade Perceptions of Rías Baixas Albariño

Respondents were asked if they agreed with a series of sales-related statements about Rías Baixas Albariño. Most apparent from the results of this question was the overwhelmingly belief on the part of the trade respondents that consumers are unaware of Rías Baixas as a region in Spain (only 11% indicated customers are aware). Rías Baixas Albariño is perceived most often by the trade as an alternative to Sauvignon Blanc (48%).

Support for the screw cap was fairly substantial, especially on the East Coast. One- third believes sales could be better if most Albariño s were sealed with a screw cap (33%). This rate rose to 39% among East Coasters compared to 28% of respondents from other states. When those who don’t sell Albariño were omitted from the data, this rate of screw cap supporters rose to over half.

A significant minority of the trade respondents thinks these wines are fairly consistent in style across brands (31%). Over one-quarter agreed that a main attraction to the wine is its food-friendliness (28%), and just as many agreed these wines are considered mainly summer seasonal (28%). Marketing Rías Baixas Albariño s as made by female winemakers was not quite as well received (24%).

Looking at attitudes toward Rías Baixas Albariño by tier of the trade, importers and wholesalers were the most positive about screw top wines being good for sales (43% vs. 21% of on-premise, 39% of off-premise, and 22% of media/others). Off-premise respondents had the highest level of agreement that Rías Baixas Albariño is a great alternative to Sauvignon Blanc (75% vs. 45% of importers/wholesalers, 31% of on- premise, and 41% of media/others), and that calling attention to Rías Baixas’ female winemakers would be a benefit (36%), especially when compared to the on-premise tier (10%).

Delving deeper into perceptions of Rías Baixas Albariño, respondents were asked to describe the typical flavor profile of Albariño from Rías Baixas and their opinion of the best food pairings for this wine using an open-ended format.

In total, 177 respondents submitted a flavor description. It was clear from these descriptions that Rías Baixas Albariño is best known for its acidity and citrus-related flavor components, more specifically lemon, lime and grapefruit. These two descriptors were mentioned by approximately half of those who answered (90 and 84 mentions respectively). Related to acidity, there were also 42 comments about the freshness and

zestiness of Albariño. Less frequent but still prominent were mentions of the wine’s fruity (61 mentions), mineral-related (50), and floral aspects (46). Other fruit-specific descriptions included peach/apricot/nectarine (42), apple/pear (30), and tropical fruits (24).

Rías Baixas Albariño Flavor Profile

% of Category Mentions Respondents Citrus, lemon, lime, grapefruit, etc. 90 51% Acidity, tangy, tart, crisp, etc. 84 47% Fruit, fruit-forward, fruity 61 34% Mineral, chalk, slate, gravel, etc. 50 28% Floral, flowery, jasmine, etc. 46 26% Peach, apricot, nectarine 42 24% Fresh, zesty, refreshing, etc. 42 24% Apple, pear 30 17% Exotic fruits, guava, kiwi, pineapple, etc. 24 14% Light, light body 23 13% White 20 11% Dry 20 11% Medium body 20 11% Green, herbal, herbaceous, etc. 19 11% Clean, crystalline 18 10% Saline, marine, briny, sea, etc. 16 9% Full, opulent, fatter, etc. 13 7% Aromatic, bouquet 12 7% Balanced 12 7% Nutty, almond, etc. 9 5% Intense, vibrant, lively 7 4% Low alcohol 7 4% Honey 7 4% Mellow, soft 6 3% Friendly, forward 6 3% Ripe 6 3% Spritzy, carbonation, frizzante, etc. 4 2%

A total of 180 respondents also responded to a question on food pairing with Rías Baixas. As “acidity” was Albariño's key flavor descriptor, seafood was unsurprisingly the preferred food pairing. Seafood in general had the highest frequency of mentions (82, or 46% those who submitted a comment), but many seafood descriptions were more detailed. Crustaceans like crab, lobster, and shrimp, were mentioned most often (72), followed by shellfish such as clams and mussels (57). Chicken was mentioned by one- quarter of responding survey participants (45 mentions). Surprisingly, Spanish dishes were not top pairings and were limited to a few mentions of paella (3) and tapas (6). There was no mention of Galician or regional cuisine at all, perhaps suggesting a lack of familiarity with this region and its cuisine. This can also be interpreted as a positive indication that Albariño is perceived as a more versatile, food-friendly wine.

