FOR ORGANIC STILL WINE 2012-22 January 2019 CONTEXT ORGANIC WINE - - PowerPoint PPT Presentation

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FOR ORGANIC STILL WINE 2012-22 January 2019 CONTEXT ORGANIC WINE - - PowerPoint PPT Presentation

Jun 03, 2023 630 likes •977 views

THE GLOBAL MARKET FOR ORGANIC STILL WINE 2012-22 January 2019 CONTEXT ORGANIC WINE 2012-17 ORGANIC WINE 2017-22 2 Global consumption of still wine e is largely flat but different regions tell differe erent stories es. The market is

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SLIDE 1

THE GLOBAL MARKET FOR ORGANIC STILL WINE 2012-22

January 2019

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SLIDE 2

2

CONTEXT ORGANIC WINE 2012-17 ORGANIC WINE 2017-22

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SLIDE 3

2,42 2,39 2,43

1 2 3

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

GLOBAL STILL WINE CONSUMPTION 2012-22 22 (BILLIONS 9L CASES)

Global consumption of still wine e is largely flat but different regions tell differe erent stories

  • es. The market is

forecast to rebound slightly in 2017-22, growing by 35m cases.

Source: The IWSR Excludes Travel Retail *Africa & Middle East

3

Vo Vol 2017 CAGR GR 201 012-17 17 CAGR GR 201 017-22 22 Local 1.61

  • 0.6%

0.3% Imported 0.78 0.6%

  • 0.2%

Total al 2.39

  • 0.2%

2% 0.3% 3%

  • 1%

0% 1% 2% 3% 4%

AME* AMERICAS APAC CIS EUROPE

CAGR 2012-2017 CAGR 2017-2022

A VA VARIED IED LANDS DSCAPE

TOTAL L STILL LL WINE

2015 - Year of Chang nge

Market shifts from decline to growth:

  • Start of recovery in China, Italy.
  • Growth in Germany, Argentina.
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SLIDE 4

Where there was growth, it has been slow. The US US is a key driving force for the global industry. Major established markets German many, Fr France ce and UK UK have been declining.

4

[CELLRANGE]

  • 5%

0% 5% 10% 15% 20% 25% 30% 35% 40%

  • 3%
  • 2%
  • 1%

0% 1% 2%

TOP 10 10 GLOB LOBAL L STILL LL WINE E MARKET ETS 201 017 7 VS 5-YR YR CAGR GR 2012 12-17 17 M A R K E T S H A R E

5-yr VOLUME GROWTH 5-yr VOLUME DECLINE

UNITED STATES Size: 318m cases CAGR: 1.0% Mkt Share: 13.3% FRANCE Size: 250m cases CAGR: -1.6% Mkt Share: 10.5% GERMANY Size: 225m cases CAGR: -0.7% Mkt Share: 9.4% UK UK Size: 114m cases CAGR: -1.8% Mkt Share: 4.8%

Source: The IWSR Excludes Travel Retail

TOTAL L STILL LL WINE

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SLIDE 5

SOME ME KEY Y THEME MES

CHANGI GING G OF THE GUARD

  • Young Winemakers / New Drinkers
  • Shifting habits
  • Millennials

TRENDSET SETTING USA

  • Leading Growth / Innovation
  • Category Blur
  • Premiumisation

NEW ‘NORMAL’ IN EUROPE

  • France, Germany, UK
  • Premiumisation
  • ‘Brexit’

5

MAINSTR TREAM AMISATI TION ON

  • Rise of Affordable Wines
  • Spain & Chile
  • China & other Emerging Markets

ROSÉ

  • ‘Millennial Pink’
  • Brosé/Frosé
  • #Roséallday

INNOV OVATI TION ON

  • New Packaging / New Finishes
  • New Occasions
  • Branding

Source: The IWSR Excludes Travel Retail

TOTAL L STILL LL WINE

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SLIDE 6

Looki king Ahea ead, overall still wine development is forecast to be flat at a CAGR of 0.3% in 2017-22. The

  • utlook for imports

s is more posi sitive ve, especially in emerging ma marke kets.

