FOR IMMEDIATE RELEASE
CONTACT: Julie Ann Kodmur
707/963-9632 or corking@julieannkodmur.com

BACKGROUNDER:
MARKETING SURVEY RESULTS

June 1999---All of ZAP's producer members were sent a marketing survey in early 1999. What follows is an "executive report"-style summary of the results:

The majority of ZAP producer members make other varietals as well.

One member winery was making Zinfandel in 1940. New members join and are planting Zinfandel vineyards every day.

Retail prices for Zinfandel range from $5.99 to $40.00. The responses to our survey spanned:

• $4.99-9.99: 14%
• $10-14.99: 11%
• $15-19.99: 45%
• $20-29.99: 20%
• $30 & up: 10%

1997 Zinfandel case production [of our members who responded] ranged from 180 cases to 175,000.

What about the importance of estate-grown grapes? That doesn't seem to be as important today: as many of you use 100% estate-grown grapes as buy all of your grapes (25% each).

"In what year do you feel your Zinfandel caught on with the public?" was answered every possible way, from "since day 1" to "we're still waiting" to "has not caught on in the broad market."

"What do you feel has been the single biggest change in the marketplace since you started producing Zinfandel?" There were many "markers" cited by all of you: these include:

• acceptance of Zin as a quality red varietal, taking its place among Cab, Merlot & Pinot Noir
• recognition & demand for the varietal
• merlot
• understanding that Zin is a red wine
• greater appreciation of California wines
• single vineyard designations and higher alcohol acceptance
• growing realization that Zin is a California-only varietal in a wine market that is now drowning in imports
• abuse of the "old vine" qualification
• number of Zins above $30 in the market
• openness to different appellations
• all styles of Zin have been accepted (i.e. claret, late harvest)

"Who is your typical Zinfandel customer?" We didn't expect a consensus answer on this question, and we were right. Probably most of us-or the outside world, at any rate-assumed everyone would answer (as many of you did) "free spirits, anti-snobs, adventurous wine drinkers," "anyone who likes to have fun," "Zin nuts," "non-mainstream wine buyers, scientists, college professors, people who don't wear suits," just as many answered that the typical Zin customer is "fairly knowledgeable, daring enough to be different," "knows CA wine and producers at a greater level than the average consumer," "value conscious consumers," "food lovers," "A to Z," wine drinkers and food eaters rather than wine and food tasters" and "very wide range, not really typical, young and old, men and women, generally much more hang-loose and less pretentious than the crowds at Cabernet bashes."

"What style of Zinfandel do you feel is most popular with American consumers today?" was answered primarily as "big:"

• "full, ripe Zins with lots of fruit, varying amounts of oak and moderate alcohol"
• "big, rich, heavy, spicy, dark"
• "full bodied, lots of varietal fruit character, balanced"
• "there is stratification---the informed, knowledgeable consumer is seeking the rich, more expressive styles and the broader general consumer looking for more forward and fruity wines"
• "14-16% alcohol fruit bomb"
• "big, robust heavily extracted style that is richly concentrated and high in alcohol"
• "soft & easy drinking, full bodied with some spice but low acid"

There was some difference of opinion:

• "customers seem most interested in Zins having a spicy, peppery quality but not too bold or big; heavy alcohol Zins do not seem popular"
• "all styles are pretty much accepted."

"Will preferred Zinfandel style change in ten years?" Again, no consensus here, with answers split between the "bigger, bolder spicier" camp and "gradual move to more refined styles, better oak treatment but still lots of ripe fruit," "alcohol levels more in check as well as less oak, styled after southern Rhones, good fruit-driven wines," "more claret style, food friendly with less wood and alcohol for ageability" and "more elegance" and "ever increasing focus on single vineyards."

"Biggest obstacle to increased sales in the US today?" Many astute answers here, including:

• "its legacy as a jug wine"
• "grape sources"
• "restaurant awareness, range of styles, high alcohol levels"
• "merlot is getting a lot of the new red drinkers."
• "Cabernet drinkers and $. We need consistent quality in our Zins."
• "consumer education, getting people to simply expand their horizons with respect to "new" varietals."
• "low priced foreign wine"
• "planting of new Zinfandel too limited, overcropping, alcohol levels exceeding 14.5%, over pricing"
• "too much bad red Zinfandel"
• "restrictive direct sales/shipping laws"
• "price: Zin is not a varietal people feel as comfortable spending larger sums on, yet many still want the prestige brands"
• "advertising and marketing of the product, need a catchy phrase"
• "lack of acreage in cool viticultural areas"
• "proliferation of styles and then not necessarily synchronized to any given consumer's expectations. Also, the press still focuses on chocolate (Cabernet) and vanilla (Chardonnay)."

What conclusions can we draw? Certainly we have learned that there is a continuing need to define and differentiate Zinfandel. There is a critical need to continue educating. We've learned that there are very few only-Zinfandel producers out there. There's quite a difference of opinion about when---and/or if---Zinfandel has caught on with the public.