2. HOW TO POSITION CARMENERE FOR SUCCESS IN THE U.S.A. November 25, 2009 1 Bruce Schneider CEO Schneider Selections

3. U. S. A. WINE MARKET 2

4. CONSUMPTION GREW RAPIDLY 2001-2007 Still Grew by 0.9% in 2008 Despite Recession Sources: Impact Databank 2008, 2009 Wine Handbook Millions of nine-liter cases 3

6. (69.4 million none-liter case shipments = 100%) Source: Gomberg Fredrikson 2008 U.S. IMPORTS BY COUNTRY 4

7. SUMMARY 2007 VS. 2008 BOTTLED IMPORTED SHIPMENTS Volume and Average Price Increasing for Chile Argentina Growing Rapidly, Most Others Declining Source: Annual Gomberg Frederickson Report, December 2008 8 Country % Change Shipments in Cases % Change Value in Dollars France -12 % 6 % Italy -9 % 0 % Spain 2 % 4 % Germany -5 % 2 % Portugal 2 % 13 % New Zealand - 4 % -2 % South Africa - 18 % -10 % Argentina 31 % 32 % Australia -7 % -14 % Chile 2 % 4 % Total -5 % 0 %

8. SIX MONTHS ENDED 2009 vs. 2008 BOTTLED IMPORTED SHIPMENTS Global Pricing  Chile: Volume  Average Price Consumers Trading Down, New World Benefits Source: Annual Gomberg Frederickson Report, June 2009 = 10 Country % Change Case Volume YTD % Change Imported Value YTD France -7 % -31 % Italy -5 % -18 % Spain -7 % -23 % Germany -13 % -23 % Portugal 8 % -8 % New Zealand 9 % 9 % South Africa 17 % 1 % Argentina 37 % 32 % Australia -7 % -12 % Chile 26 % 26 % World Total -1 % -15 %

9. TOP STATES FOR CHILEAN WINES 1) New York 2) Florida 3) New Jersey 4) Texas 5) California 6

10. FASTEST GROWTH IN $3-7 SEGMENT After several years of $10+ growing faster than under $10, situation has reversed Source: Gomberg Frederickson Report, March 2009 13

12. U.S. WINE MARKET Market Structure 17

13. U.S.THREE-TIER MARKET STRUCTURE 18 Source: The Business of Wine * In Some states, companies can act as importer and distributor Non-U.S. Producer * Importer On/Off Premise Trade Consumer 1st Tier 2nd Tier * Distributor 3rd Tier

14. U.S. WINE MARKET 50 Different Markets 50 Different Sets of Laws 19

15. U.S. WINE MARKET Grape Variety Trends 17

16. MOST POPULAR VARIETALS IN U.S. FOOD STORES Chardonnay and Cabernet Continue to Grow From Large Base Merlot Remains #3 as Sales Stabilize 15

17. IMPORTED TABLE WINE CONSUMPTION BY VARIETAL 2001 VS. 2007 Source: Impact Databank 2008 Total Share of Top 9 Varietals Increases from 46% to 63% 41.9 million nine-liter cases= 100% 265 million nine-liter cases = 100% 14

18. GLOBAL VARIETIES & TOP ORIGINS IN U.S. MARKET Source: Gomberg/AC Nielsen 3-28-09

19. REGIONAL VARIETIES WITH DOMINANT ORIGINS IN U.S. MARKET (80% + Market Share)

20. DOMINANT REGION/COUNTRY IDENTIFICATIONS WITH GRAPE VARIETIES The New World Successes 23 ARGENTINA = Malbec AUSTRALIA = Shiraz NEW ZEALAND = Sauvignon Blanc (First Brand: Cloudy Bay) CALIFORNIA = Chardonnay & Cabernet

22. WHAT IS THE POTENTIAL FOR CHILEAN CARMENERE? 24 AND HOW DO WE POSITION IT FOR THE U.S. & WORLD MARKETS?

23. Wine Style/Quality: Needed Improvement Majority were overly herbaceous for U.S. consumers. Sales: Very low Less than 50,000 cases Image & Awareness: None Unknown but had a great story to tell. Identity Within Chile: Controversial Is Carmenere Chile’s signature grape variety? CARMENERE’S POTENTIAL FOR THE U.S. 2005 26