Growt

  • wth

h Mar arkets 2017-22 22 (Mns 9l cases)1 COUNT NTRY Vo Volum ume 201 017 Vo Volum ume 2022 22 CAGR GR 2017- 22 22 US 318.2 332.5 0.9% Russia 65.4 76.0 3.1% Brazil 32.4 38.5 3.5% Angola 3.6 8.9 19.8% Ukraine 10.5 14.0 5.9% Portugal 46.4 49.8 1.4% Canada 47.1 50.4 1.4% Romania 50.3 53.4 1.2% Poland 12.2 15.0 4.2% Australia 53.2 55.6 0.9% Others 1,751.9 1,732.3

  • 0.2%

Total al 2,391.2 2,426.3 0.3% 3% Impor

  • rted Grow
  • wth

h Markets 2017-22 22 (Mns ns 9l cases)1 COUNT NTRY Vo Volum ume 201 017 Vo Volum ume 2022 22 CAGR GR 2017- 22 22 China 61.4 89.7 7.9% Russia 25.4 40.8 10.0% Angola 3.6 8.9 19.8% Brazil 11.3 16.0 7.3% Poland 12.2 14.9 4.1% US 79.9 82.2 0.6% Canada 33.9 36.0 1.2% Nigeria 2.5 3.6 7.8% Japan 24.0 24.9 0.7% Namibia 2.5 3.3 6.1% Others 528.0 512.8

  • 0.6%

Total al 784.5 833. 3.1 1. 1.2%

6

Source: The IWSR Excludes Travel Retail 1. Sorted by actual growth

TOTAL L STILL LL WINE

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SLIDE 7

CONTEXT ORGANIC WINE 2012-17 ORGANIC WINE 2017-22

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SLIDE 8
  • A wine can be defined “Organic” when it is produced according to the Regulation of the European Commission (EC) no. 203/2012, that is: (in the

vineyard) produced from “organic” grapes;(in the cellar) produced using only products and processes authorized by the Regulation (EC) No 203/2012. Until 2012, there were no EU rules or definition of “organic wine”. Only grapes could be certified organic and only the mention “wine made from organic grapes” was allowed. In February 2012, new EU rules have been agreed. The new regul ulat ation

  • n has ident

ntified oenol

  • logical

cal techn hnique ues and substance ances to be author horized for organi anic c wine ne, incl clud uding ng a maximum um sulphi hite cont ntent nt (set at 10 100 0 mg per litre for red wine ne and and 15 150 0 mg/L L for white/ros

  • sé).

). (Source: http://wineobservatorysustainability.eu/en/sharing/Organic-Wine-EU-certification.112/)

  • Before wine can be sold as organic, both the growing of the grapes and their conversion to wine must be certified. This includes making sure grapes

are grown without synthetic fertilizers and in a manner that protects the environment and preserves the soil. Other agricultural ingredients that go into the wine, such as yeast, also have to be certified organic. Any non-agricultural ingredients must be specifically allowed on the National List of Allowed and Prohibited Substances (see Allowed and Prohibited Substances) and can’t exceed 5% of the total product. And, while wine ne natur ural ally y produces some sulphur dioxide (sulphites), they can’t be added to organic wine. Sulphites are commonly added to wines to stop the fermentation process or preserve the flavour profile. (Source: https://www.usda.gov/media/blog/2013/01/08/organic-101-organic-wine)

BUT FIRST – Sulphites: A Tale of Two Conventions

8

ORGANIC NIC STILL WINE ORGANIC NIC STILL WINE

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SLIDE 9

???

EU Organic Winemaking Fr Framework

US / Canada da Legislat lation

  • n

Certif ific icat ation ion / Trade ade Bodie ies BUT FIRST – How do we define organic?

Source: The IWSR

ORGANIC NIC STILL WINE ORGANIC NIC STILL WINE

9

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SLIDE 10

Global orga ganic c still wine consumption has been growing at double-digi gits s since 2012 reaching 56m m cases in 2017. Much of this impetus is from Europe which accounts for three-quarters of all consumption.

