Trinchero Family Estates

3. Sutter Home Winery was shut down during Prohibition. It remained
abandoned until 1947, when it was purchased by Mario and John Trinchero.
They were immigrant brothers from NYC whose family had long been active
in the Italian wine business.
Mario Trinchero
Mario and Mary Trinchero with their
children Bob, Vera and Roger

4. The 1950s and 1960s
Bob Trinchero
Sutter Home Winery

5. 1972: While experimenting with new ways to make his Zinfandel more robust, Bob drew
off some of his free-run juice and fermented it as a “white” wine. When the first vintage
of Oeil de Pedrix (Eye of the Partridge) was released it became an instant hit and all 220
cases sold out.
1975: The family changed the name of their successful pink wine to White Zinfandel and
in 1987, it became the best selling premium wine in the USA!
Roger, Mario, and Bob Trinchero

8. 






Source: Nielsen Total US Food Data 26 weeks ending 10/12/13*Gomberg Fredrickson.

14. 




16. $55.8
$30.7
$10.0
TTL SPIRITS
Source: Nielsen: Total US Retail Plus 52 Wks Ending 11/9/13
$13.1
TTL WINE
TTL BEER
TTL ALCH BEV

17. Source: Nielsens Total Retail

18. MUSCAT/MOSCATO
5.1%
SAUV BLANC/FUME
3.6%
PINOT NOIR
3.6%
OTHER RED BLEND
6.2%
MERLOT
7.5%
WHITE ZINFANDEL
OTHER
OTHER SPARKLING
5.0%
CHAMPAGNE
1.9%
1.6%
OTHER RED
2.8% RIESLING
1.6%
MALBEC
1.4% OTHER WHITE BLEND
2.5%
ZINFANDEL
1.0%
30.0%
19.3%
20.0%
13.4%
11.3%
12.2%
10.1%
3.7%
10.0%
9.5% 9.1%
8.0%
4.6%
2.5%
0.0%
PINOT GRIGIO/PINOT
GRIS
8.5%
ALL OTHER
18.8%
(0.3%)
(0.6%)
(2.2%)
(4.9%)
(10.0%)
CABERNET SAUVIGNON
10.6%
CHARDONNAY
18.1%
*Other Red Blends includes Sweet Reds
**Other Reds does not include any blends, only lesser known single varietals
Source: Total Retail 26 4 WEEKS ENDING 10/12/13
(8.5%)

20. 5 LITERS , 4.1%
3 LITERS , 3.6%
187 MILLITERS
, 2.2%
296 MILLITERS
, 0.9%
4 LITERS , 1.1%
1 LITERS , 0.3%
500 MILLITERS
, 0.6%
1.5 LITERS
, 19.1%
375 MILLITERS
, 0.3%
30.0%
24.2%
20.0%
10.0%
5.1%
1.7% 3.8%
6.0% 5.1%
0.1%
0.0%
(10.0%)
(3.2%)
(20.0%)
(22.0%)
(30.0%)
(40.0%)
750 MILLITERS
, 67.9%
Source: Total Retail 26 4 WEEKS ENDING 10/12/13
(31.3%)

21. 20.0%
14.8%
$3-5.99
34.9%
$0-2.99
7.2%
11.9%
$20+
4.2%
10.0%
10.6%
8.8%
$15-19.99
5.8%
$12-14.99
10.7%
$6-8.99
14.5%
$9-11.99
22.6%
Source: Total Retail 26 4 WEEKS ENDING 10/12/13
1.2%
0.0%
(2.8%)
(10.0%)
1.3%

22. 25%
24%
21.0%
20%
Total Wine
17%
Cases +0.6%
14%
15%
10%
5%
4%
1%
1%
1%
1%
1%
BOGLE VINEYARDS
FETZER VINEYARDS
1%
BRONCO WINE COMPANY
1%
DIAGEO
2%
PALM BAY INTERNTL
2%
BANFI VINTNERS
4%
STE MICHELLE ESTATES
5%
0%
JACKSON
FAMILY
WINES
DFV WINES
PALM BAY
INTERNTL
DIAGEO
BRONCO
BOGLE
FETZER
WINE
VINEYARDS VINEYARDS
COMPANY
Case
Growth
1%
-4%
5%
1%
-1%
5%
7%
-3%
4%
22%
0%
-10%
-19%
20%
0%
Price
Change
$ 0.25
$ 0.16
$(0.05)
$ 0.22
$ (0.12)
$ 0.01
$ 0.28
$ 0.07
$(0.10)
$ 0.24
$ 0.14
$ 0.53
$ 0.14
$(0.09)
$ 0.07
Source: Nielsen 52 weeks ending 10/12/13
All Others
STE MICHELLE
BANFI
ESTATES
VINTNERS
DFV WINES
DEUTSCH
FAMILY
JACKSON FAMILY WINES
TREASURY
WINE ESTATES
DEUTSCH FAMILY
TRINCHERO FAMILY
TRINCHERO
FAMILY
TREASURY WINE ESTATES
CONSTELLATION
THE WINE CONSTELLAT
GROUP
ION
THE WINE GROUP
E&J GALLO
E&J GALLO

