2019 Wine Market Council U S Wine Consumer

2019 Wine Market Council U. S. Wine Consumer Segmentation Slide Handbook September 5, 2019 1

Segmentation Survey Handbook The purpose of this handbook is to provide Wine Market Council members with ready-made slides to use in presentations and other business activities. This handbook includes charts and tables based on data on the following topics: § Wine and Alcohol Consumption Among U. S. Adults……………………… Page 6 § Crossover Consumption Among Wine Drinkers………………. Page 13 § Changes in Consumption of Wine and Other Types of Alcohol Among Wine Drinkers……. . Page 21 § Wine Affinity…………………………………………… Page 27 § Self-Reported Wine Purchases by Price and Package……………………Page 32 § Key Differences Between High Frequency and Occasional Wine Drinkers…………………. Page 31 § Demographic Profiles ………………………………………Page 41 This research is proprietary to Wine Market Council members. Proper attribution is required for use and is included on each slide. As this set of charts and tables is not exhaustive, please direct requests for additional charts and tables, as well as requests for full data tabulations and other questions to Jennifer Pagano, Director or Research at jpagano@winemarketcouncil. com. 2

Segmentation Survey Methodology ü The survey was fielded in June 2019 by Engine (formerly ORC International) in partnership with Illuminate Market Research. ü The survey was conducted among a representative sample of U. S. adults adjusted to current Census Bureau demographic data using Engine’s proprietary weighting scheme. ü 5, 640 U. S. adults were polled to determine U. S. wine consumer incidence. ü 2, 209 wine consumers who drink wine at least once every two or three months participated in the study. Notes: § All data included in this handbook is based on self-reported consumer survey participant responses. § Significance level =. 05 § Some figures do not add to 100% due to rounding. Wine Market Council (WMC) is furnishing these survey results "as is" and does not provide any warranty of such results whatsoever, whether express, implied, or statutory, including, but not limited to, any warranty of merchantability or fitness for a particular purpose or any warranty that the results will be error-free. In this regard, the results do not constitute advice and WMC shall have no liability for the member’s use thereof. In no respect shall WMC incur any liability for any damages including, but not limited to, direct, indirect, special, or consequential damages arising out of, resulting from, or any way connected to the use of the results, whether or not based upon warranty, contract, tort, or otherwise; whether or not injury was sustained by persons or property or otherwise; and whether or not loss was sustained from, or arose out of, the results of, the survey. 3

Data Access For those in a membership tier that has access to all Wine Market Council data tabulations, the segmentation study data is available upon request. Data is available on the following variables: ü Total wine drinkers based on the responses of 2, 209 U. S. adults 21+ who drink wine at least once every 2– 3 months. § Data also available by gender, age bands (20 s, 30 s, 40 s, 50 s, 60 s, 70+), generations and ethnicity/race. ü Total High Frequency wine drinkers, based on the responses of 774 U. S. adults 21+ who drink wine more often than once a week. § Data also available by gender, age bands (20 s, 30 s, 40 s, 50 s, 60 s, 70+), generations, ethnicity/race, weekly/monthly $20+ wine purchasers, and change in wine consumption (drinking more vs. drinking less vs. drinking the same compared to a couple of years ago). ü Total Occasional wine drinkers, based on the responses of 1, 435 U. S. adults 21+ who drink wine once a week or less often. § ü Data also available by gender, age bands (20 s, 30 s, 40 s, 50 s, 60 s, 70+), generations, ethnicity/race, change in wine consumption (drinking more vs. drinking less vs. drinking the same compared to a couple of years ago), and wine vs. other alcohol preference. Core (drink wine at least once a week) and Marginal wine drinkers (drink wine less often than once a week and “like” wine), based on the responses of 1, 164 U. S. adults 21+ who drink wine at least once a week (Cores) and 930 who drink wine less than once a week and “like” wine (Marginals). 4

