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SPECIAL ADVERTISING SECTION WINE INDUSTRY FINANCE Rich History, Unrivaled Wine Knowledge Make Rabobank a Key Partner Rabobank, N.A. relies on extensive industry knowledge to provide clients with important lending insights. Rabobank, N.A. has its roots in agriculture and ag continues to be a core focus today. This rich heritage, coupled with unrivaled market knowledge and the capital to grow seamlessly with customers, makes Rabobank, N.A. the premiere lender across the board in the wine industry—from growers to integrated producers. The history and experience Rabobank, N.A. has in the wine market makes the company a conscientious and reliable lender. "We understand the wine industry and the variety of challenges our clients are facing in the market," notes Rabobank regional manager Charles Day. "For example, if we see a light harvest and the need to stretch an inventory cycle, we understand the importance of making more capital available to our clients. If we didn't inherently understand the cycles that occur in this market, we wouldn't be able to support them in this way. One of the key sources of knowledge is the Rabobank International Food and Agribusiness Research & Advisory (FAR) group. This group is comprised of more than 80 analysts and economists around the world who constantly watch and analyze global market events that affect agriculture. This global perspective offers Rabobank customers the ability to understand what the wine industry is experiencing on a global scale, and how this information can allow them to make more informed business decisions. Rabobank, N.A is part of the Rabobank Group, the highest rated privately owned bank in the world, giving Rabobank, N.A. customers the security of a strong foundation and access to capital when it's most important. When clients are ready to grow, Rabobank can accommodate their lending needs, and the bank is positioned to partner with large, complex operations. "Our appetite for growth is hearty," notes Day. "California " and the wine industry are primary areas we are concentrating on. We're excited about the work we are doing with current clients who are rapidly growing, and we are looking forward to working with a number of new clients. " Global Wine Inventories Tightening as Wineries Move to Fill Production Shortfalls U.S. bulk wine imports showed sharp growth in second quarter of 2012 Imports into the U.S. showed sharp increases in the first four months of 2012 as wineries utilized alternative supply sources in light of the tight bulk wine market. Bulk wine imports more than doubled, with increases coming from a wide range of suppliers, but the greatest growth coming from Chile, Argentina and Australia. This increase comes as Rabobank estimates global wine inventories are at the lowest point of the past decade, indicating that the industry has finally moved closer to balance after years of oversupply challenges. As the short bulk market continues to persist, the production season in California is just getting underway. Initial reports are that the crop is currently expected to be above average. If true, the increased production would be welcome news for many wineries. From the Rabobank Wine Quarterly produced by Rabobank's Food and Agribusiness Research & Advisory (FAR) group, and provided as an exclusive benefit to Rabobank clients. 42 WINES & VINES SEPTEMBER 2012 Rabobank, N.A. Member FDIC