Peace, Partnership and Prosperity

1. Peace, Partnership and Prosperity Understanding and Celebrating Differing Points of View…

2. Here we are (again)… The fragmented, historically insular (wine) industry generally seems resigned to accepting the wine consumer pool as is rather than aggressively pursuing new markets...And the next decade could easily be referred to by future wine historians as the "years of missed opportunity.” Brand Week, May 1, 2000

3. A Fork in the Road • Continue along the Path of ‘Conventional Wisdoms’? • Explore a New Direction Down a Different Path?

4. Critically Re-Thinking The Wine Market The examination and resolution of conflicting points of view • What are the different OPINIONS? • What EVIDENCE is available to support each opinion: is it reliable and valid? • Are there ALTERNATIVE ways of interpreting the evidence? • What ADDITIONAL EVIDENCE would help to evaluate the alternatives? • What are the most reasonable CONCLUSIONS based on all of the evidence?

5. Divergent Perspectives Value: • the quality (positive or negative) that renders something desirable or valuable Point of View: • A position from which something is observed or considered; a standpoint.

6. People are anatomically different – one size does not fit all

7. The New Path… • HYPER-SENSITIVE TASTERS (left) have a much higher number of taste buds • SENSITIVE TASTERS are in the middle • TOLERANT TASTERS (right) have fewer taste buds • There are advantages and disadvantages for both extreme group! SENSITIVE TASTERS TOLERANT TASTERS

8. The Traditional Path and False Assumptions Research shows Asians prefer sweeter wines Wednesday, 25/07/2007 …solid evidence that Asian wine drinkers prefer sweeter wines. Research carried out … shows young drinkers like cheap, sweet red wines. … even though Asian wine drinkers have immature tastes…"There is a tendency for new wine consumers to go for sweeter wine styles and particularly for fruitier wines and then over time as their palates develop and they get more experimental they tend to go a little bit more diverse," he said. … consumers are starting from a very low level of knowledge and they need to be encouraged to follow along that pathway over time."

9. The Terroir of Sumatra: How Coffee Connoisseurs Talk Of the twenty coffees we cupped for this month's review, the Quartermaine Sumatra (90) comes nearest to fulfilling this perhaps idealized expectation, with the Stumptown Sumatra Mandheling (89) a close second. …medium to full body, low acidity, often deeply pungent or bittersweet, with an aromatic complexity that may range from floral and fruit notes in less tainted lots, through the more typical cedar, papaya fruit and dark chocolate notes. A very, very mildly tainted style, with just the barest hint of musty ferment. Enough to introduce some hearty cedar-toned richness and a dark chocolate twist to the fruit, but mild enough to allow some of the classic floral and fruit top notes to bloom.

10. Where do Consumers Spend? Starbucks Menu: Coffee $1.70 Latte/ Cappuccino $3.40 Mocha $3.70 Caramel Mocha $3.90 Mocha Valencia $4.30

11. Consumers Bail Out..

12. A Stroll Through the '21' List, Circa 1945By FRANK J. PRIAL, January 16, 2003 So "21" was selling its old wines, and what wines they were. Château Lafite-Rothschild 1934 was $11; so were the 1933 and the 1928. The 1924 was $9.50 and the 1920, a 25-year-old wine, was $14. The 1934 Haut-Brion was $10. The 1920 was $12.50 and the 1916 a dollar less.

13. A Stroll Through the '21' List, Circa 1945By FRANK J. PRIAL, January 16, 2003 Wine drinkers who are just now beginning to discover German wines would be fascinated by the six pages of German rieslings "21" offered 58 years ago. On average, they were priced two to three dollars more per bottle than the Bordeaux. True, there were 15 Liebfraumilch, but there were dozens of fine estate wines under $15 and a priceless spätlese Moselle, a 1934 Bernkasteler Doktor, Dr. Thanisch, for $18.

14. Re-thinking Research • 3 consumer segments identified based on coffee preferences • The relationship of these segments to wine preferences • A web-based survey was used to collect data beginning in 2005. • Respondents were all wine drinkers of legal age and came from throughout the United States. There were 6693 responses analyzed

15. 3 CONSUMER SEGMENTS • The variables used to create the segments were based on coffee preferences. • TOLERANT - coffee strength: very strong, strong, medium or weak. • SENSITIVE - perfect coffee sugar: none, touch, one, two or more. • HYPER_SENSITIVE - perfect coffee cream: none, little, medium, lots. • Cluster analysis was used to assign membership to one of the three groups. The wine preferences of the groups were then identified.

16. Cream, Sugar & Wine Consumption 80% of respondents drink wine 2 or 3 times a week or more. • Tolerant segment consumed wine most often • Hyper-sensitive segment consume wine least often. • On a 10 point scale, the following graph represents the mean score for each group.

17. Gender & Taste Sensitivity • The sample was split almost evenly at 3332 (49.8%) male and 3361 (50.2%) female. • However, statistical analyses revealed that the proportion of gender in each sensitivity segment differed significantly. • The tolerant segment was more likely to include males and the sensitive and hyper-sensitive segments were more likely to consist of females.

18. Taste Sensitivity & Attitudes about Wine • The survey contained a number of questions about respondents’ attitudes toward wine. • All respondents were core wine drinkers, the attitudes were very favorable • However the analyses identified statistically significant differences between the 3 sensitivity segments. • In all cases, the Hyper-sensitive segment held less positive attitudes toward wine than the Tolerant segment.

19. Taste Sensitivity & Attitudes about Wine

20. Women Vs Wine Women rate the Beverage alcohol industry (wine, beer, spirits) lower than the auto industry on their understanding of women: Cosmetics 52% Automobiles 17% Clothing 46% Investing 16% Food 41% Home electronics 15% Fitness 41% Beverage Alcohol 11%

21. Project Genome Overwhelmed shoppers find wine shopping too complex … this category makes up a quarter of all wine shoppers. “One quarter? Wow. … This is an area that we as wine consumers need to shrink. The level of wine education and acceptance needs to increase. We need to rely more on our tastes, knowledge and judgment than on the animal on the label or the fact that it is $0.60 less than the wine next to it. “

22. People are anatomically different – one size does not fit all

23. Reach 100% of Wine Consumers • To effectively market to everyone by adjusting educational and industry messages to wine consumers: • Make flavor language less inherently judgmental and keep it simple for those who want it simple. • Train the people in the wine industry that the perfect wine for every consumer is the wine that they will enjoy the most. • Rethink Wine and Food Pairing and incorrect inferences that there is a “correct” choice that goes against the desires of the guest. • Make sure that wine lists and retail selections market to the entire available market.

24. What you can do • Choose the path you are going to follow knowing where it leads • Support the Lodi International Wine Awards (www.lodiwineawards.com) if you are looking for a new path • Explore new consumer-centric promotional and product development opportunities • Forward peace and partnership versus positioning for or against those who choose another path