1© Wine Intelligence 2016

Connecting with future consumers

CVA Annual Meeting, Kelowna

July 2016

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• World leading research agency on wine consumer behaviour

• Started 2001 (3 founders, incl me!)

• Now work in 26 countries

• Clients include:

• Governments

• Multinational businesses

• Trade associations

• Growers

• Retailers

• Importers / distributors

• Banks

About Wine Intelligence

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What do we mean by future consumers?

Born between

X-Gens

Boomers

Silents

Young Millennials

Next Gens

G.I. Gens

Old Millennials

1920

1950

1980

2010

1935

1965

1985

1995

Relevant future

segments

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Wine Intelligenceprojection

America’s future wine drinkers

• Sources:

• US Vinitrac® calibration studies

• Future consumption modelling results

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Segment analysis

Future consumers in the US

10%3%

24%

22%16%

10%5%

36%

33%

25%

23%

20%

26%

30%

27%

27%

25%

4%8%

13%

13%

12%

4%

19%

18%

17%

10%21%

2005 2010 2015 2020 2025

18% 21%29% 30% 32%

2005 2010 2015 2020 2025

Old Millennials

Next Gens

X-Gens

Boomers

Silents

Young Millennials

Old Millennials

X-Gens

Boomers

Silents

G.I. Gens

55 million

66 million

93 million

101 million

110 million

32%41%

50%

Relative size of each segment within regular wine drinkers

Sources:

US Vinitrac® omnibus surveys from 2005, 2010 and 2015

US future consumption modelling results

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6% 10%18%

32%

2010 2015 2020 2025

335 million

378 million

427 million

481million

19 million

38million

76million

154million

Sources:

China Vinitrac® calibration studies

Future consumption modelling results

1 Urban adults aged 18-49 in 2010, 18-54 in 2015-20252 Those who drink imported wine at least twice a year

Urban adult population1

Imported wine drinkers2

Wine Intelligenceprojection

China’s future wine drinkers

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65% 69% 70% 71%

2010 2015 2020 2025

% of regular wine drinkersSources:

Canada Vinitrac® calibration studies

Wine Intelligence Future consumption modelling results

Canada’s future wine drinkers

27 million 29 million 30 million 32 million

Total adult population

Regular wine drinkers

18million

20million

21million

23million

Wine Intelligenceprojection

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19%11%

5%

29%

25%

21%

24%

27%

29%

25%

28%

27%

3%9%

19%

2015 2020 2025

Silents Boomers X-Gens Millennials Next-GensSources:

Canada Vinitrac® omnibus survey 2015

Wine Intelligence Canada future consumption modelling results

20million

21million

23million

Millennials

X-Gens

Boomers

Silents

Next-Gens

Segment analysis

Future consumers in Canada

Relative size of each segment within regular wine drinkers

9Vostok Amphibian

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Devotion

People now care about the wine list. This has never happened

before. It used to be just about the food menu

Food and Beverage Director, Shanghai Hotel

Every month I go with 3 friends to a steak house and 3 of the 4 of us will bring a bottle of red wine. We all get to try each other's wines and the 4th person gets

to judge whose is best

Millennial, USA

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The Gin Bar (UK) Bacon Bar (USA)

Devotion

Mister Lasagna (UK) Herzl Brewery (Jerusalem)

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Lectures on Italian regions on WeChat

Offline tasting event

Devotion

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You wouldn't get to have that social element in person or have the feeling of being surrounded by

choices that is sort of just viscerally fun at the store

Millennial Treater, USA

I do not buy wine online. It is too pricey due to shipping

Millennial Treater, USA

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Instant

Intergalactic Agency (Global)Cellarmaster Wines (Hong Kong)Amazon Dash Button (Global)

15Shanghai, May 2016

I shop wine from JD.com because it delivers the orders faster than

other websites

Millennial, China

Instant

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If I trust an e-commerce platform, I would trust that everything sold

on it is genuine and authentic

Millennial, Shanghai

I don’t think well-known e-commerce platforms would sell

counterfeit products, one such as Yihaodian, JD, Tmall

Millennial, Shanghai

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Transparency

Veuve Clicquot (France)Paul (Romania) Hunter Gatherer (China)

Transparency

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Upgrade

For a party, I feel obliged to buy a bottle of red and white, and then

I’d be conscious to get a bottle that looks like a quality wine

Generation Treater, USA

People will spend 1 month’s salary on a night out at a bar

F & B Manager, Shanghai

I know it might sound silly, but I want the bottle to look good and impress whoever

I’m buying it for

Developing Drinker, Sydney

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McDonald’s (South Korea)

Upgrade

Berco’s Popcorn (US)McDonald’s (Hong Kong) Pepsi (US)

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Franks, my local store, does this really cool thing where you can play table tennis in store

to earn discounts on wine.

Millennial, USA

There’s no time to waste so you might as well experiment a bit

Generation Treater, UK

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Play

Coca Cola (UK)

Budweiser (USA)Nescafé (Germany)

KitKat (Paraguay)Snapchat (global)

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Convergence?

Chongqing New York Shanghai

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French Concession area of Shanghai, May 2016

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‘Curious about

wine, looking to

build confidence’

Conservative and enjoy a (controlled) experiment

Frugal and status seeking

Advice seeking and self-discoverers

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Mikhail and Vera would be proud. . .

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Richard Halstead, COO and co-founder of Wine Intelligence, richard@wineintelligence.com

For more information about Wine Intelligence please contact us:

Wine Intelligence 109 Maltings Place169 Tower Bridge RoadLondonSE1 3LJ

Telephone: +44 (0)20 7378 1277Email: info@wineintelligence.comWeb: www.wineintelligence.comTwitter: www.twitter.com/wineintellFacebook: www.facebook.com/wineintelligence

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