Global Wine Spikes New Trends
Wine was a once an (even more) fragmented industry confined mainly to old world countries, such as Italy, France and Spain. In recent years, however, the industry has become increasingly global as new entrants like Australia and California have led the industry in innovation and (gasp) marketing. Companies are merging and wineries are popping up everywhere, even China. As a result, wine is projected to grow faster than any other beverage alcohol category as more people flock to the once elitist elixir – old and young consumers alike.
Global wine consumption is projected to exceed 26.2 billion liters by the year 2010, according to a new report by Global Industry Analysts, Inc. The underlying driving forces for wine consumption include: health benefits, growing disposable incomes, rising affluence and sophistication and the resulting consumer shift towards premiumization. Developing countries such as Russia, China, Australian and India are becoming increasingly “westernized,” which is proving to be a major win for the growth in wine consumption, says GIA. In addition, younger drinkers are choosing wine over anything else – it is no longer a category confined to middle-aged consumers.
GIA also expects wine companies to improve traditional and non-traditional marketing and advertising in future years. As more players enter the scene and focus on “high voltage” marketing campaigns, wine is set to make gains globally at the cost of other alcoholic beverages. Europe, the largest wine market, is expected to see consumption cross 16.3 billion liters by the year 2015. Asia-Pacific is poised to become the fastest growing region, with the potential to grow at a CAGR of 4.6% over the period 2001 to 2010.
Stiff competition continues between the new world and old world, although older world regions are still the leading global wine producers. Rivals have managed to progress through large-scale production, clever marketing strategies, and competitive pricing, says GIA.
New and improved technology is helping producers from new regions such as Australia, California, and New Zealand to produce even higher quality wine as well. The Fortified wine market is projected to grow the fastest at a CAGR of 2.98% during the period 2011 to 2015.
So while times are good, there are several problems facing producers. The increased availability of wine in supermarkets and c-stores is helping to grow household consumption and spiking a change in consumer demands. The study suggests producers reposition their business and focus on innovation, while at the same time retaining brand loyal consumers. (Sounds easier on paper). Wine producers should pay attention to what consumers are drinking, as consumers – particularly women – increasingly experiment with non-traditional varieties.
Global wine makers are also reeling under intense price pressures, triggered by rising competition and global oversupply. Growing prominence of distribution networks is also aggravating pricing scenario, making competition fiercer, according to the study. They say consolidation is the key to the present and future of the fragmented global wine industry. Many players in the industry are on the lookout for growth through mergers, acquisitions, and joint ventures.
For more details about this research report, visit
http://www.strategyr.com/Wine_Market_Report.asp
ITALIANS CLAIM BRUNELLO LABEL FOR THEMSELVES
The significance of truth in labeling laws is being heard from oversees, in addition to Napa and Sonoma. Petroni Vineyards of Sonoma has come under fire by an Italian organization for using the name Brunello di Sonoma for its red wine. The association, Consorzio di Brunello di Montalcino, through its attorneys claims the term Brunello is protected under regulations governing the naming of Italian wines. As a result, it has asked Petroni to cease using the Brunello name.
"The name Brunello refers to the grape and not the place where it is produced," said Lorenzo Petroni, founder of Petroni Vineyards and proprietor of the North Beach Restaurant. "My wine is clearly labeled as coming from Sonoma, the location of my Poggio alla Pietra vineyard. Its label has been approved by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. government agency that oversees all processes associated with winemaking and labeling."
No regulation prohibits the use of the term Brunello for United States-produced wines and at least three American wineries produce wines carrying the Brunello name, said the company in a statement.
"Wine sellers and consumers understand the difference between a wine labeled as an Italian product and one that clearly states its U.S. origins," said Phil Stefani in the press release, a Chicago restaurateur whose restaurants carry Brunellos produced in both regions. "The rules for naming U.S. wines differ from those in Europe, and our customers are accustomed to choosing U.S. wines by grape and vineyard. The Consorzio is protecting no one with this action."
