Governor Arnold Schwarzenegger salutes the wines of California at downtown LCBO store

    LCBO announces promotion for California wines next spring

    TORONTO, May 29 /CNW/ - Hollywood arrived at the LCBO Queens Quay store
in Toronto today as California Governor Arnold Schwarzenegger joined LCBO
executives to toast the wines of California and announce a month-long
California wine promotion in 2008. Next spring, wine enthusiasts throughout
Ontario will have an opportunity to kick off summer early by enjoying a taste
of California sunshine in the glass at LCBO stores across the province.
    Governor Schwarzenegger, in Toronto on a special trade mission, joined
LCBO Chair Philip Olsson and President and Chief Executive Officer Bob Peter
to announce the California wine promotion from April 28-May 25, 2008 that will
heighten the profile of products from the Golden State.
    Robert P. (Bobby) Koch, President and CEO of the Wine Institute of
California, said, "We are thrilled to have Governor Schwarzenegger support and
celebrate the announcement of next year's LCBO promotion. He is passionate
about all things Californian, and, in particular, our wines. The Governor
recognizes the contributions of California's vintners and wine grape growers
as a unique and special part of California and we are grateful for his
presence here in Ontario."
    The LCBO is working with the Wine Institute of California to create this
first-ever, thematic promotion devoted exclusively to California wines. The
promotion will be held in 600 LCBO stores and bring to life the vitality,
sunshine and lifestyle that have made California so famous. LCBO will also
work with trade partners on displays and associated promotions, such as
additional advertising, in-store tastings and special events in LCBO's
11 event kitchens, where California cuisine will be paired with California
wines.
    To coincide with the California wine promotion, VINTAGES, LCBO'S fine
wine and premium spirits division, will also be featuring a special release of
35-40 premium and super-premium wines from various California regions in
April 2008.
    "We're pleased the Governor of California is with us today to announce
LCBO's 2008 California wine promotion," said LCBO Chair Philip Olsson. "Our
customers appreciate and value having a wide selection of wines from around
the world and California wine sales are growing at the LCBO."
    California wines are enjoying a resurgence in the Ontario market. Sales
at the LCBO for the fiscal year ended March 31st were up 17.4 per cent to
$105.2 million. LCBO offered more than 500 California wines last year,
representing many California wineries, most of them featured through VINTAGES.
This included 14 in the VINTAGES Essentials program, where popular VINTAGES
wines are offered on a year-round basis.
    "Our marketing activities in the Ontario market have been key components
in driving interest in the California category and we believe that our
efforts, especially over the past few years, are now paying off," said Rick
Slomka, Canadian Director of the Wine Institute of California. "The stronger
Canadian dollar, new and exciting products and an improved selection of
quality wines are all contributing factors to the renewed energy in the
California wine industry."
    "It is a pleasure to work with the forward-thinking and quality-oriented
California Wine Institute on the upcoming promotion and other initiatives that
should continue to build consumer interest and sales," added LCBO President
and CEO Bob Peter.
    The Wine Institute of California, established in 1934, is a trade
association of 1,000 California wineries and affiliated businesses dedicated
to initiating and advocating public policy to enhance the environment for the
responsible consumption and enjoyment of wine. Based in San Francisco, the
Institute has also established promotional campaigns in 20 countries around
the world to further global recognition of the California wine industry, which
holds the title of world's fourth largest wine producer.
    The Canadian office coordinates a number of promotional activities every
year designed to educate and inform media, trade and consumers about the
quality and diversity of products available from the Golden State. For more
information on the Wine Institute of California, visit the website at
www.wineinstitute.org or www.calwine.ca.

    Note: see enclosed CWI California wine primer and LCBO backgrounder on
    California wines.