24. 25 Wine Style/Quality: Significant improvement. More to do. Majority exported have crossed critical fruit/ripeness frontier. Sales: Increasing rapdly. +69% Projected to be approximately 300,000 cases in 2009 Image & Awareness: Still Low But gaining rapidly with trade and media influencers Identity within Chile: Clearer and More Confident Carmenere is Chile’s signature variety and offers Chile the best opportunity to establish a clear identity in the global wine market. CARMENERE’S POSITION IN THE U.S. 2009

25. CHILEAN EXPORTS TO U.S. BY VARIETY Cabernet Sauvignon and Sauvignon Blanc Still King & Queen Carmenere Fastest Growing Varietal: +69%

26. 2008 CONSUMER RESEARCH Carmenere Gets Highest Value Rating

27. CARMENERE IN THE U.S. MEDIA INCREASED VOLUME OF MENTIONS 2004-2009 Source: Dow Jones Factiva Database of Daily Newspapers

28. CARMENERE IN THE U.S. MEDIA Significant Increase in Positive Feature Stories

29. CARMENERE IN THE U.S. MEDIA Significant Increase in Positive Feature Stories “ Top Chilean vintners are still producing outstanding Cabernet Sauvignon and Carménère….” -Wine Spectator , May 15, 2007 “ From Chile, History in a Bottle: …perhaps a key to Chile’s future success is Carmenere” - New York Times , November, 2007 “ Wine Spectator’s #1 Wine of the Year, Casa Lapostolle Clos Apalta” -Wine Spectator, December, 2008

30. CARMENERE IN THE U.S. MEDIA Significant Increase in Positive Feature Stories “ The Next Grape Superstar?: Carmenere, a neglected grape in France that is thriving in Chile, may be the next big thing in wine.” - Chicago Tribune, March 25, 2009 “ Late Bloomer: In Chile, a long-lost grape is finally getting the attention it deserves” -Saveur, November 2009 “ Carmenere: A Great Value Facing Risks” -Wall Street Journal, November 22, 2009

31. CARMENERE’S IMAGE WITH SOCIAL MEDIA INFLUENCERS “ I love the idea of this grape, the story of Carmenere – it’s the stuff of which wine legends are made….So what’s the trouble? The tale spun about the lost grape Carmenere is a lot more compelling than the wine it is producing…” I’ve been critical of Chile’s ability to deliver on the potential of the grape as they’d yet to get pyrazine under control and balanced with the grape’s dark fruit flavors…. So, how were the wines? In summary: a mixed bag…” - 1WineDude , Joe Roberts, November 2009

32. CARMENERE GETS HIGH MARKS FOR QUALITY AND VALUE FROM TRADE

33. CARMENERE - TOP OF MIND WITH TRADE “ Interesting & Different”

34. CARMENERE’S IMAGE WITH U.S. TRADE INFLUENCERS “ As Piedmont has Nebbiolo, the Russian River Valley in Sonoma has Pinot Noir, and Argentina has Malbec, Carmenere seems to be the best varietal for Chile to identify itself as a serious wine producing country, to differentiate itself from the rest, and also to show its quality potential. Carmenere makes the most sense for several reasons: it can make wine in a wide range of pricing and styles , has ageing potential , is collectable, and is not per se the “specialty” of many other wine regions.” -Belinda Chang, Master Sommelier & Wine Director The Modern Restaurant, New York

35. CARMENERE’S IMAGE WITH U.S. TRADE INFLUENCERS “ I went to Chile last year and was really big on Carmenère . I was offering two Carmenères by the glass. I like featuring everything but the usual grapes. It starts conversations.” -Fernando Beteta, Master Sommelier & Wine Director Hyatt Chicago's NoMi Restaurant Wine Spectator Interview, June 2009

39. EXAMPLES OF GRAPE PROMOTIONAL ORGANIZATIONS http://www. ipnc .org/ http://www. rhonerangers .org/ http://www. drinkriesling .com/ http://www.zinfandel.org/

40. MUCHAS GRACIAS! [email_address]