2012 Central Coast Insights Survey

1. 2012 Central Coast Insights Survey

We would greatly appreciate your time. Please take a few minutes to complete the Central Coast Insights Survey which will be presented at the 18th Annual Central Coast Insights program on March 15th at the Embassy Suite in San Luis Obispo. It has been a volatile year with so much changing that we think the comparison to the previous years will be of great interest.

All responses will be kept confidential as we are not collecting e-mail addresses.

You can register at www.winesymposium.com beginning January 17th.

Many thanks for helping us to make a meaningful survey! Remember to hug your gorwer this year!

Question Title

1. Please indicate which category best describes your participation in the wine industry?

Winery

Vineyard

Financial

Professional/Consultant

Other

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2. Which county best describes your location?

Santa Barbara County

Monterey County

San Luis Obispo County

Santa Cruz County

Other

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3. How many vineyard acres do you own or lease?

25-49

50-199

200-500

Over 500

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4. Do you expect to plant any new acres in the next 1-2 years? How many?

1-10

11-25

25-50

50-100

Over 100

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5. How many cases do you expect to produce from the 2011 vintage?

1,000-2,499

2,500-4,999

5,000- 9,999

10,000-49,999

50,000- 99,999

100,000-250,000

500,000 +

Question Title

6. For 2012, will your case production change?

Same as 2011

Increase of 5%

Increase of 10%

Increase of more than 10%

Decrease of 5%

Decrease of 10%

Decrase of more than 10%

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7. How do you think your 2012 revenues will compare with 2011?

Better than 2011

Worse than 2011

About the same as 2011

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8. How do you think your 2012 profit will compare with 2011?

Better than 2011

Worse than 2011

About the same as 2011

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9. How do you think the DEMAND for these Central Coast wine varietals will change from 2011 to 2012?

	Weak Demand	No Change	Strong Demand
Cabernet Sauvignon	Cabernet Sauvignon Weak Demand	Cabernet Sauvignon No Change	Cabernet Sauvignon Strong Demand
Merlot	Merlot Weak Demand	Merlot No Change	Merlot Strong Demand
Pinot Noir	Pinot Noir Weak Demand	Pinot Noir No Change	Pinot Noir Strong Demand
Syrah	Syrah Weak Demand	Syrah No Change	Syrah Strong Demand
Chardonnay	Chardonnay Weak Demand	Chardonnay No Change	Chardonnay Strong Demand
Sauvignon Blanc	Sauvignon Blanc Weak Demand	Sauvignon Blanc No Change	Sauvignon Blanc Strong Demand
Pinot Grigio	Pinot Grigio Weak Demand	Pinot Grigio No Change	Pinot Grigio Strong Demand
Moscato	Moscato Weak Demand	Moscato No Change	Moscato Strong Demand

Question Title

10. GRAPE SUPPLY: How did your yields in 2011 compare with 2010?

	Down 5%	Down 10%	Down more than 10%	Same	Increased 5%	Increased 10%	Increase more than 10%
Cabernet Sauvignon	Cabernet Sauvignon Down 5%	Cabernet Sauvignon Down 10%	Cabernet Sauvignon Down more than 10%	Cabernet Sauvignon Same	Cabernet Sauvignon Increased 5%	Cabernet Sauvignon Increased 10%	Cabernet Sauvignon Increase more than 10%
Merlot	Merlot Down 5%	Merlot Down 10%	Merlot Down more than 10%	Merlot Same	Merlot Increased 5%	Merlot Increased 10%	Merlot Increase more than 10%
Pinot Noir	Pinot Noir Down 5%	Pinot Noir Down 10%	Pinot Noir Down more than 10%	Pinot Noir Same	Pinot Noir Increased 5%	Pinot Noir Increased 10%	Pinot Noir Increase more than 10%
Syrah	Syrah Down 5%	Syrah Down 10%	Syrah Down more than 10%	Syrah Same	Syrah Increased 5%	Syrah Increased 10%	Syrah Increase more than 10%
Chardonnay	Chardonnay Down 5%	Chardonnay Down 10%	Chardonnay Down more than 10%	Chardonnay Same	Chardonnay Increased 5%	Chardonnay Increased 10%	Chardonnay Increase more than 10%
Sauvignon Blanc	Sauvignon Blanc Down 5%	Sauvignon Blanc Down 10%	Sauvignon Blanc Down more than 10%	Sauvignon Blanc Same	Sauvignon Blanc Increased 5%	Sauvignon Blanc Increased 10%	Sauvignon Blanc Increase more than 10%

