The Grapes & Grain Opinion Panel, with over 10,000 members, is the largest consumer panel in North America dedicated to wine and spirits drinkers. The panel was created by Merrill Research in the summer of 2011 and new respondents are continuously added. Participants remain highly engaged as they are not inundated with surveys and are only surveyed about wine or spirits by Merrill Research. Objectives Insight was sought about core (weekly+) wine drinkers in order to provide guidance to wine producers and resellers. Study objectives were to gain the following information about core wine drinkers: – Wine consumption and purchase behavior – Price and value attitudes – Initial understanding of wine brand advocates – Restaurant purchase and consumption dynamics – Path-to-Purchase , including digital and social media behavior

1. 2016 Merrill Wine Monitor
–The US Wine Consumer-­
Merrill Research LLC
November 2016

2. © Copyright 2016 Merrill Research LLC
Table of Contents Pages
q Introduction
Ø Merrill Research 4
Ø Background & Objectives 5-­6
Ø Methodology, Target Audience & Segment Definitions 7-­9
q Executive Summary
Ø Key Findings & Implications 11-­23
Ø Segment Profiles 24-­28
Ø Key Trends 29-­34
q Detailed Findings
Ø Wine Consumption & Purchase Behavior 36-­49
Ø Price/Value Attitudes & Price Sensitivity 50-­53
Ø Brand Advocacy 54-­56
Ø Restaurant Purchase & Consumption Dynamics 57-­64
Ø Path-­To-­Purchase, Including Digital & Social Media Behavior 65-­78
q Appendix
Ø Media Habits 80-­82
Ø Study Participant Profile 83-­87
Ø Statistical Notations 88-­89
2

3. © Copyright 2016 Merrill Research LLC
Introduction

4. © Copyright 2016 Merrill Research LLC
About Merrill Research
– Patrick Merrill founded Merrill Research (San Mateo, CA) in
1986 after a career that included positions in the marketing
research departments at Heublein Wines and the Joseph
Schlitz Brewing Company. No firm has more experience in
helping connect wine marketers with the attitudes of wine
consumers than Merrill Research.
– For 30 years Merrill Research has worked extensively in the
wine, spirits and beer categories for small and large brands,
domestic and imports, regional and global appellations,
distributors, importers and leading industry associations
(e.g., Napa Valley Vintners, Wine Market Council).
– Our work includes both quantitative and qualitative research
projects and custom and syndicated projects,
– Merrill earned his MBA from the University of Illinois with an
emphasis in Marketing and Quantitative Analysis after
earning his BA degree in Business Administration.

5. © Copyright 2016 Merrill Research LLC
Background & Objectives
5

6. © Copyright 2016 Merrill Research LLC© Copyright 2016 Merrill Research LLC
Background & Objectives
The Grapes & Grain Opinion Panel, with over
10,000 members, is the largest consumer panel
in North America dedicated to wine and spirits
drinkers.
The panel was created by Merrill Research in
the summer of 2011 and new respondents are
continuously added. Participants remain highly
engaged as they are not inundated with
surveys and are only surveyed about wine or
spirits by Merrill Research.
Insight was sought about core (weekly+) wine
drinkers in order to provide guidance to wine
producers and resellers.
Study objectives were to gain the following
information about core wine drinkers:
– Wine consumption and purchase behavior
– Price and value attitudes
– Initial understanding of wine brand advocates
– Restaurant purchase and consumption
dynamics
– Path-­to-­Purchase , including digital and social
media behavior
ObjectivesBackground
6

7. © Copyright 2016 Merrill Research LLC
Methodology, Target Audience
& Segment Definitions
7

8. © Copyright 2016 Merrill Research LLC© Copyright 2016 Merrill Research LLC
Methodology
• Online survey, executed November-­December 2015
• N=901 respondents
– Age 21 and older
– Core wine drinkers: drink wine at least once per week
– Responsible for purchasing wine at retail for household
– Purchased 2+ bottles of wine (750 ml) in a store in the past 6 weeks
• Data are weighted by age and gender to mirror the wine drinking
population
• Where appropriate, findings are compared to results from previous
survey waves conducted among the same audience
– Wave 4: November 2014
– Wave 3: November 2013
• Very similar surveys were conducted in November/December of 2011
and 2012.
8

9. © Copyright 2016 Merrill Research LLC© Copyright 2016 Merrill Research LLC
Segment Definitions
9
Individual respondent segments of interest are identified as follows:
• Age cohorts:
• Millennials: 21 – 34
• GenXers: 35 – 50
• Boomers: 51 – 69
• Silent/Greatest Generation: 70+
• Affluent: $150k+ household income
• Ultra Premium Wine Buyers*: Frequently buy $25+ bottles of wine
• Frequent Wine App Users: Use wine app > 1/month
• Frequent Online Wine Buyers: Purchase online 1+/month
• Frequent Direct to Consumer (DTC) Wine Buyers: Purchase 20% or more from
wineries
* http://www.marketingwine.com/industry_overview.htm

10. © Copyright 2016 Merrill Research LLC
Executive Summary