Best Food Pairings for Rías Baixas Albariño

% of Type of Food Mentions Respondents Seafood in general, a variety of preparations or styles 82 46% suggested Crustaceans: Crab, lobster, shrimp 72 40% Shellfish: barnacles, clams, oyster, scallops, mussels 57 32% Poultry: mostly chicken, 1 each duck/goose. Many of the 45 25% chicken dishes mention "light", "salad" or "simple" Lighter dishes or sauces 32 18% Salad, green salad, seafood salad, Cesar salad 27 15% Cheese in general; manchego, feta, goat named 23 13% specifically Vegetable dishes, vegetarian, asparagus, tomato, etc. 17 9% Pasta, often with seafood or light or cream sauce 16 9% White, referring to either white sauces or white fleshed 16 9% meat, poultry Grilled foods, typically veggies, shrimp or fish 13 7% Chinese or Southeast Asian, including specific mentions 12 7% of Cantonese, Vietnamese, Thai and dim sum Spicy foods 12 7% Pork, several mentioned with apples or apricots 11 6% Raw seafood: ceviche, sushi 10 6% Specific finned fish: halibut, monkfish, salmon, snapper, 10 6% tuna

% of Type of Food (continued) Mentions Respondents Meat, almost always with modifiers Light or White 8 4% Anything or everything; versatile 8 4% Cream sauces, creamy dishes 7 4% Mild dishes 6 3% Tapas 6 3% Citrus sauces, garnishes, salsa 4 2% Fried foods, Fruit dishes or sauces, Salty dishes, 4 2% Summery foods Charcuterie, ham, prosciutto, Serrano, etc. 3 2% Paella 3 2%

Respondents were asked their opinion of the most appropriate consumer target audience for Rías Baixas wines. About half felt no single group should be targeted (49%). The largest group of respondents (one-third) believe Millennials (33%) or Gen Xers (35%) are the most appropriate target, despite the fact that Baby Boomers are still the largest and highest-spending group of wine drinkers. This bias towards younger consumers is consistent with other research that shows younger consumers are more interested in imports and lesser-known varietals. Between men and women, women were thought to be the more appropriate target, however only by one in four respondents (24%). Please note that extreme caution should be taken in interpreting these results, as they represent only opinions of the trade who can be strongly biased by their personal experience and their particular customer mix. An accurate assessment of sales potential by demographic would require a survey or test of a representative sample of consumers.

Non-East Coast respondents were more apt to agree that the target audience for Rías Baixas Albariño should be mainly women (30% vs. 17%), Millennials (41% vs. 23%), and Baby Boomers (13% vs. 3%). Although a larger proportion of East Coasters think all wine consumers should be targeted, their response was not statistically significant compared to that of residents of other states (53% vs. 45%).

Most trade respondents estimated the “appropriate” retail (off-premise) price for Rías Baixas Albariño to be between $10 and $15 (71%). As respondents could place this wine in multiple price ranges, nearly half also indicated the off-premise bottle price to be between $15 and $20 (45%). Few thought it appropriate for Rías Baixas Albariño to be priced below $10 (13%), and even fewer above $20 (8%).

The “appropriate” by-the-glass price for Rías Baixas Albariño was placed between $8 and $12 by most respondents (66%). In addition, 41% thought it was appropriate for it to be priced below $8. Few thought $12 to $16 was an appropriate by-the-glass price (13%), and only 1% thought it should be priced above $16. It is important to note that these price suggestions are biased downwards by off-premise and media respondents. Among on-premise respondents, who are most familiar with restaurant pricing and sales, only 34% thought under $8 was the appropriate segment and 20% thought that Rías Baixas should be priced over $12 by-the-glass.

Overall, East Coasters seem to be more tolerant of higher prices than other respondents. More East Coasters than others thought by-the-bottle pricing of Rías Baixas Albariño in the over $20 category was appropriate (13% vs. 5%), and more of them believed a by-the-glass price of $12 to $16 was appropriate (18% vs. 8%). This could indicate a less competitive price environment, but more likely reflects a greater appreciation of high quality Albariño or demand for it.

