UC DAVIS PROFESSOR ADDRESSES STATE OF THE WINE INDUSTRY
Robert Smiley, professor of wine studies at the University of California, Davis, addressed a number of important issues at the Wine Industry Financial Symposium in Napa. In a survey of wine industry insiders and execs, Robert asked questions concerning the popularity of Pinot Noir, global branding, alternative packing, nutrition labeling and future wine industry issues.
Most interestingly, he predicts California vintners are headed for a supply problem in the next five years as demand outstrips the number of wineries in the state.
“The demand continues to grow in this 4 to 5% range, and in 4 to 5 years that’s 20 to 25% more volume and there is just not enough vineyard land and people putting vineyard into production.”
Other challenges include consolidation among retailers and distributors, global competition and regulation issues that plague the entire alcohol beverage industry. Some other interesting quotes are as follows:
“We continue to see a huge amount of interest by the consumer in appellation and the nuance of where the wine is from... If that goes away, we just become a commodity.”
“Ingredient labeling should be limited to ‘Contains Sulfites’ and ‘May Contain Allergens.’ All other ingredients in a bottle of wine change with every bottling. If wineries are expected to change labels constantly, the cost could be prohibitive and could put some wineries out of business.”
Dr. Smiley posted a copy of the survey results on the UC Davis website. To view the presentation, click here.
Most interestingly, he predicts California vintners are headed for a supply problem in the next five years as demand outstrips the number of wineries in the state.
“The demand continues to grow in this 4 to 5% range, and in 4 to 5 years that’s 20 to 25% more volume and there is just not enough vineyard land and people putting vineyard into production.”
Other challenges include consolidation among retailers and distributors, global competition and regulation issues that plague the entire alcohol beverage industry. Some other interesting quotes are as follows:
“We continue to see a huge amount of interest by the consumer in appellation and the nuance of where the wine is from... If that goes away, we just become a commodity.”
“Ingredient labeling should be limited to ‘Contains Sulfites’ and ‘May Contain Allergens.’ All other ingredients in a bottle of wine change with every bottling. If wineries are expected to change labels constantly, the cost could be prohibitive and could put some wineries out of business.”
Dr. Smiley posted a copy of the survey results on the UC Davis website. To view the presentation, click here.
posted at 3:24 PM
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