21, 1,4 25,1 31, 1,3 35,7 40,4 43,6 4,1 4,2 4,6 5,1 5,6 6,3 3,3 3,9 4,4 4,8 5,1 5,5 0,1 0,2 0,3 0,4 0,5 0,6 0,2 0,2 0,2 0,2 0,2 0,3

10 20 30 40 50 60 70 80

2012 2013 2014 2015 2016 2017

GLOBAL ORGANIC STILL WINE CONSUMPTION 2012-17 17

(MILLIONS 9L CASES)

CIS AME* APAC Americas Europe CAGR GR 2012 12-17 17

Source: The IWSR Excludes Travel Retail *Africa & Middle East

10

ORGANI NIC STILL LL WINE 77 77% 11% 10 10% 1% 1% 0,4% SHARE E BY REGI GION ON 2017

2017 56.3m cases

29.1 33.6 .6 40.7 .7 46.2 .2 51.9 56.3 .3

+4.0% 0% +52. 2.5% 5% +10. 10.6% 6% +9.1% 1% +15 15.3% 3% +14.1% 1%

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SLIDE 11

Four of the world’s biggest organic wine consumers are in Europe – German many, Fr France, UK UK and Swed eden. Combined they account for well over half of net growth over the past five years.

Leading Mar arkets 201 017 7 (Mns 9l cases) Rk Rk COUNT NTRY Vo Volum ume 201 017 Share 2017 CAGR GR 2012 12- 17 17 1 Germany 13.5 23.9% 17.9% 2 France 9.3 16.4% 15.1% 3 UK 5.7 10.2% 11.2% 4 US 4.5 7.9% 12.4% 5 Sweden 4.2 7.4% 34.6% 6 Japan 3.4 6.0% 8.2% 7 Austria 1.9 3.4% 3.9% 8 Italy 1.3 2.4% 30.0% 9 Spain 1.3 2.2% 45.0% 10 Hungary 1.2 2.0% 2.0%

  • Others

10.2 18.1% 10.0%

  • Total

al 56.3

  • 14.1%

1% Growt

  • wth

h Mar arkets 2012 12-17 7 (Mns 9l cases) Rk Rk COUNT NTRY Vo Volum ume 201 017 Grow

  • wth

h 2012 12- 17 17

Net Growth th Share 2017

1 Germany 13.5 7.6 27.7% 2 France 9.3 4.7 17.2% 3 Sweden 4.2 3.2 11.9% 4 UK 5.7 2.4 8.7% 5 US 4.5 2.0 7.2% 6 Japan 3.4 1.1 4.0% 7 Spain 1.3 1.1 3.9% 8 Italy 1.3 1.0 3.6% 9 Norway 0.6 0.5 2.0% 10 China 0.8 0.5 1.7%

  • Others

11.9 3.3 12.2%

  • Total

al 56.3 27 27.2

  • 11

Source: The IWSR Excludes Travel Retail

ORGANI NIC STILL LL WINE

66% 66%

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SLIDE 12

12

CASE STU TUDY: UNITE TED STATE TES

  • The US is a prosperous, growing economy
  • Unlike other major countries, still wine

consumpti ption overall is incre reasing

  • US shoppers are continually trading up by

paying ever-higher prices.

  • In 2017, the overall still wine market reached

318m cases…

  • And a value of €26.4bn

bn.

  • Category sales are forecast to reach 332m

cases by 2022…

  • And a value of €29.6bn

bn.

318 18 332 332 26,4 29,6

5 10 15 20 25 30 35 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Value Volume me

Still Wine ne Cons nsum umption

  • n 2012

12-2022 2022 (Million

  • ns 9L cases, Billion
  • ns €)

Volume Value

Source: The IWSR Excludes Travel Retail

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SLIDE 13

13

CASE STU TUDY: UNITE TED STATE TES

  • Organic wine matches this broad trend but is
  • perating off a very low base.
  • Growth levels are much higher

r than non-

  • rganic wines, however…
  • …And growth is expected to accelerate to

2022.

  • Organic wine consumption is forecast to reach

8.7m cases by 2022.

318 18 332 332 26,4 29,6

5 10 15 20 25 30 35 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Value Volume me Still Wine Consump mption 2012-2022 2022 (Millions s 9L cases, s, Billions s €) Volume Value

Source: The IWSR Excludes Travel Retail

300,6 313,8 323,8

2,5 4,5 8,7

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Still Wine ne Organ anic vs Non-Or Organ anic (Million

  • ns 9L cases)

Non-Organic Organic

US STILL Share Volume 2017 CAGR 2012-17 17 CAGR 2017-22 22 Organic 1.4% 4.5 12.4% 14.3% Non-Organic 98.6% 313.8 0.9% 0.6%

Total al 318 18.2 1. 1.0% 0.9% 9%

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SLIDE 14

Source: The IWSR 14

  • Lega

gal criteri eria:

  • All grapes and other agricultural ingredients (including yeast, if commercially available) must be ce

certified

  • rganic, except those on the National List of Allowed and Prohibited Substances compiled by the US National

Organic Standards Board (NOSB).