Rías Baixas Strengths and Weaknesses

Trade survey participants were asked to name the main strengths and weaknesses of Rías Baixas wines on the U.S. market based on their experience, using an open-ended question format. A total of 184 respondents answered this question.

Food-friendliness was named most often as Rías Baixas’ strength (45 mentions). This equates to 24% of those who responded to this question, and is consistent with the one-quarter who considered it Rías Baixas Albariño’s “main attraction” earlier in the survey. Value was mentioned 42 times. Value in this sense was not portrayed as “cheap,” but value for the quality. Nearly as many (40) indicated that the wine’s style is its strength, for example describing it as light, balanced, or refreshing. Along similar lines, 36 see the flavor of Rías Baixas wines as a strength and 31 its overall quality. Also noted as a benefit was the novelty/discovery factor (18) and its broad appeal (16).

Rías Baixas Strengths

Strengths Mentions Food pairing, food-friendly, versatile 45 Value for the money 42 Style (light, balanced, refreshing, different, etc.) 40 Flavor 36 Quality 31 Novelty, discovery 18 Price (low, or low given the quality) 18 Accessible, friendly, easy to like, broad appeal 16 Acidity, zest, crisp 10 Unique, contrast with other wines 10 Refreshing, fresh 8 Competitive vs. other wines 6 Consistent quality or style 6

Strengths (continued) Mentions Balance 5 Trendy, catching on 5 Spain, Spanish wine trends 4 Good as Aperitif, by itself 3 Lighter style 3 Alternative to Sauvignon Blanc or Pinot Grigio 5 Plentiful supply or distribution 3 Unoaked 3 Alternative to Chardonnay 2 Good story, history 2 Aromatic, complex, diverse, dry, fruit, low alcohol, terroir 1

Overwhelmingly, lack of awareness, primarily among consumers, is perceived as Rías Baixas’ greatest barrier (82 mentions). This was mentioned in conjunction with both the Rías Baixas region and the Albariño variety. Also of concern is Rías Baixas’ difficult pronunciation (29). In this case, consumers may feel uncomfortable asking for it and the trade may avoid promoting or discussing it. Price as a weakness was mentioned 22 times compared to 18 times as a strength. In this context, price was mentioned as too high in comparison to the competition and for an unknown wine. The lack of distribution, promotion, marketing, and education is considered a significant barrier when these related categories are combined (28).

Rías Baixas Weaknesses

Weaknesses Mentions Lack of awareness of name, region or variety 82 Name is hard to pronounce 29 Price: too high vs. competition, for unknown 22 wine, or rising too fast Variety not familiar or unknown 14 Region not familiar or unknown 11 Lack of distribution, shelf presence 10 Weak promotion, advertising, marketing 10

Weaknesses (continued) Mentions Education needed for trade or consumer 8 Lack of trade support, push, selling 8 Style is not popular or unfamiliar 7 Inconsistent quality or style 5 Limited number of brands, SKUs 5 Competition from Chardonnay, Sauvignon 4 Blanc, Pinot Grigio Spanish wines not familiar 3 Style is unfamiliar or not popular 3 Priced higher than other Spanish whites 2 Quality insufficient 2 Weak on-premise presence, distribution 2 Bottle shape inconsistent, limited food pairing, poor label design, warm weather 1 wine only, and more

Promotions Exposure

Trade respondents were asked about their exposure to promotions over the past two years for Rías Baixas and a series of countries and wine regions – Bordeaux, Chile, Rioja, Sonoma Country, Portugal, Beaujolais, New Zealand, and Spain. Overall experience with promotions was strongest for both Spain and Rioja.

Spain and Bordeaux led in tasting attendance with over half attending tastings of these regions’ wines (57% and 53%). About four in ten respondents attended tastings of wines from Chile (40%), Rioja (44%), and Sonoma (46%), and approximately one-third from Portugal (35%), Beaujolais (31%), and New Zealand (34%). Fewest respondents had attended a Rías Baixas wine tasting (24%).

