2020 Canada Province-Level Wine Landscapes

WINE INTELLIGENCE CANADA PROVINCE-LEVEL WINE LANDSCAPES 2020 FEBRUARY 2020

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2 CONTENTS

▪ How to read this report p. 5 ▪ Management summary p. 7 ▪ Wine market provinces: key differences p. 21 ▪ Ontario p. 32 ▪ Alberta p. 42 ▪ British Colombia p. 52 ▪ Québec p. 62 ▪ Manitoba p. 72 ▪ Nova Scotia p. 82 ▪ Appendix p. 92 ▪ Methodology p. 100

3 CONTENTS

4 HOW TO READ THIS REPORT

Individual wine ▪ This 102-page report covers a wide variety of topics regarding the markets in the Canadian wine market. Drawing on previous and new consumer following data, the report provides a detailed analysis of how the wine Canadian markets in six Canadian provinces are performing. provinces were analyzed: ▪ The report begins with key differences between the six analyzed provinces, followed by a detailed analysis of consumer wine drinking habits, consumption and retail trends within each province. ▪ The six provinces were selected because the number of interviews collected using Wine Intelligence’s Vinitrac online consumer survey was sufficient to be able to conduct a statistically valid analysis by individual provinces. ▪ Canada Province-level Landscapes 2019 also includes tracking against 2015 and 2017 to better understand how Canadian regular wine drinkers have, or have not, changed over the years. Tracking differences are coded as follows:

 : statistically significantly higher than previous wave(s) at a 95% confidence level  : statistically significantly lower than previous wave(s) at a 95% confidence level British Columbia Manitoba Alberta ▪ Québec Unless otherwise stated, all tracking arrows included in this Ontario report refer to data collected in 2015. Due to methodology changes, tracking data about the Canada Portraits segmentation, knowledge and confidence indexes, and off- / on-premise frequency and spend are all tracked against 2017 Nova Scotia 5 CONTENTS

6 WINE MARKET OVERVIEW: ONTARIO

The proportion of monthly wine drinkers in Ontario is slightly lower than the entire Canadian population, though the proportion of adults in Ontario who drink wine weekly is similar to the total Canadian population

Adult population 29.4 million 1 11.2 million 1

57% 40% 57% 42%

Regular (i.e. at least once per 16.8 million 2 38% 6.4 million 2 month) wine drinkers 71% 73%

Weekly wine 3 3 11.9 million 39% 4.7 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 7 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET OVERVIEW: ALBERTA

A lower proportion of adults in Alberta drink wine on a weekly basis compared to the total Canadian adult population

Adult population 29.4 million 1 3.2 million 1

57% 40% 69% 47%

Regular (i.e. at least once per 16.8 million 2 13% 2.2 million 2 month) wine drinkers 71% 67%

Weekly wine 3 3 11.9 million 13% 1.5 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 8 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET OVERVIEW: BRITISH COLUMBIA

The proportion of weekly wine drinkers in British Columbia is relatively similar to the total Canadian population

Adult population 29.4 million 1 4 million 1

57% 40% 45% 33%

Regular (i.e. at least once per 16.8 million 2 11% 1.8 million 2 month) wine drinkers 71% 70%

Weekly wine 3 3 11.9 million 11% 1.3 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 9 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET OVERVIEW: QUÉBEC

The proportion of monthly and weekly wine drinkers in Québec is relatively similar, with a slightly lower proportion of monthly wine drinkers compared with the entire Canadian population

Adult population 29.4 million 1 6.6 million 1

57% 40% 67% 49%

Regular (i.e. at least once per 16.8 million 2 26% 4.4 million 2 month) wine drinkers 71% 72%

Weekly wine 3 3 11.9 million 27% 3.2 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 10 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET OVERVIEW: MANITOBA

The proportion of weekly wine drinkers in Manitoba is slightly lower than the entire Canadian population

Adult population 29.4 million 1 1 million 1

57% 40% 70% 40%

Regular (i.e. at least once per 16.8 million 2 4% 0.7 million 2 month) wine drinkers 71% 63%

Weekly wine 3 3 11.9 million 3% 0.4 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 11 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET OVERVIEW: NOVA SCOTIA

A similar proportion of adults in Nova Scotia drink wine on a weekly basis compared with the total Canadian population

Adult population 29.4 million 1 0.8 million 1

57% 40% 38% 25%

Regular (i.e. at least once per 16.8 million 2 2% 0.3 million 2 month) wine drinkers 71% 71%

Weekly wine 3 3 11.9 million 2% 0.2 million drinkers

Sources: 1 Statistics Canada 2018 estimates 2 Wine Intelligence online calibration study, September 2019, n=1,000 Canadian adults 19+ years. Wine=still light wine (red, white, rosé) 12 3 Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers SUMMARY: PROVINCE WINE MARKET SIZE

Regular wine drinkers residing in Ontario account for the largest share of population, total spend and volumes consumed in Canada, followed by consumers living in Québec

Relative importance of provinces Share of population, total market volume and total market value Base = All Canadian regular wine drinkers (n=7,482)

Ontario

38% 41% 39% Québec

Alberta

26% 27% 26% British Columbia

Manitoba 13% 13% 14%

11% 11% 12% Nova Scotia 4% 3% 4% 2% 2% 2% Share of total Canadian Share of total volume of Share of total spend on wine drinkers wine in Canada wine in Canada 13 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: ONTARIO Ontario wine drinkers are characterized as middle-aged professionals with the highest annual household income in Canada, drinking wine quite frequently, and having the most knowledge and confidence about wine out of all provinces

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $13 - $18.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $19 - $24.99 in

the on-premise Wine Knowledge Index

H G I H H G I H

KNOWLEDGE

LOW LOW

(QC) (MB) (AB) (NS) (BC) (ON) Eager to try new With half of the wine styles; they population aged are primarily driven Wine Confidence Index

under 45, Ontario by grape variety and H G I H regular wine brand awareness when purchasing CONFIDENCE drinkers are the LOW highest earners wine

(MB) (QC) (AB) (NS) (BC) (ON) 14 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: ALBERTA Alberta regular wine drinkers are the youngest out of all the provinces and have lower consumption frequency; they have slightly below national average confidence and knowledge indexes and tend to spend slightly more in on-premise

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $13 - $18.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $20 - $25.99 in

the on-premise Wine Knowledge Index H G I H

KNOWLEDGE LOW

Prefer to (QC) (MB) (AB) (NS) (BC) (ON) consume wines from Okanagan Youngest regular wine Valley Wine Confidence Index

drinking population, H G I H yet earning high CONFIDENCE

incomes, with the LOW highest proportion having a $120,000+ annual household income (MB) (QC) (AB) (NS) (BC) (ON) 15 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: BRITISH COLUMBIA Mid-aged, highly involved wine drinkers who are willing to spend a bit more in the off-premise compared with other provinces; strongly connected with local wines from the Okanagan Valley

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $18.99 retail and $20 - $24.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

Wine drinkers who feel competent about their (QC) (MB) (AB) (NS) (BC) (ON) knowledge of wine, With more than half showing loyalty to

locally-produced Wine Confidence Index H G I H of the population H G I H aged under 45, British wines from

Columbia regular Okanagan Valley CONFIDENCE LOW wine drinkers’ annual household income is slightly above average (MB) (QC) (AB) (NS) (BC) (ON) 16 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: QUÉBEC Mid-aged wine drinkers who have the highest involvement in wine but the lowest wine knowledge index, as well as a low wine confidence index

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $18.99 retail and $20 - $24.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

French and Italian wine drinkers, with the highest proportion (QC) (MB) (AB) (NS) (BC) (ON) drinking wine from Bordeaux and Chianti, With half of the who are the most population aged Wine Confidence Index eager to try new styles H G I H under 45, Québec of wine regularly regular wine CONFIDENCE drinkers’ average LOW annual household income is below average

(MB) (QC) (AB) (NS) (BC) (ON) 17 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: MANITOBA With the lowest wine confidence index, average spend and frequency of wine consumption, Manitoba regular wine drinkers are the least involved in the wine category compared with other provinces

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $17.99 retail and $19 - $22.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

Most likely to consume wine (QC) (MB) (AB) (NS) (BC) (ON) from Napa Manitoba regular Valley, followed Wine Confidence Index

wine drinkers are closely by H G I H the second Okanagan Valley youngest out of the CONFIDENCE analyzed provinces; LOW annual household income on the national average

(MB) (QC) (AB) (NS) (BC) (ON) 18 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE MARKET SUMMARY: NOVA SCOTIA Nova Scotia regular wine drinkers are the oldest out of all the analyzed provinces and are more likely to be female; with the highest consumption frequency and average spend on wine, their confidence and knowledge indexes are above national average

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $14 - $19.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $21 - $23.99 in the on-premise

Wine Knowledge Index H G I H

KNOWLEDGE LOW

Most likely to (QC) (MB) (AB) (NS) (BC) (ON) consume wine from Napa Valley, Nova Scotia regular followed by Niagara wine drinkers have Wine Confidence Index Peninsula; less likely H G I H the highest average to branch out to try age and the lowest CONFIDENCE

new styles of wine LOW annual household income when compared with the other analyzed provinces (MB) (QC) (AB) (NS) (BC) (ON) 19 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers CONTENTS

20 WHO ARE CANADIAN REGULAR WINE DRINKERS?

Consumers in Québec and Ontario are mid-aged wine drinkers who have the highest involvement with wine. Regular wine drinkers in Nova Scotia are the oldest consumers with the highest average off-premise spend and wine consumption frequency

Québec Nova Scotia Ontario Alberta British Columbia Manitoba Canada (QC) (NS) (ON) (AB) (BC) (MB) (CAN)

(AB) (QC)(CAN)(BC)(ON) (MB) (NS)

Average age Low High

(NS) (QC) (MB) (BC)(CAN) (AB)(ON)

Average income Low High

(MB) (ON) (QC)(CAN) (BC) (AB) (NS) Average spend on Low High wine (off-premise)

(MB) (NS) (AB) (BC) (CAN)(ON) (QC)

Involvement with Low High wine

21 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers CONFIDENCE AND KNOWLEDGE INDEX

Among the provinces, consumers in Ontario are the most confident and knowledgeable about wine, closely followed by British Columbia

Wine knowledge index: Within each province 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=7,482)

(QC) (MB) (AB) (CAN) (NS) (BC) (ON)

29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38.5

Wine confidence index: Within each province 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=7,482)

(MB) (QC) (AB) (CAN) (NS) (BC) (ON)

48.0 48.5 49.0 49.5 50.0 50.5 51.0 51.5 52.0 52.5 53.0 53.5 54.0

22 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers CONFIDENCE AND KNOWLEDGE INDEX

Regular wine drinkers in Ontario and Nova Scotia drink wine the most frequently, while those in Manitoba have the lowest wine consumption frequency among the analyzed provinces

Wine consumption frequency average Base = All Canadian regular wine drinkers (n=7,482)

Wine knowledge index(MB) (0-100) is calculated based on(AB) consumer-reported awareness(QC) (CAN) of wine(BC)-producing countries,(ON) wine(NS)-growing regions and wine brands Base = All Canadian regular wine drinkers (n=7,482)

7.0 7.5 8.0 8.5 9.0 9.5 10.0

23 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE CONSUMPTION FREQUENCY

Compared with all Canadian regular wine drinkers, consumers in Ontario are more likely to drink wine on a daily basis, while those in British Columbia and Manitoba are more likely to drink wine on a monthly basis

Wine consumption frequency % who usually drink wine at the following frequency Base = All Canadian regular wine drinkers (n=7,482) Provinces All Canadian regular wine British Ontario Québec Alberta Manitoba Nova Scotia drinkers Columbia n= 7,482 2,860 1,970 963 819 302 155 Most days / every day 10% 11% 10% 8% 9% 8% 10% 2-5 times a week 32% 33% 33% 30% 32% 25% 37% About once a week 29% 28% 27% 29% 31% 30% 25% 1-3 times a month 29% 27% 30% 33% 28% 37% 29%

Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 24 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers ALCOHOLIC BEVERAGE CONSUMPTION

Larger provinces drink from a broad range of alcoholic beverages, while smaller provinces such as Alberta have a higher proportion of consumers drinking wine rather than other alcoholic beverages

Alcoholic beverage consumption % who have drunk the following beverages in the past 12 months Base = All Canadian regular wine drinkers (n=7,482)

Provinces All Canadian regular wine British Rank Ontario Québec Alberta Manitoba Nova Scotia drinkers Columbia 2019 n= 7,482 2,860 1,970 963 819 302 155 1 Red wine 85% 83% 85% 84% 88% 81% 79% 2 White wine 80% 81% 82% 75% 80% 78% 83% 3 Beer 74% 74% 74% 72% 75% 75% 70% 4 Vodka 50% 51% 54% 57% 41% 58% 47% 5 Rum 43% 42% 41% 48% 43% 46% 49% 6 Whisky / Whiskey 40% 45% 43% 43% 30% 44% 43% 7 Craft beer 40% 41% 45% 45% 36% 32% 38% 8 Rosé wine 38% 34% 38% 40% 47% 32% 28% 9 Cocktails 30% 30% 35% 34% 27% 31% 26% 10 Liqueurs 30% 32% 29% 32% 28% 32% 33% 11 Pre-mixed / ready to drink alcoholic beverages 26% 29% 27% 28% 21% 27% 34% 12 Cider 26% 29% 35% 23% 18% 17% 29% 13 Champagne (French Champagne) 25% 27% 27% 24% 23% 16% 22% 14 Gin 25% 24% 30% 24% 23% 28% 23% 15 Other sparkling wine 20% 18% 19% 16% 26% 17% 14% 16 Prosecco 19% 20% 26% 25% 14% 14% 16% 17 Brandy / Cognac 15% 16% 13% 13% 17% 14% 12% 18 Sweet / dessert wine 13% 14% 14% 12% 11% 10% 8% 19 Port 11% 9% 10% 10% 17% 6% 8% 20 Sherry 6% 7% 7% 5% 3% 5% 8% 21 Cava 5% 5% 5% 5% 4% 3% 5%

Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 25 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers WINE INVOLVEMENT AND ATTITUDES

Consumers in Alberta tend to be slightly more adventurous in their wine choices, while those in Nova Scotia and Manitoba are slightly more likely to stick with current repertoires

Wine involvement Base = All Canadian regular wine drinkers (n=7,482)

Provinces All Canadian regular wine British Ontario Québec Alberta Manitoba Nova Scotia drinkers Columbia n= 7,482 2,860 1,970 963 819 302 155 Low involvement 24% 24% 22% 27% 23% 31% 32% Medium involvement 41% 40% 44% 41% 40% 42% 36% High involvement 35% 36% 34% 32% 37% 27% 32%

Wine attitudes Base = All Canadian regular wine drinkers (n=7,482)

Provinces All Canadian regular wine British Ontario Québec Alberta Manitoba Nova Scotia drinkers Columbia n= 7,482 2,860 1,970 963 819 302 155 I enjoy trying new and different styles of wine on a regular basis 49% 48% 47% 45% 58% 37% 50% I don't mind what I buy so long as the price is right 24% 25% 27% 29% 19% 30% 12% I know what I like and I tend to stick to what I know 27% 28% 26% 26% 24% 33% 38%

Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 26 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers INVOLVEMENT AND PERCEIVED EXPERTISE IN WINE

Consumers from Ontario, Manitoba and Nova Scotia are more likely to believe that wine is reasonably priced; consumers from Ontario are most likely to feel that wine is an important purchase decision and feel happy with their wine knowledge levels

Involvement and perceived expertise in wine % who 'agree' or 'strongly agree' with the following statements Base = All Canadian regular wine drinkers (n=7,482) Provinces All Canadian regular wine British Rank Ontario Québec Alberta Manitoba Nova Scotia drinkers Columbia 2019 n= 7,482 2,860 1,970 963 819 302 155 1 Drinking wine gives me pleasure 81% 80% 81% 79% 84% 78% 77% 2 I always look for the best quality wines I can get for my budget 73% 74% 72% 75% 73% 69% 76% 3 Deciding which wine to buy is an important decision 62% 65% 63% 61% 58% 59% 66% 4 I like to take my time when I purchase a bottle of wine 61% 61% 61% 57% 62% 56% 53% 5 Generally speaking, wine is reasonably priced 52% 60% 52% 55% 36% 62% 60% 6 I have a strong interest in wine 49% 50% 49% 51% 49% 43% 49% 7 Wine is important to me in my lifestyle 45% 47% 46% 44% 45% 37% 40% 8 Compared to others, I know less about the subject of wine 38% 38% 34% 40% 39% 41% 38% 9 I feel competent about my knowledge of wine 37% 41% 38% 39% 29% 32% 39% 10 Generally speaking, wine is an expensive drink 34% 33% 34% 36% 36% 35% 33% 11 I don’t understand much about wine 26% 25% 26% 28% 24% 31% 30%

Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 27 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers COUNTRY AWARENESS AND RESPECTIVE CONSUMPTION LEVEL

Significantly higher proportions of consumers in British Colombia and Ontario are aware of all top wine-producing countries compared with all Canadian wine drinkers; those from Québec have smaller country repertoires, and focus more on Old World countries

Canada 76%88% Canada 63% 79% France 55% 72% France 35% 85% France 28% 79% Italy 49% 65% Italy 33% 82% Italy 27% 77% California – USA 32% 57% % who know the following places California – USA 38% 81% California – USA 47% 74% Spain 32% 56% produce wine Australia 38% 80% Australia 31% 65% Australia 30% 54% Spain 15% 71% Spain 15% 63% Canada 30% 53% % who have drunk wine from the New Zealand 14% 64% Chile 23% 62% Chile 22% 48% following places in Chile 17% 64% Argentina 15% 59% Portugal 22% 45% past 6 months Germany 16% 64% Germany 14% 57% Argentina 15% 40% Argentina 15% 62% Portugal 10% 57% South Africa 13% 33% Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 28 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers REGION AWARENESS AND RESPECTIVE CONSUMPTION LEVEL

Similarly to country of origin awareness, consumers in British Colombia and Ontario are more likely to be aware of a wide range of wine-growing regions compared with all regular wine drinkers

British Columbia Alberta Ontario Canadian, Base = All regular wine drinkers in Base = All regular wine drinkers in Base = All regular wine drinkers in American, French British Columbia (n=963) Alberta (n=819) Ontario (n=2,860) and Italian wine- producing origins Okanagan 61% 81% Napa Valley 28% 74% Napa Valley 26% 77% have the highest Niagara Peninsula 44% 71% Napa Valley 30% 78% Okanagan 44% 73% awareness and Bordeaux 14% 69% Tuscany 15% 68% Tuscany 15% 70% purchase incidence Tuscany 12% 69% Bordeaux 11% 59% Bordeaux 17% 68% across all six Champagne 10% 67% Champagne 11% 59% Champagne 10% 63% provinces Burgundy 8% 62% Burgundy 7% 48% Prince Edward County 18% 59% Provence 5% 50% Chianti 10% 48% Burgundy 9% 57% Sicily 6% 50% Sicily 7% 47% Okanagan 10% 56% Sonoma 9% 49% Provence 4% 42% Sicily 7% 48% Chianti 7% 47% Sonoma 8% 40% Chianti 11% 47% Nova Scotia Manitoba Québec Base = All regular wine drinkers in Nova Base = All regular wine drinkers in Base = All regular wine drinkers in Scotia (n=155) Manitoba (n=302) Québec (n=1970) Napa Valley 20% 79% Napa Valley 28% 72% Bordeaux 33% 71% Tuscany 13% 71% Okanagan 27% 63% Beaujolais 17% 56% Bordeaux 14% 67% Tuscany 10% 63% Côtes du Rhône 21% 55% % who know the Champagne 13% 66% Champagne 9% 61% Champagne 9% 55% following places produce wine Okanagan 9% 56% Bordeaux 9% 60% Bourgogne 15% 54% Niagara Peninsula 17% 56% Burgundy 6% 53% Tuscany 14% 51% % who have drunk Burgundy 12% 55% Niagara Peninsula 16% 47% Chianti 21% 50% wine from the following places in Sicily 8% 51% Sicily 4% 45% Châteauneuf du Pape 7% 48% past 6 months Chianti 7% 49% Provence 3% 42% Napa Valley 12% 43% Chablis 5% 49% Beaujolais 5% 37% Chablis 10% 41%

Red / Blue: statistically significantly higher / lower than all Canadian regular wine drinkers at a 95% confidence level 29 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers TRADE AGREEMENTS BETWEEN CANADA AND THE UNITED STATES

The United States-Mexico-Canada Agreement will increase trade to Canada, but may have potential repercussions for provincial governments and Canadian wine producers

The current situation: Possible impacts of USMCA ▪ Canada is the largest single export market for wine ▪ When the trade agreement is ratified from the United States, with retail sales of and implemented, its stated aim is to approximately $1.1 billion in 2017 create more balanced and reciprocal trade across North America ▪ 90% of wine from the United States that is exported to Canada originates from Californian vineyards ▪ The trade agreement will secure greater market access for Californian ▪ In 2015, the liquor authority is British Columbia wine producers as they can expand amended the historically strict rules to allow regular access for wine exports grocery stores to start selling wine and liquor. However, the amendments required imported wine to ▪ It is possible that Canadian wine be placed in a separate part of grocery stores from producers may experience decreasing wines made within the province sales as consumers start to engage more with and purchase imported ▪ The Trump administration requested help from the wines. Licences to sell 100% British World Trade Organization to resolve the wine dispute Columbian wine in grocery stores with Canada over grocery-store shelf access helped small winemakers get shelf ▪ According to President Trump, the North American Free space and recognition which they Trade Agreement (NAFTA) was a disaster and as a might not otherwise be able to access result, a new trade deal was implemented to replace it ▪ However, the effect of increased ▪ The new United States-Mexico-Canada Agreement access may not be as strong as some (USMCA) was created to establish free trade between may fear, as local wine producers in Canada, Mexico and the United States and to break Niagara (ON) in the East and down the barrier between imported wines and Okanagan (BC) in the West have now provincial wines in Canada as a subclause established strong market positions in their respective provinces ▪ The trade agreement has been signed by all three countries, but has not yet been ratified

30 Sources: The Office of the United States Trade Representative and CNBC CONTENTS

31 WINE MARKET SUMMARY: ONTARIO Ontario wine drinkers are characterized as middle-aged professionals with the highest annual household income in Canada, drinking wine quite frequently, and having the most knowledge and confidence about wine out of all provinces

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $13 - $18.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $19 - $24.99 in

the on-premise Wine Knowledge Index

H G I H H G I H

KNOWLEDGE

LOW LOW

(QC) (MB) (AB) (NS) (BC) (ON) Eager to try new With half of the wine styles; they population aged are primarily driven Wine Confidence Index

under 45, Ontario by grape variety and H G I H regular wine brand awareness when purchasing CONFIDENCE drinkers are the LOW highest earners wine

(MB) (QC) (AB) (NS) (BC) (ON) 32 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

Since 2015, there has been a significant increase in the proportion of consumers in higher income groups. Just under a quarter of consumers are Social Newbies, in line with the growing proportion of younger consumers participating in the wine market

Age Gender 20% 19% 65 and over 18% 18% 55-64 14%  21% 45-54 24%  17% 35-44 49% 51% 25-34 (51%) (49%) 16% 19%  19-24 Legal 9% 7%  Drinking 2015 2019 Age: 19 Total household income (before tax) Portraits 2015 2019 Under $20,000 6% 5% 2017 2019 $20,000 - $29,999 7% 6% Engaged Explorers 10% 12% $30,000 - $39,999 10% 7%  Enthusiastic Treaters 9% 8% $40,000 - $49,999 9% 7% Mainstream Matures 19% 21% $50,000 - $59,999 9% 9% Social Newbies 22% 21% $60,000 - $69,999 8% 8% Contented Occasionals 16% 16% $70,000 - $79,999 9% 9% Kitchen Casuals 24% 22% $80,000 - $99,999 13% 14% $100,000 - $119,999 8% 10% For more information on Portraits $120,000+ 12% 19%  groups, please refer to page 96 Prefer not to answer 9% 7%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 33 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

An increasing proportion of wine consumers in Ontario are drinking craft beer; consumption of Malbec has seen steady year on year increases

Alcoholic beverage repertoire Wine consumption frequency % of regular wine drinkers in Ontario who have drunk the following % of regular wine drinkers in Ontario who usually drink wine at the following frequency beverages in the past 12 months Base = All regular wine drinkers in Ontario (n>=805) Base = All regular wine drinkers in Ontario (n>=805) 2015 2019 Most days / every day 12% 11% 2-5 times a week 35% 33% Red wine White wine About once a week 29% 28% Beer 1-3 times a month 24% 27% Vodka Rum Red and white varietal consumption Whisky / Whiskey % of regular wine drinkers in Ontario who have drunk the 83% Craft Beer Rosé wine following varietals in the past 6 months 81% Cocktails Base = All regular wine drinkers in Ontario (n>=805) Liqueurs Pinot Grigio / Pinot Gris 52% Merlot 56% Chardonnay 52% Cabernet Sauvignon 52% Sauvignon Blanc 51% Pinot Noir 46% 74% Riesling 37% Shiraz / Syrah 35% 30% Moscato 21% Malbec 25%  Red blend 32% White blend 20% 22% 34% Zinfandel 21% Gewürztraminer 13% Cabernet Franc 17% 41% Chenin Blanc 9% Baco Noir 12% 42% Sémillon 5% Sangiovese 10% 45% Viognier 5% Gamay 7% 51% Verdejo 5% Grenache 7% Albariño 4% Pinotage 6% Colombard 4% Tempranillo 6% Torrontés 4% Carménère 5% Grüner Veltliner 3% Garnacha 5% Sizing 100% Sizing 100%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 34 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

Wine consumers in Ontario are increasingly more confident and knowledgeable about wine, which is also reflected in their increasing involvement

Wine knowledge and confidence index Involvement and perceived expertise in wine Wine knowledge index (0-100) is calculated based on consumer-reported % who 'agree' or 'strongly agree' with the following statements awareness of wine-producing countries, wine-growing regions and wine Base = All regular wine drinkers in Ontario (n>=805) brands / Wine confidence index (0-100) is calculated based on the extent to Drinking wine gives me pleasure 80% which consumers feel competent about their wine knowledge  Base = All regular wine drinkers in Ontario (n>=805) I always look for the best quality wines I can get for my budget 74% Deciding which wine to buy is an important decision 65% Index 2017 Index change 2019 I like to take my time when I purchase a bottle of wine 61% Generally speaking, wine is reasonably priced 60%  I have a strong interest in wine 50% Knowledge 34.5 +3.7 38.2 Wine is important to me in my lifestyle 47% I feel competent about my knowledge of wine 41% Compared to others, I know less about the subject of wine 38% Confidence 52.2 +0.9 53.1 Generally speaking, wine is an expensive drink 33% I don’t understand much about wine 25% 100% Attitudes towards wine % who agree with the following statements about wine ▪ Regular wine drinkers from Ontario are increasingly more Base = All regular wine drinkers in Ontario (n>=805) knowledgeable about wine and are significantly more knowledgeable than other provinces 28% I enjoy trying new and ▪ Increasing knowledge is also reflected in their involvement, with different styles of wine on a regular basis significantly more consumers from Ontario saying that deciding which wine to buy is an important decision, guided by their I don't mind what I buy 48% so long as the price is knowledge of wine-producing countries, regions and brands right I know what I like and I ▪ Just under half of regular wine drinkers in Ontario are experimental tend to stick to what I with wine and enjoy trying new and different styles of wine know

