The Wine Intelligence Japan Wine Market Landscape Report 2008 © Wine Intelligence 2008
1 Contents § Executive summary § Market overview § § § § § § § § § § § § § Frequency of consumption Repertoire by colour Repertoire by source country Repertoire by varietal Typical spend Drinks portfolio ﴾other drinks﴿ § § § pg.32 § § § pg.35 pg.61 pg.79 pg.84 Usage by channel Usage by retailer § Consumer profiling § § pg.77 Major brands: Consumer awareness Major brands: Penetration Major regions: Awareness and conversion § Wine drinker shopping patterns § § pg.68 Purchase motivators in a nutshell Closure types ABV § Brand awareness Channel structure Off­trade sales by channel Wholesaler profiles Retailer profiles § Japanese wine consumers § § pg.19 Country of origin Leading brands ­ market share § Distribution & Retail § Regular wine drinkers § Choice cues Wine volume & value trends Market size by on­trade vs off­trade Still light wine by colour Summary: category drivers § Competitive landscape § § pg.15 Volume and value trends Per capita consumption § Japan wine market § § § § pg.7 Regulatory framework Labelling requirements Taxation and duties § Global wine market § § pg.4 pg.88 Who are the most valuable consumers in Japan? Who drinks sparkling wine in Japan? § Appendix pg.135
Overview: Who are they? Demographics: Age, gender, income 2 Copyright § © Wine Intelligence 2008 § All rights reserved. No part of this publication may be reproduced in any form ﴾including photocopying or storing it in any medium by electronic means﴿ without the permission of the copyright owners. Application for permission should be addressed to Wine Intelligence. § The source of all information in this publication is Wine Intelligence unless otherwise stated. § Information from Adams Wine Handbook is reproduced by kind permission of Adams Beverage Group; copyright Adams Wine Handbook 2007 ©. Information from Euromonitor International is reproduced by kind permission of Euromonitor International; copyright © Euromonitor International 2008. § Wine Intelligence shall not be liable for any damages ﴾including without limitation, damages for loss of business or loss of profits﴿ arising in contract, tort or otherwise from this publication or any information contained in it, or from any action or decision taken as a result of reading this publication. § Wine Intelligence ­ International Wine & Spirit Centre, 39­45 Bermondsey Street, London SE1 3XF Tel: 020 7089 3890. E­mail: [email protected]. Registered number: 4375306 England.
3 § Executive Summary
4 Executive summary Japan wine market ­ Key trends in a nutshell:
§ Japan is a mature and stable market for wine, punctuated by occasional “crazes” or short­lived trends. Consumption is dominated by Sake, the domestically produced rice wine, and indigenous wine­based beverages. § Among imported wines, luxury brands ﴾particularly Champagne﴿ and mid­quality everyday drinking wines drive most of the consumption. § Wine imports skyrocketed during the red wine boom of 1998 ﴾36 million wine cases﴿, This boom was the result of numerous TV shows and magazine articles at the time which touted the health benefits of red wine. § Once the craze had run its course – about 12 months – wine sales quickly fell back to pre­existing levels and it took until 2001 to rebalance inventories. § Since 2002 the still light wine market has been static in volume and value terms. § Sparkling wine is the only wine category that has grown since 2002 with an annual increase of 17% in volume and 18% in value. § Sparkling wines have a price per bottle much higher than any other category due to the propensity of Japanese consumers to buy luxury Champagne brands 5 Executive summary ﴾2﴿: Competitive landscape & consumers in the spotlight § Competitive landscape in a nutshell § Domestic wine represents 43% of the Japanese market § Suntory, Sapporo and Mercian Corporation the major domestic wine producers and also the main importers and distributors of non­domestic light wines § France and Italy lead the market for imported wine by volume and value and their price per bottle has increased over the last years § Australia, Italy and USA are increasing markedly their value as well as their share of market § The top domestic wine brand in Japan are: Manns wine, Bistro and Polaire § Japanese wine consumers in the spotlight
§ Wine consumers in Japan are likely to be the younger segments ﴾25­44﴿ § The most frequent drunk wine is red wine ﴾50%﴿ although white wine has an important share ﴾38%﴿ § Country of origin and recommendation by a friend/family or shop staff are the most valuable choice cues they bear in mind when purchasing wine 6 § Market overview § Regulatory framework § Labelling requirements § Taxation & duties
7 Macroeconomic market overview 2007 § Population: 127.433,494 ﴾July 2007 est.﴿ § GDP per capita: $33,100 ﴾2006 est.﴿ § GDP growth: 2.2% ﴾2006 est.﴿ § Comparative in geographical size to California, Japan occupies a strategic location in North East Asia § Third largest economy in the world after the US and Germany, mainly based on technology § Industry is based largely on manufacture of motor vehicles, electronic equipment, machinery and steel, ships, chemicals, textiles, processed foods § Due to low birth rates and almost non­existent immigration, Japan’s population is declining § Cuisine based on seafood, some meat and vegetables, traditional beverages beer and sake ﴾rice wine﴿
Source: Wine Intelligence; CIA World Fact Book 8 Japanese market overview: Nearly 60% of wines are imported Domestic and Imported still light wines in Japan 2005 Japanese major producers: ­ Mercian ­ Suntory ­ Sapporo Domestic 43% Major importers: Imported ­ France ­ Italy 57% ­ US NB domestic producers are also the leading importers and distributors of wine from France, Italy, USA and Australia
9 Labelling requirements Product name Wine, Fruit wine or Sweetened fruit wine Food additives Name of substance of anti­oxidants or synthetic preservatives Alcohol content Ethyl alcohol content Content volume Expressed in millilitres or litres Type Whether or not sparkling Name and Address of Importer Name and address of Importer Distributor address Geographic Distributor or rebottling plant address Country of origin VOLUNTARY LABELLING To prevent consumption by minors “consumption of liquors by minors is prohibited” or “liquors may only be consumed by those age 20 and over” Warning of risks of drinking during pregnancy Drinking alcohol during pregnancy or nursing may adversely impact the growth and development of the fetus or infant Blend of imported and domestic wine Wines made from mixtures must list the wines in order of quantity. E.g. “Made from domestic and imported wine” Promotion of recycling of liquor Products packed in steel or aluminium cans and PET bottles must have a containers mark on the container identifying the packaging material type Source: Jetro Marketing Book for Major Imported Products
10 Taxation: How is wine taxed in Japan? Tariffs A tariff is a tax imposed on imported products. The taxable basis is either the customs value ﴾the price of the food itself + insurance + freight charges﴿ or the volume. For more complete information, consult the Customs Tariff Schedules of Japan. * The Customs Tariff Schedules of Japan is published by the Japan Tariff Association ﴾TEL: 03­3263­ 7221﴿ Liquor Tax Products treated as alcoholic beverages under provisions of the Liquor Tax Law are subject to liquor tax on a volume basis when imported. Consumption Tax Consumption tax ﴾5%﴿ is imposed on the sum of the customs value and any applicable tariff ﴾or liquor taxes, in some cases﴿. In principle, neither tariffs nor consumption tax are due when the customs value is under 10,000 yen, whether the item is being imported for business or personal purposes. * Alcoholic beverages are also exempt from tariffs and consumption tax if the value is under 10,000 yen, but they still are subject to liquor taxes.
