2015 CCIS

1. 2015 Central Coast Insights Survey

Dear Wine Industry Member,

The Wine Industry Symposium Group will be presenting the 21st Annual Central Coast Insights Program on Thursday, March 12, 2015, at the Paso Robles Inn in Paso Robles.

Below you will find a Survey, the results of which will be presented at the event. We would greatly appreciate your time to complete the Survey.

It has been such an exciting year, with so many important issues and changes, and we think a comparison to previous years will be of great interest. In addition we are hoping to discover the compelling issues and topics that impact your business. All responses will be kept confidential as we are not collecting email addresses.

You can register to attend the Central Coast Insights event at www.winesymposium.com beginning January 14th.

Many thanks for helping us to make the results of this survey meaningful!

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1. Which category best describes your participation in the wine industry?

Winery only

Grower only

Winery & Grower

Grower making wine

Financial

Professional/Consultant

Other (please specify)

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2. Which county best describes your primary location?

Santa Barbara County

Monterey County

San Luis Obispo County

Santa Cruz County

San Joaquin County

North Coast Region

Other (please specify)

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3. How many vineyard acres do you own or lease in your primary location?

5 - 25 acres

26 - 100 acres

101 - 499 acres

500 or more acres

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4. Do you plan to replant or develop new vineyards in 2015? If so, why? If not, why not? Check all appropriate answers:

Yes, demand for Central Coast wine, as well as varietals that thrive in the region, continue to strengthen

Yes, contracts are available from wineries

Yes, we are able to compete in the global wine market

No, governmental and environmental regulations have made it too difficult

No, land is scarce and/or other crops have caused the land prices to rise

Yes, better rootstock, clones and tighter spacing

No, there is plenty of bulk wine

No, can't get any water

Yes, to change to different trellising and pruning to increase tonnage.

Other (please specify)

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5. What percent of your grapes ultimately end up in Central Coast Appellation wines?

0 - 25%

26 - 50%

51 - 75%

75 - 99%

100%

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6. How many cases do you expect to produce from the 2015 vintage?

1 - 4,999

5,000 - 14,999

15,000 - 49,999

50,000 - 499,999

500,000 +

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7. If you are increasing case production, by how much will you grow?

	No change	2%	5%	10%	Above 10%
Production	Production No change	Production 2%	Production 5%	Production 10%	Production Above 10%

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8. How much will you raise prices?

	No Change	2%	5%	10%	Above 10%
Prices	Prices No Change	Prices 2%	Prices 5%	Prices 10%	Prices Above 10%

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9. Which of the following best describe your business priorities for 2015?
(CHOOSE 4-5 RESPONSES)

Growth and increasing sales

Bolstering marketing budget and effort

Increasing capacity and processing facilities

More focus on direct to consumer sales

Studying water management

Increasing mechanization

Increasing technology in vineyards, winery and in sales

Looking for new distribution partners

Reducing cost of operations - oil prices help!

Improving sustainability performance

Succession planning

Question Title

10. What are the strengths of the Central Coast

Popular price points

Reasonable land prices compared to some other regions

Quality and value rank high for Central Coast wines

Popular Pinot Noir, Chardonnay and Cabernet varietals thrive on the Central Coast

Strong identity, and true authenticity

Exceptional wines, consistently lauded

Dynamic and passionate people

Diversity in micro-climates and soils

Talented winemakers in residence

Other (please specify)