  • Non-agricultural ingredients must be specifically allowed on the National List and may not exceed a combined

5 percent of the total product (excluding salt and water).

  • Sulphur dioxide (sulphites) may not

not be added, unlike in the EU.

  • Labels must state the name

me of

  • f the certifyi

ying agent (‘certified organic by ***’ or similar).

  • Consumer concerns regarding health, the envi

vironme ment, and and animal mal welfare

  • 93% in conventional and specialist supermarkets; remainder in farmers’ markets, food service and online

CASE STU TUDY: UNITE TED STATE TES – Marke ket Drivers

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SLIDE 15
  • The typica

cal US US orga ganic wine consumer mer:

  • Millennial generation
  • Skewed towards women
  • Higher than average disp

sposa sable income me

  • A focus on healthy lifest

styl yles and a preference for organic, natural food and beverage products

Source: The IWSR 15

CASE STU TUDY: UNITE TED STATE TES – Marke ket Drivers

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SLIDE 16
  • Key target geographical areas are:
  • Leading wine produci

cing states (California, Washington, New York, Oregon)

  • Major metropolitan marke

kets (New York City, Los Angeles, Chicago, Dallas/Houston, San Francisco)

  • States & markets that over-index with Millennial consu

sumer mers along with higher disposable income levels

  • Those where organic does not

not prosper include:

  • States with little wine production and no major metro markets, eg Alaska, Wyoming, Mississippi, North

Dakota, Montana, Delaware

Source: The IWSR 16

CASE STU TUDY: UNITE TED STATE TES – Marke ket Drivers

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SLIDE 17

€10.25

Organ anic c Wine ne Shar are by y Origin

(Volume 000s 9l cases)

72% 72% 12% 12% 6% 6% 5% 5% 3% 3% 2% 2%

US Italy France Spain Argentina Others

Organ anic c Wine ne Shar are by y Colou

  • ur

Source: The IWSR

  • 1. Across all domes

estic channels, excludes Travel Retail

17 49% 49% 9% 9% 42% 42% Red Rose White

2017

4,455

Averag age Price ce per 75cl cl1

€6.91

2017

2017

+48%

*IWSR segmentation is based on price and converted to equivalent price points for global

  • comparison. Equivalent price points are: Super Premium+ (>€15); Premium (€7.50-€14.99);

Standard (€3.00-€7.49); Value and Below (<€3)

Non-Organic

Organic

CASE STU TUDY: UNITE TED STATE TES

2017 SNAPSHOT

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SLIDE 18

Executive Summary

The US is a prosperous, growing economy where, unlike other key countries, still ll wine e consum umption ion over erall all is increa easing ing, and with this US shoppers are continually trading up by paying ever-higher prices. Organic wine matches this broad trend but is operating off a very y low base albeit it reac achin hing high h grow

  • wth

h levels ls – much higher than the non-organic market. And growth is expected to accelerate continuously through 2022. Domestic ic organi anic wines will l drive ive this is growt wth, as they do the broader category; however, there is plenty of

  • pportunity for organic wines from Italy and France.

Both are viewed very favourably at higher price points (above equivalent €10). This is the space that organic wines

  • perate in as US consumer

umers equat ate highe her prices es/quali uality y with h orga ganic nic certif ific icat ation ion. While there is lots of growth potential in the US, distribution of imported organic wines needs to focus on key metropoli

  • politan

an areas as; New York, LA, Chicago, etc..

Source: The IWSR 18

slide-19
SLIDE 19

19

114,3 10 101,1 11, 1,6 10 10,8

2 4 6 8 10 12 14 20 40 60 80 100 120 140 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Value Volume me

Still Wine ne Cons nsum umption

  • n 2012

12-2022 2022 (Million

  • ns 9L cases, Billion
  • ns €)

Volume Value

CASE STU TUDY: UNITE TED KINGDOM

  • Total UK wine consumpti

ption is in decline

  • Still wine is losing share to sparkling as

prosecco takes share…

  • …However, it still accounts for over eight in

every ten bottles of wine consumed.

