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 Bronco Wine, Constellation Brands, E&J Gallo, Jackson Family Wines, and The Wine Group (all based in the US); as well as Distell Group (South Africa), Gruppo Italiano Vini (Italy), Treasury Wine Estates (Australia), Veuve Clicquot (France), and Viña Concha y Toro (Chile).
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 than 75% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Table wine — including red and white wines and other still wines containing 14% or less alcohol by volume — makes up about 85% of volume sales in the US. Leading table wine varietals (wines named after the grape they are made from) are chardonnay, pinot noir, merlot, white zinfandel, cabernet sauvignon, pinot grigio, syrah, and sauvignon blanc. Dessert wines, including all still wines over 14% alcohol, account for about 10% of industry revenue; sparkling wines make up 5%.
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