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

	1	2	3	4	5
Improved economy and increased consumer confidence	Improved economy and increased consumer confidence 1	Improved economy and increased consumer confidence 2	Improved economy and increased consumer confidence 3	Improved economy and increased consumer confidence 4	Improved economy and increased consumer confidence 5
Appellation / regional identity / authenticity / image	Appellation / regional identity / authenticity / image 1	Appellation / regional identity / authenticity / image 2	Appellation / regional identity / authenticity / image 3	Appellation / regional identity / authenticity / image 4	Appellation / regional identity / authenticity / image 5
Increased demand for Central Coast grapes	Increased demand for Central Coast grapes 1	Increased demand for Central Coast grapes 2	Increased demand for Central Coast grapes 3	Increased demand for Central Coast grapes 4	Increased demand for Central Coast grapes 5
Compelling value to price ratio	Compelling value to price ratio 1	Compelling value to price ratio 2	Compelling value to price ratio 3	Compelling value to price ratio 4	Compelling value to price ratio 5
Increased direct to consumer sales	Increased direct to consumer sales 1	Increased direct to consumer sales 2	Increased direct to consumer sales 3	Increased direct to consumer sales 4	Increased direct to consumer sales 5
Increased local tourism	Increased local tourism 1	Increased local tourism 2	Increased local tourism 3	Increased local tourism 4	Increased local tourism 5
More sales outlets	More sales outlets 1	More sales outlets 2	More sales outlets 3	More sales outlets 4	More sales outlets 5
Increased national distribution; more states allowing wine purchases in food stores	Increased national distribution; more states allowing wine purchases in food stores 1	Increased national distribution; more states allowing wine purchases in food stores 2	Increased national distribution; more states allowing wine purchases in food stores 3	Increased national distribution; more states allowing wine purchases in food stores 4	Increased national distribution; more states allowing wine purchases in food stores 5
Supply/demand in relative balance	Supply/demand in relative balance 1	Supply/demand in relative balance 2	Supply/demand in relative balance 3	Supply/demand in relative balance 4	Supply/demand in relative balance 5
Increased use of social media	Increased use of social media 1	Increased use of social media 2	Increased use of social media 3	Increased use of social media 4	Increased use of social media 5
Consumer has traded up to put Central Coast in sweet spot	Consumer has traded up to put Central Coast in sweet spot 1	Consumer has traded up to put Central Coast in sweet spot 2	Consumer has traded up to put Central Coast in sweet spot 3	Consumer has traded up to put Central Coast in sweet spot 4	Consumer has traded up to put Central Coast in sweet spot 5

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12. Which of the following factors will have a NEGATIVE IMPACT on 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
Global wine competition	Global wine competition 1	Global wine competition 2	Global wine competition 3	Global wine competition 4	Global wine competition 5
Increased input costs	Increased input costs 1	Increased input costs 2	Increased input costs 3	Increased input costs 4	Increased input costs 5
Labor shortage	Labor shortage 1	Labor shortage 2	Labor shortage 3	Labor shortage 4	Labor shortage 5
Environmental constraints	Environmental constraints 1	Environmental constraints 2	Environmental constraints 3	Environmental constraints 4	Environmental constraints 5
Retailer/Distributor consolidation	Retailer/Distributor consolidation 1	Retailer/Distributor consolidation 2	Retailer/Distributor consolidation 3	Retailer/Distributor consolidation 4	Retailer/Distributor consolidation 5
Competition for shelf space	Competition for shelf space 1	Competition for shelf space 2	Competition for shelf space 3	Competition for shelf space 4	Competition for shelf space 5
Can't plant out or expand vineyards	Can't plant out or expand vineyards 1	Can't plant out or expand vineyards 2	Can't plant out or expand vineyards 3	Can't plant out or expand vineyards 4	Can't plant out or expand vineyards 5
Water supply issues	Water supply issues 1	Water supply issues 2	Water supply issues 3	Water supply issues 4	Water supply issues 5
Competition from other beverages such as craft beers	Competition from other beverages such as craft beers 1	Competition from other beverages such as craft beers 2	Competition from other beverages such as craft beers 3	Competition from other beverages such as craft beers 4	Competition from other beverages such as craft beers 5
Lack of capacity / production space	Lack of capacity / production space 1	Lack of capacity / production space 2	Lack of capacity / production space 3	Lack of capacity / production space 4	Lack of capacity / production space 5

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13. Three very large harvests have strained wine production capacity. In addition, in some areas custom crush and other production facilities have been purchased or consolidated, resulting in scarce production space.

Does your company plan to increase wine production?

Yes

How?