                           A California Wine Primer

       Everything you need to know about liquid sunshine in the glass

    -   California is America's top wine producer, making 90% of all
        U.S. wine

    -   California is the fourth leading wine producer in the world behind
        France, Italy and Spain

    -   California's wineries are predominantly family-owned and
        multi-generational

    -   Attracts 19.7 million tourists annually to all regions in California

    -   Generates wine-related tourism expenditures of $2 billion in
        California

    -   Produces $51.8 billion in economic value for California

    -   Generates $125.3 billion for the U.S. economy

    -   Creates 309,000 jobs in California and a total 875,000 jobs
        nationwide

    -------------------------------------------------------------------------
    California Wine Industry Profile      (based on 2005 data)
                                          MKF Research LLC and Wine Institute
    -------------------------------------------------------------------------
    Number of Bonded Wineries             2275  Nearly all family-owned
    -------------------------------------------------------------------------
    Number of California Grape Growers    4,600
    -------------------------------------------------------------------------
    U.S. Wine Exports                     $672 million winery revenues
     (95% from California)                up 391% from $137 million in 1990;

                                          43 million (cases to 165 countries)
                                          up 258% from 12 million cases in
                                          1990
    -------------------------------------------------------------------------
    Winegrape Acres                       522,000  (Though vineyards cover
                                          less than 1% of the state's
                                          terrain)
    -------------------------------------------------------------------------
    Average Tons Harvested of             3.1 million
     Winegrapes
    -------------------------------------------------------------------------
    Farm Gate Value of Winegrapes         $1.78 billion
    -------------------------------------------------------------------------


    California Wine Facts & Figures
    Wine knowledge to amuse and peruse

    Good news for the waistline!

    Wine is fat free and contains no cholesterol. A 4-ounce glass of table
wine has about 80-100 calories.

    Just how many grapes are in that bottle of wine?

    It takes about six to eight clusters, or approximately 600 to 800 wine
grapes (2.4 lb), to make a bottle of wine.
    One barrel of wine contains 740 lb of grapes, equivalent to 59 gallons or
24.6 cases of wine.

    And how many bubbles in a bottle of bubbly?

    It is theorized there are approximately 44 million bubbles in a bottle of
sparkling wine/Champagne.

    What's on top in 2006?

    Chardonnay, with 95,000 acres, is the wine type variety with the most
acreage planted in California.
    Cabernet Sauvignon was the second most planted winegrape in California
with 77,000 total acres.
    Chardonnay is the leading varietal wine, followed by Merlot, White
Zinfandel and Cabernet Sauvignon. Together these four varietals make up over
half (53 per cent) of wine sales in retail stores.

    Variety is the spice of life in the Golden State

    Wine-type grapes are grown in 46 of California's 58 counties, covering
527,000 acres in 2006.
    There are more than 107 American Viticultural Areas (AVAs) in California
(distinct winegrape growing areas recognized by the U.S. government), a
testament to the variety of microclimates in the state.
    California wines have benefited from the unique and varied mix of cultures
that found new homes in the Golden State, from Spanish missionaries who
established the state's first vineyards and wineries beginning in 1769, to the
German, Italian and other European immigrants who founded California's pioneer
wineries, and to the farmers, researchers and entrepreneurs who helped create
the modern California wine industry. The highest vineyard in California is the
Shadow Mountain Cabernet Sauvignon vineyard located at an elevation of 4,400
feet above sea level in the mountains of San Diego.
    California's 2,000 bricks and mortar commercial wineries are predominantly
family-owned and operated.
    There are more than 60,000 registered California wine labels.

    Sustainable wine practices take root

    The trend in sustainable winegrowing and winemaking practices is growing
quickly in California. Vintners and growers who represent 53 per cent of the
annual wine case production and one quarter (172,000 acres) of the state's
wine acreage currently participate in the Code of Sustainable Wine Growing
Practices program.

