U.S. Poised to Become World's Largest Wine-Consuming Market by 2012

    Within three years, the US will become the world's biggest consumer of still wine, according to the VINEXPO study conducted by leading London-based drinks research organization International Wine & Spirit Record (IWSR). The study also revealed American consumption is expected to grow over the next five years despite the economic downturn, reaching 330 million cases or 3.96 billion bottles. Mr. Xavier de Eizaguirre, Chairman of VINEXPO and Mr. Robert Beynat, Chief Executive of VINEXPO presented these results and others at a press conference held earlier today at the Four Seasons Hotel in New York City.

Notable US Rankings for 2007:

--  Number one market in the world in terms of turnover for still wine
    sales ($21.8 billion) and sales of wine over $10 per bottle.
--  Number three market in the world for still wine consumption (274.1
    million cases) and number four (14.7 million cases) for sparkling wine
    consumption.
--  Third largest world market in terms of imported still wine consumption
    in volume (77.6 million cases) and second largest world market in terms of
    turnover for the sale of these wines ($7.8 billion), behind the United
    Kingdom.
--  Fourth largest wine producing country in the world (362.4 million
    cases), behind Italy, France and Spain.
    

Key findings of the VINEXPO/IWSR study for the US:

--  In the five years from 2003, consumption of still and sparkling wines
    per person of legal drinking age grew from 11.1 liters to 12.1 liters.
    Consumption per person is projected to increase over the next five
    years to 13.1 liters, or 1 liter every 5 years.
--  Imported wine consumption will pass the 100-million-case threshold (1.2
    billion bottles) by 2012, an increase of 17.9% vs. 2008, and should
    generate a turnover of close to $10 billion ($9.688 billion) at retail.
--  Wine drinking in the US grew more than 14% in the five years from 2003
    to 2007 and is forecast to continue growing over the next five years,
    albeit at a slower rate of nearly 12%.
--  Red wine is the driving force behind consumption in the US. In 2008,
    Americans were estimated to have consumed more than 1.47 billion
    bottles of red wine. This number is projected to rise to 1.74 billion
    over the next five years.
      --  Consumption of rosé wine is forecast to rise by nearly 10% from
          565 million bottles to 620 million bottles.
      --  Consumption of white wine is forecast to rise only by 5.4% from
          1.3 billion bottles last year to 1.4 billion in 2012.
--  Still wine value is expected to rise more than 13.6% over the next five
    years to reach $25.5 billion.
--  Spirits consumption in the USA also rose over the five years from 2003
    to 2007 reaching 178 million 9-liter cases, or more than 2.14 billion
    bottles. By 2012, consumption is forecast to grow by more than 10% to
    reach 2.4 billion bottles.
--  Vodka is Americans' favorite spirit; sales rose by 27% from 2003 to
    2007 to reach more than 53 million cases, or 636 million bottles.
    Consumption of vodka will continue to increase and by 2012 it will have
    grown a further 20% to 65 million 9-liter cases.

Key findings of the VINEXPO/IWSR study for the World:

--  Between 2003 and 2007, worldwide wine production grew by 1.78% to
    reach a total of 2.828 billion 9-liter cases.
--  World production will continue to grow by 3.83% between 2008 and 2012,
    to reach 3.022 billion cases.
--  In 2007, more than 31 billion bottles of wine were consumed around the
    world.
--  The overall trend to 2012 indicates that world wine consumption will
    continue to increase by 6% over the 5-year period, reaching a total of
    2.816 billion cases.
--  World spirits consumption reached 2.224 billion 9-liter cases in 2007.
--  Vodka is by far the leading spirit worldwide and its consumption will
    increase by a further 5.29% by 2012.
--  Cognac and Armagnac will maintain strong growth of 9.53% between 2008
    and 2012.
--  Rum and Scotch whiskey consumption continue to grow.
    

Data compiled for VINEXPO on the global and US wine & spirits market is part of VINEXPO's worldwide research project in conjunction with IWSR in 28 wine producing countries and 114 wine and spirits consuming markets. VINEXPO is the world's largest wine and spirits exhibition and is expected to attract nearly 2,400 exhibitors from 45 countries and 50,000 visitors from more than 150 countries at this year's exhibition in Bordeaux from June 21st through June 25th. For more information on the show and to register, please go to www.vinexpo.com.