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14. How do your 2014 profits and revenues compare with 2013?

	Worse	Same	+ 2%	+ 5%	+ 10%	Above 10%
Profits	Profits Worse	Profits Same	Profits + 2%	Profits + 5%	Profits + 10%	Profits Above 10%
Revenues	Revenues Worse	Revenues Same	Revenues + 2%	Revenues + 5%	Revenues + 10%	Revenues Above 10%

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15. Looking to the future of the Central Coast, how do you think the DEMAND for these wine varietals will change from now through 2016?

	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

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16. Which price segments do you think will have the strongest growth over the next three years? (1 equals very weak and 5 equals 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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17. Drought: What does it mean for your business? ( Rank Importance 1 to 5, with 5 being very important).

	1	2	3	4	5
Lack of water for frost protection	Lack of water for frost protection 1	Lack of water for frost protection 2	Lack of water for frost protection 3	Lack of water for frost protection 4	Lack of water for frost protection 5
Lack of water for irrigation	Lack of water for irrigation 1	Lack of water for irrigation 2	Lack of water for irrigation 3	Lack of water for irrigation 4	Lack of water for irrigation 5
Potential low vineyard yield in 2015	Potential low vineyard yield in 2015 1	Potential low vineyard yield in 2015 2	Potential low vineyard yield in 2015 3	Potential low vineyard yield in 2015 4	Potential low vineyard yield in 2015 5
Impact on winery operations	Impact on winery operations 1	Impact on winery operations 2	Impact on winery operations 3	Impact on winery operations 4	Impact on winery operations 5
Investing in water saving technology	Investing in water saving technology 1	Investing in water saving technology 2	Investing in water saving technology 3	Investing in water saving technology 4	Investing in water saving technology 5
Looking at reclaimed waste water/alternatives	Looking at reclaimed waste water/alternatives 1	Looking at reclaimed waste water/alternatives 2	Looking at reclaimed waste water/alternatives 3	Looking at reclaimed waste water/alternatives 4	Looking at reclaimed waste water/alternatives 5
Effect on land prices	Effect on land prices 1	Effect on land prices 2	Effect on land prices 3	Effect on land prices 4	Effect on land prices 5
Concern of Lenders	Concern of Lenders 1	Concern of Lenders 2	Concern of Lenders 3	Concern of Lenders 4	Concern of Lenders 5
More regulations	More regulations 1	More regulations 2	More regulations 3	More regulations 4	More regulations 5
Environmental Impact	Environmental Impact 1	Environmental Impact 2	Environmental Impact 3	Environmental Impact 4	Environmental Impact 5
Fewer grapes/lower profits	Fewer grapes/lower profits 1	Fewer grapes/lower profits 2	Fewer grapes/lower profits 3	Fewer grapes/lower profits 4	Fewer grapes/lower profits 5
Change in wine flavors	Change in wine flavors 1	Change in wine flavors 2	Change in wine flavors 3	Change in wine flavors 4	Change in wine flavors 5

Other (please specify)