25%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 35 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

LCBO stocking policies significantly influence consumption, with high proportions of regular wine drinkers in Ontario choosing local wines

▪ Since 2018, they have a decreasing awareness of key ▪ As a result of laws prohibiting the possession wine-producing countries, in line with the global of alcohol that has been imported from trend of cognitive off-loading (a process in which we other provinces (unless imported by the rely increasingly on instant, online resources to LCBO), it is not surprising that Niagara retrace information when we require it and commit Peninsula (Ontario) has high consumption less information to memory) among consumers from Ontario

▪ In the long-term, consumption from a broad range of ▪ Since 2017, an increasing number of countries is narrowing, with consumers favoring consumers in Ontario are consuming wines local and French wine from French regions, including Bordeaux, as a result of the long-standing trade ▪ High consumption of Californian wine as a result of relationship between Ontario and France the United States-Mexico-Canada Agreement which offers an essential gateway to major allowing imports of Californian wines to Ontario markets

100% Country of origin consumption: Top five Region of origin consumption: Top five % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in Ontario (n>=805) Base = All regular wine drinkers in Ontario (n>=805) 44% 26% 18% 17% 15%

Canada California Italy France Australia Niagara Napa Valley Prince Bordeaux Tuscany sizing 71% 42% 38% 34% 42%   Peninsula Edward County

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 36 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

Government liquor store LCBO is by far the most popular channel, with a quarter of consumers shopping for wine in the recently legalized grocery channel

▪ Consumers in Ontario are more likely to purchase wine from government-controlled liquor stores as a result of laws preventing possession of alcohol imported from other provinces, unless under the authority of the Liquor Control Board of Ontario (LCBO), a government-run store DTC allowed? NO ▪ An increasing number of grocery and super stores are being allowed to sell wine, with 139 Wine available at: Government-run grocery stores in Ontario currently selling it liquor stores (eg LCBO), beer stores, wine stores, convenience outlets and ▪ The LCBO dominates in Ontario, and aims to rebrand their agency stores to ‘convenience grocery stores (slowly increasing) outlets’ to aid consumers in identifying local alcohol retailers more easily LCBO Sales Hours: Mon/Sun 10am-8pm

Wine-buying channel usage % who have bought wine from the following channels in the past 6 months Tax on wine? YES Base = All regular wine drinkers in Ontario (n>=805) 2015 2019 In a government-controlled liquor store 77% 85%  Wine basic tax: percentage of the retail In a grocery store n/a 26% price of the wine bought: 6.1% at a In a wine store attached to a grocery store 25% 24% winery retail store, 9.6% at a wine boutique In a super store 10% 16%  In a private wine store 14% 12% Wine volume tax: based on the volume From the winery direct 12% 12% of wine; 29 ¢/L for wine, 28 ¢/L for wine In a beer and wine (convenience) store 15% 12%  coolers From Duty Free 11% 11% Environmental tax: 8.93 cents for each In a privatized liquor store 8% 8% non-refillable container in which the From a make your own wine store 11% 8%  wine is packaged In a club store 6% 6% On the internet 3% 4% Through mail order 3% 2%  https://www.ontario.ca/page/alcohol-sales-in-retail-stores  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 37 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

While consumption frequency has remained broadly stable, spend across all occasions has significantly increased, perhaps reflecting the higher income of consumers in Ontario and the increasing prominence of more expensive wines Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion ▪ The average spend in the off- Base = All regular wine drinkers in Ontario (n=2,066) A relaxing drink With a more At a party / premise has significantly With an informal at the end of the formal dinner celebration at increased across all occasions, meal at home day at home party at home home with the most significant increase Every day / most days 8% 7% 1%  1% in average price for gifting 2-5 times per week 21% 19% 3% 3% About once per week 22% 22% 10% 9% ▪ More likely to drink wine for 1-3 times per month 23% 26%  28% 32% informal occasions at home than Less than once per month 16% 20% 52% 51% other provinces I don't drink wine on this type of occasion 10% 7% 7%  5% ▪ Frequency of wine consumption in the off-premise has remained Spend on wine in the off-premise broadly stable among regular % who typically spend the following amount on a bottle of wine on each occasion wine drinkers in Ontario Base = All regular wine drinkers in Ontario (n>=2,066) A relaxing drink With a more At a party / With an informal As a gift for at the end of the formal dinner celebration at meal at home somebody else day at home party at home home Less than $6 3% 3% 1% 1% 0% Between $6 and $7.99 4% 4% 1% 2% 0%  Between $8 and $9.99 12% 12% 4% 6% 2% Due to Between $10 and $12.99 33% 32% 15% 22% 11%  methodology Between $13 and $15.99 26% 28% 27% 30% 24%  changes, Between $16 and $19.99 14% 15% 25% 22% 27%  significances Between $20 and $24.99 5% 5% 18% 12% 20% for this slide $25 or more 2% 2% 8% 5% 15%  are calculated $13.30 $13.46 $16.88 $15.51 $18.35 Average spend ($) against 2017 ($13.04) ($13.19) ($16.25) ($15.00) ($17.54)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 38 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

Spend on wine for formal occasions and parties / celebrations / nights out has increased significantly over the past two years, with a higher proportion drinking wine at least once a month at parties / celebrations / nights out Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion ▪ Compared with 2017, regular wine Base = All regular wine drinkers in Ontario (n=2,066) drinkers in Ontario are spending A relaxing drink With an informal With a more At a party / more on a bottle of wine for out at the end of meal in a pub / formal dinner in celebration / big formal dinners in restaurants and the day bar / restaurant a restaurant night out parties / celebrations / nights out Every day / most days 4% 1% 0% 0% 2-5 times per week 12% 4% 3% 3% ▪ Consumption frequency in the on- About once per week 14% 10% 9% 7% premise has remained relatively 1-3 times per month 22% 30% 31% 28%  stable, with a marginal increase in Less than once per month 33% 46% 54% 55% those drinking at parties / I don't drink wine on this type of occasion 16% 9% 2% 7% celebrations / nights out at least once per month Spend on wine in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Ontario (n>=2,066) A relaxing drink With an informal With a more At a party / out at the end of meal in a pub / formal dinner in celebration / big the day bar / restaurant a restaurant night out Less than $15 38% 26% 13% 17% Between $15 and $19.99 28% 26% 22% 26% Due to Between $20 and $24.99 15% 19% 19% 21% methodology Between $25 and $29.99 10% 15% 18% 17% changes, Between $30 and $39.99 6% 8% 14% 10% significances Between $40 and $49.99 2% 4%  8% 6% for this slide $50 or more 1% 1% 5%  4% are calculated $19.84 $21.92 $26.58 $24.30 against 2017 Average spend ($) ($19.95) ($21.85) ($26.08) ($23.72)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 39 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

Ontarian wine brand Jackson-Triggs is the most purchased brand among consumers, however New World wine brands are experiencing growth Top 3 most powerful brands in Ontario: 1 Yellow Tail – 98.8 Brands you may find them drinking: Indexes calculated based on a 2 Jackson-Triggs – 98.5 combination of consumer reported brand health 3 Jacob’s Creek – 76.9 measures. For more information, please refer to page 89 Top 15 brands by awareness and respective purchase level Base = All regular wine drinkers in Ontario (n>=805)

Yellow Tail 30% 78% Jackson-Triggs 32% 78% Jacob's Creek 17% 68% ▪ Consumers in Ontario are more likely to have a broad awareness Peller Estates 14% 67% Inniskillin 13% 65% of brands compared with all other provinces, with increasing Sawmill Creek 12% 64% consumption of a range of brands PE French Cross 10% 64% Naked Grape 13% 63% ▪ The number one most purchased brand of those aware is Pelee Island 12% 61% Jackson-Triggs, a domestic wine brand with vineyards in the Wayne Gretzky Estates 7% 55% Niagara Peninsula of Ontario Woodbridge 10% 54% Awareness Barefoot 12% 51% Purchase ▪ Local brands are prominent with eight domestic Ontarian brands Wolf Blass 11% 48% ranking in the top 15 for awareness Gallo Family Vineyards 5% 47% Kim Crawford 8% 43%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 40 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

41 WINE MARKET SUMMARY: ALBERTA Alberta regular wine drinkers are the youngest out of all the provinces and have lower consumption frequency; they have slightly below national average confidence and knowledge indexes and tend to spend slightly more in on-premise

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $13 - $18.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $20 - $25.99 in

the on-premise Wine Knowledge Index H G I H

KNOWLEDGE LOW

Prefer to (QC) (MB) (AB) (NS) (BC) (ON) consume wines from Okanagan Youngest regular wine Valley Wine Confidence Index

drinking population, H G I H yet earning high CONFIDENCE

incomes, with the LOW highest proportion having a $120,000+ annual household income (MB) (QC) (AB) (NS) (BC) (ON) 42 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

The proportion of regular wine drinkers in Alberta having an annual household income greater than $120,000 significantly increased since 2015, suggesting that the regular wine drinking population in Alberta is getting wealthier

Age Gender 18% 13% 65 and over 14% 19% 12% 55-64 17% 45-54 21% 15% 35-44 26% 25-34 50% 50% 22% 50% 50% 18-24 9% 13% Legal Drinking 2015 2019 Age: 18 Total household income (before tax) Portraits 2015 2019 Under $20,000 5% 5% 2017 2019 $20,000 - $29,999 6% 5% Engaged Explorers 7% 9% $30,000 - $39,999 5% 7% Enthusiastic Treaters 8% 9% $40,000 - $49,999 12% 8% Mainstream Matures 20% 18% $50,000 - $59,999 12% 10% Social Newbies 26% 25% $60,000 - $69,999 8% 7% Contented Occasionals 18% 18% $70,000 - $79,999 15% 9%  Kitchen Casuals 21% 20% $80,000 - $99,999 10% 13% $100,000 - $119,999 9% 10% For more information on Portraits $120,000+ 10% 18%  groups, please refer to page 96 Prefer not to answer 9% 8%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 43 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

Similar to other provinces, craft beer has experienced a rise in the proportion of consumers in Alberta

Alberta regular wine drinkers’ alcoholic beverage Wine consumption frequency repertoire % of regular wine drinkers in Alberta who usually drink wine at the following frequency Base = All regular wine drinkers in Alberta (n>=132) % of regular wine drinkers in Alberta who have drunk the following beverages in the past 12 months 2015 2019 Base = All regular wine drinkers in Alberta (n>=132) Most days / every day 10% 8% 2-5 times a week 31% 30% About once a week 28% 29% Red wine 1-3 times a month 30% 33% White wine Beer Vodka Red and white varietal consumption Rum % of regular wine drinkers in Alberta who have drunk the following varietals in the past 6 Craft beer months 84% Whisky / Whiskey Base = All regular wine drinkers in Alberta (n>=132) Rosé wine Cocktails Sauvignon Blanc 48% Merlot 52% Liqueurs Chardonnay 48% Cabernet Sauvignon 50% Pinot Grigio / Pinot Gris 48% Pinot Noir 41% 75% Moscato 33% Shiraz / Syrah 37% Riesling 32% Malbec 34% 72% 32% White blend 22% Red blend 27% 34% Gewürztraminer 15% Zinfandel 21% 40% Chenin Blanc 8% Cabernet Franc 10% 43% Viognier 6% Pinotage 9% 45% Verdejo Sangiovese 57% 4% 8% 48% Torrontés 4% Carménère 8% Sémillon 4% Tempranillo 8% Grüner Veltliner 4% Grenache 7% Colombard 3% Baco Noir 7% Albariño 2% Gamay 5% Sizing 100%Sizing 100%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 44 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

Regular wine drinkers in Alberta are increasingly seeing wine as an expensive drink and looking to maximize quality when buying wine

Attitudes towards wine ▪ Although not significant, Alberta experienced a decrease in the wine % who agree with the following statements about wine knowledge index since 2017 Base = All regular wine drinkers in Alberta (n>=132) I enjoy trying new ▪ The proportion of regular wine drinkers in Alberta who always look 26% and different styles for the best quality wine they can get for their budget and who of wine on a believe wine to be generally expensive significantly rose since 2015, regular basis highlighting an increasing attention to price when buying wine among Alberta regular wine drinkers 45% I don't mind what I buy so long as the ▪ Wine consumers in Alberta are quite experimental, with almost price is right half of them declaring to enjoy trying new and different styles of wine on a regular basis I know what I like and I tend to stick to what I know 29%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 45 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

The proportion of regular wine drinkers purchasing wine from California and from the region of Napa Valley has significantly decreased since 2015