Data Access (continued) ü Beer and spirits drinkers who consume no wine, based on the responses of 1, 438 U. S. adults 21+ who drink beer and/or spirits at least once every 2– 3 months, but do not drink wine (data for limited questions). § Data also available by generations. ü Teetotalers, based on 1, 429 U. S. adults 21+ who do not drink alcohol (data for limited questions) ü Infrequent alcohol consumers, based on 564 U. S. adults 21+ who drink alcohol (wine, beer, and/or spirits) less often than once every 2 -3 months. Data can also be segmented by additional variables upon request. 5

Wine and Alcohol Consumption Among U. S. Adults 6

Wine Consumption Among U. S. Adults 21+ High Frequency Wine Drinker Teetotaler (more often than once a week) 25% Infrequent Alcohol Consumer (drink alcohol, including wine, less than every 2 -3 14% 10% 25% months ) 26% Non-Wine Drinker (drink beer and/or spirits only) Base: 5, 640 U. S. Adults 21+ Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Occasional Wine Drinker (once a week or less often, but more than once every 2 -3 months) 7

Wine Consumption Among U. S. Adults 21+ by Generation Wine Drinkers High Frequency Wine Drinkers (> than 1 x week) Occasional Wine Drinkers (1 x week or less often, but more than once every 2 -3 months) Non-Wine Drinkers (drinks beer, and or spirits only) Infrequent Alcohol Consumers (drink beer, spirits, and/or wine less than every 2 -3 month) Teetotalers i. Gen (21 -24) Millennial (25 -42) Gen. X* (43 -54) Baby Boomer (55 -73) 74+* 44% 39% 38% 41% 12% 13% 14% 16% 32% 26% 25% 24% 25% 29% 31% 28% 20% 11% 9% 10% 8% 11% 9% 18% 20% 25% 31% 37% *Does not add to 100% due to rounding Highlighting = Statistically significantly higher than 4, 3, 2 other segments. Base: U. S. Adults 21+: i. Gen, n=336; Millennials, n=1, 895; Gen. X, n=1, 186; Baby Boomers, n=1, 967; 74+, n=255. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 8

Wine Consumption Among U. S. Adults 21+ by Age Range Wine Drinkers High Frequency Wine Drinker (> than 1 x week) Occasional Wine Drinker (1 x week or less often, but more than once every 2 -3 months) Non-Wine Drinker (drinks beer, and or spirits only) Infrequent Alcohol Consumer (drink beer, spirits, and/or wine less than every 2 -3 month) Teetotaler 21 -29 30 -39 40 -49 50 -59 60 -69 70+* 39% 42% 37% 39% 41% 10% 15% 12% 15% 14% 29% 27% 22% 25% 24% 27% 32% 29% 31% 26% 18% 13% 11% 9% 9% 10% 11% 10% 18% 20% 23% 27% 32% 35% *Does not add to 100% due to rounding Highlighting = Statistically significantly higher than 5, 4, 3, 2 other segments. Base: U. S. Adults 21+: 21 -29, n=874; 30 s, n=1, 075; 40 s, n=1, 003; 50 s, n=1, 050; 60 -69, n=1, 067; 70+, n=573. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 9

Wine Consumption Among U. S. Adults Aged 21+: 2015 - 2019 Wine Drinkers High Frequency Wine Drinker (> than 1 x week) Occasional Wine Drinker (1 x week or less often, but more than once every 2 -3 months) Non-Wine Drinker 2015 2016 2017 2018 2019 36. 0% 37. 6% 40. 4% 37. 3% 39. 2 13. 0% 13. 6% 14. 3% 12. 3% 13. 7% 23. 0% 24. 0% 26. 1% 25. 0% 25. 4% 25. 6% 27. 5% 26. 4% 26. 0% 25. 5% (drink beer, spirits, and/or wine less than every 2 -3 month) 12. 3% 9. 9% 8. 9% 10. 6% 10. 0% Teetotaler 24. 8% 25. 0% 24. 3% 26. 1% 25. 3% (drinks beer, and or spirits only) Infrequent Alcohol Consumer Highlighting = Statistically significantly higher than 4, 3, 2 other segments. Base: U. S. Adults 21+: 2015, n=2, 903; 2016, n=6, 770; 2017, n=5, 724; 2018, n=5, 646; 2019, n=5, 640. Source: WMC – U. S. Wine Consumer Segmentation Surveys, 2015 - 2019 10