11 Wine taxation § Customs duty: § Still wine ­ ¥125 per litre or CIF 15 per cent, whichever is less § Sparkling wine ­ ¥182 per litre § Fortified wine ­ ¥112 per litre § Liquor tax: § Fruit wine* ­ ¥80,000 per kilolitre § Sweet fruit wine** ﴾alcohol strength less than 13 per cent﴿ ­ ¥120,000 per kilolitre § Sweet fruit wine** ﴾alcohol strength 13 per cent or above﴿ ­ ¥120,000 plus ¥8,644 for each per cent alcoholic content above 13 per kilolitre § Consumption Tax: ﴾CIF + Custom duty + Liquor tax﴿ x 5% * Fruit wine: wines produced by fermenting fruit or fruits plus water, with sugar, brandy and other substances added up to specified limits ** Sweet fruit wine: wines produced by adding brandy or other alcoholic beverages or sugar to fruit wines above a specified quantity Source: Jetro Marketing Book for Major Imported Products
12 Packaging recycling law § The Japanese government began full implementation of the Packaging Recycling law in April 2000. It requires the industry to recycle all paper and plastic packaging, glass bottles, steel and aluminium cans and PET bottles § In the case of wines, according to industry sources, some importers have requested that exporters use colourless glass bottles if possible, and a number of wines in clear bottles have appeared on the market. However, this is only appropriate for less­expensive or early drinking wines; for premium wines, the industry generally continues using coloured bottles despite the added recycling costs. § The recycling charges determined by the Japan Containers and Packaging Recycling are: Glass bottle No colour Brown Green/other ¥3.8/kg ¥5.2/kg ¥5.8/kg PET bottle Paper packaging Plastic packaging ¥1.8/kg ¥12.5/kg ¥85.8/kg
Sources: Japan Recycling Association www.jcpra.or.jp; USDA GAIN Wine Report 2006 13 Distribution channels for imported wine Overseas wine makers ﴾of bulk wine﴿ Overseas wine makers ﴾of bottled wine﴿ Import trading company Primary wholesalers Secondary wholesalers Commercial liquor vendors Liquor retailers General liquor stores Discount liquor stores Food service establishments Supermarkets, department stores Convenience stores Source: Jetro Marketing Book for Major Imported Products
Japanese wine makers CONSUMERS 14 § Global wine market § Volume & value trend § Per capita consumption
15 Global wine market: Volume trends in leading markets Total wine market volume in thousand 9 litre cases 297,735 (­1% ) Italy (1) 286,073 (3% ) USA (2) 268,132 (­2% ) France (3) 260,119 (7% ) China (4) Germany (5) 241,358 (0% ) 149,645 (3% ) United Kingdom (6) 134,399 (­1% ) Spain (7) Russia (8) 128,769 (6% ) 112,621 (­3% ) Japan (9) Portugal (10) 58,582 (2% ) 49,169 (2% ) Australia (11) 43,409 (4% ) Canada (12) Netherlands (13) 40,577 (4% ) Brazil (14) 39,599 (1% ) Still light wine Other wines (fortified, sparkling, rice/fruit wine…) 31,727 (2% ) Belgium (15) 31,415 (­1% ) Switzerland (16) Sweden (17) 19,961 (3% ) Denmark (18) The number in black are the Wine market value in thousand 9l cases in 2007 The number into brakets is the Compound Annual Growth Rate (2002­2007) CAGR: The year­over­year growth rate over a specified period of time
18,158 (0% ) Ireland (19) 8,563 (7% ) Norway (20) 7,441 (5% ) Finland (21) 6,922 (4% ) 0 50,000 Source: © Euromonitor International 2008 100,000 150,000 200,000 250,000 300,000 350,000 16 Global wine market: Value trends in leading markets Total wine market value in million $ RSP (Retail Sales price) 31,656 (7% ) USA (1) France (2) 28,562 (­1% ) 22,033 (­1% ) Japan (3) United Kingdom (4) 21,567 (4% ) Italy (5) 16,131 (1% ) Germany (6) 11,750 (­1% ) China (7) 10,524 (8% ) 8,777 (16% ) Russia (8) Canada (9) 6,474 (7% ) Spain (10) 5,759 (3% ) Switzerland (11) 5,638 (0% ) Australia (12) 5,341 (3% ) Portugal (13) 3,389 (2% ) Brazil (14) Still light wine Other wines (fortified, sparkling, rice/fruit wine…) 3,129 (10% ) Belgium (15) 2,775 (4% ) Netherlands (16) 2,550 (4% ) 2,311 (3% ) Sweden (17) Ireland (18) 1,739 (7% ) Norway (19) 1,674 (6% ) Denmark (20) 1,533 (0% ) The number in black are the Wine market value in million US$ in 2007 The number into brakets is the Compound Annual Growth Rate (2002­2007) CAGR: The year­over­year growth rate over a spe cified period of time
Source: © Euromonitor International 2008 820 (4% ) Finland (21) 0 10,000,000 20,000,000 30,000,000 40,000,000 17 Global wine market: International per capita consumption Per Capita Consumption, Wine, 2006, Litres, Adult population Market Top­5 Croatia France Italy Georgia Slovenia Switzerland Denmark Germany Belgium Australia UK Additional Ireland Vinitrac markets Sweden Netherlands Norway Canada Finland US Japan 2002 2006 % Change, 2002/2006 72 65 54 58 50 74 59 57 56 48 3.2% ­9.6% 6.1% ­4.6% ­3.2% 50 37 31 29 24 22 18 21 25 14 10 10 10 2 44 38 32 32 26 25 23 23 22 17 13 12 11 2 ­12.1% 2.2% 2.6% 10.5% 9.2% 10.8% 23.0% 5.1% ­11.5% 16.0% 20.2% 18.6% 10.8% ­4% Source: Adams Wine Handbook 2007 ©; International Wine and Spirits Record
18 § Japan wine market § Wine volume and value trends § Market size by on­trade vs. off­trade § Still light wine by colour § Summary: Category drivers
19 § Japan wine market § Wine volume and value trends
20 Wine volume trends Volume of wine in the Japan trend data 2002­2007 Thousand cases (On + Off trade) 160,000 140,000 127 123 115 120,000 100,000 105,289 103,087 91,812 80,000 134 86,520 133 136 85,215 83,018 Non­grape wine Sparkling wine 60,000 40,000 Fortified wine and vermouth Still light grape wine 1,309 20,000 27,769 27,782 1,156 1,437 27,104 1,719 25,985 2004 2005 2,169 2,533 26,459 26,934 0 2002 2003 2006 Source: © Euromonitor International 2008 2007 Japan: 2002 ­ 2007 Volume data Compound Annual Growth Rate
Still light wine ­0.6% Sparkling wine 17.0% Fortified and Vermouth 1.4% Non­ grape wine ­4.6% 21 Wine value trends Value of wine in Japan trend data 2002­2007 Million ¥ Yen (On + Off trade) 3,000,000 5,198 4,828 4,401 5,230 5,222 5,361 2,500,000 1,792,436 1,765,683 2,000,000 1,556,141 1,465,905 1,443,366 1,406,681 Fortified wine and vermouth 1,500,000 Sparkling wine 1,000,000 Non­grape wine Still light grape wine 171,471 202,064 235,882 500,000 768,401 778,058 759,588 395,537 267,862 335,632 731,318 746,366 763,211 0 2002 2003 2004 2005 Source: © Euromonitor International 2008 2006 Japan: 2002 ­ 2007 Value data 2007 Compound Annual Growth Rate
Still light wine ­0.1% Sparkling wine 18.2% Fortified and Vermouth 0.6% Non­ grape wine ­4.7% 22 Wine price per bottle Price per bottle of wine in Japan trend data 2002­2007 ¥ Yen (On + Off trade) 16000 14000 12,357 12,865 13,679 12,987 12,896 13,011 Sparkling wine 12000 10000 Fortified wine and vermouth 8000 Still light grape wine 6000 4000 3,419 2,306 2000 1,419 0 2002 3,265 2,334 1,427 2003 3,189 2,335 1,412 2004 3,240 2,345 1,412 2005 3,275 2,351 1,411 2006 3,282 2,361 1,412 2007 NB prices shown in the chart are weighted average of on­ and off­premise consumption. Key off­premise price points for still light wine are ¥800­1,500; for the on­premise, the key price points are ¥2,000­3,000
Source: © Euromonitor International 2008 Non­grape wine Japan: 2002 ­ 2007 Price per bottle Compound Annual Growth Rate Still light wine 0.5% Sparkling wine 1.0% Fortified and Vermouth ­0.8% Non­ grape wine ­0.1% 23 § Japan wine market § Market size by on­trade vs. off­trade
24 Imported wines: On vs. Off trade Imported wines volume 2006 Still light wine 100% 80% 38% 41% On trade 60% 40% Off trade
62% 59% Volume Value 20% 0% Source: © WANDS Business Report April 2007 25 § Japan wine market § Still light wine by color
26 Still light wine volume trend: By colour Volume of still light wine in Japan by colour 2002­2007 Thousand cases (On + Off trade) 30,000 1,741 1,529 1,452 1,509 1,571 8,007 8,090 1,602 25,000 20,000 8,485 8,499 8,341 8,187 White Wine 15,000 10,000 Rose wine 17,543 17,754 17,311 16,470 2004 2005 16,798 17,145 Red wine 5,000 0 2002 2003 2006 Japan: 2002 ­ 2007 Volume data 2007 Total volume 2007 White wine 30% Compound Annual Growth Rate
Source: © Euromonitor International 2008 Red wine White wine Rosé wine ­0.5% ­0.7% ­1.6% Rose wine 6% Red wine 64% 27 Still light wine value trend: By colour Value of still light wine in Japan by colour 2002­2007 Million ¥ Yen (On + Off trade) 900,000 800,000 43,617 38,327 35,736 37,469 39,229 40,092 700,000 600,000 225,834 226,615 222,123 Rose wine 213,460 216,669 220,030 500,000 White Wine 400,000 300,000 498,951 513,116 501,729 480,389 490,468 503,090 200,000 Red wine 100,000 0 2002 2003 2004 2005 2006 2007 Total value 2007 Source: © Euromonitor International 2008 Japan: 2002 ­ 2007 Value data Compound Annual Growth Rate