▪ The proportion of regular wine drinkers consuming ▪ Although Napa Valley is the first wine- wine from California, France and Australia producing region by awareness, the significantly decreased since 2015 proportion of regular wine drinkers consuming wine from said wine-producing ▪ Canada dominates the chartings, being the first region significantly decreased since 2015 wine-producing country by both awareness and consumption among regular wine drinkers in Alberta ▪ Almost half of the regular wine drinking population in Alberta have had wine from ▪ Although Italy is the second country by awareness the Canadian wine-producing region of incidence, it ranks third in consumption due to the Okanagan in the past 3 months low conversion rate (42%)

100%

Country of origin consumption: Top five Region of origin consumption: Top five % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in Alberta (n>=132) Base = All regular wine drinkers in Alberta (n>=132) 44%

28% 15% 11% 11% Canada California Italy France Australia 67% 48%  33% 31% 30%  Okanagan Napa Valley Tuscany Bordeaux Champagne sizing

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 46 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

Due to provincial laws that completely privatize the sale of alcohol, the most common wine-buying channels in Alberta are privatized liquor stores

▪ The proportion of regular wine drinkers buying wine from privatized liquor stores and wine stores attached to grocery stores has significantly DTC allowed? YES, but subject to increased since 2015 provincial regulations ▪ The proportion of regular wine drinkers buying wine from super stores Wine available at: Privately owned and beer and wine stores has significantly decreased since 2015 liquor stores Alberta is the only province in Canada to abandon the government-run stores in favour of the private sector Wine-buying channel usage % who have bought wine from the following channels in the past 6 months Base = All regular wine drinkers in Alberta (n>=132) 2015 2019 Tax on wine? YES In a privatized liquor store 55% 65%  In a super store 42% 28%  Wine tax: depends on the alcohol In a wine store attached to a grocery store 15% 26%  percentage. In a club store 23% 25% Greater than 16% alcohol by volume: In a beer and wine store 32% 24%  $6.56 per litre In a private wine store 23% 20% Less than or equal to 16% alcohol by In a government-controlled liquor store 19% 15% volume: $3.91 per litre In a grocery store n/a 13% From Duty Free 7% 7% From the winery direct 9% 6% From a make your own wine store 6% 4% On the internet 1% 3% Through mail order 1% 2% www.aglc.ca  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 47 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

Average spend has significantly increased across all off-premise occasions among regular wine drinkers in Alberta

Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion ▪ The proportion of regular wine Base = All regular wine drinkers in Alberta (n>=132) drinkers in Alberta consuming A relaxing drink With a more At a party / wine with a more formal dinner With an informal at the end of the formal dinner celebration at party at home about once a meal at home day at home party at home home week significantly decreased Every day / most days 5% 3% 1% 1% since 2015 2-5 times per week 21% 17% 5% 4% About once per week 22% 22% 8%  9% ▪ Regular wine drinkers in Alberta 1-3 times per month 27% 28% 28% 33% are spending more across all off- Less than once per month 16% 23% 52% 49% premise occasions, aligning with I don't drink wine on this type of occasion 8% 7% 6% 4% higher income

Spend on wine in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Alberta (n>=132) A relaxing drink With a more At a party / With an informal As a gift for at the end of the formal dinner celebration at meal at home somebody else day at home party at home home Less than $6 2% 3% 1% 1% 0% Between $6 and $7.99 8% 7% 2% 4% 1% Due to Between $8 and $9.99 14% 15% 7% 9% 3% methodology Between $10 and $12.99 28% 29% 17%  21%  13% changes, Between $13 and $15.99 22% 20% 20% 22% 18% significances Between $16 and $19.99 14% 15% 23% 20% 22% for this slide Between $20 and $24.99 8%  8%  19% 14%  25% are calculated $25 or more 4% 4% 12% 8% 18% against 2017 $13.62  $13.64 $17.15 $15.70  $18.75 Average spend ($) ($12.90) ($13.15) ($16.26) ($14.87) ($17.68)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 48 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

Frequency of wine consumption and spend on wine in the on-premise remains broadly stable Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Alberta (n>=132)

A relaxing drink With an informal With a more At a party / out at the end of meal in a pub / formal dinner in celebration / big the day bar / restaurant a restaurant night out

Every day / most days 2% 1% 0% 1% ▪ The proportion of regular wine 2-5 times per week 12% 3% 3% 4% drinkers spending more than About once per week 15% 9% 8% 8% $50 for wine with an informal 1-3 times per month 27% 34% 33% 26% meal in a pub, bar or restaurant Less than once per month 32% 42% 53% 55% and at a party or celebration out I don't drink wine on this type of occasion 13% 11% 2% 6% has significantly increased since 2017 Spend on wine in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Alberta (n>=132) A relaxing drink With an informal With a more At a party / out at the end of meal in a pub / formal dinner in celebration / big the day bar / restaurant a restaurant night out

Less than $15 34% 27% 14% 19% Due to Between $15 and $19.99 27% 25% 18% 22% methodology Between $20 and $24.99 16% 19% 19% 19% changes, Between $25 and $29.99 13% 13% 18%  18% significances Between $30 and $39.99 5% 10% 16% 10% for this slide  Between $40 and $49.99 3% 4% 8% 7% are calculated   $50 or more 2% 3% 7% 5% against 2017 $20.72 $22.49 $27.23 $25.03 Average spend ($) ($20.07) ($21.69) ($25.96) ($23.25)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 49 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

The 3 most powerful brands in Alberta are California’s Barefoot, Australian Yellow Tail and Canadian Jackson Triggs

Top 3 most powerful brands in Alberta: 1 Barefoot - 97.1 Brands you may find them drinking:

2 Indexes calculated Yellow Tail - 95.0 based on a combination of consumer reported 3 Jackson-Triggs - 89.7 brand health measures. For more information, please refer to Top 15 brands by awareness page 89 and respective purchase level Base = All regular wine drinkers in Alberta (n>=132) YellowYellow Tail Tail 26%26% 75%75% NakedNaked Grape Grape 22%22% 74%74% BarefootBarefoot 28%28% 70%70% Jackson-TriggsJackson-Triggs 22%22% 67%67% ▪ Californian brand Barefoot is the top brand in Alberta for SawmillSawmill Creek Creek 11%11% 63%63% conversion, purchase and affinity incidence Jacob'sJacob's Creek Creek 16%16% 61%61% OysterOyster Bay Bay 13%13% 55%55% AwarenessAwareness ▪ A higher proportion of regular wine drinkers in Alberta have MissionMission Hill Hill 9%9% 54%54% PurchasePurchase recently purchased Yellow Tail, Barefoot and Apothic ApothicApothic 18%18% 51%51% WoodbridgeWoodbridge 10% 51% 10% 51% ▪ Italian brand Masi ranks quite well in the wine market in Alberta, CopperCopper Moon Moon 15% 50% 15% 50% with the highest recommendation and consideration incidence WolfWolf Blass Blass 10%10% 48%48% GalloGallo Family Family Vineyards Vineyards 9%9% 47%47% PellerPeller Estates Estates 6%6% 46%46% WayneWayne Gretzky Gretzky Estates Estates 6%6% 42%42%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 50 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

51 WINE MARKET SUMMARY: BRITISH COLUMBIA Mid-aged, highly involved wine drinkers who are willing to spend a bit more in the off-premise compared with other provinces; strongly connected with local wines from the Okanagan Valley

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $18.99 retail and $20 - $24.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

Wine drinkers who feel competent about their (QC) (MB) (AB) (NS) (BC) (ON) knowledge of wine, With more than half showing loyalty to

locally-produced Wine Confidence Index H G I H of the population H G I H aged under 45, British wines from

Columbia regular Okanagan Valley CONFIDENCE LOW wine drinkers’ annual household income is slightly above average (MB) (QC) (AB) (NS) (BC) (ON) 52 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

The proportion of regular wine drinkers in British Columbia having a total household income of more than $120,000 increased significantly since 2015. Additionally, the proportion of those aged 45-54 has decreased, with younger consumers (under 45) more prominent in the population Age Gender 21% 20% 65 and over 18% 17% 55-64

11%  18% 45-54 23% 35-44 18% 51% 49% 25-34 18% 20% 49% 51% 19-24 Legal 7% 9% Drinking 2015 2019 Age: 19 Total household income (before tax) Portraits 2015 2019 Under $20,000 5% 4% 2017 2019 $20,000 - $29,999 9% 6% Engaged Explorers 10% 12%

$30,000 - $39,999 11% 9% Enthusiastic Treaters 13% 8%  $40,000 - $49,999 11% 8% Mainstream Matures 19% 22% $50,000 - $59,999 9% 11% Social Newbies 28% 23% $60,000 - $69,999 7% 7% Contented Occasionals 9% 18%  $70,000 - $79,999 7% 8% Kitchen Casuals 21% 17% $80,000 - $99,999 16% 14% $100,000 - $119,999 7% 10% For more information on Portraits $120,000+ 10% 15%  groups, please refer to page 96 Prefer not to answer 8% 7%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 53 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

The majority of consumers in British Colombia are weekly wine drinkers and as in other provinces, craft beer experienced a significant increase in the proportion of consumers in British Columbia since 2015 British Columbia regular wine drinkers’ alcoholic Wine consumption frequency beverage repertoire % of regular wine drinkers in British Columbia who usually drink wine at the following frequency % of regular wine drinkers in British Columbia who have drunk the Base = All regular wine drinkers in British Columbia (n>=324) following beverages in the past 12 months 2015 2019 Base = All regular wine drinkers in British Columbia (n>=324) Most days / every day 14% 10% 2-5 times a week 33% 33% About once a week 25% 27% Red wine White wine 1-3 times a month 28% 30% Beer Vodka Red and white varietal consumption Craft Beer % of regular wine drinkers in British Columbia who have drunk the following varietals in 85% Whisky / Whiskey the past 6 months Rum Base = All regular wine drinkers in British Columbia (n>=324) Rosé wine 82% Cocktails Cider Pinot Grigio / Pinot Gris 53% Merlot 56% Chardonnay 52% Cabernet Sauvignon 51% Sauvignon Blanc 49% Pinot Noir 43%

74% Riesling 35%  Shiraz / Syrah 40% White blend 25% Malbec 32% 35% 35% Gewürztraminer 24% Red blend 26% 38% Moscato 20% Zinfandel 21% 41% Chenin Blanc 10% Cabernet Franc 14% 43% Viognier 10% Sangiovese 9% 45% Sémillon Grenache 8% 54% 7% Verdejo 5% Tempranillo 7% Colombard 5% Pinotage 6% Albariño 4% Gamay 6% Grüner Veltliner 4% Carménère 6% Torrontés 4% Garnacha 5%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level Sizing 100%Sizing 54 100% Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

Regular wine drinkers in British Columbia are significantly more knowledgeable about wine and feel competent in their wine knowledge since 2015

Wine knowledge and confidence index Involvement and perceived expertise in wine Wine knowledge index (0-100) is calculated based on consumer-reported % who 'agree' or 'strongly agree' with the following statements awareness of wine-producing countries, wine-growing regions and wine Base = All regular wine drinkers in British Columbia (n>=324) brands / Wine confidence index (0-100) is calculated based on the extent to Drinking wine gives me pleasure 81% which consumers feel competent about their wine knowledge I always look for the best quality wines I can get for my budget 72% Base = All regular wine drinkers in British Columbia (n>=324) Deciding which wine to buy is an important decision 63% Index 2017 Index change 2019 I like to take my time when I purchase a bottle of wine 61% Generally speaking, wine is reasonably priced 52% I have a strong interest in wine 49% Knowledge 31.6 +5.6 37.2 Wine is important to me in my lifestyle 46% I feel competent about my knowledge of wine 38% Compared to others, I know less about the subject of wine 34% Confidence 51.5 +1.3 52.8 Generally speaking, wine is an expensive drink 34% I don’t understand much about wine 26% 100% Attitudes towards wine % who agree with the following statements about wine ▪ The proportion of regular wine drinkers in British Columbia feeling Base = All regular wine drinkers in British Columbia (n>=324) competent about their wine knowledge significantly increased since 2015 I enjoy trying new 26% and different styles ▪ Accordingly, both knowledge and confidence has increased over of wine on a the years, with their knowledge index significantly increasing by regular basis more than five units I don't mind what I 47% buy so long as the ▪ Regular wine drinkers in British Columbia are quite experimental price is right when it comes to wine, with almost half of them declaring to enjoy trying new and different styles of wine on a regular basis I know what I like and I tend to stick to what I know 27%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 55 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

The proportion of regular wine drinkers in British Columbia consuming wine from California and Chile has decreased since 2015, while wines from the local Okanagan valley are purchased by 60% of regular wine consumers

▪ The proportion of regular wine drinkers who ▪ California and Chile experienced a significant purchased wine from the wine-growing region of decrease in the proportion of regular wine drinkers Champagne in the prior three months significantly in British Columbia having consumed wine from the increased since 2015 two countries in the past 6 months ▪ Three-fifths of the regular wine drinking population ▪ Although France is the country with the second in British Columbia have consumed wine from the highest awareness incidence, it ranks fourth in region of Okanagan, British Columbia’s most famous consumption due to the low conversion of awares to wine-growing area purchasers (39%)

Country of origin consumption: Top five Region of origin consumption: Top five 100% % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in British Columbia (n>=324) Base = All regular wine drinkers in British Columbia (n>=324) 61%

30% 14% 12% 10%

Canada California Australia   France Chile 77% 46% 38% 32% 29% Okanagan Napa Valley Bordeaux Tuscany Champagne sizing

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 56 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

As in 2015, the most popular wine-buying channels among regular wine drinkers in British Columbia remain government-controlled liquor stores

