Wineries

First Research, Inc.
October 13, 2014
10 Pages - SKU: FRRS5351844
Countries covered: United States

Wineries

Brief Excerpt from Industry Overview Chapter:

Companies in this industry make wine and brandies either from grapes that they grow or that are grown elsewhere. Major companies include Constellation Brands, E&J Gallo, and Jackson Family Wines (all based in the US), Veuve Clicquot (France), Distell Group (South Africa), Gruppo Italiano Vini (Italy), and Viña Concha y Toro (Chile).

Major wine-producing nations include Italy, France, and Spain, followed by the US, China, Argentina, and Australia, according to the Wine Institute. China has become one of the world’s top five wine producers after increasing production by more than 40 percent in recent years. In that same period, production in the traditional wine making countries fell or remained flat. Emerging markets and evolving consumer tastes could help global wine consumption rise by 5 percent by 2017, according to International Wine and Spirit Research.

There are more than 2,600 winery establishments in the US, with a combined annual revenue of more than $16 billion.

COMPETITIVE LANDSCAPE

Demand for wine is driven by the restaurant and hotel industries, the level of business entertainment spending, and consumer income. A winery's profitability depends on production volume and sales price, both of which can vary from year to year. Large companies have stronger distribution channels and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium price. The US industry is concentrated; the 50 largest companies account for more...



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