Red wine 0.2% White wine ­0.5% Rosé wine ­1.7% White wine 29% Rose wine 5% Red wine 66% 28 Still light wine price per bottle: By colour Price per bottle of wine in Japan trend data 2002­2007 ¥ Yen (On + Off trade) 2500.00 2400.00 2,370 2300.00 2,218 2,408 2,222 2,415 2,219 2200.00 2100.00 2,088 2,089 2,051 2,431 2,433 2,445 2,222 2,232 2,240 2,070 2,081 2,085 2000.00 Red wine White wine Rosé wine 1900.00 1800.00 2002 2003 2004 2005 Source: © Euromonitor International 2008 2006 2007 Japan: 2002 ­ 2007 Price per bottle Compound Annual Growth Rate
Red wine 0.6% White wine 0.2% Rosé wine 0.0% 29 § Japan wine market § Summary: Category drivers
30 Category drivers: On trade and especially Sparkling are driving the wine category Volume and Value growth in Japan 2002­2007 Category drivers analysis Volume growth (CAGR) 20% 17% Value growth (CAGR)
18% 15% 10% 7% 5% 1% 1% 1% 0% 0% ­1% 0% ­5% 0% ­1% ­1% ­2% ­2% ­5% ­5% ­10% Wine (Including: Still light wine, Sparkling wine, Fortified and non grape wine in On+Off trade) Sparkling wine Fortified and Non­ grape Still light wine Red wine Vermouth wine (Including: On+Off trade) White wine Rosé wine (Including: On+Off trade) Source: © Euromonitor International 2008 31 § Competitive landscape § Country of origin § Leading brands ­ market share
32 France leads source of Still light wine followed by Italy and US Volume: Still light wine imports in Japan by country of origin Japan: Thousand cases France Italy USA Chile Spain Australia Argentina Germany South Africa New Zealand Hungary Portugal Other countries 2002 2006 7,056 3,322 1,733 1,211 856 544 611 967 256 22 89 89 656 6,344 2,722 2,289 1,289 900 767 733 567 144 56 44 33 289 Value: Still light wine imports in Sweden by country of origin CAGR Market Japan: 2002­2006 share 2006 Million ¥ Yen France ­3% 39% ­5% 17% Italy USA 7% 14% Chile 2% 8% Australia 1% 6% Germany 9% 5% Spain 5% 5% Argentina ­12% 4% New Zealand ­13% 1% South Africa 26% 0% Hungary ­16% 0% Portugal ­22% 0% Other countries ­19% 2% 2002 2006 43,282 11,788 6,224 3,303 1,914 3,224 2,245 638 258 571 179 465 1,140 57,534 12,877 7,587 3,677 3,461 3,086 3,009 1,019 548 478 200 147 1,096 CAGR Market 2002­2006 share 2006 7% 61% 2% 14% 5% 8% 3% 4% 16% 4% ­1% 3% 8% 3% 12% 1% 21% 1% ­4% 1% 3% 0% ­25% 0% ­1% 1% Still light wines price per imported bottle by Country of Origin ¥ Yen ¥ 966 New Zealand ¥ 823 France ¥ 756 Germany Italy ¥ 511 ¥ 454 ¥ 394 ¥ 376 ¥ 279 ¥276 ¥ 296 ¥ 278 ¥ 219 ¥ 168 2002 Australia Hungary Spain USA
2003 2004 2005 2006 Source: Euromonitor International 2008 33 Top­10 brands: Manns Wine, a domestic product, is the leading brand Top 10 Still light wine brands in Japan + KWV (by volume) Total volume ­ '000 9 Litres Cases
Top 10 brands Manns Wine Bistro Polaire Bon Rouge Franzia Oishii Sanka Boushizai Mutenka Wine Mutenka Yuuki Wine Georges Duboeuf Delica Maison Sunrise KWV (Ranked 26) Global Name 2002 2006 Kikkoman Corp Mercian Corp Sapporo Holdings Ltd Mercian Corp Wine Group Inc, The Mercian Corp Asahi Breweries Ltd Les Vins Georges Duboeuf Suntory Ltd Viña Concha y Toro SA 1293 807 ­ 681 20 ­ 192 374 797 126 1222 770 756 580 490 410 360 359 300 244 KWV Group 85.6 88.9 CAGR Share of 2003­2006 market 2006 ­1% 4.6% ­1% 2.9% ­8% 2.9% ­4% 2.2% 122% 1.9% 36% 1.5% 17% 1.4% ­1% 1.4% ­22% 1.1% 18% 0.9% 1% 0.3% Note: No data registered for 2002, % from 2003 Source: © Euromonitor International 2008 34 § Distribution & Retail § Channel structure § Off­trade sales by channel § Wholesaler profiles § Retailer profiles
35 Selling wine in Japan: Overview Importers & wholesalers § The market is dominated by Suntory, Mercian and Kokubu and the breweries Asahi and Sapporo § These firms have traditionally competed strongly for volume leadership as opposed to maximising value Retailers § While Aeon, Seven Eleven, Seiyo and Rakunten Ichiba are considered to be the top retailers among Japanese consumers § Wine distribution in Japan has traditionally been dominated by specialist stores, with a 40% of share § In recent years Supermarkets, discounters and convenience stores have been gaining ground in the wine distribution mostly because of the liquor deregulation law Source: Wine Intelligence; Wine Business International
36 Distribution channels § Specialist stores are the Distribution channels in Japan 2007 leading distribution channel with a 40% share § Supermarkets, Discounters Others, 10% Supermarkets/ and Convenience stores Direct sales, 4% hypermarkets, together account for 41% 30% Specialists, 40% Independent food stores, 6% Convenience stores, 8% Discounters, 3%
Source: Euromonitor International 2008 37 Wine Manga comic: Sommelier § Created by Ken­ichi Hori from the California Wine Institute, “Sommelier “ spreads interest in wine using the popular Japanese Manga comics. It sells up to a million copies Source: Wine Business International
38 § Distribution & Retail § Importers and wholesaler profiles
39 Wholesaler profile: Suntory Description Japanese brewing and distilling company established in 1899, it is one of the oldest and leading companies in the distribution of alcoholic beverages in Japan. Its business has expanded to other fields, and the company now offers everything from soft drinks to vintage wines. The group has three operating units: the beverage and food unit; the spirits, wine and beer unit; and the foodservice and business development unit. Suntory beverages are produced through its Suntory Limited division. Suntory wine business surpassed market achievements by turning 4% higher sales than in 2006. In sparkling wine, world­class brands Laurent­Perrier and Henriot contributed to a 20% increase in sales for champagne and sparkling wine combined. Suntory has tied­up businesses with distinguished wineries such as Georges Duboef, Torres, Gallo, Freixenet, Perrier­Jouët and Mumm Contact information Suntory Limited Division Headquarter Dojimahama 2­1­40 Kita­ku Osaka, Osaka 530­8203, Japan Phone: ﴾0081﴿ 6 6346 1131 www.suntory.com Source: Company Website and www.hoovers.com
40 Retailer profile: Suntory Sales 2007 Y­Y Sales Growth Select Key Wine Brands in Portfolio Regions covered £ 792 m +4% Georges Duboef , Torres , E & J Gallo, Freixenet , Perrier­Jouët and Mumm Across Japan Domestic wines @ Suntory Source: Company Website and www.hoovers.com
41 Wholesaler profile: Mercian Description Established in 1934 as a liquor manufacturer, Mercian Corporation has become one of Japan's leading producers of wine, oriental liquors and low­alcohol beverages. The Company has also established a strong record of selling a wide range of imported alcoholic beverages. Mercian's network consists of five branch offices, eight factories and two research facilities in Japan, as well as one representative office and five production facilities overseas. Today, their partners include leading Spanish Cava producer Codorniu S.A.; Champagne Pommery from France; and Viña Concha y Toro S.A. In recent years, Mercian has also expanded their wine selection by establishing ties with other leading wineries worldwide, including the Robert Mondavi Winery, and Italy's famed Marchesi de' Frescobaldi. Contact information Mercian Corporation 1­5­8 Kyobashi Chuo­ku Tokyo 104­8305 Japan Phone: ﴾0081﴿3 3231 3910 Fax: ﴾0081﴿3 3231 8539 www.mercian.co.jp/e/index.html?main.html Source: Company Website and www.hoovers.com
42 Wholesaler profile: Mercian Sales 2006 Select Key Wine Brands in Portfolio Regions covered £483m Production of domestic wines: Château Mercian and Imported wines such as Codorniu S.A, Champagne Pommery, Concha y Toro, Robert Mondavi and Marchesi de’ Frescobaldi Across Japan Some of Château Mercian Domestic wines Source: Company Website and www.hoovers.com
43 Wholesaler profile: Kokubu Description Kokubu & Co. is the shogun of the Japanese wholesale food industry. As the largest distributor in the country, it supplies customers with more than 260,000 foods, beverages, and other products, including frozen foods, processed food, and wine. Kokubu is aggressively innovating food distribution practices and recognize themselves as one of the leading distribution companies of Japan. Kokubu's own private label, K&K, offers a feast of items, including boxed lunches, canned food and beverages, and snacks. Both an importer and exporter of foods and alcoholic beverages, Kokubu serves some 30,000 retailers in more than 37 nations; it has 160 warehouses in Japan alone. The company also owns Kokubu Grocer's chain, which franchises about 700 Community Store convenience stores. Founded in 1712, the company is owned by the Kokubu family. The Kokobu group employees about 1,527 people and has an annual turnover of about £6,729.2m, it grew 3.8% compared to the last year. The wholesale part of their business is about 30%. Contact information Kokubu & Co., Ltd 1­1­1 Nihonbashi Chuo­ku Tokyo 103­8241 Japan Phone: ﴾0081﴿3­3276­4000 Fax: ﴾0081﴿3­3271­6523 www.kokubu.co.jp Source: Company Website and www.hoovers.com
44 Wholesaler profile: Kokubu Sales 2006 £6,729.2m Staff 1,527 Select Key Wine Brands in Portfolio K&K ﴾company label﴿, Imported wines such as KWV wine from South Africa Regions covered Across Japan From which £1,439m ﴾aprox. 21.4%﴿ is only in wine Source: Company Website and www.hoovers.com