▪ Although still the most popular wine-buying channel, government-controlled liquor stores experienced a significant decrease in the proportion of regular wine drinkers in California purchasing wine from them since 2015 DTC allowed? YES from wineries, NO ▪ The proportion of regular wine drinkers purchasing wine from wine stores attached to from retailers grocery stores and from super stores has significantly increased since 2015 DTC sales and shipment are permitted ▪ Make your own wine stores are not as popular anymore, with the proportion of regular only for 100% Canadian wine purchased wine drinkers purchasing wine from there significantly decreasing since 2015 directly from a winery. The amount allowed is for personal consumption Wine available at: Government-run liquor stores (eg LCBO), beer and wine stores. Alcoholic beverages are NOT sold Wine-buying channel usage in supermarkets, convenience stores, or % who have bought wine from the following channels in the past 6 months vending machines Base = All regular wine drinkers in British Columbia (n>=324) 2015 2019

In a government-controlled liquor store 81% 73%  In a privatized liquor store 35% 40% In a beer and wine store 25% 25% In a private wine store 22% 22% Tax on wine? YES From the winery direct 10% 14% Wine basic tax: all alcoholic beverages In a wine store attached to a grocery store 7% 13%  in British Columbia are subject to 10% In a grocery store n/a 12% PST (provincial sales tax) and 5% GST In a super store 5% 9%  (goods and services tax) In a club store 6% 8% Environment: Government liquor stores

From Duty Free 8% 8%  recycle everything they sell and refund From a make your own wine store 11% 7% the consumers the 10 or 20 cent deposit On the internet 3% 4% paid on cans or bottles Through mail order 2% 2% www.gov.ba.ca  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 57 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

Regular wine drinkers in British Columbia are spending significantly more when buying wine with a formal dinner party and as a gift Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion ▪ Regular wine drinkers in British Base = All regular wine drinkers in British Columbia (n>=633) Columbia are not drinking wine A relaxing drink With a more At a party / With an informal with more formal dinner parties at the end of the formal dinner celebration at meal at home at home as often as they used day at home party at home home to, with the proportion of those Every day / most days 8% 6% 1% 1% doing it 1-3 times per month 2-5 times per week 20% 17% 4% 3% significantly decreasing and the

About once per week 22% 20% 9% 9%  proportion of those who do it 1-3 times per month 27% 29% 25% 31% less than once per month Less than once per month 17% 21% 56%  51% significantly increasing since I don't drink wine on this type of occasion 8% 7% 6% 5% 2017

▪ The typical amount regular wine Spend on wine in the off-premise drinkers spend for wine with a % who typically spend the following amount on a bottle of wine on each occasion formal dinner party at home Base = All regular wine drinkers in British Columbia (n>=633) and as a gift to somebody else A relaxing drink With a more At a party / With an informal As a gift for significantly increased since at the end of the formal dinner celebration at

meal at home somebody else 2017

day at home party at home home  Less than $6 3% 2% 1% 1% 0% 

Between $6 and $7.99 3% 3% 1%  3% 0% Between $8 and $9.99 13% 12% 4% 6% 2%  Between $10 and $12.99 31% 29% 14% 21% 10% Due to Between $13 and $15.99 26% 28% 25% 27% 21% methodology Between $16 and $19.99 15% 15% 27%  23% 30%  changes, Between $20 and $24.99 6% 8% 18% 12% 23% significances $25 or more 3% 3% 10% 6% 14% for this slide $13.68 $13.94 $17.29 $15.63 $18.55 are calculated Average spend ($)  ($13.54) ($13.76) ($16.68) ($15.53) ($17.96) against 2017

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 58 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

On-premise wine consumption frequency has remained broadly stable since 2017 Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in British Columbia (n>=633) ▪ The proportion of regular wine drinkers consuming wine with an A relaxing drink With an informal With a more At a party / informal meal in a pub, bar or out at the end of meal in a pub / formal dinner in celebration / big restaurant every day / most days the day bar / restaurant a restaurant night out has significantly increased since 2017 Every day / most days 4% 1%  1% 0% 2-5 times per week 11% 3% 4% 3% ▪ The proportion of regular wine About once per week 13% 12% 9% 7% drinkers spending between $40 1-3 times per month 24% 32% 32% 29% Less than once per month 35% 44% 52% 55% and $49.99 on wine with an I don't drink wine on this type of occasion 13% 7% 2% 6% informal meal in a pub, bar or restaurant has significantly increased since 2017 Spend on wine in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in British Columbia (n>=633) A relaxing drink With an informal With a more At a party / out at the end of meal in a pub / formal dinner in celebration / big the day bar / restaurant a restaurant night out

Less than $15 35% 23% 13% 18% Between $15 and $19.99 26% 26% 17% 23% Due to Between $20 and $24.99 18% 21% 22% 23% methodology Between $25 and $29.99 11% 16% 17% 17% changes, Between $30 and $39.99 6% 9% 17% 10% significances Between $40 and $49.99 2% 4%  7% 6% for this slide $50 or more 1% 1% 7% 3% are calculated $20.39 $22.32 $27.24 $24.27 Average spend ($) against 2017 ($19.97) ($21.47) ($25.59) ($23.60)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 59 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

Australian brand Yellow Tail dominates the rankings in British Columbia, being the top brand for both awareness and purchase incidence Top 3 most powerful brands in British Columbia:

1 Yellow Tail - 100.0 Brands you may find them drinking:

2 Indexes calculated Jackson-Triggs - 89.4 based on a combination of consumer reported 3 Mission Hill - 81.8 brand health measures. For more information, please refer to Top 15 brands by awareness page 89 and respective purchase level Base = All regular wine drinkers in British Columbia (n>=324)

Yellow TailTail 35%35% 83%83%

Naked Grape 17%17%  76%76% Jackson-Triggs 28%28% 74%74%

Mission HillHill 18%18% 74%74%  ▪ Sawmill CreekCreek 14%14% 69%69% Australian brand Yellow Tail performs extremely well in British Columbia, being the top for all brand health measures: Barefoot 17%17%  62%62%  awareness, conversion, purchase, consideration, affinity and Peller Estates 9%9% 59%59% recommendation Jacob's CreekCreek 12%12%  58%58% Oyster BayBay 12%12% 56%56% AwarenessSeries1 ▪ Domestic brand Jackson-Triggs performs quite well too, being Copper Moon 14%14% 56%56%

PurchaseSeries2 among the top 3 for all brand measures and performing well in

PE FrenchWoodbridge Cross 5%7% 52%50%   terms of conversion (38%) Gallo FamilyWoodbridge Vineyards 4%7% 50%48% Gallo Family VineyardsInniskillin 4%7% 48%47% WolfInniskillin Blass 7%8% 47%45% Lindeman'sWolf Blass 8%7% 45%43%

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 60 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

61 WINE MARKET SUMMARY: QUÉBEC Mid-aged wine drinkers who have the highest involvement in wine but the lowest wine knowledge index, as well as a low wine confidence index

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $18.99 retail and $20 - $24.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

(MB) (QC) (AB) (NS) (BC) (ON) 62 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

Aligning with the increase of income and mid-aged drinkers, there has been a significant increase in the proportion of Engaged Explorers, known as younger wine drinkers who are willing to put money and time into the category

Age Gender 19% 18% 65 and over 18% 18% 55-64

14%  19% 45-54 35-44 16% 22%  50% 50% 25-34 19% 18% 50% 50% 18-24 Legal 9% 10% Drinking 2015 2019 Age: 18 Total household income (before tax) Portraits 2015 2019 Under $20,000 10% 8% 2017 2019 $20,000 - $29,999 7% 8% Engaged Explorers 7% 10%  $30,000 - $39,999 11% 10% Enthusiastic Treaters 12% 10% $40,000 - $49,999 12% 11% Mainstream Matures 18% 18% $50,000 - $59,999 11% 10% Social Newbies 26% 25% $60,000 - $69,999 8% 8% Contented Occasionals 13% 15% $70,000 - $79,999 8% 9% Kitchen Casuals 24% 22% $80,000 - $99,999 8% 11%  $100,000 - $119,999 8% 8%

$120,000+ 8% 11% For more information on Portraits  groups, please refer to page 96 Prefer not to answer 10% 6%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 63 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

A higher proportion of regular wine drinkers in Québec consume craft beer and white wine compared to 2015, along with Pinot Grigio, Moscato and Garnacha

Québec regular wine drinkers’ alcoholic beverage Wine consumption frequency repertoire % of regular wine drinkers in Québec who usually drink wine at the following frequency % of regular wine drinkers in Québec who have drunk the following Base = All regular wine drinkers in Québec (n>=541) beverages in the past 12 months 2015 2019 Base = All regular wine drinkers in Québec (n>=541) Most days / every day 10% 9% 2-5 times a week 31% 32% Red wine About once a week 32% 31% White wine 1-3 times a month 27% 28% Beer 88% Rosé wine Red and white varietal consumption Rum % of regular wine drinkers in Québec who have drunk the following varietals in Vodka the past 6 months Craft Beer  Base = All regular wine drinkers in Québec (n>=541)

Whisky / Whiskey Liqueurs 80% Cocktails Chardonnay 54% Cabernet Sauvignon 57% Sauvignon Blanc 52% Merlot 53% Pinot Grigio / Pinot Gris 41%  Pinot Noir 75% 52% Riesling 22% Shiraz / Syrah 38% 27% 28% Moscato 14% Malbec 21% 30% Chenin Blanc 13% Sangiovese 18% 36% White blend 12% Red blend 17% Gewürztraminer 7% Zinfandel 17% 41% Sémillon 7% Cabernet Franc 14% 43% Viognier 5% Grenache 13% 47% Colombard 4% Tempranillo 13% Verdejo 4% Pinotage 7% Torrontés 3% Garnacha 7% Albariño 3% Gamay 6% Grüner Veltliner 3% Carménère 5% Sizing 100%Sizing 100%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 64 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

Wine knowledge, confidence, and attitudes have remained stable among Québec regular wine drinkers since 2017

Attitudes towards wine % who agree with the following statements about wine ▪ The knowledge and confidence index has slightly increased over Base = All regular wine drinkers in Québec (n>=541) the past two years

24% I enjoy trying new ▪ A significantly higher proportion of Québec regular wine and different styles drinkers deem wine to be reasonably priced when compared to of wine on a 2015, 2017 and 2018 regular basis I don't mind what I ▪ The regular wine drinking population in Québec is quite buy so long as the experimental, with more than half of regular wine drinkers price is right 58% enjoying trying new and different styles of wine regularly

19% I know what I like and I tend to stick to what I know

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 65 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

The proportion of regular wine drinkers in Québec who consume wine from a variety of countries has significantly decreased since 2015

▪ The proportion of regular wine drinkers in Québec ▪ The top wine-producing regions by consumption who consumed wine from France, Italy, California, among Québec regular wine drinkers are mainly Spain and Australia has significantly decreased over French, with the only exception being Chianti the years ▪ While the proportion of Québec consumers drinking ▪ Similarly to consumption incidence, the proportion wine from the both the regions of Bordeaux and of regular wine drinkers in Québec aware of most Bourgogne significantly increased since 2015, the wine-producing countries has significantly proportion of those drinking wine from the regions of decreased, with the exception of Switzerland which Côtes du Rhône and Beaujolais significantly has remained stable decreased since 2015

▪ France, Italy and California are the countries with ▪ Similarly to country of origin, the proportion of the highest rates of conversion Québec regular wine drinkers aware of most wine- 100% producing regions significantly decreased since 2015

Country of origin consumption: Top five Region of origin consumption: Top five % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in Québec (n>=541) Base = All regular wine drinkers in Québec (n>=541)

33%

 21% 21%  17% 15%

France Italy California Spain Australia    

55%  49% 32% 32% 30% Bordeaux Chianti Côtes du Beaujolais Bourgogne sizing Rhône

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 66 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

A higher proportion of regular wine drinkers in Québec purchase wine from beer and wine stores, super stores and duty free compared to 2015

▪ Regular wine drinkers in Québec are more likely to purchase wine from DTC allowed? NO grocery stores, wine stores attached to grocery stores, beer and wine stores Laws restrict transport of wine not and private wine stores compared to regular wine drinkers from Canada purchased from the liquor board within Québec. Regulations have been issued ▪ Similarly to all Canadian regular wine drinkers, the most popular wine-buying which allow the importation of alcohol channels in Québec are government-controlled liquor stores from other provinces, but they only permit 9 litres of wine per person and ▪ The second most popular wine-buying channel among regular wine drinkers in only if it has been personally transported Québec are grocery stores (no direct to consumer shipment). Wine available at: Government-run liquor stores (eg LCBO), grocery stores and corner stores Wine-buying channel usage % who have bought wine from the following channels in the past 6 months Base = All regular wine drinkers in Québec (n>=541) 2015 2019 Tax on wine? YES In a government-controlled liquor store 74% 72% On-premise: $0.65 per litre per beer, In a grocery store n/a 32% $1.97 per litre for other alcoholic In a wine store attached to a grocery store 28% 28% beverages  In a beer and wine store 13% 21% Off-premise: $0.40 per litre for beer, In a private wine store 15% 16% $0.89 per litre for other alcoholic In a club store 12% 15% beverages In a privatized liquor store 7% 7% In a super store 3% 7%  From Duty Free 4% 6%  From the winery direct 5% 5% Although public drinking is forbidden, From a make your own wine store 2% 4% Québec is the only province that allows On the internet 2% 3% alcohol consumption in public parks Through mail order 1% 1% during meals www.Québec-cite.com  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 67 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