23. (10.0%)
0.0%
10.0%
E&J GALLO
4.6%
CONSTELLATION
4.0%
THE WINE GROUP
2.2%
TRINCHERO FAMILY
2.8%
TREASURY WINE ESTATES
(2.2%)
DEUTSCH FAMILY
5.6%
STE MICHELLE ESTATES
9.3%
JACKSON FAMILY WINES
5.7%
BANFI VINTNERS
DIAGEO
(1.5%)
(4.4%)
Source: Nielsens Total Retail 26 4 WEEKS ENDING 10/12/13
20.0%

24. •
•
•
•
•
•
•
•
Source: Total Retail 26 4 Weeks Ending 10/12/13

25. % Beer
% Wine
% Liquor
1994
71
14
13
2013
41
24
28
Change
-30
10
15
Source: Gallup Poll, Aug. 2013

26. Key Bev-Al Category Trends
Consume Differently
• Nostalgic, Authentic, Local
• New is good; new brands, new flavors, new formats
Sweet and Decadent
• Sweeter wines(red blends, Moscatos) flavored spirits and
liqueurs
• RTD Cocktails and mixers (pouch, glass, plastic)
Beyond Beer
• Premiumization; dark, craft, local
• Ciders, shandys, premium FMB’s
Source: Nielsen Scantrack - Total U.S. – All Outlets Combined ; 52 w/e 7-20-2013 versus prior year;
UPC-coded; 119 categories (>$100MM annually)
Bev Al; 52 w/e 5-25-2013; Nielsen Food, Drug, Mass, Walmart, Club, Dollar, Conv, Military
Note: Spirits excludes WA State

27. items
More Access Points
• Emerging channels; Convenience, Dollar Stores, Drug
• DTC, $1.46 B, growing at 10%
Source: Nielsen Scantrack - Total U.S. – All Outlets Combined ; 52 w/e 10-14-2013 versus prior year;
UPC-coded; 119 categories (>$100MM annually)
Bev Al; 52 w/e 5-25-2013; Nielsen Food, Drug, Mass, Walmart, Club, Dollar, Conv, Military
Note: Spirits excludes WA State

28. Key Retail Marketing Trends
Loyalty/Rewards Program
• E-coupons
• Fuel Rewards Programs
Private Label/Control Label
• Margin Makers
• Differentiation
Account Specific – Shopper Marketing
• Dunhumby/News America/In-store Radio
• Catalina
Source: Nielsen Scantrack - Total U.S. – All Outlets Combined ; 52 w/e 7-20-2013 versus prior year;
UPC-coded; 119 categories (>$100MM annually)
Bev Al; 52 w/e 5-25-2013; Nielsen Food, Drug, Mass, Walmart, Club, Dollar, Conv, Military
Note: Spirits excludes WA State

31. Italy
454
France
450
Spain
350
USA
307
China
154
Argentina
131
Australia
128
South Africa
121
Chile
111
Germany
99
0
100
200
300
Millions of Cases Produced
Source: Trade Data and Analysis
400
500

32. *In Millions of US$
+9%
$1,600
$1,410
$1,400
$1,234
$1,200
$1,000
$1,291
$974
$930
$800
$800
$600
$400
$200
$0
2008
2009
2010
Source: Dept. of Commerce, Excludes re-exports of imported wines, 2013
results adjusted for apparent $70 million reporting error
2011
2012
2013

36. •
•
•
•

37. •
•
•

38. • Declining consumer confidence, the government shutdown, and economic uncertainty
have resulted in slower sales growth.
• Competition for market share from non-wine beverages. Craft beers, craft
distilleries, and RTDs are grabbing share from the category.
• Channel blurring gives the consumer more options. Food store scan results are less of
an impact today with the growth of chains like Costco, BevMo, Cost Plus & Trader Joes
that are not reported.
•
Muscat/Moscato trends are slowing. White Moscato sales are down in major
retail, but pink and red Moscatos are still showing small growth.
• Economy wine sales are off especially in large size formats.

39. 4500000
20%
4000000
35%
21%
-3%
3500000
-16%
3000000
-8%
-7%
4%
-6%
-3%
2500000
White
Red
2000000
Total
1500000
1000000
500000
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

40. Coastal
Interior
2003
2004
2005
2006
2007
2008
2009
2010
Source: California Department of Food & Agriculture. Prepared by Gomberg Fredrickson & Associates
2011
2012

46. 
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47. 
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






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50. •
•
•
•