Wine, Beer, & Spirits Consumption Crossover Among Alcohol Consumers*: 2015 - 2019 2015 2016 2017 2018 2019 Drink wine, beer, & spirits 24% 23% 25% 24% 27% Drink wine only 13% 14% 12% Drink beer only 15% 16% 16% 15% Drink spirits only 10% 11% 9% 8% 9% Drink beer, spirits/no wine 14% 13% 15% 14% Drink wine, beer/no spirits 13% 12% Drink wine, spirits/no beer 11% 10% 11% 11% *Consume some type of alcohol at least every 2 – 3 months Base: U. S. Alcohol Consumers: 2015, n=1, 753; 2016, n=4, 282; 2017, n=3, 751; 2018, n=3, 483; 2019, n=3, 550. Source: WMC – U. S. Wine Consumer Segmentation Surveys, 2015 - 2019 11

“Other Alcoholic Beverage” Consumption by Type Among U. S. Alcohol Consumers* High frequency wine drinker Occasional wine drinker Drink beer/spirits, no wine Wine-based drinks (such as sangria, wine spritzers, etc. ) 78% 77% Hard cider 34% 22% 17% Premixed, ready-to-drink cocktails 32% 19% 20% Hard seltzers 24% 10% Hard tea 15% 12% *Consume some type of alcohol at least every 2 – 3 months Highlighting = Statistically significantly higher than 2 of 1 other segment. Base: High Frequency wine drinkers (more than once a week), n=774; Occasional wine drinkers (once a week or less often), n=1, 435; Drink beer/spirits, no wine, n=1, 438. Source: WMC – U. S. Wine Consumer Segmentation Surveys, June 2019 12

Crossover Consumption Among Wine Drinkers 13

Additional Alcoholic Beverage Consumption Among Total Wine Drinkers 63% 61% 32% Also drink beer Also drink spirits Base: 2, 209 U. S. wine drinkers Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Also drink other types of alcoholic beverages 14

Drink “Other Alcoholic Beverages”* at Least Every 2 -3 Months by Age Wine Drinkers Drink Beer/Spirits, but No Wine 58% 41% 33% 32% 31% 21% i. Gen (21 -24) Millennial (25 -42) Gen. X (43 -54) Baby Boomer (5573) *Such as such as hard spritzers, flavored alcoholic beverages, hard cider, wine-based mixed beverages Base: Wine drinkers: i. Gen, n=146; Millennials, n=748; Gen. X, n=457; Baby Boomers, n=752; Non-wine drinkers: 15 i. Gen, n=99; Millennials, n=581; Gen. X, n=334; Baby Boomers, n=396. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019

Wine, Beer, & Spirits Consumption* Crossover Among Total Wine Drinkers 19% 18% Drink wine only Drink wine & beer, no spirits Drink wine & spirits, no beer Drink wine, beer, & spirits 44% *Consume at least every 2 – 3 months Base: 2, 209 U. S. wine drinkers Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 16

Wine, Beer, & Spirits Consumption*Crossover Among Total Wine Drinkers by Generation i. Gen** (21 -25) Millennial (25 -42) Gen. X (43 -54) Baby Boomer (55 -73) 74+ Drink wine only 14% 16% 18% 24% 23% Drink wine, beer, & spirits 53% 47% 46% 38% 37% Drink wine, beer/no spirits 16% 20% 21% 18% 21% Drink wine, spirits/no beer 18% 17% 15% 20% 19% *Consume at least every 2 – 3 months **Does not add to 100% due to rounding Highlighting = Statistically significantly higher than 4, 3, 2 other segments. Base: U. S. wine drinkers: i. Gen, n=146; Millennials, n=748; Gen. X, n=457; Baby Boomers, n=752; 74+, n=108 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 17

