2014ANNUAL REPORT

Expectations--great expectations--are what have made the Washington state wine industry what it is today. They are what the drive us toward our great potential for tomorrow.

For over a dozen years the WashingtonWine Industry Foundation (WWIF) hashelped to meet your expectations andstrengthen the future of the Washingtonwine industry by advancing education,research and leadership.

“ WWIF brings the industry together by focusing on identi�ed needs - scholarships, special projects, etc - and serves as an e�ective fundraising vehicle to achieve these goals.”

–Carol Munro, Ste Michelle Wine Estates

MEETING EXPECTATIONS IN 2013-2014

Toward ful�llment of its mission, WWIF’s goals are to:

Expand public awareness of the Foundation

Support education and leadership needs of grape growers, wine makers, and industry students

Support research

Build infrastructure for a strong organization

ScholarshipsThe last year has been a banner year for supporting education. WWIF’s scholarship program underwentextensive review, improvements, and fundraising. The purpose was two-fold: To keep up with growth,scholarship infrastructure and procedures needed attention. Additionally, both improvements and fund-raising increased the impact WWIF can make in the support of education for industry students.

WSU Teaching Vineyard

Industry Projects Funded Through Grant AwardsWWIF continues to support both grower and winemaker education as well as research through the pursuit,receipt and implementation of substantial grant funds for industry projects. The following pages highlightcurrent grant projects.

Meanwhile…WWIF is building capacity to e�ectively respond to industry needs. A strategic planning e�ort started in 2012continues to strengthen the organization from the inside out. And, improved communication e�orts areyielding increased media coverage of WWIF’s service to the industry and increased industry awareness of WWIF.

WWIF’s 2013 ™ Auction Fund-a-Need project to remediate, improve, and increase existinginfrastructure at the WSU teaching vineyard is an exemplary e�ort in support of student education. Theproject is explored in greater detail in the following pages.

EDUCATION

The Foundation o�ers scholarships for students preparing for careers in the grape and wine industry. Currentscholarships include:

More than $110,000 in WWIF scholarships awarded since 2001!

Scholarships

Walter J. Clore Scholarship

An endowed scholarship established in 1997 by the Washington Association of Wine Grape Growers.

Annual awards range from $500 to $2,000.

Horse Heaven Hills Wine Growers Scholarship

An annual fund made possible by the Horse Heaven Hills Wine Growers. Two $1,500 awards are o�ered.

2014ANNUAL REPORT

Congratulations 2013 Washington Wine Industry Foundation Scholarship Recipients!

Allison Baker - Mercer Island, WA - Attending Washington State University

Adam Bright - Caldwell, ID - Attending Washington State University

Bhanu Donda - Hyderabad, India - Attending Washington State University

Lyle Dowsett - Touchet, WA - Attending UC Davis

Kenneth McMahon - Ft. Thomas, KY - Attending Washington State University

Braden Mortensen - Zillah, WA - Attending Yakima Valley Community College

Jensena Newhouse - Sunnyside, WA - Attending Yakima Valley Community College

Taylor Oswald - Walla Walla, WA - Attending Washington State University

Foundation Scholarship

An endowed scholarship established in 2013 by the WWIF Board of Directors and the families and

friends of Charles Lill, Michael Manz, Glenn Coogan, and John Farmer. In 2014, ™ Auction

Fund-a-Need donors created the opportunity for the fund to o�er sizeable scholarship awards. Annuals

awards are o�ered up to $5,000.

EDUCATION Continued

Past Scholarship Recipients: In Their Own Words

2014ANNUAL REPORT

“This generous assistance has made it possible for me to focus on maintaining a highlevel of academic work ethic without the added burden of �nancial strain. I am gratefulto WWIF…for also promoting the education and training of many of my peers…the"next generation" of winemakers and viticulturists in Washington.”

–With assistance from six WWIF scholarships,Adam K. Bright graduated from Washington State University with a B.S. in Viticulture and Enology, and he was hired by Ste Michelle Wine Estates in 2014.

"Receiving multiple scholarships from the Foundation provided invaluable support whileI earned my Master’s degree at WSU.”

–As a graduate student at Washington State University, Geo�rey Hall was dedicated to his research on the causes of “berry shrivel,” and how it e�ects both viticulture and wine. 2015 will mark the second year Hall has served as Poster Session Chair at the Washington Association of Wine Grape Growers annual Convention.