  • The rate of value decline is softer than volume

decline due to some degree of tradi ding up and price ce inflati tion

  • By 2022, UK still wine category sales are

forecast to have fallen to 101m cases, €10.8bn bn.

Source: The IWSR Excludes Travel Retail

slide-20
SLIDE 20

20

UK STILL Share Volume 2017 CAGR 2012-17 17 CAGR 2017-22 22 Organic 5.0% 5.7 11.2% 9.4% Non-Organic 95.0% 108.6

  • 2.3%
  • 3.2%

Total al 114.3

  • 1.

1.8% 8%

  • 2.4%

4%

122,1 108,6 92,1 92,1

3,4 5,7 9,0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Still Wine ne Organ anic vs Non-Or Organ anic (Million

  • ns 9L cases)

Non-Organic Organic

CASE STU TUDY: UNITE TED KINGDOM

  • Organic wine has taken share from non-
  • rganic, and is growing in a declining market…
  • However, they remain niche.
  • Organic volumes increased at double-di

digits ts in 2012-17…

  • …Strong growth

th is forecast to continue, despite Brexit with a forecast CAGR of 9.4% to 2022.

Source: The IWSR Excludes Travel Retail

slide-21
SLIDE 21
  • EU

EU regula ulation ions apply

  • ly. Sulphites permitted but limited.
  • Overt certif

ific icat ation ion: EU organic logo and the UK Soil Association.

  • Sales of orga

ganic nic produc

  • duce overall are growing strongly.
  • Countries of origin like Italy, France and Spain, which are in decline across the total category (incl. non-organic), are thr

hriving iving in in the orga ganic nic space.

  • UK consumers are prepared to pay a much highe

her price (+27%) for organic wines.

  • Brexit

xit needs to be watched

  • Supermar

markets dominate (70%), independents are strong (15%), online is growing

  • Conscient

ntiou ious consumpt umption ion is growing

  • Low levels

ls of

  • f understanding

nding, but changing: Health Awareness, Premiumisation & Availability

Source: The IWSR 21

CASE STU TUDY: UNITE TED KINGDOM M – Marke ket Driver vers

slide-22
SLIDE 22
  • The typica

cal UK UK Orga ganic Wine consu sumer mer:

  • Wine lovers and/or regular buyers of organic produce
  • Wealthier classes
  • Metropolitan

Source: The IWSR 22

CASE STU TUDY: UNITE TED KINGDOM M – Marke ket Driver vers

slide-23
SLIDE 23

2017 SNAPSHOT

€11. 1.60 60

27% 24% 21% 10% 7% 7% 11%

France Italy Spanish Chile New Zealand Others

23 60% 60% 5% 5% 35% 35% Red Rose White

2017

5,715

€8.42

2017

2017

+38% Organi anic c Wine ne Shar are by y Origin

(Volume 000s 9l cases)

Organ anic c Wine ne Shar are by y Colou

  • ur

Averag age Price ce per 75cl cl1

Non-Organic

Organic

*IWSR segmentation is based on price and converted to equivalent price points for global

  • comparison. Equivalent price points are: Super Premium+ (>€15); Premium (€7.50-€14.99);

Standard (€3.00-€7.49); Value and Below (<€3) Source: The IWSR

  • 1. Across all domes

estic channels, excludes Travel Retail

CASE STU TUDY: UNITE TED KINGDOM

slide-24
SLIDE 24

Summary

Tot

  • tal

al UK wine ne cons nsum umption

  • n is in decl
  • cline. Still wine is losing share to sparkling, but it still accounts for over eight in every ten bottles consumed.

Organic wines have taken n shar are from

  • m non-or
  • rgani

anic, and are growi wing ng in a decl clini ning ng market, with a CAGR of over 11% in 2012-17. However, they remain

  • niche. The average price per bottle is £10.21 (vs £7.38 market average)1.

Australia is the leading country of origin for the entire still wine category, but in the organic wine space other suppliers come to the fore – notab ably y from

  • m the Old World.