Wine, Beer, & Spirits Consumption* Crossover Among Total Wine Drinkers by Age 21 – 29 30 – 39 40 – 49 50 – 59 60 - 69 70+ Drink wine only 15% 17% 22% 24% 26% Drink wine, beer, & spirits 48% 49% 46% 44% 38% 33% Drink wine, beer/no spirits 17% 19% 21% 20% 18% 19% Drink wine, spirits/no beer 20% 17% 16% 14% 20% 22% *Consume at least every 2 – 3 months Highlighting = Statistically significantly higher than 5, 4, 3, 2 other segments. Base: U. S. wine drinkers: 21 -29 = 346, 30 s = 453, 40 s = 369, 50 s = 390, 60 s = 416, 70+ = 235 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 18

Wine, Beer, & Spirits Consumption* Crossover Among Total Wine Drinkers by Gender Male Female** Drink wine only 11% 27% Drink wine, beer, & spirits 55% 34% Drink wine, beer/no spirits 23% 16% Drink wine, spirits/no beer 11% 24% *Consume at least every 2 – 3 months **Does not add to 100% due to rounding Highlighting = statistically higher than corresponding segment. Base: U. S. wine drinkers: Males = 1, 014, Females = 1, 195 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 19

Wine, Beer, & Spirits Consumption* Crossover Among Total Wine Drinkers: 2015 - 2019 2015 2016** 2017 2018 2019 Drink wine only 21% 23% 20% 19% Drink wine, beer, & spirits 40% 39% 40% 44% Drink wine, beer/no spirits 22% 21% 19% Drink wine, spirits/no beer 17% 18% 19% 18% *Consume at least every 2 – 3 months **Does not add to 100% due to rounding Base: U. S. wine drinkers: 2015, n=1, 066; 2016, n=2, 545; 2017, n=2, 311; 2018, n=2, 105; 2019, n=2, 290. Source: WMC – U. S. Wine Consumer Segmentation Surveys, 2014 - 2019 20

Changes in Consumption of Wine & Other Types of Alcohol Among Wine Drinkers 21

Wine Consumption Frequency Among Total Wine Drinkers 9. 2% 25. 8% 17. 6% 25. 2% Every day More than once a week, but not every day Once a week 2 – 3 times a month Once a month 10. 9% High frequency wine drinkers (35%) Occasional wine drinkers (65%) Every 2 – 3 months 11. 3% Base: 2, 209 U. S. wine drinkers Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 22

Change in Alcohol Consumption by Type vs. “a Couple of Years Ago” Among Total Wine Drinkers Overall Change* Drinking Same 43% 39% 41% 40% Drinking More 37% 36% 28% Wine +17 Beer -9 Spirits -3 Other** +12 Wine Beer Spirits Other Alcoholic Beverages** -20% -24% -35% -31% Drinking Less *% point difference between drinking more and drinking less **Such as such as hard spritzers, flavored alcoholic beverages, hard cider, wine-based mixed beverages Base: U. S. wine drinkers who drink wine (n=2, 209), beer (n=1, 387), spirits (n= 1, 354), and other alcoholic Beverages (n=708). Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 23