Rioja (44%) and Spain (43%) led in email reach, while about one-third received information by email about the wines of Bordeaux (35%), Chile (31%), and Sonoma (33%), and one-quarter about the wines of Portugal (28%), Beaujolais (23%) and New Zealand (25%). Again, Rías Baixas lagged the other countries and regions in this area (18%).

As with email reach, Spain (33%) and Rioja (32%) had a slight edge in Internet ad exposure, in this case, along with Sonoma (31%). Internet ad reach for the other regions clustered between 20% for New Zealand and 28% for Bordeaux. Internet ad exposure for Rías Baixas was at 15%.

In terms of website visitation the regions formed three tiers, with Spain (31%), Rioja (31%), Chile (29%) at the top; Bordeaux (27%), Sonoma (25%), and New Zealand (22%) in the middle; and Beaujolais (18%), Portugal (17%), and Rías Baixas (16%) forming a third tier.

The rate of Twitter/Facebook followers was low overall, ranging from 4% who follow Portugal and Beaujolais to 12% who follow Sonoma. Rías Baixas is followed by 6% of respondents.

Off-premise trade respondents were much less likely than members of other trade tiers to have received Rías Baixas information via email (9% vs. 22% of media/others, 21% of importers/wholesalers, and 15% of on-premise respondents). On-premise trade respondents were less likely to have visited the Rías Baixas website (6% vs. 15% of importer/wholesalers and off-premise and 25% of media/other). Otherwise, experience with Rías Baixas promotions was evenly distributed across tiers of the trade.

There were only slight differences in Rías Baixas promotion experiences between East Coasters and other respondents, none of them statistically significant. The largest gaps were for seeing print ads (29% of East Coasters vs. 24% of others) and ads on the Internet (17% vs. 13%) in favor of East Coasters, and the receipt of information via email in favor of respondents from other states (15% of East Coasters vs. 20% of all others).

Respondents were specifically asked to share their opinions of the overall effectiveness of any promotions undertaken on behalf of Rías Baixas Albariño wines they had participated in or had any contact with in the past three years. A total of 34 survey participants responded to this question. Positive comments expressed that the Rías Baixas events and tastings were good and that the wines sell through. Mixed reviews mentioned the tastings were good, but attendance or sales were mixed and that the wines need more promotion. Negative comments revolved around hearing nothing about promotions, or in a few cases, promotions being ineffective. Below are some representative verbatim comments about Rías Baixas promotions:

“I feel that they have been helpful in spreading the message and introducing the wines to a new audience.”

“Yes I have, and all have been excellently devised and executed.”

“Several importers of Spanish wines have presented Rías Baixas wines to my company for consideration. We now carry several in inventory.”

“Tastings were fun but need more, and Jersey could do with an Albariño fest.”

“This past summer, major media push for all Spanish wines, especially Rías Baixas, Rioja & Ribera del Duero. Large tasting event at Metropolitan Pavilion in Manhattan in October.”

“The overall awareness is reaching the general public. Not sure if it has taken a foothold in the market.”

“We did a feature tasting during May of last year on wines of the Rías Baixas and had a turnout of 20 people. Many bought bottles to take home, few knew where it was except it was from northern Spain.”

“Went to a tasting of just Rías Baixas Albariño producers last summer (2010) in NYC. It was very well done with about 20 producers. I tasted the wines then stayed and chatted with some people.”

“I enjoyed the wine tasting but believe the industry should focus on educating consumers as well.”

Conclusions

Rías Baixas is a quality leader among competing white wines in the under $20 category, its closest competitor being New Zealand Sauvignon Blanc. Among tiers of the trade, retailers (off-premise) are most enthusiastic about the quality of Rías Baixas wines.

Rías Baixas Albariño’s greatest barrier is lack of consumer awareness, and difficulty with pronunciation of “Rías Baixas.”

In terms of value, Rías Baixas is a second-tier player behind Chilean Sauvignon Blanc and Torrontes from Argentina. Pricewise, most trade respondents believe $10 to $15 is the appropriate retail price category for Rías Baixas Albariño, as is $8 to $12 by the glass. Mid-level value ratings, appropriate price estimations, and the fact that “value” is considered one of its top strengths while a significant number mentioned increasing or competitive pricing as a weakness, all suggest that major price increases would be very risky for Rías Baixas Albariño at this time.