45 Wholesaler profile: Sapporo Description Sapporo is one of Japan's oldest brewers and sits at #3 in that country's beer market ﴾behind Asahi Breweries and Kirin Brewery﴿ with brews ranging from its flagship Black Label to the pricier Yebisu. The company sells Guinness beer in Japan through its Sapporo Guinness Company and owns a beverage company that makes canned coffee, bottled water, and soft drinks. They own not only a production facility to produce domestic wine, but import also wines from different countries. Some of their prestige labels of the Company's imported wines are Beringer, La Cuvee Mythique and [yellow tail] Contact information Sapporo Holdings Limited 20­1 Ebisu 4­chome Shibuya­ku Tokyo 150­8686 Japan Phone: ﴾0081﴿3­5423­7227 Fax: ﴾0081﴿3 5423 2061 www.sapporobeer.jp Source: Company Website and www.hoovers.com
46 Wholesaler profile: Sapporo Sales 2006 £1,838m Select Key Wine Brands in Portfolio Staff 4,112 Production of domestic wines, Imported wines such as Beringer, La Cuvee Mythique and [yellow tail] Regions covered Across Japan From which £65.4m ﴾approx. 3.6%﴿ is wine Domestic wines @ Sapporo Source: Company Website and www.hoovers.com
Imported wines @ Sapporo 47 Wholesaler profile: Asahi Description Asahi Breweries is a leading beer company in Japan, commanding some 40% of the country's beer market. The Asahi group employees about 15,280 people and has an annual turnover of about £5,000m. In addition to its alcoholic beverage business, Asahi makes WONDA coffee drinks, a variety of soft drinks, and bottled tea and water, along with food products, baby food and nutritional supplements. In terms of wine, Asahi Breweries delivers imported wines from various European countries, such as France and Italy, in addition to California, Chile and other areas of the new world, as well as domestic wines to the dietary life of their customers. From their total turnover of about £5,000m the share of alcoholic beverages is 80%. However, due to the low penetration of wine in Japan, wine represents a 1.5% of their turnover­ at least £74.1m. The wholesale part of their wine business is about 60%. Contact information Asahi Breweries, Ltd 23­1, Azumabashi 1­chome Sumida­ku Tokyo 130­8602 Japan Phone: ﴾0081﴿3­5608­5111 Fax: ﴾0081﴿3­5608­5152 www.asahibeer.co.jp Source: Company Website and www.hoovers.com
48 Wholesaler profile: Asahi Sales 2006 £4,995.2m Staff 15,280 From which £74.1m ﴾approx. 1.5%﴿ is wine Select Key Wine Brands in Portfolio Caliuterra, Zonin, Baron Philippe de Rothschild, Louis Latour, Saint Neige, Nikka Cidre, Ste­Neige Ume Wine Regions covered Across Japan Source: Company Website and www.hoovers.com
49 Wholesaler profile: Shosan Shoji Description Shosan Shoji, established in 1928, imports and conducts wholesale business for specialist stores, high end supermarket chains, hotels, restaurants and liqueur shops. They provide a range of deli products such as olive oil, spaghetti, fruit juice, foie gras and smoked salmon etc. In their imported wine portfolio you can choose among wines from France, Italy, Spain and other. In 2007, Shosan Shoji had 256 employees and its turnover was £281.1m. Contact information Shosan Shoji Co 1­9­3 Itabashi 173­0004 Itabashi­Ku Tokyo Japan www.shosan.co.jp Source: Company Website and www.hoovers.com
50 Wholesaler profile: Shosan Shoji Sales 2007 Staff Regions covered £281.1m 256 Across Japan Source: Company Website and www.hoovers.com
51 § Distribution & Retail § Retailer profiles
52 Retailer profile: AEON Description The core business of Japan's AEON Group, AEON CO. owns or franchises more than 4,400 stores worldwide. It is Japan's largest supermarket chain, with about 750 stores under JUSCO and MaxValu banners, as well as about 2,975 MINISTOP convenience stores. AEON also runs a number of specialty chains, including The Body Shop and Laura Ashley stores in Japan. It has a joint venture in Japan with Sports Authority and owns the women's clothing chain The Talbots. Also, the firm operates AEON Welcia, a leading drugstore chain in Japan with 1,800­plus outlets. Other operations include shopping center development and financial and credit card services. Aeon employees about 200,000 people and has an annual turnover of £23,541.1m. Contact information AEON CO., LTD. Headquarters 1­5­1 Nakase Mihama­ku Chiba 261­8515 Japan Phone: ﴾0081﴿43­212­6042 Fax: ﴾0081﴿43­212­6849 Source: Company Website and www.hoovers.com
53 Retailer profile: AEON Sales 2007 Y­Y Sales Growth Regions covered £23,541.1m +8.9% Across Japan Source: Company Website and www.hoovers.com
54 Retailer profile: 7­eleven – the worlds largest chain store Description 7­eleven is a subsidiary of Seven & I Holdings Co. of Japan. There are 33,220 company­owned and franchised 7­eleven convenience stores in 18 countries, but Japan has with 11,735 more stores then anywhere else in the world. Today, it is the worlds largest retailer chain store. They offer not only food, drinks and magazines but also video games and consoles, CDs, DVDs and seasonal items. Due to cheap prices they provide also a wide range of private label products. In Japan alone 7­eleven employees about 5,000 people and has an annual turnover of £12,340.8m. The Japanese shops often bear the title of its holding company “Seven & I Holdings”. Contact information Seven­Eleven Japan Co.,Ltd. Head Office 8­8, Nibancho, Chiyoda­ku Tokyo 102­8455,Japan Phone: 03­6238­3711 www.sej.co.jp Source: Company Website and www.hoovers.com
55 Retailer profile: 7­eleven Sales 2006 Y­Y Sales Growth Regions covered £12,340.8m 1.4% High density across Japan more stores than anywhere else in the world
56 Retailer profile: Seiyu Description Seiyu is Japan’s fifth largest supermarket chain operator. The company was established on April 19, 1963. On December 5, 2007, Wal­Mart announced its tender offer to acquire all of the issued and outstanding shares Seiyu was successful, raising Wal­Mart’s ownership of Seiyu from 50.9 percent to 95.1 percent. SEIYU runs about 400 stores, including supermarkets and department stores. Merchandise includes food, apparel, and household goods ﴾under international brands or SEIYU's own brands﴿. Company flags include SEIYU, Sunny, and SSV. ﴾supermarkets﴿ and Livin ﴾department stores﴿. The annual turnover is about £3,337.9m, which is about 70% from the total groups turnover. While the group employees about 35,426 people, at the Seiyu stores alone are 18,774 peoples employed. Contact information The Seiyu, Ltd. 2­1­1 Akabane, Kita­ku Tokyo, 115­0045, Japan Phone: ﴾0081﴿3­3598­7000 Fax: ﴾0081﴿3­3598­7745 Website: www.seiyu.com.hk Source: Company Website and www.hoovers.com
57 Retailer profile: Seiyu Sales 2006 Y­Y Sales Growth Regions covered £3,337.9m Recently loosing Across Japan Only Seiyu stores Source: Company Website and www.hoovers.com
58 Retailer profile: Rakuten Ichiba Description Rakuten, Inc. ﴾楽天株式会社, Rakuten Kabushiki­gaisha﴿ was founded in 1997 and is Japan's largest online retailer and a leading provider of Internet­based services. Today, Rakuten is one of the biggest online shopping mall operators and the second ranking site in Japan with an annual turnover of about £859m and 3,430 employees. The company's business segments and subsidiaries include Rakuten Ichiba ﴾an online shopping mall﴿, Rakuten Auction ﴾online auctions﴿, Rakuten Books ﴾online bookstore﴿, Infoseek ﴾Internet search, Web logs, and job boards﴿, Rakuten Enterprise ﴾entertainment ticket sales﴿, ShowTime ﴾broadband entertainment programming﴿, and Target ﴾online marketing and promotions﴿. The firm's entertainment activities include television broadcasting in Japan and ownership of a professional baseball team. Its financial services unit offers credit cards and consumer loans. The chief executive officer from Rakuten is Hiroshi Mikitani. Rakuten is among the Top 10 largest Internet companies in the world ﴾along with Amazon.com, InterActive Corporation ﴾IAC﴿, Expedia, etc.﴿ http://www.rakuten.co.jp/ Contact information Rakuten Inc. Roppongi Hills Mori Tower 6­10­1 Roppongi Minato­ku Tokyo 106­6118 Japan Phone: ﴾0081﴿3­4523­1111 www.rakuten.co.jp Source: Company Website and www.hoovers.com
59 Retailer profile: Rakuten Ichiba Sales 2006 Y­Y Sales Growth Regions covered £859m Recently growing Across Japan ﴾online﴿ Rakuten, Inc. is expanding its business to other Asian countries and also to Europe Source: Company Website and www.hoovers.com
60 § Japanese wine consumers § Overview: Who are they? § Demographics: Age, gender, income
61 Notes on data and definitions DEFINITIONS/EXPLANATORY NOTES FOR THIS SECTION
