Trade Research Survey Results RB Presentation

2012 Rías Baixas Albariño Trade Research Results

January 2012 Introduction

Two- prong research Quantitative Qualitative “Vintrospective”

Results presented are a snapshot of findings

NB: The results of this study should be considered directional, as they are based on a relatively small sample size and a combination of participant experiences and opinions About Wine Opinions Top internet-based research organization focusing on attitudes, behaviors and taste preferences of U.S. wine drinkers, including consumers and trade

Maintains one of the largest online panels of U.S. wine trade

Clients include: Objectives

Identify trade attitudes toward Rías Baixas Albariño

Measure Rías Baixas Albariño against other competitive wine regions Quality and value Sales and pricing Promotional activities

Gauge awareness of region and wine

Identify key selling points Methodology: Quantitative Survey

310 total participants; 257 completions (following disqualifications) Questions analyzed by industry tier and market

Step #1: Quantitative Methodology: Vintrospective

Online discussion group over 3-day period where respondents explored key issues 9 participants from Wine Opinions trade panel Participants have in-depth experience selling or representing Rías Baixas Albariño

Step #2: Vintrospective Respondent Profile: Quantitative 67% male 33% female Respondent Profile: Quantitative

13% Millennials 27% Gen X 55% Baby Boomers 5% 66+ Respondent Profile: Quantitative

Industry Breakdown: Respondent Profile: Vintrospective General Thoughts about Spain General Thoughts about Spain

Spain is a major player in the food & wine industry General Thoughts about Spain

Spain is a major player in the food & wine industry

“Spain certainly is on the consciousness of the wine buying public for quality, value and food- friendly practicality.” General Thoughts about Spain

Spain is a major player in the food & wine industry Spanish wines are a good value General Thoughts about Spain

Spain is a major player in the food & wine industry Spanish wines are a good value

“As more and more consumers understand that they can get great wines at a good value from Spain, they are more likely to try different varietals from there.” General Thoughts about Spain

Spain is a major player in the food & wine industry Spanish wines are a good value Consumers associate red wine with Spain more so than white wine General Thoughts about Spain

Spain is a major player in the food & wine industry Spanish wines are a good value Consumers associate red wine with Spain more so than white wine

“…Spain has a good reputation for red wines, and most consumers are interested in the ‘new discovery’ of white wines.” Quality & Value Quality & Value

Rías Baixas Albariño consistently ranked as “excellent” or “good” in quality and value as compared to other white wine competitors Quality & Value

Rías Baixas Albariño consistently ranked as “excellent” or “good” in quality and value as compared to other white wine competitors

“I think consumers do associate Albariño with Spain, and I think it is extremely positive due to the quality and price points of Rías Baixas Albariño.” Quality Ratings Quality Ratings for White Wines Costing Under $20

No Region/Type Excellent Good Fair Poor opinion NZ Sauvignon Blanc 47% 42% 9% 0% 1% Austria Gruner Veltliner 39% 44% 4% 0% 12% Chile Sauvignon Blanc 15% 46% 28% 5% 5% Rías Baixas Albariño 50% 34% 4% 0% 9% California Sauvignon Blanc 21% 57% 18% 3% 0% California Albarino 6% 21% 28% 6% 37% Argentina Torrontes 20% 60% 12% 0% 6% Italy Pinot Grigio 17% 40% 35% 7% 1% Washington Riesling 32% 48% 13% 1% 5% Value Ratings Value Ratings for White Wines Costing Under $20

No Region/Type Excellent Good Fair Poor opinion NZ Sauvignon Blanc 27% 46% 22% 4% 1% Austria Gruner Veltliner 25% 38% 22% 2% 11% Chile Sauvignon Blanc 35% 41% 14% 3% 5% Rías Baixas Albariño 29% 44% 13% 2% 10% California Sauvignon Blanc 8% 41% 39% 10% 1% California Albarino 3% 15% 30% 11% 37% Argentina Torrontes 35% 43% 13% 0% 7% Italy Pinot Grigio 9% 47% 32% 9% 3% Washington Riesling 24% 46% 20% 3% 6% Quality & Value

Rías Baixas Albariño consistently ranked as “excellent” or “good” in quality and value as compared to other white wine competitors In terms of value, Torrontes from Argentina and Sauvignon Blanc from Chile biggest competition at under $20 price point Quality & Value

“Albariño has many of the minerality and freshness qualities of Sauvignon Blanc or Gruner Veltliner, along with the body of Chardonnay and the fruity characteristics of Riesling.” Quality & Value

“With wine, and a nation that as a whole is still learning about it and getting comfortable with it, predictability is good. And it’s specifically good for a varietal not everyone is 100% aware of yet.” Quality & Value

“I agree that Rías Baixas Albariños are consistent and that is a great selling point.” Sales & Pricing Sales & Pricing

Among Spanish regions, Rías Baixas showed more significant sales growth than other competing regions Sales & Pricing Among Spanish regions, Rías Baixas showed more significant sales growth than other competing regions

“It [Albariño] is already one of our top wines by volume for our entire portfolio of over 100 wines from 30+ wineries.” Sales & Pricing Sales of Rías Baixas Albariño vs. Competitor Wines

Sales up Region Sales up a little No change Sales declined significantly Rioja 15% 54% 25% 7% Rueda 17% 41% 35% 7% Jerez 5% 31% 46% 18% Ribera del Duero 18% 43% 31% 8% Rías Baixas 24% 39% 33% 4% Navarra 7% 35% 49% 9% Castilla La Mancha 5% 43% 48% 5% Sales & Pricing

Among Spanish regions, Rías Baixas showed more significant sales growth than other competing regions $10-$20 retail price category appropriate for Rías Baixas Albariño Sales & Pricing