Similarly, organi anic c wine nes are skewe wed towar wards red wine ne, whereas across the market as a whole the share between red and white is more evenly distributed. UK shoppers are still a little confus nfused about

  • ut organi

anic c wine nes, but fundamentals are solid with organic foodstuffs growing in popularity. Health awareness, premiumisation and increased availability are other key factors. While organic is growing strongly, still wine as a whole is nonetheless in decline. As a result, organic growth is forecast to be held back ck by y overar archi ching still wine ne cons nsum umption

  • n decl

cline ne.

Source: The IWSR

  • 1. Excludes Travel Retail

24

slide-25
SLIDE 25

CONTEXT ORGANIC WINE 2012-17 ORGANIC WINE 2017-22

slide-26
SLIDE 26

2 391 2 361 61 2 322 2 331 2 327 27 2 335 2 325 2 330 2 333 2 336 2 339 29,1 33,6 40,7 46,2 51, 1,9 56,3 61, 61,1 67,3 73,7 80,3 87 87,5

2 250 2 300 2 350 2 400 2 450

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

GLOBAL STILL WINE CONSUMPTION 2012-22 22

(MILLIONS 9L CASES)

Non-Organic Organic

Global organic c still wine consu sump mption is forecast to grow by 30m m case ses s to 2022 at a CAGR of 9.2%. While thriving, it will remain a niche e part of the market – by 2022, its share of the global category will have grown to just over 3% 3%.

26

Source: The IWSR Excludes Travel Retail

Share 2017 CAGR 2012- 17 17 CAGR 2017-22 22 Organic 2.4% 14.1% 9.2% Non-Organic 97.6%

  • 0.5%

0.0%

Total al

  • 0.2%

2% 0.0% 0% ORGANI NIC STILL LL WINE 2,42 420 0 2,39 394 4 2,363 63 2,37 377 7 2,379 79 2,391 1 2,386 86 2,397 7 2,406 06 2,416 6 2,42 426 6

slide-27
SLIDE 27

Current geogr graphic c dynami mics cs are forecast to continue with Europe domi

  • minating. Growth in the Americas is

forecast to accelerate.

43,6 47,2 52,0 57 57,1 62,4 68,0 6,3 7,1 8,0 8,8 9,6 10 10,7 5,5 5,8 6,2 6,6 6,9 7,3 0,6 0,7 0,8 1, 1,0 1, 1,1 1, 1,2 0,3 0,3 0,3 0,3 0,3 0,3

20 40 60 80 100 120

2017 2018 2019 2020 2021 2022

GLOBAL ORGANIC STILL WINE CONSUMPTION 2017 -22 22

(MILLIONS 9L CASES)

CIS AME* APAC Americas Europe CAGR GR 2017 17-22 22

Source: The IWSR Excludes Travel Retail *Africa & Middle East

27

78% 78% 12% 12% 9% 9% 1% 1% 0,3% SHARE E BY REGI GION ON 202 022

2022 2022 87.5m cases

+3.3% 3% +13 13.1% 1% +5.8% 8% +11. 1.3% 3% +9.3% 3% ORGANI NIC STILL LL WINE

56.3 .3 61.1 67.3 .3 73.7 .7 80.3 .3 87.5 .5

+9.2% 2%

slide-28
SLIDE 28

As organic geography expands, smaller er marke kets s like Spain, Norway, South Africa ca will be among the largest-growth markets in 2017-22. Still though, Germa many and Fr France will dominate growth….

Leading Mar arkets 201 017 7 (Mns 9l cases) Rk Rk COUNT NTRY Vo Volum ume 201 017 Share 2017 CAGR GR 2012 12- 17 17 1 Germany 13.5 23.9% 17.9% 2 France 9.3 16.4% 15.1% 3 UK 5.7 10.2% 11.2% 4 US 4.5 7.9% 12.4% 5 Sweden 4.2 7.4% 34.6% 6 Japan 3.4 6.0% 8.2% 7 Austria 1.9 3.4% 3.9% 8 Italy 1.3 2.4% 30.0% 9 Spain 1.3 2.2% 45.0% 10 Hungary 1.2 2.0% 2.0%

  • Others

10.2 18.1% 10.0%

  • Total

al 56.3

  • 14.1%

1% Growt

  • wth

h Mar arkets 2017-22 22 (Mns 9l cases) 1 Rk Rk COUNT NTRY Vo Volum ume 2022 22 Grow