“For me, winning the Clore Scholarship helped meet my immediate �nancialneeds as a student but more importantly o�ered motivation for years. I knewthat the scholarship committee had deemed me worthy of the award and hadfaith in me and the contribution I would make to the industry.”

–Marcus Miller works at his family-owned Air�eld Estates Winery in Prosser. He also serves on the WWIF Scholarship Selection Committee.

WSU Teaching VineyardA 2013 ™ Auction Fund-a-Need project, the WSU Teaching Vineyard, next to the future home of theWine Science Center at the WSU Tri-Cities campus, is a critical "outdoor lab" for 75 undergraduate students togain skills in all areas of managing a vineyard.

The need was identi�ed for a viable, high quality, self-sustaining, well-managed teaching vineyard for practical,hands-on student experience at Washington State University. The project underway will remediate, improve,and increase existing infrastructure of the teaching vineyard.

The generosity of Fund-a-Need donors has been a leveraging tool as WWIF Board members have workedwith WSU and a number of industry stakeholders to outline and implement an improvement and expansionplan made possible almost entirely by donated materials and labor. When it is complete, the $15,000 ofFund-a-Need dollars will largely be used to fund a student vineyard manager position.

GrantsThe Foundation actively seeks out state and federal grant funding to address needs within the Washingtongrape and wine industry. Upon receiving a grant award, WWIF �lls the role of “project manager,” coordinatingwith industry members to see a project through to completion.

EDUCATION Continued

Over $2 million in grants received on behalf of the industry since 2002!

Grants Continued

2014ANNUAL REPORT

Current grant projects managed by WWIF focus on grower and wine maker education

$14,981 to support a Pest Management Strategic Plan workshop and produce a revised and updatedplan for IPM in Washington state wine grape production

$284,750 to ensure access to clean plants for the Paci�c Northwest by testing vines in nurseries that sellcerti�ed plants, as well as extensive outreach and education on clean plants

$100,000 to assist with outreach and education for clean plants targeting Spanish speaking vineyard sta�

$200,039 to develop training manuals, mobile apps, and web-based instruction materials in English andSpanish to reduce winery accidents, improve safe work practices, and establish a 'safety culture' in smalland mid-sized wineries

“My involvement [with WWIF] centers on the economic impact toour state... The wine industry plays a vital role for Washington asa �ourishing sustainable industry that provides products that aregaining popularity all over the world….helping the industry growis very rewarding.”

–Brad Walker, Walker & Associates

LEADERSHIP

Agforesty Grape SeatTogether with the Washington Association of Wine Grape Growers and Ste Michelle Wine Estates, theFoundation secures a designated “grape” seat in the AgForestry Leadership Program every other year. The$7,500 total biennial commitment reserves a spot in the two year program for a member of the wine andgrape industry. This support is made possible by WWIF’s Leadership Fund, a 2011 ™ AuctionFund-a-Need project.

“The Foundation gives me another opportunity to have an impacton the future and viability of our wine industry.”

–Paul Champoux, Champoux Vineyards

FINANCIAL OVERVIEW2014ANNUAL REPORT

FundraisingThe Washington Wine Industry Foundation is a 501 (c) 3 nonpro�t. As such, grant funding for speci�c projectsand contributions from fundraisers make up the majority of WWIF’s income.

The ™ Auction, held in February during the Washington Association of Wine Grape Growersannual convention, and the Wine Cup® Golf Tournament held each July are two opportunities to supportWWIF’s work. Each fundraiser welcomes donations, sponsorships, and participation! We thank all whodonated this year!

Scholarships -

Projects -

Programs -

Grants -

$210,000

$15,000

$47,000

$564,000

“I joined the Foundation board to not only give back but to beproactive in assisting our industry to be as successful as possible. A strong successful industry bene�ts everyone: jobs, economic energyfor the state and communities, and the industry itself.”

–Tom Waliser, Beresan Winery

Airstrike Bird Control, LLC Al Fountain Albert Don, Wycko� Farms Alexandria Nicole Alumni of Walla Walla Community College’sEnology & Viticulture Program Anthony's Restaurant Antoine Creek Vineyard Arbor Crest Wine Cellars Art McIntosh, Lindsay Creek Vineyard Balboa Winery Bank of the West Barnard Gri�n, Inc. Beresan Winery Beth Roller, Milbrandt Vineyards Winery Bill Dickard, Shaw Vineyards Brian Carter, Brian Carter Cellars Butch and Lisa Milbrandt, Milbrandt VineyardsCanton Cooperage Carolyn Troy Carrie and Glen Fukuyama, Kiona Vineyards Winery Cascade Analytical Inc.