Average spend for every off-premise occasion has significantly increased since 2017 Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Québec (n>=541) ▪ Frequency of wine consumption in A relaxing drink With an With a more At a party / the off-premise has remained at the end of informal meal formal dinner celebration at broadly stable among regular wine the day at home at home party at home home drinkers in Québec Every day / most days 6% 6% 1% 1%

▪ Regular wine drinkers in Québec 2-5 times per week 17% 19% 6%  4% About once per week 22% 23% 17% 10% are spending more across all off- 1-3 times per month 20% 22% 39% 35% premise occasions, with average Less than once per month 20% 20% 34% 48% spend significantly higher in each I don't drink wine on this type of occasion 15% 10% 4% 3% off-premise occasion compared with 2017 Spend on wine in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Québec (n>=541) 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 else

the day at home at home party at home home 

Less than $6 1%  1% 0% 0% 0% Between $6 and $7.99 3% 3% 1%  1% 1%

Between $8 and $9.99 10%  11% 4% 3% 1% Due to Between $10 and $12.99 37% 37% 19% 20% 8% methodology Between $13 and $15.99 29% 29% 32% 34% 25% changes, Between $16 and $19.99 14% 14% 25% 24% 29% significances Between $20 and $24.99 5%  5%  13% 11% 21% for this slide $25 or more 2% 2% 6% 6%  15%  are calculated $13.53  $13.50 $16.23 $16.04 $18.64 Average spend ($) ($13.03) ($13.06) ($15.90) ($15.64) ($18.02) against 2017

 /  : statistically significantly higher / lower than 2017 at a 95% confidence level 68 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

Frequency of wine consumption and typical spend has remained broadly stable since 2017 in the on-premise Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Québec (n>=541) ▪ A significantly lower proportion With an A relaxing drink With a more At a party / of regular wine drinkers in informal meal out at the end formal dinner in celebration / Québec don’t drink wine as a in a pub / bar / of the day a restaurant big night out relaxing drink out at tend of the restaurant day or with an informal meal in Every day / most days 2% 1% 1% 0% 2-5 times per week 6% 4% 4% 3% a pub / bar / restaurant About once per week 12% 11% 12% 8% compared with 2017 1-3 times per month 19% 29% 36% 27%

▪ A higher proportion of Québec  Less than once per month 37% 47%  45% 55% I don't drink wine on this type of occasion 24% 8% 2% 7% regular wine drinkers spend between $40 and $49.99 when purchasing a bottle of wine for a Spend on wine in the on-premise relaxing drink out or with an % who typically spend the following amount on a bottle of wine on each occasion informal meal on-premise Base = All regular wine drinkers in Québec (n>=541) With an A relaxing drink With a more At a party / informal meal out at the end formal dinner in celebration / in a pub / bar / of the day a restaurant big night out restaurant Less than $15 38% 26% 15% 18% Between $15 and $19.99 25% 25% 25% 27% Due to

Between $20 and $24.99 15% 18% 19% 18% methodology Between $25 and $29.99 11% 14% 16%  15% changes, Between $30 and $39.99 7% 11% 14% 12% significances Between $40 and $49.99 3%  4%  7% 5% for this slide $50 or more 1% 2% 5% 4% are calculated $20.44 $22.65 $25.62 $24.43 against 2017 Average spend ($) ($20.32) ($22.21) ($25.72) ($24.27)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 69 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

Australian brand Yellow Tail has the highest awareness and purchase incidence in Québec Top 3 most powerful brands in Québec:

1 Ménage à Trois – 87.4 Brands you may find them drinking: Indexes calculated 2 based on a Jacob’s Creek – 87.3 combination of consumer reported brand health 3 Yellow Tail – 83.7 measures. For more information, please refer to Top 15 brands by awareness page 89 and respective purchase level Base = All regular wine drinkers in Québec (n>=541) Yellow Tail 21% 65%

Ménage à Trois 18% 62% 

Mouton Cadet 13% 61% 

Jacob's Creek 19% 58%

  ▪ Italian brand Masi dominates the charts with the highest conversion Gallo Family Vineyards 13% 56% rate, consideration, affinity and recommendation incidence Wallaroo Trail 15% 51% Woodbridge 10% 49% ▪ Australian brand Yellow Tail has the highest awareness and purchase J.P. Chenet 13% 48% incidence in Québec; both the proportion of awares and buyers has Barefoot 11% 43% significantly increased since 2015

Ruffino 11% 42% 

Fuzion Zuccardi 8% 37%  Awareness ▪ Mouton Cadet, Gallo Family Vineyards and Fuzion Zuccardi has experienced a significant decrease in both awares and buyers in Casillero del Diablo 9% 37% Purchase Québec since 2015 Masi 13% 36% Kim Crawford 10% 34% Trapiche 8% 33%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 70 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

71 WINE MARKET SUMMARY: MANITOBA With the lowest wine confidence index, average spend and frequency of wine consumption, Manitoba regular wine drinkers are the least involved in the wine category compared with other provinces

Total Frequency of Wine Consumption H G I H FREQUENCY Typically LOW spending $13 - $17.99 retail and $19 - $22.99 in the on-premise (MB) (AB) (QC) (BC) (ON) (NS)

Wine Knowledge Index H G I H

KNOWLEDGE LOW

Most likely to consume wine (QC) (MB) (AB) (NS) (BC) (ON) from Napa Manitoba regular Valley, followed Wine Confidence Index

wine drinkers are closely by H G I H the second Okanagan Valley youngest out of the CONFIDENCE analyzed provinces; LOW annual household income on the national average

(MB) (QC) (AB) (NS) (BC) (ON) 72 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

Since 2015, demographics have remained broadly stable in the regular wine drinking population of Manitoba, with the exception of a significantly smaller proportion of consumers in the 45-54 age bracket

Age Gender 19% 19% 65 and over

25% 21% 55-64

7%  45-54 17% 25% 35-44

50% 50% 12% 26% 25-34 46% 54% 15% 18-24 Legal 5% 10% Drinking 2015 2019 Age: 18 Total household income (before tax) Portraits 2015 2019 Under $20,000 13% 6% 2017 2019 $20,000 - $29,999 3% 7% Engaged Explorers 6% 6% $30,000 - $39,999 5% 10% Enthusiastic Treaters 9% 6% $40,000 - $49,999 5% 11% Mainstream Matures 14% 20% $50,000 - $59,999 8% 8% Social Newbies 23% 26% $60,000 - $69,999 10% 12% Contented Occasionals 23% 24% $70,000 - $79,999 15% 9% Kitchen Casuals 26% 19% $80,000 - $99,999 16% 11% $100,000 - $119,999 8% 7% For more information on Portraits $120,000+ 8% 12% groups, please refer to page 96 Prefer not to answer 9% 6%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 73 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

Since 2015, the proportion of regular wine drinkers in Manitoba who consumed whisky and craft beer in the past years significantly increased, alongside with the proportion of those who consumed Moscato in the past 6 months Manitoba regular wine drinkers’ alcoholic beverage Wine consumption frequency repertoire % of regular wine drinkers in Manitoba who usually drink wine at the following frequency Base = All regular wine drinkers in Manitoba (n>=57) % of regular wine drinkers in Manitoba who have drunk the 2015 2019 following beverages in the past 12 months Base = All regular wine drinkers in Manitoba (n>=57) Most days / every day 8% 8% 2-5 times a week 33% 25% About once a week 30% 30% Red wine White wine 1-3 times a month 30% 37% Beer Vodka Red and white varietal consumption Rum % of regular wine drinkers in Manitoba who have drunk the Whisky / Whiskey following varietals in the past 6 months Liqueurs Base = All regular wine drinkers in Manitoba (n>=57) Rosé wine 81% Craft Beer Cocktails Sauvignon Blanc 47% Merlot 51% 78% Chardonnay 43% Cabernet Sauvignon 45% Pinot Grigio / Pinot Gris 41% Pinot Noir 38% 75% Riesling 29% Shiraz / Syrah 37% 31% Moscato 26% Red blend 31%

32% White blend 19% Malbec 30% 32%  32% Gewürztraminer 7% Zinfandel 20% Sémillon 6% Cabernet Franc 8% Chenin Blanc 5% Carménère 8% 44% 58% Viognier 5% Baco Noir 7% 46% Colombard 3% Sangiovese 7% Verdejo 3% Tempranillo 6% Torrontés 2% Grenache 5%

Grüner Veltliner 2% Pinotage 4%  Albariño 1% Garnacha 2% Sizing 100%Sizing 100%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 74 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

Wine attitudes, involvement, knowledge and confidence index remained broadly stable over the past years

Wine knowledge and confidence index Involvement and perceived expertise in wine Wine knowledge index (0-100) is calculated based on consumer-reported % who 'agree' or 'strongly agree' with the following statements awareness of wine-producing countries, wine-growing regions and wine Base = All regular wine drinkers in Manitoba (n>=57) brands / Wine confidence index (0-100) is calculated based on the extent to Drinking wine gives me pleasure 78% which consumers feel competent about their wine knowledge I always look for the best quality wines I can get for my budget Base = All regular wine drinkers in Manitoba (n>=257) 69% Generally speaking, wine is reasonably priced 62% Index 2017 Index change 2019 Deciding which wine to buy is an important decision 59% I like to take my time when I purchase a bottle of wine 56% I have a strong interest in wine 43% Knowledge 27.2 +5.4 32.6 Compared to others, I know less about the subject of wine 41% Wine is important to me in my lifestyle 37% Generally speaking, wine is an expensive drink 35% Confidence 48.9 -0.4 48.5 I feel competent about my knowledge of wine 32% I don’t understand much about wine 31% 100% Attitudes towards wine % who agree with the following statements about wine Base = All regular wine drinkers in Manitoba (n>=57) ▪ Manitoba regular wine drinking population is evenly divided I enjoy trying new between the different wine attitudes and different styles 33% of wine on a ▪ Wine knowledge index has increased by 5.4 units since 2017, while 37% regular basis wine confidence index slightly decreased I don't mind what I buy so long as the ▪ Almost four-fifths of Manitoba regular wine drinkers agree or price is right strongly agree with the fact that drinking wine gives them pleasure

I know what I like and I tend to stick to what I know

30% 75 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

Canada is the top country by consumption among Manitoba regular wine drinkers, and two of the top 3 wine-producing regions by consumption are Canadian

▪ Canada is the top wine-producing country by ▪ The Californian wine-producing region Napa consumption among regular wine drinkers in Valley is the top wine-producing region by Manitoba awareness and consumption among regular wine drinkers in Manitoba ▪ The second country by consumption is California, with almost half of the Manitoba regular wine ▪ The Canadian regions of Okanagan and Niagara drinking population having consumed Californian Peninsula are among the top 3 regions by wine in the past 6 months consumption following Napa Valley

▪ The popularity of California in both country and ▪ Although the province of Manitoba does not region of consumption does not come as a surprise; have any recognized wine-producing areas, the in fact, 90% of wine from the United States that is predominance of domestic wines is made exported to Canada comes from Californian possible by provincial laws that allow DTC 100% vineyards shipping

Country of origin consumption: Top five Region of origin consumption: Top five % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in Manitoba (n>=57) Base = All regular wine drinkers in Manitoba (n>=57)

28% 27% 16% 10% 9%

Canada California Australia France Italy 63% 47% 31% 28% 27% Napa Valley Okanagan Niagara Tuscany Bordeaux sizing Peninsula

The Office of the United States Trade Representative and CNBC 76 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

Wine-buying channel usage has remained broadly stable over the years, with government-controlled liquor stores still being the most used wine-buying channel

▪ The proportion of Manitoba regular wine drinkers purchasing wine from privatized liquor stores significantly increased since 2015

▪ Interestingly, online wine purchase is not as popular as once was, with only 1% of Manitoba regular wine drinkers saying they have bought wine on the internet in the prior 6 months DTC allowed? YES ▪ The proportion of regular wine drinkers in Manitoba who purchased wine The amount allowed for DTC shipping is through mail order in the past 6 months has significantly decreased since 2015 for personal consumption Wine available at: Government-run liquor stores (eg LCBO) and privately owned beer and wine stores. Hotels are Wine-buying channel usage allowed to sell beer as licenced vendors, similar to “off sales” % who have bought wine from the following channels in the past 6 months Base = All regular wine drinkers in Manitoba (n>=57) 2015 2019 In a government-controlled liquor store 84% 75% In a privatized liquor store 4% 22%  In a beer and wine store 9% 13% In a private wine store 14% 13% Tax on wine? YES In a super store 8% 12% In a wine store attached to a grocery store 15% 11% Wine basic tax: all alcoholic beverages in Manitoba are taxed based on the type In a grocery store n/a 10% of alcohol, how much is produced, and From Duty Free 6% 7% alcohol % From a make your own wine store 8% 6% In a club store 2% 4% From the winery direct 3% 1%

On the internet 5% 1% 

Through mail order 2% 0%  www.lgcamb.ca  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 77 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

Frequency of wine consumption and spend on wine across all off-premise occasions has remained broadly stable since 2017

Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Manitoba (n>=257) ▪ The proportion of regular wine A relaxing drink With an With a more At a party / drinkers spending between $16 at the end of informal meal formal dinner celebration at and $19.99 when buying wine the day at home at home party at home home as a gift for somebody else significantly increased since Every day / most days 7% 6% 1% 1% 2017 2-5 times per week 15% 11% 2% 3% About once per week 21% 21% 6% 5% 1-3 times per month 29% 30% 28% 29% Less than once per month 19% 24% 57% 57% I don't drink wine on this type of occasion 9% 7% 6% 6%