Question Title

18. How will the CONSUMER change in 2015 compared with the past two years? (Scale of 1 to 5 with 5 = biggest change)

	1	2	3	4	5
Your customers are now your firends	Your customers are now your firends 1	Your customers are now your firends 2	Your customers are now your firends 3	Your customers are now your firends 4	Your customers are now your firends 5
Increased use of Smart Phones, Social Media and the Online World for purchasing decisions	Increased use of Smart Phones, Social Media and the Online World for purchasing decisions 1	Increased use of Smart Phones, Social Media and the Online World for purchasing decisions 2	Increased use of Smart Phones, Social Media and the Online World for purchasing decisions 3	Increased use of Smart Phones, Social Media and the Online World for purchasing decisions 4	Increased use of Smart Phones, Social Media and the Online World for purchasing decisions 5
Some wine consumers are drinking more sweet, than dry, wine	Some wine consumers are drinking more sweet, than dry, wine 1	Some wine consumers are drinking more sweet, than dry, wine 2	Some wine consumers are drinking more sweet, than dry, wine 3	Some wine consumers are drinking more sweet, than dry, wine 4	Some wine consumers are drinking more sweet, than dry, wine 5
Consumers are dining out more, which should lead to increased wine sales	Consumers are dining out more, which should lead to increased wine sales 1	Consumers are dining out more, which should lead to increased wine sales 2	Consumers are dining out more, which should lead to increased wine sales 3	Consumers are dining out more, which should lead to increased wine sales 4	Consumers are dining out more, which should lead to increased wine sales 5
Consumers are searching for authenticity, are willing to spend more	Consumers are searching for authenticity, are willing to spend more 1	Consumers are searching for authenticity, are willing to spend more 2	Consumers are searching for authenticity, are willing to spend more 3	Consumers are searching for authenticity, are willing to spend more 4	Consumers are searching for authenticity, are willing to spend more 5
Bottle size and shape matters less	Bottle size and shape matters less 1	Bottle size and shape matters less 2	Bottle size and shape matters less 3	Bottle size and shape matters less 4	Bottle size and shape matters less 5
Generational Impact (Boomers more dominant, GenX and Millennials moving up)	Generational Impact (Boomers more dominant, GenX and Millennials moving up) 1	Generational Impact (Boomers more dominant, GenX and Millennials moving up) 2	Generational Impact (Boomers more dominant, GenX and Millennials moving up) 3	Generational Impact (Boomers more dominant, GenX and Millennials moving up) 4	Generational Impact (Boomers more dominant, GenX and Millennials moving up) 5
Will purchase more wine without corks	Will purchase more wine without corks 1	Will purchase more wine without corks 2	Will purchase more wine without corks 3	Will purchase more wine without corks 4	Will purchase more wine without corks 5
Consumers will continue to seek more value, affordable luxuries	Consumers will continue to seek more value, affordable luxuries 1	Consumers will continue to seek more value, affordable luxuries 2	Consumers will continue to seek more value, affordable luxuries 3	Consumers will continue to seek more value, affordable luxuries 4	Consumers will continue to seek more value, affordable luxuries 5
Looking for global wines/diversity of varietals	Looking for global wines/diversity of varietals 1	Looking for global wines/diversity of varietals 2	Looking for global wines/diversity of varietals 3	Looking for global wines/diversity of varietals 4	Looking for global wines/diversity of varietals 5
Willing to try more new wines, less likely to stay loyal to one brand	Willing to try more new wines, less likely to stay loyal to one brand 1	Willing to try more new wines, less likely to stay loyal to one brand 2	Willing to try more new wines, less likely to stay loyal to one brand 3	Willing to try more new wines, less likely to stay loyal to one brand 4	Willing to try more new wines, less likely to stay loyal to one brand 5

Other (please specify)

Question Title

19. List the percentage of your 2014 grape contracts in the following categories (SHOULD EQUAL 100%)

Long Term (3-7 Years)

Short Term (1-2 Years)

No Contract (Spot Market

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20. List the percentage of your 2015 grape contracts in the following categories (SHOULD EQUAL 100%)

Long Term (3-7 Years)

Short Term (1-2 Years)

No Contract (Spot Market

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

	Yes	No
Does your business have a Facebook page?	Does your business have a Facebook page? Yes	Does your business have a Facebook page? No
Does your business have a blog?	Does your business have a blog? Yes	Does your business have a blog? No
Does your business have a Twitter presence?	Does your business have a Twitter presence? Yes	Does your business have a Twitter presence? No
Do you have a business presence on LinkedIn?	Do you have a business presence on LinkedIn? Yes	Do you have a business presence on LinkedIn? No
Are you planning to increase use of social media for your business?	Are you planning to increase use of social media for your business? Yes	Are you planning to increase use of social media for your business? No
Do you believe that social media is increasing your sales?	Do you believe that social media is increasing your sales? Yes	Do you believe that social media is increasing your sales? No
Do you believe that social media has increased your profitability?	Do you believe that social media has increased your profitability? Yes	Do you believe that social media has increased your profitability? No

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22. Which areas of your business could require capital over the next three years?