    California wine is good for the bottom line

    California wines accounted for 63 per cent of the total 716 million
gallons - both foreign and domestic - consumed in the U.S. in 2006, or roughly
two out of every three bottles sold in the country.
    California winery shipments comprised roughly $17.8 billion of the
$27.8 billion estimated retail value of all wine sold in the U.S. in 2006.
    Wine is California's most valuable finished agricultural product. The
overall economic impact of the wine industry on the economy of California
exceeds $51.8 billion.
    The expansion of exports of California wine over the last decade has
dramatically increased from $196 million in 1994 to $876 million in 2006.

    Second only to Disneyland

    Wineries and vineyards are the second most popular tourist destination in
California after Disneyland. A total of 19.6 million tourists visit the
state's wine regions each year.



                    LCBO backgrounder on California wines

    -   LCBO California wine sales were up 17.4 per cent to $105.2 million,
        as of fiscal year-end March 31, 2007. California Wines Category sales
        increased 12.5 per cent overall to $68.3 million while VINTAGES sales
        increased 27.7 per cent to $36.9 million.
    -   LCBO offered more than 500 California wines last year, many of them
        through VINTAGES, including 14 in the VINTAGES Essentials program
        that features fine wines on a year-round basis.
    -   Pinot Noir sales continue to be strong, with sales up 138 per cent in
        the Wines Category and 72 per cent at VINTAGES.
    -   California Wines Category highlights:
           -  Reds are up 21 per cent; Cabernet Sauvignon is up 29 per cent
           -  Whites are up 13 per cent; Pinot Grigio is up nearly
              186 per cent
           -  Some 120 California wines available year-round
    -   VINTAGES California wines highlights:
           -  Reds are up 30 per cent: Cabernet Sauvignon is up 46 per cent
              and Merlot is up 27 per cent
           -  Whites are up by 20 per cent, with Chardonnay up 25 per cent
           -  California represents 13.5% of total VINTAGES net sales and now
              ranks third overall in supplying countries, surpassing
              Australia
           -  VINTAGES released 454 California brands last year
    -   California Cabernet and Chardonnay have come back in fashion with
        growth in wines priced over $20 and over $30. LCBO sees opportunities
        for additional premium and super-premium sales growth in California
        wines.
    -   The June 23, 2007 VINTAGES release will focus on new and emerging
        California wine regions, with a feature story on Paso Robles - a
        region with great growth potential. This release will feature some
        25 California wines, including a wine of the month. VINTAGES also
        recently added a wine from the Paso Robles region to its Essentials
        portfolio.
    -   LCBO appreciates the commitment and leadership of the California wine
        industry in sustainable agricultural practices and organically-grown
        grapes. These are becoming more important to consumers, who
        increasingly express a preference for environmental choices.
    -   California is also helping LCBO lead the move to
        environmentally-friendly packaging. Four California brands in
        15 various sizes, in both PET plastic and Tetra Pak containers, are
        currently offered at the LCBO. Sales of these wines amounted to
        $4 million last year. This was six per cent of all wines in non-glass
        containers.
    -   LCBO staff work with the California Wine Institute on new initiatives
        that continue to build consumer interest and sales. One important
        initiative is LCBO's first-ever thematic promotion devoted
        exclusively to California wines taking place in LCBO stores from
        April 28-May 25, 2008. This promotion will bring to life the
        vitality, sunshine and lifestyle of California, with up to
        20 end-aisle displays and promotions, such as advertising, in-store
        tastings and special events in 11 event kitchens, where California
        cuisine will be paired with California wines.
    -   To coincide with this promotion, VINTAGES will also be featuring a
        special release of 35-40 premium and super-premium wines from various
        California regions.

    Media contact:
    Linda Hapak
    LCBO Corporate Communications
    416 864-6383
    linda.hapak@lcbo.com

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/

For further information: Media contacts: Paula Oreskovich, Praxis PR,
(905) 949-8255 ext 223, paula@praxispr.ca; Linda Hapak, LCBO Corporate
Communications, (416) 864-6383, linda.hapak@lcbo.com