Cave B Estate Winery & Resort Champoux Vineyards Chateau Ste Michelle Chef Bill and Adriatic Grill Chris’s Stu� CoE�cient Consulting Col Solare Colin Morrell, The Hogue Cellars Columbia Crest Columbia Winery Cooperages 1912 Napa Courtyard by Marriott, Columbia Point, RichlandCourtyard Tacoma Downtown Coyote Canyon Winery Davenport Cellars David and Ena Green DeLille Cellars Delton BondsDennis Carter Dermot Cole DoublebackDoug Rowell, McKinley Springs

Dunham Cellars Dusted Valley Enartis Vinquiry Forgeron Cellars Garrett Grubbs, Brian Carter Cellars Gaylord Mink Gordon Estate/Kamiak Vineyards Greg Bruce, Antoine Creek Vineyards Greg Letendre Gregg Marrs Gudrun Parker Holiday Inn Downtown Yakima Horse Heaven Hills Brewery Horse Heaven Hills Wine Growers Inland Desert Nursery, Inc Jane and Larry Pearson, Tapteil Vineyard & WineryJason and Leah Schlagel, Milbrandt Vineyards Jason and Nora Goldon Jason Domanico, Domanico Cellars Je� and Shelia Jirka, Davenport Cellars Je� Gordon, Gordon Estate / Kamiak Viney Je� Sample, Inland Desert Nursery Jerry Bartlett, Cedar Grove Composting, Inc. Jesse Lyon, Davis Wright Tremaine LLP Jim and Carla Willard, Skyline Orchard JMS Flower Farms Joe Hattrup, Elephant Mountain Vineyards John Chiles, Two Coyote Vineyards John Derrick, Mercer Canyons Inc. Jorja Artz, Artz Vineyards, LLC Julie Brown Kari Van Beek, Ste. Michelle Wine EstatesKeith Wesselschmidt, V2 Wine Group Kestrel Vintners Kevin Corliss, Ste Michelle Wine Estates Kevin Judkins, Inland Desert Nursery Inc Kristen Winn L’Ecole Winery La�ort USA Lake Chelan Winery Larry Crockett, Crockett CellarsLeonetti Cellar Lynn DeVleming, Basalt Cellars Lynne Chamberlain, Spo�ord Station Mark Freund, Silicon Valley Bank Mark Wheeler, Stone Tree VineyardMarla Newhouse, Upland Vineyards Maryhill Winery

Mercer Estates Winery Michael Mays Mike Andrews, Coyote Canyon Vineyard Mike Campbell, M. Campbell and CompanyMike Means, Ste Michelle Wine Estates Mike Wlodarczyk, Goose Ridge Estate Winery Milbrandt Vineyards Milo May, Mays' Discovery Vineyard Monvera Glass Décor Naches Heights Vineyard Nancy Harnasch, Berntsen Porter & Company North Slope Management Northstar Northwest Farm Credit Northwest Farm Credit Insurance OS Winery Paci�c Northwest Ballet Pasta Mama’s Pat and Lesa Mokler Patricia and David Gelles, Klipsun Vineyards Paul and Judy Champoux, Champoux Vineyards LLC Peggy Sullivan Peha Promotions Pepper Bridge Winery Phil Cline, Naches Heights Vineyard & Winery Preston Family Preston Vineyards Rack & Maintenance Source Raymond Curtis, Northwest Mountain Winery Reasonable Racks Red Lion Hotel Pasco Red Lion Hotel Port Angeles Reed and Lisa McKinlay, Coventry Vale Winer Richland Marriott Riedel USA Rio Vista Winery Rob Andrews, McKinley Springs Vineyards Rob Mercer,Mercer Canyons Inc. Rob Newsom, Boudreaux Cellars Robert McKinney, Ste. Michelle Wine Estates Roger and Paula Gamache, Gamache VineyardsRyan Franklin, Moss Adams, LLP Saddle Mountain Vineyards Sagemoor Vineyards Scott and Vicky Williams, Kiona Vineyards Scott Hoolsema Sea Glass Fine Art Seattle Seahawks