§ Regular wine drinkers in Japan = adults of legal drinking age who drink wine at least once a month § Vinitrac® = global proprietary survey of wine consumer behaviour and attitude owned and operated by Wine Intelligence § Vinitrac® methodology: § n = minimum of 1,000 interviews per wave per country § Online interviews § 15 minute survey 62 Japanese wine drinkers: Who are they? Japanese wine consumers in the spotlight:
§ § § § Regular wine drinkers in the Japan are concentrated in the 25­44 group 32% of them drink wine at least twice a week France, Chile and Italy lead their country repertoire Country of origin and recommendation ﴾friends/family or shops﴿ are the most important cues when buying wine § More than a third of consumers don’t recognise drinking any of the top grape varieties § 70% of consumers agree with the statement “I don’t mind what I buy so long as the price is right” § Carlo Rossi and [yellow tail] top international brands in awareness 63 Wine consumers in Japan: Age & gender Gender profile Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Female 55% Male 45% Age profile Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 45 ­ 54 14% 35 ­ 44 35%
55 and over 6% LDA ­ 24 5% 25 ­ 34 40% Source: Wine Intelligence 2008, Vinitrac® 64 Wine consumers in Japan: Income distribution Estimated annual household income before taxes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100,000,000+
15% 7% 9,000,000­9,999,999 yen 8,000,000­8,999,999 yen 9% 7,000,000­7,999,999 yen 9% 6,000,000­6,999,999 yen 9% 13% 5,000,000­5,999,999 yen 4,000,000­4,999,999 yen 12% 10% 3,000,000­3,999,999 yen 2,000,000­2,999,999 yen 6% 1,000,000­1,999,999 yen 2% Under 1,000,000 yen 1% 7% Prefer not to answer 0% 2% 4% 6% 8% 10% 12% 14% 16% Source: Wine Intelligence 2008, Vinitrac® 65 § Regular wine drinkers § Frequency of consumption § Repertoire by colour ﴾red, white, rosé﴿ § Repertoire by source country § Repertoire by varietals § Typical spend § Drinks portfolio ﴾other drinks﴿
66 Frequency of consumption 32% of all regular wine drinkers consumes at least twice a week Frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 50% 41% 40% 30% 28% 25% 20% 7% 10% 0% 1­3 times a month About once a week 2­5 times a week Most days/every day
Source: Wine Intelligence 2008, Vinitrac® 67 Red wine remains the favourite choice of the regular wine drinkers in Japan Proportion by type of wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 White wine 38% Red wine 50% Rosé wine 12%
Source: Wine Intelligence 2008, Vinitrac® 68 Country of origin repertoire 61% has French wine in their repertoire Country of origin repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 France
61% Italy 42% Chile 34% Germany 31% Australia 26% Spain 22% USA 22% Argentina South Africa 15% 7% New Zealand 5% Portugal 5% Don't know Other 0% 14% 12% 20% 40% 60% 80% Source: Wine Intelligence 2008, Vinitrac® 69 Cabernet Sauvignon, Merlot and Pinot Noir are the Japan’s favourite red varietals Red grape repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Cabernet Sauvignon
36% 25% Merlot Pinot Noir 22% 12% Shiraz/Syrah Sangiovese 9% 8% Gamay Malbec 6% Grenache 6% Carmenère 5% Pinotage 5% Tempranillo 4% Zinfandel 4% Dornfelder 4% Don't know which grape I drink Other red grape Source: Wine Intelligence 2008, Vinitrac® 41% 7% 0% 10% 20% 30% 40% 50% 70 Chardonnay is the most popular choice among white varietals White grape repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Chardonnay
45% Sauvignon Blanc 23% Riesling 15% Semillon 8% Pinot Grigio/Pinot Gris 7% Müller­Thurgau 6% Chenin Blanc 6% Colombard 4% Grüner Veltliner 4% Gewürztraminer 3% Viognier 3% Chardonnay Don't know which grape I drink Other white grape 36% 6% 0% 20% 40% 60% Source: Wine Intelligence 2008, Vinitrac® 71 Typical spend – Off­trade Over 50% claim to spend within ¥ 1,000 ­ ¥ 1,999 Typical Off trade spend Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Over ¥ 3000
5% ¥ 2000 ­ ¥ 2999 13% ¥ 1500 ­ ¥ 1999 20% ¥ 1000 ­ ¥ 1499 35% ¥ 800 ­ ¥ 999 ¥ 600 ­ ¥ 799 Under ¥ 600 0% 12% 9% 7% 10% 20% 30% 40% Source: Wine Intelligence 2008, Vinitrac® 72 Typical spend – On trade spend § Over 3/4 claim to spend between ¥ 1,000 ­ ¥ 3,999 Typical On trade spend Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Over ¥ 10000
1% ¥ 8000 ­ ¥ 9999 1% ¥ 6000 ­ ¥ 7999 4% ¥ 4000 ­ ¥ 5999 9% ¥ 3000 ­ ¥ 3999 16% ¥ 2000 ­ ¥ 2999 31% ¥ 1000 ­ ¥ 1999 Under ¥ 1000 Do not buy wine in the on­trade 28% 7% 4% 0% 5% 10% 15% 20% 25% 30% 35% Source: Wine Intelligence 2008, Vinitrac® 73 What else is in the shopping basket of regular wine drinkers in Japan? Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Red wine
83% White wine 75% Beer 73% Pre­mixed/ready to drink 48% French Champagne 28% Rosé wine 28% Other sparkling wine 18% Sweet/dessert wine 15% Cava 6% Port 6% Sherry 4% Prosecco 3% 0% 30% 60% 90% Source: Wine Intelligence 2008, Vinitrac® 74 § Choice cues § Purchase motivators § Closure types § ABV
75 Purchase choice cues Country of origin and recommendation by a friend/family or shop staff are dominant purchase cues Purchase choice cues % that quoted the following statements as "Important" or "Very important" when purchasing wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Country of origin
54% Recommendation by friend or family 53% Recommendation by shop staff 50% 44% Region of origin 42% Grape variety A brand I am aware of 38% Appeal of the bottle or label design 35% Promotional offer 33% 28% Alcohol content 23% Medal or award 0% ® 15% 30% 45% 60% Source: Wine Intelligence 2008, Vinitrac® 76 Closures: Screw­cap and Synthetic cork is accepted by more than ¾ wine regular drinkers
Attitudes towards closures Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100% 12% 26% I like buying wine with this closure 80% 59% 60% 50% 68% Neutral 40% I don't like buying wine with this closure 37% 20% 23% 19% Screw­cap Synthetic cork 0% 4% Natural cork Source: Wine Intelligence 2008, Vinitrac® 77 Alcohol level 1/3 of Japan regular wine drinkers would buy wine with alcohol level of 13% and above Alcohol level perception % answering "Would buy or Defenetily would buy" wine at the following alcohol levels Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Alcohol level wine of 13% and above
29% Alcohol level wine between 11 and 12% Alcohol level wine between 9 and 10% Alcohol level wine below 9% 0% 25% 14% 12% 20% 40% Source: Wine Intelligence 2008, Vinitrac® 78 § Brand awareness § Major brands: Prompted awareness § Major brands: Penetration § Major regions: Awareness and conversion
79 Prompted brand awareness Brand awareness ­ Top 10 Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 30% 25% 20% 28% 23% 18% 15% 13% 10% 9% 9% 7% 7% 7% 7% 5% 0% a il si a
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Source: Wine Intelligence 2008, Vinitrac® 80 Brand penetration 10% 8% 6% 4% 9% Brand penetration ­ Top 10 (purchase/all sample) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 7% 5% 3% 3% 2% 2% 2% 2% 2% 2% 0% i t a il s
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Source: Wine Intelligence 2008, Vinitrac®
81 Wine region awareness and conversion § French regions lead awareness and conversion
Wine region Awareness and Purchase Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Awarereness Conversion (purchase/awareness) 60% 48% 45% 41% 37% 40% 36% 26% 24% 20% 34% 33% 32% 25% 25% 25% 21% 17% 11% 20% 14% 24% 19% 0% Champagne Provence Oregon Bordeaux Chianti Beaujolais Chablis Napa Valley Sicily Loire Source: Wine Intelligence 2008, Vinitrac® 82 Wine region penetration Wine region Penetration (purchase/all sample) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 20% 17% 15% 11% 8% 10% 8% 8% 7% 5% 5% 5% 4% 4% Loire Oregon 0% Bordeaux Champagne Chianti Beaujolais Chablis Provence Côtes du Napa Valley Rhone Source: Wine Intelligence 2008, Vinitrac®
83 § Regular wine drinker shopping patterns § Usage by channel § Usage by retailer
84 Wine consumption in the On trade Wine consumption in the On trade Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100% 80% 60% Yes 86% 92% 40% No
20% 14% 8% Bar or pub Restaurant 0% Source: Wine Intelligence 2008, Vinitrac® 85 Supermarkets dominate shopping location, but other channels enjoy significant share Channels usage when buying wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 In a supermarket
58% In a liquor store 48% In a hypermarket/mass merchant 42% In a department store 28% In a discount store 20% In a wine shop 19% On the internet 18% In a convenience store 18% Through mail order 5% In a membership store 4% From the winery direct 4% 0% 20% 40% 60% 80% Source: Wine Intelligence 2008, Vinitrac® 86 Shop usage Rakuten fills the top position Shop usage when buying wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Rakuten
16% 12% Seiyu 7­Eleve 10% Saty 7% Tokyo Store 7% York Benimaru 3% Netwine 2% YorkMart 1% Posful 1% WinePro 1% 0% 10% 20% Source: Wine Intelligence 2008, Vinitrac® 87 § Consumer profiling § Who are the most valuable consumers in Japan? § Who drinks rosé wine in Japan?
