Avenue Vine

In spite of a weak U.S. dollar which persisted through the first half of last year, imported
varietal table wines had another solid performance in 2005, increasing an estimated 8% by
volume to a new record of 46 million nine-liter cases, according to the current edition of The
U.S. Wine Market: Impact Databank Review and Forecast. Varietal imports are projected to grow by another 10 million cases by the end of the decade.

Red imports surpassed their white varietal counterparts for the first time ever in 2005, after an
estimated 9% gain to 23 million cases. Much of their continued popularity can be attributed to
Shiraz/Syrah, which led all red varietal imports at an estimated 8 million cases. Predominantly
from Australia, Shiraz/Syrah surpassed Merlot as the largest selling red varietal import in
2004. Imported Cabernet Sauvignon is only half the size of Shiraz/Syrah, but is estimated to
have attained the fastest growth among all major imported varietals (+15% in 2005).

Among imported white wines, two types account for the lion’s share of the varietal market.
Pinot Grigio surpassed Chardonnay in 2001, but Chardonnay once again regained the
number-one slot in 2004. Imported Chardonnay rose 7 percent last year to an estimated 10
million cases, due primarily to the continued growth of Australian Chardonnay. Pinot Grigio,
mostly from Italy, kept pace at 9 million cases, in spite of significant price hikes taken by
Italian producers beginning in late 2003.

For more information about the 2005 edition of The U.S. Wine Market: Impact Databank Review
and Forecast, click here.

Source: The US Wine Market, Impact Databank Review & Forecast, 2005 Edition