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METRICS Off-Premise Sales Up 6% in 2012 Boxes and aseptic pouches were the fastest growing categories of the year December Sales $20-Plus December Sales $20-Plus $30 $30 $25 $25 Millions Millions $20 $20 $15 $15 $10 $10 $5$5 $0$0 2008 2009 2010 2011 2012 2010 2011 2009 2012 $20-plus domestic table wine sales, $20-plus domestic table wine sales, major U.S. food and drug stores. major U.S. food and drug stores. $1,400 $1,400 2011 2011 2012 2012 $1,200 $1,200 $1,000 $1,000 Millions Millions $35 $35 Table Wine Annual Sales by by Varietal Table Wine Annual Sales Varietal $800 $800 $600 $600 $400 $400 $200 $200 $0 $0 Cabernet Merlot Cabernet Chardonnay Chardonnay Fumé/ Fumé/ Merlot Sauvignon Sauvignon Sauvignon Sauvignon Blanc Blanc Pinot Pinot Pinot Noir Noir Red Red Pinot Grigio/ Blends/ Grigio/ Blends/ Gris Gris Meritage Meritage Sales of domestic and imported table wine at all all Sales of domestic and imported table wine at price points, major U.S. food and drug stores. price points, major U.S. food and drug stores. S an Rafael, Calif.—Retail sales the fastest growth of any bottled wines. continued to increase in December, They gained 11% in December versus a finishing a year of 6% growth for year ago and jumped 15% for the year. domestic table wines and passing the $5 The absolute fastest growing categories billion mark. Revenues in December 2012 in 2012 were boxed wines at $3.50 per (always the biggest month of the year) 750ml and above (which increased by beat the same month in 2011 by 4% and 30% for the year) and wines in aseptic reached 6.3 million cases, according to pouches, which rose by 29%. the Symphony IRI Group (SIG). The biggest price segment in dollars Imports dropped by 0.5% in 2012 and was $8-$10.99, with just over $1 billion. held 20% market share at the major food, The category's growth rate of 10% was drug and liquor stores analyzed by SIG. Page 1 instrumental in keeping theARS_Nov05.qxt overall sales Trust_Dir11.qxp 10/28/10 3:09 PM Wines at $20-plus continued to enjoy trend up for domestic wines. A look at the varietal lineup including both domestic and imported table wines shows that Chardonnay and Cabernet Sauvignon stayed on top in 2012. Chardonnay grew by 3% to nearly $1.4 billion. Cabernet grew twice as fast to just under $1 billion. No. 3 Merlot was the only major varietal to shrink in sales, dropping by 6%. The success story of red blends/Meritage wines stood in contrast, as sales rose 22% and approached the size and average bottle price of PM Noir. 9/23/05 2:12 Pinot Page 1 —Jim Gordon Clean • Sterilize • Humidify "We can do it all" ... • Bottling Lines • Barrels • Tanks Steam Generators Pressure Washers • Floors and Walls • Winery Equipment Barrel Washers and Rinsers • Vineyard Equipment Humidifiers Stemware Washers ARS/Pressure Washer Company We work well under pressure. We work well under pressure. 800-735-9277 or www.cleanwinery.com Win es & Vin es F EB RUA RY 20 13 11