Change in Wine Consumption vs. “a Couple of Years Ago” Among Total Wine Drinkers by Generation Other Wine Market Council research has shown that the majority i. Gens and the youngest Millennials drinking more wine, drank little or no wine a few years ago. i. Gen Millennial Gen. X (21 -25) (25 -42) (43 -54) Baby Boomer (55 -73) 74+* Drinking about the same 17% 33% 43% 53% 73% Drinking more 65% 48% 36% 26% 10% Drinking less 18% 19% 21% 16% +47 +29 +15 +5 -6 Net % point change (difference between drinking more and less) *Does not add to 100% due to rounding Highlighting = Statistically significantly higher than 4, 3, 2 other segments. Base: U. S. wine drinkers: i. Gen, n=146; Millennials, n=748; Gen. X, n=457; Baby Boomers, n=752; 74+, n=108 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 24

Change in Wine Consumption vs. “a Couple of Years Ago” Among Total Wine Drinkers by Age Other Wine Market Council research has shown that the majority of those in their 20 s drinking more wine, drank little or no wine a few years ago. 21 -29 30 -39 40 -49 50 -59 60 -69 70+ Drinking about the same 21% 35% 40% 48% 53% 66% Drinking more 59% 46% 41% 32% 24% 17% Drinking less 20% 19% 20% 23% 17% +39 +27 +22 +1 +/-0 Net % point change (difference between drinking more and less) Highlighting = Statistically significantly higher than 5, 4, 3, 2 other segments. Base: U. S. wine drinkers: 21 -29 = 346, 30 s = 453, 40 s = 369, 50 s = 390, 60 s = 416, 70+ = 235 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 25

Top Reasons Wine Drinkers are Drinking Less Wine % of Wine Drinkers Consuming Less Wine Drinking less alcohol generally 41% Have health issues that require reduced alcohol consumption 40% Prefer another type of alcoholic beverage 29% Don’t have as much money to spend on wine 13% Am spending more time with non-wine drinkers 11% Alcohol affects me more than it used to 9% It’s hard to choose/find wines I might like 8% Don’t socialize as much 7% Wine is too expensive compared to other alcohol choices 7% Don’t think wine is part of a healthy lifestyle 5% Base: 436 U. S. wine drinkers who are drinking less wine vs. ”a couple of years ago” Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 26

Wine Affinity 27

Wine Affinity by Frequency of Wine Consumption High Frequency Wine Drinkers Occasional Wine Drinkers Like wine, drink more often than just special occasions 83% 55% Like wine, but drink it only on special occasions 16% 35% Don’t like wine much, but drink it occasionally 1% 8% Really don’t like wine . 5% 1% Not enough experience to have an opinion <. 5% 1% Highlighting = statistically higher than corresponding segment. Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 28

Preference for Wine or Other Types of Alcohol High frequency wine drinkers 81% Occasional wine drinkers 53% 47% 19% Prefer wine to other types of alcohol Prefer other types of alcohol to wine *Caution: small base size Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 29

Wine Affinity Among Total Wine Drinkers* by Generation i. Gen (21 -25) Millennial (25 -42) Gen. X (43 -54) Baby Boomer (55 -73) 74+ Like wine, drink more often than just special occasions 53% 61% 70% 68%** Like wine, but drink it only on special occasions 31% 34% 26% 28% Don’t like wine much, but drink it occasionally 16% 5% 5% 4% 4% Really don’t like wine 0% . 5% 1% 1% 0% Not enough experience to have an opinion 0% . 5% <. 5% 1% *High frequency and occasional wine drinkers. **Not significant due to rounding. Highlighting = Statistically significantly higher than 4, 3, 2 other segments. Base: i. Gen, n=146; Millennials, n=748; Gen. X, n=457; Baby Boomers, n=752; 74+, n=108. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 30

Top Reasons Some Consumers Don’t Drink Wine Drink beer/spirits, no wine Drink alcohol less often than once every 2 -3 months Prefer taste of other types of alcohol 54% 26% Doesn’t fit personality/style 23% 26% Hard to chose/find wines I might like 16% 14% Friends and family don’t drink wine 10% 12% 750 ml bottle is too much for typical drinking occasion 9% 9% Wine is too expensive vs. other types of alcohol 7% 6% 750 ml bottle not enough for typical drinking occasion 5% 4% Don’t think wine is part of a healthy lifestyle 3% 10% Highlighting = statistically higher than corresponding segment. Base: Drink beer/spirits, no wine, n=1, 438; drink alcohol less than once every 2 -3 months, n=564 Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 31