Among Spanish regions, Rías Baixas showed more significant sales growth than other competing regions $10-$20 retail price category appropriate for Rías Baixas Albariño

“…if there were some [Albariños] at an acceptable quality at that [$10 or less] price, you’d reach a whole new consumer base, many of which would be willing to try the next level up.” Sales & Pricing

Among Spanish regions, Rías Baixas showed more significant sales growth than other competing regions $10-$20 retail price category appropriate for Rías Baixas Albariño $8-$12 by-the-glass price category appropriate for Rías Baixas Albariño Rías Baixas Albariño is a steady seller year-round; not just in summer months Flavor Profile & Food Pairings Flavor Profile Food Pairings

Food pairings seen as key selling point both on- and off- premise Food Pairings

Food pairings seen as key selling point both on- and off- premise “Food pairing is becoming more and more important in the retail sector as the American consumer is evolving from the ‘drinking wine for a feeling’ to ‘pairing wine with a meal to enhance both.’” Food Pairings

Food pairings seen as key selling point both on- and off- premise Main attraction to Albariño is food-friendliness Food Pairings

Food pairings seen as key selling point both on- and off- premise Main attraction to Albariño is food-friendliness

“Albariño is great enjoyed on its own but wow, it just POPS when paired properly and consumers really react to this.” Food Pairings

Food pairings seen as key selling point both on- and off- premise Main attraction to Albariño is food-friendliness Seafood, in general, ranked as top pairing with Albariño Food Pairings Food Pairings

Food pairings seen as key selling point both on- and off- premise Main attraction to Albariño is food-friendliness Seafood, in general, ranked as top pairing with Albariño Continues to be seen as a versatile wine Food Pairings

“I suggest that [consumers] try an Albariño to have not just with seafood, but with whatever food they think a white wine would work well with.” Consumer Awareness Consumer Awareness

Overall, there is a lack of consumer awareness about Rías Baixas Albariño but knowledge is trending upwards Consumer Awareness

Overall, there is a lack of consumer awareness about Rías Baixas Albariño but knowledge is trending upwards

“Name recognition of Albariño is on the rise for sure.” Consumer Awareness

Overall, there is a lack of consumer awareness about Rías Baixas Albariño but knowledge is trending upwards Albariño is more closely associated with Spain and Galicia than Rías Baixas Consumer Awareness

Overall, there is a lack of consumer awareness about Rías Baixas Albariño but knowledge is trending upwards Albariño is more closely associated with Spain and Galicia than Rías Baixas

“[It is associated] with Spain, yes. I think expecting the average wine consumer to even have knowledge of Rías Baixas is a bit optimistic.” Consumer Awareness

“…a majority are familiar enough with Spanish wine regions to associate it with Rías Baixas (although most cannot pronounce it!)” Raising Albariño Profile in the Marketplace Raising Albariño Profile in the Marketplace

Tasting and education at all levels key to promoting Rías Baixas Albariño Raising Albariño Profile in the Marketplace

Tasting and education at all levels key to promoting Rías Baixas Albariño “It doesn’t matter how much POS you put in a store or restaurant, it “…for us, it’s more is always necessary for people to about hand selling try the wine.” and education.” Raising Albariño Profile in the Marketplace

Tasting and education at all levels key to promoting Rías Baixas Albariño Promote year-round consumption and food pairings Raising Albariño Profile in the Marketplace

Tasting and education at all levels key to promoting Rías Baixas Albariño Promote year-round consumption and food pairings

“For those customers who buy “Another thought is white wine all year round, to give some winter Albariño remains a good seller...” food pairing suggestions.” Raising Albariño Profile in the Marketplace

“I promote it as an alternative to other dry white wines and encourage people to discover something different.” Raising Albariño Profile in the Marketplace

Tasting and education at all levels key to promoting Rías Baixas Albariño Promote year-round consumption and food pairings Suggest as alternative to more well-known white varietals (i.e. Sauvignon Blanc, Riesling) Rías Baixas Albariño viewed as a more “adventurous” white wine compared to other crisp whites; target “trendsetters” Raising Albariño Profile in the Marketplace

Overall, respondents were excited about the Albariño Explorers Club idea and wanted to learn more Albariño Explorers Club

Overall, respondents were excited about the Albariño Explorers Club idea and wanted to learn more

“Love, love, love the Albariño “The Explorers Club Explorers Club. Very cool and is an interesting beguiling.” idea. I’d like to know more about that.” Albariño Explorers Club

Overall, respondents were excited about the Albariño Explorers Club idea and wanted to learn more Graphically, participants found the design “eye-catching” and closely related to seafood Albariño Explorers Club

Overall, respondents were excited about the Albariño Explorers Club idea and wanted to learn more Graphically, participants found the design “eye-catching” and closely related to seafood

“It definitely sells the seafood pairing aspect, and the colors are something that would catch the eye.” Albariño Explorers Club

“…It’s all intertwined. Events, interesting POS, contests, website, social media, social media, social media.” Other Insights

DO Certification Consumers are generally unaware of what the certification label means More education needed to equate label with quality Screw Caps Generally, screw caps are no longer equated with “cheap wine” Younger consumers favor screw cap closures Albariño seen as perfect for screw caps In the long run, screw cap closures for Albariño will help sales Key Learnings

Food-friendly and easy to drink, consistent in flavor and quality

Albariño name recognition on rise Associated with Spain Continued repetition linking Albariño with Rías Baixas

Albariño outsells other Spanish whites

Emphasizing food pairings a must Key Learnings: Opportunities

More tasting and educational activities

Heavier grassroots promotion and social media

Gain market share in general white wine category Q&A