Albariño from Rías Baixas is in the forefront of a wave of enthusiasm for Spanish wines generally. Among Spanish regions tested, sales of Rías Baixas wines showed more “significant” growth than other competing regions. This growth was higher on the East Coast than in other parts of the U.S.

Among competing white wines from inside and outside Spain, Rías Baixas Albariño is clearly outsold by Sauvignon Blanc, Riesling, Italian Pinot Grigio, and edged out by Austrian Gruner Veltliner. Rías Baixas Albariño sales are greater than Rioja whites and on par with Rueda whites. Albariño per se is not a varietal category yet, more of a niche or discovery, comparable to Gruner Veltliner. However, nearly half the trade respondents see Rías Baixas Albariño as a strong substitute for Sauvignon Blanc.

A significant minority agreed that screw cap closures would increase sales.

Versatility and food-friendliness are Rías Baixas Albariño’s top strengths, thought to be best paired with seafood and poultry. It is not associated specifically with Spanish cuisine.

Rías Baixas Albariño is best known for its acidity and citrus-related flavor components. Its light, balanced, and refreshing style is considered one of its strengths.

The prevailing view among trade respondents is that all wine consumers are the appropriate targets for Rías Baixas Albariño, although significant minorities believe that Millennial, Gen X, and female wine drinkers are more appropriate targets than their respective counterparts. Previous research has shown that younger wine drinkers are more open to both imports and new varieties.

The few respondents who had experienced Rías Baixas promotions were split evenly between those who thought the events/tastings they attended were good and the wines sell through, those who gave mixed reviews, and those who believe more promotion is needed. The combination of high marks for food- friendliness but lower exposure to promotion on-premise indicates there may be good opportunities to expand in the restaurant channel.

Rías Baixas Trade Questionnaire

1. What is your age?

Under 21 21 - 34 35 - 46 47 - 65 66 and over

2. What is your gender?

Male Female

3. In what state do you work? (Drop-down menu)

4. Which of the categories below best describes where you work? Please answer based on your company’s field and not your job description within the company.

Grape grower, vineyard management or related field (Disqualifies) Wine producer (or working directly for a wine producer) (Disqualifies) Wine trade or regional association (Disqualifies) Wine importer (or working directly for a wine importer) Distributor, wholesaler, broker or related field Restaurant, hotel, or hospitality industry Wine retailer, retail sales, administration or related field Wine media, educator, academic, or related field Other wine industry field (please enter) (Open-ended text box)

5. Please indicate your awareness and visitation of the following websites or blogs. Please choose the ONE answer for each site or blog that best describes your awareness and/or usage.

I’m aware of this Have visited once I’m not aware of Visit frequently Visit occasionally site/blog but have or twice this site/blog not visited

Nat Decants Wine Enthusiast online Wine Spectator online Vinography Terroirist WSJ Online Wine Blog Dr. Vino Wine Review Online Jancis Robinson’s blog Eric Asimov’s blog (in New York Times Diner’s Journal) eRobertParker 1WineDude Bigger Than Your Head Jon Bonne’s blog (in San Francisco Chronicle online) (Sites rotate randomly)

6. How often do you use the following types of social media to post, discuss or get information about wines?

Don’t use this Several times a Several times a Daily Weekly Less often venue or don’t day week use it for wine

Facebook LinkedIn Twitter Google+ YouTube

7. In the past year or two, in which (if any) of the following activities related to the wine regions listed below have you participated or experienced? Please check any/all that apply.

Received Follow them on Attended a Have seen Have seen ads Have visited information by Twitter or tasting print ads on Internet their website email Facebook

Bordeaux Chile Rioja Sonoma County Rías Baixas Portugal Beaujolais New Zealand Spain

8. Please indicate your opinion of the typical quality and value of the following white wines selling for under $20 (750ml bottle at retail). (Drop down menus with the choices “Excellent,” “Good,” “Fair,” “Poor,” “No opinion/don’t know”)

Quality Value

Sauvignon Blanc from New Zealand Gruner Veltliner from Austria Sauvignon Blanc from Chile Albariño from Rías Baixas Sauvignon Blanc from California Albariño from California Torrontes from Argentina Pinot Grigio from Italy Riesling from Washington State

9. Please indicate how you would describe your (or your company’s) past year sales of wines from the following regions of Spain. If you (or your company) do not sell or represent a wine from one or more of these regions, please check “don’t sell” for that region.

