1© Wine Intelligence 2013

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Lulie Halstead, CEO25th March 2014

America’s

new wine

drinkers

2

Wine drinkers in the US

224 million adults in the USA1

Sources: 1 Adults aged 21+, US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey 2 Wine=still light wine (red, white, rosé) 3 Wine Intelligence, Vinitrac® USA Oct 2013, n=3224 US regular wine drinkers / Wine Intelligence, Vinitrac® USA Nov 2013, n=655 US Hispanics 21+4 Wine Intelligence online calibration study with YouGov, Sep ‘11, n=1,995 US adults

90 million regular wine

drinkers in the USA3

145 million wine drinkers in the USA2&4

3

Looking at the past…

90 million regular wine

drinkers in the USA

TODAY…

55 million regular wine

drinkers in the USA

10 years ago…

Sources: Wine Intelligence, Vinitrac® USA 2004 and 2014

4

What else do we know about US market?

Per capita consumption

12.3 Lstill light wine

per adult

TODAY…

Per capita consumption

10.5 Lstill light wine

per adult in 2003

10 years ago…

310m+9L cases

239mthousand 9L cases

in 2003

Sources: ©Copyright 2013 - The IWSR

5

Millennial wine drinkers

90 million regular wine

drinkers in the USA

28.8 million

Millennial regular wine drinkers

32% of regular wine drinkers are born

1980-2000

Source: Wine Intelligence, Vinitrac® USA Oct 2013, n=3224 US regular wine drinkers

6

Millennial wine drinkers: Who are they?

We rule the world

We’re the millennial generation, we think the

world belongs to us.Male, Millennial, Delaware

7

246 million 260 million311 million

35 million (13% of the population)

52 million(17% of the population)

127 million(29% of the population)

2000 2011 2050

Hispanics

Non-Hispanics

Source: US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey

Hispanic population and growth in the USA

Why Hispanics matter?

8

Hispanics are a considerably younger population in the USA

Source: US Census Bureau / Pew Hispanic Center tabulations of 2011 American Community Survey

85 years and over

80 to 84 years

75 to 79 years

70 to 74 years

65 to 69 years

60 to 64 years

55 to 59 years

50 to 54 years

45 to 49 years

40 to 44 years

35 to 39 years

30 to 34 years

25 to 29 years

20 to 24 years

15 to 19 years

10 to 14 years

5 to 9 years

Under 5 years

0%

1%

1%

1%

2%

3%

4%

5%

6%

7%

8%

8%

9%

9%

9%

9%

9%

10%

1%

1%

1%2%2%

3%

4%

5%

6%

7%

8%

8%

8%

8%

9%

9%

9%

10%

Hispanic population pyramid

1%

2%

2%

3%

4%

6%

7%

8%

8%

7%

6%

6%

7%

7%

7%

7%

6%

6%

3%

2%

3%

4%

5%

6%

7%

8%

8%

7%

6%

6%

6%

6%

6%

6%

6%

6%

Non-hispanic population pyramid

Millennials

Gen Z

Gen X

Boomers

Silent Generation

0%

1%

1%

1%

2%

3%

4%

5%

6%

7%

8%

8%

9%

9%

9%

9%

9%

10%

1%

1%

1%2%2%

3%

4%

5%

6%

7%

8%

8%

8%

8%

9%

9%

9%

10%

Hispanic population pyramid

9

Note: English-speaking - self reported as speaking English very well or betterSpanish-speaking - self reported as speaking English less than well

Sources: Wine Intelligence, Vinitrac® USA Nov 2013, n=655 US Hispanics 21+

Hispanic wine drinkers

90 million regular wine

drinkers in the USA

5.9 million English-speaking Hispanic

regular wine drinkers

7% English-speaking Hispanic regular wine drinkers3

5.8 million Spanish-speaking Hispanic

regular wine drinkers

6% Spanish-speaking Hispanic regular wine drinkers3

10

Hispanic wine drinkers: Who are they?

