Wines & Vines

April 2017 Oak Barrel Alternatives Issue

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Key Indicators Complete data is available at winesandvines.com/metrics S ales of U.S. wines hit $2.9 billion in February 2017, market-research firm bw166 reported, up 4% from a year earlier. Sales for the 12 months ended February 2017 remained steady at $39 billion, up 3% from February 2016. The sales figures herald a strong spring, with February sales checking in at levels typi- cally seen in summer. Domestic sparkling wine sales increased 10% in February 2017 versus a year earlier, totaling $109 million. Sparkling wine sales growth for the 12 months ending February 2017 was 11%, rising to $1.9 billion. While the double-digit growth continues off a low base, the fact that it is outpacing other sales segments is encouraging to producers. Total wine sales (including packaged imports) stood at $59 billion in the 12 months ended Febru- ary, up 3% from February 2016. Packaged imports showed slightly stronger growth of 4%, but the gain is off a much lower base. Domestic wines maintain the upper hand as confident consumers continue lifting wine sales across the board. —Peter Mitham U.S. Wine Sales Winery Job Index MONTH February 2017 313 February 2016 316 12 MONTHS February 2017 291 February 2016 273 MONTHLY INDEX 7% Domestic Wine Sales Rise 4% to Reach $2.9 billion Source: winejobs.com Winejobs.com Index 500 400 300 200 100 0 2017 2016 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb -1% METRICS 10 WINES&VINES April 2017 Off-Premise Sales IRI Channels MONTH February 2017 $669M February 2016 $657M 12 MONTHS February 2017 $8,679M February 2016 $8,334M MONTHLY SALES U.S. Wine Sales MONTH February 2017 $2,897M February 2016 $2,793M 12 MONTHS February 2017 $38,920M February 2016 $37,889M MONTHLY SALES 2% 4% 3% 4% Direct-to-Consumer Shipments MONTH February 2017 $239M February 2016 $175M 12 MONTHS February 2017 $2,409M February 2016 $2,020M MONTHLY SHIPMENTS 19% 37% Source: , Wines Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores, four weeks ending Feb. 19, 2017. Source: bw166.com, Wines Vines Analytics. Domestic table and sparkling wine sales on-premise and off-premise. $ Millions $1,000 $800 $600 $400 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Source: Wines Vines Analytics/ShipCompliant $ Millions $400 $350 $300 $250 $200 $150 $100 $50 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2017 2016 2017 2016 $ Billions $4 $3.5 $3 $2.5 $2 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2017 2016 2016 2015 2016 2015 2016 2015 2016 2015 TOTAL WINE SALES Millions 2016 2017 Change % Change Domestic Table, Sparkling & Imported Bulk $37,796 $38,920 $1,124 3% Packaged Imports & All Other Wines $19,818 $20,570 $752 4% Total Wines $57,614 $59,490 $1,876 3% Source: bw166.com, Wines Vines Analytics, consumer expenditures for all wines on-premise and off-premise, 12 months through February 2017. Excludes cider.

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