Sales increased Sales are up a No change in sales Sales have Don’t sell wine significantly little at all declined from this region

Rioja Rueda Jerez Ribera del Duero Rías Baixas Navarra Castilla la Mancha

10. Thinking of your (or your company’s) sales of Rías Baixas Albariño wines in the past year, please compare them to sales (in cases) of the following wines. If you or your company do not sell Rías Baixas Albariño wines, please just skip this question.

Rías Baixas Sales for this Rías Baixas Rías Baixas Rías Baixas Don’t sell sales are region are sales are much sales are sales are wines from this somewhat about the greater somewhat less much less region greater same

White wine from Rioja White wine from Rueda Sauvignon Blanc from any country or region Gruner Veltliner from Austria Pinot Grigio from Italy Riesling from any country or region

11. Please indicate the price segment (or segments) that you think most appropriate for Rías Baixas Albariño wines sold as 750ml bottles at retail. You may select more than one segment, if you believe it to be appropriate for some of these wines.

Under $10 $10 to $15 $15 to $20 Over $20

12. When offered by the glass in a restaurant, please indicate the price segment that you think most appropriate for Rías Baixas Albariño wines. You may select more than one segment, if you believe it to be appropriate for some of these wines.

Under $8 $8 to $12 $12 to $16 $16 to $20 Over $20

13. Please check any of the following statements with which you are in agreement, concerning your sales of Rías Baixas Albariño wines. If you disagree or have no opinion, please just skip that statement. If you or your company do not sell Rías Baixas Albariño wines, please check only the statement, “Don’t sell Rías Baixas wines.”

Don’t sell Rías Baixas wines. Most of my customers are well aware that Rías Baixas is a region in Spain. People are mainly attracted to Albariño wines from Rías Baixas because they are so food- friendly. Rías Baixas Albariño wines are considered mainly a summer seasonal enjoyment. If most Rías Baixas wines were sealed with a screw cap, sales would be just as good or better. Rías Baixas Albariño wines are a great alternative for people who like Sauvignon Blanc. There is a fairly consistent style across most Rías Baixas Albariño brands. The fact that most Rías Baixas winemakers are females could be a positive aspect for marketing the wines.

14. In the comment box below, please describe the typical flavor profile of Albariño wines from Rías Baixas. (Open-ended comment box)

15. What would you say are the best food pairings for Albariño wines from Rías Baixas? (Open-ended comment box)

16. Which of the following are the most appropriate consumer target audiences for Rías Baixas wines? Please check any of the groups listed below that you think should be targeted by a Rías Baixas wine promotion. If you don’t think any single group or number of groups should be targeted, please select “All wine consumers.”

Mainly females Mainly males Millennial generation (ages 21 – 34) Generation X (ages 35 – 46) Baby Boomers (ages 47 – 65) All wine consumers

17. Thinking of your experience, what are the main strengths or weaknesses of Rías Baixas wines on the US market? (Two open-ended comment boxes – one for “Strengths,” the other for “Weaknesses”)

18. If you have participated in or had any contact with promotions undertaken on behalf of Rías Baixas Albariño wines in the past three years, please share your opinion of the overall effectiveness of these efforts. If you have not had any contact with promotions for Rías Baixas wines in the past three years please just skip this question. (Open-ended comment box)

19. If you would like to be eligible for the drawing for cash awards of $500, $300, and $200 for those completing this survey, and receive survey offers in the future, please enter your email address in the text box below. (Open-ended text box)

20. If you would like to participate in an online discussion group concerning Rías Baixas wines to be held December 13 - 15 please enter your email address in the text box. Those selected for participation will receive checks for $200 each. There will also be a drawing for a $200 award held for anyone not selected. (Open-ended text box)