88 § Consumer profiling § Who are the most valuable consumers in Japan?
89 Value by frequency of consumption Value segments profile by frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 1% 5% 3% 19% 80% 24% 60% 40% 18% 7% Most days/every day 25% 38% 50% 28% 70% About once a week 41% 20% 22% 41% 1­3 times a month 11% 0% Low value 2­5 times a week Mid value Significantly higher than two groups High value All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 90 Value segments by gender § Slightly skewed to the female group Value segments profile by Gender Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 56% 52% 44% Low value 56% 55% 49% 44% 45% Mid value High value All Japanese regular wine drinkers Female 60% 40% 20% Male
0% Source: Wine Intelligence 2008, Vinitrac® 91 Value segments by age group § 25­34 group stands out in high value while 35­44 in low value Value segments profile by age groups Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 5% 6% 5% 6%
12% 15% 16% 14% 55 and over 39% 35% 35% 45 ­ 54 80% 60% 30% 35 ­ 44 40% 20% 37% 40% 45% 40% 25 ­ 34 LDA ­ 24 0% 7% 4% 5% Low value Mid value High value Significantly higher than two groups 5% All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 92 Value segments by income Value segments by Income Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 21% 34% 80% 60% 38% 31% Mainstream income 33% 32% 31% 29% 40% 20% 0% Above mainstream income 31% 39% 27% 26% 7% 7% 7% 7% Low value Mid value High value All Japanese regular wine drinkers Significantly higher than two groups Significantly higher than one group only
Below mainstream income Prefer not to answer Source: Wine Intelligence 2008, Vinitrac® 93 Value segments by wine attitudes Value segments profile by wine attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Significantly higher than two groups Significantly higher than one group only
100% 7% 12% 80% 13% 15% 25% 15% 15% 18% 60% 40% 81% 72% 70% 57% 20% 0% Low value Mid value High value All Japanese regular wine drinkers I enjoy trying new and different styles of wine on a regular I know what I like and I tend to stick to what I know I don't mind what I buy so long as the price is right Source: Wine Intelligence 2008, Vinitrac® 94 Value segments by Screw cap closure § Remarkable % of acceptance in the lowest value Value segments profile by Screw­cap closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 22% 80% 22% 34% 26% 60% 55% 40% 50% I like buying wine with this closure Neutral 50% 47% I don't like buying wine with this closure 20% 19% 23% 28% 23% Low value Mid value High value All Japanese regular wine drinkers 0% Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 95 Value segments by Synthetic cork closure Value segments profile by Synthetic cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 13% 11% 14% 12% I like buying wine with this closure 80% 60% 71% 70% 64% Neutral 68% 40% I don't like buying wine with this closure 20% 16% 20% 22% 19% Low value Mid value High value All Japanese regular wine drinkers 0% Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 96 Value segments by Natural cork closure § More than 60% of the sample prefers Natural cork closure in the highest segments Value segments profile by Natural cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% I like buying wine with this closure 48% 63% 65% 59% 60% Neutral 40% I don't like buying wine with this closure 46% 20% 0% 37% 34% 32% 6% 3% 4% 4% Low value Mid value High value All Japanese regular wine drinkers Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 97 Value segments by wine consumption in bars Value segments profile by consumption in bar or pub % of regular wine drinkers that buy wine in bar or pub Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60% 78% 88% 86% 94% 40% No 20% 22% 12% 0% Low value Mid value Significantly higher than two groups 7% High value 14% All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 98 Value segments by wine consumption in restaurants Value segments profile by consumption in restaurants % of regular wine drinkers that buy wine in restaurants Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60% 83% 92% 96% 98% 40% No 20% 17% 5% 0% Low value Mid value Significantly higher than two groups 8% 2% High value All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 99 Value by wine involvement Value segments by wine involvement Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 11% 18% 80% 21% 33% High involvement 40% 60% 44% 51% Medium involvement 40% 40% 20% Low involvement 49% 31% 27% 36% Mid value High value All Japanese regular wine drinkers 0% Low value Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 100 Value segments by drinks repertoire Value segments by Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Red wine Soft drinks White wine Beer Pre­mixed/ready to drink French Champagne Rosé wine Other sparkling wine Sweet/dessert wine Cava Port Sherry Prosecco Low value Mid value High value All Japanese regular wine drinkers 77% 78% 69% 71% 43% 14% 21% 16% 9% 2% 2% 1% 1% 83% 81% 74% 72% 49% 25% 26% 15% 12% 3% 3% 2% 0% 89% 78% 82% 77% 52% 45% 37% 25% 24% 12% 12% 11% 7% 83% 79% 75% 73% 48% 28% 28% 18% 15% 6% 6% 4% 3% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 101 Value segments by channels usage Value segments by channels usage
% of regular wine drinkers that have bought in the following buying channels in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 In a supermarket In a liquor store In a hypermarket In a department store In a discount store In a wine shop On the internet In a convenience store Through mail order In a membership store From the winery direct Other Low value Mid value High value All Japanese regular wine drinkers 57% 42% 39% 11% 20% 5% 10% 14% 2% 2% 2% 2% 55% 46% 41% 26% 17% 16% 14% 18% 3% 2% 3% 4% 62% 56% 46% 48% 23% 37% 31% 24% 10% 9% 7% 2% 58% 48% 42% 28% 20% 19% 18% 18% 5% 4% 4% 2% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 102 Value segments by shops usage Value segments by shop usage
% of regular wine drinkers that have bought in the following stores in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Rakuten Seiyu 7­Eleve Saty Tokyo Store York Benimaru Netwine YorkMart Posful WinePro Low value Mid value High value All Japanese regular wine drinkers 11% 9% 7% 4% 2% 3% 1% 1% 1% 0% 14% 11% 11% 9% 7% 4% 0% 1% 2% 0% 22% 15% 11% 10% 12% 2% 4% 2% 0% 2% 16% 12% 10% 7% 7% 3% 2% 1% 1% 1% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 103 Value segments by country of origin Value segments by Country of origin repertoire % of regular wine drinkers that have drunk from following wine­producing places in the past 6 months
Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 France Italy Chile Germany Australia Spain USA Argentina South Africa New Zealand Portugal Don't know Other Low value Mid value High value All Japanese regular wine drinkers 47% 28% 28% 21% 18% 14% 17% 9% 4% 2% 2% 22% 16% 65% 41% 34% 33% 28% 22% 22% 13% 6% 5% 4% 14% 13% 73% 56% 40% 38% 32% 30% 26% 22% 12% 9% 9% 7% 8% 61% 42% 34% 31% 26% 22% 22% 15% 7% 5% 5% 14% 12% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 104 Value segments by region awareness Value segments by Region awareness
% of regular wine drinkers aware of the following wine­producing regions Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Champagne Provence Oregon Bordeaux Chianti Beaujolais Chablis Napa Valley Sicily Loire Low value Mid value High value All Japanese regular wine drinkers 41% 40% 35% 32% 19% 18% 20% 15% 15% 10% 49% 41% 33% 37% 24% 26% 25% 23% 20% 20% 45% 42% 44% 39% 36% 32% 29% 24% 25% 26% 45% 41% 37% 36% 26% 25% 25% 21% 20% 19% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 105 Value segments by region penetration Value segments by Region penetration
% of regular wine drinkers that have bought wine from the following wine­ growing regions in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Bordeaux Champagne Chianti Beaujolais Chablis Provence Côtes du Rhone Napa Valley Loire Oregon Low value Mid value High value All Japanese regular wine drinkers 8% 4% 3% 4% 4% 4% 2% 1% 1% 1% 17% 11% 6% 8% 7% 4% 4% 4% 3% 1% 26% 17% 17% 13% 14% 13% 10% 11% 9% 10% 17% 11% 8% 8% 8% 7% 5% 5% 4% 4% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 106 Value segments by brand awareness Value segments by Brand awareness
% of regular wine drinkers aware of the following brands Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Carlo Rossi Yellow Tail Montana Gallo Jacob's Creek Woodbridge Torres KWV Robert Mondavi Hardys Low value Mid value High value All Japanese regular wine drinkers 27% 18% 11% 9% 6% 5% 3% 5% 4% 2% 27% 23% 15% 11% 8% 8% 6% 4% 4% 5% 29% 28% 27% 20% 15% 14% 13% 13% 13% 14% 28% 23% 18% 13% 9% 9% 7% 7% 7% 7% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 107 Value segments by brand penetration Value segments by Brand penetration
(purchase / all sample) Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Yellow Tail Carlo Rossi Sunrise Montana Rivercrest Gallo Jacob’s Creek KWV Georges DuBoeuf Robert Mondavi Low value Mid value High value All Japanese regular wine drinkers 5% 6% 3% 0% 1% 1% 1% 1% 1% 0% 9% 7% 4% 2% 2% 0% 1% 1% 2% 0% 12% 9% 8% 7% 5% 6% 5% 4% 4% 5% 9% 7% 5% 3% 3% 2% 2% 2% 2% 2% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 108 Value segments by purchase choice cues Value segments by Purchase choice cues % of respondents that quoted the following quotes as being "Important" or "Very important" when purchasing wine
Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Country of origin Recommendation by friend or family Recommendation by shop staff Region of origin Grape variety A brand I am aware of Appeal of the bottle or label design Promotional offer Alcohol content Medal or award Low value Mid value High value All Japanese regular wine drinkers 48% 49% 47% 33% 31% 31% 29% 37% 29% 13% 56% 55% 52% 44% 41% 36% 35% 32% 24% 22% 59% 54% 52% 56% 56% 47% 40% 31% 32% 33% 54% 53% 50% 44% 42% 38% 35% 33% 28% 23% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 109 Value segments by alcohol level Value segments by Alcohol level perception
% of respondents that "Would buy or Defenetily would buy" wine at the following alcohol levels Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 Alcohol level wine below 9% Alcohol level wine between 9 and 10% Alcohol level wine between 11 and 12% Alcohol level wine of 13% and above Low value Mid value High value All Japanese regular wine drinkers 8% 7% 16% 21% 11% 13% 25% 30% 18% 22% 34% 36% 12% 14% 25% 29% Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 110 Profile of the most valuable consumers: Summary § The most valuable consumers are: § Above mainstream income level § Younger ﴾25­44﴿ § Drinking wine at least twice a week § Adventurous and enjoy trying new styles of wine § Prefer buying wines with natural cork § More likely to consider important when purchasing wine “region of origin”, “grape varietal”, “brand I am aware of” and “medals or awards”
111 § Consumer profiling § Who drinks Sparkling wine in Japan?