Self-Reported Wine Purchases by Price and Package 32

Self-Reported Wine Purchase Frequency by Price Category Among Total Wine Drinkers Weekly Monthly Several times a year Once a year or less Never Under $10 17% 21% 24% 13% 24% $10 - $14. 99 12% 27% 32% 15% 14% $15 - $19. 99 9% 17% 33% 20% 21% $20 - $24. 99 5% 10% 23% 26% 36% $25 - $29. 99 3% 8% 17% 23% 49% $30 - $49. 99 2% 6% 11% 18% 63% $50 - $99. 99 2% 4% 7% 14% 73% $100 or more 2% 2% 5% 11% 80% Some rows do not add to 100% due to rounding. Base: 2, 209 U. S. wine drinkers Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 33

Self-Reported Wine Purchase Frequency by Package Size Among Total Wine Drinkers 750 ml bottle 55% 4% 16% 187 ml bottle(s) 1. 5 liter bottle 14% 375 ml bottle 13% Bag in box 11% Can 10% 3 liter bottle 9% Pouch 8% Tetra Pak 5% Base: 2, 209 U. S. wine drinkers Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Weekly/Monthly 56% Never 55% 59% 65% 77% 72% 81% 85% 34

Additional Key Differences Between High Frequency and Occasional Wine Drinkers 35

High Frequency vs. Occasional Wine Drinkers: Wine, Beer, & Spirits Consumption* Crossover 15% 22% 18% 20% 16% Drink wine only Drink wine & beer, no spirits 19% Drink wine & spirits, no beer Drink wine, beer, & spirits 51% High Frequency Wine Drinkers 39% Occasional Wine Drinkers *Consume at least every 2 – 3 months Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 36

High Frequency vs. Occasional Wine Drinkers: Change in Wine Consumption vs. “a Couple of Years Ago” Drinking Same 40% 44% Drinking More 50% Overall Change* 31% High Frequency Occasional High Frequency +40 % pts. Occasional +6 % pts. -10% -25% Drinking Less *% point difference between drinking more and drinking less Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 37

High Frequency vs. Occasional Wine Drinkers: Change in Beer and Spirits Consumption vs. “a Couple of Years Ago” Beer Other Alcohol Products Spirits High Frequency ( n=534) Occasional (n=853) High Frequency (n=518) Occasional* (n=836) High Frequency (n=261) Occasional (n=447) Drinking more 27% 25% 34% 24% 37% 35% Drinking less 35% 25% 35% 24% Drinking about the same 38% 40% 41% 42% 38% 41% -8 -10 +9 -11 +12% +11% Net % point change (difference between drinking more and less) *Does not add to 100% due to rounding Highlighting = statistically higher than corresponding segment. Base: U. S. wine drinkers who also drink beverage Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 38

High Frequency vs. Occasional Wine Drinkers: Self-Reported Monthly/Weekly Wine Purchases by Price Category Under $10 28% $10 - $14. 99 $25 - $29. 99 $30 - $49. 99 $50 - $99. 99 $100 or more 60% 27% $15 - $19. 99 $20 - $24. 99 58% 46% 16% 29% 7% 22% 6% 4% 2% High Frequency Wine Drinker Occasional Wine Drinker 16% 11% 9% 2% Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 39

High Frequency vs. Occasional Wine Drinkers: Self-Reported Monthly/Weekly Purchase by Package Size 750 ml bottle 187 ml bottle(s) 41% 6% 375 ml bottle 7% Bag in box 4% Can 5% 3 liter bottle Pouch Tetra Pak 29% 9% 1. 5 liter bottle 3% 4% 2% 80% 27% 24% High Frequency Wine Drinker 24% Occasional Wine Drinker 20% 18% 16% 12% Base: 774 High Frequency (more often than once a week) and 1, 435 Occasional (once a week or less often) Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 40