Question Title

11. What do you think GRAPE PRICES will do in 2012 compared with 2011 in your primary district?

	Increase	Remain the same	Decrease
Cabernet Sauvignon	Cabernet Sauvignon Increase	Cabernet Sauvignon Remain the same	Cabernet Sauvignon Decrease
Merlot	Merlot Increase	Merlot Remain the same	Merlot Decrease
Pinot Noir	Pinot Noir Increase	Pinot Noir Remain the same	Pinot Noir Decrease
Syrah	Syrah Increase	Syrah Remain the same	Syrah Decrease
Chardonnay	Chardonnay Increase	Chardonnay Remain the same	Chardonnay Decrease
Sauvignon Blanc	Sauvignon Blanc Increase	Sauvignon Blanc Remain the same	Sauvignon Blanc Decrease
Pinot Grigio	Pinot Grigio Increase	Pinot Grigio Remain the same	Pinot Grigio Decrease

Question Title

12. What do you think will GRAPE PRICES do in 2013 compared with 2012 in your primary district?

	Increase	Remain the same	Decrease
Cabernet Sauvignon	Cabernet Sauvignon Increase	Cabernet Sauvignon Remain the same	Cabernet Sauvignon Decrease
Merlot	Merlot Increase	Merlot Remain the same	Merlot Decrease
Pinot Noir	Pinot Noir Increase	Pinot Noir Remain the same	Pinot Noir Decrease
Syrah	Syrah Increase	Syrah Remain the same	Syrah Decrease
Chardonnay	Chardonnay Increase	Chardonnay Remain the same	Chardonnay Decrease
Sauvignon Blanc	Sauvignon Blanc Increase	Sauvignon Blanc Remain the same	Sauvignon Blanc Decrease
Pinot Grigio	Pinot Grigio Increase	Pinot Grigio Remain the same	Pinot Grigio Decrease

Question Title

13. Because of the big supply shift this year, which of the following do you think will happen? (CHOOSE TOP THREE)

	Yes	Somewhat	No
Value wines will be harder to find	Value wines will be harder to find Yes	Value wines will be harder to find Somewhat	Value wines will be harder to find No
Bulk market prices will increase	Bulk market prices will increase Yes	Bulk market prices will increase Somewhat	Bulk market prices will increase No
The era of cheap wines will end	The era of cheap wines will end Yes	The era of cheap wines will end Somewhat	The era of cheap wines will end No
Fewer private labels	Fewer private labels Yes	Fewer private labels Somewhat	Fewer private labels No
Pricing pressure on existing wines will lessen	Pricing pressure on existing wines will lessen Yes	Pricing pressure on existing wines will lessen Somewhat	Pricing pressure on existing wines will lessen No
Increase in $20+ market	Increase in $20+ market Yes	Increase in $20+ market Somewhat	Increase in $20+ market No
More long term grape contracts will be offered	More long term grape contracts will be offered Yes	More long term grape contracts will be offered Somewhat	More long term grape contracts will be offered No

Other (please specify)

Question Title

14. Which of the following factors will have a POSITIVE IMPACT on Central Coast Wine Sales over the next 3 years? ( 1 equals no impact and 5 equals major impact)

	1	2	3	4	5
Improving economy	Improving economy 1	Improving economy 2	Improving economy 3	Improving economy 4	Improving economy 5
Appellation/regional identity	Appellation/regional identity 1	Appellation/regional identity 2	Appellation/regional identity 3	Appellation/regional identity 4	Appellation/regional identity 5
Authenticity/image	Authenticity/image 1	Authenticity/image 2	Authenticity/image 3	Authenticity/image 4	Authenticity/image 5
More grape contracts	More grape contracts 1	More grape contracts 2	More grape contracts 3	More grape contracts 4	More grape contracts 5
Compelling value for price	Compelling value for price 1	Compelling value for price 2	Compelling value for price 3	Compelling value for price 4	Compelling value for price 5
Increased Direct to consumer	Increased Direct to consumer 1	Increased Direct to consumer 2	Increased Direct to consumer 3	Increased Direct to consumer 4	Increased Direct to consumer 5
People returning to restaurants	People returning to restaurants 1	People returning to restaurants 2	People returning to restaurants 3	People returning to restaurants 4	People returning to restaurants 5
Bottle Price increases	Bottle Price increases 1	Bottle Price increases 2	Bottle Price increases 3	Bottle Price increases 4	Bottle Price increases 5
More demand than supply	More demand than supply 1	More demand than supply 2	More demand than supply 3	More demand than supply 4	More demand than supply 5
Return of large wineries buying more grapes	Return of large wineries buying more grapes 1	Return of large wineries buying more grapes 2	Return of large wineries buying more grapes 3	Return of large wineries buying more grapes 4	Return of large wineries buying more grapes 5

Question Title

15. What do you think will hold back or hinder the Central Coast Wine Industry over the next three years? (1 equals no concern and 5 equals great concern)

