PURCHASE HABITS OF PEOPLE 35 YEARS OLD AND YOUNGER: AN ANALYSIS OF AMERICAN AND ITALIAN CONSUMER

Created For: Gianluca Garofoli

Prepared By: Erik Schuth, Davide Fanesi, Giacomo Valeriani, Sara Perozzi & Arianna Fiorelli

July15th, 2011

Research Findings

U.S. wine consumption is increasing

Italian wine consumption is decreasing

We have compiled research data from primary and secondary resources and as a result we believe:

American Market: A Profitable Venture

Total U.S. Wine Sales 1991-2010

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

19911993

19951997

19992001

20032005

20072009

Year

Tota

l Sal

es

I. 17 years of consecutive growthII. In 2010 the U.S. became the largest wine consuming nation in the worldIII. Younger generations are adopting wine faster than any other previous generation

Italian Wine Market: A Saturated Market

Exports are growing

Domestic consumption is going down

Total sales are increasing thanks to exports

Value of Italian Wine Sales in Billion Euros

2009 2010 % Change

Italy 4.09 3.89 -4.8

Abroad 3.51 3.93 12

Total 7.6 7.82 3.2

Using Facebook to Reach Our Target Audience

1/5 people in the world has oneTherefore, its the easiest way to reach out target audience.

Our Facebook Survey was answered only by people under 35

Italy: 56% female, 44% maleUS: 40% female, 60% male

Sample size: 244 observations for Italy, 53 for America

Survey 1: Primary Research Results

Italians drink wine more often per week than Americans

1st • Wine

2nd • Liquor

3rd • Beer

4th • Sparkling Wine

Italian Drink Preference American Drink Preference

1st • Sparkling Wine

2nd • Beer

3rd • Liquor

4th • Wine

Comparing the Most Preferred Drink

Place of Purchase Habits

Liquor Stores have a major impact on US purchases because they offered such a wide variety of options for consumers

Main Reason for Not Buying Wine

US: wine is not a cool product. Italy: Wine does not match their new diet habits

US: taste is an obstacle in buying wine.Italy: high price lower the intention to buy

Several Americans surveyed do not drink wine at all.

Survey 2: Restaurant Questionnaire

Sample size: 80 people

Gender of the client: 64% male, 36% female

Over 3525-35

20-25

Under 20

Age groups

All people asking for wine were over 35 years old

Asking for wine16%

No wine84%

Proportion of clients asking for wine

Survey 2: Restaurant Questionnaire

not refresching53%

too much alcohol21%

makes themfeel tired

16%

the answer was "I have to drive"

10%

Reasons For Not Consuming Wine

The majority of people do not find wine refreshing to drink during their meal

Problem: Product Doesn’t Match Their Use!

They wantto be

hyperactive

They drink while

socializing

Problem ofchanging

habits

They prefer drinking a quantity in a single day, than the same splitted in several days

Occasional consumption

Usual consumption

More than 1/2

liter per day 1-2 glasses

per day rarely

11-35 y.o.

7,8% 9,3%

29%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

1) Growing of Binge-drinking

They drink to socialize, not for the taste of the beverage

With food consumption

Social consumption (without food)

2) Change in the occasions of consumption

-50,00%

-40,00%

-30,00%

-20,00%

-10,00%

0,00%

10,00%

20,00%

30,00%

40,00%

Male Female Male Female

Everyday

consumption

Social consumption

(without food)

Percentage change in the consumption of alcoholic

beverages from 2000 to 2010

14-17 years old

18-24 years old

25-44 years old

Recommendations

• Cost $985 USD

• Will proved much more information about U.S. sales and trends

Purchase The Beverage Information Group 2011 Wine Handbook

• Events, Concerts etc

• Social Media

Change the promotion channels Italy