112 21% of all regular drinkers have drunk sparkling wine in the past 6 months Sparkling wine consumers Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Non sparkling wine drinker 79% Sparkling wine drinker 21%
Source: Wine Intelligence 2008, Vinitrac® 113 Sparkling wine drinkers profile by frequency Sparkling wine drinkers profile by frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 60% 6% 10% 20% 32% Most days/every day 25% 2­5 times a week 29% 28% 26% 40% 20% 7% 45% 32% About once a week 41% 1­3 times a month 0% Non sparkling wine drinker Sparkling wine drinker Significantly higher than one group only
All Japanese regular wine drinkers Source: Wine Intelligence 2008, Vinitrac® 114 Sparkling wine drinkers profile by gender § Sparkling wine drinkers profile skewed towards female Sparkling wine drinkers profile by Gender Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 53% 58% 55% Female 60% 40% Male
20% 47% 42% 45% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers 0% Source: Wine Intelligence 2008, Vinitrac® 115 Sparkling wine drinkers profile by age Sparkling wine drinkers profile by age groups Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 60% 3% 10% 7% 17% 55 and over 6% 14% 33% 45 ­ 54 35% 36% 35 ­ 44 40% 50% 25 ­ 34 40% 20% 35% 0% 5% 5% 5% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers LDA ­ 24 Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 116 Sparkling wine drinkers profile by income Sparkling wine drinkers profile by Income Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 30% 33% 31% Mainstream income 60% 32% 31% 31% 40% 20% Above mainstream income Below mainstream income 32% 29% 31% 7% 7% 7% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers Prefer not to answer
0% Source: Wine Intelligence 2008, Vinitrac® 117 Sparkling wine attitudes Sparkling wine drinkers profile by wine attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Significantly higher than one group only
100% 11% 80% 21% 16% 15% 15% 14% 60% 40% 73% 65% 70% Sparkling wine drinker All Japanese regular wine drinkers 20% 0% Non sparkling wine drinker I enjoy trying new and different styles of wine on a regular I know what I like and I tend to stick to what I know I don't mind what I buy so long as the price is right Source: Wine Intelligence 2008, Vinitrac® 118 Sparkling wine drinkers profile by Natural cork closure attitudes Sparkling wine drinkers profile by Natural cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 56% 64% 59% I like buying wine with this closure 60% Neutral 40% 20% 0% 40% 33% 37% 5% 4% 4% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers Significantly higher than one group only
I don't like buying wine with this closure Source: Wine Intelligence 2008, Vinitrac® 119 Sparkling wine drinkers profile by consumption in bars or pubs § Sparkling wine drinkers are more likely to drink wine in bar or pubs Sparkling wine drinkers profile by consumption in bar or pub % of regular wine drinkers that buy wine in bar or pub Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60% 85% 90% 86% 40% No 20% 16% 11% 14% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers 0% Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 120 Sparkling wine drinkers profile by consumption in restaurants § Sparkling wine drinkers are more likely to drink wine in restaurants Sparkling wine drinkers profile by consumption in restaurants % of regular wine drinkers that buy wine in restaurants Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60% 90% 96% 92% 40% No 20% 0% 10% Non sparkling wine drinker 8% 4% Sparkling wine drinker All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 121 Sparkling wine drinkers profile by buying frequency consumption in the Off trade ﴾Index﴿ Sparkling wine drinkers profile by Frequency Off trade Index Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Non sparkling wine drinker Sparkling wine drinker 133 With a more formal dinner party at home 82 136 At a party/celebration at home 80 A relaxing drink at the end of the day at home 122 88 123 With an informal meal at home The frequency of Sparkling wine drinkers in all occasion is significantly higher than non sparkling wine drinkers
87 60 80 100 120 140 Index: 100 is the average frequency of consumption of all sample Source: Wine Intelligence 2008, Vinitrac® 122 Sparkling wine drinkers profile by average spend per bottle Off trade Prices in ¥
2,500 Sparkling wine drinkers profile by spend in the Off trade (Average spend in YEN ¥ per bottle) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 2,254 2,250 The spend of sparkling wine drinkers is significantly higher than non sparkling wine drinkers 2,086 2,000 1,910 1,750 1,500 1,819 1,392 1,423 Non sparkling wine drinker 1,250 1,257 1,300 Sparkling wine drinker 1,000 With an informal meal at A relaxing drink at the At a party/celebration at With a more formal home end of the day at home home dinner party at home Source: Wine Intelligence 2008, Vinitrac® 123 Sparkling wine drinkers profile by buying frequency consumption in the On trade ﴾Index﴿ Sparkling wine drinkers profile by Frequency On trade Index Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Non sparkling wine drinker Sparkling wine drinker 144 At a party/celebration big night out 77 141 With a more formal dinner in a restaurant 78 145 With an informal meal in a bar/restaurant 74 155 A relaxing drink out at the end of the day The frequency of Sparkling wine drinkers in all occasion is significantly higher than non sparkling wine drinkers
69 40 70 100 130 160 Index: 100 is the average frequency of consumption of all sample Source: Wine Intelligence 2008, Vinitrac® 124 Sparkling wine drinkers profile by average spend per bottle On trade Prices in ¥
Sparkling wine drinkers profile by spend in the On trade (Average spend in YEN ¥ per bottle) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 4,479 4,500 4,003 4,000 The spend of sparkling wine drinkers is significantly higher than non sparkling wine drinkers 3,500 3,394 3,000 2,500 2,270 2,392 Non sparkling wine drinker 2,000 1,500 3,036 Sparkling wine drinker 1,791 1,914 A relaxing drink out at With an informal meal in With a more formal the end of the day a bar/restaurant dinner in a restaurant At a party/celebration/big night out Source: Wine Intelligence 2008, Vinitrac® 125 Sparkling wine drinkers profile by involvement § Higher involvement within sparkling wine drinkers Sparkling wine drinkers profile by wine involvement Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 15% 80% 30% 21% High involvement 60% 44% 44% 43% Medium involvement 40% 20% 41% 36% Low involvement 27% 0% Non sparkling wine drinker Sparkling wine drinker All Japanese regular wine drinkers Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac® 126 Sparkling wine drinkers by drinks repertoire Sparkling wine drinkers profile by Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Red wine Soft drinks (sodas, water, juice) White wine Beer Pre­mixed/ready to drink French Champagne Rosé wine Other sparkling wine Sweet/dessert wine Cava Port Sherry Prosecco 81% 73% 67% 70% 39% 0% 18% 0% 6% 0% 2% 1% 0% 86% 88% 90% 79% 64% 79% 46% 51% 30% 16% 12% 11% 8% 83% 79% 75% 73% 48% 28% 28% 18% 15% 6% 6% 4% 3% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 127 Sparkling wine drinkers by channels usage Sparkling wine drinkers profile by channels usage
% of sparkling wine drinkers that have bought in the following buying channels in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers In a supermarket In a liquor store In a hypermarket In a department store In a discount store In a wine shop On the internet In a convenience store Through mail order In a membership store From the winery direct Other 56% 44% 38% 20% 18% 13% 12% 16% 4% 3% 2% 3% 62% 56% 49% 42% 24% 30% 29% 23% 7% 7% 8% 2% 58% 48% 42% 28% 20% 19% 18% 18% 5% 4% 4% 2% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 128 Sparkling wine drinkers by shops usage Sparkling wine drinkers profile by shop usage
