Wines & Vines

September 2014 Wine Industry Finance Issue

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M E T R I C S Off-premise sales were up 5% in the past four weeks compared to the same period in 2013 and 6% in the most recent 52 weeks. Wine Industry Metrics Latest Metrics Complete metrics data is available at: winesandvines.com/metrics The Winery Job Index grew by 10% from July 2013, and the 12-month growth rate for winery job activity measured 19%. Wine Industry Metrics Source: IRI, ShipCompliant, Winejobs.com, Wines Vines Analytics Off-Premise sales Month 12 Months July 2014 $557M $7,577M July 2013 $533M $7,128M Direct-to-consumer shipments Month 12 Months July 2014 $61M $1,674M July 2013 $56M $1,517M Winery Job index Month 12 Months July 2014 312 222 July 2013 283 187 + 5% + 6% + 10% + 19% + 10% + 9% 10 W i n e s & V i n e s s e P T e M B e R 2 0 1 4 DtC Shipments Beat July 2013 by $5 Million In spite of the usual downturn in direct-to-consumer shipments due to hot summer weather, DtC shipments continued to grow faster than off-premise sales in July. Cabernet Franc had the fastest growing rate of DtC shipments by wineries during the past 12 months, although it also ranked ninth in terms of sales activity by varietal or wine type. Cabernet Sauvignon is the biggest seller, and it grew by an impressive rate of 8% from a large base of $478 million. Second place in sales, Pinot Noir grew 19%, and the same rate applied to Syrah/Shiraz. Metrics Growth Steady as Harvest Arrives Healthy growth rates prevailed in the Wine Industry Metrics through July, as 12-month off-premise sales increased 6% and both direct-to-consumer shipments and the Winery Job Index grew by double digits. The growth rates of off-premise sales for the month and the past year shrank by 1% each since January, but the rate of DtC sales grew by 2%. Perhaps the most immedi- ate sign of winery optimism was the 12-month growth rate of 19% for winery job activity, as measured by Winejobs.com. Direct-to-consumer shipment value increased 9% from July 2013 and 10% compared to the previous 12-month period. Off-Premise Sales Source: , Wines & Vines $ Millions $800 $750 $700 $650 $600 $550 $500 $450 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 + 5% Direct-to-Consumer (DtC) Shipments $250 $200 $150 $100 $50 Source: Wines & Vines/ShipCompliant Model $ Millions 2013 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec + 9% Winery Job Index winejobs.com Index Source: winejobs.com 300 250 200 150 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 + 10% Source: Wines & VInes/ShipCompliant Growth in DtC Shipments by Varietal Red Blends Zinfandel Cabernet Sauvignon Chardonnay Merlot Syrah Pinot Noir Sparkling 12 months ending July 2014 -5% 0 5% 10% 15% 20% 25% 30% 1% -5% 8% 29% 23% 19% 19% 12% 11% Cabernet Franc

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