Demographic Profiles 41

Survey Respondents by Age and Gender Total Wine Drinkers Drink Beer/ & Spirits, No Wine Infrequent Alcohol Consumers/ Teetotalers High Frequency Wine Drinkers Occasional Wine Drinkers (n=2, 209) (n=1, 438) (n=1, 993) (n=774) (n=1, 435) Average Age 48. 2 45. 0 51. 1 49. 5 47. 5 21 -29 16% 19% 13% 12% 18% 30 -39 20% 21% 16% 21% 20% 40 -49 17% 22% 16% 19% 15% 50 -59 18% 19% 17% 18% 60 -69 19% 13% 21% 18% 70+ 11% 5% 13% 11% i. Generation (21 -24) 7% 7% 5% 5% 7% Millennial (25 -42) 34% 40% 28% 32% 35% Generation X (43 -54) 21% 23% 20% 21% Baby Boomer (55 -73) 34% 28% 41% 37% 33% Older (74+) 5% 2% 6% 5% 4% Male 46% 60% 44% 48% 45% Female 54% 40% 56% 52% 55% Base: U. S. Adults 21+. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Highlighting = Statistically significantly higher than 2 of 1 other segment; Statistically higher than corresponding segment. 42

Survey Respondents: Income, Finances, Household Total Wine Drinkers Drink Beer/ & Spirits, No Wine Infrequent Alcohol Consumers/ Teetotalers High Frequency Wine Drinkers Occasional Wine Drinkers (n=2, 209) (n=1, 438) (n=1, 993) (n=774) (n=1, 435) $94. 0 K $78. 4 K $69. 6 K $97. 4 K $92. 2 K Own home 70% 60% 59% 78% 66% Rent home 30% 41% 22% 34% Work full-time 51% 31% 53% 50% Work part-time 8% 8% 10% 7% 9% Self-employed 6% 7% 6% Homemaker 7% 7% 11% 6% 7% Student 1% 3% 2% 1% 2% Retired 20% 15% 27% 22% 19% Not employed 6% 10% 13% 5% 7% Married/live w/partner 68% 63% 59% 73% 65% Single/never married 19% 23% 15% 21% Separated/div. U. S. Wine Consumered/widowed 13% 14% 18% 12% 14% Children < 18 in household 36% 37% 30% 44% 32% Annual HH Income (mean) Base: U. S. Adults 21+. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Highlighting = Statistically significantly higher than 2 of 1 other segment; Statistically higher than corresponding segment. 43

Survey Respondents: Other Demographics Total Wine Drinkers Drink Beer/ & Spirits, No Wine Infrequent Alcohol Consumers/ Teetotalers High Frequency Wine Drinkers Occasional Wine Drinkers (n=2, 209) (n=1, 438) (n=1, 993) (n=774) (n=1, 435) High school grad/less 27% 43% 48% 27% Some college 17% 18% 16% 14% 18% Technical/2 -year degree 11% 10% 9% 8% 12% College graduate 25% 17% 15% 26% 24% Postgraduate work or degree 20% 12% 11% 23% 19% Non-Hispanic Caucasian 67% 66% 65% 67% Hispanic 14% 15% 11% 14% Black 11% 12% 10% Asian 4% 3% 5% 3% 4% Another designation 5% 5% 7% 6% 5% South 37% 36% 40% 37% West 23% 24% 22% Midwest 20% 24% 20% 17% 21% Northeast 20% 17% 16% 22% 20% Live in a state in the… Base: U. S. Adults 21+. Source: WMC – U. S. Wine Consumer Segmentation Survey, June 2019 Highlighting = Statistically significantly higher than 2 of 1 other segment; Statistically higher than corresponding segment. 44