RNDC PURCHASES N. GOLDRING CORP.
Republic National Distributing Company (RNDC) has purchased the N. Goldring Corporation in Pensacola, Florida. The N. Goldring Corp.’s 60 employees will join the RNDC-Pensacola operation. Bill Campion will serve as executive vice president and report to RNDC-Florida president Tom White.
RNDC already has Florida houses in Deerfield Beach, Tampa, and Jacksonville. This marks at least the fifth acquisition or agreement RNDC has struck since January.
CONGRESS CONSIDERS MANDATORY MENU LABELING
An Iowa Senator has introduced federal legislation to extend the requirements of the 1990 Nutrition Labeling and Education Act to food sold through restaurants and vending machines, according to NRN. The bill would require restaurant chains with 20 or more locations to make on-menu disclosures of the number of calories, grams of saturated fat, grams of trans fat and milligrams of sodium in all items.
Companion legislation to the Menu Education and Labeling, or MEAL, Act is pending in the U.S. House of Representatives.
WSD BRIEFS:
THE INTERNATIONAL INSTITUTE FOR ALCOHOL AWARENESS is mad at Diageo and Anheuser-Busch for promoting St. Patrick’s Day and petitioning Congress to make it a national holiday. The institute claims Diageo’s and A-B’s true motive is to encourage binge drinking, not to promote Irish heritage.
PERNOD RICARD IS ADDING Jameson Gold Reserve ($60 per 750ml bottle) and Jameson Rarest Vintage Reserve ($250) to its portfolio in the U.S. In addition, the company is launching new packaging for its Jameson 12 Year Old Special Reserve, Jameson 18 Year Old Limited Reserve, Jameson Gold Reserve and Jameson Rarest Vintage Reserve.
DON’T FORGET THAT THE COMMENT PERIOD FOR TTB RULE PROPOSAL NO. 77 AND 78 ends March 20. To get some background, click here.
Until tomorrow, Megan
“It is absurd to divide people into good and bad. People are either charming or tedious.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
Global wine consumption is projected to exceed 26.2 billion liters by the year 2010, according to a new report by Global Industry Analysts, Inc. The underlying driving forces for wine consumption include: health benefits, growing disposable incomes, rising affluence and sophistication and the resulting consumer shift towards premiumization. Developing countries such as Russia, China, Australian and India are becoming increasingly “westernized,” which is proving to be a major win for the growth in wine consumption, says GIA. In addition, younger drinkers are choosing wine over anything else – it is no longer a category confined to middle-aged consumers.
GIA also expects wine companies to improve traditional and non-traditional marketing and advertising in future years. As more players enter the scene and focus on “high voltage” marketing campaigns, wine is set to make gains globally at the cost of other alcoholic beverages. Europe, the largest wine market, is expected to see consumption cross 16.3 billion liters by the year 2015. Asia-Pacific is poised to become the fastest growing region, with the potential to grow at a CAGR of 4.6% over the period 2001 to 2010.
Stiff competition continues between the new world and old world, although older world regions are still the leading global wine producers. Rivals have managed to progress through large-scale production, clever marketing strategies, and competitive pricing, says GIA.
New and improved technology is helping producers from new regions such as Australia, California, and New Zealand to produce even higher quality wine as well. The Fortified wine market is projected to grow the fastest at a CAGR of 2.98% during the period 2011 to 2015.
So while times are good, there are several problems facing producers. The increased availability of wine in supermarkets and c-stores is helping to grow household consumption and spiking a change in consumer demands. The study suggests producers reposition their business and focus on innovation, while at the same time retaining brand loyal consumers. (Sounds easier on paper). Wine producers should pay attention to what consumers are drinking, as consumers – particularly women – increasingly experiment with non-traditional varieties.