Connection with “Hispanic” countries of origin

20%

16%

15%

55%

30%

34%

8%

42%

25%

39%

39%

33%

53%

37%

34%

11%

24%

16%

Spain

Chile

Argentina

California

France

Italy

Portugal

Other USA

Australia

Non-Hispanics Hispanics

Country of origin repertoire for regular wine drinkers in the USA% who have drunk wine from the the following wine-producing places in the past 6 months Base=All non-Hispanic regular wine drinkers in the USA (n=2,027)Base=All Hispanic regular wine drinkers in the USA (n=256)

* Statistically significantly higher than the other group at a 95% confidence levelSource: Wine Intelligence, Vinitrac® USA, November 2013, n=655, Hispanics over 21 years oldSource: Wine Intelligence, Vinitrac® USA October 2013, n=3,836 Non-Hispanics alcohol drinkers over 21 years old

*

*

*

*

*

*

11

10 rules for engaging America’s new wine drinkers

Get

personal

I care

TribeLook & feel

good

Not so

confidentExperience

OnlineSpeak my

language

Looks

count

Take me

seriously

12

Get personal

When you visit vineyards, they open up bottles that you

wouldn’t otherwise get to try. Male, Millennial, NYC

Wine shops are like mini libraries, you get to go in

and read the stories.Female, Millennial, NYC

13

Getting personal in wine

14

I need my tribe

Every month I go with 3 friends to a steak house and 3 of the 4 of us will

bring a bottle of red wine. We all get to try each other's wines an the 4th person

gets to judge who’s is best.Male, Millennial, NYC

15

Tribal in wine

My friend told me about WTSO. That’s more fun and a

reason to buy online.Female, Millennial, NYC

16

Help me feel and look good

I see Fairtrade coffee and know I should buy it but I don’t see that

in a wine store. It’s not clear which wines are ‘best’ produced.

Male, Millennial, NYC

Wine is a farm to table product, that you get to really experience

when you visit a vineyard. It’s beautiful, its relaxing.

Female, Millennial, NYC

17

Feeling & looking good wine

18

I care what you think of me

I always try and find a wine that makes me look wealthy, but is

not actually too expensive.Male, Millennial, Delaware

Sometimes I look up about types of wine online so that I can contribute

to a conversation. I try and learn some ‘easy wine speak’.

Male, Millennial, Delaware

19

Wine that talks about me

20

I’m not as confident as I seem

I feel overwhelmed when in my wine store…and end up

just wandering round.Female, Millennial, Delaware

I feel like I’m not as knowledgeable as I should be.

Male, Millennial, Delaware

21

Help me with wine

22

Talk my language, mirror my lifestyle

I’m in a wine social club. We get together and bring food and we try different wines

to see what we like, but we don’t talk about notes or scents or cherries or wood.

Female, Millennial, Delaware

Franks, by local store’ does this really cool thing where you can

play table tennis in store to earn discounts on wine.

Female, Millennial, Delaware

23

Wine ‘my way’

24

Let me in on the experience

I find myself seeking out wines that I’ve had when I’ve travelled, it connects me to past experiences.

Male, Millennial, NYC

25

Wine as an experience

26

Take me seriously

I don’t think they are very polite to younger people like us in my local wine shop. They don’t take

us seriously as wine buyers. Male, Millennial, Delaware

Sometimes the guys in the wine store can be a bit demeaning which

I think is because of my age.Female, Millennial, Delaware

27

Looks are important

I look first of all for Pinot Noir, and the look around for what has the coolest label in my price range.

Female, Millennial, Delaware

I really like the kitchy type labels, they draw me in. Things

like Bitch and Cupcake.Female, Millennial, NYC

28

Wine that looks good

I know Apothic is good. I didn’t care where it came from or

what grape variety it is.Female, Millennial, Delaware

29

My online life is not for everybody

I would never buy wine online, I love the personal

interaction in store.Female, Millennial, NYC

People our age or younger tend to stay away from alcohol associations on Facebook.Male, Millennial, Delaware

30

Wine online

31

Craft beer ticks the boxes

The craft beer people have got it right for us. Their names are fantastic, they look

great visually and they are really affordable at $10 or so for a 6-pack.

Male, Millennial, Delaware

I don’t feel like I’m taking a risk buying a 4 pack of beer for $15 like I would with a $15 bottle od wine.

Female, Millennial, NYC

32

Wine is all about connections

When my girlfriends are over, we drink wine to relax but really it’s

about being with each other. Female, Millennial, Delaware

If somebody has drunk a bottle of wine they want you to know about, they’ll take a

picture of it and # it. Female, Millennial, Delaware

33

10 rules for engaging America’s new wine drinkers

Get

personal

I care

TribeLook & feel

good

Not so

confidentExperience

OnlineSpeak my

language

Looks

count

Take me

seriously

34© Wine Intelligence 2013

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