WINE CONSUMPTION IS UP, BUT IMPORTS DRIVING GROWTH
For the first time in three years, Americans are not only drinking more wine but are choosing smaller brands that sell less than 1 million 9-liter cases a year, versus the mega-brands. Overall, consumption reached its highest peak in 2005 with a 3.3% increase, but brands selling fewer than 1 million cases grew at double that rate and are expected to continue driving growth, according to Impact Database.
Adams Wine Handbook also reported that U.S. wine consumption by volume has reached an all-time high with per-capita consumption rising to 2.10 gallons, the highest in almost 20 years. Imports increased the most by volume at 5.6% with the top five imported brands experiencing an 11.3% increase, including Yellow Tail which jumped 15.4% or a million cases. Imports from Italy, Chile, Spain, and Argentina showed substantial gains but French imports grew only 2.4% . Domestics rose just 0.9%.
WHAT’S THE CAUSE OF IMPORT SUCCESS? Globalization was a key topic at the Wine Industry Financial Symposium in late September as top industry experts discussed its possible impact. During a panel discussion, Don Sebastiani expressed his concerns that “Napa Valley grape prices are not prepared for competition.”
He pointed out that imports from all over the world are offering wines of excellent quality that are much cheaper than Napa Valley wines, increasing the competition and need for reevaluation. In wine, price and taste almost always trump origin, especially for American consumers.
“Napa Valley has invited that competition. The perception that Napa will always be Napa is lazy thinking,” he was quoted saying in the Napa Valley Register.
Imports into the U.S. from other New World countries rose 21% in 2004 and pose the greatest threat to domestic wines. The wine industry today is a global market and growing ever more so as various wine regions continue swapping techniques and shipping in bulk. As Dan Zepponi of Foster’s Wine Estates America told listeners:
“Globalization and consolidation will continue to shape the wine industry worldwide.”
New World countries have been successful in offering cheaper, good quality wines that fit the flavor profiles of most average consumers. Wineries are making an influx of wines geared towards the consumer and what they like, not the winemaker’s personal preferences. Sweeter, less tannic wines along with easy to pronounce titles and eye-catching labels have succeeded in making wine less intimidating. After all, it’s a business and meant to make profits.
Adams Wine Handbook also reported that U.S. wine consumption by volume has reached an all-time high with per-capita consumption rising to 2.10 gallons, the highest in almost 20 years. Imports increased the most by volume at 5.6% with the top five imported brands experiencing an 11.3% increase, including Yellow Tail which jumped 15.4% or a million cases. Imports from Italy, Chile, Spain, and Argentina showed substantial gains but French imports grew only 2.4% . Domestics rose just 0.9%.
WHAT’S THE CAUSE OF IMPORT SUCCESS? Globalization was a key topic at the Wine Industry Financial Symposium in late September as top industry experts discussed its possible impact. During a panel discussion, Don Sebastiani expressed his concerns that “Napa Valley grape prices are not prepared for competition.”
He pointed out that imports from all over the world are offering wines of excellent quality that are much cheaper than Napa Valley wines, increasing the competition and need for reevaluation. In wine, price and taste almost always trump origin, especially for American consumers.
“Napa Valley has invited that competition. The perception that Napa will always be Napa is lazy thinking,” he was quoted saying in the Napa Valley Register.
Imports into the U.S. from other New World countries rose 21% in 2004 and pose the greatest threat to domestic wines. The wine industry today is a global market and growing ever more so as various wine regions continue swapping techniques and shipping in bulk. As Dan Zepponi of Foster’s Wine Estates America told listeners:
“Globalization and consolidation will continue to shape the wine industry worldwide.”
New World countries have been successful in offering cheaper, good quality wines that fit the flavor profiles of most average consumers. Wineries are making an influx of wines geared towards the consumer and what they like, not the winemaker’s personal preferences. Sweeter, less tannic wines along with easy to pronounce titles and eye-catching labels have succeeded in making wine less intimidating. After all, it’s a business and meant to make profits.
posted at 1:36 PM
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