	1	2	3	4	5
Slow economic recovery	Slow economic recovery 1	Slow economic recovery 2	Slow economic recovery 3	Slow economic recovery 4	Slow economic recovery 5
Continued discounting	Continued discounting 1	Continued discounting 2	Continued discounting 3	Continued discounting 4	Continued discounting 5
No new plantings	No new plantings 1	No new plantings 2	No new plantings 3	No new plantings 4	No new plantings 5
Competition from imports	Competition from imports 1	Competition from imports 2	Competition from imports 3	Competition from imports 4	Competition from imports 5
Availability of credit	Availability of credit 1	Availability of credit 2	Availability of credit 3	Availability of credit 4	Availability of credit 5
Government regulations on distribution	Government regulations on distribution 1	Government regulations on distribution 2	Government regulations on distribution 3	Government regulations on distribution 4	Government regulations on distribution 5
Water availability	Water availability 1	Water availability 2	Water availability 3	Water availability 4	Water availability 5
Continued distributor consolidation	Continued distributor consolidation 1	Continued distributor consolidation 2	Continued distributor consolidation 3	Continued distributor consolidation 4	Continued distributor consolidation 5
Shortage of Grapes	Shortage of Grapes 1	Shortage of Grapes 2	Shortage of Grapes 3	Shortage of Grapes 4	Shortage of Grapes 5

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16. How did the CONSUMER change in 2011 compared with the past two years? SELECT FIVE

Dined out less often

Looking for affordable luxury

Traded down

Willing to try more new wines

More sophisticated

Drinking more sweet than dry

Drinking more red than white

Used more social media to make purchasing decisions

More interest in sustainability

Looking for more authenticity

Dined out more

Bought higher priced wines

Seeking more value

Question Title

17. How strong do you think sales for each WINE PRICE SEGMENT will be over the next three years? ( 1 equals very weak and 5 = very strong)

	1	2	3	4	5
$3-$7	$3-$7 1	$3-$7 2	$3-$7 3	$3-$7 4	$3-$7 5
$7-$10	$7-$10 1	$7-$10 2	$7-$10 3	$7-$10 4	$7-$10 5
$10-$14	$10-$14 1	$10-$14 2	$10-$14 3	$10-$14 4	$10-$14 5
$14-$20	$14-$20 1	$14-$20 2	$14-$20 3	$14-$20 4	$14-$20 5
$20-$25	$20-$25 1	$20-$25 2	$20-$25 3	$20-$25 4	$20-$25 5
Over $25	Over $25 1	Over $25 2	Over $25 3	Over $25 4	Over $25 5

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18. What percent of your 2011 grape contracts were (SHOULD EQUAL 100%)

Long Term (3-7) years

Short Term (1-2) years

No contract (spot market)

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19. What do you anticipate for your 2012 grape contracts (SHOULD EQUAL 100%)

Long Term (3-7) years

Short Term (1-2) years

No contract (spot market)

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20. Please answer YES or NO to the following social media questions.

	Yes	No
Do you have a Facebook page?	Do you have a Facebook page? Yes	Do you have a Facebook page? No
Do you have a blog?	Do you have a blog? Yes	Do you have a blog? No
Do you Twitter?	Do you Twitter? Yes	Do you Twitter? No
Are you Linked In?	Are you Linked In? Yes	Are you Linked In? No
Are you planning to increase use of social media?	Are you planning to increase use of social media? Yes	Are you planning to increase use of social media? No

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21. 16. Do you believe social media is increasing your sales ?

Yes

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22. 17. Do you believe social media has increased your profitability?

Yes

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23. What best describes your business for 2012? (CHOOSE 3-4 RESPONSES)

Retooling has paid off

Sales have increased

Hiring people

Basics improving

Planning for growth

Increasing marketing budget

Managing cash flow better

Focusing on supply

Planting more grapes

Have become more flexible

Business as usual

Increasing IT budget

Other (please specify)

Question Title

24. Please indicate what, if any, initiatives your winery or vineyard is taking to become more "green."

None

Sustainable or organic farming or purchasing grapes that were sustainable or organically farmed

Solar panels

Green marketing/messaging

Calculating your carbon footprint

Alternative packaging

Lighter bottles

Cleaner energy

Water conservation

Community outreach

Employee support & education

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25. Which areas of your business could require investment over the next three years?

Vineyard acquisition

Vineyard re-development

Information technology

Crush capacity

Fermentation capacity

Barrel storage capacity

Increase working capital

Case goods storage

Hiring- staff increase

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26. At the end of 2012, what do you think will be your top concerns?

Water availability

Distribution

Grape Shortage

Imports

Credit

Cost of materials

Climate change

Other (please specify)