FINANCIAL OVERVIEW Continued 2014ANNUAL REPORT

FINANCIAL OVERVIEW Continued2014ANNUAL REPORT

Seattle Sounders FC Seattle Symphony Seven Hills Winery Shaw Vineyards Sleight of Hand South Seattle Artisan Wineries Spring Valley Vineyard Stacie Hamilton, Hamilton Cellars Stephanie Meier, Stoel Rives Steve Griessel, Betz Family Winery Superior Fruit Equipment Susan M. Johnson, Stoel Rives LLP Suzanne Haggard, Rio Vista Winery Tapteil Winery The Capitol Theatre The Hogue Cellars Thomas O'Brien, CliftonLarsonAllen Three Rivers Winery Tim Rogan, Francisca's Vineyard Tom and Debbie Waliser, Beresan Winery Tonnellerie Radoux—Oak Tradition Tri Cities Fever

Tri-Cities Visitor & Convention Bureau Tsillan Cellars Winery Tyson Schi�ner, Betz Family Winery Va Piano Vineyards Van Doren SalesVinmotion Wines Vintage Nurseries LLC Walla Walla Vintners Walter Clore Wine & Culinary Center Washington Association of Wine Grape Growers Washington Fruit Watermill Winery Wells Fargo Willows Lodge & Barking Frog Wilson Orchard and Vineyard Supply Winery Compliance Northwest Inc. Woodinville Wine Country Woodward Canyon WSU Plant Pest Diagnostic Clinic WSU Viticulture & Enology Program Yakima Symphony Orchestra

BoardChair - Roger Gamache, Gamache VintnersVice Chair - Carol Munro, Ste Michelle Wine EstatesTreasurer/Secretary - Rob Sullivan, O-S Winery

“WWIF is the conduit for companies invested in the industry and forentities that want to participate either personally or as philanthropists,to advance the industry. For me, we can help with the hurdles of theindustry, and we can help our communities. How could I not want tobe a part of that?”

–Chair Roger Gamache, Gamache Vintners

Make a Gift to the Annual FundAs spring is…sprung, and you are reviewing your goals for this harvest and this vintage, think about yourexpectations for the industry. Will you make an investment to help realize those expectations? Will you makea contribution to the Wine Industry Foundation?

Greg Lill, DeLille Cellars - Paul Champoux, Champoux Vineyards, LLC - Tom Waliser, Beresan WineryStephanie Meier, Stoel Rives - Jamie Peha, Peha Promotions, LLC - Bill Shibley, NW Farm Credit ServicesBradley Walker, Walker & Associates - Mark Wheeler, Saddle Mountains VineyardsSimon Siegl, Coe�cient Consulting

ANNUAL FUND GIVING 2014ANNUAL REPORT

Yes! Count on me to support to the future of the Washington wine industry by advancing research, educationand leadership with my generous gift, today.

$50

$100

$250

$500

$1,000

$2,500

Other $______

My company will match my contribution. Company _________________________________

Contact: ____________________________________ Phone: ______________________________

Your Name: ______________________________________________________________________

Contact name if di�erent: ___________________________________________________________

Mailing Address: __________________________________________________________________

City: __________________________________________ State: ____________ Zip: _____________

Phone: _________________________________ Fax: _____________________________________

Email: ___________________________________________________________________________

Payment:Three convenient options: 1. Make your gift Online at: www.washingtonwinefoundation.org 2. Call us at 509-782-1108 3. Complete this form and return by mail or fax to 509.782.1203 I want to make a one-time gift to WWIF by check. I want to charge my one-time gift to my credit card. Visa, MasterCard, Discover, and American Express are accepted. We will call you for credit card information

Your gift is important, thank you for your support!

WWIF is a 501(c)(3) and our EIN number is 91-2138330. All gifts are tax deductible to the extent allowed by law. Please keep a copy for your tax records.

203 Mission Ave., #107 / PO Box 716, Cashmere, WA 98815Phone: 509-782-1108 Fax: 509-782-1203

info@washingtonwinefoundation.org

The Washington Wine Industry Foundation is a 501 c 3 nonpro�t with a mission to strengthen the future of theWashington wine industry by advancing research, education, and leadership.

Angel Share ™ Auction 2013

Wine Cup winners 2013

Wine cup winners 2013 WWIF receives award from WSUfor being a major contributor

LOOKING BACK2014ANNUAL REPORT