Global wine makers are also reeling under intense price pressures, triggered by rising competition and global oversupply. Growing prominence of distribution networks is also aggravating pricing scenario, making competition fiercer, according to the study. They say consolidation is the key to the present and future of the fragmented global wine industry. Many players in the industry are on the lookout for growth through mergers, acquisitions, and joint ventures.
For more details about this research report, visit
http://www.strategyr.com/Wine_Market_Report.asp
ITALIANS CLAIM BRUNELLO LABEL FOR THEMSELVES
The significance of truth in labeling laws is being heard from oversees, in addition to Napa and Sonoma. Petroni Vineyards of Sonoma has come under fire by an Italian organization for using the name Brunello di Sonoma for its red wine. The association, Consorzio di Brunello di Montalcino, through its attorneys claims the term Brunello is protected under regulations governing the naming of Italian wines. As a result, it has asked Petroni to cease using the Brunello name.
"The name Brunello refers to the grape and not the place where it is produced," said Lorenzo Petroni, founder of Petroni Vineyards and proprietor of the North Beach Restaurant. "My wine is clearly labeled as coming from Sonoma, the location of my Poggio alla Pietra vineyard. Its label has been approved by the Alcohol and Tobacco Tax and Trade Bureau, the U.S. government agency that oversees all processes associated with winemaking and labeling."
No regulation prohibits the use of the term Brunello for United States-produced wines and at least three American wineries produce wines carrying the Brunello name, said the company in a statement.
"Wine sellers and consumers understand the difference between a wine labeled as an Italian product and one that clearly states its U.S. origins," said Phil Stefani in the press release, a Chicago restaurateur whose restaurants carry Brunellos produced in both regions. "The rules for naming U.S. wines differ from those in Europe, and our customers are accustomed to choosing U.S. wines by grape and vineyard. The Consorzio is protecting no one with this action."
RNDC PURCHASES N. GOLDRING CORP.
Republic National Distributing Company (RNDC) has purchased the N. Goldring Corporation in Pensacola, Florida. The N. Goldring Corp.’s 60 employees will join the RNDC-Pensacola operation. Bill Campion will serve as executive vice president and report to RNDC-Florida president Tom White.
RNDC already has Florida houses in Deerfield Beach, Tampa, and Jacksonville. This marks at least the fifth acquisition or agreement RNDC has struck since January.
CONGRESS CONSIDERS MANDATORY MENU LABELING
An Iowa Senator has introduced federal legislation to extend the requirements of the 1990 Nutrition Labeling and Education Act to food sold through restaurants and vending machines, according to NRN. The bill would require restaurant chains with 20 or more locations to make on-menu disclosures of the number of calories, grams of saturated fat, grams of trans fat and milligrams of sodium in all items.
Companion legislation to the Menu Education and Labeling, or MEAL, Act is pending in the U.S. House of Representatives.
WSD BRIEFS:
THE INTERNATIONAL INSTITUTE FOR ALCOHOL AWARENESS is mad at Diageo and Anheuser-Busch for promoting St. Patrick’s Day and petitioning Congress to make it a national holiday. The institute claims Diageo’s and A-B’s true motive is to encourage binge drinking, not to promote Irish heritage.
PERNOD RICARD IS ADDING Jameson Gold Reserve ($60 per 750ml bottle) and Jameson Rarest Vintage Reserve ($250) to its portfolio in the U.S. In addition, the company is launching new packaging for its Jameson 12 Year Old Special Reserve, Jameson 18 Year Old Limited Reserve, Jameson Gold Reserve and Jameson Rarest Vintage Reserve.
DON’T FORGET THAT THE COMMENT PERIOD FOR TTB RULE PROPOSAL NO. 77 AND 78 ends March 20. To get some background, click here.
Until tomorrow, Megan
“It is absurd to divide people into good and bad. People are either charming or tedious.”
Oscar Wilde
--------- Sell Day Calendar ----------
Today's Sell Day: 12
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 12:54 PM
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