Some interesting figures have recently come out about the US wine industry. From the Wine Spectator article Smaller Brands Lead Growth in U.S. Wine consumption:
The weak global economy has slowed wine-industry growth considerably, but total wine consumption is projected to once again surpass 300 million cases by the end of the year—another all-time high in a 16-year run of annual gains. Smaller brands will continue to drive the U.S. market. The 50 largest brands nationwide, all selling at least 1 million cases, are projected to post a collective 0.2 percent decline in 2008, according to the report. Wine brands beyond the top 50 will account for less than half the industry’s volume but are once again expected to significantly outperform their much bigger counterparts. Currently, well over 7,000 wine brands are sold in the United States, but less than 300 labels sell more than 100,000 cases annually.
The last line is particularly interesting as it really demonstrates how fragmented the wine buisness is in the US. It should be noted too that the term "small" as it is used in this report represents wineries pushing 100,000 cases per year. That seems pretty big to me and I wonder what term would be applied to a company of our size that is making a mere 50 cases this year!! Some more stats:
Fifty brands sold between 500,000 and 1 million cases each last year, combining for a solid 4.3 percent increase, including such brands as Fish Eye, Menage à Trois and Santa Margherita. Another 61 brands sold between 250,000 and 500,000 cases each, led by the likes of Kim Crawford, Red Diamond and Edna Valley, and posted a combined 7.2 percent gain. But the hottest segment, comprising the 118 brands that sold between 100,000 and 250,000 cases, surged 8.2 percent last year, thanks to such brands as Acacia, Bohemian Highway and Oyster Bay.
As the economy continues to weaken we'll be keeping a close eye on industry trends. 2009 is going to be a tough year for consumer based businesses and it will be interesting to see if the "small" producers can continue to hold up.
Jeremy