  • wth

h 2017- 22 22 CAGR GR 201 017-22 22 1 Germany 23.1 9.7 11.4% 2 France 17.3 8.0 13.3% 3 US 8.7 4.2 14.3% 4 UK 9.0 3.2 9.4% 5 Spain 2.2 1.0 12.4% 6 Japan 4.2 0.8 4.5% 7 Norway 1.0 0.5 13.5% 8 South Africa 0.9 0.4 13.6% 9 Italy 1.7 0.4 5.4% 10 China 1.2 0.4 8.4%

  • Others

18.1 2.5 3.0%

  • Total

al 87 87.5 31. 1.2 9.2% 2%

28

Source: The IWSR Excludes Travel Retail 1. Sorted by growth 2017-22

ORGANI NIC STILL LL WINE

slide-29
SLIDE 29

Outside these two, UK UK and US US are forecast to be among the most dynami mic markets. Organic wine share in the UK will grow to 9% of the total category; in the US US, organic wines are expected to remain niche e desp spite dynami mic c growth.

Source: The IWSR Excludes Travel Retail

29

  • 5%

0% 5% 10% 15% 20% 25%

  • 4%
  • 2%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

FOCUS S MARKE KETS S 2022 22 VS 5YR YR CAGR GR 201 017-22 22 AND D ORGANI NIC SHARE E OF DOMES ESTIC MARKET ET O R G A N IC IC S H A R E

5-yr VOLUME GROWTH

SWEDEN Size: 4.1m cases CAGR: -0.3% Org Share: 21.0% GERMANY Size: 23.1m cases CAGR: 11.4% Org Share: 10.6% JAPAN Size: 4.2m cases CAGR: 4.5% Org Share: 12.2% FRANCE Size: 17.3m cases CAGR: 13.3% Org Share: 7.7% CANADA Size: 0.4m cases CAGR: 1.0% Org Share: 0.7% UK UK Size: 9.0m cases CAGR: 9.4% Org Share: 8.9% US US Size: 8.7m cases CAGR: 14.3% Org Share: 2.6%

ORGANI NIC STILL LL WINE

slide-30
SLIDE 30

GROWTH TH FOUNDATI TIONS

2022 2022

Premium High Earners

Consci cientious consump umption

  • n

Urban anisat ation

  • n

Retail

Generat ation

  • nal

al Change

Source: The IWSR

30

Distribution

ORGANI NIC STILL LL WINE

Plantings

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SLIDE 31

EXECUTI TIVE SUMMA MMARY

Currently, organic c wines account t for just 2.4% of global consumpti

  • ption. However, they are growing strongly.

Total still wine consumption is expected to increase by 35m cases to 2022. Organic c wine consumpti tion is forecast t to increase by 30m cases. Europe pe dominate tes the organic c wine market t with a 77% share. This is expected to increase to 78% by 2022. The US lags behind d Europe in organic c wines, despite being a key growth driver for the overall still wine market. However, organic growth here is forecast to accelerate in 2017-22.

Source: The IWSR 31

ORGANIC NIC STILL WINE ORGANIC NIC STILL WINE

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SLIDE 32

EXECUTIVE SUMMARY (cont’d)

Germany is the world’s largest market for organic still wine and is the largest market for organic red and white wines. France is the world’s largest consumer of organic rosé. Germany is the world’s largest importer of organic wines, followed by the UK, Sweden and Japan. Organic c Old World d wines are the most importe ted with New World lagging far behind – at least across key markets. Moving forward, other European markets are expected to maintain Europe’s fast growth as the rate of expansion across Germany, France and the UK slows down.

Source: The IWSR 32

ORGANIC NIC STILL WINE ORGANIC NIC STILL WINE

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SLIDE 33

CONCLUDING REMA MARKS – What makes a good organic opportunity?

Source: The IWSR 33

ORGANIC NIC STILL WINE ORGANIC NIC STILL WINE

WINE NE LITERA ERACY CY / EVO VOLVED ED WINE E MARKE KET STRONG RONG LOCA CAL L INDU DUSTR TRY REGU GULA LATION ON ALIGN GNME MENT NT ECOM OMMER ERCE CE WEALTH METROP OPOLI OLITANI NISM SM