Spend on wine in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Manitoba (n>=257) 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 else the day at home at home party at home home Less than $6 3% 2% 2% 2% 1% Between $6 and $7.99 4% 3% 3% 2% 1% Between $8 and $9.99 15% 18% 5% 10% 4% Due to Between $10 and $12.99 30% 31% 17% 22% 15% methodology Between $13 and $15.99 29% 24% 27% 26% 19% changes, Between $16 and $19.99 11% 11% 23% 23% 27%  significances Between $20 and $24.99 5% 6% 16% 10% 21% for this slide $25 or more 4% 4% 7% 5% 11% are calculated $13.46 $13.38 $16.20 $15.16 $17.61 against 2017 Average spend ($) ($13.08) ($13.05) ($16.21) ($15.12) ($17.61)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 78 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

While spend on wine has remained stable since 2017, wine consumption frequency among Manitoba regular wine drinkers has experienced some changes Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Manitoba (n>=257) ▪ The proportion of regular wine With an A relaxing drink With a more At a party / drinkers in Manitoba consuming informal meal out at the end formal dinner in celebration / wine as a relaxing drink out at in a pub / bar / of the day a restaurant big night out the end of the day significantly restaurant increased since 2017 Every day / most days 5%  1% 1% 0%

2-5 times per week 8% 2% 1% 2%  ▪ The regular wine drinking About once per week 11% 6% 7% 3% population in Manitoba is 1-3 times per month 23% 27% 27% 25% drinking less frequently in formal Less than once per month 38% 58% 61% 64%  I don't drink wine on this type of occasion 16% 7% 3%  5% occasions, with the proportion of regular wine drinkers affirming to drink wine at parties or Spend on wine in the on-premise celebrations out less than once % who typically spend the following amount on a bottle of wine on each occasion per month significantly increasing Base = All regular wine drinkers in Manitoba (n>=257) since 2017 With an A relaxing drink With a more At a party / informal meal out at the end formal dinner in celebration / in a pub / bar / of the day a restaurant big night out restaurant Less than $15 38% 29% 17% 25% Between $15 and $19.99 28% 20% 19% 23% Due to Between $20 and $24.99 16% 25% 26% 24% methodology Between $25 and $29.99 8% 13% 18% 13% changes, Between $30 and $39.99 7% 10% 15% 9% significances Between $40 and $49.99 1% 2% 4% 2% for this slide $50 or more 1% 1% 3% 2% are calculated $19.67 $21.57 $24.55 $22.27 Average spend ($) against 2017 ($19.76) ($21.81) ($24.75) ($23.32)

 /  : statistically significantly higher / lower than 2017 at a 95% confidence level 79 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

Australian brand Yellow Tail dominates the charts for both awareness and purchase incidence in Manitoba Top 3 most powerful brands in Manitoba:

1 Yellow Tail - 96.9 Brands you may find them drinking:

2 Barefoot - 90.0 Indexes calculated based on a combination of consumer reported 3 Jackson-Triggs - 83.4 brand health measures. For more information, please refer to Top 15 brands by awareness page 89 and respective purchase level Base = All regular wine drinkers in Manitoba (n>=57) Yellow Tail 27% 69% Naked Grape 12% 66% Sawmill Creek 14% 65% Barefoot 25% 64% ▪ The proportion of Manitoba regular wine drinkers who purchased Jacob's Creek 14% 63% Barefoot has significantly increased since 2015; the Californian Jackson-Triggs 18% 59% brand is now in the top two for purchase incidence

Gallo Family Vineyards 9% 51%  ▪ Apothic, Yellow Tail and Barefoot score the best in converting Copper Moon 17% 48% awares into purchasers; the three brands are also the top three Peller Estates 9% 46% brands by affinity PE French Cross 3% 43% Apothic 20% 43% Awareness ▪ Apothic is also the top brand by recommendation, followed by

Woodbridge 5% 42%  Purchase Wolf Bass and Yellow Tail Hochtaler 5% 41% Wayne Gretzky Estates 4% 41%

Mission Hill 5% 40% 

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 80 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

81 WINE MARKET SUMMARY: NOVA SCOTIA Nova Scotia regular wine drinkers are the oldest out of all the analyzed provinces and are more likely to be female; with the highest consumption frequency and average spend on wine, their confidence and knowledge indexes are above national average

Total Frequency of Wine Consumption H G I H

FREQUENCY LOW

Typically spending $14 - $19.99 retail and (MB) (AB) (QC) (BC) (ON) (NS) $21 - $23.99 in the on-premise

Wine Knowledge Index H G I H

KNOWLEDGE LOW

new styles of wine LOW annual household income when compared with the other analyzed provinces (MB) (QC) (AB) (NS) (BC) (ON) 82 Source: Wine Intelligence, Vinitrac® Canada, 2019 (n=7,482) Canadian regular wine drinkers DEMOGRAPHICS

The advanced age of Nova Scotia regular wine drinkers and the high frequency of wine consumption aligns with the significant increase of the Mainstream Matures segment

Age Gender 14% 24% 65 and over 27% 55-64 22% 45-54 24% 15% 35-44 16% 43% 57% 16% 25-34 13% 51% 49% 8% 19-24 10% 9% Legal Drinking 2015 2019 Age: 19 Total household income (before tax) Portraits 2015 2019 Under $20,000 10% 6% 2017 2019 $20,000 - $29,999 3% 7% Engaged Explorers 11% 11%

$30,000 - $39,999 10% 16%  Enthusiastic Treaters 10% 8% $40,000 - $49,999 22% 9% Mainstream Matures 7% 20%  $50,000 - $59,999 0% 11%  Social Newbies 11% 21% $60,000 - $69,999 9% 7% Contented Occasionals 28% 18% $70,000 - $79,999 9% 6% Kitchen Casuals 33% 22% $80,000 - $99,999 10% 11% $100,000 - $119,999 8% 6% For more information on Portraits $120,000+ 14% 15% groups, please refer to page 96 Prefer not to answer 4% 7%

(%): 2015  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 83 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers CONSUMPTION FREQUENCY, REPERTOIRE AND VARIETALS

The proportion of regular wine drinkers in Nova Scotia consuming a variety of white varietals as well as drinking wine about once a week has significantly decreased since 2015 Nova Scotia regular wine drinkers’ alcoholic beverage Wine consumption frequency repertoire % of regular wine drinkers in Nova Scotia who usually drink wine at the following frequency % of regular wine drinkers in Nova Scotia who have drunk the Base = All regular wine drinkers in Nova Scotia (n>=49) following beverages in the past 12 months 2015 2019 Base = All regular wine drinkers in Nova Scotia (n>=49) Most days / every day 6% 10% 2-5 times a week 29% 37%

White wine About once a week 43% 25%  Red wine 1-3 times a month 22% 29% Beer Rum Red and white varietal consumption Vodka % of regular wine drinkers in Nova Scotia who have drunk the following varietals in the Whisky / Whiskey past 6 months Craft Beer 83%  Base = All regular wine drinkers in Nova Scotia (n>=49) Pre-mixed beverages Cider

Liqueurs Pinot Grigio / Pinot Gris Liqueurs 50% Merlot 51% Cider  79% Chardonnay 48% Pinot Noir 40%

Sauvignon Blanc Craft beer 37%  Cabernet Sauvignon 36% Riesling Whisky / Whiskey32% Shiraz / Syrah 30%

Moscato 25% Red blend 20% 29% Vodka  White blend 22% Malbec 18% 70% 33% Rum 34% Chenin Blanc 9% Zinfandel 10% 38% Gewürztraminer Beer7% Tempranillo 10% Sémillon Red6% wine Sangiovese 8% 44% Verdejo White5% wine Baco Noir 8% 47%

Viognier 3% Pinotage 8% 49%  Colombard 3% Cabernet Franc 7% Torrontés 2% Garnacha 7% Grüner Veltliner 2% Grenache 6% Albariño 2% Carménère 6% Sizing 100%Sizing 100%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 84 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers INVOLVEMENT AND RELATIONSHIP WITH WINE

The regular wine drinking population in Nova Scotia grew more confident and knowledgeable about wines, according to the increase in both the knowledge and confidence index since 2017 Wine knowledge and confidence index Involvement and perceived expertise in wine Wine knowledge index (0-100) is calculated based on consumer-reported % who 'agree' or 'strongly agree' with the following statements

awareness of wine-producing countries, wine-growing regions and wine Base = All regular wine drinkers in Nova Scotia (n>=49) brands / Wine confidence index (0-100) is calculated based on the extent to  which consumers feel competent about their wine knowledge Drinking wine gives me pleasure 77% Base = All regular wine drinkers in Nova Scotia (n>=49) I always look for the best quality wines I can get for my budget 76%

Deciding which wine to buy is an important decision 66% Index 2017 Index change 2019 Generally speaking, wine is reasonably priced 60%

I like to take my time when I purchase a bottle of wine 53% I have a strong interest in wine 49% Knowledge 31.2 +4.6 35.8 Wine is important to me in my lifestyle 40% I feel competent about my knowledge of wine 39%  Compared to others, I know less about the subject of wine 38% Confidence 46.6 +5.6 52.2 Generally speaking, wine is an expensive drink 33% I don’t understand much about wine 30% 100%

Attitudes towards wine ▪ The proportion of regular wine drinkers in Nova Scotia paying % who agree with the following statements about wine attention to budget when purchasing wine has significantly Base = All regular wine drinkers in Nova Scotia (n>=49) increased since 2015 I enjoy trying new and different styles ▪ The proportion of regular wine drinkers in Nova Scotia holding a of wine on a strong interest in wine, considering wine important to their 38% regular basis lifestyle and finding wine-drinking pleasurable has significantly I don't mind what I decreased since 2015 50% buy so long as the price is right ▪ Regular wine drinkers in Nova Scotia are quite adventurous when it comes to wine, with half of them enjoying trying new and different I know what I like styles of wine on a regular basis and I tend to stick to what I know 12%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 85 Source: Wine Intelligence, Vinitrac® Canada, 2015, 2017 and 2019 (n>=2,001) Canadian regular wine drinkers COUNTRY AND REGION OF ORIGIN

Canada dominates the rankings for both consumption and awareness among regular wine drinkers in Nova Scotia

▪ Being a wine-producing province, it is not ▪ Although Californian Napa Valley is the top surprising that a high proportion of regular wine wine-producing region by consumption, the drinkers from Nova Scotia have bought wine proportion of regular wine drinkers from Nova from Canada in the past 6 months Scotia who have purchased wine from there in the past 3 months has significantly decreased ▪ Canada as a wine-producing country has the since 2015 highest conversion rate (86%), followed by 100% Australia (47%) and California (46%) ▪ Although not scoring excellently in awareness and consumption, the Portuguese region of Tejo ▪ No significant changes occurred in country of holds the highest conversion rate, followed by origin consumption since 2015 Niagara Peninsula and Hawke’s Bay

Country of origin consumption: Top five Region of origin consumption: Top five % who have drunk from the following countries of origin in the past 6 months % who have drunk from the following regions of origin in the past 3 months Base = All regular wine drinkers in Nova Scotia (n>=49) Base = All regular wine drinkers in Nova Scotia (n>=49)

20%  17% 14% 13% 13%

Canada Australia California France Italy 76% 38% 38% 35% 33% Napa Valley Niagara Bordeaux Tuscany Champagne sizing Peninsula

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 86 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers WINE-BUYING CHANNELS, DIRECT TO CONSUMER AND TAXES

Government-controlled liquor stores remain the top one wine-buying channel among regular wine drinkers in Nova Scotia

▪ Similarly to other provinces, a significantly higher proportion of regular wine drinkers in Nova Scotia have purchased wine from privatized liquor stores since 2015

▪ Wine stores attached to grocery stores are not as popular anymore, with a significantly DTC allowed? YES from wineries, NO lower proportion of the regular wine drinking population of Nova Scotia purchasing wine from retailers from there Wine available at: provincially owned ▪ Online wine purchase is not very popular among Nova Scotia regular wine drinkers, with liquor-store outlets. Some beer, wine only 4% of them having purchased wine online in the past 6 months and spirits are available at some private stores

Wine-buying channel usage % who have bought wine from the following channels in the past 6 months Base = All regular wine drinkers in Nova Scotia (n>=49) 2015 2019 Tax on wine? YES In a government-controlled liquor store 87% 76% In a privatized liquor store 2% 15%  Wine basic tax: all alcoholic beverages From a make your own wine store 4% 11% in Nova Scotia are taxed based on the type of alcohol, how much is produced,

In a private wine store 8% 11%  and alcohol % In a wine store attached to a grocery store 24% 11% From the winery direct 12% 10% Alcohol in Nova Scotia is generally more In a beer and wine store 8% 8% expensive than in other provinces due to higher taxes From Duty Free 8% 6% In a grocery store n/a 5% In a club store 0% 5% On the internet 0% 4% Through mail order 0% 3% In a super store 0% 1% www.novascotia.ca  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 87 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers OFF-PREMISE FREQUENCY AND SPEND

Although frequency of wine consumption in the off-premise remains stable, spend on wine experienced some changes, especially when buying wine as a gift Frequency of wine consumption in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Nova Scotia (n>=49) ▪ The average spend for a bottle of A relaxing drink With an With a more At a party / wine bought as a gift by regular at the end of informal meal formal dinner celebration at wine drinkers in Nova Scotia the day at home at home party at home home significantly increased since 2017

