ZAP’s MegaZin Study: 2 Years Later

1. ZAP’s MegaZin Study: 2 Years Later Christian Miller Full Glass Research June 2008 Source: Christian Miller www.fullglassresearch.com 2008

2. The Big Picture • Wine Sales UP, trade-ups continue • Economic storm clouds, but historically not a big factor for wine • Consumer base broadening • Among bev-alc consumers, majority drink wine • More core wine consumers than marginals • Gender parity • Millenials • Aged 14-31, 70 million (Boomers aged 44-62, 77 million) • Millenials and GenX drinking more wine • More imports, more reds, less Merlot/Chard/Wzin Source: Christian Miller www.fullglassresearch.com 2008

3. The Big Picture, volume 2 • The Sierra Gap • Environment – not a factor yet, but Core Involved wine consumers overlap nicely with “Green” consumers • Classic brands, classic appellations eroding • Wine – it’s all good • Safe to experiment • What else can you tell me? • Regionality Source: Christian Miller www.fullglassresearch.com 2008

4. Major Issues for Zin Producers Source: Christian Miller www.fullglassresearch.com 2008

5. Key Points from Consumer Study • Alcohol levels and Ultra-ripeness – not a problem yet • We need – and they want – more Zin in restaurants • There is a Zinfandel confidence gap – “I get Zin, but do they?” • Terroir, Old Vines, Spice, Jam, Berries – yes please! Source: Christian Miller www.fullglassresearch.com 2008

6. Consumer Study Methodology • Online survey in 2005 • invitations emailed to Wine Opinions Panel and various ZAP mailing lists • Link in email takes client to web-based survey • Results tabulated and analyzed separately • Wine Opinions=Core involved Wine Consumer • Sample Size (completed survey): • WO Panel – 415 • ZAP – 670 • Ex-Zappers – 102 Source: Christian Miller www.fullglassresearch.com 2008

7. Who are Zin Fans? Source: Christian Miller www.fullglassresearch.com 2008

8. Wine Consumption Source: Christian Miller www.fullglassresearch.com 2008

9. Hangtime and Alcohol – “Zin is…” Source: Christian Miller www.fullglassresearch.com 2008

10. Hangtime & Alcohol • Consumers have not yet made the link between wine style and alcohol • Taste is more diverse than the Parkerators of the world would have you believe • This is an evolving issue • Trade perception vs. Consumer perception Source: Christian Miller www.fullglassresearch.com 2008

11. Zin in Restaurants *High Frequency Zin drinkers – 1+ times a week small sample size, C.I. 90% = 5-11% Source: Christian Miller www.fullglassresearch.com 2008

12. Zinfandel – the Confidence Gap(Core Involved Wine Consumers) Source: Christian Miller www.fullglassresearch.com 2008

13. Zinfandel – the Confidence Gap(ZAP members) Source: Christian Miller www.fullglassresearch.com 2008

14. Zin On-Premise – What to do? • Publicize findings about consumers desiring better Zin selection, especially to the trade • Compare Zin’s share of wine lists - quantify • Court on-premise more • Events • Play the terroir card • Define your style • By-the-Glass programming – less “risk” for buyer, faster feedback • Target casual, bistro, neighborhood. Not luxury or business-oriented restaurants. Source: Christian Miller www.fullglassresearch.com 2008

15. “I’m often unsure about what flavors or style I will get when I buy Zinfandel” Source: Christian Miller www.fullglassresearch.com 2008

16. The Flavors of Zin Source: Christian Miller www.fullglassresearch.com 2008

17. Signs of Good Zin Source: Christian Miller www.fullglassresearch.com 2008

18. Where do we go from here? • Alcohol levels and Ultra-ripeness – still not a big issue for consumers, still growing for trade/media • Zin in restaurants – what’s your take? • The Zin confidence gap • A Zin generation gap? Source: Christian Miller www.fullglassresearch.com 2008