Industry Trends on the Horizon
A lot has happened in the past several months that many could not have predicted just last year. Consolidation especially seems to be one of the main recurring themes. Just recently we’ve seen mergers between distributors (Glazer’s and Judge and Dolph in Illinois, for example) and mergers with suppliers (Constellation and Fortune, V&S and Pernod and Diageo and Ketel One, to name a few).
There have also been a lot of changes in the legislative arena, particularly as states battle it out over direct-to-consumer sales and wholesalers look to spread their wings. For example, who would have predicted that Southern would enter Texas just a couple of years ago? As far as consumer trends go, we know that Americans are trading up, drinking vodka and more open to experimenting then ever before. But what’s next? We asked readers what they see as the next big trend in the wine and/or spirits industry, and here’s what they had to say:
“Organic/biodynamic/environmentally friendly products will receive more interest, and the super fresh herbal/aromatic cocktail craze will continue to grow.”
“Pernod Ricard.”
“Distributors becoming Suppliers.”
“Pisco from Peru.”
“Consolidation of players as climate change makes agricultural pursuits a little tougher. Potential shift to varietals more suited to warmer weather. Greater scarcity for cool-climate types, leading to greater price stratification.”
“Continued growth of non-major wine areas. High end Rum growth and continued growth of Bourbon.”
“If I could predict trends I'd be on a yacht in the Greek Islands rather than filling out this survey.”
“Wine will continue to succeed with big red blends, and the exposure of less popular varietals that are more consumer friendly (Petite Sirah, Tempranillo) Also look out for off the wall stuff ie.(the ever popular Pomegranate).”
“Continued innovation in packaging, flavors and premixed cocktails.”
“In my area a move away from oaky wines.”
“Fresh ingredients in cocktails with still more upside on premium liquors.”
“Higher end brands will leverage their brands in lower-tier products. Big retailers will lower prices and profit margins throughout the retail industry. Retailers outside of the big-box stores will need to develop a strong value proposition to lure and keep consumers.”
“Far east products.”
“Reemergence of imports other then Australian, continued consolidation lead to the slow disappearance of regional and specialty brands. Continue private label growth for large chains.”
“Spanish Brandies; Armagnacs; artisan brandies; more limited editions and vintages in all categories.”
“More private or custom label brands taking up shelf space/ menu space in chains.”
“Implosion of the theory that 21-25 years olds like wine...it’s just not true.”
“Innovative use of technology to better customize retail selection, better inform distribution and supply. Consumer blogging will have huge and unexpected impact.”
“The number of folks going out of biz. Not consolidation. More like abandon ship.”
Until tomorrow, Megan
“There is no cure for birth and death save to enjoy the interval.”
George Santayana
--------- Sell Day Calendar ----------
Today's Sell Day: 8
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
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.
There have also been a lot of changes in the legislative arena, particularly as states battle it out over direct-to-consumer sales and wholesalers look to spread their wings. For example, who would have predicted that Southern would enter Texas just a couple of years ago? As far as consumer trends go, we know that Americans are trading up, drinking vodka and more open to experimenting then ever before. But what’s next? We asked readers what they see as the next big trend in the wine and/or spirits industry, and here’s what they had to say:
“Organic/biodynamic/environmentally friendly products will receive more interest, and the super fresh herbal/aromatic cocktail craze will continue to grow.”
“Pernod Ricard.”
“Distributors becoming Suppliers.”
“Pisco from Peru.”
“Consolidation of players as climate change makes agricultural pursuits a little tougher. Potential shift to varietals more suited to warmer weather. Greater scarcity for cool-climate types, leading to greater price stratification.”
“Continued growth of non-major wine areas. High end Rum growth and continued growth of Bourbon.”
“If I could predict trends I'd be on a yacht in the Greek Islands rather than filling out this survey.”
“Wine will continue to succeed with big red blends, and the exposure of less popular varietals that are more consumer friendly (Petite Sirah, Tempranillo) Also look out for off the wall stuff ie.(the ever popular Pomegranate).”
“Continued innovation in packaging, flavors and premixed cocktails.”
“In my area a move away from oaky wines.”
“Fresh ingredients in cocktails with still more upside on premium liquors.”
“Higher end brands will leverage their brands in lower-tier products. Big retailers will lower prices and profit margins throughout the retail industry. Retailers outside of the big-box stores will need to develop a strong value proposition to lure and keep consumers.”
“Far east products.”
“Reemergence of imports other then Australian, continued consolidation lead to the slow disappearance of regional and specialty brands. Continue private label growth for large chains.”
“Spanish Brandies; Armagnacs; artisan brandies; more limited editions and vintages in all categories.”
“More private or custom label brands taking up shelf space/ menu space in chains.”
“Implosion of the theory that 21-25 years olds like wine...it’s just not true.”
“Innovative use of technology to better customize retail selection, better inform distribution and supply. Consumer blogging will have huge and unexpected impact.”
“The number of folks going out of biz. Not consolidation. More like abandon ship.”
Until tomorrow, Megan
“There is no cure for birth and death save to enjoy the interval.”
George Santayana
--------- Sell Day Calendar ----------
Today's Sell Day: 8
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
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 12:56 PM
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