Vineyard acquisition

Vineyard redevelopment

Information technology

Crush capacity

Fermentation capacity

Barrel storage capacity

Case goods storage

Visitor / hospitality center development

Other (please specify)

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23. What makes you happy with your lender? Scale of 1 to 5 with 5 = happiest

	1	2	3	4	5
Rates	Rates 1	Rates 2	Rates 3	Rates 4	Rates 5
Ease of Credit	Ease of Credit 1	Ease of Credit 2	Ease of Credit 3	Ease of Credit 4	Ease of Credit 5
Terms	Terms 1	Terms 2	Terms 3	Terms 4	Terms 5
Number of lenders interested	Number of lenders interested 1	Number of lenders interested 2	Number of lenders interested 3	Number of lenders interested 4	Number of lenders interested 5
Availability	Availability 1	Availability 2	Availability 3	Availability 4	Availability 5
Length of loans	Length of loans 1	Length of loans 2	Length of loans 3	Length of loans 4	Length of loans 5
Oversight more educational	Oversight more educational 1	Oversight more educational 2	Oversight more educational 3	Oversight more educational 4	Oversight more educational 5
Instructive Meetings	Instructive Meetings 1	Instructive Meetings 2	Instructive Meetings 3	Instructive Meetings 4	Instructive Meetings 5

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24. What do you think your top concerns will be at the end of 2015?

Water availability

Distribution

Big getting bigger

Cost of materials

Production capacity

Labor Availability

Global competition

Tax increases

More wineries

More Mergers

Succession

How we respond to large acreage pulled out of San Joaquin Valley

How to respond to consumer trading up

Lower Oil Prices not in sync with distribution cost reduction

Other (please specify)

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1. Which category best describes your participation in the wine industry?

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2. Which county best describes your primary location?

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3. How many vineyard acres do you own or lease in your primary location?

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4. Do you plan to replant or develop new vineyards in 2015? If so, why? If not, why not? Check all appropriate answers:

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5. What percent of your grapes ultimately end up in Central Coast Appellation wines?

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6. How many cases do you expect to produce from the 2015 vintage?

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7. If you are increasing case production, by how much will you grow?

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8. How much will you raise prices?

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9. Which of the following best describe your business priorities for 2015?(CHOOSE 4-5 RESPONSES)

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10. What are the strengths of the Central Coast

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

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12. Which of the following factors will have a NEGATIVE IMPACT on the Central Coast Wine Industry over the next three years? (1 equals no concern and 5 equals great concern)

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13. Three very large harvests have strained wine production capacity. In addition, in some areas custom crush and other production facilities have been purchased or consolidated, resulting in scarce production space.Does your company plan to increase wine production?

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14. How do your 2014 profits and revenues compare with 2013?

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15. Looking to the future of the Central Coast, how do you think the DEMAND for these wine varietals will change from now through 2016?

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16. Which price segments do you think will have the strongest growth over the next three years? (1 equals very weak and 5 equals very strong)

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17. Drought: What does it mean for your business? ( Rank Importance 1 to 5, with 5 being very important).

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18. How will the CONSUMER change in 2015 compared with the past two years? (Scale of 1 to 5 with 5 = biggest change)

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19. List the percentage of your 2014 grape contracts in the following categories (SHOULD EQUAL 100%)

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20. List the percentage of your 2015 grape contracts in the following categories (SHOULD EQUAL 100%)

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

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22. Which areas of your business could require capital over the next three years?

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23. What makes you happy with your lender? Scale of 1 to 5 with 5 = happiest

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24. What do you think your top concerns will be at the end of 2015?

9. Which of the following best describe your business priorities for 2015?
(CHOOSE 4-5 RESPONSES)

13. Three very large harvests have strained wine production capacity. In addition, in some areas custom crush and other production facilities have been purchased or consolidated, resulting in scarce production space.

Does your company plan to increase wine production?