Every day / most days 11% 8% 0% 2% ▪ The proportion of regular wine 2-5 times per week 22% 13% 4% 2% drinkers in Nova Scotia spending About once per week 23% 20% 11% 13% between $6 and $7.99 on wine as a 1-3 times per month 21% 29% 22% 27% Less than once per month 13% 19% 50% 44% relaxing drink at the end of the day I don't drink wine on this type of occasion 10% 12% 13% 11% and more than $25 for wine with an informal meal at home has significantly increased since 2017 Spend on wine in the off-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Nova Scotia (n>=49) 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 else the day at home at home party at home home

Less than $6 3% 3% 2% 3% 0%  Between $6 and $7.99 4%  3% 2% 1% 0% Between $8 and $9.99 6% 8% 3% 5% 1% Due to Between $10 and $12.99 26% 24% 11% 17% 7% methodology Between $13 and $15.99 24% 26% 26% 27% 24% changes, Between $16 and $19.99 21% 19% 23% 25% 26% significances Between $20 and $24.99 13% 12% 24% 16% 24% for this slide $25 or more 3% 5%  9% 7% 18% are calculated $14.81 $15.04 $17.48 $16.46 $19.28  against 2017 Average spend ($) ($14.29) ($14.34) ($17.01) ($15.90) ($17.72)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 88 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers ON-PREMISE FREQUENCY AND SPEND

Although spend across all on-premise occasions remained quite stable, frequency of wine consumption experienced some significant changes since 2017 Frequency of wine consumption in the on-premise % who typically spend the following amount on a bottle of wine on each occasion Base = All regular wine drinkers in Nova Scotia (n>=49) ▪ The proportion of regular wine With an A relaxing drink With a more At a party / drinkers in Nova Scotia consuming informal meal out at the end formal dinner in celebration / wine as a relaxing drink out at the in a pub / bar / of the day a restaurant big night out end of the day and at a party, restaurant celebration or big night out 1-3 Every day / most days 3% 0% 1% 1% times a month significantly

2-5 times per week 11% 4% 3% 5%

decreased since 2017

 About once per week 17%  12% 10% 6% 1-3 times per month 15% 26% 25% 16% ▪ Less than once per month 40%  49% 54% 65%  Accordingly, the proportion of I don't drink wine on this type of occasion 13% 9% 6% 7% regular wine drinkers in Nova Scotia consuming wine as a relaxing drink out at the end of the Spend on wine in the on-premise day and at a party, celebration or % who typically spend the following amount on a bottle of wine on each occasion big night out less than once per Base = All regular wine drinkers in Nova Scotia (n>=49) month significantly increased since With an 2017 A relaxing drink With a more At a party / informal meal out at the end formal dinner in celebration / in a pub / bar / of the day a restaurant big night out restaurant Less than $15 31% 30% 17% 20% Between $15 and $19.99 25% 19% 18% 24% Between $20 and $24.99 20% 21% 20% 17% Due to Between $25 and $29.99 14% 15% 19% 21% methodology changes, Between $30 and $39.99 6% 12% 19% 11% significances Between $40 and $49.99 3% 1% 4% 2% for this slide $50 or more 2% 2% 4% 4% are calculated $21.33 $22.22 $25.55 $23.79 Average spend ($) against 2017 ($20.30) ($21.00) ($24.34) ($23.32)

 /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 89 Source: Wine Intelligence, Vinitrac® Canada, 2017 and 2019 (n>=5,326) Canadian regular wine drinkers BRAND HEALTH

Australian brand Yellow Tail dominates the rankings in Nova Scotia, being the top brand for both awareness and purchase incidence Top 3 most powerful brands in Nova Scotia: 1 Yellow Tail - 92.1 Brands you may find them drinking:

2 Barefoot - 67.2 Indexes calculated based on a combination of consumer reported 3 Jacob’s Creek –62.3 brand health measures. For more information, please refer to Top 15 brands by awareness page 89 and respective purchase level Base = All regular wine drinkers in Nova Scotia (n>=49) Yellow Tail 39% 81% Jacob's Creek 14% 66% Sawmill Creek 12% 65% Barefoot 17% 59% ▪ The proportion of regular wine drinkers in Nova Scotia aware of Peller Estates 10% 57% Barefoot significantly rose since 2015 Hochtaler 9% 56% PE French Cross 8% 55% ▪ Yellow Tail, Apothic and Carlo Botter are the brands with the Jackson-Triggs 15% 53% highest conversion rates Gallo Family Vineyards 10% 51% Naked Grape 10% 50% ▪ Carlo Botter, XOXO and Ménage à Trois are the top three brands Carlo Rossi 4% 46% Awareness by recommendation Woodbridge 6% 46% Purchase Oyster Bay 8% 45% Lindeman's 9% 43% Wolf Blass 11% 42%  /  : statistically significantly higher / lower than previous wave(s) at a 95% confidence level 90 Source: Wine Intelligence, Vinitrac® Canada, 2015 and 2019 (n>=2,001) Canadian regular wine drinkers CONTENTS

91 CANADA WINE PRODUCTION: KEY FACTS

Canada is a federation 28% of Canada composed of 10 provinces still wine volumes and 3 territories are domestic

Canada is the leading global producer of Icewine, with an average annual production Only 4 provinces are of one million litres produced across the country officially recognized as wine-producing regions

Nunavut Northwest There are 800 Yukon Territories licenced wineries in Canada

Alberta Manitoba Newfoundland and Labrador Canada is ranked British 35th in the world in Columbia Québec Ontario Prince Edward export value Island

Saskatchewan

New Nova Brunswick Scotia IWSR 2018 ©Copyright 2019 – The IWSR 92 Source: Canadian Vintners, Wines of Canada CANADA WINE-PRODUCING PROVINCES All wine-producing regions in Canada are located in the provinces of British Columbia, Ontario, Québec and Nova Scotia

British Columbia Québec is home is home to 9 to seven different wine different wine regions, one of regions, including them being the Eastern well-known Townships and Okanagan Valley Montérégie

Ontario is home to five different wine regions, British including Prince Columbia Québec Nova Scotia is Edward County Ontario home to four and the well- different wine known Niagara regions, Peninsula including Nova Annapolis Scotia Valley 93 Source: Wines of British Columbia, Wine Country Ontario, Vins du Québec, Wines of Nova Scotia CANADA WINE-PRODUCING PROVINCES

British Nova Ontario Québec Columbia Scotia

280+ 180+ 70+ 16 wineries wineries wineries wineries

Mediterranean / Continental with Humid continental, From maritime coastal climate coastal influence, St. Lawrence river coastal (the islands) with temperatures moderated by moderates, but to continental moderated by the three of the Great winters are very (inland) Bay of Fundy and Lakes long and cold Minas Basin

The province has More than 4,120 More than 6,800 The province has approximately 360 hectares (10,200 hectares (17,000 377 hectares (930 hectares (890 acres) acres) of vines acres) of vines acres) of vines of vines Common varietals: Common varietals: Common varietals: Common varietals: Pinot Gris, Chardonnay, Pinot Gris, Chardonnay, Cayuga, Eona, Seyval L’Acadie Blanc, Seyval Gewürztraminer, Gewürztraminer, blanc, Frontenac Gris, Blanc, Vidal, New York Riesling, Sauvignon Riesling, Sauvignon Frontenac Blanc Vidal, Muscat, Chardonnay, Blanc, Pinot Blanc, Blanc, Vidal Blanc, Geisenheim Chancellor, Ortega, Riesling, Lucie Viognier, Merlot, Pinot Cabernet Franc, Pinot de Chaunac, Maréchal Kuhlmann, Baco Noir, Noir, Cabernet Noir, Gamay Noir, Foch, Sainte-Crox, Baco Marechal Foch and Sauvignon, Cabernet Merlot, Cabernet Noir, Seyval Noir, Leon Millot Franc, Syrah, Gamay Sauvignon, Baco Noir Cabernet Franc Noir 94 Source: Wines of British Columbia, Wine Country Ontario, Vins du Québec, Wines of Nova Scotia, Wine Traveler DIRECT TO CONSUMER SHIPPING

Laws that regulate direct Due to an old federal law (from the to consumer prohibition era) called the Importation of Intoxicating Liquors Act, the shipping of any shipping alcohol between provinces in Canada was change based previously prohibited. However, in June on provincial 2019, the federal government repealed this laws prohibition entirely allowing the interprovincial transport or shipment of alcohol across provincial borders to the extent that the receiving province also permits such transactions

Nunavut Northwest Yukon Territories

British Columbia Manitoba Alberta Newfoundland and Labrador DTC shipping available Québec Ontario DTC shipping partially available Prince Edward Saskatchewan Island DTC shipping prohibited New Nova Brunswick Scotia 95 Source: Budget Implementation Act 2019 CANADA PORTRAITS OVERVIEW 2018

Engaged Enthusiastic Mainstream Contented Kitchen Social Newbies Explorers Treaters Matures Occasionals Casuals The youngest and The oldest segment, Younger wine The least frequent Infrequent, mid- Younger to mid- most frequent wine they are frequent drinkers, who drink wine drinkers and aged to older wine aged, confident wine Who are drinking group with wine drinkers who wine fairly an older segment, drinkers who stick drinkers who enjoy the strongest on- have strong wine infrequently and and like to stick to to the narrow they? discovering new premise wine drinking knowledge due to are inexperienced the brands they range of wines wines presence experience in the category know and like they know They have a strong They enjoy drinking Wine is enjoyed as Drink wine very Show little interest Wine is important to interest in the wine at home in the part of a wider infrequently in both in wine, with it their lifestyle so they Why do they category, yet their evening, often with social setting, and off and on-premise, being a treat at the are willing to invest age means they lack dinner, making an they enjoy with little interest end of the day, but drink wine? time and money in some confidence in effort to pair wine opportunities to try in learning more only a few times a the category their knowledge with food new wines about wine month Government- Likely to drink wine Have the lowest Are purchasing wine The most frequent controlled stores are out with friends in Drink wine at home number of through more wine drinkers in the seen as offering the bars and pubs more with a meal consumers who specialized channels on-premise, with most variety, most Where? often than at home occasionally and drink wine in the and are the highest wine drinking drinking is still at and are buying only drink out at on-premise, being spending in the on- typically centring home, though on- through most once a month one of the lowest premise around dining premise is now part convenience stores spenders of the mix Have a relatively Wine is their drink of They have a taste for Have quite a varied Their overall Tend to stick to the narrow repertoire choice, and they rosé wine more than alcoholic beverage alcoholic beverage styles of wine and of varietals and What do they enjoy experimenting other segments and repertoire, and are repertoire is not brands they know country of origin, with lesser known also enjoy sparkling showing strong hugely diverse, and they like, with a drink? they tend to stick to varietals and wine for more social interest in Canadian they rely heavily on narrow range to styles of wine they countries of origin occasions wines recommendations choose from know and trust 96 Source: Wine Intelligence, Vinitrac® Canada, Jul’17 Oct’17 and Mar’18 (n=4,321) Canadian regular wine drinkers WINE INTELLIGENCE GLOBAL BRAND INDEX

2019 Report

The Wine Intelligence Global 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 – Wine Brand Power 2019 by market, 20 markets in total, which includes the top 15 most powerful brands in that market as well as key findings from that market

Interested in the Global Wine Brand – The key principles of delivering brand power and an explanation of Power Index 2019 report? Click here for the Global Wine Brand Power Index calculation more information 97 WINE BRAND POWER INDEX 2019

Brand health measures included in the Wine Brand Power Index

% of all wine drinkers who have heard of each brand Awareness (when shown a list of brand names with logos) Awareness index Base = All regular wine drinkers

% of all wine drinkers who have purchased each brand Purchase in the past 3 months Base = All regular wine drinkers

% of those aware of each wine brand who have Conversion purchased that brand within the past 3 months Purchase index Base = All those aware of each individual brand Brand Power % of those who would be likely to consider buying the index Consideration following brands Base = All those aware of each individual brand

% of those aware of each brand who believe the brand Affinity is ‘are 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 others Base = All those aware of each individual brand

98 CONTENTS

99 Research methodology

Vinitrac©

▪ The data for this report was collected in Canada in March & October 2015, March, April, July & October 2017 and January, 2015 2017 2019 March, May, July & October 2019 n= 2,001 5,326 7,482 Gender Male 50% 52% 50% ▪ Data was gathered via Wine Intelligence’s Vinitrac® online Female 50% 48% 50% survey: Total 100% 100% 100% Age 19-24 8% 11% 9% 25-34 18% 18% 20% ▪ 2,001 Canadian regular wine drinkers (2015) 35-44 16% 18% 22% ▪ 5,326 Canadian regular wine drinkers (2017) 45-54 20% 17% 13% ▪ 7,482 Canadian regular wine drinkers (2019) 55-64 18% 18% 18% 65 and over 20% 18% 18% ▪ Respondents were screened to ensure that they drink wine at Total 100% 100% 100% least once a month; drink red, white or rosé wine; and buy Provinces Ontario 40% 39% 38% wine in the off-premise or in the on-premise British Columbia 16% 12% 13% Alberta 7% 9% 11% Québec 27% 28% 26% ▪ Invalid respondents (those who sped through the survey or Manitoba 3% 5% 4% gave inconsistent answers to selected questions) were Nova Scotia 2% 2% 2% removed before analysis Other provinces 5% 5% 6% Total 100% 100% 100% ▪ The data is representative of Canadian regular wine drinkers Source: Wine Intelligence, Vinitrac® Canada, 2015 (n=2,001), 2017 in terms of gender, age and Canada Provinces (n=5,326), 2019 (n=7,482) Canadian regular wine drinkers

▪ The distribution of the sample is shown in the table

100 Research methodology

Quantitive

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

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