% of sparkling wine drinkers that have bought in the following stores in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine drinker wine drinker drinkers Rakuten Seiyu 7­Eleve Saty Tokyo Store York Benimaru Netwine YorkMart Posful WinePro 12% 11% 9% 7% 6% 3% 1% 1% 1% 1% 22% 12% 12% 9% 10% 3% 2% 1% 1% 1% 16% 12% 10% 7% 7% 3% 2% 1% 1% 1% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 129 Sparkling wine drinkers by country of origin Sparkling wine drinkers profile by Country of origin repertoire % of sparkling wine drinkers that have bought in the following stores in the past 6 months
Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers France Italy Chile Germany Australia Spain USA Argentina South Africa New Zealand Portugal Don't know Other 56% 36% 30% 28% 23% 17% 19% 12% 5% 3% 3% 17% 13% 71% 51% 42% 35% 32% 31% 26% 19% 11% 9% 9% 10% 11% 61% 42% 34% 31% 26% 22% 22% 15% 7% 5% 5% 14% 12% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 130 Sparkling wine drinkers by brand awareness Sparkling wine drinkers profile by Brand awareness
% of sparkling wine drinkers aware of the following brands Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Carlo Rossi Yellow Tail Montana Gallo Jacob's Creek Woodbridge Torres KWV Robert Mondavi Hardys 24% 19% 14% 9% 7% 6% 5% 5% 4% 4% 35% 30% 24% 21% 14% 14% 13% 12% 14% 12% 28% 23% 18% 13% 9% 9% 7% 7% 7% 7% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 131 Sparkling wine drinkers by brand penetration Sparkling wine drinkers profile by Brand penetration
(purchase / all sample) Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Yellow Tail Carlo Rossi Sunrise Montana Rivercrest Gallo Jacob’s Creek KWV Georges DuBoeuf Robert Mondavi 7% 7% 4% 2% 2% 1% 1% 1% 1% 0% 12% 9% 7% 6% 4% 5% 4% 4% 4% 5% 9% 7% 5% 3% 3% 2% 2% 2% 2% 2% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 132 Sparkling wine drinkers by purchase choice cues Sparkling wine drinkers profile by Purchase choice cues % of respondents that quoted the following quotes as being "Important" or "Very important" when purchasing wine
Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Country of origin Recommendation by friend or family Recommendation by shop staff Region of origin Grape variety A brand I am aware of Appeal of the bottle or label design Promotional offer Alcohol content Medal or award 52% 52% 50% 40% 37% 35% 30% 33% 28% 20% 58% 54% 51% 53% 53% 45% 43% 33% 29% 27% 54% 53% 50% 44% 42% 38% 35% 33% 28% 23% Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac® 133 Profile of Sparkling wine drinkers: Summary § Sparkling wine drinkers: § Around 21% of Japanese regular wine drinkers § Young consumers ﴾25­34﴿ § Drink at least twice a week § More likely to buy wine in restaurants and bars or pubs § More adventurous consumers that like trying new styles of wine § Wine/sparkling wine is the preferred drink at any occasion § When purchasing wine they consider “region of origin”, “grape varietal”, “brand I am aware of”, “appeal of the bottle or label design” and “medals or awards” to be more important than non sparkling wine drinkers
134 § Appendices § Wine Intelligence Vinitrac® methodology
135 Value segments methodology Questions we have asked – Step 1 § Using Vinitrac we have asked to respondents § Frequency of consumption in off trade = 4 different occasions — A relaxing drink at the end of the day at home = “INFORMAL NON FOOD” — An informal meal at home = “INFORMAL FOOD” — With a more formal dinner party at home “FORMAL FOOD” — At a party/celebration at home “FORMAL NON FOOD” § Frequency of consumption in on trade = 4 different occasions — A relaxing drink out at the end of the day = “INFORMAL NON FOOD” — With an informal meal in a pub/bar or restaurant = “INFORMAL FOOD” — With a more formal dinner in a restaurant = “FORMAL FOOD” — A party/celebration/big night out = “FORMAL NON FOOD” § We have estimated the average number of times respondents drink wine per month for each occasion: — If “Less than once a month”, then value = 0.5 — If “1­3 times per month”, then value = 2 — If “About once a week”, then value = 4 — If “2­5 times per week”, then value = 14 — If “Everyday / most days”, then value = 25
136 Value segments methodology ­Step 2 § We have calculated a mean spend per bottle for each occasion in the off trade: § § § § § § § § If “Less than 600¥”, then value = 550 If “Between 600 ¥ and 799 ¥”, then value = 700 If “Between 800 ¥ and 999 ¥”, then value = 850 If “Between 1000 ¥ and 1499 ¥”, then value = 1,250 If “Between 1500 ¥ and 1999 ¥”, then value = 1,750 If “Between 2000 ¥ and 2999 ¥”, then value = 2,500 If “More than 3000 ¥”, then value = 3,250 If “I don’t drink wine on this type of occasion”, then value = 0 § …and a mean spend per bottle for each occasion in the on trade: § § § § § § § § § If “Less than 1,000 ¥ ”, then value = 850 If “Between 1,000 ¥ and 1,999 ¥ ”, then value = 1,500 If “Between 2,000 ¥ and 2,999 ¥ ”, then value = 2,500 If “Between 3,000 ¥ and 3,999 ¥ ”, then value = 3,500 If “Between 4,000 ¥ and 5,999 ¥ ”, then value = 5,000 If “Between 6,000 ¥ and 7,999 ¥ ”, then value = 7,000 If “Between 8,000 ¥ and 9,999 ¥ ”, then value = 9,000 If “More than 10,000 ¥ ”, then value = 10,500 If “I don’t drink wine on this type of occasion”, then value = 0
137 Value segments methodology ­Step 3 § Multiplying the number of times each consumer drink wine and their average spend we have their individual spend per month ﴾including all occasions on and off trade﴿ § We have then allocated each consumer to one of the value segments: — Low value: respondents with the lowest spend 1/3 — Mid value: respondents with middle spend 1/3 — High value: consumers with the highest spend 1/3
138 Vinitrac ® – How can it help you understand the wine consumers and their needs? Vinitrac ® is the only global survey that monitors and tracks wine consumers’ attitudes, behaviour & relationship with wine… Vinitrac ® monitors every aspect of wine drinkers wine lives – from what they drink, where they purchase to their attitude to wine brands & countries of origin.
…It even monitors what varietals they favour and what they think of different closures… 139 Vinitrac ® methodology: Japan Vinitrac ® sample size & methodology:
•Adult drinking age •Permanent resident of the country •Drinks wine at least once per month • Drink at least red or white wine • Buy wine in the off­trade and/or in the on­trade Each sample is weighted to be reflective of the ‘regular’ wine drinking population 140 Vinitrac methodology: Online surveys
Sample sizes: At least 500 per survey; 1000 in most countries, 2000 in US
Regular adult wine drinkers (where ‘regular’ = Drink wine at least once/month)
Each Vinitrac survey starts with questions to screen respondents….. • Adult drinking age within each country • Permanent resident of the country being surveyed • Drinks wine at least once per month • Drink at least red or white wine • Buy wine in the off­trade and/or in the on­trade ..... and rejects all respondents who do not fulfil these Vinitrac criteria w Each sample is weighted to be reflective of the ‘regular’ wine drinking population in that market and is therefore both valid and reliable…it’s like a ‘smaller’ version of the wine drinking population at large
141 Frequently asked question: Is Vinitrac a panel? No • Invitations to participate in Vinitrac are distributed to tens of thousands of adult consumers in each market • Consumers interested in a wine survey are directed to a URL address, which welcomes them to the on­line survey Wine Intelligence monitors incoming completed responses to build a sample representative the wine drinking population of the target market • When a representative sample of at least 1000 (US: 2000) is logged, the survey is closed
w Why not a panel? • Panels are good for monitoring detailed purchase activity but require regular input from the exactly the same complete group of respondents • This requires more time from respondents for which they are paid and are therefore more heavily skewed towards home­based consumers e.g. students and home­makers • This group of a country’s wine drinking population does not fully represent the accurate weighted sample of adult regular wine drinkers on which Vinitrac insights are based
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